Wall Street thinks it has a found a solution to jumpstart the dormant market for private-label mortgage-backed securities: bring a third-party reviewer to determine who is on the hook for bad loans.

One reason investors are reluctant to buy private-label securities is that they don't trust the trustees to look out for their interests. The result is that investors are only buying mortgage bonds that are backed by Fannie Mae, Freddie Mac and the Federal Housing Administration.

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