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Government-Sponsored Enterprises: Creation of a Single Housing GSE Regulator

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Report Type Reports and Testimonies
Report Date Sept. 12, 2000
Report No. T-GGD-00-200
Subject
Summary:

This testimony discusses H.R.3703 and other issues related to the housing government-sponsored enterprises (GSE). GAO supports a single housing GSE regulator for Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System and concludes that selecting a "stand-alone" agency with a governing board would better ensure the independence and prominence of the regulator and allow it to act independently of the influence of the housing GSEs, which are large and politically influential. This testimony: (1) discusses the advantages and the disadvantages of creating a single housing GSA regulator; (2) discusses Fannie Mae, Freddie Mac, and its regulators; and (3) summarizes GAO's 1998 review of the Federal Housing Finance Board, which regulates the safety and soundness and the mission of the Federal Home Loan Bank System.

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