There will be a higher infusion of money made for the federal regulator responsible for overseeing mortgage corporations Freddie Mac and Fannie Mae if two congressmen get their way. House Financial Services Chairman Michael G. Oxley (R-Ohio) and Ranking Minority Member Barney Frank (D-Mass.) made this request yesterday in a letter to the House Appropriations Committee asking for $59.2 million for the Office of Federal Housing Enterprise Oversight (OFHEO). This request represents an increase of nearly twenty million dollars compared to last year’s OFHEO’s funding level of $39.9 million.
The reason that these congressmen have made a request for such a large increase in funding relates to OFHEO’s examination of Fannie Mae. Reports have recently circulated that over the years Fannie Mae has used improper “cookie jar” reserve accounting so that they could use these extra cash reserves in later years when they may be needed. Congressmen Oxley believes that OFHEO needs to be supported as they try to add more transparency to Fannie Mae operations with the extra financing required for this essential service.
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