WASHINGTON - House Financial Services Committee Chairman MichaelOxley (R-Ohio) and Ranking Minority Member Barney Frank (D-Mass.)wrote to the leadership of the House Appropriations Committee insupport of higher, fiscal year 2005 funding levels for the Officeof Federal Housing Enterprise Oversight, which regulates thehousing Government Sponsored Enterprises. In their letter toCommittee on Appropriations Chairman C.W. Bill Young (R-Fla.) andRanking Member David Obey (D-Wis.) and which was also signed bySubcommittee on Capital Markets, Insurance, and GovernmentSponsored Enterprises Chairman Richard Baker (R-La.) and RankingMember Paul Kanjorski (D-Pa.), Oxley and Frank called attention tothe fact that "OFHEO is engaged in a comprehensive examination ofthe government sponsored enterprises Fannie Mae and Freddie Macthat has already revealed significant irregularities in theseinstitutions. In order to ensure the safety and soundness of yoursecondary mortgage market, it is imperative that this examinationcontinue." In fiscal year 2004, OFHEO's funding level was $39.9million, and the Continuing Resolution would maintain that levelfor 2005. "Unfortunately this funding level would severelyconstrain OFHEO's ability to cotinue the special accountingexamination of Fannie Mae and the ongoing litigation involvingformer Freddie Mac officials." The two congressmen encouraged theAppropriations Committee to approve a Continuing Resolution thatfunds OFHEO at the FY 2005 level of $59.2 million the Committeepreviously approved.