In the years following the financial crisis, issuance of mortgage-backed securities without a government guaranty has remained lackluster, keeping private capital on the sidelines as government-supported loans continue to dominate the market.

Overview: The market for private-label RMBS is an important channel by which private entities, rather than taxpayers, invest in mortgage credit risk. While fundamental problems in this market were exposed a decade ago, solutions have been more difficult to implement than many expected. MBA supports both market-based and policy-based reforms that would make the private-label market more attractive as opposed to reforms that aim to "crowd in" private capital through regulatory measures to shrink the agency market.