Lewis S. Ranieri, the pioneer of MBS, is proposing a fix for the housing mess that he arguably had an inadvertent hand in creating.

The GSEs Fannie Mae and Freddie Mac should ease their current restrictions and allow individual investors to purchase up to 50 foreclosed homes each, Ranieri said at a banking conference on Sept 19. Fannie currently limits individual investors to 10 real-estate owned properties each, while Freddie restricts them to just four.

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