Senator Chuck Schumer Wants To Raise Portfolio Limits At Fannie and Freddie

U.S. Senator Chuck Schumer is vowing to introduce legislation that would raise portfolio limits at Fannie Mae (FNM) and Freddie Mac (FRE) in a move to pump more liquidity into the mortgage market, reports American Banker. Schumer, who serves on the Senate Banking Committee and is chairman of the Joint Economic Committee, is at odds with The Office of Federal Housing Enterprise Oversight's stance that the limitations are in place because the two government-sponsored enterprises have yet to file financial statements on time:

"I am disappointed that the administration and the regulators have turned down the calls to consider temporarily raising the GSEs' portfolio limits to provide market liquidity at a time when it is most needed to protect American families and the economy from further damage," Schumer said in a press statement.

"If these latest market developments do not motivate the administration to act, then I plan to introduce legislation in September that will allow us to use the critical tools we have through Fannie and Freddie to immediately address this crisis," he added.

And the debate goes on...