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Advocacy Blog
Thursday, February 23, 2006
Rudman Rept Dropped; Critical of Fannie Mae, Not Enough for Action
A report by former Sen. Warren Rudman, released today, is highly critical of accounting practices at Fannie Mae -- especially actions by its former chief financial officer. But that might not be enough push Sen. Richard Shelby to press for action on a bill to revamp oversight at government-sponsored enterprises. However, many expect Shelby to cave to White House demands on language dealing with portfolios.
Why are we concerned about this?
In the House, the Republican Study Committee promoted language to alter the GSE bill to include a provision that would disqualify nonprofits from receiving money from a new affordable housing fund if they have engaged in voter registration and other nonpartisan voter participation activities or lobbying for certain groups within 12 months of applying for the money. They would also be barred from these activities during the grant period, even if non-federal funds were used to pay for it. More specifically, the bill would sweepingly restrict any group that affiliates with an organization that engages in such activities from applying for funds under the affordable housing fund.
It is not currently in the Senate bill, but nonprofits are watching to ensure that the provision is not included.
For more information on the provision.
Posted by Jennifer Lowe
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