Question-and-Answer Session
Operator
Thank you. (operator instructions) And now I’d like to open a line to the first question: Mr. Mike Grasher from Piper Joeffrey.
Mike Grasher - Piper Joeffrey
Good afternoon, gentlemen. I wonder, Don, if you could update us just with regard to your conversations: how they’re going, what discussions are like with regard to the rating agencies?
Donald P. Lofe Jr.
Sure, Mike. As you know, we’ve had ongoing conversations with the agencies that we’ve talked before and a moving sense of action several weeks to go. SNT will be conducting -as we understand- an industry committee meeting in the next couple of weeks and we continue to keep them advised of our projects in progress unrelated to the various matters that we’ve discussed, and so it’s an ongoing discussion and at this point in time, we presented our results to them and also, as they say that they’ve updated our capital initiatives progress. We also have had conversations too with the DBRS group related to the Canadian operations.
Mike Grasher - Piper Joeffrey
Can you elaborate on discussions with Fanny and Freddy; the relationship there?
David Catco
Hi, this is David Catco.
Donald P. Lofe Jr.
Hi, David.
David Catco
How are you. We have the same kind of relationship as you would expect with Fanny and Freddy in terms of updating them on a regular basis. As they’ve discussed publicly, we have submitted remediation plans; those plans that have been accepted by both Fanny Mae and Freddy Mac but it’s an ongoing dialogue, as we do it with the rating embassy
Mike Grasher - Piper Joeffrey
Okay, and is there any sort of time horizon where you need to occasionally update them on those plans and how they’re progressing or have they put any sort of end date or do they have a date in mind where you need to come up with X amount of capital by such a date, or are they comfortable with where you are?
Donald P. Lofe Jr.
First of all, Mike, there’s no end date. However, there are milestones and those milestones are things that we’ve shared with both the rating agencies and the GSE that’s really very consistent with our capital plan as Steve and Dan have described on calls. I should point out that we’re very proactive with Fanny Mae and Freddy Mac. We started a dialogue with them in the fall of 2007 and our suggestion, so that there were no surprises. At this point, they put no constraints on our business and when we agreed, we remained fully eligible.
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