[torchthemummy]

Berman says the MCGEs would be highly regulated, kept to a certain size, and would use other tools to manage their risk, like private mortgage insurance, credit default swaps, etc

Then what is the need for a government entity? If regulation is supposedly needed to "reign in" bad private mortgage companies then, theoretically, the regulations need to be changed. But once again we're promised that a new government entity will be successful because it's...a government entity in charge.

[CutePuppy]

Then what is the need for a government entity?

That's the right question. The answer is, because they can.

It's a scam, always has been, ever since Franklin Delano Roosevelt set them up at the time of Great Depression. The PBS series Asent of Money, parts 3 and 4 describes exactly how and why it was done and why it really had no choice but to fail, i.e. specifically because it was a government program. Yet another Ponzi scheme / income or wealth transfer run by the government.