Treasury claims the GSEs’ unfair advantage is because of their capital treatment. Urban Institute researchers say it’s because of the government backstop of their credit risk.

REITs have long sought access to the FHLB system — particularly to the low rates at the advance window. The recent Treasury recommendation may finally give those aspirations new hope.

The issues have been argued over so long, and the views of key players are so well known, that the plan itself couldn’t help but disappoint.

While most in the industry held back their comments, Milken Institute Director Eric Kaplan said the plan’s focus on capitalization of Fannie Mae and Freddie Mac makes it looks like the release of the GSEs is really in the cards.