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Wednesday, March 30, 2016 4:08:46 AM
"By doing this, Millstein said, Treasury could then require GSEs use those reinsurance fees to build up reserve funds to protect in case of loss. "
“"The reinsurance contract between the GSE and Newco would require Newco to use its portion of guaranty fees—after operating expenses and reserves—to build capital to absorb potential future losses on its mortgage guaranty liabilities,” Millstein said. “The actual level of capital to be retained over time would be consistent with risk-based capital regulations for the mortgage guaranty businesses to be developed by the FHFA under HERA.” "
A bunch of hooey goes a long way to increase more lawyer and consulting fees. Just how much has Govt spent on lawyers to keep this charade going?
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