Compromise Nears On Freddie Mac Oversight Bill

Law360, New York (December 5, 2006, 12:00 AM EST) -- The U.S. Treasury and certain Democratic lawmakers in the House of Representatives have reportedly agreed on a long-sought compromise plan to reform mortgage-buying giants Fannie Mae and Freddie Mac.

Though the measure is not expected to pass before Congress adjourns on Thursday, its chances may have been improved for next year.

If the proposal becomes law, a regulator would have the power to control the companies’ investment portfolios and “may, by order, require” them to shed certain investments, Reuters reported.

Previously, the U.S. Treasury looked to...
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