was fannie mae, freddie mac involved in any settlements?>> let me verify -- i'm a believer above did not litigation. >> what i'd like you to do that ask your counsel as well to take a look at the role of lps and all of this. there was one platform, a technological platform that is good when things are going smoothly, but was very hurried in foreclosures in those kinds of things and i just ask for you all to take a look at that. i would be remiss if i didn't bring up remix for you to say that is an area where if you exercise would be a profitability to fannie mae and freddie mac. without a yield that. >> appreciate your time is growing. i do have something i'll want to talk a little bit about lpi, lender placed insurance. that's kind of a technical in the weeds. but there's been a push looking at trying to come up with one lender, one underwriter, one featuring group. i believe you had put it the brakes on not operation around that movement towards said. d.c. any value and select and vendors versus having a free-market system data? >> congre

happened of course the taxpayer was shifted all these chileans of dollars of mortgages on to fannie mae and freddie mac. so the headline reads max buying a fannie or freddie foreclosure chances are it was a meth lab so all these people were buying homes that were meth labs and freddie mac. and fannie mae are not actually telling them that they were former meth labs now this is dangerous there are lots of chemicals used in the production of crystal mouth and also we get knocks on the door from people looking for their next ten. mark carney incoming bank of governor. or what isn't he get a letter get jinnee really a for not to be smoking think bank of england governor office mark carney fannie mae shacks or methamphetamine. labs that people cooked up the drugs they needed to give them some kind of mental relief from their government stealing their bank accounts from their bankers terrorizing them on a day to day basis being resold on the government meth lab shack market even a for a nickel on the dollar could have all happened could all be sustainable to all real junk it's all smack it's william burrough

fannie mae jack. and a right freddie mac. won't take any responsibility for misleading us about the safety of our home and attorneys just tell us that we should have read the fine print tell that to my son simply walking away will not only negatively impact our credit but would enable banks to continue this trend of severe negligence now this idea of just so read the fine print i think that's probably that's a lesson for the total economy and political economy at the moment there's probably a fine print that has been written into the constitution for example that's mainly what i was thinking fannie mae why not you read the fine print of the constitution you're basically. engaging in heinous acts of tyranny against your fellow citizens . you know that's the fine print of the constitution fannie mae but they may have to get out of jail free card fannie mae's supplies crack to congress the department of justice tara calder barack obama they all smoke crack they'll shoot heroin in their eyeballs they all read william burroughs on

privatizing fannie and freddie. >> with wages increased, the american workmen share the boom of the prosperous economy. >> home ownership is the american's dream. congress created fannie mae and freddie mac to finance mortgages at taxpayer expense. the two are billions of dollars in the red. >> the biggest problem with fannie mae and freddie mac is that they are financial institutions with a social mission. >> reporter: that social mission is to heavily subsidize mortgages that don't meet qualifications. >> lowering income homes and when the housing market that was the first to go. >> they have been restricted to prime loans or high quality liens. that ended in 1992 when congress passed the safety and soundness acted that required them to promote affordable housing. >> they actually planted the seeds the destruction of fannie and freddie. >> then the clinton administration made the home ownership strategy to do away with down payments. >> you had instead of prime loans, progressively more risky loans. >> reporter: bush administration pushed home ownership but sounded alarms. these government sponsored enterprises as early as 2001. >> we need a strong regulatory agency to oversee the oper

we have the quasi--government market, fannie mae and freddie mac. we have the private securities market. all three have run into problems. the fund is technically under water in terms of coverage. we have seen what happened with fannie mae and freddie mac. we have seen what has happened with the banks. it makes it difficult to figure out the right road going forward. why will agree -- i will agree that a lot of people forget that for many years, the fannie mae and freddie mac models worked well. it worked well because the way in which we underwrote loans, we strayed from that significantly. that was the problem. host: what is the ideal? is it a hybrid of the three? is there something that might work as a model? guest: absolutely. what you see in a bipartisan study is what i have written about extensively. we will go to having a public corporation, not unlike the fdic, that provides a credit stamp only under serious or catastrophic conditions. that is after private investors have been taken out when the government would step in. i think that is the mo

