fannie mae and freddie mac dangling a carrot to get buyers off the stick. i can't be the only one seeing the stick here. >> it gets scary. after what we went through, they are desperate. first time home buyers, are doing different things. 620 fico scores. this isn't the problem. young people and other people don't believe in the american dream anymore. they don't believe in investing in the future. they are living in a moment because they lost faith in it. >> 3% down -- >> you can already get a 5% down loan. >> fha and freddie mac? >> they are lowered to 3% and 5% from fannie and freddie loans. there's a bigger problem with them. controlled by the government, the profits go straight to the treasury. they have spent a quarter of a trillion dollars into the u.s. treasury. it's $38 billion more than the bailout. they paid that back plus 38 billion dlarls. you know what? here is the thing. these are revenue sources for congress, for lawmakers. >> i don't like the name, fannie mae and freddie mac. ben stein, what do you think? >> i think if they are doing favors

fannie mae and freddie mac were mandated to hold those type of assets. mortgages inadequate volumes they began to buy securitized subprime's. s. that was a major problem in the financial crisis. my view is that fannie mae and freddie mac of never existed -- is if they had never existed, we would have had a bubble problem but not the severity in the way we did. >> what do you make of that statement, dr. schiller? >> fannie mae and freddie mac -- fannie mae was started in 1938 in response to a housing crisis. before that, dr. greenspan is right, we did not have government support for the housing market and they did not think we needed it. this was the american dream back then. it was a new idea. we could get along without it but certainly, that would be a downer for the housing market. if we get any whiff that fannie mae and freddie mac will be curtailed, that will have a psychological effect even sooner on the market. >> how much of a downer for the housing market? if fannie mae and freddie mac did not exist, it's impossible to conceive right now, but if

because fannie mae and freddie mac are in conservatorship, we are also mandated by statute to preserve and conserve their assets. in may fhfa issued a strategic plan and score koord that outlined three strategic goals for the conservatorships of fannie mae and freddie mac. each of these strategic goals is fully aligned with fhfa's statutory mandates and fully aligned with the commitments i made to this committee during my confirmation hearing. the first goal is to maintain the credit availability and foreclosure prevention activities supported by the enterprises and to do so in a safe and sound way. we have worked with the enterprises to update and clarify their representation and warranty framework, to encourage responsible lending to credit-worthy borrowers, and to enhance their outreach to small and rural lenders. our objective here has been to normalize the availability of credit within the enterprises' approved credit box for borrowers who have the ability to repay a loan. the second goal is to reduce taxpayer risk by increasing the role of private capital in the mortgage market.

and how is fannie mae and freddie mac backing you up? doddy herman delighted.eal estate jasonmeister scared. you like it doddy. why? >> yeah. i was saying millennials, first time buyers. a lot of them have the income, but to save 20 percent, that's a lot of money. so the sector that was really doing the worst was the entry-level, first time buyers because they didn't have down payments. now they can buy. >> i think it's insanity. i think einstein said the definition of insanity is doing the same thing over and over again and expecting a different result. neil: and he was talking about real estate. >> exactly. neil: you're worried we will go back to the no money type loans. it will get frothy. >> it's getting frothy. but there's no skin in the game. canada has 20% down payments. don't have fannie mae and freddie mac. and they're 20th percent of our default rate. they're doing something right. >> a lot of them don't own homes. this will be different because they're only doing them on conventional mortgages. that's how it is now. and for a lot of people, and, agai

about the reform of fannie mae and freddie mac? >> they are essentially the market. >> 40% of the market with private capital. >> i think that's an important question. there is lots of people who think now that maybe fannie mae and freddie mac incrementally modernizes and changes and a couple of years down the road, way, blesses the changes taking place. >> you think they reform themselves? >> it could happen. >> is that happening? >> we are starting to see some reforms like rich just risk chance for a. just risk transfer. imagine anything like fannie mae and freddie mac question mark have people on extremes of the two parties saying that government should be the total market. others say government should be totally out of the market. even others say they sure -- there should be some blend. if you're going to have private capital, we have to get paid for that. today, credit is pretty attractive in the pricing. to make a 30 year fixed-rate mortgage around 4%, that is a bargain. >> that is a bargain? i think so. my first loan in 1975

