MBS guaranty fees charged by Fannie Mae and Freddie Mac would not have to increase by much from current levels to shift risk to the private sector, according to a new analysis by Andrew Davidson & Co. However, if policymakers looking to reduce the market share of the government-sponsored enterprises want to expand credit availability beyond the tight standards in the GSE market, g-fees will have to increase significantly. Fannie Mae reported that the average effective g-fee in its third quarter 2012 business was 41.8 basis points, and the GSEs raised their fees by 10 bps during the fourth quarter of last year. A report this week from the Bipartisan Policy Center Housing Commission proposed...