Making GSE Reform Pay

As previously noted, we expect GSE reform to advance in 2013 because it’s inextricably bound up with the federal budget. Reform will come sooner if, as seems likely, OMB decides that FHA turns into a cost to taxpayers in the FY14 budget. But, the GSEs are in play regardless and the deciding factor for what happens to them is how the reform plan scores first with OMB and, most importantly, then with CBO. Here, we take a look at a creative, detailed reform plan positioned to score well. Constructed by Millstein & Co., it’s a careful look at privatization that, we conclude, raises some significant policy issues but plays a constructive role in this important debate.

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