``The conservatorships of Fannie Mae and Freddie Mac were never intended to be long-term solutions. They were meant as a "time-out" as the market was eroding and a way to provide some stability while decisions were made about rebuilding the housing finance system. Today the government is involved in nine out of every ten mortgages so it is essential that the mortgage market transition to a more secure, sustainable, and competitive market.

DeMarco said that the country's regulatory infrastructure sets and enforces certain rules of the road; in part to ensure that fraud or poor business decisions don't create spillover costs for the system but also to add certainty and transparency; protect customers and promote access to credit. But the owners of private capital must make informed decisions about the allocation of resources to promote economic growth and prosperity.''

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