• Congress should create a catastrophic mortgage insurance fund to be administered by the FHFA and funded through GSE guaranty fees. The size of the fund should be determined based on actuarial standards and should be similar to the FDIC’s Deposit Insurance Fund. The fund would stand behind the explicit U.S. government guarantee of the GSE MBS.
• Congress should change the GSE corporate charters from the current government-chartered, shareholder-owned, publicly traded companies, to regulated financial utilities that are shareholder owned.