FOR IMMEDIATE RELEASE
Oct. 26, 2007
Contact: Abigail McDonough
202-225-6511                                                    

WASHINGTON – Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee, requested an analysis of the potential policy implications for H.R. 3838 and S. 2169 from the Honorable James B. Lockhart III, the Director of the Office of Federal Housing Enterprise Oversight.  The letter inquires whether the bills’ requirements for increasing the portfolio caps applicable to Fannie Mae and Freddie Mac could either negatively affect the solvency of the two entities or produce unintended consequences into the housing markets.  Mr. Lockhart serves as the safety and soundness regulator for the two housing government-sponsored enterprises.

“Because of the sensitivity of this issue to our economy and the credit standing of Fannie Mae and Freddie Mac, I find it necessary to obtain the Office of Federal Housing Enterprise Oversight’s recommendations on temporarily increasing the portfolio caps for the two government-sponsored enterprises,” stated Congressman Kanjorski.  “I am one of the remaining Members of Congress who worked to resolve the savings and loan crisis in the late 1980s and early 1990s.  I want to ensure that Congress does not enact another short-term solution that could ultimately produce far worse long-term consequences.”

The Congressman requested a response from Mr. Lockhart by the end of October.

Letter to OFHEO