While the Bush administration won't act in its final days to implement a real estate mortgage investment conduit program at the Government National Mortgage Association, the incoming Clinton regime will have a blueprint to accomplish the task, courtesy of the Public Securities Association.

A special PSA "working group" said it "strongly recommends that GNMA establish a Remic guarantee program to support the secondary mortgage market and expand the benefit Its programs produce for low- and moderate-income borrowers." The working group predicted a Remic program would reduce the average yield on mortgages that back Ginnie Mac securities by as much as 10 basis points. This would translate into $379 million in savings to borrowers. based on 1991 production levels. Moreover, a Remic program could produce $30 billion to $75 billion in additional federal revenues.

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