Professor Plank examines recent developments with Fannie Mae and Freddie Mac, suggesting that these developments demonstrate that the guarantee model of government sponsored entities (GSEs) could continue to provide an important method for supporting the long term financing of mortgage loans. He argues that, whatever the shape of the reform of the GSEs and other reforms of the regulatory regime for the mortgage finance market, the reforms must take into account the fact that a mortgage loan is a long term asset and that owners of mortgage loans must either have matching long term liabilities or must finance their holdings with long term financing. GSEs that provide a guarantee against default and therefore eliminate a portion of the risk of holding long term assets can play an important stabilizing function in the mortgage finance market.