there is movement as we speak in terms of that third component of bringing at-risk capital, private capital. Both Fannie and Freddie have instituted a new security just for that purpose — to bring private capital in front of the taxpayer. Those are trading and they are in fact, bringing private capital in to take first-loss credit risk and to price that credit risk — and to do so transparently. This is a new development and it’s increasing very rapidly.
So, in fact, while it seems as though nothing is happening, much is happening. These new instruments go by the name of STACR in the case of Freddie (Structured Agency Credit Risk – STACR — bonds) and Connecticut Avenue Securities, in case of Fannie.
They are very large at this point and they’re taking a major share of the credit risk of both entities, and of the new issues of both entities. So, this is a very good development because we do need not only regulators to oversee the risk of the mortgage market, we need a transparent way for private capital to price and reveal the pricing of the risk of the credit of the mortgages that are being issued, and either implicitly or explicitly being supported by the federal government.