April 20 (Reuters) - The Mortgage Bankers Association on Thursday released a report on proposed changes in a possible reform of the secondary U.S. mortgage market including the role of mortgage government-sponsored enterprises Fannie Mae and Freddie Mac.
* U.S. mortgage industry group says it recommends a multiple guarantor model with at least two entities, preferably more, in a reform of secondary mortgage market.
* Reform should ensure a robust private mortgage market that can exist parallel to a government-backed market.
* Rechartered successors to Fannie Mae, Freddie Mac will likely be the first two guarantors.
* A U.S. regulator would be allowed to charter more mortgage guarantors in bid to promote competition
* Mortgage guarantors would be monoline, regulated utilities owned by private shareholders.
* A mortgage insurance fund with explicit government guarantee should be created to back eligible mortgage-backed securities. Further company coverage: (Reporting By Richard Leong)