NAR, NAHB Issue Warning on GSE Limits

The National Association of Realtors and the National Association of Home Builders are warning Congress that they would oppose legislation that reduces the capacity of Fannie Mae and Freddie Mac to provide low-cost housing finance.In a letter to Congress, the two trade groups express their support for legislation that strengthens regulation of the housing government-sponsored enterprises to ensure that they operate in a safe and sound manner. However, they would oppose legislative efforts to privatize the GSEs, impose higher minimum capital requirements, cut their lines of credit to the U.S. Treasury, or prevent the GSEs from developing new products and programs. It also appears that they would fight efforts to limit the size of Fannie's and Freddie's mortgage portfolios. Rep. Richard Baker, R-La., is considering such a limitation as he moves toward introducing a GSE bill later this month.