reserve policies and they got deflected primarily in the housing market, specifically fannie mae and freddie -- freddie mac and fannie mae. it was destructive for housing and consumption. people don't think about it, but if you consume it and a massive overconsumption, which is one reason we have had such a hard time getting the production process going again. we have taught millions of people how to the mortgage bankers and learn new jobs. this housing, investment, the federal monetary reserve problems is particularly destructive from an economic perspective. the other thing, i don't know that we disagree on this because is because peter doesn't talk about this, but i guess i am for a more radical solution. i do not believe that it is naÏve to believe the risk being created by the system itself. it is not big banks. it's the federal reserve. what they are doing today is incredibly real to our economy. if the federal reserve is leveraging itself, then the system is risky. it is riskier today than it was in crisis. if the individual institutions cannot manage risk, i am for using market-based standard. if w

to remind people because we remind people of these numbers all the time, fannie mae and freddie mac taxpayers are still owed 88,000,000,024,000,000,000. we're hoping to get it back somehow. the good news of course is fannie mae has announced they would repay 62 billion in funds to the u.s. treasury. how likely is it though that we will see all of this money repaid? >> some of the bad news, some of the money fannie is claiming is actually coming from a fault places the irs. they have tens of billions of tax losses they should be able to write off and they claim that is paying us back. gerri: that is cheating. >> it absolutely is. the sad thing is, it is allowed under accounting rules as an asset, certainly other banks it is not simply, think it is horrible policy. gerri: this is our money at the end of the day. they should have to repay it, if i owed the government that much money, believe me, i would be forced to repay every single dime. i would be in jail. what is interesting is there are lot of attorney general's calling for him to leave office. take a look at these names. the list goes on

. >>> some other news right now, big news out of fannie mae and freddie mac. one can forget when the mortgage giants collapsed in 2008 leaving taxpayers to pick up the tab which so far has cost us all $131 billion. well now fannie mae and freddie mac are forming a new company together to securitize home loans and despite what you might be hearing about this being a positive step in the mortgage market you're watching money for the angle you might miss anywhere else. and that is this. it could end up costing both taxpayers and borrowers more. joining me in a fox business exclusive, former fannie mae executive jay brinkmann, now chief economist at the mortgage bankers association. welcome to the show. tell me what this chaes. >> thanks, melissa. good to be here. what we're looking at is the system where they take payments that people make on their mortgages, process them and pass them onto the investors who hold the mortgage-backed securities. these are antiquated systems. they haven't been updated in years. i've joked that they're outrecruiting cobalt programme

fannie mae and freddie mac are the principal enforcers of these rules. delinquencies and the false virtue. in the 292, congress adopted legislation that required cnn friday to meet what were called affordable housing goals. legislation initially required at least 30% of the mortgages had to be made to people who are at or below the median income in the places where they lived. hud was given authority to increase the quota and it did so, raising the 50% by the end of the clinton administration in 255% in the bush administration. statements throughout this. made clear the agency's intention is to reduce the underwriting standards were prevailing in the market energy make mortgage credit available to its larger number of borrowers. there is no ambiguity about this issue. it is difficult for fannie and freddie to find prime quality blockages among borrowers at or below the median income, especially when the quota had been raised to 50%. in the mid-1990s, they began to reduce their underwriting standards come accepting 3% down payment spinning to 95 and zero

can pretend you're being all sterile but this is government spending as we found out with fannie mae and freddie mac. you back that you own that debt oh well the u.k. if you add up the private debt the government the corporate debt and bank debt the u.k. economy is that has debt worth nine hundred percent of g.d.p. well as i said before it collapsed a thousand percent of g.d.p. whereas cyprus before it collapsed eight hundred percent of g.d.p. the u.k. nine hundred percent debt to g.d.p. is the economy set to collapse and again i was born should be on the boris plank above the mayor's office with a sword to his back being told either you wake up and stop bailing out your buddies or you're going to be forced off the plank and max the government will offer twelve billion pounds of guarantee covering mortgages worth more than one hundred twenty billion pounds that's ten percent of g.d.p. that's more debt that's just you just putting more debt in the situation that's financial terrorism by any definition and the plan is intended to help six hundred forty four thousand people over the next three years. a

happened of course the taxpayer was shifted all these chileans of dollars of mortgages on to fannie mae and freddie mac. so the headline reads max buying a fannie or freddie foreclosure chances are it was a mess. so all these.