freddie mac will begin a more limited program in march. more investors on the main bill capitalnd fund at janus , they received about $770 million in new money in november, bringing the total assets of the fund to over $1 billion. the bond returned 4/10 of 1% over the past month. a 1909 baseball card featuring honus wagner has sold for about $403,000. the card was sold by a private collector and was bought by an undisclosed bidder in an online auction. the card is one of about 60 such cards in existence. in april of 2013 the card sold ar $2.1 million, a record for baseball card sold at a public auction. that is a look at the top stories we are following at this hour. the u.s. congress faces of thursday. -- there's a deadline to finance a massive spending bill to avoid another government shutdown. the outcome could hinge on government policy changes that they are trying to tuck into the bill. peter cook joins us with the latest. republican leaders sound confident the showdown can be avoided. >> they do sound confident at this point that the

aren't apart of it. >> fannie mae and freddie mac don't have insured deposits. whether we want insured deposits -- neil: you're looking through that prism. it's to be understood. very crucial role. in its aggregate, they're saying it's just overreach. >> well, look, i would go the other way. i would go full stop and move it out of the insured banks. it's not that it will happen. it will be done in a broker affiliate that does not have insured deposits supporting it. that's a good thing from a market perspective. the market decides how much resource, how much financing will be allocated to that. what the pricing will be. unlike insured deposits. there's no discipline with that. there are costs involved. the more we can narrow the types of activities, i think that's a good thing, a something i hope that market based conservatives would support. neil: those conservatives think the law goes too far. warren is on record saying she likes the law. doesn't go far enough. she's a possible challenger to hillary of the nomination. what do you think of her and whether she s

now fannie mae and freddie mac-backed loans offering 3% down paints back to prebubble type loaning.racy: right. >> i it is actually a dangerous thing when the housing market is being promoted or homeownership promoted by the government, fannie mae and freddie mac. that something we should be watching as well. tracy: rick, we have to jump but what is your prediction for 2015, housing market up or down. >> it will be flat for 2015. 4.1 to 4.9 million homes sold. near half a million. virtually the same number this year. tracy: thank you so. selling in december sound like a good thing to me especially if you're in miami. thank you all. search-and-rescue a coalition pilot captured by isis after a plane crash. why the military is not jumping to get him out. facebook prying ice getting into a lot of trouble. the tech giant face as big lawsuit after looking through your private messages. more "money" coming up. ♪ it's more than the driver. it's more than the car. for lotus f1 team, the competitive edge is the cloud. powered by microsoft dynamics, azure, and office 365, the team can gain rea

freddie mac and fannie mae are going to offer loans with down payments as low as 3%. good to see you, landon. thanks. >> americans shelling out bigger bucks for their cars these days. according to new data, automakers are on pace this year to sell more than a million vehicles in the u.s. costing at least 50,000. that's up more than 30% compared to just last year. two types of vehicles driving up those sales are luxury models and high-priced suvs tend to be trendy. >> scientists on a federal task force say natural conditions, not human cause emissions of greenhouse gases are the driving force behind the state's three-year dry spell. some people say it downplays other things that have human fingerprints on them. the meteorologist says the evidence is notes did missive of global warming but says the drought is not a consequence of the warming planet. >> whatever the reason for the drought, we've certainly been experiencing the symptoms of it. and while there's no panacea, christina, we know that some rain would not hurt. >> good morning, everybody. we need this rain. we

