Private mortgage insurers could still participate in this framework, though the role of the government in supporting mortgage insurance and securitization would become more explicit than it is today. Finally, one might consider cooperative ownership structures, where the originators of mortgages must hold the capital in the governmentsponsored enterprises, analogous to the current structure of the Federal Home Loan Banks.
Conclusion Regardless of the organizational form, we must strive to design a housing financing system that ensures the successful funding and securitization of mortgages during times of financial stress but that does not create institutions that pose systemic risks to our financial markets and the economy.