GSE reform to help stabilize market: White House

WASHINGTON (Reuters) - The White House said on Wednesday that reforms of mortgage giants Fannie Mae and Freddie Mac under a housing rescue package making its way through Congress would "help stabilize the market."

The White House said earlier that President George W. Bush would sign the bill into law, despite objections about some of its provisions. White House spokeswoman Dana Perino said the most important part of the package is the reform of Freddie Mac and Fannie Mae.

"We do believe that this GSE reform that is finally going to be included in the legislation is something that will help stabilize the market," she told reporters. She said it "not only helps homeowners but would help the economy overall."

(Reporting by Matt Spetalnick; Editing by Tom Hals)