A Treasury Department official said today that despite arguments that Fannie Mae and Freddie Mac (the GSEs) are financially flush and that, with the confirmation of Mel Watt as Director of the Federal Housing Finance Agency (FHFA) the administration can now accomplish its goals without the help of Congress, it is critical to continue the pursuit of comprehensive housing finance reform. Secretary for Housing Finance Policy Dr. Michael Stegman told a meeting of the ABS Structured Finance Industry Group many of the structural flaws of the legacy GSE-centric mortgage finance system have not been fixed. Indefinitely continuing a taxpayer-backed duopoly is neither sustainable nor sensible public policy. First, the GSEs might not be that flush. He said that recent quarterly results may "significantly overstate the true financial condition of the enterprises, especially on a go-forward basis."