Washington - In a second hearing on a bill that would strengthen the oversight of the government-sponsored enterprises, the heads of Fannie Mae and Freddie Mac, and the chairman of the Council of the Federal Home Loan Banks offered some friendly advice to the Capital Markets Subcommittee of the House Banking Committee: Tread cautiously.

The executives urged the subcommittee to avoid the market volatility that occurred following the first hearing on the bill, HR 3703, back in March. GSE spreads to the 10-year Treasury widened by 14 points after that hearing, in which Treasury Undersecretary Gary Gensler and Assistant Secretary for the Department of Housing and Urban Development William Apgar provided testimony on the bill.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.