NAHB Seeks Assurances on GSE Reform

The National Association of Home Builders wants assurances added to a GSE regulatory reform bill that would prevent a regulator from ordering Fannie Mae and Freddie Mac to make "massive" cuts in their mortgage portfolios.In a letter to key lawmakers, the NAHB said it supports efforts to reach a compromise on regulation of the portfolios maintained by the two government-sponsored enterprises. However, the association expressed concern about recent comments by GSE regulator James Lockhart. In the Feb. 23 letter, NAHB executive vice president and chief executive Jerry Howard says Mr. Lockhart's comments indicate that the compromise language could be "interpreted broadly by the new regulator to require massive portfolio cuts that would severely disrupt the mortgage markets and impede the enterprises' pursuit of their housing mission. We would like to see revision in that language to prevent such an outcome." The homebuilders also want changes to a section of the bill that creates a GSE affordable housing fund so that for-profit companies can qualify for funding on the same footing as nonprofit housing groups.