Federal Housing Finance Agency Director Mel Watt has repeatedly said that GSE reform should be left to Congress. However, industry analysts suggest that the FHFA’s actions under Watt are helping to build a foundation for legislation. Michael Stegman, counselor to the Treasury Department for housing finance policy, said the FHFA’s actions are helping to create bipartisan consensus for provisions to be included in GSE reform. He pointed to the common securitization platform, risk-sharing transactions and capital standards for private mortgage insurers. Stegman said the FHFA’s actions are just a starter, particularly because Watt’s actions could be reversed by the next director of the FHFA. The Treasury official was among the speakers who addressed the current state of the GSEs at ...