Private label RMBS biggest loser from GSE reforms

While pundits have quickly dismissed any chance of legislation to wind down Fannie Mae and Freddie Mac moving forward any time soon, market participants have been quick to scour the proposal to assess how certain interests are faring in Washington. While builders and bankers may be revelling at certain aspects of the proposal, private-label RMBS issuers may be the biggest losers, according to a top securitization banker.