The Community Home Lenders Association proposed a GSE reform plan last week using a utility that would let Fannie Mae and Freddie Mac build capital and would release the GSEs back into the private sector. Unlike most of the reform proposals that have been floated in the past year, the trade group for community-based mortgage lenders suggests recapitalizing and reprivatizing the GSEs with the mindset that comprehensive legislation is not needed at this time. Its plan calls for a capital restoration and uses a utility model that it suggests the Federal Housing Finance Agency develop, with the Treasury’s and Congress’ blessings. CHLA said that the FHFA is the appropriate entity to develop such a plan with...