but the actual note was owned by fannie mae. noreen and shawn put in an offer. but the same day, the note was sold. >> at which time, when fannie mae realized they made a mistake, there was an offer on the table. they had to buy it back. >> and over the course of a few months, noreen and shawn went back and forth to the bank with offers and counteroffers. >> so much frustration. lot of emotions. >> we're -- we're just a -- a -- a piece of paper on somebody's desk. they don't know us. they don't care about us. >> finally, an offer was accepted. but the same day noreen and shawn sent in their signed paperwork, the note was sold yet again. >> the owner accepted it. we accepted it. we all signed on it. the bank didn't. at which time, they sold it again. it's been, uh, an emotional roller-coaster. we have storage units full. we're -- we're ready to go. and, uh, this house, this note, the piece of paper just gets shifted from, uh, financial institution to another one to another one. >> even though the seller agreed to their offer, it still has to be proved by the new

congress created fannie mae in and freddie mac in 1970. for years, many years, these prudently pursued their core mission of enhancing the availability of credit for housing. beginning in the early 80's, tonie and freddie helped facilitate the development of the securization market for home majors. they purchased and bundled mortgage loans. freddie also guaranteed payment of principal and interest. place,is guarantee in mbs investors took the risk of interest rates and the gse's took the risk of default mortgages.rlying thanks to growth and securitization, fannie and freddie have dominated u.s. housing finance since the late 80's. this precrisis system did its years. many by promoting standardization, aructuring securities to meet broad range of investor risk appetites. and freddie brought greater liquidity to mortgage markets. but the system ultimately failed flaws in itsental structure. in the early days, the chance that either gse would either fail to honor its guarantee seemed highly remote. question always loomed in the background. wh

so-called private corporations through the -- to the tune of hundreds of billions of dollars, such as fannie mae and freddie mac. our airspace is a public resource and great national treasure. control over it should not be handed over to a private board with no oversight from congress and therefore no obligation to represent the best interests of the citizens of the united states. modernization should continue to be our goal, and congress can get there without jeopardizing control and safety of our national airspace. i look forward to working with my colleagues and the president to modernize our airspace while making sure that it remains the safest and most successful in the world. with that i yield back the balance of my time, mr. speaker. the speaker pro tempore: the gentleman yields back. the chair recognizes the gentleman from texas, mr. farenthold, for five minutes. . mr. farenthold: mr. speaker, every year i have the pleasure of nominating outstanding young men and women from the 27th congressional district of texas to the united states military service academies. recently, i held a lunch

on wednesday, fannie mae announced it would reduce its debt to income ratio to attract more millennial home buyers. such an action will help some millennials although fha loans are an attractive option. i welcome this action. in concert with our efforts, millennials will know have game changing circumstances that should encourage home ownership. however, the federal government cannot be the only solution. we don't want to turn back time. remember, when in response to the troubles of 2008, the federal government was virtually the only lender for home ownership. that was not a good role for fha or fannie or freddie. lenders and mortgage providers need to help credit worthy millennials buy their first home. the taxpayer cannot be the sole solution. this is a time for aggressive responses in cities and communities that open opportunities. we need to do more. we need to stop punishing an entire generation for sub prime crisis. and as we recover from that time, we must not overlook those trying to enter the market. one publication argues that millennials could become a power house base for h

because the market is backed by government backed agencies with a high concentration of mortgages in fannie mae and freddie mac. treasury secretary has called housing finance reform a top priority. >>> meantime, the cheshl real estate landscape could also reshaped by amazon's plan to acquire whole foods. just today, the etf that invested real estate investment trust fe its largest drop since early march. diana oleic has more. >> the amazon whole foods deal story, but the value of strip mall centers with a whole foods just shot up. >> if you have a whole foods center in place, more likely to see increased foot traffic and we would expect retailers would want to be around those. >> increased foot traffic will come from those who may have stayed away before because of higher prices. now, they have a reason to go. if prices are and maybe theye picking up some bedding they ordered on amazon. other centers with competing grocers are likely to see less foot traffic, which will hit the grocers, connect its stores and the real estate underneath even harder. >> you might see a degradation, situations whe

