Chances Grow For Single SecondaryMortgage Market Regulator

WASHINGTON - (03/10/05) -- The chief federal regulator for theFederal Home Loan Bank System endorsed a proposal Wednesday tocombine the oversight for the 12 regional home loan banks with thatof Fannie Mae and Freddie Mac, almost assuring that Congress willmove in that direction when it takes up government sponsoredenterprise legislation next month. "As for the structure of theregulator, the (Bush) administration has spoken in its 2006 budget,and a clear consensus has emerged in support of one regulator,"Federal Housing Finance Board Chairman Ronald Rosenfeld testifiedbefore a House Financial Services panel. The Bush administration inFebruary called for a new regulator that consolidates oversight ofFannie Mae and Freddie Mac with supervision of the Federal HomeLoan Banks. The new regulator, said Rosenfeld, should have theauthority to approve new business activities and the ability toreorganize the enterprises in the event of a financial crisis. But,he said, Congress should recognize the differences between Fannieand Freddie and the home loan banks as lawmakers move forward withlegislation