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Re: GVInvestments post# 393274

Thursday, 03/02/2017 12:42:38 PM

Thursday, March 02, 2017 12:42:38 PM

Post# of 795730
for sure and just simple logic. IMO the GSEs will be put back in place just like pre 2008 and remain govt secured. Mnuchin will put in place a little stricter regulation (that really already exists) to make it appear like hes securing the tax payer against future bailouts. In reality this is the way he has to structure the "mortgage giants" if he removes the GSE label then rates would shoot up and 30 year goes away. If he winds them down he would be putting massive risk on banks to either securitize mbs's themselves or create a whole new company to do the same thing fannie and freddie currently do right now.....with months of market mayhem during that process.