In remarks yesterday, Mel Watt and Michael Stegman laid out complementary visions of how the GSEs will continue unless or until Congress cuts off the conservatorship. Both officials are continuing the death-by-a-thousand-cuts approach, requiring ramped up risk transfers, quicker action on the CSP, and more focus on the single securitization. Although the CSP and single RMBS are longer-term endeavors, risk transfers and portfolio reductions are top priority, with lots more deals in numerous new structures on the way.

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