my final point is to identify and discuss the most significant challenge fhsa faces reform. additional withdrawals reduce the amount of taxpayer backing and the foreseeable risk that uncertainty could adversely impact the housing finance market. this challenge is significantly greater today than it has been and will continue to increase if not addressed. when i first discussed this in 2016 each enterprise had $1.2 billion under the psd as as a buffer about additional withdrawals of taxpayer support in the event of an operating loss in any quarter. on january 1, 2017, the psp a buffer reduced to $600 million and on january 1, 2018, it will reduce to 0. at that point, neither enterprise will whether any quarterly loss without drying further taxpayer support. the gap accounting for any number of noncredit related benefactors in the ordinary course of business regularly results in large fluctuations in gains or losses. and the value of the deferred tax assets. like any business, against short-term operating losses. in fact, it is especially irresponsible for the enterprises, not

fhsa did nothing and people lost their homes. when you were nominated to run the agency, you said you will tackle principle reduction. i asked you about it repeatedly. you didn't move an inch on this. finally, in april of 2016, you announced a principal reduction program. that is eight years and millions of foreclosures later. even then, you used eligibility criteria that was so demanding, that by your own calculations, only 33,000 borrowers in the entire nation would qualify for principal reduction. worse, you didn't actually require services to reduce the loan principal for those 33,000 eligible borrowers. you only require them to solicit borrowers eligible for a principal reduction modification no later than october 15 of 2016. we are now nearly seven months past that deadline. i have looked at the quarterly foreclosure report. i can't find any information about how this program is working. know, how many of those 33,000 eligible borrowers as of today have actually gotten a principal reduction? hon. watt: i can't give you the