Frank Unveils GSE Reform Bill

House Financial Services Committee Chairman Barney Frank, D-Mass., has introduced a GSE reform bill that follows the December compromise he worked out with Treasury Secretary Henry Paulson on regulating the size and growth of Fannie Mae's and Freddie Mac's portfolios.Reps. Richard Baker, R-La., Mel Watt, D-N.C., and Gary Miller, R-Calif., are co-sponsors of the bill, which would strengthen regulation of the government-sponsored enterprises (including the Federal Home Loan Banks), create an affordable housing fund, and raise the conforming loan limit in high-cost areas. "The provisions on safety and soundness, minimum capital requirements in particular, are quite strong, and we simply must make sure they are maintained through the legislative process," Rep. Baker said. On March 12 and March 15, the House Financial Services Committee will hold hearings on the bill. The committee is tentatively scheduled to vote on the GSE bill March 28. After the House passes the GSE bill, the Senate is expected to begin work on its own bill.