Lawmaker: Kerry Would Bolster GSE Regulation

A Kerry administration would be able to pass legislation that improves the regulation of the housing GSEs and increases their support for affordable housing where the Bush administration has failed, according to a Democratic lawmaker.If Sen. John Kerry wins the presidency, Rep. Barney Frank, D-Mass., predicted the new administration would support legislation that requires Fannie Mae and Freddie Mac to devote 5% of their profits to affordable housing. Rep. Frank told the Mortgage Bankers Association secondary mortgage market conference that the Democrats in the House and Senate support the 5% requirement that was part of an affordable housing amendment approved by the Senate Banking Committee. He complained, however, that the Bush administration is insisting on GSE legislation with strong receivership powers that Congress cannot support.