freddie mac is focusing on mid-sized landlords after fannie mae made a similar move earlier this year are making criticisms about whether fannie and freddie should be in the housing market welcome to you both. dick, the reason they have sparked so much reactionsy thought the idea of fannie and freddee was to support the goal of homeownership and it seems like a departure from those to be backing rentals. >> it was the goal of the markets and in 2010 the obama white house put out a white paper signed by the treasury department and the housing and urban development department, and the basic premise was that every american should have a decent place to live, but it doesn't have to be a single-family home, and in every-quarter since 2010, you know, both fannie and freddie have increased the share of rental properties that they have -- that they have assisted related to -- relative to single-family homes, so it may seem like a new announcement today, but it's not. it's a 7-year-old announcement. >> josh, let me ask you. it's interesting because of the whole idea is to make homeownership re

congress created fannie mae in 1938 and freddie mac in 1970 and for years these institutions prudently pursued their core mission of enhancing the availability of housing. beginning in the early 1980s fannie and freddie helped facilitate development of the facilities for home mortgage, purchased and bundled mortgage loans and sold the resulting mbs to investors. fannie and freddie also guaranteed payment of principal and interest and with this guaranty in place investors took the risk of changing interest rates, the gsts took the risk to default on underlying mortgages. thanks to growth and securitization fannie and freddie have dominated us housing finance since the late 1980s. this precrisis system did his job for many years by promoting standardization, structuring securities to meet broad range investor risk appetites and guaranteeing, fannie and freddie brought greater liquidity to mortgage markets and made mortgages more affordable. the system ultimately failed due to fundamental flaws in its structure. in the early days of securitization the chance that he the gst would fail to

bringing group chairman and former fannie mae executives to murder right now. good to see you.e consumer credit card companies, are they doing something different right now in terms of why we see higher scores? >> over the last decade, they fallen under a lot of scrutiny. experience, trans union, equifax, fica scores ultimately. you guys have not been very responsive to commands these reports are inaccurate and inaccuracies are hard to correct and therefore people have suffered. the first installment of the changes essentially has surprised some of these things. civil judgments, tax liens and things like that the customer had no idea where even they are and quite frankly the documentation doesn't support it. that's only a point. the government, the housing agencies using this fica scores with proxy for credit worthiness and capacity. these things are so outdated. the government is using atari councils for the new generation are using pokey, instagram and things like that. 50 million people around score both, completely invisible to the system. that's a bigger issue that needs t

. >> fannie mae wants the money this month or you are in trouble. >> the burden of student loan deathmay be to blame but by the time they paid off their debt financial milestones like home buying, marriage and kids take over. >> okay now i have kids to raise and a house to buy and all of these things. it is not an option to put away all of this extra money. >> still, they are already planning not to just retire but to retire early. and a survey finds they plan to be out of the workforce by age 58. you heard that right. in new york, back to you. >>> still ahead we are learning more about what the police call a violent assault on a delta flight attendant. the charges he can face. >>> the death of an american tourist in greece leaves unanswered questions. the search for more suspects [ crickets chirping ] [ light music playing ] you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz you've always longed for. but hurry, these shooting stars fly by fast. lease the c300 for $399 a month at your local mer

carol: in the politics section, once friends, now fannie mae's.ies.icated -- fr the company relationship between germany and turkey. the trade between the two is upwards of $36 billion per year. the relationship goes back to the 1960's when a lot of turks moved to germany. now, there have been tensions for about a year and a half. .hey have spilled over >> i had no idea how deep this was. you have lots of german companies operating in turkey. there's a lot of back-and-forth between the two. >> sure, volkswagen, deutsche's, a lot of them had she's presences in both germany and turkey. at one time, germans made up the biggest taurus block and turkey. the ties are complex, they are really deep. they are very substantial. >> we know they have a great relationship where they have had a great relationship. it has become strained as of late, what happened? week, turkey detained a few human rights workers. one was a german national. angela merkel uncharacteristically denounced this for the last year and a half. she has tried very lightly on turkey's the t

