Based on a recommendation by the General Accounting Office (GAO), U.S. Rep. Richard Baker (R., La.) has introduced legislation that would abolish the three agencies that regulate Fannie Mae, Freddie Mac and the Federal Home Loan Bank System and create a single new agency that would oversee all three enterprises.

The bill, introduced to the House of Representatives Feb. 29, will eliminate the Office of Federal Housing Enterprise Oversight (OFHEO) which is the safety and soundness regulator of the government-sponsored enterprises. The Federal Housing Finance Board, which regulates the FHLBank System, will also be abolished, along with the GSE mission-related area of the Department of Housing and Urban Development. In their places, the Federal Housing Oversight Board (FHOB) will be created.

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