The biggest challenge would be to effectively “unbundle” the offending mortgage-backed securities and then sell off the more deserving assets to willing buyers, while writing off truly bad debt. They will also need to repackage underlying properties in a way that not only produces origination fees and future cash flows but also helps to create a healthy and transparent secondary market which unfortunately no longer exists. Effective valuations will continue to be extremely difficult without such a market to provide both price stability and liquidity. The curse of Fannie Mae and Freddie Mac lives on: thanks to the government, no one knew what anything was really worth, or even what they were buying.