We need comprehensive reform. But we need to look and ask, 'What did Freddie and Fannie do wrong? And how can we correct that?'

Why would it not be in the taxpayers' interest for FHFA, as conservator of Fannie and Freddie, to use that market power to try to reform the market for servicers

it clearly is in the interest of taxpayers for FHFA, as conservator of Fannie and Freddie, to minimize the continuing decline in home values

Where would the housing market have been in mid-2007 if the GSEs weren't there? In a disastrous situation.

If you are not there, nobody is there.

the principal consideration, perhaps the only consideration for FHFA as conservator of Fannie and Freddie should be reducing the losses of taxpayers

They have actually made money for the government.

But today, the government owns them. Now, the government has an opportunity to make them solvent, to get paid back every dime we lent them.

And I am extremely pleased to hear that the GSEs are using risk-based loan standards and principles and strong underwriting standards.

I think the support that we have gotten thus far has been tremendous.

Imagine if that would happen to Austin, or Laredo, or whatever your town--if one quarter of your businesses were shut down because of violence imagine what would happen to the economics.

My goal is to make sure it has a positive impact, rather than a negative impact.

If you go back to 1970, 1980, 1990, prior to 2005, do you believe that the GSEs crowded the private sector out of the marketplace?

I hope this can be a bipartisan issue, because it is definitely a national issue.

We need to talk about the reality of what is plaguing the country, and fortunately, I think that we are going to be able to get to the bottom of this.

People are tired of the fighting and bickering back forth, and I know you hear it as well as I do.

These hearings are extremely useful when we get answers to these questions understanding we only have a few minutes to ask them rather than just trying to come up with an answer that doesn't answer the question.

The GSEs are not capable of--