the fhfa developed this program, harp.ows underwater and near- underwater borrowers a pack to refinance their mortgage without allowing -- obtaining new mortgage insurance or some other credit enhancement as would otherwise be required. the enterprises have acquired 10 million refinanced mortgages, of which more than 1 million were harp loans. these results fell short of what we believe we could have achieved. consequently, fhfa engaged with the enterprises from the treasury, and a wide array of market participants to identify and resolve impediments to the program. the changes were made already. there has been revised -- and increased interest. we expect the volume of such loans to increase in the near future. let me turn now to principle forgiveness. in the original program, principal forgiveness was always permitted, but it was reviews. in 2010, to encourage greater use the principle forgiveness for loans with loan to value ratios above 115% from a treasury supplemented the original program with the hammer principal red

questions were raised about the methodology fhfa and floyd bannister earlier analysis. to address these concerns we made the following adjustments -- we have lower delinquent borrowers credit score is by 100 points to better reflect the current credit standing of the borrower rather than where they were at the time the loan was originated. we have raised delinquent borrowers housing payment debt to income ratios. those that were below 30% were set at 45% fat and those above 45% have not been adjusted. this time around we have applied zip code level rather than house pricing to estimate what the current loan to value ratio of the mortgage is. rather than doing the analysis simply forbearance only versus forgiveness all we, this time around we used the 0 regional -- we used the full h.a.m.p. pra to work for what the actual payment to the bar would be. again we inc. triple incentive payments that would come to fannie and freddie from doing principal reduction. the original analysis we produced considered all enterprise loans with a current loan value above 115% not just th

the fhfa developed this program, harp.s underwater and near- underwater borrowers a pack to refinance their mortgage without allowing -- obtaining new mortgage insurance or some other credit enhancement as would otherwise be required. the enterprises have acquired 10 million refinanced mortgages, of which more than 1 million were harp loans. these results fell short of what we believe we could have achieved. consequently, fhfa engaged with the enterprises from the treasury, and a wide array of market participants to identify and resolve impediments to the program. the changes were made already. there has been revised -- and increased interest. we expect the volume of such loans to increase in the near future. let me turn now to principal forgiveness. in the original program, principal forgiveness was always permitted, but it was reviews. in 2010, to encourage greater use the principal forgiveness for loans with loan to value ratios above 115% from a treasury supplemented the original program with the hammer principal reduc

now, questions were raised about the methodology fhfa employed in his earlier analysis. to address these concerns we have made the following adjustments. we have lowered a delinquent borrowers fica scores, or credit scores, by 100 points to better reflect the current credit standing of the borrower rather than where they were at the time and on which version you. we have raised illegal bars ratios, those that were below 45% have been set at 45%, and those above 45% have not been adjusted. this time around we have applied zip code level rather than state level house price index is to estimate what the current loan-to-value ratio of the mortgage is. rather than doing the analysis as simply forbearance only versus forgiveness only, this time around we use the original, we use the full hamp pra and regular hamp waterfall to work through with the actual payment to the borrower would be. and again we've incorporated the triple incentive payment that would come to fannie and freddie from doing principal reduction. in addition, the original analysis that reproduced considered al

there has been a lot of focus on the principal reduction issue but we have worked very well with fhfa. we have made millions more families who are current on their mortgages and other water eligible for refinancing. we have made those changes available over last few months. we already have over 400,000 applications for refinancing for underwater bar was just among five lenders. we are very encouraged by the under -- by the results. let's not just focus on the principal reduction question. there are many ways we can be helpful to homeowners and we have been working well with fhfa to make those available. >> you also oversee the federal housing administration and the fha as a serious number of borrowers who are under water because they only have to put down a 3.5%. do you think the faa should consider principle forgiveness for borrowers who are deeply underwater on fha-backed mortgages? >> we are doing principal reduction within the authority that we have. we could do partial payments of claims and other processes that help owners stay in their home. if not full forgiveness, in the sett

