"Under the watchful eye of a knowledgeable mission regulator within HUD, Fannie Mae and Freddie Mac could stretch their capability to do even more to meet our nation's affordable housing needs," says NHC President Conrad Egan, explaining the rationale behind NHC's plea to congressional members. "At the same time, it is essential that Congress act responsibly to ensure the safety and soundness of these important agencies by assigning their financial regulation to the Treasury Department."

The main goal of putting the recommended supervisory bodies into place would be to shore up the nation's housing finance systems by maintaining the effectiveness and financial stability of the two lenders. Any changes would presumably be instituted through the Secondary Mortgage Market Enterprises Regulatory Improvement Act, which is scheduled for markup in the House Financial Services Committee today.