Fannie, Freddie regulator welcomes Senate GSE bill

WASHINGTON, May 20 (Reuters) - The regulator for housing finance companies Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) on Tuesday welcomed a Senate bill that would create a new regulator for the two government-sponsored enterprises.

"We congratulate Chairman Dodd, ranking member Shelby and members of the Senate Banking Committee for approving a bipartisan, balanced GSE regulatory reform bill that will strengthen the nation's housing finance system by enhancing oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks," Office of Federal Housing Enterprise Oversight director James Lockhart said in a statement.

"The GSE portion of the legislation should give the new regulator the tools necessary to ensure the safety and soundness of the GSEs so they fulfill their congressionally established mission of providing stability, liquidity and affordability to the housing market," he said. (Reporting by Tim Ahmann, Editing by Chizu Nomiyama)