Rep. Bob Ney, R-Ohio, chairman of the House Financial Services subcommittee on housing and community opportunity, voiced caution Tuesday about pending GSE legislation, saying that any bill must be "well thought out" and should not be damaged by "emotion."Speaking before a policy conference sponsored by the Mortgage Bankers Association, Rep. Ney said the bill has to be done the "right way" so as to avoid hurting the housing market. "The [government-sponsored enterprise] bill is not the renaming of a post office," he said. Speaking at the same meeting, Treasury Secretary John Snow repeated the Bush administration's call for limits on the portfolios of the housing GSEs, saying such caps should be left up to the regulator. Mr. Snow said that if the GSEs need liquidity "you can have liquidity by holding Treasuries. There's no risk there." Also at the meeting, Sen. John Kerry, D-Mass., predicted that a final GSE bill will carry "bright-line test" language that distinguishes between the primary and secondary mortgage markets.

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