Office of Federal Housing Enterprise Oversight Director Armando Falcon has finally gotten around to responding to an October letter sent by Congressman Richard Baker, R-LA. That letter raised concerns about OFHEO’s monitoring and oversight of the GSEs’ interest rate risk in light of Fannie Mae’s disclosure that its duration gap had widened to a large negative 14 months at the end of August. Baker also questioned several items in Fannie’s third quarter financial statements.