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The Senate rival to the House bill is likely to be a proposal by Sens. Bob Corker (R., Tenn.) and Mark Warner (D., Va.) that would create a new government agency, like the FDIC, to guarantee mortgage-backed securities. Its sponsors promise that private risk-sharing will eliminate the chances of a taxpayer bailout. But any proposal that keeps the government in charge of housing finance will be subject to the same infirmity: Congress will always want to extend the program’s benefits to more constituents, especially to those whoâbecause of weak credit histories and uncertain financial resourcesâare unable to qualify for conventional mortgages.
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