OFHEO Faces Possible Budget Shortfall

The Office of Federal Housing Enterprise Oversight is facing a potential $7.5 million budget shortfall if Congress does not provide additional funding in the next continuing resolution."That will cause us some significant issues if we cannot get an increase in appropriations," OFHEO Director James Lockhart told reporters recently. OFHEO's budget is "frozen" at $60 million under the current continuing resolution that expires Feb. 15. OFHEO is working with the White House and Congress to get additional funds included in the next CR, which is expected to fund the federal government through Sept. 30 (the end of fiscal year 2007). The agency that supervises Fannie Mae and Freddie Mac was expecting a $2 million increase in fiscal 2007 to continue to expand its staff and system capabilities. OFHEO also says it needs an additional $5.5 million to cover its litigation expenses in pursuing claims against former top executives of the two government-sponsored enterprises. OFHEO can be found at http://www.ofheo.gov.