fannie and freddie mac are offering mortgages with 3% rates. they are going to help low income buyers, but they say they could lead to the same problems as before. >>> and honda has recalled cars in every state. until now, it's only in states with high humidity. the government is requiring a nationwide recall. honda is the only one to reply. honda's repair list is 5.4 million vehicles. >>> and bringing back french toast crunch. debuted back in 1995. the company says french toast crunch is coming back because of the overwhelming demand of fans on social media. it will be on shelves by the end of january. >> great news. >>> as santa is getting ready for the big night. we have word on what his salary should be. his 2014 salary should be just under $140,000. that's up more than $2,000 from last year. the index uses government wage data to estimate his pay. he brings home the most money for managing his toy factory. >>> when we come back, the royals in new york. >>> plus attempted kidnapping caught on camera. the massive manhunt under way, and what

well it's about to get easier with new loans from government-backed fannie mae and freddie mac requiring just 3% down. >> i think there's a big problem with this because we've lived through it already. >> reporter: government is pushing home ownership again claiming it is the best way for middle america to build wealth. but it is really? >> it would be perhaps smarter if wealth accumulation is your goal, to rent and put money in the stock market, which has historically shown much higher returns than the housing market. >> reporter: going back to 1987, when the s&p stock price was invented, it's a long shot. long-term they yield owners more not only through appreciation but through dividends. home prices do rise over the long-term. but you have to pay into a home in the form of property taxes, insurance, maintenance, improvements, you do have to pay capital gains on stocks, but it comes out to much less. on the other hand, home ownership produces social yields. >> the point is that home ownership is also a state of mind, it tends to produce people who are good citizens, who are involved i

this is after new guidelines were released from fannie mae and freddie mac. it will now be possible for hundreds of thousands of additional consumers to get mortgages. >>> at least five new movies from sony are being pirated from online file sharing hubs in the wake of last week's hack attack. sony wonders if north korea is under attack in retaliation for the upcoming film "the interview." it's about two journalist hired by the cia to assassinate north korean leader kim jong-un. >>> girl scouts are going online. they'll only be available through a personal invitation so scouts will have to build a client list. cookie orders can be shipped directly to customers' homes. anne-marie? >> thin mints directly to my house? that is too easy, jill. at least when you get them at work, you have to share them with your co-workers before you bring them home. jill wagner at the new york pthank you, jill. >>> today the supreme court considers the issue of free speech and the internet. in particular are postings on facebook private or public and what constitutes a true threat

mortgage giants fannie mae and freddie mac say americans will soon be able to buy a home with a down payment as low as 3%. the new lending guidelines are designed to help more low income and first time buyers afford houses. the standard down payment for mortgage insured through fannie and freddie has been 20%. >>> a critical three digit number can determine whether you can get a loan or a job. we are talking of course about your credit score. what should you do if there is an error on your credit report? consumer reports has partnered exclusively with 7 on your side to find out. here is michael finney. >> a consumer report survey finds close to half of all americans never check their credit report. this even though errors can wreak havoc with your finances and take a long time to untangle. nathaniel louis is hoping to move out of this apartment and purchase a home but recently when he went looking for help to apply for a mortgage, he discovered his credit report showed he had bad debt totally more than $180,000. >> when i saw what was on my credit report i was flabbergasted. 80% of i

mortgage giants fannie mae and freddie mac are launching programs making mortgages available to borrowers with just 3% down payments. yale professor and nobel president winning economist robert shiller is co-founder of the widely followed case shiller index that measures home prices and he joins us right now. professor, thank you for being here today. >> my pleasure, becky. >> i'm of two minds on this. it sounds like a great idea to get more consumers in to homes. isn't this what got us in to trouble to begin with, 3% down payments? >> it is not completely new now. we have fha mortgages doing almost the same. yes, it is. it sounds risky, right, to the lender and for the mortgage insurer who will insure these. it is only a 3% margin. if someone defaults and they have to sell the house they may not get all the money back. the good side is usually people don't default for a year or two at least. >> the good news is we won't have another crash for another year or two. >> well, that's a question. home prices -- our latest numbers are going up at 5% a year. if that keeps up, 3% margin will turn

toi want to shift topics fannie mae and freddie mac.en very active on the sun -- on the subject of reforming these insurance giants. first of all, with this, as you well know -- were all i know you may be advising these guys, hedge funds have been trying to make the case that fannie and freddie have been sweeping profits into the u.s. treasury. has beentreasury sweeping profits into its own coffers. is that deal way? >> i am not representing those guys. the courts are going to handle this, there are four or five lawsuits pending, taking action, complaints that this violated the administrative procedure act. the more interesting question to me than the one i have been more trying to be a part of the we ande on is -- how do the conservatorships? we have government control over the two largest factors in the insurance market. this cannot be a result of the republican or democrat embrace. the issue is -- the administration supported the effort, the legislative effort that senators corcoran and warner started and johnson picked up and ran wi

