OFHEO Backs GSE Reform Bill

Fannie Mae's and Freddie Mac's primary regulator, the Office of Federal Housing Enterprise Oversight, says it is a strong supporter of the GSE regulatory reform bill that the House is expected to vote on next week."We are very supportive and excited about the legislation in the House," OFHEO acting Deputy Director Alfred Pollard told the Exchequer Club. He stressed that the regulatory provisions are very important to OFHEO, because they provide new enforcement powers and free the agency from the appropriations process. He also said merging OFHEO into a new regulatory agency for the housing government-sponsored enterprises should not be a problem. Passage of a GSE bill will provide "certainty that will benefit OFHEO and Fannie and Freddie," Mr. Pollard said. Freddie Mac is not taking a stand for or against the bill, spokesman Sharon McHale said. "It is a tough bill," she said, that "gives the new regulator substantial powers to restrict our growth and raise capital. Going any further would run serious risks of significantly harming the housing finance system." A Fannie spokesman declined to comment on the House bill.