We write jointly as representatives of community mortgage lenders to take issue with the recent opinion piece entitled "GSE 'Recap' Experiment is Just a Sideshowb"

The underlying premise of this piece — that there is no difference between a standby line of credit for the government-sponsored enterprises and their having actual equity capital — is totally inconsistent with what we commonly know about business and what we know about regulation. And it is dangerously misleading at a time when the net worth of Fannie Mae and Freddie Mac is in the process of dropping to zero within a year because of the so-called sweep agreement.

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