Two US Lawmakers Propose Tighter Rules For Fannie, Freddie

Two lawmakers have proposed additional disclosure rules for Fannie Mae (FNM) and Freddie Mac (FRE).

Reps. Adam Putnam, R-Fla., and Edward Markey, D-Mass., announced Tuesday they have introduced the Fannie Mae and Freddie Mac Full Disclosure Act.

The legislation calls for the firms to pay registration fees and disclose information required by the Securities and Exchange Commission just as other publicly traded companies and issuers of private mortgage-backed securities do.

"There are many factors that were involved in our current economic meltdown," Putnam said. "And one of them was a failure to require enough transparency and accountability from Fannie and Freddie."

Markey said, "I have always felt that Fannie Mae and Freddie Mac securities should be subject to the same public disclosure and accounting rules that cover other publicly traded companies," said Markey. "Now more than ever, investors and our financial markets need full disclosure regarding mortgage-backed securities and this bill will ensure that such disclosures are required."

-By Jeff Bater, Dow Jones Newswires; 202 862 9249; [e-mail]