The House FinServ hearing today on GSE reform was to be a high-profile part of Chairman Frank’s plan to propose specific options.  However, transfixed by its need to head home, Members were scant and the session ended early.  If the GOP’s obstinate opposition to any sort of GSE guarantee lasts past the mid-term, market participants will be hard-pressed to craft replacement securitization channels, especially given all the pressures bearing down on private-label securitizations.

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