Platform or Trampoline?
Earlier this week, we provided our initial assessment of FHFA’s scorecard. Key to it is a new jointly-owned company the GSEs are shortly to set up to construct a common securitization platform that creates a new utility in this sector to supplant the GSEs at some point. Here, we take an in-depth look at this concept to identify operational considerations, focusing on ownership and corporate questions, as well as on the relationship of the new entity to the conservatorships.
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