fhfa -- no, fha and va, veterans in green and others mainly private sector in blue. from 1997 through 2003, fannie mae and freddie share, that top line up there, gradually grew to almost 55%. then it fell very rapidly from 2004 to 2006, as the private market predominated. and because of their accounting problems, and our resulting extra capital charge of 30% and our capping their portfolios, they felt to less than 35%. then you can see as the market started to freeze up in 2007, their market share took off and was 73% of all new mortgages is originated last you. and also the same% in the first quarter. despite the gyrations in market shares over the years, their business in that gold part has actually maintained a pretty stable over the last five years. on the other hand, fha and va has grown very rapidly in size and market share to over 22%. over the long term, this hiked gse and government share is unhealthy. because of mortgage assets were considered very safe, the 1992 law that established our predecessor agency required the agency to deem the gse's adequately ca

fhfa continues to classify fannie mae and freddie mac as critical supervisory concerns.e significant risk they would be unable to fulfill their missions we place them into conservatorship last september. since then, the treasury department has purchased $86 billion in their senior preferred stock. >> enterprises short-term financial outlook remains for. which will result in additional requests for preferred stock investment from the treasury department. however, both enterprises have stress tests their capital shortfalls and expect treasury commitment to fund up to $200 billion in each-- and capital for each of them to be sufficient. the senior preferred stock purchase agreements have given investors the confidence there is an effective guarantee of gses obligations. in addition the combined financial support of the treasury department and the federal reserve of over three-quarters of a trillion dollars to date for housing gse debt heaven sure they remain liquid. because of this support both enterprises have been able to maintain a critically important presence in the se

. >> we've got the fhfa home price index. i'm going to confuse you because after the good news from case-shiller. home prices fell 0.7% in the second quarter of 2009 from the first quarter of 2009. they're down 6.1% year over year. the good news is that they're falling less steeply than they have been but quarter to quarter, you're still seeing that decline. now to understand why these indexes are different, you have to know that the fhfa does only fannie and freddie loans. that is that's how they track home prices is purchases of homes with fannie and freddie conforming loans. the s&p case-shiller measure the top 10 and 20 market composite index in the 10 largest and 20 largest cities in america but that's any home sale not just fannie and freddie. so these numbers are always a little bit more conservative on the fhfa number, but they are still seeing prices decline quarter over quarter as the case shhill is er saw increase for t first time quarter over quarter, again, you're measuring different things but the important thin

. >> and of course, made the transition to fhfa as well in the whole process.hanks very much. >>> the show is called "power lunch" we'll leave with empty calories, jon and kate, the perfect bon-bon if you will. gt >>> the empty calories are the best kind. jon and indicakate returning to 61% drop in viewership since the previous episode on june 22nd that had the record-breaking 10 million viewers when they announced they were splitting. >> when you turn in $4 million on tlc channel. >> darn good. 51% of 12 million. >> lots of cable ascribers for 12 million. >> some of the networks are 4 million viewers. for the young people, cable is different than networks broadcasts. >> people who don't know. >> that's it for "power lunch" we'll see you tomorrow. "street signs" begins in 30 seconds. >>> reports say the government's chief regulator james lockhart will resign to return to private life. >> myron gets six years, two were convicted of defrauding investors. >>> the postal service expects to lose $7 billion by the time the fiscal year ends. i'm courtney reagan. >>>

i have been especially pleased to see how well fhfa have tackled the challenges.i have no doubt they will continue to do so. the obligations -- and the federal home loan banks, is $6.6 trillion which is close to the public debt of the united states. a year ago i was able to show this slide and they were much bigger than the public debt of the united states there has been a little change since then. the enterprise zone or guaranteeing 56 this and of the single-family mortgages in the u.s.. turning to the accomplishments, there is a long list, and we have done a lot in a short time. we combined the personnel and financial systems of the two separate organizations quickly. we are working effectively with the enterprises as a conservative even as we continue to oversee them as a regulator. the board of directors worked quickly to refill the ceo positions at fannie mae and freddie mac. we have been working with the 12 federal home loan banks to develop an accounting platform for the private-label mortgage backed securities. fhfa has been on the leading edge of executiv

. >>> still to come, fhfa director james lockhath will be joining us in studio.l talk about housing, why he decided to leave his post. we'll talk about the state of fannie and freddie. >>> later, real estate developer richard la photographic will be here. >>> as we head to break, let's take a look at oil prices. up 25 cents. $70.77. "squawk box" will be right back. >>> welcome back to "squawk box." let's take a look at the market. we've been watching the futures. you'll see the dow futures are a little better than fair value. right now you're talking about up 15 points above fair value. watching this through the morning as we continue to get earnings. abercrombie & fitch out with a bigger loss for the quarter. wale hear from jcpenney later this morning. >>> still watching the economic agenda, we'll get the july consumer price index about an hour from now. at 9:15 eastern time the federal reserve is out with the latest read on industrial production and factory capacity utilitization. at 9:55, consumer sentiment. >>> apple's board will be meeting on tuesday, accord

have been talking to each other and coordinateing as well as in our case sharing information with the fhfad so we believe that structure is working and will continue to work. >> thank you. mr. scott may i just add a comment to that. to represent the insurance industry, going back to the chairman's opening statement there are certainly some aspects or lines of insurance or reinsurance where the federal prudential regulator would in fact enhance the kind of relationship a the the consumer level that you want. that the indeed, it cries out for the problems associated with international agreements. focus on international insurers and reinsurers doing business in the country. so i would suggest that even the premise about the consumers concerns, there are still aspects of regulation where regulator would enhance that. >> however, may i add to that the ultimate consumer protection, congressman, is when your constituent pays a premium and doesn't have a claim for several years that the company is not only able to -- is not arnold to answer the telephone but able financially to pay the claim. we i