into account differences between the european and american banking systems, like the effect of fannie maeddie mac on mortgages. but i also support that we will arrive with a deal. we need to have better capitalized banks, a fundamental component of financial stability. >> there has been concern on this side of the pond that europe might retaliate for the u.s. requiring european banks to here. holding companies there might be regulation that would raise the cost for u.s. banks in europe. do you see that on the horizon? >> first, i welcom the new report of the treasury about the more proportionate regime for foreign banks in the u.s. i think this is a positive development. what we are trying to do on our side, in our banking package, is to rationalize the way in which oversight the presence of foreign banks. this is an additional element, the consequence of brexit on financial stability. it is a very peculiar situation which has nothing to do with our relationship across the atlantic, but is something we have to take into account. so my general line, what i said to my interlocutors, we don'

so, right now, we have fannie mae and freddie mac that have existed in conservatorship. as i've said publicly before, i am committed that we have a long-term solution to housing and that these are not controlled by the government for the next four years. and also, looking at fha as part of that. i'm concerned that fha has gone from 10% market share to 20% market share and has displaced proper bank lendingment community banks know how to make loans, they should be encouraged to make loans and keep them on their balance sheets and not forced to make loans and turned to securi securityized or fannie mae and freddie. >> and 40% of the banks in oklahoma no longer make mortgage loans, 40% and rising because of the qm rules put on them. that's very toxic for these communities. >> senator manchin. >> thank you, secretary for being here. the national debt almost 20 trillion dollars, no end in sight. 2027 we'd have an annual debt of 1.5 trillion and i know you all have worked on a proposal, a tax proposal which i agree wholeheartedly. i'm concerned about the seriousness of working

congress created fannie mae in 1938 and thank you in 1970 and for years, many are institutions presently preserved their core mission of enhancing availability of credit for housing. in the 1980s, spinning friday helped facilitate developing a securitization market. they purchased and bundled mortgage loans and sold the resulting. fannie and freddie guarantee payment of principal and interest on the nds and with this guarantee in place, investors took the risk of changing interest rates in the gse is coming to the risk of defaulting on the underlying mortgages. thanks to the growth in certain the categorization chemistry and freddie had dominated u.s. housing finance system late 1980s. this precrisis system did his job for many years are promoting standardization, structuring security with a broad range of investor risk appetite in guaranteeing sunni and freddie brought greater liquidity to mortgage purpose and made mortgages more affordable. the system ultimately failed due to fundamental flaws in its structure. in the early days of securitization, the chance that gse would fail to hono

right now we have fannie mae and freddie mac that is existed in conservatorship. as i've i have said publicly before and i've committed that we have a long-term solution to housing and these are not controlled by the government for the next four years and also looking at fha is part of that. i'm concerned that fha has gone from a 10% market share to a 20% market share and has displaced proper bank limits. community banks know how to make loans and they should be encouraged to make loans and keep them on their balance sheets and not force them to make loans to be securitized to turn to fha are fannie or freddie. >> i would agree it would protect the economy what's happening within that thing. 40% of the banks in oklahoma no longer make mortgage loans anymore, 40% and rising because of the qm rules that have been put on them. thank you. >> thank you madam chair. thank you secretary for being here prefers all the national debt 23000000000000.100% of gdp i think is projected by 2027 we have an annual debt of 1.5 trillion and i know you all have worked on her tax propo