clearly they already do and it remains fhfa's and the enterprises collective objective to do so. as fhfa makes its decision on whether the enterprises should offer forgiveness with the triple incentives we will look to the issues i've described, the net present value impact, borrower incentive, and the operational costs those are the issues within our responsibility as conservator of the enterprises. whether fannie mae or freddie mac forgive principal or not, the universe of ornte prize borrowers potentially eligible for a principal reduction is well less than 1 million households or a fraction of the estimated 11 million under water borrowers in the country today. this is not about some huge difference-making program that will rescue the housing market. it is a debate about which tools at the margin better balance two goals. max miesing assistance for several hundred thousand home owns. while minimizing further costs to others. the anticipated benefit is that by reducing foreclosures relative to other modification types, enterprise losses would be lowered and house prizes would

if you look at the fhfa home index. it doesn't get much attention.ly tracks government-backed mortgages. but for the year ended february, home prices were up 0.4%. now, that's the first 12-month increase that we've seen for this index since the 12 months through 2007. the housing day today, mixed bag, a lot of different stuff going on and the market is not reacting too much to it. if you look at this little glimmer of hope in what's happening in the fhfa side, it does still lend some credence to the idea that housing, if not bonding, is stlooes stabilizing. >> it's a process. not an event. getting back to broader markets as well, this morning. we saw some big declines across the board. we want to get some more insight from one of the more bearish strategists on the street. chief equities strategist sticking with his price target of 11.67 on the s&p. adam, welcome back. good to have you again. has your faith in 11.67 gotten stronger as the spring has started? >> we take the view of the 2013 earnings. but how people are going to feel about those earnin

evidence by the way that they'll work. >> secretary geithner has offered director demarco and the fhfaleftover tarp funds to underwrite the proposal. demarco made clear he is still studying the math. in washington, james rosen, fox news. >> bret: the south carolina state ethics commission opened an inquiry in campaign finances of republican governor nikki haley. the complaint accuses haley of failing to maintain proper records of donors' occupations and addresses. haley's spokesman calls at it political stunt. >>> the very people who are supposed to be conveying information actually trying to bury it for political gain? and one manager learns the hard way that baseball an politics do not mix. grapevine is next. [ female announcer ] want to spend less and retire with more? then don't get nickle and dimed by high cost investments and annoying account fees. at e-trade, our free easy-to-use online tools and experienced retirement specialists can help you build a personalized plan. and with our no annual fee iras and a wide range of low cost investments, you can execute the plan you want at

the fhfa has already moved into the space. 2/3 of the space is gone. we expect to access it in the next 30 days or so. i revoked all delegations to staff to sign real property leases. i turned over all our leasing responsibilities to the general services administration which has deep and long experience and we will leverage them and they will enter all property leases on behalf of the sec. >> i'm tempted to say that should make the chairwoman very happy, but i'm being sarcastic. >> i understand. i am pleased that you all are giving that responsibility over to the gsa. we'll deal with them on another day. >> we're motivated. we can use our resources much more critically for our mission, protecting investors, ensuring the marks operate with integrity and build up infrastructure with other agencies. >> she's right. but profoundly sarcastic which is a whole different thing. i do agree with miss emerson that this is probably where it best belongs and hopefully this will never happen again. i think the sec have been more vigorous than ever in pursuing wrong

but the fhfa is just kind of agai

but the fhfa is just kind of against it.strating a continued willingness to meet their mortgage obligations should be recognized and encouraged, not dampened with incentives to not continue paying. also it says that it would add to the overall taxpayer burden which is obviously massive when it comes to fannie and freddie. it's complicated. there's no easy solution on this one. >> all right. felicia, thanks. good to see you.