already about what the government backstopping gambling in the housing market is called fannie mae and freddie mac. that's the primary reason we have a two thousand and eight bust osborne's looking at the. recent history in saying this is the worst policy ever created the modern history i'm going to do it i would do it worse i'm going to make it even more risky than they did in freddie mae freddie mac. george osborne to britain ireland wherever it was the guy co-op cyprus is as i've said a menace so mr osborne announced that the government would offer a five year interest free loans worth up to twenty percent of the value of new build homes costing less than six hundred thousand pounds from january another scheme will see taxpayers underwrite mortgages to those with small deposits including more than a million people trapped with so-called zombie loans where the fall in the value of their homes has left them unable to move again it's a blatant giveaway it's like a drunken chancellor deciding to take some money from somewhere and you know larry summers was here on the b.b.c. talking about this very

they had those without fannie mae and freddie mac said some but the difference was it did did not contain said prime mortgages because they did not permit those so their losses were tiny a very good study was done in he went to europe for the losses resulted in the deflation of their bubbles were small the main problem came from the fact they all alone substantial amount of mortgage-backed securities. >> almost to the end of our time we would like to give each member a parting shot. >> i think the book that peter has written is the need to bring in as many points of view as we can and never say the debate is done, let's go. there has been way too much of that. dog freak was created as a partisan law we are forever reforming it is no consensus was established. when will dodd/frank we done? never it was never a consensus formed to so our laws and regulatory program will forever be in flux. >> i would like to close with no warning we should pay attention to peter's argument as peter mentioned quite rapidly and before those requests are enshrined in legislation. >> i recommend you read his bo

fannie mae and freddie mac, a lot of people calling for reform including our next guest. s a former fannie mae executive vice president. he's now with aei, and good afternoon to you. thank you for joining us, mr. pinto. >> pleasure, adam, thank you. adam: when we talk about reform, it's a $10 trillion market, and they are involved in some form or another, well, with the new home loans two-thirds, and at some point have a tie to fannie and freddy. how can we change that? a lot of people think they should be out of it altogether. >> absolutely. and their regulator, eddie marco, who's the head of the federal housing finance agency testified the other day, and he's one of the more astute observers of this market being where he is as a regulator, and he said it is possible to create a liquid and deep and broad market in the united states for mortgage debt without relying on the taxpayer as we do today. 85-90% of all mortgages are guaranteed by the taxpayer one way or the other. to do that, you need to continue what has been happening which is raising the fees that fannie and fr

at the end of your tenure in the secretary's position, what is the shape of fannie freddie, fannie mae and freddie mac? have they changed? >> we'll have more to say about it in the future. while we have interest rates in the attractive place they are right now, as the president said over and over again, american families can save $3,000 if they refinance. it's good to be the economy. it creates jobs. >> reporter: he said he supported the position of his predecessors in favor of a strong dollar policy on the issue of the budget, there's a big battle over sequestration. secretary lew said he thought he heard cooler heads prevailing and seemed somewhat optimistic that a deal could be reached that would end the automatic sequestration cuts. steve liesman in alpharetta, georgia. >>> meanwhile, timothy geithner will write a behind the scenes book on the financial crisis and how he and other officials debated and worked together. crown publishers commissioned the book and made the announcement today. the book is due out next year. no word on what crown is paying mr. geithner. >>> the second report card on th

merger of freddie mac and fannie mae's bond unit.d news for potential homeowners. liz macdonald is here with how the new plans could affect your mortgages, tax dollars and not necessarily favorably. >> we've been tracking the story. what will happen they will merge into one unit. this is the first step into fannie mae and freddie mac being privatized. then they could be sold. that is what ed dimarco, the who is the overseer of fannie and freddie. that is what he wants. this is foundation for mortgage market in the future. what is happening right now, we have a housing commission, basically a panel that is advising congress to dissolve fannie and freddie. david: isn't that a good thing? >> it is a good thing. becomes a megagovernment bond insurer. here is what will happen. that government bond insurer will charge fees, dimarco said create something that could be sold off. what happened to fannie and freddie, this is the plan, turn it into megagovernment bond insurer. they will charge fees to the bank. they will not guaranteeing mortga

this will be determined by legislation that we crafts -- recrafts fannie mae and freddie mac. ie mae and freddie mac will be reformed and shape into something that will be different than what they were in 2006, 2007. the shape will change substantially. we just do not know how. host: let me read a little more. ed markey unveiled his goals. guest: yeah. that makes more sense. their operations are different than what they were five or six years ago. they contributed to the crash and subsequent bailouts. so they are going to look different. one thing i can be sure of is there will not do that again. host: susan in georgia. caller: thank you for taking my call. with both sides. compromise is what has gotten us into this problem. you wanted to give home loans for people that did not qualify for a bicycle loan. we all have to suffer for it. the system is making -setting- bar solo that now everybody wants to lower themselves to get any kind of government handout they can get. i met three people on disability because of cigarette smoking. a couple admitted they spent a thousand dollars

