GARY G. MILLER: “But when we proceed with caution, such standards can actually be detrimental to our economy if not properly applied.”

While a hybrid public-private model for Freddie and Fannie was fundamentally flawed, our focus should be a viable secondary mortgage market with sound underwriting principles.

No borrower with common sense would use FHA over private sector mortgage insurance, because of cost alone, if it were available.

There is no question that robust capital standards, when properly applied, will help protect our economy.

I have always had a problem with the way they were fundamentally flawed. You had a hybrid situation where the private sector made all the profits, and the taxpayers took all the risk, which was problematic from the beginning.