WASHINGTON, April 25 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)