House Bill Requires SEC Registration For Fannie, Freddie MBS
March 10 2009 - 3:14PM
Dow Jones News
Fannie Mae (FNM) and Freddie Mac (FRE) would have to disclose
information about their mortgage-backed securities to the
Securities and Exchange Commission, under bipartisan U.S. House
legislation introduced Tuesday.
The change would bring Fannie and Freddie, which own or
guarantee more than $5 trillion in U.S. mortgages, in line with
private sector issuers of MBS, which are required to pay
registration fees and supply the SEC with information on the
securities.
"Now more than ever, investors and our financial markets need
full disclosure regarding mortgage-backed securities and this bill
will ensure that such disclosures are required," Rep. Edward
Markey, D-Mass., said in a statement. Markey introduced the
legislation along with Rep. Adam Putnam, R-Fla., who sits on the
House Financial Services Committee.
Until then, Fannie and Freddie had long enjoyed broad exemption
from securities registration laws. Fannie only began to file
regular financial reports to the SEC in 2003, after it registered
its common stock with the agency. Freddie did the same just last
year. The mortgage giants currently do not register their debt with
the SEC.
-By Jeff Bater, Dow Jones Newswires; 202-862-9249;
jeff.bater@dowjones.com