FHFB Wants GSE Portfolio Caps

The Federal Housing Finance Board chairman also told the trade conference that the nation's housing government-sponsored enterprises should be subject to portfolio caps and that he isn't too keen about the idea of having Federal Home Loan Banks securitize mortgages.Speaking before the Independent Community Bankers Association Monday morning, Finance Board Chairman Ronald Rosenfeld said any new GSE regulator should have the ability to limit the GSEs' portfolios, but told reporters that he doesn't think there is a "magic number" on what the caps should be. He also said he has no official position on whether FHLBanks should issue mortgage-backed securities, but noted that securitization "certainly is not part" of the bank system's "historical mission."