. >> another financial crisis coming the move by fannie mae and freddie mac that is more like dÉjÀ vuat you won't see and why some say it is a step way back. : [ breathing deeply ] [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. now we invite smokers to quit, too, with our comprehensive program. we just want to help everyone, everywhere, breathe a little easier. introducing cvs health. because health is everything. >> welcome back to "fox & friends first". it is a case of dÉjÀ vu. they are risk loan for home buyers. they have it as low as 3 percent. the move targets buyers with good credit but cash. having trouble getting a doctor through medicaid? a new health department investigation reveals more than half of medicaid doctors could not offer ap appointments because they have too many patients. wait times for those who could get an appointment range from two weeks to 2 months. what's worse 35 percent of doctors could not e

. >> meanwhile bill ackman has added meaningfully to his bet on fannie mae and freddie mac. sec planning to find sprint $100 million for billing customers for unwanted services horoscopes. it is a practice known as cramming. people familiar with the fcc commissioner tom wheeler has imposed to penalty. the fcc has yet to vote. now to hackers. hackers threaten to movie theaters showing the interview," and theaters are taking precautions. carmike cinemas, the fourth show thehain, will not movie and the premier was canceled in new york city. the hacking group, known as guardians for peace, is trying to disrupt the movie, which tells the story of two journalists plotting to killed north korea for a leader. and ag us -- our guest member of a security firm based in palo alto. how serious should we take these threats? >> i do not think we should take the physical threats to seriously. i think they are definitely just trying to mess with us. >> who are these people by the way? have they been linked officially to north korea? >> actually, quite the opposite. i think the north korea th

neil: real estate appraisers to fannie mae and freddie mac. reports that home appraisals are going back to be generous by eager lenders adding extra pressure and, of course, fannie and freddie are making that down payment a little extra easy in some cases as little as 3 percent down. scott, i almost think if this continues, we're begging for another housing crash. i'm all for giving people a break. but these the same type of breaks that led to the last break down. >> we saw how the movie ended. this is a tough one. if you look at banks today, they're pretty darn well-capitalized. neil: they're going to unshorn their sheets. >> that money has to go somewhere. there's an old: if it isn't lent, it isn't spent. the banks are -- >> so witty. very good expression. >> if you don't get that money out of the bank coffers -- neil: why would the banks risk doing the very thing that got them in trouble before. >> otherwise the banks sit on the cash and don't make money anyway. >> which is exactly why they should raise interest rates. there is no incentive

want to have some sort of housing finance reform particularly with getting rid of fannie mae and freddie mac. these are the taxpayer bailed out government entities that have since pay back all of the money they were bailed out with that everyone would agree that it was illustrating a larger problem which is a systemic problem. extenders,s to these that is the one we hear time and from folks all around the country. there isgton, lobbyists and trade organizations and all we care about is big and what will happen with those extenders. with the housing extender, i think i would expect a two-year extension of this. you have to qualify for it and really the in some trouble. really be in some trouble. it could potentially be made permanent if congress were be able to take up a larger package. i'm not sure, to be quite frank, that if the next congress would want to take up the housing finance reform package. there is a lot of enter politics sting -- still being worked out. i can tell you that both parties want to act on this. for the past year, they have been kicking around ideas on how the finance

really want to have some sort of housing finance reform particularly getting rid of fannie mae and freddie mac. taxpayers bailed out government entities but have since repaid back all of the money and i think everyone would agree that was illustrated a long-term systemic problem if you will. with regards to the extender, that's the one we hear time and time again from i would argue from folks all around the country. we have to remember it's a lot of lobbyists and trade organizations and big business and what's going to happen with those extenders. but i think with the housing extender, i think i would expect the extension of this would have to qualify for it. you would have to be in trouble but i do expect that this will be a two-year extension. it could potentially be made permanent if congress were to take up a larger package and i'm not sure to be quite frank with you if the next congress, if they would want to take up a housing finance reform package. there are a lot of politics still being worked out right now and to figure out what exactly a republican-controlled congress would look like

