In this report, we assess a “pragmatic” approach to GSE reform released yesterday under the aegis of the Urban Institute by two Republicans and two Democrats long active in this arena.  The report is, like the BPC one that preceded it, sure to influence increasingly-heated debate over Fannie and Freddie’s fate, with its suggestions on affordable housing we think the most potent with regard to Senate Democratic demands in this critical arena.  Here, the plan creates a new structure, the MAC, that would be paid for by all RMBS to fund a set of public-policy purposes detailed in the paper.

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