A National Association of Homebuilders task force will recommend this weekend that the politically powerful group support the creation of an independent regulator for the housing government-sponsored enterprises.Until now, the NAHB has backed Fannie Mae and Freddie Mac in their desire to keep the Office of Federal Housing Enterprise Oversight as their safety-and-soundness regulator within the Department of Housing and Urban Development. But in the wake of the recent disclosure of accounting irregularities at Fannie Mae -- and earlier at Freddie Mac -- the task force will recommend to the NAHB board that it is time to create a new, independent regulator outside of both HUD and, as the Bush administration has proposed, the Treasury Department. The task force also wants to make sure that housing has a prominent place in the oversight of the GSEs, and it is suggesting that a deputy within the new office do nothing but advocate for housing. In addition, the task force wants the GSEs to create a fund out of their profits to be used to create innovative solutions to the country's affordable housing problems. In another recommendation to be voted on at the NAHB convention in Orlando, Fla., which starts Thursday, the task force is calling on the Federal Home Loan Banks to become more involved in mortgage securitization. The recommendations are subject to change by the board, and are not policy until approved this weekend.
