The Office of Federal Housing Enterprise Oversight is sending its conservatorship regulation for Fannie Mae and Freddie Mac over to the Office of Management and Budget.OFHEO Director James Lockhart told MortgageWire that "[w]e've never had a regulation on the conservatorship process," adding that "this will spell out what our powers are for what we can and can't do." Before the regulation can move forward, the OMB has to approve it, which can take months. In a Thursday speech at the American Enterprise Institute, Mr. Lockhart once again advocated the passage of bank-like regulatory powers that would put OFHEO on par with the Federal Deposit Insurance Corp. and other agencies. Unlike the FDIC, OFHEO cannot file civil lawsuits against the companies/executives it regulates (Fannie and Freddie) and must instead ask the Justice Department to litigate on its behalf.

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