Housing industry groups are split on whether new GSE reform legislation should draw a “bright line” that more clearly limits Fannie Mae’s and Freddie Mac’s activities to the secondary market for residential mortgages. At issue is a provision buried in a GSE reform bill, S. 190, which was introduced by Sen. Chuck Hagel, R-NE, in January. The relevant passage, Section 107, calls for a new regulator to scrutinize GSE operations. It also states that Fannie…