(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today released an Issue Brief entitled, “Essential Elements of GSE Regulatory Reform.”

As Congress grapples with the task of creating a new regulatory agency to oversee the nation’s largest housing government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, CCAGW’s Issue Brief explores the justifications for a new regulatory body.  It also lists specific elements that need to be included in the authorizing legislation for this new oversight entity to be effective, including the following: 

• The new regulator must have a funding stream that is independent of the appropriations process;

• The new regulator must have the authority to require adjustments in both the minimum and risk-based capital standards for the GSEs;

• The new regulator must have the authority to approve new business activities;

• Congress must repeal the GSEs’ exemption from the nation’s financial disclosure rules;

• The GSEs’ affordable housing goals must be refined and strengthened to ensure that the GSEs focus on the needs of low and middle-income first-time homebuyers;

• Congress should cap the amount of mortgage-backed securities the GSEs can hold in portfolio; and

• Specific language should be included describing an orderly process if a GSE has to be placed in receivership.

For copies of the Issue Brief, please contact Leslie Paige at (202) 467-5300 or the web at:

http://cagw.org/site/PageServer?pagename=policy_fannie_freddie

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.