Effort to Rein in Fannie, Freddie Gains Steam

Washington Post (04/23/08) P. D1; Birnbaum, Jeffrey H.; Cho, David
Treasury Secretary Henry Paulson Jr. recently called a closed-door meeting involving Senate Banking Committee Chairman Christopher Dodd, D-Conn., Sen. Richard Shelby, R-Ala., and Fannie Mae and Freddie Mac executives to discuss the need to pass legislation to increase oversight of the government-sponsored enterprises. Shelby reportedly appears more willing to compromise with Democrats on the GSE reform bill, and a vote on the matter will be held by the Senate Banking Committee on May 6. Congressional aides say GSE reform will be included in a large bill that also aims to revamp the FHA, establish a foreclosure prevention fund for states and institute a new low-income housing tax credit. However, Fannie Mae and Freddie Mac executives continue to butt heads with lawmakers over certain provisions in the legislation that deal with the government's authority over the GSEs' portfolios, capital requirements, affordable housing funding levels and new investments.