Lawmakers Advance on Fannie, Freddie bill.

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Lawmakers Advance on Fannie, Freddie Bill

Thu October 2, 2003 10:26 PM ET

WASHINGTON (Reuters) - Key U.S. lawmakers moved toward approving legislation creating a new, stronger regulator for mortgage finance companies Fannie Mae FNM.N and Freddie Mac FRE.N , aides said on Thursday.
House Financial Services Committee Chairman Michael Oxley circulated to committee members a draft measure that would create an independent mortgage finance watchdog at the Treasury Department.

Oxley, an Ohio Republican, had consulted with senior Democrats before circulating the measure, aides said. A session to vote on the proposal is scheduled for next week.

The draft bill contains several provisions that Democrats had said were key conditions for them.

For example, the draft keeps the regulator at arm's length from Treasury, as is the case with other bank regulators.

Also, the draft retains authority for approving new mortgage finance products offered by Fannie Mae and Freddie Mac at the Department of Housing and Urban Development...>> MORE

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=3550990