. >>> fannie mae and freddie mac have announced plans to back mortgages with down payments as low as 3%. the plans will contain safeguards to protect against abuses that led to the sub prime market crash. would be on primary >>> t-mobile will offer unlimited talk text. t-mobile has been ray aggressive if its effort to win over new customers and retain existing ones. >>> delta airline is rebanged it's cabin options including an overall economy and enhanced economy service. budget driven passengers can book basic economy fares, but the choice will come with restrictions, including not choosing seats in advance or exchange tickets. comfort plus fares come with alcoholic beverages and wider access to inflight entertainment. >> reporter: welcome back everyone, 6:23, time for the traveling forecast. for that we'll start you out on the west coast. this area was slammed with heavy rains and gusty winds. now we're seeing a pattern change, see a counter clockwise swirl off the west coast. that's an area of low pressure. the winds are racing out of the southwest. this area will jump the rockies

now with 3% 91 let's mention freddie mac has announced economic guaranteed loan at 3 percent down payment people are worried we could slip back into the battle days. >> right. they're doing it differently >> you have to show that you do pay your bills. these people have good jobs and could afford to make the payments but those 20 percent, that it is a lot. david: we have seen the 2014 market come down. 2014 is not bad but less. this is my guesstimate. you will see a 5% depreciation. by the end of 2015. david: the 10 year yield came down tremendously but you think it will go up? >> it is what is sustainable growth. >> it will not go up to% per year. whether it is the single motor it will not go -- home owner but sustainable growth is what you want. >> the u.s. dollar is becoming more valuable. but the appreciation of the dollar in and use the less of that. >> but with boarders that is another thing. you will continue to see that. david: even though the dollar is stronger it is much more expensive. >> people are afraid to keep money in their countries. >> finally the rental market was pushi

. >> well, new rules for fannie mae and freddie mac, which might mean it will be easier for americans to buy homes. a house for just 3% down. scott mcgrew is here to explain how it works. that sounds like not enough money down. that was the concern the first time. >> it was the problem that led to the subprime mortgage,ets. but let's look at some of the new rules. 3% down, has to be a fixed rate and you have to actually live in this residence. so, sam, this would not be something where you could buy a house and then rent it out or become a landlord. now, the one thing that is very different than the earlier proposed rules is this could be any homeowner. we were told at first it was going to be a first time home buyer that can get these deals. they're thing about company that end up buying your mortgage. so you go to chase or what not to try and get a mortgage. they lend you the money but then they're going to sell that mortgage back to fannie and freddie. that's hard to say, those two. they're setting the rules generally. that is it why we really care what fannie and freddie are up to

. >> a program from fannie mae and freddie mac, home buyers with good credit but little cash could qualifypeals as low an 3 percent. >> and airbags made by takata have been linked to five deaths and honey da has 2.6 million vehicles being recalled for a total now of 5.4 million vehicles. >> finally, general mills is bringing back french toast crunch. >> it debuts in 1995 but was discontinue asked now the company says it is coming back because of the overwhelming demand of fans on solve -- social media. >>> very excite. i am looking forward to blue berry crunch. that is america's money. >> he are just making everyone hungry. >> i was thinking of count chocula. >> don't let the next storm "blueberry," you. we have a couple of days to get the storm drains and gutters and everything taken care of. >> you can see the satellite, with high pressure that will be dry and mild today and tomorrow with the high in its clockwise flow pumping in a lot of the warm tropical air so it is human this morning. we are already at our average high in the mid-to-upper 50's ander going to go to record levels in th

