Just as optimistic talk of GSE reform was fading, in a surprise move late this week the Trump administration revealed a proposal to end the 10-year conservatorship. The gist of it is to reduce the GSEs’ footprint in the housing market through more competition and provide an explicit U.S. guarantee on conventional mortgage-backed securities that is separate from the federal support for low- and moderate-income borrowers.The three-page proposal, billed as a reorganization plan, is part of a larger “Delivering Government Solutions for the 21st Century” publication revealed on June 21. “This proposal would reorganize the way the federal government delivers mortgage assistance and go beyond...