high level of student debt and yet it means consumers will be saddled with even more debt but fannie mae'smist claims the risk to the system is still low. >> in this case, we're not changing the underwriting criteria and we believe that the initial increment of risk when making that change is very small. and given how pristine credit has been post-crisis we don't feel like that's an unreasonable risk to take >> but others argue that the two together will increase the potential for more mortgage defaults, and possible foreclosures yes, we are near record low default rates right now, so maybe there is some room for risk >> all right, thanks, diana. check this out, we're just talking about it, and the aftereffects >> you were talking about the aftereffects >> i was, before it even happened i was talking about the aftereffects because i think, i just don't know about this whole contest, it reminds ---ive seen it, is it in the movie "stand by me" remember they had a pie eating contest. it's just grotesque. the nathan's hot dog eating champ, is yet another victory, under his belt, so to speak, j

the v.a., the postal service, fannie mae and freddie mac are bankrupt. we talk about the obamacare failures and the great america's war on poverty. i want to remind everybody. let me just close with this. i have heard tonight this is a reckless action, the new policy. i have heard new testament examples of how to take care of your brethren, mr. president. it's shocking to me that somebody on the other side would say that when they know these statistics of what they have done. eight million poorest people in america have been fined $1.8 billion. half of them make under $25,000 a year. yeah, that's taking care of your brethren all right. i'm embarrassed. we can fix that. i believe -- we've heard the rain of devastation, no one is helped by this bill. it's a reckless act. here's the one i love. we want to work with you. we want to work with you to help fix this thing. just a year ago, mr. president, i didn't hear any speeches in here. i don't think you did either on that chair where anybody on your side even ook nodged there was anything wrong with obamacar

. >> so given the of past experience of the gse do you agree your, that fannie mae and freddie mac should not be reprivatized as privately owned as the government backed institutions?. >> implicitly?. >> in other words, under any circumstances to be reprivatized as privately-owned and government-backed?. >> if there is something it should be explicit and pay for or should be very clear there is an implicit government backing. >> the chair now recognizes the gentlemen in the dashing pink suit and from misery. [laughter] -- missouri. >> thanks for being here. with a democracy once those rules for politeness but in that regard the ranking member was talking and i am simply hoping that as we move along that you would respond to letters of communication. >> it is impractical for you to respond to every letter that we send it to you with each member on the democratic side. so i am just hoping in the future that the legislators have responded in a timely fashion. >> unless you want to respond to that?. >> first of all, we have over 58 we have responded to that we will fully cooperate with you to

they were eventually prosecuted for defrauding fannie mae. what is tradeshow the book syria have a tiny regional bank surrounded by all of these behemoth institutions that later settle for billions of dollars for committing crimes to massive scales but not criminally prosecuted. that's because we have this doctrine which is too big to fail. and too big to jail. we have openly said people a formal attorney general, eric holder have said they were reluctant to prosecute certain companies because they're worried about the collateral consequences of what it might do to the larger economy. the congress is therefore afraid to prosecute a big bank because were concerned it will upset the economy, that means you have to be small enough to be able to prosecute, right? that's what happened. they found a bank that was small enough to prosecute. so they indicted them. very recently there found not guilty so it's an amazing story. i recommend everybody watch the movie. it's an uplifting story. >> on july 9, 2013 you're in the courtroom when junior was the

so right now we have fannie mae and freddie mac that have existed in conservativeship. as i've said publicly before, i'm committed we have a long-term solution to housing and that these are not controlled by the government for the next four years, and also looking at fha as part of that. i'm concerned fha has gone from a 10% market share to a 20% market share and has displaced prove bank lending. community banks know how to make loans. they should be encouraged to make loans and keep them on their balance sheet and not forced to make loans to be securitized or turned into fha orphany or freddies. >> i would completely agree they can keep it on their books and that's a safe way to protect the economy and what is happening within that bank. 40% of the banks in oklahoma no longer make mortgage loans anymore, 40% and rising because of the qm rules put on them. that's very toxic for those communities. thank you. >> thank you. senator manchin. >> thank you, madam chairman, and secretary for being here. first of all the national debt is almost $20 trillion now, 100% of gdp and

