House Democrats are urging the Bush administration to reconsider its GSE policies and work with Congress on legislation that would strengthen oversight of Fannie Mae and Freddie Mac and increase their affordable housing requirements.In a letter to President Bush, 76 Democrats question his administration's tactics of "attacking the GSEs publicly," because Congress has not passed GSE reforms proposed by Treasury Secretary John Snow. "If the intent is to get pro-housing members of Congress to weaken their support for the GSEs' mission, it is a mistaken strategy," the letter says. The Democrats also warn that the attacks could increase the borrowing costs of the two government-sponsored enterprises. House Democratic leader Nancy Pelosi, D-Calif., called on the administration to work with the Democrats to find an appropriate balance between sound financial oversight and more meaningful affordable housing goals. "One cannot come at the expense of the other," she said. The administration responded by saying the Department of Housing and Urban Development has proposed affordable housing goals that "push" the GSEs to "lead the industry" in providing financing for low- and moderate-income families.

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