Mortgage Financing Bill Backed by Panel

The Senate Banking Committee approved a bill to strengthen oversight of Fannie Mae and Freddie Mac by creating a regulator that would put the largest U.S. mortgage finance companies in receivership should they become insolvent.

Members of the committee, in a 12-9 vote along party lines, approved a bill to give a new regulator power to alter capital standards, reject new lines of business and sell off assets should one of the government-chartered, publicly traded companies default on its debt.

Sen. Richard C. Shelby (R-Ala.), chairman of the committee, said after the vote that the bill’s lack of bipartisan support may doom its chances for a vote in the full Senate this year.