BlackRock joined the chorus of GSE reform proposals by releasing its own last week. It aligns with the consensus view that reform should include an explicit government guarantee for mortgage-backed securities. An explicit government MBS guarantee is necessary to fully support a deep and liquid to-be-announced market, according to the asset manager. “Without this support, we believe credit would be more expensive and more difficult to obtain, which would negatively impact housing markets,” said BlackRock. Ginnie Mae MBS have an explicit guarantee, while Fannie and Freddie securities had an “implied” guarantee until they went into conservatorship. Although many proposals believe that’s the best...