Odds Improve for GSE Reform

The odds of getting a GSE regulatory reform bill passed this year have improved slightly now that the lame-duck Congress is expected to be in session from Dec. 4 until Christmas."Time is not the enemy" of getting a bill on reforming the housing government-sponsored enterprises, said Kurt Pfotenhauer, the Mortgage Bankers Association's top lobbyist. "The question is whether they can come to an agreement on portfolios." There was speculation that the Democrats would insist on a very short lame-duck session. But now that the elections are over, congressional leaders decided to meet for a short session this week and return in December to complete unfinished business. "Everyone is just exhausted," one Washington insider said. However, the election turned the tables on Republicans (and the Bush administration) who wanted to restrict the size of Fannie Mae's and Freddie Mac's mortgage portfolios. Since Democrats won control of both chambers of Congress, Senate Republicans are going to have to come up with portfolio language that Sen. Christopher Dodd, D-Conn., can accept. Sen. Dodd is slated to become the new Senate Banking Committee chairman in January.