Connie Mack: “Under the ``mark-to-market'' title that is contained in the VA-HUD appropriations conference report, a strong priority…”

“Under the ``mark-to-market'' title that is contained in the VA-HUD appropriations conference report, a strong priority to public entities is provided to act as participating administrative entities [PAE]. It is expected that qualified public entities will handle most of the work under this program. However, in instances where a qualified public entity is not available, the Secretary of Housing and Urban Development [HUD] is provided flexibility in selecting other qualified entities such as nonprofit and for-profit entities. To ensure that these entities do not use their positions as PAE's for unfair financial benefit, the bill contains an important provision that would prevent conflicts of interests by PAE's. It is my understanding that this provision was included to permit the Secretary to establish guidelines that would prevent conflicts of interest by a PAE that provides financing or credit enhancement as part of the restructuring process.”