May 19, 2008

THE PRESIDENT: Secretary Paulson, thanks for coming. And I just got back from the Middle East, and the Secretary came over to talk about the economy and how he sees it. And we're working through tough times, and I appreciate the leadership you're providing.

He did assure me that the refund checks are heading out, people getting that money. And that's good. It should help our economy, and more importantly, help people pay their bills. And we hope people use that money and take care of their families and shop.

I also asked him how he was doing in helping people stay in their homes. We spent time talking about the housing industry. And one of the really impressive programs has been the HOPE NOW program. Secretary Paulson has taken the lead in -- to help people refinance and help people get the financial help necessary to stay in homes. And that help comes in all different kinds of ways, but generally it just means that the lending institutions are -- help a creditworthy person stay in their home, and that's what we want to have happen.

Since the program started, 1.4 million people got mortgage relief so they can stay in their home. And in the first quarter of this year, 500,000 households, 500,000 families were helped.

And I appreciate your leadership on that, Hank. It's been -- our policy in this administration is we -- laws shouldn't bail out lenders, laws shouldn't help speculators, the government ought to be helping creditworthy people stay in their homes. And one way we can do that -- and Congress is making progress on this -- is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.

The Secretary is briefing me on the progress being made on the Hill on this very important subject. Our fellow citizens have got to know that these major players in the mortgage markets, if reformed properly by Congress, will really help stabilize the markets and make it easier for people to stay in their homes.

And we look forward to working with Congress to get a good piece of legislation to my desk that helps our fellow citizens, and helps us get through this housing issue.

So, Mr. Secretary, thank you for your briefing. I appreciate very much your leadership on the issue.

END 11:18 A.M. EDT