fannie mae and freddie mac will approve 3% down, 3% down payments for mortgages.that seems really incredible given how high lending standards have been since the housing bubble, what happened to, oh, you have to now put in 25-30% just so we don't see what happened before happen again. but will' laxing -- relaxing standards entice buyers back to the market, or are we just repeating the same mistakes that led us to the mortgage crisis? joining us with the details and reaction from washington, peter barnes. 3% is stunning. what do you think prompted this? >> reporter: well, liz, you know, fanny and freddie and the administration want to try and get more mortgages to more people, but this move comes six years after the financial crisis that triggered $185 billion taxpayer bailout of the companies. so it's got some folks concerned. now with these announcements today, these kinds of loans will like start becoming more widely available in the new year, lowering the minimum down payment at fannie and freddie from 5% currently to 3%. the company said they want to get more

the new lending standards are being put in place by fannie mae and freddie mac. they're designed to help more low-income an first-time buyers afford homes in the wake of the 2008 financial crisis. borrowers still must have enough income to repay loans on a monthly basis. but this could be the start of the same problem we had leading into the recession. people buying homes they can't afford. we'll see. still a lot more to come during this special hour. tips on winterizing your home before the end of the year. there is a dangerous compac in the housing industry. inflated home appraisals are back and they worry regulators. what you need to look for coming up. ♪ they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter. come to the winter event and get the mercedes-benz you've always wished for, now for an exceptional price. [ho, ho, ho, ho] lease the 2014 cla 250 for $329 a month at your local mercedes-benz dealer. gerri: welcome back to the "willis report," our hour of housing help. what is going on with

jobs a month 800,000 jobs a months, restructured chrysler, the banks in america save fannie mae, freddie macgot hair care for everyone and not considered in his program of being great president. host: thank for the call. barack obama. guest: historic president for who he was. i think he may be joined consequential in time for what he has done. but a deeply polarizing figure, re-elected to a second term, clearly not that polarizing a figure. i think the problem with president obama fraifrping, frankly, is that he created a set of expectations and a frame of reference that was extremely difficult to meet. i think -- i call him at one point in the piece in the washington post disappointer in chief, not with any effort to criticize and attack him but to suggest that when he came in to office, i can't he believed generallying winly that the circumstances are right for transformation that the country wanted add profound transform medication at home and at brought. he very much fashioned himself after lincoln at the inaugural lunch in january of 2009. >> lunch literally re-created the lunch that ab

saved fannie mae and freddie mac. got health care for everyone. and not considered his program of being a great president? host: barack obama? guest: i think he may well be judged consequentially in time for what he has done. but a deeply polarizing figure. reelected to a second term. clearly not that polarizing a figure. the problem with president obama, frankly, is that he created a sense of expectations and a frame of reference that was extremely difficult to meet. and i think -- i call him at one point "disappointer in chief." not in an effort to attack him. but to suggest that when he came into office, i think he believed genuinely that these circumstances were ripe for transformation. the public needed fundamental and profound transformation both at home and abroad. he very much fashioned himself after lincoln at the inaugural lunch in january of 2009. that lunch really re-created the lunch that abraham lincoln had, being served on replicas of mary todd lincoln's china. he stepped into one of the most partisan and shark-infested environments

fannie mae and freddie mac are ease mortgage lending rules starting tomorrow.to begin a two-day strike on short and medium-haul flights monday and tuesday. i'm jeff glor, cbs news. by 1914 the dodge brothers and set out on their own.pany they believed in more, than the assembly line. they believed driving was a holy endeavor. a hundred years later the dodge brothers spirit lives on. i'm d-a-v-e and i have copd. i'm k-a-t-e and i have copd, but i don't want my breathing problems to get in the way my volunteering. that's why i asked my doctor about b-r-e-o. once-daily breo ellipta helps increase airflow from the lungs for a full 24 hours. and breo helps reduce symptom flare-ups that last several days and require oral steroids, antibiotics, or hospital stay. breo is not for asthma. breo contains a type of medicine that increases risk of death in people with asthma. it is not known if this risk is increased in copd. breo won't replace rescue inhalers for sudden copd symptoms and should not be used more than once a day. breo may increase your risk of pneumonia, thru

