The anti-Countrywide: Hudson City Bancorp

CNN reports on Hudson City Bancorp :

Hudson weathered the recent storm by focusing exclusively on the prime mortgage market - borrowers who have strong credit histories. It is very conservative in who it offers loans to, and as a result has only written off $557,000 in loans over the last 10 years - a remarkable statistic considering the major write-downs that subprime lenders are taking now.

And it is a true thrift lender, whose only investments are mortgages.

"We call our product 'dull and boring,'" Hudson City CEO Ron Hermance told CNNMoney.com. "Our main concern is credit quality. We lend money to people who almost don't need it."

Accordingly, Hudson doesn't - and has never - issued subprime or low down-payment mortgages. And unlike many other lenders, they hold onto all mortgages they originate rather than selling them on the secondary market.

While other lenders offered exotic loan deals, sometimes for the full value of a house, Hudson says its average borrower put down 42 percent of the home's value the last two years and financed the rest.

What better proof than this that Fannie Mae isn't needed?