July 28, 2005
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Statement of Secretary John W. Snow on Senate Banking Bill to Reform Housing Government-Sponsored Enterprises

The Administration has long called for legislation to create a stronger, more effective regulator with appropriate powers to improve oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. 

Chairman Shelby and the Senate Banking Committee deserve strong praise for reporting legislation that achieves real reform. Although the legislation differs in some respects from the Administration's proposals, S. 190 advances the Administration's key reform priorities. 

The Committee's action represents an important milestone toward creating a regulator with powers and authorities commensurate with that of other large, complex financial institutions. The legislation also creates significantly enhanced market discipline and capital requirements for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. The legislation strikes a proper and prudent balance in ensuring that the activities undertaken by these entities do not engender systemic risk while providing broad access to housing finance.

The Administration looks forward to continuing to work with Congress to ensure that the needed reforms are part of any final legislation.

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