GOP Wants Hearings on GSE Conservatorship Costs

Republicans are calling on the House Oversight and Government Reform Committee to hold hearings on ways to reduce the costs of maintaining Fannie Mae and Freddie Mac in conservatorships. The hearing should examine ways to "escape the financial burden of subsidizing" Fannie and Freddie, said Representatives Darrell Issa, R-Calif., and Jim Jordan, R-Ohio. "The administration's ongoing refusal to develop a plan to stanch taxpayers' losses at Fannie and Freddie is unacceptable," the two lawmakers said in a letter. The Obama administration was expected to lay out its plans for restructuring the mortgage giants early this year, but is now saying a blueprint will not come until 2011. In January, the Treasury Department expanded its pledge to back up Fannie's and Freddie's net worth by providing unlimited capital support over the next three years. Treasury Secretary Timothy Geithner is scheduled to testify March 23 before the House Financial Services Committee on the future of the housing finance system.