Limiting securitization purchases to NFBs will surely result in some tailoring of ABS to the business models of NFBs, an outcome that might not be identical to a securitization market tailored to the funding needs of lenders providing credit to businesses and consumers.
Also, as I will explain later, the G-M proposal would require non-trivial changes in bank regulatory policy, as well as the significant extension of discount window access to a new kind of institution. All this would be in pursuit of a mechanism for generating large amounts of liquidity.