For our money, we want safety, operational reliability, and a way that will also be sustained.

I come to the floor today to commemorate and celebrate the lives of seven police officers from my home State of Washington who lost their lives in service to their communities last year. I am proud to join today with Senator Cantwell…

I actually do not expect mortgage rates to back up as significantly as some of the extreme negative views are when the Fed steps out.

However, FHA has been plagued by longstanding management challenges, challenges that continue to raise concern about its ability to manage its outsized role in stabilizing the market.

The consequences of these risky behaviors have rippled through the national and global economies with mounting foreclosures, a crippled housing market, and a financial sector in turmoil.

How much of the $14 billion will actually cover the costs that are expected to result from additional risk and how much will be used to provide incentives to lenders or help extinguish second liens?

Banks not returning phone calls forever.

Thirty percent is too much. We all agree with that.

Together, Senator Bond and I have sounded the alarm on FHA and the solvency of the MMI Fund.

What is the default rate that you are assuming?

And the other question I wanted to ask you about is the so-called shadow inventory.

About a year ago, the administration launched their Making Home Affordable to help homeowners with foreclosure.

Do you know when you are going to hit that 2 percent level?

Fulfilling the same role as it did when it was created during the Great Depression, the FHA has stepped forward to help provide liquidity and restore stability to the housing market.

I would really appreciate that very much.

My front desk in my Seattle office would tell you that that is not working very well.

It may take more than being stern.

So we know reform is necessary and there has to be a clear plan for ending this unlimited taxpayer assistance for Fannie and Freddie.

I have a financial literacy bill that we start teaching basic financial skills back in our elementary schools.

Thank you very much.

this is a huge frustration for a lot of our constituents right now.

Well, any kind of radical change in the role of the GSEs could also mean a dramatic change for FHA and Ginnie Mae, and I am concerned about the prospect of FHA taking on significant increase in new business, given all the current…

Again, thank you so much, both of you, for your participation today.

Well, as we now work to reform Wall Street and the financial sector and prevent any future housing crisis, it is really clear that we have to address the future of the GSEs.

At home I am hearing from a lot of counselors and homeowners about the problems that they are facing in getting permanent mortgage modifications.