Nuts to New
Acting at last on one of its 2019 commitments, FHFA has proposed a new construct sharply curtailing the GSEs’ ability to launch new products.  The new framework would last through and after conservatorship, bringing the GSEs more closely under the tightly-circumscribed mission outlined in the 2019 plan and thus into a limited guarantee-and-securitization role favored by many mortgage bankers and insurers.