The non-agency sector could benefit from an increase in the government-sponsored enterprises’ guarantee fees long before GSE reform is completed. Industry observers suggest that implementation of GSE reform is years away, while an increase in g-fees is much more likely in the near-term. “We may still be waiting for comprehensive GSE legislation a decade from now,” said Steven Abrahams, an analyst at Deutsche Bank Securities. “But regulators in the meantime plan to reshape the GSEs by slowly pricing them out of the market.” The average total guarantee fee charged by...