We have reviewed the Congressional Oversight panel (COP) report today on mortgage servicing to identify any new factors germane to the GSEs.  In general, the report draws possible conclusions based on potential worst-case scenarios, inferring from demonstrated servicing problems that these could be far worse than known and, thus, pose systemic risk.  There are no new facts supporting expectations that banks are in fact at systemic risk nor any discussion of what the servicing situation means for the GSEs.

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