fha backed mortgages. this results in downward bias loss projections. work initiated some two years ago with joe tracy, executive vice president and senior adviser to the president of the federal reserve bank of new york, suggest this bias may be highly significant. while is sounds like a narrow technical issue, the dings of borrowed performance and projecting mortgage performance is of highest significance. in recent years, the streamlined program has been in high demand. this this program, fha backed mortgages can be refinanced to prevailing lower rates without any new underwriting. i regard this as an excellent program. the problem is not with the program, but rather with the actuary report treating each such refinance as if it extinguished fha's insurance obligation. in truth, there is no cancellation of the underlying insurance, and little, by the way, of additional fees to fha. by lumping refinancings together with prepayments on which the insurance obligation is extinguished, for example, following

>> that was typical before fha. those are the types of terms. >> fha instituted the 30 year mortgage retake is a given. they instituted the idea of limited downpayments. is that a fair assessment? i am not against the private market but that is what the private market did when there was no government involvement. they disallowed most people in this country, of the 7 million mortgages you have, very few of them would have been able to put to 56 -- 50% down. very few of them. that is why home ownership has gone up. i do not think anyone has the tenacity to suggest it should go to 30% before the fha. all of this discussion about doing something wrong is ridiculous if you believe, ownership and middle-class go together. i guess i do. those who don't should turn to their own constituents and tell them to rent. the other thing i am concerned about, some of the issues relative to the capital requirements. i think it is overdue and well done to tie down payments and other requirements to fico scores. i think it is a good th

to the fha and their taxpayers? >> it's a very important question, and we were very concerned when we came into office that risk management was not strong enough at fha, that we had not taken sufficient steps to make sure that we weren't going to get those very same sub prime lenders that had caused such damage to shift over to fha, and so we appointed the very first chief risk officer in the history of fha, created a whole risk management organization under that chief officer that has taken important steps. we instituted a whole set of underwriting changes, improving the quality of our book, and we've also taken substantial steps to increase enforcement. i mentioned more than 1600 lenders we've excluded from doing business with fha, more than four times the number of lenders that the prior administration had penalized in its entire eight year, and so we've taken a whole series of steps and others that are critical along those lines, and i really do think that's a big reason why the performance of our loans have bee

indeed, about fha's volume grew dramatically during this crisis, in 2011 fha loan volume was down 34%rom its peak in 2009. fha's current market share of mortgages is 14% and declining for the first time since 2006. during these uncertain times as we carefully manage the balance between helping the market recovered and working to bring private capital back, this represents important progress. and so, mr. chairman, while none of us can predict what the future will hold, we do know is that these new loans we are making are the strongest in fha history. but given the continued fragility of the market we must continue to be vigilant and prepared to take additional steps to protect the taxpayer. as it has been since the outset of this administration, that remains our goal today. thank you. >> thank you, mr. secretary. mr. secretary, the obama administration's white paper, and you for i think to that without naming it, reforming america's housing finance market that was released in february, indicated that the goal to encourage a return of private capital and reduce the risk of american taxp

be given fha reform bill last year.i believe it didn't make another through some of the ideas in the bill contained would be useful in helping to alleviate the situation. changes current and prior is like tightening the standards and increasing premiums enhanced enforcement i think they are in a declining situation and asked if heard how it acco my voice a bailout to the fha is something intolerable to the american people in this congress. are are they to thank the chairman for holding the harriman. >> thank you >> ms. maloney for two minutes. >> thank you, mr. chairman. and ranking member. i am really honored to welcome all of the panelists today and particularly to welcome secretary donovan and say that new york is so proud of you. thank you for your public service to our state and city and thank you also for your public service for a nation. the fha represents a critical leg of this tool is housing finance and i think it is safe to say in the wake of the most recent financial crisis we are all concerned about the fha

