Senate Banking’s GSE-reform hearing this week looked closely at how reform would affect small mortgage lenders. Fair enough, but there’s a far more important question here than which industry sector wins or loses in what Congress does to Fannie and Freddie. As a forthcoming FedFin paper will demonstrate, the U.S. housing-finance system is profoundly unequal, contributing importantly to the sharp drop in U.S. economic equality in the post-2008 period. Redesigning Fannie and Freddie into something new will make equality even worse if reform efforts do not now take equality as a top-priority objective. Our new paper will show not only why GSE reform could be structured as a positive force for greater economic equality, but also how to do so on a bipartisan basis.