GSE Bill Remains in Spotlight
Capitol Hill
Memo to Members: Vol 11, No. 19, May 12, 2006
On May 9, a “Dear Colleague” letter asking that the GSE bill, S. 190, be brought to the Senate floor this year was sent to Majority Leader Bill Frist (R-TN) and Senate Banking, Housing and Urban Affairs Committee Chair Richard Shelby (R-AL) (see Memo, 5/5).
Twenty Republican Senators signed the letter, eight of whom serve on the Senate Banking Committee, including Senators Rick Santorum (PA), Mel Martinez (FL), and Elizabeth Dole (NC). The Senators offered their support in bringing the Federal Housing Enterprise Regulatory Reform Act to the floor to debate the merits of the bill. They argue that it is vitally important the Congress take the necessary steps to ensure that these institutions benefit from strong and independent regulatory supervision.
The current Senate bill, unlike the House passed version H. R. 1461, does not require that Fannie Mae and Freddie Mac set aside a portion of their funds for an Affordable Housing Fund. Advocates hope that such a provision will be in the final legislation. The letter is available at: www.nlihc.org/news/0509062.pdf.
Meanwhile, House Financial Services Committee Chair Michael Oxley (R-OH) publicly urged the Senate to act in May 11 Letter to the Editor published in the Wall Street Journal. In the letter, Mr. Oxley said, “If this Congress does not send a bill to the president, it will not be because of a lack of responsible action by the House. It will be because short-sighted proponents of portfolio limitation decided that this provision is paramount.”
