FM Watch Unfazed by HI Sale

FM Watch, a group whose mission is to lobby against Fannie Mae and Freddie Mac, says it is unconcerned about the news that one of its key backers, Household International, is being sold to HSBC Holdings.HSBC's U.S. mortgage affiliate, which is based in upstate New York, is a large seller of residential loans to both Fannie and Freddie. "We don't expect it to affect us at all," said an FM Watch spokeswoman. FM Watch is supported financially by a handful of trade groups, but also by five key players in the mortgage market: Chase Manhattan Mortgage, GE Mortgage Insurance, Household, United Guaranty, and Wells Fargo Home Mortgage. The news of Household's sale is so recent (it broke Thursday morning) that it's too early to tell whether the lender's new parent will stay committed to FM Watch's cause. However, according to one news report, Household's current chairman and chief executive, William Aldinger, is expected to retain those titles at the new holding company. The sale is not expected to close until late next year.