Secondary Market Scheme To IncludeFHLBs

WASHINGTON - (03/17/05) -- A proposal to reform the oversightof the secondary mortgage market will include the Federal Home LoanBank System, as well as Fannie Mae and Freddie Mac, a key lawmakersaid Wednesday. Legislation to create a new regulator for Fannieand Freddie will "definitely" include the FHLBs, a growing sourceof mortgage funding for credit unions, Rep. Richard Baker told TheCredit Union Journal. Baker, chairman of the House FinancialServices Subcommittee on Government Sponsored Enterprises, said heexpects to introduce his reform bill after Congress returns from isEaster recess. More than 900 credit unions are now members of oneof the 12 regional FHLBs, which provide low-cost funding formortgage programs and have recently created a niche in thesecondary market by buying mortgages from their members.