under our plan every homeowner with a gse or fha or va mortgage and refinance its mortgage and the current fixed rate of 4.2% or less with a rates subject to changes in the market price of bonds so it is a market rate. at jj borrowers with a slightly higher rates. to qualify the homeowner must be current on his or her mortgage or becomes so for at least three months. this plan rewards responsible borrowers. these must be low cost minimal paperwork refinances, no appraisals, no income verification and no tax returns and a minimal title insurance policy. after all the government already guaranteed these mortgages. issuers of new mortgages would be indemnified against other reps and warranties violations, critical part of this program. underwear plan to gses which are to guaranteed fee of 40 basis points per year, more than offsetting any losses they might face. to gses would benefit through fewer defaults by borrowers with lower mortgage rates. our plan would pay 30 basis points to cover the costs originating service a new loan mortgages and making it possible for janitors and servers is giv

i'm looking at fha endorsements, the negative impact at lease for fha quantified for the nation would be approximately 3% and the hardest hit states would be connecticut and the district of washington, 8% with respect to fha. i would say when you look at the level of sales activity let me put it in perspective for you today. we are running at 300,000 annualized new home sales. this is an all-time record low. since records have been ever kept. we are at housing start levels approximately 600,000. that level of housing starts compared to 1982's trough for unemployment was 10.7% and mortgage rates for 16 to 18% grover in million. we are at such a depressed level of activity even though existing home sales have been increasing if you excluded foreclosures distressed sales which are deflationary we are at all-time record low traditional home sales so putting that in perspective anything they take away from housing today is going to be a negative and further eroding the level of sales and activity and putting further pressure on home prices. >> i appreciate that. that is my concern. thanks

looking an fha endorsements, the negative impact at least for fha quantifies for the nation, approximatelyington at about 8% with respect to fha. i would say when you look at the level of sales activity and put it in perspective, we are running at 300,000 annualized new home sales. an all-time record low since records have been capped. we are at housing starts levels today, approximately 600,000. that level compares to 1982 is trough when unemployment was over ten and a half percent and mortgage rates were 16 to 18%. reread such a depressed level of activity, even though existing home sales have been increasing, if you excluded forecloses to this -- distress sales we are at all-time record lows. supporting that in perspective anything you take away from housing will be negative and further eroding the level of sales and activity putting further pressure on prices. >> i appreciate that. that is my concern. thanks to the panel. we appreciate your insight and look forward to the will to pick your brains as we roll up this process and thank you very much. the me call up our next panel and ask

allowing the fha short refinance programs to be used on the gse inventory. it is my hope to this hearing and a subsequent one that we will follow up by next week that we will develop a housing policy and promote initiatives that gets our housing market moving again. with no other members they see wishing to make an opening statement, let me call upon my two distinguished colleagues for their statements. senator boxer of california, senator isakson of georgia, i'm happy to welcome them. they both have strong records and housing policy and they'll talk about it though they've introduced to jumpstart the housing market and help millions of homeowners refinance their mortgages. with that, senator boxer. >> thank you so much, mr. chairman. i'm proud to be here with senator isakson and he is a long, long profession come a

there's fha support in this bill.african-american young people in particular, are out of work and the pathway to work opportunities where $5 billion is going to be there for 16 to 24-year-olds, is going to affect a ton of african-american young people in communities. i think his messaging was consistent, but i think his tone was different in that he was letting african-americans clearly understand that i understand where you are, but please know, that this messaging that i've been engaged in affects you as well. >> all right. jeff johnson, contributor to msnbc, and thegrio.com, i urge folks to go over to the grio and check out your reporting on this meaning. thanks, jeff. >>> well, scandal has plagued college athletics for decades but as more schools are penalized for infractions it begs the question where does the true problem lie, with the student athletes or system? taylor branch is a pulitzer prize winning author, one of the great historians we read and you are tackling in the new edition of "the atlantic" the sha

