House Passes GSE Reform Bill

The House has passed the GSE regulatory reform bill by a 313-104 vote after reaffirming that the new regulator cannot use systemic risk as a reason for scaling back the size of Fannie Mae's and Freddie Mac's mortgage portfolios.The bill (H.R. 14270) tightens supervision of the two government-sponsored enterprises and requires Fannie and Freddie to make annual contributions to an affordable housing fund. Just before voting on final passage, the House approved by a 383-36 vote an amendment introduced by Reps. Randy Neugebauer, R-Texas, and Melissa Bean, D-Ill., that limits the GSE regulator's authority over the portfolios. The amendment was approved by a voice vote on May 17, but Fannie Mae wanted a recorded vote. "We're pleased the Bean/Neugebauer amendment was passed because it clarifies an important aspect of regulatory discretion over the GSE mortgage portfolios," Fannie Mae spokesman Brian Faith said.