WASHINGTON, March 29 (UPI) -- The largest U.S. provider of mortgage financing is opposing efforts in the Senate to overhaul home loan industry regulations.
Fannie Mae has come out in opposition to legislation unveiled by Senate Banking Committee Chairman Richard Shelby, R-Ala., that would create a new agency to oversee the former federal firm along with Freddie Mac and the federal home loan banks, which are now overseen by the Department of Housing and Urban Development.
The proposed agency would be given the power to appoint a conservator if the companies are unable to pay their bills, a move that some mortgage lenders and home construction interests say could negatively impact housing markets and community banks that rely on the firms to underwrite home mortgage business.
The proposal reflects growing momentum in Congress for tighter supervision of the companies after it was discovered that senior executives misstated earnings to mask their companies' volatility.
