The Department of the Treasury is considering raising the fees Fannie Mae and Freddie Mac charge for guaranteeing credit risk, fees that observers say could make it more expensive for investors to purchase agency residential mortgage-backed securities. If that should occur, observers say, investors may once again return to private-label RMBS. One proposal is to temporarily raise the fee for the RMBS the government-sponsored enterprises sell to investors to determine whether the private housing market can begin replacing Fannie Mae and Freddie Mac, which may be eliminated under one plan.

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