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  • Many scholars, including W. Scott Frame and Lawrence J. White, conclude that Fannie and Freddie reduce mortgage interest rates by about 25 basis points.[25] Dwight Jaffe evaluates the impact of limiting the size of GSEs on mortgage interest rates and finds that the likely impact of the proposed change on the U.S. mortgage interest rate is likely to be minimal (less than 10 basis points).[26] Given
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