families, someone has to deal with this and i just want to encourage you and fhfa and the gse is and fha the counseling environment because we are on the ground with these homeowners and home buyers we can convince them and work with them and help them to understand what they should and should not do. >> very good, thank you. >> turning back i think the que are in as currently proposed as overly restricted for two reasons. one, dave said nicely if you look at the credit risk that the higher ltv's or lower down payments, i think there's strong evidence that it makes perfect sense to allow the law were down payment loans that the control for all the other risk factors it's perfectly allowable for the down payment loans. a second reason, and this goes to the broad reform, if you look at the fhfb data under the current roll i believe only over time on average only about one-third of all mortgage loans are qrm so in the future world where we do something that the gse is a think there would be very restrictive and would mean that the government's role in the mortgage market would be very limit

we need to have a kind of process where by the fha or government overall, can take a share of the mortgageske the debt off the hands off a lot of people and get the share of the upside gains in terms of an equity share in mortgages. >> robert reich, thank you very much for joining me tonight. >> thanks, lawrence. >>> over the weekend, sarah palin gave speeches in iowa and new hampshire, but again she did not say whether she's running for president. that's because she's not. that's coming up. [ male announcer ] you never know when a moment might turn into something more. and when it does men with erectile dysfunction can be more confident in their ability to be ready with cialis for daily use. cialis for daily use is a clinically proven low-dose tablet you take every day, so you can be ready anytime the moment's right. ♪ [ man ] tell your doctor about all your medical conditions and medications and ask if your heart is healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain as this may cause an unsafe drop in blood pressure. [ man ] do not drink alcohol in e

we need to have a kind of process where by the fha or government overall, can take a share of the mortgagesthe debt off the hands off a lot of people and get the share of the upside gains in terms of an equity share in mortgages. >> robert reich, thank you very much for joining me tonight. >> thanks, lawrence. >>> over the weekend, sarah palin gave speeches in iowa and new hampshire, but again she did not say whether she's running for president. that's because she's not. that's coming up. ♪ ♪ [ male announcer ] you've reached the age where you don't back down from a challenge. this is the age of knowing how to make things happen. so, why would you let something like erectile dysfunction get in your way? isn't it time you talked to your doctor about viagra? 20 million men already have. with every age comes responsibility. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, see

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we need to have a kind of process where by the fha or government overall, can take a share of the mortgagesthe debt off the hands off a lot of people and get the share of the upside gains in terms of an equity share in mortgages. >> robert reich, thank you very much for joining me tonight. >> thanks, lawrence. >>> over the weekend, sarah palin gave speeches in iowa and new hampshire, but again she did not say whether she's running for president. that's because she's not. that's coming up. [ female announcer ] we always try to save you even more money when you switch your car insurance to esurance. i could save 'em 522 smackers. you talkin' dough? bread. benjamins? scratch. greenbacks. moolah. cheddar... simoleons! don't try to out-save me. [ female announcer ] any way you say it, $522 is the average amount saved by people who switched to esurance. 522 bucks! [ female announcer ] to find out how much you'll save, call 1-800-esurance or visit esurance.com right now. that's 1-800-esurance or go to esurance.com. the crib is already there. great. thank you so much. [ male announcer ] we provide

whether it was something that would lack the right price for the right product and i am proud that fha which is a part of hud two-thirds of latinos that bought homes used the fha loan and the lack of access in the broad mortgage market in the role and we recognize two-thirds of the growth of this country is going to come from latinos going forward, two-thirds. if they can't access homeownership they are not going to be able to build wealth in the way that we traditionally have in this country. so what is we cannot pull up behind that once we have been in this crisis but we also have to help communities and families that have been hurt. we have made progress there but not enough progress. there are about 5 million that have had their mortgages modified. a large share of them latino because the crisis so concentrated in the community but we also have to do more. that's why the president as part of the american job back as $15 billion building on the efforts in the neighborhood stabilization for those of you who don't know we save about $7 million into the neighborhoods with particularly

and ginny may programs and fha programs, the goal was to have the government recognize that there is some value in incenting home ownership. but in doing so directly, there's greater control, and there's less likelihood for seepage of profit-taking behavior. and fannie and freddie really were at the front end of comingling the social policy with financial market policy. and that, that really is the departure point that i think is very important because in 2001 i wrote a paper called housing in the new millennium, a home without equity is just a rental with debt. [laughter] and in that paper there was no, there really was no private label mortgage-backed securities market. i had been part of the creation of what we call subprime 1.0 in the '90s where we saw a large number of small subprime originators come. and really what they were doing was they were making loans that were still relatively traditional mortgage products, 15-year, 30-year fixed rate products to borrowers with blemished credit histories, and that industry, therefore, had a very small market that it could tap into. ulti

