Rosenfeld Confirmed

The Senate has confirmed Ronald Rosenfeld to be a director of the Federal Housing Finance Board, which oversees the Federal Home Loan Bank System.The former Ginnie Mae president has served as Finance Board chairman since Dec. 15, thanks to a temporary appointment by President Bush. His confirmation by the Senate means Mr. Rosenfeld can serve on the Finance Board for a term ending Feb. 27, 2009. "The Home Loan Banks are an integral part of America's housing finance system," Mr. Rosenfeld said. "I look forward to working with my board colleagues to ensure that the banks carry out their housing finance mission in a safe and sound manner." The new chairman described himself as a "strict constructionist" during his confirmation hearing before the Senate Banking Committee several weeks ago. He ruled out allowing FHLBanks to start a mortgage-backed securities program, unless explicitly authorized by Congress. He recently said he would consider an application to sell whole mortgage loans, however. The new chairman also said he believes that the Finance Board does not have the statutory authority to approve multidistrict memberships, which would break tradition and allow a depository institution to be a member of two or more FHLBank districts.