>> yes, again, fha is insurance. private lenders are actually the ones originating the fha loans. >> now most of them today are originated with banks, is this correct? >> yes, financial institutions, banks are certainly -- >> the banks do would -- banks benefit from it. they do not do it for free. there is a loan origination fee. >> certainly. >> banks then hire people who did this type of work. >> correct. >> my point is that there is a broader impact on the economy than just the person buying the home. the bank benefits. realtors benefit because realtors help persons by home. they assist with the home buying process. purveyors of products, they then it that when a home is built, and by the way, builders benefit because they will build more homes if homes are selling. washing machines, dryers, stoves, carpets, all of these things go into homes. they benefit. the benefits go far beyond the simple purchase of the home. that is actually not the genesis of the profit, because the constructor of the home, and in storm --

it sounds like the fha might be letting servicers off the hook for breaking fha rules and failing to work with borrowers to keep them in their home by waiving the fha's right to deny a servicer's claim and enforce a penalty for an improperly-conducted foreclosure. can you comment on this, um, and do you think this kind of settlement would be appropriate? >> congressman, i want to make sure this is absolutely clear. it is exactly the opposite. we began an in-depth investigation of the servicing practices of our larger servicers. we found significant problems with the way that they were handling servicing, specifically their loss mitigation as well as other steps, the robo-signing and other problems that you all have heard so much about. and, um, began discussions with fellow agencies as well as state attorneys general who also found similar problems with the way loans were being handled. and so the discussions that we've been having are about holding those servicers accountable for those practices. and, first of all, making sure that the taxpayer is compensated and, in fact, one of th

it is hope for homeowners and fha hardest hit fund. they are passing it out to the homeowners. >> neal, i heard that children getting the first time home owners and we didn't get it for mine. >> on one hand. this alphabet soup that the government created was a mess. and money never got handed out. obama administration did not want to get blamed for giving it to yuppies and people flipping homes . a lot of this never got started is like police on the beat and then blaming them for crime or trying to judge them based on crime that never occurred. how bad was the housing market will be? >> didn't it create inertia and there was so much incertainty. people sat on the side lines. >> it was not done by any community banker in the world. it looked at total income against the mortgage. didn't take into account student loans or car loans or debt. no one would have loaned on those two. and this is what the government put in place. very little money got out and you talk about the effectiveness of it. it is a massive waste of american money with t

was fha going to have to absorb some of that? >> while one of the issues that we look at is whether or not the treasury was going to be paying for the administrative effort of the enterprises and that was the point of contention that was never ironed out in the agreement. >> we wish you well in your job. >> thank you senator. >> senator reed. >> thank you very much mr. chairman and thank you very much is driven it for you and your staff for your efforts. you are clear in your september 23 evaluation that the fhfa has too few examiners which goes to the very basic ability to conduct their operations. can you confirm that in fact is your conclusion and second, what can they do to increase the examiners? otherwise they are underresourced and not effective. >> well, the fhfa told us that they have too few examiners, and we concur with that assertion. we have recommended a number of things that they undertake to remedy that. number one weight asks them to study the issue because as i mentioned earlier, shortfalls and examination capac

en las Últimas ete fhas hicieron poco. >> hoy en el bar de la repÚblica, estuvo el tÉcnico de las chivasÚn trueque, tendremos que consultarlo. >> quiÉn se va para colombia.? >> espero que nadie. >> o dos a hacer una temporada. >> ya salieron los primeros nombres de posibles rivales. >> nunca dicho que oponen. sea el que sea. de eva jets york le ganaron a washington. el mariscal de campo lanzÓ para 165 yardas. delantero vi tinto llega provenite del atlante y no tendrÁ otra misiÓn que anotar goles. >> gracias. al menos 10 personana resultaron heridas durante un partido de fÚtbol americano. la porterÍa se les vino encima. las 10 personas permanecen hospitalizadas, con fracturas de tobilloroducidas cuando miles de fanÁticos invadieron el campo. >> quien dijo que santa necesita trio? participaronn el evede recaudaciÓn de fondos ara concursar era requisito cacer con gracia. asta aquÍlas noticias, con gracia. asta aquÍlas noticias, muchas graas por acompaÑarnos.

