Statement of Administration Policy: S. 607 - Limit on Government National Mortgage Association (GNMA) Fees

(Senate)
(Cranston (D) California and 22 others)

The administration opposes S. 607, because its primary purpose has been accomplished administratively. The Department of Housing and Urban Development has rescinded the guaranty fee increase for Government National Mortgage Association (GNMA) mortgage-backed securities. S. 607 is still objectionable, because it would impose a virtual straitjacket on GNMA's fundamental business management ability to rapidly adapt to changing needs and market requirements. For example, implementation of changes in routine administrative fees would be delayed for at least 90 days pending congressional notification.