NAR, CAGW Testify on Proposal to Shift Regulation of GSEs from HUD

Tuesday, July 17, 2001 - 1:45am

The National Association of Realtors (NAR) and the Citizens Against Government Waste (CAGW) testified last week before the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (GSEs) on a proposal to shift most of the regulation of Fannie Mae and Freddie Mac from the Department of Housing and Urban Development to the Federal Reserve Board. The NAR’s position is that such legislation would reduce government-sponsored enterprises effectiveness as mortgage investors and give banks control of financial markets, limiting consumers’ choices and homeownership opportunities. The citizens’ coalition, on the other hand, pointed to the costs and risks to taxpayers inherent in the activities of GSEs, saying that Fannie Mae and Freddie Mac have become ascendant in the financial markets by converting congressionally conferred benefits into a highly efficient profit-delivery system. For more on CAGW’s position click here. To visit NAR click here.