Shelby Plans to Renew Receivership Push

Senate Banking Committee Chairman Richard Shelby, R-Ala., says he plans to continue pressing for a bill that includes stronger receivership powers for the regulator of the housing government-sponsored enterprises.On April 1, Sen. Shelby reluctantly supported a compromise amendment by Sen. Robert Bennett, R-Utah, that would give Congress the right to veto a decision by the new regulator to place Fannie Mae or Freddie Mac in receivership. Approval of the compromise enabled Sen. Shelby to get all the Republicans and one Democrat to vote for his GSE bill, which passed by a 12-9 vote. But he said after the committee mark-up on Thursday, "I will not support such a compromise again." Treasury Secretary John Snow also expressed disappointment at the weakening of the receivership language in the Shelby bill. Chairman Shelby plans to hold committee hearings on the receivership issue and said he hopes to allay concerns from Democrats and housing groups, such as the National Association of Home Builders, that receivership will undermine investor confidence in Fannie and Freddie debt and lead to higher mortgage rates. "Sen. Shelby should be applauded for wanting to get something done," NAHB executive director Jerry Howard said. "I think if he brings in housing finance experts, he will be readily convinced that receivership is not the right way to go."