Shelby Requests Federal Watchdogs Probe FHFA, Fannie, Freddie

Senate Banking Committee Chairman Richard Shelby on Monday requested the Government Accountability Office and Congressional Budget Office look into practices at the Federal Housing Finance Agency and the government-sponsored enterprises it oversees.

“Congress has a responsibility to conduct proper oversight over both the FHFA and the GSEs,” the Alabama Republican said in a statement. “It is my hope that GAO and CBO will provide the Committee with meaningful data regarding the market impact of FHFA’s decisions to ensure that Congress takes steps to protect American taxpayers from risk.”

In a letter to U.S. Comptroller General Gene Dodaro, who leads the GAO, Shelby requested a detailed assessment of how FHFA’s practices influence markets, along with a study of possible outcomes from aspects of housing finance reform.

He issued a separate request for a study into the federal government’s conservatorship of Fannie Mae and Freddie Mac in a letter to CBO Director Keith Hall.

Shelby asked for the CBO to submit its report by July, and for GAO to submit as much of its findings as possible by Nov. 1.

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