The Senate Committee on Banking, Housing and Urban Affairs held more than 10 hearings last year in advance of the housing-finance reform bill introduced in March by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID. However, the bill appears to be far from perfect, as industry participants are angling to make suggestions for changes as the committee plans a markup at the end of this month. Perhaps the biggest outstanding issue with S.1217 is that even though the Johnson-Crapo bill calls for the preservation of the to-be-announced market, the capital-markets execution contemplated under the new housing-finance system might not be compatible with TBA transactions. The Johnson-Crapo version of S. 1217 doesn’t have...