House Financial Services Chairman Barney Frank is defending Democrats’ oversight of struggling mortgage buyers Fannie Mae and Freddie Mac.
At a hearing Friday, the Massachusetts Democrat said the notion that the two institutions have been left “unbridled” by Democrats is a myth. Frank said Congress will eventually want to change the model of the government-sponsored enterprises. But, he added that Democrats already have imposed major reforms requested by the Bush administration.
The administration is expected to release its plan for Freddie Mac and Fannie Mae in February 2010. Republicans want to enforce new restrictions immediately, including winding them down if they aren’t financially viable in two years.