the federal housing administration or fha, is the world's largest mortgage insurance provider.oesn't take any taxpayer money at all. but with all the trouble in the housing market, the agency is very low on cash. today lawmakers in the house held a hearing to figure out just how big this problem really is. >> you need to lay out a scenario where, you know, we have got a plan that moves us back from the brink that could lead to a bailout. >> there seems to be a pattern of deppial that -- denial that things were going to get better and we're going to turn this thing around. >> shep: but so far things have not been turned around and now, well, we may have to pay the price. ed henry is live in washington. the housing secretary dropped by today for a report. ed, are you in the queue? there you are. the housing secretary dropped by. what did he say about the likelihood of a bailout? >> sean donovan is the housing chief, he was testifying in the house. he really tried to down play it by saying it's going to take another big down turn in the housing market for there to really be a crun

the good news with the fha loan limits is that you can put down 3.5%, and that's very popular with the buyers. especially first time home buyers. >> what about apartment rental rates? how is it affecting them? >> well, what's happened in the rental market, the rental market is going up and up. >> is that so? prices? >> the prices, yes. >> oh. >> it's probably one of the strongest rental markets at this time. a lot is because some people are not wanting to buy right now. >> uh-huh. >> i think they think the market may go down more. >> what do you think? >> just forcing the prices up. >> what do you think? >> i think we're really at a good place now. >> okay. >> i really do. it's so hard to predict. >> uh-huh. >> but based on what we're seeing, your prices are good. this is the time to buy. >> all right. this is the time to buy. if you're renting, think about buying. >> you could probably pay less. >> and get a good deal. >> thank you, mary lou, for being with us. thank you for being with us. please go to jc hayward.com and also like me on facebook. like me on facebook. go to jchayward.c

to shrink the footprint these enterprises have because as long as these enterprises along with the fhadominate the mortgage market is going to be extremely difficult to bring private capital back into the mortgage market. so in fact today the american tax payers basically dominate or on the hook for almost every mortgage that's our originated in this country. and quite honestly i think the american people find that an area that they are not very interested in. i think the third thing, too, is what kind of things are going on corporate the within the entities that would begin to shrink that footprint so we do create the space but more importantly looking towards an exit strategy because long-term as has been indicated by both the administration and other members of congress that we don't think it's in the best interest for the american tax payers long term to be in this business. so i think we are going to hear testimony today from the ceo as well as their conservative about what is going on. there are some troubling things that have surfaced and we want to have an opportunity to discus

my sense is i do think they are very open to dealing with fha in a legitimate way.concerned about that, and i think having a nominee like this is coming forth is a very good time to talk about that. i don't know if the chairman wants to respond, but to me it is an important issue that we have left undone. and again, i'm going to vote her out today but may hold on the floor until i get some indication as when they're going to do with it. >> anyone else? we will now have a roll call vote on the nomination of mr. and told to be assistant secretary, u.s. department of housing and urban development, the clerk will call the roll. [roll call] [roll call] [roll call] [roll call] [roll call] [roll call] [roll call] >> the nomination is hereby ordered, reported to the full senate. in addition to the three nominees that we have out of the committee today, we're also waiting more action on bloomberg to be the fdic chair, and mr. tom, a comptroller of the currency. it is my hope with your support, senator shelby, that we will be able to confirm mr. honda, mr. gruenberg and mr. g

to purchase a home, there are still more challenges lenders are requiring additional restrictions, fha has restrictions, fannie mae has restrictions and your lender that you are working with may have additional restrictions. anticipate banks will release more foreclosures into the markets and they say this will likely bring home prices down even further in 2012. >>jacqueline: this morning we saw a fall out there and it is expected again tomorrow. we will also see cloud coverage as the storm passes to the north. temperatures are in the low 40's and upper 40's depend on where you are. we have 42 in concord, 41 in oakland and 41 in san jose. throughout the day, temperatures will stay on the cool to mouse side.-- mild side. down in the south bay we have to purchase on the mild side. and the fog is scaling back on the fog tracker by 9:00 a.m.. now take a look at the clearing times for tomorrow morning. into the afternoon and in san francisco, we have 10:00 in redwood city, 11:00 in concord, and after it clears, we will see mostly cloudy conditions but will we see any rain? i will have that

