Housing Groups Seek Delay on GSE Bills

Washington, DC, April 4, 2011 -- The National Association of Homebuilders and the National Association of Realtors are lobbying House Republicans to delay a vote on bills that would begin scaling back Fannie Mae and Freddie Mac.

“The piecemeal approach represented by the eight bills would further damage the already fragile housing market and impede economic recovery,” the groups wrote today in a letter to Representatives Scott Garrett, the New Jersey Republican leading the legislative effort, and Maxine Waters, a California Democrat. The trade groups called instead for a “comprehensive plan” to wind down the government-sponsored enterprises.

The bills would begin scaling back the two firms in phases by cutting the value of the companies’ combined $1.5 trillion loan portfolio, raising the fees they charge to guarantee loans and reducing executive compensation.