i'm very proud of fha, which is part of hub, 2/3 of latinos who bought homes last year us used an fhas something about the lack of access in the broader mortgage market and the importance of the right federal role to assist them. recognize, 2/3 of our growth in this country will come from latinos going forward. 2/3 of that growth. if they can't access homeownership they will not be able to build wealth in the way we traditionally have in this country. one, we can't pull up the drawbridge behind us once we've been through this crisis. but we also have to help communities, families that have been hurt. we have made progress there but not enough progress. there are about five million families had their mortgages modified. a large share of them latino because the crisis was concentrated in latino communities but we have to do more. that's why the president as part of the american jobs act would invest $15 billion building on efforts of neighborhood stabilization. for those of you who don't know, we put $7 billion into neighborhoods particularly hard-hit by foreclosures. it creates about 1

fha loan.ys something about the lack of assets in the broader mortgage market, and the importance of the right federal role to assistance. two-thirds of our growth in this country will come from latinos, going forward. if they cannot access home ownership, they will not be able to build well in the way that we traditionally have in the country. but we also have to help communities, families that have been hurt. we have made progress there, but not enough progress. there are about 5 million families that have had their mortgages modified. a large share of them latino because the crisis was concentrated in the latino community. but we have to do more. that is why the american jobs act would invest $15 billion for neighborhood stabilization. we put $7 billion into neighbor of them were particularly hard hit by foreclosures. it creates about 100,000 jobs putting construction workers back to work rebuilding these homes. the critical part of that is it helps to stabilize home of values in those commu

hud has put out information on an fha program which would insure loans for a vote -- for folks doing green-energy reductions. a lot of the costs go to utilities. a lot of older buildings could be retrofitted. it is really a timely and -- really timely. host: let's go to rick. turn down your tv. go ahead. caller: i am a recipient of the section 8 program. i think it is a very beneficial program. the income and make it my full- time job that i work very hard at -- income i make at my full-time job that i work very hard that is not enough to support my six-person household. host: have you found it to be user-friendly? caller: definitely. i heard someone make a comment about not being able to attract people's income. they have a program in pennsylvania that tracks how much money they make. obviously, if you have to pay more rent, you will receive a letter with that notice. i do not see how it is possible for anyone to jump the system -- gyp the system. forink it is a great thing people in my situation. guest: that is what congress needs to hear. your example is truly what we see most oft

hud has put out information on an fha program which would insure loans for a vote -- for folks doingen-energy reductions. a lot of the costs go to utilities. a lot of older buildings could be retrofitted. it is really a timely and -- really timely. host: let's go to rick. turn down your tv. go ahead. caller: i am a recipient of the section 8 program. i think it is a very beneficial program. the income and make it my full- time job that i work very hard at -- income i make at my full-time job that i work very hard that is not enough to support my six-person household. host: have you found it to be user-friendly? caller: definitely. i heard someone make a comment about not being able to attract people's income. they have a program in pennsylvania that tracks how much money they make. obviously, if you have to pay more rent, you will receive a letter with that notice. i do not see how it is possible for anyone to jump the system -- gyp the system. forink it is a great thing people in my situation. guest: that is what congress needs to hear. your example is truly what we see most often.

the fha on behalf of fannie and freddie is suing them.y want to recover a portion of the losses of those securities. let's say that they bought those securities at on 100 cents on the dollar. they are only worth 30 cents on the dollar. there is a 70% loss. they want to get compensation for portion of those losses. host: president bush kept talking about the ownership society, and that spurred community growth. when individuals on their home. is this a result even directly or indirectly of the bush administration's efforts to encourage people to own more homes? guest: the idea of this ownership society and expanding homeownership actually dates back before the bush administration. i think it was bipartisan in some ways. you had people under president clinton pushing for the same thing at fannie and freddie. and definitely the mandate from congress was that fannie mae and freddie mac was encouraged in different ways for as many people to own homes as possible. they would incentivize fannie and freddie to provide loans to low-income people,

