If Senate lawmakers ever break a stalemate over legislative limits on GSE portfolios, the Office of Federal Housing Enterprise Oversight says it wants to be ready to provide last minute-advice on another contentious issue -- structuring an affordable housing fund -- if asked.OFHEO Director James Lockhart told an American Bar Association meeting that his agency has a small working group looking at how an affordable housing fund that is funded by Fannie Mae and Freddie Mac should be administered. If the two government-sponsored enterprises distribute the AH funds, some people are going to want "very tight controls" to make sure Fannie and Freddie can't use it for political purposes, he said. The OFHEO working group is also looking at whether the Federal Home Loan Banks or the Department of Housing and Urban Development should distribute the funds. Mr. Lockhart told reporters he is optimistic that Congress will pass a GSE regulatory reform bill this year. He also noted that Congress has not asked OFHEO for its recommendations regarding an affordable housing fund. "Until we are, we won't volunteer one," the director said.
