EXCERPT:
MOYNIHAN: “So, that guarantee is critical to the U.S. getting fixed-rate mortgages and having a lot of mortgage availability. And then they’ve run the things pretty responsible since the financial crisis. Down payments have stayed substantial. So the credit quality of current portfolios is pretty good. And they can’t lose that, because that was the reason — one of the reasons why we had the financial crisis was the low down payments and lots of mortgage loans with zero equity in them. And as soon as rate — prices on houses came down, the whole thing exploded, and all America was affected. So I think they’re very mindful of all that. And I think the — but they’re critical of the U.S. housing system. They always have been. They’re a great company. They’re an iconic company for the U.S., frankly, now to put them together and are running well.”