the government announcing new guide lines for mortgages with just 3% down through fannie mae and freddie macre pushing homeownership again as a way to build wealth. is it? a panel made the case that you will build more wealth through the stock market than you ever will through owning a home. no question going back to 1987 when the s&p 500 index was invented stocks win by a long shot. they are more volatile but they yield owners more not only through appreciation but through dividends. home prices do rise over the long term but not nearly as much as one might expect and you have to pay into a home in the form of property taxes, maintenance, home improvements. you have to pay capital gains tax on stocks. schiller actually charted this going back to the turn of the 20th century and it has held up for well over 100 years. you can argue that a home pays you in kind that is you get to live in it which is it is more of a consumption good like a car than an investment vehicle like a stock. it is a savings vehicle. paying down a home loan is your fourth savings. >> which gives you the better return?

one could argue that the action they have taken in terms of allowing fannie mae and freddie mac to buymortgages with 3% down they are reacting to the fact that the main reason why people aren't buying homes a big reason why people aren't buying homes they don't have the money. the second reason that they aren't buying a house they don't think they can qualify. anything to remove the economic barriers or the credit constraints is good. >> well said. i'm shocked you would imply someone would push for regularatory change which might benefit his or her industry. >> thank you very much. appreciate it. >>> two beaten up stocks that one firm says will bounce back perhaps as much as 20% in a year. those names coming up. >>> will crude oil see a five handle $59 perhaps on today's trade? we will take it up right there to you in about four minutes. stick around. act i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to mak

government controlled mortgage giants fannie mae and freddie mac announced they will back mortgages withown paints of, as little as 3%. that is unbelievable. how risky a move is this? when will the u.s. housing market see the impact of 3% down? joining me now, our favorite housing expert, mbf highway founder hairy habib who has lived and breathed mortgages throughout the years. its is not new news that they will take 3% down unlike 25, 30% some of us have. let's cut through the details and find out how this will affect the housing market? >> it should be good. first of all there are couple of restrictions. you need to have good credit, really good credit. 3% down is not available for everyone. one of the borrowers has to at least not have own ad home for the past three years. so, i think it will help the housing market. if you get the first-time homebuyer going it generates -- liz: fico score, you have to have at least 620. barry, turns out most mortgages that are approved, the fico store was more like 720. >> there is real positive thrust in past, in the past few years to see good credi

nose into this, stan, and i know there's going to be some low rate mortgages out of fannie may and freddie macing to solve the problem or make it worse because maybe people out there who shouldn't be getting loans will be getting loans? we've seen this movie before, right? >> yeah, no, i don't worry about credit conditions. credit conditions are going to get a bit looser, but we're still not providing mortgages, people getting lower mortgages are not getting a free gift. they're paying a higher rate in order to get that lower down payment. but i think we are going to see a lot more affordable housing come online, hopefully builders are going to start to build them, and we have a lot more millennials coming into the marketplace in 2015. we've been weighing for millennials to start buying homes because they've been delaying marriage and kids, and i think in 2015 it's finally going to arrive. gerri: well, from your lips to god's ear. i want to talk about mortgage rates because we've got the fed poised to raise rates here. what's the outlook? rick? >> oh, well, you know, gerri, i've been predictin

fannie mae and freddie mac bringing down your payment. 3% on a mortgage be at is that the bust the housingneeds or another door to a big bubble? a big discussion after this. how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of r mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. and cialis for daily useor you. helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in exces