lee is fhas not given a time li for how long he'll give the protesters. he says it's an all or nothing deal. protesters have been camping out for two months. a looming budget has been slashed by more than half. damien trujillo joins us live where the unions will hold a news conference later today challenging city leaders. anger is certainly building over this. >> a lot of anger 689 a huge risk to the unions and city halls. the mayor would ask them to declare a fiscal emergency at tuesday's city council meeting. now this is urging the city council member to hold out. they painted a bleak picture for the city, saying it would increase by $160. now they sa they was too high. the san jose deficit is less than 40 million. i'm joined by jim with police union. you're not a very happy man this morning. >> no, we're not. this is one of the worst spots i've had. it's about a leadership emergency. >> how can the city work with thedownon if there's a new trip? >> we sent over a revised proposal yesterday that brings our retirement numbers and our retirement number ba

so, all of the banks bring all of their businesses to fannie and fedie or the fha, so people are raises, why are they sponsoring the conference and wining and dining the bankers because the bankers are giving them all their business because they're the only game in town. >> i think, have they lost their minds? $640,000 in this environment, and is a understand it from the reporting, it was to listen to the land chicago, former governor jeb bush. >> david axlerod. it was a tony event. and not only did fannie and freddie send lat of their workers and executives to attend, they also sponsored the event. so $140,000 out of that amount was them sponsoring the event. >> what did we as taxpayerses got out of this? >> fannie and freddie might be better informed. >> informed of what? they don't have to compete. there's no competition so they don't have to be hugely informed. >> you can see an argument they needed at least one or two people there to gather what is going on, they had dozens of people there, and frankly, because they're the only game in town, the bankers might have held the conferen

the fha, like other federal agencies, it is in serious trouble, underfunded. an independent evaluation said there was a 50% chance they will need a bailout costing between $50 billion and $100 billion. we were very concerned about the lack of vision to change the course of the fha, and in fact appear to be of the opinion that more of the same is a way to move that agency ford. i oppose her nomination. i think we need people in the administration with a sense of urgency about the need to turn things around, reduce our debt, and avoid future bailouts. she does not appear to have that sense of urgency, so i urge my colleagues to oppose her nomination. >> mr. chairman, i had heard of the concerns, just about the insurance premiums that fha is charging what the losses. i had a conversation this morning with her and secretary donovan about the same issue, and i plan to vote her out of committee, but i will say that i am distressed, up frustrated, embarrassed that we have not yet dealt with the issue of gse's and housing policy as a committee. what i may do is hold h

. >> clearly i don't see the fha program and as credit guarantee programs will certainly assist. one of the things congress could do is make determinations about adjusting the mission and the potential market scope of those programs and leave the rest private sector or go further and say in addition to the fha there's some other portions that will have an ultimate government guarantee as a career as a little servant is over time the credit guarantee programs get a little hard to manage and keep the pricing associated with the risks that are involved so it is a challenge but on the other hand we have seen the private sector can be challenged and assessing the credit risk as well. >> thank you mr. chairman i've often asked the question what went wrong and when did occur your the first to publicly answer the question i've been asked he said 2005 to 2008 the bad loans were written i'm assuming both sides that fix the problem that occurred between 2005 to 2008, is that state the fact? >> i've always tried to engage somebody and nobody would answer. the other question was raised by max

whether rain or snow, fha crews have been out responding. yes, seven inches out in garrett county. three inches in allegheny. two inches in washington county. areas west certainly we've been out salting and plowing throughout the night. roads there are shaping up well. of course, out there, they've been dealing with snow since october. so, they're a little more used to it than we are here. >> all right, lor laura rackowski, thanks for being with us. >> thank you. >> today, occupy protestors here in d.c. are now taking on one of the district's causes. >> this follows a day where they tied up the city in a protest against big money and politics. >> surae chinn is live at mcpherson square with a look at what's happening today. good morning. >> good morning. it is quiet in the tent city at mcpherson square. a lot of the protestors are asleep. had a cold, cold night after a full day yesterday. and potentially, a big day today because three of these protestors will be launching their hunger strike. they are refusing to eat anything until d.c. gets its full voting rights. well, i talked a

