Industry News

Freddie Mac supports strong regulator

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Freddie Mac supports the idea of a strong regulator for itself, Timothy Bitsberger, treasurer for the second-largest U.S. home funding company, told a conference in London Wednesday, media accounts said. Members of Congress are debating whether to create a more powerful regulator of Freddie Mac and its sibling Fannie Mae. The two mortgage giants hold a combined $1.4 trillion in their mortgage portfolios, and U.S. legislators, as well as the Bush administration, are concerned about potential problems. "It benefits us to have a strong regulator behind us," Bitsberger said, according to Reuters. Bitsberger said the difference between the portfolio of a bank, a hedge fund and Freddie Mac is that his company discloses its risk management measures every month, Reuters reported. "How can a large portfolio that is being managed properly contain more risk? I think a smaller portfolio that is not being managed properly can have more risk," Bitsberger reportedly said. Freddie Mac had a reta...