The housing market is in straits, and many members of Congress are looking to Fannie Mae and Freddie Mac to step in and help. But the two government-sponsored enterprises (GSEs) have troubles of their own. Freddie Mac announced a substantial quarterly loss in late November, following Fannie’s somewhat smaller loss announcement earlier in the month. In recent days, the share prices of both GSEs have fallen precipitously. Credit losses will reduce their capital and hence their ability to buy mortgages. This makes it highly unlikely that they could come to the rescue of the subprime market or any other markets—even if Congress forces a temporary lifting of the current cap on their portfolio holdings. These circumstances increase the urgency of providing the Office of Federal Housing Enterprise Oversight (OFHEO), the GSEs’ regulator, with sufficient authority to regulate the GSEs, and they again raise the question of why the Senate Banking Committee has been unable to address the reform legislation that passed the House months ago. At this event, OFHEO director James Lockhart will provide the latest information on the condition of the GSEs and the prospects for legislation.