Building the GSEs’ Way Out
Here, we take an in-depth look at Ed DeMarco’s assessment of two possible futures for Fannie and Freddie. He prefers the structured-securitization strategy most recently advanced by the Bipartisan Policy Center and, we understand, under active development for near-term House and Senate legislation. This way out isn’t easy, as DeMarco makes clear. However, to him – and, so far, the Hill – it’s preferred over an approach that instead replaces the GSEs with a new class of MBS guarantors DeMarco thinks too close to the old GSE hybrid.
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