McCain GSE Debate Coming to the Floor

It appears there will be full Senate debate on placing a time limit on how long Fannie Mae and Freddie Mac can remain in conservatorship while placing a $400 billion limit on the government's financial support of the two GSEs. The amendment by Sen. John McCain, R-Ariz., gives Fannie and Freddie two years to become "viable" entities and emerge from conservatorship. Over the next three years, the government sponsored enterprises would operate under new restrictions, including a minimum 5% downpayment requirement and a $417,000 loan limit before they lose their government charter. Thursday evening, the manager of the "Wall Street Reform" bill, Sen. Christopher Dodd, D-Conn., said he would allow a vote on the McCain amendment some time after the Senate resumes consideration of the bill on Tuesday (May 11). "Let me say to my friend from Arizona, I have no intention of tabling anyone's amendment," Dodd said. Currently, the Treasury Department is providing unlimited backing for the GSEs. It hopes to unveil a plan next year concerning the future of the GSEs and the housing finance system in general. "We have not taken a position at this time" on the McCain amendment, a Treasury spokeswoman told NMN.