WASHINGTON, Feb. 7 (UPI) -- The Bush administration is considering whether to seek limits on Fannie Mae, Freddie Mac and the Federal Home Loan Banks, the Wall Street Journal reports.
Officials familiar with the discussions said the possible limits would go beyond previous attempts to control the companies' growth and could reshape the nation's $8 trillion housing-finance market.
These talks were at an early stage Monday, and the Wall Street Journal said the administration may back off due to the opposition such a move would meet in Congress, where many see the so-called government-sponsored enterprises as crucial to the health of the housing market. However, limits on the mortgage holdings would be in line with suggestions from Federal Reserve Chairman Alan Greenspan.
Officials from the Treasury, White House and other federal agencies are expected within the next few months to hammer out a clear position on legislation being considered in Congress that would stiffen regulation of the GSEs. Previous efforts to pass such legislation stalled in 2003 and 2004.
