What: All Issues : Making Government Work for Everyone, Not Just the Rich or Powerful : Consumer Protection : Federal housing finance overhaul (H.R. 1427)/ Rep. Paul Kanjorski (D-Pa.) amendment to require that the boards of directors of Fannie Mae and Freddie Mac include five members appointed by the president
 Who: All Members
[POW!]
 

To find out how your Members of Congress voted on this bill, use the form on the right.

Federal housing finance overhaul (H.R. 1427)/ Rep. Paul Kanjorski (D-Pa.) amendment to require that the boards of directors of Fannie Mae and Freddie Mac include five members appointed by the president
house Roll Call 381     May 17, 2007
Y = Conservative
N = Progressive
Winning Side:
Conservative

This vote was on an amendment to a bill to create a new independent agency to oversee the workings of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System, the federally chartered organizations that support the home mortgage market. This amendment, proposed by Rep. Paul Kanjorski (D-Pa.), would have required the boards of directors of Fannie Mae and Freddie Mac to include five presidential appointees and that each board consist of a total of seven to 15 directors.

Kanjorski's amendment actually represented the status quo of sorts, as the underlying bill to which he was seeking to amend sought to remove the presidential appointees from the boards of directors of the Federal Home Loan Bank System, of which Fannie Mae and Freddie Mac are a part. Kanjorski sought to retain what he deemed as the "public" directors on those boards.

Kanjorski said the "unique nature" of Fannie Mae and Freddie Mac's federal charters, having a minority of their respective boards of directors comprised of presidential appointees is "entirely appropriate."

"Government-sponsored enterprises, by their very nature, are public/private entities, and they need to have a public voice at the highest levels of governance," Kanjorski said. .

[The Federal National Mortgage Association (known as Fannie Mae) and the Federal Home Loan Corporation (Freddie Mac) were chartered by Congress in 1934 and 1970, respectively, in order to create a secondary market for mortgages and increase liquidity. Both have been plagued by considerable accounting, financial reporting and managerial problems in recent years, and this legislation aimed to reform the agencies by creating an oversight authority.]

Rep. Tom Feeney (R-Fla.) responded to Kanjorski's support for presidentially appointed directors by pointing out the bipartisan determination by the Financial Services Committee that drafted the bill that political considerations were best removed from the boards of Fannie Mae and Freddie Mac.

"We believe that you cannot serve two masters and do a good, faithful job to both masters," Feeney said. "One of the reasons that Fannie and Freddie got in accounting problems in the first place is because of a complacent board of directors that was populated with political employees."

The opposition to Kanjorski's amendment was overwhelming. All but 20 Republicans opposed it, and only 134 Democrats supported it. Most of the House's most progressive lawmakers voted for it. Thus, by a vote of 154 to 263, the House rejected an attempt to restore the presidential appointment of a minority of the directors on the boards of Fannie Mae and Freddie Mac, and legislation to reform the federally chartered organizations that support the home mortgage market went forward without the provision.

Issue Areas:

Find your Member of
Congress' votes

Select by Name