In this report, we assess the implications of the FHFA’s proposal to combine Fannie and Freddie’s securitization operations into a single “platform.” We know that FHFA believes this consistent with the conservatorship, but we note our questions here, as well as doubts about the degree to which the concept is indeed consistent with all three of the Administration’s reform options. Looking ahead, we assess the impact the proposal would have on what’s left of any hope for private-label securitization, as well as for the broader structure of U.S. mortgage finance. We have lots more questions than answers here, but note in particular issues related to the role the federal government would have – huge in our view – if FHFA’s idea were implemented.

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