Bu Yali N’Diaye

ARLINGTON, Va. (MNI) – U.S. Treasury Under Secretary for Domestic
Finance Mary Miller Friday indicated the administration will let the
November elections pass before it comes up with a plan for the future of
housing finance, but still expects one in the “reasonably near future.”

Asked how soon she expected a detailed proposal regarding Fannie
Mae, Freddie Mac and housing finance reform during a question and answer
session following a speech at an American Banker Regulatory Symposium
— assuming President Barack Obama wins the election — Miller said, “We
do need to get past the election.”

She added, “Once we get past that, I think there is more support
for some of the core tenants that have been discussed than perhaps is
appreciated.”

“So I hope that in the reasonable near future we can put out some
good ideas for everyone to get to work on that project,” she said.

Treasury is still working on programs that help address the legacy
problems by focusing on initiatives such as providing refinancing
opportunities or home modification opportunities, she said, noting quite
some progress on that front.

“That is forming the foundation for stabilization on the housing
market,” she commented.

“You can then turn to the future of housing market finance, and I
think the key there is going to find strong bipartisan support for a
plan that we can introduce,” Miller continued.

Asked about an update on the designation of systematically
important financial institutions, Miller pointed out that the Financial
Stability Oversight Council laid out a three-stage designation process
in the spring, adding, “the regulators are in the middle of working on
the stages.”

In other comments, Miller showed no sympathy for Federal Deposit
Insurance Corporation Director Thomas Hoenig’s view on Basel 3. He said
at the same conference earlier that the U.S. should reject Basel 3
capital standards unless they are revisited and their implementation is
delayed.

He proposed instead a simpler alternative.

“I think we need to let the regulators do their work,” she said. “I
think we need to take some time with Basel 3,” she said. “We’ve
certainly been supportive of it in the United States.”

** MNI **

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