Starting in April, 2001, Rep. Richard Baker had a mission to reform Freddie and Fannie.

H.R. 1409 [107th]: Secondary Mortgage Market Enterprises Regulatory Improvement Act

It was killed in committee.

He tried again in the next Congress, House Bill was, H.R. 2575 [108th]: Secondary Mortgage Market Enterprises Regulatory Improvement Act. Sponsored again by Republican Rep. Richard Baker of Louisiana, and cosponsored by 22 Republicans and 1 Democrat (Rep. David Scott of Georgia). It never seemed to make it out of committee.

Then in the 109th Congress, Rep. Richard Baker tried again and introduced H.R. 1461 [109th]: Federal Housing Finance Reform Act of 2005, which passed the house (Passed 331-90, with 12 not voting) on Oct 26, 2005.

It never emerged from the Senate conference. The last action noted was; "Oct 31, 2005: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs."

The Senate Committee had hearings on Freddie and Fannie oversight in May 2001.

It looks like what eventually emerged was a six point voluntary compliance plan.

1. Publicly disclose our independent rating.
2. Maintain a high degree of liquidity.
3. Issue subordinated debt on a semiannual basis.
4. Implement a risk-based capital stress test on an interim basis.
5. Publicly disclose a forward-looking measure of credit risk every quarter.
6. Publicly disclose interest-rate risk every month.

The mood of which was best summarized at the end of that link with a letter submitted by then Chairman of Freddie Mac, Leland C. Brendsel.

Freddie Mac's strength and vitality ensure that we are able to meet the housing finance needs of the future. Our superior risk management capabilities, strong capital position and state-of-the-art information disclosure make Freddie Mac unquestionably a safe and sound financial institution. The six commitments demonstrate our determination to stay that way, so that we can finance housing for generations to come.

... and I have some quality beach front property near Galveston I'd like to sell you...

More about Leland Brendsel and Franklin Raines, in 2004...

Scandal to Cost Ex-Fannie Mae Officers Millions
NYT -- U.S. Moves to Deny Benefits to 2 Ex-Freddie Mac Officials

The foxes are watching the chicken coops. It appears that Freddie and Fannie campaign donations bought Senate silence.