A great deal of time and effort has gone into the GSE-reform legislative draft now making the rounds.  It deals impressively with an array of issues, including affordable housing despite Sen. Warren’s opposition to it.  However, we remain concerned that a valiant effort to manage many competing policy objectives has left for last an over-arching one:  can private guarantors make a buck?  If they can’t, then they won’t ride this train or, more likely will arbitrage it to considerable advantage for selected products and market segments.

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