DeMarco also said the regulator will look at a number of ways to dampen the two firms' exposure to risk, including expanding the use of mortgage insurance and securities structures that allow for greater private-sector risk sharing.
They are going to raise the price that Fanny and Freddy charge for Mtg. guarantees. This allows RDN to be more competitive because F&F are currently pricing below the private MI's This is something that has been talked about/ hoped for for months. In any other market, the stock would have been up 20% today
"The White House has backed increasing the guarantee fees as part of way to lessen the government's footprint in the U.S. housing finance system and attract more private capital to the mortgage market".
The whole point of this is to let the private mortgage insurers gain market share.