who have to pay for the $33 billion extension because it comes from home loans to fannie, freddie and fha00,000 loan, over ten years, you're going to have to pay a fee or penalty to pay for this payroll tax cut of almost $2,000. double that for the $400,000 loan. you're going to pay $3,600. in a way, are we paying for a tax cut by creating a new tax/fee? >> the problem is, gregg, we're not paying for anything. the debt is over $15 trillion. we're not paying for anything. we're borrowing it. we are mortgaging our future. when a republican is in the, who the democrats say this is catastrophe. but now that a democrat is in the white house, we hear nothing about the debt. at least from them. we can't go on like this. nobody in the world behaves like this. all these people out buying their christmas presents are the last -- at the last minute, when the bill colts due in january, they got to pay for it. only the government gets to spend forever. >> gregg: yes, we should all be mini government. thanks very much. cal thomas, doug schoen, happy holidays. merry christmas. >> thank you. same to you.

most people who buy homes or refinance beginning next year, and you do so through fannie, freddie or fha. nine out of ten mortgages go through those agencies. and it will add about 17 bucks more a month to a typical person who buys a $200,000 home or refinances that much starting the new year. $180 more a year. now, the fee will not apply to those of you who currently have mortgages unless you refinance. supporters in congress and the white house say, they are doing this in part because they want to get rid of fannie mae and freddie mac's huge influence in the mortgage market. just this week the sec sued several former execs of the taxpayer bailed out insurers, backed by the government. and the rub, the tax cuts lost only two months and it will take ten years for this fee on home buyers and refinancers to add up to the 36 billion bucks of tax cut so far with cost. so saying it it pays for extext of the payroll tax cut is definitely a special kind of math and somehow those on capitol hill specialize in and doesn't make much sense outside of the beltway and the bottom line shall the money

the fha extending anti-flipping regulations through 2012.t. >>> if you're in the market for an apple ipad 2, you might just want to hold off buying it for about a month. according to digitimes, that loves to predict this stuff. apple is planning to introduce two new high-end versions at the end of january. the price of the ipad 2 is going to be lowered to compete with amazon's kindle. >>> next, some new york city muslim leaders are boycotting an interface breakfast this morning. >>> "american morning" is back and we will see you right after the break. 01x [ female announcer ] splenda® no calorie sweetener is sweet... and more. if you replace 3 tablespoons of sugar a day with splenda®, you'll save 100 calories a day. that could help you lose up to 10 pounds in a year. and now get even more with splenda® essentials, the only line of sweeteners with a small boost of fiber, or antioxidants, or b vitamins in every packet. just another reason why you get more... when you sweeten with splenda®. ♪ when you sweeten with splenda®. what is it about tak

there's a lawsuit now on be fha of 150 million people. good chance you're one of them. a good chance there's a secret program in there that's tracking every key you use. stay with us for that on this "cnn saturday morning." [ man ] pro-gresso they fit! okay-y... okay??? i've been eating progresso and now my favorite old jeans...fit. okay is there a woman i can talk to? [ male announcer ] progresso. 40 soups 100 calories or less. [ electronic beeping ] [ male announcer ] still getting dandruff? neutrogena® t/gel shampoo defeats dandruff after just one use. t/gel shampoo. it works. neutrogena®. >>> beautiful shot. what you're seeing there, folks, is the live picture on the deck of reynolds' miami home. that's where you were. >> never have times to go down there enough. snow drifts, et cetera. the staff is having a good time. >> we have these pictures out of new mexico. snowstorm, new mexico, quite a mess. what's going on out there? a foot of snow? >> there's going to fw a foot of snow, but in the highest elevations. if you're a skier the wind's going to be too strong. wha

this is only people that are going to buy homes or refinance homes through fannie or freddy or fha.is nine out of ten mortgages. the white house says what they are trying to do and congressional leaders are trying to do is get people away from fannie and freddie and move them toward privately backed mortgage companies. so many people go to fannie and freddie. >> gregg: let me do the math here. this my kind of math. if you have a $200,000 loan per year you are going to pay 180? double it 360. is that the kind of incentive that would make people want to go to the private marketplace for loans as opposed to fannie and freddie? >> what it really does, but the payroll tax cut is supposed to help the recovery. one key to the recovery is the housing market. what you are doing here is adding on to your mortgage. essentially, this adds on to your mortgage and then your mortgage company takes it and sends it to the treasury. the housing market is in a shambles. this is not going to be the incentive for home buyers and refinancing. >> gregg: payroll tax cut on social security to put more money

