Mortgage bankers group unveils GSE reform ideas

• The Mortgage Bankers Association envisions Fannie Mae (OTCQB:FNMA +0.2%) and Freddie Mac (OTCQB:FMCC +0.2%) as privately-owned utilities with a government-regulated rate of return.
• Instead of an implied government backstop of the two companies, there would be an explicit guarantee of the MBS sold to investors.
• The plan also sees private competitors in the space and the designation of Fannie and Freddie as SIFIs.