The House this week approved controversial legislation that would overhaul the government’s oversight of Fannie Mae and Freddie Mac, but lawmakers resisted efforts by conservative Republicans to include language to limit the companies’ ability to invest in MBS and other mortgage assets. H.R. 1461, the Federal Housing Finance Reform Act of 2005, was passed by a broad margin of 331-90 after a manager’s amendment narrowly overcame Democratic opposition before the final vote. The bill would…