Now that the White House has decided to pull the plug on Fannie Mae and Freddie Mac, the next question becomes: How do you liquidate roughly $1.5 trillion of MBS and whole loans sitting on their books?

According to investors, advisors and mortgage executives who for decades have done business with the GSEs, the answer is not easy. In fact, some suggested the two should not be liquidated at all, with their assets instead being allowed to "run off" over many years.

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