The Federal Housing Finance Agency launched an important initiative last year to clarify the liabilities associated with representations and warranties, but, so far, putback risk appears to still weigh on the mortgage market. Mortgage servicing standards, particularly for delinquent loans, are more stringent than in the past due to settlement actions and consent orders.
As I said, the new TLTROs will reinforce these beneficial effects on banks’ profits. More than in the past, when our long-term liquidity operations were positive mainly for banks (including of course Spanish banks), the new TLTROs will benefit both banks and the real economy.