No, cause the only real game in town now is the federal government through either:
A) Fannie
B) Freddie
C) FHA

They dont care about their return on investment, it isnt their investment (it is the taxpayers). They care about being re-elected and generating the necessary campaign donations to be re-elected. Both come from proping up the morgage market with taxpayer money, and dont come from getting a real, balanced return (when considering the crazy times we are in).

Without the GSE bailout prices would have fallen apart as new lending dried up.