the fhfa is evaluating whether financial incentives will be enough to cover the cost of fannie and freddie down mortgage debt. >> is this principal write down? or through reduction on interest rates, extending -- >> a lot of things you could do. this isn't going to happen. >> you wish they would have said -- do you wish dodd frank had something in there? would that have made any sense? >> if you forced fannie and freddie -- >> dodd was the biggest -- he got more money from fannie and freddie. and then you had -- >> would it be possible to have that conversation without it being political? >> how is it not political when the reform is dodd frank and you have barney frank says i'm willing to throw the dice. >> how about it we approach the issue of what to do in the context of what would be best. >> that was the spirit of the renlg question. if you were trying to solve the financial crisis, how come fannie and freddie weren't involved in. >> and i would argue it should be addressed in some meaningful way. >> instead of sterilizing the government's complicity in the whole -- >> denying it in f

new home sales at 10:00 eastern and the fhfa reading of home prices shortly after 10.continental said to be near a deal to buy more than 100 boeing 737s, that's according to the wall street journal. it would mark a win in its ongoing battle with airbus. and james murdoch is testifying in a london inquiry about media ethics and says he's assured news media ethics were being followed. the futures now are looking good and positive today. the dow looks like it would open up about 32 points higher right about now. becky. >> andrew, thank you very much. cnbc has polled the nation's top economists who follow the fed and we have the exclusive results right here as the fed begins a two-day meeting. steve liesman joins us with the results of the april survey. steve? >> i'm in the exact same spot andrew was in. we changed the back drop. magic of television. >> increasingly, this is interesting to me, the fed believes in this late 2014 guidance on rates being low. let's take a look at what the numbers say. we polled 53 economists, wall street fund managers and strategists. will th

what's going on fhfa trying to do principal reduction, one mr.or, not crazy about the idea, he's there to protect taxpayers, hey abowh about t.a.r. ? what about europe? a story in the telegraph, germans aren't happen. another end-around game going on. >> through the balance of payments called the target system in europe, the financing that's been going on is a little odd and has pumped up some of the balances, everything's gone through the bank through the balance of payments through the banks and through the printing system on local level. they can't handle the clat real. >> so if i was looking at this, the point is, when i read the newspapers about how much germany is on the hook, that number according to this article in the telegraph, might not -- it's much bigger? >> much bigger than everyone has been talking about. it comes down to the collateral stresses. they'll trade treasuries and they'll trade bunts. >> on that, let's show a chart. it's 170. you have 28 basis points difference. ours is still under 2%. the reason that we see both the cre

the acting director of the fhfa with interesting views about principle forgiveness. know, those farmers, those foragers, those fishermen.... for me, it's really about building this extraordinary community. american express is passionate about the same thing. they're one of those partners that i would really rely on whether it's finding new customers, or, a new location for my next restaurant. when we all come together, my restaurants, my partners, and the community amazing things happen. to me, that's the membership effect. >>> what the fed will do next? steve liesman has been listening to janet yellen who came out last night looking for a number of speakers today, steve, yeah? >> i want to talk about the economic data. big debate about that moving markets today. claims that 380 up 13,000. question was what kind of jobs data would we get after the soft jobs report last week? trade coming in minus 46 billion more than expected by economist. core ppi was higher. i want to give you until sanaly the data out there. claims were watched for signs of softening and there's a

where you are setting aside some of the mortgage for it while i'm at this, of course, is advocated by fhfainto micro, you take the mortgage and said it aside, they say okay, we won't charge interest on that portion of the mortgage. but you are still liable and responsible for it. if you refinanced and you sell your home, you have to pay that back. the entire amount of that mortgage, even though the investor has lost, and i want to point to one of the services. one service has figured out that it is more in the interest of investors to principal write-down. mortgages are lost or so than writing them down. i'd kind of like to hear people's thoughts about that and why perhaps the government should be more engaged in trying to acquire these mortgages. honestly, fannie and freddie, under the conservatorship in the direction of ed dimarco has to play -- diane pointed this out earlier. it has to play more of a role in principal write-downs. we have a lot of work to do. it seems to me that that is something that could really stabilize the market. not necessarily think of the banks of the at the sa