At yesterday's American Securitization Forum Sunset Seminar on the future of mortgage finance, panelists warned that if GSEs are withdrawn at this time, the housing market  will continue its downward spiral.

Chris Flanagan, head of U.S. mortgage and structured finance research at Bank of America Merrill Lynch, said that the drastic removal of government support will be "very dangerous for the housing market." This is considering too the continued decline in mortgage balances, the tightening of mortgage credit and the shift to whole loans.

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