GSE reform passes the Senate Banking Committee Thursday over objections from Sen. Elizabeth Warren.
FHFA Director Mel Watt said his agency will maintain conforming loan limits and relax underwriting requirements.
However, Democratic opposition could prevent the bill from a full Senate floor vote.
GSE conservatorship agreement mandates all profits go to Treasury, not capital coffers.
Dodd-Frank mandated tests, which include systemically catastrophic models, produce far worse results than FHFA's testing of Fannie and Freddie.
WASHINGTON — The Senate Banking Committee also delayed mark-up of the Corker-Warner GSE reform bill.
A new Senate plan would insure and regulate mortgage backed securities like credit union deposits.
The complexity of reforming the secondary mortgage market, combined with its risk and Congress' inability to compromise, are the three reasons industry lobbyists and housing experts don't expect its completion in 2014.
Complexity, risk, congressional gridlock fingered in failure to reform Freddie, Fannie, FHFA this year.
FHFA inspector general audit recommendations include eliminating automatic overrides in system.