GlobeSt.com UPDATE: Fannie and Freddie Back Regulator

WASHINGTON, DC- Fannie Mae and Freddie Mac have spoken on the record about the government’s proposal for a new and more powerful independent regulator to monitor the two government-sponsored enterprises. In testimony before the US Senate Committee on Banking, Housing, and Urban Affairs, officials from both housing mortgage lending entities professed strong support for the creation of a new regulatory body, but condemned any government plan to put limits on the GSE’s mortgage portfolio holdings, which amount to a combined $1.5 trillion.

“Let me say right here at the outset: Fannie Mae understands that we have disappointed a lot of people,” Fannie Mae vice chairman and interim CEO Daniel H. Mudd testified, referring to the company’s internal accounting mishaps. “We want to be…a company whose business is totally centered on the affordable housing mission Congress created us to serve.” He said Fannie Mae welcomes the creation of a new regulator that has “powers on par with those of bank regulators.” For additional information on the Fannie Mae situation, go to Oversight Director Reveals Fannie Mae Practices in Testimony.