White House Still Eyeing GSE Portfolio Cap

The Bush administration is still considering placing a cap on the growth of Fannie Mae's and Freddie Mac's mortgage portfolios, but has not made a final decision, according to Housing Secretary Alphonso Jackson."We believe at this point in time that there should be a strong regulator for the GSEs," Secretary Jackson told a government affairs conference of America's Community Bankers in Washington. He indicated that administration officials are still debating a cap on the GSEs' portfolios and other issues related to housing government-sponsored enterprises. "Everything is on the table right now, but no final decision has been made," he said. Federal Housing Finance Board Chairman Ronald Rosenfeld, who also spoke at the ACB conference, told reporters that he already has the authority to control the size of the Federal Home Loan Banks' mortgage portfolios.