CQ TODAY MIDDAY UPDATE
July 15, 2008 – 1:52 p.m.
House Delays Action on Fannie Mae Rescue as GOP Leaders Raise Questions

The Bush administration’s proposals to help faltering mortgage giants Fannie Mae and Freddie Mac hit some speed bumps Tuesday on Capitol Hill, as congressional Republicans demanded more deliberate and careful consideration.

In the face of numerous questions and skepticism among members of the president’s own party, Democrats backed away from plans to rush the plan through the House this week as part of a sweeping housing and mortgage finance package already moving through Congress.

House Majority Leader Steny H. Hoyer, D-Md., said the comprehensive package won’t be considered on the House floor until next week. Financial Services Committee Chairman Barney Frank, D-Mass., had earlier had said he hoped to bring the bill to the floor Thursday.

Hoyer told reporters that the delay, probably until July 22, is needed to help congressional leaders work with the Bush administration on incorporating the provisions aimed at helping mortgage giants Fannie Mae and Freddie Mac stave off financial problems.

Late on Sunday, the Bush administration moved forward with an ambitious plan to shore up the troubled mortgage financiers. The Treasury Department will increase an already-existing government line of credit to Fannie and Freddie and is asking Congress for the authority to buy an equity stake in the companies to keep them financially sound.

The plan also calls for including the Federal Reserve in a supervisory role over Fannie Mae and Freddie Mac. The pending housing package would also create a strong new regulator for the two companies, with the authority to set capital standards and limits on the companies’ portfolios.

Bush urged Congress “to move quickly to enact the plan in its entirety.”

Top congressional Republicans waved go-slow flags, however. House Minority Leader John A. Boehner, R-Ohio, and Minority Whip Roy Blunt, R-Mo., said, “There is little question that action is necessary, but there are also important questions that must be answered about the Treasury proposal before we act.”

Source: CQ Today Midday Update
Political Clippings compiled from BNN Frontrunner and CQ Politics.com.
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