House OKs New Fannie, Freddie Regulator
October 27, 2005
The U.S. House of Representatives has approved a bill to create a new regulator for scandal-ridden mortgage giants Fannie Mae and Freddie Mac.
By a 331-90 vote, the chamber Wednesday created the Federal Housing Finance Agency, which would possess authority to set capital requirements, reject new business products being offered by the companies and limit their portfolio, The New York Times reported Thursday.
What we enable with the passage of this bill is the creation of an independent regulator with all the tools necessary to protect the taxpayer, said Rep. Richard H. Baker, R-La., the chief sponsor of the bill. This is a fair compromise.
The White House, however, indicates that the measure is far too weak, officials said.
Topics:
Fannie Mae, Economy of the United States, Subprime mortgage crisis, Federal takeover of Fannie Mae and Freddie Mac, Government policies and the subprime mortgage crisis, United States, Economics, Finance, Federal Housing Finance Agency, Freddie Mac, United States Department of Housing and Urban Development, Business Finance