One of the objectives in resolving the conservatorships of Fannie Mae and Freddie Mac should be minimizing the risk of market disruption in transitioning to the replacement system, according to industry executives. The Mortgage Bankers Association’s latest proposal for fixing the two government-sponsored enterprises is largely predicated on recent developments in the GSE world, including the first stage of the common securitization platform, extensive product standardization between the two, and the rapid acceptance of credit-risk transfer structures. Those are...