consumers were paying interests on fha mortgages after the mortgage is paid off, and it could be real money back in people's pockets, it would be money taken away from the bankers. who in your office can i talk to to get this revitalized and maybe attached to one of these bills that's going through now? >> guest: you're talking to me. my number's 202-224-3643, give us a call, but i know of no lobbying against the proposal. >> host: next phone call, lyle, an independent in minnesota. go ahead. >> caller: yeah, good morning. i would respectfully disagree with one statement the senator made, and he said the capital gains tax is from investments. back in the '80s and '90s, the high-paid executives started receiving bonuses in the form of stock options. they would write these bonuses up, and they'd pay, they would get four or five million dollars a year in salary, but they would probably get 80, $90 million in capital gains from those bonuses that they were cashing in in the form of stock options. now, a bonus is something in addition to your income, and they should have been taxed and sho

billion and it's going to be paid for with fees charged to borrowers on freddie mac, fannie mae and fha of homeowners in america? >> well, these are fees that will be collected over the ten-year period. in other words, you're not going to collect all that amount -- stphaoeut still hurt gregg: it still hurts them. >> i want to point out again you don't want to do that in this particular economy. i think both side on a bi-partisan basis agree that the fanny and freddie fees should reflect the risk that those institution are taking. many of your colleagues have reported that fanny and freddie because of the guarantees they provide now actually allow people to borrow without reflecting the true costs of the risk to the taxpayers. gregg: i did the math on this thing, have you have a $200,000 loan you'll pay $180 per year more. if you have a $400,000 more, 360 more dollars per year. look, aren't you cutting a tax by creating what is essentially a tax or fee? >> what we're doing here is trying to make sure that we don't get into the kind of situation that we had before. i think it's important

caller: president obama has created programs for fha loans, for business loans, for college tuition.he only problem that i see that he needs to deal with is the war that we have over in afghanistan. we are capable of going into any country and taking over. we have the technology. we are the superpower. i think that obama would make another good four years. i will vote for him. that is all that i have got to say. host: we appreciate the call this morning. dale, what matters most to you in a candidate? caller: integrity. definitely how smart in situations -- i think that our president has proven himself over and over and over again, how strong, how determined, how smart he is. let's face it, the gop, i call at the barnum and bailey circus. because it is a circus. not one of them are qualified to be a congressman or woman, let alone a senator or president. we all know it. it is a joke. the gop led america into a ditch to the size of the grand canyon. we all know that. the republicans did that. and they handed over the biggest pile of scrap in racine. -- pile of crap i have ever seen. th

you do it through any of the government sponsored organizations such as fannie mae, freddie mac, or fhartgages goes through those three government-sponsored organizations. so it's just about everybody. you're going to face higher fees and that's all because of the payroll tax cut. what's really interesting about this is the payroll tax cut costs about $35 billion. just for the two months. but this will take about ten years, the mortgage fees, take about ten years to pay for those two months. so it's a very interesting kind of math that lawmakers use. >> jamie: interesting or expensive? what happens if they have to continue it -- i guess they won't, two months is two months and that's it. how are we going to pay for other things? could we see our mortgages being tapped into for other government spending? >> yeah. and it comes at a time when housing is still in a shambles, when the housing market could be very well the upswing of the housing market could very well be key to a recovery here in the united states. in one sense, the white house and many legislators are saying, we need a payro

security trust fund then why is it that the 33 billion that will be taken from freddie, fannie and fha goes into the general fund and not into the social security trust fund to pay for the cost of this which is $33 billion for two months? >> right. it is part of that robbing peter to pay paul. you're exactly right, gregg. what many of us want to do is get to more accountability and transparency in the budget process. regardless of whether it is dealing with some of these affiliates like fannie and freddie or you're dealing with out of control bureaucracies like the epa or these megabills like obamacare that we're trying to defun and repeal. but what we want to do is get to more transparency so when government takes your money, you the taxpayer can follow where that money is being used and how it is being used and more accountability through this entire process. gregg: but look, 10 more months will cost roughly $100 billion. how are you going to pay for that? are you in favor of, for example, freezing the pay of federal workers through september of 2013 to pay for it? that is one of the

