If only 90,000 deeply underwater but current borrowers defaulted on their Fannie Mae and Freddie Mac-owned mortgages in an attempt to qualify for a principal forgiveness program, the financial benefits of the program would be eliminated. So said Federal Housing Financial Agency Director Edward DeMarco Tuesday during a controversial speech at the Brookings Institution that has set off a firestorm of controversy among lenders.

Ninety thousand pales in comparison to the approximately 2 million borrowers that could be eligible for a principal forgiveness modification from Fannie and Freddie, according to the speech, available on FHFA's website.

DeMarco explained that the Enterprises could save $1.7 billion by forgiving an average of $51,000 off the balances of borrowers that are currently 60 days delinquent, which represent approximately 5% of all Fannie and Freddie-owned mortgages outstanding. Losses on those loans are expected to be $63.7 billion with no modification, $55.5 billion with principal forbearance modifications, and $53.7 billion with principal forgiveness.