U.S. Senate panel stalls GSE debate; talk of deal

WASHINGTON, May 2 (Reuters) - A U.S. Senate panel that oversees Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) has postponed a reform-writing session as Democratic and Republican lawmakers try to hammer out a deal to create a new regulator for the mortgage finance companies.

Senator Christopher Dodd, chairman of the Senate Banking Committee, had planned to write the reform legislation on Tuesday but has decided to hold off as he "continues to work toward a bipartisan consensus," his spokeswoman said.

Dodd, a Connecticut Democrat, hopes that his plan will win the backing of the committee's top Republican, Senator Richard Shelby, who wants to give a new regulator broad oversight powers.

Lawmakers have tried for years to agree on a new regulator for Fannie Mae and Freddie Mac, the nation's two largest sources of mortgage finance, but the debate has received a new life in the midst of the current foreclosure crisis.

Treasury Secretary Henry Paulson has tried to facilitate a deal in personal meetings with key lawmakers and outside housing advocacy groups.

On Thursday, a key civil rights group stepped into the issue by warning that restrictive oversight could damage the companies' ability to deliver affordable housing.

"Our communities need a steady source of quality and low-cost capital from the GSEs to support multifamily housing and quality, affordable financing," the Leadership Conference on Civil Rights said in a letter to Dodd and Frank.

The group that advocates for several ethnic minorities said in its letter that Fannie Mae and Freddie Mac, known as government-sponsored enterprises, should have their current business models left largely intact.

If Dodd is able to reach an accord with Shelby, the reform measure would be more likely to clear the full Senate and would meet companion legislation that has already passed the House of Representatives.

Staff for Dodd and Shelby are working hard to tailor a compromise bill and postponing the committee's meeting will give "additional time for negotiation and discussion," said Kate Szostak, Dodd's spokeswoman. (Reporting by Patrick Rucker; Editing by Tom Hals)