Sen. Shelby vows to revamp mortgage regs

Dec. 22, 2004 at 4:39 PM

WASHINGTON, Dec. 22 (UPI) -- Sen. Richard Shelby, R-Ala., says the executive shake-up at Fannie Mae will not derail efforts to better regulate federally backed mortgage firms.

The Senate Banking Committee chairman said in a statement the fact that two top executives at the mortgage giant have left the firm does not remove the need for reform of federal oversight of Freddie Mac and Fannie Mae.

"If anything, this change in management reinforces the need for comprehensive regulatory reform," Shelby said.

The two firms have been under fire for possible irregular accounting practices. The Securities and Exchange Commission last week said Fannie Mae had violated generally accepted accounting practices and must restate its finances for the previous four years.

Shelby's comments come a day after the announcement that Fannie Mae's Chairman and CEO Franklin D. Raines was retiring, while Vice Chairman and CFO J. Timothy Howard had resigned.

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