Mr. Ed Sibley:

The Chairman asked about a few different matters and I am sure Ms Rowland will want to comment on them as well. An enormous amount of work has been done to restructure loans within the banking system. More than 100,000 loans have been restructured relative to the level currently in the system, although that is decreasing a little as they refinance. There is a track record over a period of time regarding the approach we and the banks have taken to restructuring, as well as the hard decisions borrowers have made.

On the specific points the Chairman made about our engagement on sales, we engage very heavily with the banks when they consider selling. We look at it both from a potential and a consumer protection perspective, in order to understand the risk to the consumer associated with the sale, the characteristics of the loans being sold, and what more could be done with them. In many cases, the number of loans being sold has been reduced because of that interaction. We continue to work with both banks and non-banks to make sure solutions are being put in place. As I touched on earlier, we think more could be done, and needs to be done, by both the banks and non-banks to find longer-term sustainable solutions to address the underlying issues. Borrowers also need to engage. In cases where the hardship is severe and the loan is underwater, other solutions such as mortgage to rent must be considered.