NAR President To Testify On Fannie, Freddie National Association of Realtors President Dennis Cronk will be among those appearing before Congress Thursday in hearings on a bill that would strip U.S. Treasury support from Fannie Mae and Freddie Mac. While Cronk's statement has not yet been released to the media, it is apparent from NAR position papers sent to the political parties for their upcoming conventions that the trade organization supports the government-sponsored enterprises virtually as they are. The bill before Congress is the “Housing Finance Regulatory Improvement Act” (HR 3703), proposed by Rep. Richard Baker, R-La., but the hearings Thursday are widely considered little more than a prelude to serious debate about the issue that likely will not take place until next year. The Baker bill is given little chance of success this year, given its complexity and the fact that controversial issues typically are not taken up in the months just prior to an election. Sen. Phil Gramm, R-Texas, has authored similar legislation in the Senate but he already has indicated he will not attempt hearings until the 2001 session. At the heart of the Baker bill is a provision that would remove the $2.25 billion line of credit from the U.S. Treasury that support the two GSEs. Supporters of the bill, which include FM Watch – a group of large bank companies that is growing in influence, believe that Fannie and Freddie have far exceeded their federal charter and are leveraging their government support (even though its never been used) to boost their profits, enter businesses in direct competition with private enterprise, and generally boost their stock prices for investors. While the NAR's platform position papers address none of those peripheral concerns, the organization gives the appearance of being solidly behind Fannie and Freddie. “NAR strongly opposes any attempts to fully privatize or weaken the authority and efficiency of the existing secondary mortgage market institutions, Fannie Mae and Freddie Mac,” the organization says. “Very simply, their mandate is to bring liquidity to the secondary mortgage market to ensure the availability of affordable housing finance for American families seeking the dream of homeownership. They have successfully forged the development of mortgage products and services and financing methods to meet the needs of homebuyers and the objectives of federal housing policy.” Also, issuing a statement in support of the GSEs, was Tom Hathaway, president of The Buyer's Agent national exclusive buyer brokerage franchise based in Memphis. “These two institutions have done more over the years for the availability of housing in this country than anyone else,” said Hathaway. “They set the pace for the secondary market. These institutions have for years been the guide for determining the qualifications required for getting a mortgage loan. The old saying, 'As Fannie Mae goes, so goes the industry,' should not be taken lightly.” | 
