Five policy heavy-hitters issued a proposal this week to merge Fannie Mae and Freddie Mac into a single government corporation as a way to move beyond the conservatorships of the two government-sponsored enterprises.

Under the plan, titled "A Promising Road to GSE Reform," the new corporation — called the National Mortgage Reinsurance Corp. — would build on steps the Federal Housing Finance Agency has already taken to reform the two GSEs. Its primary function would be to continue risk-sharing initiatives with private investors and mortgage insurers.

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