fannie mae and freddie mac certainly cost taxpayers money. there are moves to cut the losses here.s back on the story. why is the federal government in the home mortgage business anyway, doug? >> reporter: congress create fran fannie mae and freddie mac to allow the federal government to help finance mortgages through the taxpayer. after the housing collapse, gses they're called, government-sponsored enterprises are billions of dollars in the red. >> the biggest problem with fannie mae and freddie mac is that they are financial institutions with a social mission. lower income homes have a tougher time paying mortgages. and, when the housing market started to go under that was the first to go. >> reporter: fannie and freddie had traditionally been restricted what is known as prime loans and high quality loans. that began to change in 1992 when congress passed the safety and soundness act n 1995 the clinton administration department of housing and urban development create ad national homeownership strategy the cornerstone was to do away with down payments. >> you had now fannie and f

and the future of fannie mae and freddie mac. this is two hours and 40 minutes.[inaudible conversations] >> the committee will come to order it without objection. the chair has authorized recess of the committee. at any time, the chair recognizes himself for two minutes for an opening statement. i would like to start off quoting from our witnesses testimony. few of us can imagine in 2008 that we would be approaching the fifth anniversary of the placing of fannie mae and freddie mac in conservatorship. and has made limited progress to bring those government conservatorship to an end. i could not agree more. that is why i am determined that today's hearing will be a truly historic one. i am determined that this hearing will be the last time the director edward demarco, at or his successor, will testify for this committee. before we finally and belatedly mark of a true gse reform legislation. this is legislation to abolish fannie mae and freddie mac as government-sponsored enterprises. one that would create a truly sustainable housing policy for our economy, for tho

but two government-owned mortgage giants, fanny mae and freddie mac are not exactly following suit.ive years after a controversial bailout taxpayers are still on the hook for more than $130 billion, and washington doesn't seem to show much interest in cutting its lows. as part of our ongoing series what to cut doug mcelway is live in washington. doug. >> reporter: jon it's been five years now since the housing bubble burst. the new mortgage giants who had such a huge part in that crisis remain in deep financial trouble. the taxpayer liability for fanny mae and freddie mac had reached $148 billion and could go up to $317 billion. >> we may recover some of that money but we'll probably get closer to 200 billion before we get back to 80 or 90 billion of what it's actually going to cost the taxpayer, all in the name of doing good, no oversight, no management and a misdirected compassion for something that you couldn't actually accomplish. >> the biggest problem with fanny mae and freddie mac is that they are financial institutions with a social mission, lower income homes have a tougher

bailed out and government owned fannie mae and freddie mac teaming up in a joint company venture for eing home loans, the first step towards shrinking the government's role in mortgage finance. the new company would merge fannie and freddie's bond units and would be a separate entity spun off from those two. >>> same day delivery failing to lure online shoppers. a survey from boston consulting group says one. hottest e-commerce trends is too expennive for most americans. when would get them to shop online more, nearly 75% surveyed said free delivery. thank you, amazon. that is the latest from fox business, giving you the power to prosper lori: say it ain't so. is the "oracle of omaha" losing his midas touch? fox business senior correspondent charlie gasparino here with a look at the performance of warren buffett. >> you know, he is supposedly a great investor. i'm sure he is. he doesn't return my phone calls. people who don't return my phone calls i usually do stories about. in any event here is my little story about warren buffett. all you have to do i think when you crunch the numbe

to come out with simplified mortgage modifications for homeowners who have loans through fannie mae or freddie mac. starting july 1st, the federal housing finance agency says people who are late or missing payments could be offered a 3-month trial loan without going through a lot of red tape. however, there are concerns some homeowners who are behind on payments and mortgages and deep underwater might not be able to get help through the streamlined program. a bigger toyota highlander, a beefier engine for bentley and the battle to build more cars in north america - those are driving top stories at the new york auto show. our cover story begins with another volkswagen model to be built in mexico, and headed for the u.s. market. unveiling its new golf gti at the new york auto show, volkswagen continues its big play for the north american car buyer. as with a lot of volkswagens already, the gti will be built in mexico, where labor costs are lower than those in europe and factories closer to the consumer market volkswagen covets. "since 2009, vw business in north america has doubled. our strategy seem

