Kerry Plans GSE Supervision Bill

Democratic presidential nominee John Kerry plans to draft legislation that would ensure strong and effective federal supervision of Fannie Mae and Freddie Mac, according to a written response to questions posed by the National Association of Home Builders.The Massachusetts senator says he is concerned about the recent governance and accounting problems at Freddie Mac. "I would work with Congress and the top experts to carefully examine these issues and develop legislation that provides for strong and effective supervision of the government sponsored enterprises within a framework that assures their safety and soundness," Sen. Kerry said. "We must also increase the focus of the GSEs on affordable housing." President Bush indicated that his administration will continue to push for legislation that gives a new GSE regulator the power to review new and existing activities, impose appropriate capital requirements, and place a troubled GSE in receivership. "My administration is committed to ensuring that the GSEs are strong and serve their public mission of promoting homeownership," the president said. Sen. Kerry's and President Bush's responses to the NAHB's questions can be found online at http://www.nbnnews.com/NBN/issues/2004-08-30/lead.html.