real worry about the banks because the fha and u.s.ue six or seven european banks over the mortgage meltdown. that didn't help. we had losses, regional election in germany for the chancellor there, lots of worries about in debt in italy and greece. lots of people coming back from holiday and saying nothing has changed. we haven't sorted the debt crisis problems here. what we're seeing today with the markets is what they say relief rally. switzerland shares up more than 4% because the swiss national bank has intervened in the currency markets and the euro driven up by 9% against the swiss franc. it's interestings this happened. they've set a currency peg to the euro. what this might mean to viewers we could see some recovery in the u.s. dollar because of this. so it will be interesting to watch. we see the ftse up 1.5% so far today in london. a bit of a relief rally. >> whole lot of things going on. new records in gold as well. all these things intertwined whether the u.s. job situation or the debt crisis, the u.s. currency and gold. wa

. >> well, first of all, mortgage insurance applied only to conventional loans, not fha or v.a.ur homes and particularly five, six years ago, although it still exists now, then the lenders would say we'll give you the loan, but because you don't have enough money to put down, you have to buy mortgage insurance. and basically -- so most people that didn't put 20% down have mortgage insurance. >> steve: so pmi -- this is what people need to know -- pmi is extra insurance that lenders require for most homeowners who put less than 20% down on a home. >> exactly. >> steve: go ahead. >> i'm sorry, steve. the concept behind it is this: it is a protection for the lender. so if a person has a home now, let's say, and they either short saled the home or the house is foreclosed on, that mortgage insurance is there to pay a portion of the deficit of what's owed on that loan. the problem, steve, is most of us as homeowners when we sign these three or four inches of documents to buy a home don't understand when you have mortgage insurance, if they pay that deficit, that mortgage insurance has

we have a little in savings and do qualify for an fha loan. what do you think we should do?s, it makes you broker. don't buy a home until you're -- until you're ready. you need your emergency fund in place. you need to have a good, strong down payment and you need to be out of debt. you will -- i've always heard this question for 20 years that people are going to be priced out of housing market. and it's a function of how well you handle money and how well you handle your income and your career track as to whether you get into a home but don't buy a home out of desperation. you'll cause yourself major problems. >> all right. debbie from kentucky has this question for you. we don't plan to be in our new home long term. so we are looking at a five year adjustable rate mortgage. what do you think? now i have to admit, dave, i've done this in the past when i knew i wasn't going to be in a home for a long time. do you agree or not? >> no, i don't because we don't know. case in point is lately, you could be stuck in a home right now with an adjustable rate mortgage because you cou

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hud has put out infmation on an fha program which would insure loans for a vote -- for folks doing green-energy reductions. a lot of the costs go to utilities. a lot of older buildings could be retrofitted. it is really a timely and -- really timely. host: let's go to rick. turn down your tv. go ahead. caller: i am a recipient of the section 8 program. i think it is a very beneficial program. the income and make it my full- time job that i work very hard at -- income i make at my full-time job that i work very hard that is not enough to support my six-person household. host: have you found it to be user-friendly? caller: definitely. i heard someone make a comment about not being able tattract people's income. they have a program in pennsylvania that tracks how much money they make. obviously, if you have to pay more rent, you will receive a letter with that notice. i do not see how it is possible for anyone to jump the system -- gyp the system. forink it is a great thing people in my situation. guest: that is what congress needs to hear. your example is truly what we see most often. most folks

the first-time buyers, the investors are paying cash and the first-time buyers, the 40% are generally fha financing with less than 5% >> "washington journal" continues. host: every wednesday we're going to be taking a look at recent magazines, spotlight on magazines and book it recent cover stories. today is the "mother jones" on the use of fbi informants to prevent lone wolf attacks. trevor aaronson, let me begin with this part of your story. "counter-terrorism is the fbi's top priority." why so many informants? how are they being used, and why? guest: the fbi does not believe a coordinated attack is possible. they fear someone who is in a community somewhere in the united states and is inspired to commit some kind of actor terrorism on their own. the fbi believes this is the primary way of identifying them. informants can go into the community centers and talk to people and figure out who these people would ba and then alle fr them the opportunity to move forward -- figure out who these people would be. host: who are these informants? what do they look like? guest: they could be your ne