Buried in the IMF’s quarterly assessment of global housing is an unofficial analysis of the GSE conservatorships.  Reflecting a longstanding IMF position, the posting says that the flaws in the GSES’ conservatorships are becoming ever more obvious eight years on, going on to break new IMF ground by arguing that these problems result in part from discontinuities between U.S. regulatory and housing policy.  These on their own have transformed mortgage finance into a “shadow banking” system which creates systemic risk that could be compounded by GSE problems due to falling net revenue.

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