House Panel Votes for Standards on Mortgage-Backed Securities

A U.S. House subcommittee advanced legislation that would require regulators to establish standards for mortgage-backed securities.

The Financial Services Committee’s Capital Markets panel voted 18-15 today for the measure.

The requirement is part of a package of bills from House Republicans aimed at dismantling Fannie Mae (FNMA) and Freddie Mac (FMCC), the mortgage-finance companies that have operated under U.S. conservatorship since they were seized in September 2008. The government-sponsored enterprises, which own or guarantee almost half of U.S. home loans, have drawn more than $170 billion from a Treasury Department lifeline.

The bills must win approval from the full Financial Services Committee before they can be considered by the House.

To contact the reporter on this story: Lorraine Woellert in Washington at lwoellert@bloomberg.net.

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.