Treasury Issues Mortgage Reform Plan

The U.S. Department of the Treasury issued a mortgage reform plan. The "Housing Reform Plan" was developed pursuant to a Presidential Memorandum with the following goals: "(i) ending the conservatorships of the Government-sponsored enterprises (each, a "GSE") upon the completion of specified reforms; (ii) facilitating competition in the housing finance market; (iii) establishing regulation of the GSEs that safeguards their safety and soundness and minimizes the risks they pose to the financial stability of the United States; and (iv) providing that the Federal Government is properly compensated for any explicit or implicit support it provides to the GSEs or the secondary housing finance market."