Freddie Mac CEO says Senate housing bill risks market stability

WASHINGTON, April 25 Fri Apr 25, 2014 1:36pm EDT

WASHINGTON, April 25 (Reuters) - The head of government-run mortgage financier Freddie Mac has warned the company's regulator that a U.S. Senate bill on housing finance reform could undermine the stability of the mortgage market if it became law in its current form.

Freddie Mac CEO Donald Layton said in an April 16 letter to the Federal Housing Finance Agency, which was obtained by Reuters, that lawmakers should take steps to make sure the company could fulfill its role supporting the mortgage market during any transition period to its eventual closure.

"The risk that Freddie Mac would not be able to carry out its core policy function is extremely high," Layton said. (Reporting by Margaret Chadbourn; Editing by Chizu Nomiyama)