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Today, agency MBS outstanding is about $9 trillion, two-thirds of all first-lien mortgage dollars, while bank-held mortgage loans only account for $2.6 36 However, with a properly designed GSE Board in place, a public-private hybrid GSE can be a practical and reasonable vehicle to achieve publicpolicyobjectives over the long term.
On the other hand, they are required to undertake a publicpolicy mission that does not generate such a return, leading to Congress also awarding them subsidies to ideally even it all out. On the one hand, they are designed to be for-profit companies owned and capitalized by private market shareholders seeking a normal market return.
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