GSE Reform Debate Sidelined By Other Issues

WASHINGTON — Debate over what to do in the subprime mortgage market and how to help struggling homeowners has tempered the previous discussion in Congress over how the government-sponsored enterprises can be reformed. The Office of Federal Housing Enterprise Oversight is being pressured by a number of members of Congress to help resolve problems in subprime lending. Senate Banking Committee Chairman Chris Dodd (D-CT) has been among those pressing the OFHEO since August to lift the caps on Fannie Mae’s and Freddie Mac’s mortgage portfolios, while Sen. Charles Schumer (D-NY) has introduced legislation that would temporarily allow the portfolios to grow by 10%. Still, a representative of the OFHEO said his office remains focused on GSE reform.