Lost amidst the struggle for the presidency between Al and Dubya and their respective henchmen is another wrestling match, this one among Republicans for control of House positions that are of key importance to housing.

Although the GOP's majority in the lower chamber has deteriorated as a result of last month's elections, it still has control. But under the rules, Rep. Jim Leach, Iowa, has to step down as chairman of the House Banking Committee, which has jurisdiction over housing matters. Thus, his spot is up for grabs, and two members are after it.

One is Rep. Marge Roukema of New Jersey, who, as the most senior member of the panel, is next in line. But she is being challenged by Richard Baker of Louisiana. Baker is leading the movement on Capital Hill to put tighter reigns on Fannie Mae and Freddie Mac and place them under a single regulator.

Fannie and Freddie are resisting the change, and the outcome is extremely important to the housing market because they provide the funds for more than half of all home loans. They do that buy purchasing loans from local lenders and pooling them into securities that are sold to investors around the world.

Because of their supposed government connection and the safety that implies, investors are willing to take a lower yield on Fannie and Freddie's securities. Therefore, loans sold to the two government-sponsored enterprises are anywhere from 0.25 to 0.75 percent less expensive to home buyers.

Another spot that's open is the leadership of the housing subcommittee headed for the last few years by Rick Lazio, who gave up his seat in the House to run unsuccessfully for the Senate against Hilary Clinton. Robert Ney of Ohio, who has authored a bill to combat abusive lending practices, is said to be interested in the position.

Ney's industry-backed legislation isn't as strong as measures favored by consumer groups. But he, too, might have a contest with Michael Castle of Delaware.

Lazio, meanwhile, is a possible choice as secretary of the Department of Housing and Urban Development should Dubya eventually move into 1600 Pennsylvania Ave. He has been the guiding force behind the little bit of housing legislation that has made it to President Clinton's desk in recent years.

With the retirement of Ways and Means Committee Chair Bill Archer of Texas, meanwhile, the leadership for the tax writing panel also is being contested. Phil Crane of Illinois is in one corner; William Thomas of Califorinia, in the other.

On the Senate side, Phil Gramm, R-Texas, will keep his post as chairman of the Banking Committee even though the upper chamber is now evenly split 50-50 among Democrats and Republicans. That's important because he is committed to reforming consumer protection laws as they apply to the home loan process, a step that is strongly favored not by both the housing and housing finance industries but also consumer interests.

As usual, though, the two sides do not necessarily see eye-to-eye on how to get that done.

Published: December 4, 2000

Use of this article without permission is a violation of federal copyright laws.