In light of the magnitude of the penalty, FHA will need to reassure lenders that FHA remains business friendly. Lenders have other choices and will go elsewhere if FHA business is perceived as too risky.

The House vote will strengthen the resolve of senators who oppose portfolio limits, and increase pressure for a compromise in the Senate, or ultimately in conference, that is less than what the White House would like.

This is the start of the tug of war over what Rudman really means.

At the end of the day, we do not see Rudman acting as the catalyst that pushes Congress into the portfolio limitations favored by the Administration and Senator (Richard) Shelby -- especially in light of the absence of new material accounting revelations.

There has been too much effort expended to get to this point to let the bill fall apart over an issue that's not central to GSE reform.

The GOP is not about to unwind the deal that was made to move this bill forward.