Citing that a lower than requested budget appropriation would impede its ability to regulate Fannie Mae and Freddie Mac, Armando Falcon, director of the Office of Federal Housing Enterprise Oversight, wrote a letter to the House Appropriations Committee to appeal its decision.

OFHEO had originally requested $26.8 million for its fiscal 2001 operating budget, but was allocated $22 million. "The $4,770,000 shortfall will impede our efforts to examine the enterprises [Fannie Mae and Freddie Mac] with adequate depth, maintain a flexible and current risk-based capital regulation, and update our technology which enables us to do our job well with a small and efficient staff," Falcon said in his letter.

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