those that pose a success systemic risk to our economy and dodd frank came up short orn reforming fannie mae and freddie mac. but gutting dodd frank and rolling back the clock isn't the answer. the answer lies in democrats and republicans working together in a bipartisan way toy continue to improve the sacht and soundness of our financial system. i look forward to discussing these and other issues with you today. thank you, mr. chairman. >> mr. quigley. i'd now like to remembering nieds chairman of the full committee. >> thank you for the time. i also want to welcome secretary mnuchin to the committee and you fill some historic shoes. good luck to you mr. secretary. we look forward to your testimony and hearing your frank and candid views on many issues, some of which have already been brought up. today's hearing spart of a process we follow to determine the best use of taxpayer's dollars. after all the power of the purse lies in this build rg not elsewhere and it's congress's obligation to make spending decisions on behalf of the american people. there is quite a lot of focus at home on the

second, fannie mae and freddie mac are increasing the debt to income limit from 45% of your pretax incoment on debt to 50%. and that's due to today's high level of student loan debt >> in this case, we're not changing the other underwriting criteria and we believe that the additional increment of risk for making that change is very small. and given how pristine credit has been post crisis we don't feel like that that's an unreasonable risk to take. >> some argue it may loosen in some spots but tighten in other others lots more online back to you guys. >> all right thank you very much. >>> you know this. it's been a good year for the stock market but did you know it's a better year for investors and home builders? a group of those stocks up 28% this year. kb home big out west up nearly 50% year to date because we know you can never lose money taking a profit, is it time to take some money and run away megan mcgrath and joins us now we always talk about when's it time to buy and never talk about when's it time to sell should we sell some names? >> well, that depends. i think investors shoul

he did there former treasury official involved with the g7 as well as reforming the financials, fannie maeddie mac, a trained lawyer as well as at the carlyle group. he is advocating change to dodd/frank, wrote an op-ed in t "the wall street journal" about breaking up big banks and criticizing low interest rates at the federal reserve he said, years of near zero interest rates have led to a rise in speculative positions as all financial institutions find themselves under intense pressure to seek adequate returns. how much that matters now that he's at the federal reserve is raising interest rates is unclear. how much change he alone can effect at the federal reserve. can he propose ideas but the full board of the federal reserve has to vote on changes that he would propose. back to you guys. >> proving actually not so controversial pick to be the first-ever vice chair bank regulator at the fed. >> yeah. >> steve, thank you. >>> mean tile, the senate -- we want to move on to health care possible changes to the health care as the bill continues to stall, following their holiday recess for mo

after the housing bubble, after fannie mae, freddie mac bailouts, after everything, the democrats wanting in 1985. the reason is because millennials are not coming into the market and merely half live with their parents, that's up from a third in 2004. ashley: they are not sold on home ownership. after the financial crisis and everything they saw what happened to a lot of people, maybe they want to spend it on experiences instead. stuart: in my opinion, what a mistake. first thing i did when i came to america, buy your first house. >> no matter the rate. stuart: 12 and a half percent. all right, there will be more varney after this . . . . stuart: key points pro today's program. senator grassily told us there will be tax cuts by christmas. item two, amazon may be thinking about a messaging app, may be coming up with competition for blue apron. blue apron in the doldrums, way down, below its ipo price. my time is up. neil cavuto, it is yours. neil: thank you, stuart, very, very much. we're following those developments. we're focusing on health care delay because john mccain recuperating at

and newly unsealed documents could be a game changer in the litigation involving fannie mae and freddie york times" this morning, if you haven't seen this story you've got to, the documents show that high level treasury officials knew as early as december 2011 that fannie and freddie would soon become profitable again you have to remember in 2012 the government changed the terms to begin seizing all of the profits both companies generated every quarter and has become one of the most profitable investments, if you will, that the government has ever made as a result of that restructuring they've called it a restructuring. some of the creditors have called it a robbery. >>> and dunkirk conquering the box office on his opening weekend. christopher nolan's world war ii film earning an estimated $50.5 million in north america, bringing it total to $106 million worldwide. according to comscore the warner brothers movie getting a boost from imax screening which accounted for $11.7 million of the domestic release new release girls trip finished second the r-rated comedy from universal bringing i