Article: 'New' Secondary Looks Old As It Recalls Thrift/GSE Tie.(News)

Byline: Brian Collins

WASHINGTON-The Mortgage Bankers Association has seen the future of the secondary market and it looks a little bit like the past.

The trade group's just-released working paper for overhauling the secondary mortgage market assumes that Fannie Mae and Freddie Mac will no longer exist in the future but also calls for one of their replacement GSEs (called mortgage credit-guarantor entities or MCGEs) to exist in a cooperative-like structure with residential lenders as shareholders. Until 1989, ownership of Freddie Mac was limited to savings and loan associations under a co-op structure -with the nation's S&L regulator actually serving as ...

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