WASHINGTON, April 2 (UPI) -- A Senate panel approved a bill strengthening oversight of the federal home loan banking system and mortgage underwriters Fannie Mae and Freddie Mac.
The measure was approved along party lines by the Senate Banking Committee Thursday is a response to problems of accounting irregularities and mismanagement by the mortgage giants.
Congress Daily reported Friday while the measure originally had strong bipartisan support, the White House worked up a compromise to ensure Senate passage.
The bill would establish a new regulatory agency to oversee the industry with the power to put the lending companies into receivership if they became financially distressed.
Democrats argue the move is simply a means to put government-sponsored enterprises into the hands of private lenders.
The bill is now expected to have little chance of passage.