people who buy homes or are refinance beginning next year and you do so through fannie, are freddie or fhad about 17 bucks more a month to a typical person who buys a $200,000 home or refinances that much starting the new year. $180 more a year. $360 a year for a $400,000 mortgage. now, the fee hike would be built into the loan and the money would be sent to the treasury. the fee will not apply to those of you who currently have mortgages unless you refinance. but you may well be asking the question why would lawmakers choose to pay for a payroll cut with a fee on home buyers? supporters say many lawmakers and the white house want to get rid of fannie mae and freddie mac's huge influence in the market. here is the rub. the tax cut lasts two months. it will take ten years for this fee on home buyers and refinancers to add up to about the 36 billion bucks the tax cut will cost. so saying it pays for the extension of the payroll tax cut is definitely a special kind of math that somehow those in capitol hill specialize in but that doesn't make much sense outside the beltway. and bottom line is

country to a middle-class country after the second world war and that was due to the prevalence of fha mortgages, veterans affairs mortgages with zero down payment which helped about 4 million americans to buy a home with zero down payment and they have become successful homeowners because they were able to stay well within their financial budget. this is what we need to assure, a role for the government, because the government process, even fannie and freddie, when they were a government corporation, they played a very quiet background role. the fannie and freddie problem burst open because it had the perverse incentives of private profit while having a government backing for their following. right now, since fannie and freddie have been taken over by the government a couple of years ago, in essence they are now back to government corporations and they are making internal profits on recently originated mortgages. as long as they pursue the policy of a very simple mortgage products and affordability, it will be working fine. host: lawrence yun earned his doctorate from the university o

caller: your co-sponsored dealing with excess interest on fha mortgages. do you remember that? guest: i do. yes, sir. the senator seems to a drop in the interest in this, even though there is an article in " the washington post" about this. i have a feeling the lobbyists have got hold of him on this. they are paying off the mortgages. if there were real money in people's pockets, who in your office can i talk to to get this revitalized and maybe attached to one of the bill's going through? your talking to the right guy. i know of no lobbyists against the proposal. host: next phone call. lyell an independent in minnesota. caller: good morning. i would respectfully disagree with the statement the senator made when he said the capital gains tax is from investments. back in the 1980's and 1990's, high-paid executive started receiving bonuses in the form of stock options. they would get $4 million per year in salary, but they would probably take $80 million in capital gains and those bonuses that they were cashing in in the form of stock options. of brown -- bonus is something in ad

federal housing administration, we have withdrawn the approval of over 1600 lenders to participate in fha programs. that is why we created a consumer financial protection bureau, with the sole mission of protecting ordinary americans from the abuses we are discussing today. today's announcement builds on these efforts. the purpose of this proposed rule is simple, to strengthen the tools we have to pursue housing discrimination based not just on the intent to discriminate, but whether the facts show that it happened. he as you heard the attorney general say, it is the largest fair housing discrimination settlement in the history of our nation. he will not solve all the problems this housing crisis has inflicted -- it will not solve all the problems this housing crisis has inflicted on our country. we push to get more help for borrowers, and wyatt proposed as part of the american jobs at a $15 billion project rebuild that would target construction jobs and renovation to the hardest- hit neighborhoods by foreclosure. all of these actions reflect this administration's believe as president oba

administration, part of hud, we have withdrawn the approval of over 1,600 lenders to participate in fha programs, more than four times the number during the entire tenure of the prior administration. and that's why we created a consumer financial protection bureau, the sole mission of which is to protect ordinary americans from abuses just like those we are discussing today. today's announcement builds on these efforts, as with the so-called disparate impact rule that had recently proposed that the purpose of this proposed rule is simple. to strengthen the tools we have to pursue housing discrimination based not just on an intent to discriminate, but also on whether the facts show that discrimination occurred. of course, as historic as this settlement regarding the actions of countrywide is, indeed, as your attorney general holder say, it's the largest for housing discrimination settlement in the history of our nation. it won't solve all the problems this housing crisis has inflicted on our economy. that's why this administration continues to push to expand refinancing to more homeowner