Panel OKs Clarification of GSE Regulator Powers

Concerned about "overreaching by the government," the House Financial Services Committee on Wednesday agreed by a voice vote to clarify the GSE regulator's powers to limit the size and growth of Fannie Mae and Freddie Mac portfolios.The amendment by committee chairman Barney Frank, D-Mass., and Rep. Gary Miller, R-Calif., prevents the regulator from considering "systemic risk" or other factors in regulating the portfolios without considering the housing mission of the GSEs. Rep Frank acknowledged that the clarification was sought by the National Association of Home Builders, saying Bush administration officials don't favor the change but it is not considered to be a deal breaker. Rep. Frank said he will work with the Treasury Department to further refine this language before the bill goes to the floor for a vote. As MortgageWire went to press, the committee was continuing to mark up the bill (H.R. 1427).