The Mortgage Bankers Association unveiled a new housing finance reform plan on Tuesday designed to kick-start congressional discussions over what to do with the government-sponsored enterprises Fannie Mae and Freddie Mac.

The thrust of the plan would create a system with multiple privately owned utilities that act as “guarantors” for mortgages. Those firms could in turn buy an explicit federal guarantee from a proposed government insurance fund for eligible securities that they would issue. Under the plan, the securities would be federally guaranteed, but the companies would not be.

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