>> fha and fhfa certainly keep an eye on what the others are.we both been gradually increasing in the marketplace in another critical component is not just gifi that ponder, mccurry h. further risk. that's a price element when one is looking at the decision of a borrower to go fha or conventional. we are well aware increasing gifi everything else constant. tension at the risk over. the point is whether fannie and freddie by the mortgage or fha, we all should the operating with risk based pricing mechanism so we undertake the business in a way in which were adequately pricing the risk were undertaking. >> time is limited. i would have that the balance of my time. thank you, mr. chairman. >> gentleman is still that. >> thank you, mr. chairman. i appreciate this hearing. mr. demarco how i want to acknowledge you did it know which the pain lancet families have gone through. it is important to note that because her having a civil conversation coming you know the reality people go through not individual families but whole neighborhoods. >> let me ask

guest: by would follow what is going on with fhfa. it is at the core of what is happening with fannie mae and freddie mac. one of the things to keep a close eye on this year is they will be trying out a lot of different ways to structure loans and parse of the credit risk among different investors. that is a key component of getting the market back on its feet with private capital. host: clifford rossi, 84 the -- thank you for your time. tomorrow, peter cook and rachel smolkin. joseph henchman will join us to talk about analysis they did of what the average resident pays in state and local taxes. at 9:00, we will talk about john kerry announcing the u.s. will provide aid to the syrian opposition. we will take a look at the papers and take your phone calls as well. that is "washington journal" for tomorrow. we will see you then. [captions copyright national cable satellite corp. 2013] [captioning performed by national captioning institute] >> today on c-span, and remarks from the public committee conference. the senators and then vice-

so i think ed dimarco at fhfa has the right idea.e doesn't want both firms spending money independently to build systems on their own. he wants to try to save money to do it. the problem is, with the approach taken to actually have fannie and freddie own them, i think is going to end up costing us money in the long run. melissa: why? why does it end up costing us money? >> think about it. all the money they spend is less money that comes back to treasury under the repayment plan or the payment plan, rather, to treasury. so that you're reeling building a system aimed at fannie and freddie securities but in the background we're trying to wind them down. we're trying to say, you know, they're not going to be here that much longer. who knows what the new securitization structure will be. melissa: are you sure that's what we're trying to do and wind them down and get out of this market that is the complaint since the financial crisis. everyone else got hit with a big club, they're kind of out there still doing pretty much the same thing a

the fhfa philadelphia price index. so a lot of different numbers coming offer we this morning. the jobless claims come out the at 8:30. in quarterly news, oracle fell short of wall street targets. the cfo says that macroeconomic forces were not a factor here. the company warning that its ailing hardware business will lose more ground this quarter. shares fell on the news in the after hours. we're going to be talking to an analyst this morning who covers oracle. that's at the top of the next hour. in other technology news, hewlett packard shareholders have re-elected the company's board. the chairman, ray lane and three others narrowly kept their seats. they had been criticized for their roles in the batched $ 1 billion acquisition. but, again, the board was re-elected. >>> boeing plans to conduct two flight tests of its revamped 787 battery system as soon as the end of this week. the plane has been grounded since january and, joe, i'll send it over to you for more news. >> i he like that with oracle. think if you were one of the salespeople. >> there are thousands of new people

today, we will talk about the fhfa to reduce the size of the gse and how to accelerate that process atthe goal of repealing this in the foreseeable future and help lead us to a sustainable housing finance system. i now will yield four minutes of the ranking member for her opening statement. >> thank you, mr. chairman, for holding this hearing. this morning on oversight, we are at a pivotal moment in the housing recovery. after a large decline in home prices in 2007, through 2011, prices are now starting to rise. housing construction is likewise. in a record 1.1 billion households were able to refinance under hud in the last year. 11 billion in income in 2012 end of fannie mae expects to report significant income when they file their annual report. headwinds remain in the market. as many homeowners still struggling to negotiate loan modification, refinance their mortgages, and understand the terms of the many mortgage settlements that have been negotiated. it is also unfortunately rare. the private sector continues to be largely unwilling to offer mortgage credit to qualified buyers ove

couldicated that fhfa make determinations based on the financial conditions of the companies not to contribute money to the funds. that has been an ongoing determination. >> who you see that changing? what is the future of funding the national housing trust fund given the profitability? >> i want to make sure the profitability is sustainable. i am mindful that -- of money owed to the treasury department. if they do not go to the trust fund, they go back to the taxpayer. i would want to give your question more careful consideration. >> i appreciate that. proceeds can go in different directions -- some to pay the taxpayers, some to fund the housing trust fund. have talked to people about these difficulties and one of likehings that i owwould your feedback on is a situation in which someone cannot pay their wordage and lose their mortgage and foreclosure and it will be sold back at market previousch then the occupant is not allowed to bid on. are you familiar with this? >> that would be considered an unsafe practice to engage in that sort of activity because you are not doing things at arms lengt