there is a slight variation looking at whether it was a fannie mae or freddie mac-backed loan.ut we went through this 10-year cycle, and many people could be now in a position to come out of the penalty box, in a sense spirits of they have been locked out, and now they are able to enter the market. toit is worth talking realtors and talking to lenders to see whether a person can now qualify for a mortgage. one is your way to qualify for a mortgage in this environment is to go on the low end. do not go for the dream home on the first try. go for the lower-priced home. put some sweat equity into it, build it. that will be an easier way to get into the ownership latter. that is the old-fashioned, hard-earned way, build equity over time and then trade up later. int: realty trac said november, the foreclosure rate, looking at about over 110,000 total properties, down 9% from october, down 1% of november 2013. the 50th consecutive month decrease. what do you make? guest: the number of seriously delinquent mortgages, for closure, those are cut roughly in half from peak levels. it cont

that is according to freddie mac. >> watching the dow closely. almost wipes out the losses from yesterday. maybe another eight points to completely undo what the bears did yesterday. s&p up 27. crude is also higher after hitting $60.09. got close to that five handle. >> i would add to the market check positive signals on the u.s. consumer today. that retail sales number coming out 0.7%. it's the biggest jump in months. much more than economists were looking for. i mentioned urban outfitters. even lululemon which has been under pressure and down for the year in terms of the stock came out with an earnings beat. >> restoration hardware. >> there you go. >> 22% comp. looks like a misprint. that's what they did in the quarter. one of jim's favorite names. >> he was talking about it earlier. lauding the decision by management to produce a video he encouraged people to see about some of their new approach. it's all working quite well. >> are they still doing those catalogs? they are size of phone books? that's their thing. >> it's odd to watch the acti

in the duty of a federal government is that the federal housing administration __ fannie mae and freddie mac __ are back to providing nearly 100% taxpayer guarantees on mortgages with 3% down payment. one of the lessons that we learned in the financial crisis is that the most important factor in terms of what mortgages will go into foreclosures where those with a low down payments. a people loss of equity in the home, they would just walk away. this will lead to the very same crisis that we saw before. nobody, in either party, or doing anything. host: a tightly piece from the w "washington post." remind us what the laughter curve is. guest: it was 40 years ago this month that laughter had a dinner in d.c. __ at that time, in the mid_1970's, the economy was out of control, we are in a deep recession. like we said, when the problems with the u. s. economy is the tax rates have gotten so high. he very famously took out a cloth napkin and drew the laughter curve. it was very famous. that was the beginning of the reagan revolution. one of the consequences, by the way, is that it reminded us that

andbillion for fanny mae freddie mac. 85 billion for aig.then came, a $750 billion bailout for wall street, part of which was used to bail out g.m. chrysler. less than two months into his presidency, obama decided to one passed the $e 800 billion stimulus. to arm on cnbc cat roots a simmering grass upsurge. the tea party was reborn. the intolerable act, obamacare. a constitutional monstrosity passage was not a pretty thing to witness and is becoming more unpopular as peep learn more about it. opposition to obamacare the tea party and made it a national movement to be contended with. more than five years later the tea party has only grown stronger and is now one of the principal forces in american political life. questions remain about its aspirations and future prospects. we for the most part understand is opposeda party to, but it's sometimes unclear what they're for. thatere a positive vision unites this movement beyond opposition to big costly intrusive and unconstitutional government? how conservative is the tea party? how libertarian is

. >>> freddie mac and fannie mae letting people get loans with as little as 3% down.n't help feeling we've seen this movie before. here to talk about housing and a lot more, i want to talk about the markets. nob nobel laureate. you have a valuation index. i want to understand what you think is going on in the stock market right now. >> well, first of all i have this indicator specifically adjusted up tied to about the peak in 2007. maybe my message is getting across. i also do a questionnaire survey of individual and institutional investors. and especially among the institutional investors, they are tending to think the stock market is over priced. it hasn't been this bad since around 2000. i'm not as up to date on your numbers. my numbers, you know, i have a six-month moving average. but over the recent years, the decline in confidence in the valuation of the market has been striking. >> okay. so professor, you have a valuation confidence index. then you have a crash confidence index. what does that say right now? >> i ask people what the probability is of a stock ma