gerri: breaking news right now fannie mae and freddie mac coming together.ouncing a new joint company in an effort to win itself off of government support. peter barnes has the very latest. that sounds very ambitious. is it true? >> it is ambitious and it will take a lot of effort. but the administrator of the regulator of fannie and freddie is trying to get sething going. moving the ball down the field here as congress tries to figure out how to wind down and close fannie and freddie, which as you know, have gone about 190 billion-dollar bailout from the taxpayers. everyone eventually wants to close them and get the priva markets back into the mortgage game before the crisis. to securitize the lot of these mortgage loans. it is basically fannie and fannie and freddie and fha. sinnott edward dimarco, who is the regulator is trying to get some traction on getting rid of fannie and freddie. gerri: if i understand it, they are coming together over securitization. they have to create a company in the middle that does all of that and that might be privatized. tha

find a point, t appointing a member of house of representative to be chief regulator of fannie mae and freddie mac is basically insane, for starter congressman watt took campaign contribute prug contribution from fannie and freddie, secondly, let's understand, that agency, federal housing finance agency is only 5 years old. it was created in the wake of the problem with fannie and freddie, and its job is to preserve and conserve its asset, the taxpayer money, put it on a sound footing. gerri: its job is not to determine who should get mortgages but that it continues and is sound. >> current head is edward dimarco, which has put him at laggerheads with house democrats, who in january of 2012 asked president obama to replace ed dimarco. gerri: i have to talk about this idea of getting rid of mortgage deduction, right now it is being discussed for people with very bis mortgages or second homes, a lot of wealthy people who they say are okay with that, i look at the confluence of the story, mel watt on one hand saying we have to get more loans to people who may not be able to afford them. that is what

and edward demarco will testify about fannie mae and freddie mac.live coverage starts at 11:30 a.m. on c-span3. last week, john morton testified that the releases were gone for budgetary reasons. live coverage begins from the house judiciary committee at 1:00 p.m. eastern on c-span3. >> we can take pictures of the brain with pet scans or cat scans but there is an enormous gap about moving my hand or being able to look at and process the information. we don't know how that works. with technology yet to be invented, a lot of this is going to be technology development and a lot of it will be nanotechnology. what we aim to do is to be able to record many hundreds of thousands of brain cells are the same time and be able to understand how these circuits work. that is the brain activity now that is being talked about. we don't always have a scientific plan, but it's getting to be a very exciting to put something together. >> more with doctor francis collins on c-span's "q&a." >> next, the panel looks at hiv and aids and implementing health care. >> good m

or not it worked or not the one that wait a minute there is it's america not to fail in fannie mae and freddie mac. it totally blew up it was the root cause of the two thousand and eight collapse so i just want to say what we learned from the two thousand a collapse is do a bigger do work harder and do with even more stupidity is that basically what we're saying well i don't know if i would go that far but let's take a look at royal bank of scotland and lloyds the two bailout brothers that we've already got here and the assets that they have a none of these banks in the u.k. have really delivered so you haven't had any systemic the leveraging of the european banking system and you know cyprus if we go back to that is a kick the can down the road until something some idea comes along i think the euro is a failed project there's no there's no way that you can compare economies like germany who's a powerhouse of europe to portugal italy and spain i mean beppe a grillo is a perfect example in italy right of what happens now if they were to hold a vote tomorrow he would get probably forty five percent

dennis: could a merger of the mortgage bond visit the two giants, fannie mae and freddie mac, end upit could and do you know what? the word on the street is half a percentage point at least is what the mortgage rates could go up. here's the plan right now. here is what the government at the market was saying about merging the bond units of fanny and freddie. we want to create something that could be sold and could be used as a foundation of the mortgage market of the future. so big plan underway at the bipartisan policy center. housing commission run by former senators george mitchell, martinez and former director. they want to wind up and break up fannie mae and freddie mac and turn them into a government bond insurer. this is a change in housing policy for the government and bankly the 30-year loan could go away. i mean, denmark is the only other country in the world that has a 30-year loan and here is why mortgage rates could go up. this is a five-year plan. it could happen in 10 years, it could be to the opposition but here is the future of fannie and freddie. they could charge f