OFHEO Questions Funding Restrictions

The extra funds the Senate recently approved for the Office of Federal Housing Enterprise Oversight came with restrictions that might hamper its supervision of Fannie Mae and Freddie Mac, according to OFHEO."OFHEO is concerned about limitations on its discretion about how best to utilize the funds, and we're working with Congress to address these concerns," OFHEO spokeswoman Corinne Russell said. The Senate VA-HUD appropriation bill provides $7.5 million in additional funding for OFHEO, which the Bush administration requested to cover the costs of the agency's investigations into Fannie's and Freddie's accounting problems. However, Senate appropriators included language that earmarks 60% of OFHEO's total budget for licensed audit personnel and audit support. "The restriction serves no purpose and it could end up harming our ability to meet our regulatory responsibilities," Ms. Russell said. House and Senate appropriators are working on a final version of the VA-HUD appropriations bill.