Waters: The discussion continues about Fannie and Freddie. There are those who say let’s keep the status quo. And, of course, there are those who say that there have to be some reforms in Fannie and Freddie.
Of course, Fannie and Freddie look pretty good. Not only have they been performing well, but they have paid back all of the money to the Treasury and they continue to earn money. So that makes them look very, very good.
I think the housing market needs to be serviced and that Fannie and Freddie appear to be able to do that.
What you need in order to expand homeownership is secondary markets. You really do need, No. 1, lenders who are prepared to now follow the Dodd-Frank rules and to have qualified mortgages for people who demonstrate the ability to repay. For those who are initiating those loans, if they need to have support in the secondary markets for those loans, they need to have a place to go. Fannie and Freddie have been that place. So that’s what we need. We need support by our government to ensure that average working middle-class people can afford homes.
I love community banks being in this business. I hope community banks expand their mortgage possibilities. I have nothing against anybody who wants to play and play fairly. But, of course, it wasn’t the small banks that created the subprime meltdown and the crisis. It was some of our biggest banks.
She sounds pretty good to me.
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