We have reviewed the CCAR scenarios released last night by the Federal Reserve for their impact on U.S. housing finance and GSE reform.  As before, CCAR will continue to be the biggest banks’ binding capital constraint.  And, as before, the biggest banks will all comply, but continue to change their business model to do so.  But now, CCAR is even tougher than ever, meaning that its long-term, adverse impact on big-bank mortgage activities is even more compelling.

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