Odds Favor Tough GSE Law.

Washington -- The accounting scandal at Fannie Mae has upped the odds that Congress will pass a strong GSE regulatory reform bill, but there are concerns among some housing groups that the Bush administration might try to push for an even tougher bill.

Last year, the administration wanted a bill that would empower a new regulator to set higher capital requirements, veto new products and, if necessary, place Fannie Mae or Freddie Mac in receivership.

This year, administration officials are being very tight-lipped about their agenda for the government-sponsored enterprises. But sources indicated in early December that administration officials were mulling the idea of cutting the GSEs' lines of credit to Treasury.

Now the buzz is that the administration is considering ways to contain the growth of Fannie and Freddie's mortgage portfolios and their issuance of debt, which has been advocated by Federal Reserve Board chairman Alan Greenspan.

This kind of talk raises concerns about federal support for GSEs and their housing mission, according to Howard Glaser, general counsel for the National Alliance of Independent Mortgage Bankers.

"Mission issues remain very important to a large number of members of Congress and the ...