Frank Urges Senate to Take Up GSE Reform

House Financial Services Committee Chairman Barney Frank, D-Mass., is urging the Senate to begin working on a government-sponsored enterprise bill so the House and Senate can go into a conference and work out the most controversial issues."I am ready to be flexible," Rep. Frank told reporters. He noted that the House GSE bill provides an appropriate regulatory framework for Fannie Mae and Freddie Mac. With Treasury Secretary Henry Paulson in the conference room, "we could get this worked out," Rep. Frank said, and it would open the door for the GSEs to provide more liquidity for the mortgage market. Rep. Frank also said he expected the House to pass the Federal Housing Administration reform bill on Tuesday, and that his only disagreement with the Department of Housing and Urban Development's risk-based premium proposal is over premium rebates. If lower-income borrowers are charged higher premiums and make their payments for five years, they should get a refund, Rep. Frank said. The Bush administration opposes rebates.