With Secretary Mnuchin and Sen. Crapo earlier this week confirming that GSE reform is among the top priorities on their to-do list, we thought it would be helpful to clients to review the bidding.  To do so, we assess what has changed (other of course than the total U.S. political landscape) since the Johnson-Crapo effort and which options are on the table now.  Then, we turn to the outlook for action on these options, at least so far as Senate Banking is concerned.  One step at a time, but we also take note of Hensarling’s optimistic comments yesterday about GSE action in this Congress.  Given that it’s his last Congress with the FinServ chairmanship, he may well try hard not only on financial reform, but also housing finance.

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