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What should be done to “reform” Fannie Mae’s and Freddie Mac’s position in the mortgage market?

Wind the two GSEs down as quickly as possible while setting up some new government guarantee program for conservatively underwritten conventional mortgages.
Let the two GSEs continue to funnel money to the Treasury while developing a plan to take them out of conservatorship as private companies.
Do nothing since the housing market is too dependent on the two GSEs and Congress is unlikely to agree on a major change in the status quo anytime soon.

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