With a tougher Senate version of the GSE bill expected this month, the likelihood of legislation passing this year has dimmed considerably, said analysts.

Andrew Parmentier, senior policy analyst at Friedman, Billings, Ramsey, said that to the degree that Sen. Richard Shelby, (R., Ala.), tentatively set to introduce the Senate version of the bill this month, includes more rigorous standards on GSE portfolio limits and asset control, it would be more difficult to find Democratic support and to have a bill that would come to the floor with bipartisan support. "The art of compromise is going to be needed to see a bill passed later this year or early next year," Parmentier said, adding that the House's version of the bill, even with its shortcomings, is still better than the status quo.

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