Stability and Risk in Conservatorship

This chapter explores the ongoing impact of PSPAs after the conservatorship period, particularly how they affect risk management akin to bank standards. It highlights the role of GSEs in providing stability to the mortgage market and discusses the complexities of the credit risk transfer market and the need for a balanced regulatory framework post-conservatorship. The chapter emphasizes the importance of maintaining investor security and controlling excessive risk-taking to ensure market stability and housing access.