>> i guess i'm trying to find out, is head influenced fha judgment is hud influenced fha in certain decision-making or if you're stand-alone and could use some tools, some flexibility with other tools, how would that be? how would that change things or what to make things better? >> again, the main thing about being inside hud is that we report up to the hud secretary. >> what does that -- what does that matter? does that change the way that you handle your decision-making? i guess if fha were a stand-alone with tools, would we serve the housing industry better and would we serve the taxpayer better? >> so i would just say, i think within hud and working with the hud secretary, there is no reason to change that. we could have some of these tools that would help us, you know, as the fund and as an agency do even better job. but i don't see any reason why it would be necessary to do that outside of hud. >> okay. thank you, mr. chairman. i yield back. >> would yield back to the german? in the second inning, and as a sign of respect to the gentlemen of connecticut i wanted to respond to something that

fha should equal qm.m should equal fha. >> and every fha loan should -- >> were you going to say something? okay. as we think about the different bills in congress and the debate that congress is going to have to tackle, you think about the average consumer trying to boys in on this subject. it's a completely complex subject just for the industry alone. and all consumers understand is credit is overly tight right now. what are some things we can be doing to loosen up credit? >> i think a big step in the right direction would be the reps and warrants clarity, the indemnification click. that aspect of providing better direction, more practical direction, not some nebulous concept of materiality that's causing algae -- that is a causality of the. lawyers can debate that but having to find operational standards in such a fashion that if you're a lender and you manufacture mortgage loans you have a clear sense of what you have to do, and did you make a mistake in that journey it's your problem. if you get the

what is the status of the fha office and fha funding in california and in particular after the shutdown? well, in california, they have offices that are nearly entirely shutdown, but this has had very little effect on new fha lending. we were very surprised to hear that. going into this, they said something like 64 out of nearly 3000 fha employees would be available, full timers. it did not sound like much, 2%, but it turns out the loans have continued to float. host: were there disruptions with people able to access things online? things like that? guest: i do not know about accessing things online. it is hard to get information if you need an exception to normal policies. it would be difficult to do those things. what we are seeing -- what i was surprised to see, is how completely computerized and automated these systems are him and not just at the fha, but also fannie and freddie. as long as they do not crash, the loans are still being issued. host: is it too early to tell the impact in terms of the processing of loans, and before that, home sales -- people going out to look and maki

for example, the fha overlays are fundamentally shifting the program.e permits as low as a 580 fico score. now, true, very few loans are made at scores that low, but many were made between 600 and 620. today because of the -- [inaudible] many lenders have an imposed number of 640 and some as high as 660. the simple truth is that overreliance on credit scores and credit overlays by lenders and investors is severely truncating any meaningful examination by those actually doing the underwriting and adversely impacting a very large segment of the population. excuse me, i have a head cold. it's sometimes hard to talk and breathe at once. although -- [laughter] in large part credit overlays are being driven by lender concern, and as you've heard david talk about, of agency putbacks. historically, reps and warrantees allowed for problems to be handled and solved most often without loans being put back. today the economics of lending is being impacted by aggressive enforcement by fannie and freddie and fha and indemnifications. the results of this are so severe

now, another area where we are eliminating confusion is in the way fha does business.artners like you have told us that we need single family documents that are easier to understand and navigate. with over 1000 mortgage lenders, housing notices, and books and other materials, we couldn't agree more, and we are taking action. we commit ourselves to having a single, reliable source of policy. that source is the new single-family housing policy handbook, the first draft section of the handbook will be available for your review tomorrow. the language will be more clear. you will be able to find what you need quicker. the process will cause you fewer headaches. we want to make it easier for you to do your good work, and we also want to hear your feedback on the handbook as we shape it into the product that you can really use. that's why we are changing our process to support the review period for each draft section before formal publication. once we've got it right, you'll be given sufficient implementation time to incorporate it into your business. i urge you to go to hud.

what is the goal of your hearing on the fha?w fha will receive its first bailout ever, $1.7 billion. basically for a government agency that told us for years they would never need a bailout. we had to have a sustainable housing policy in america, one that is sustainable for homeowners so we don't put people into homes they can't afford to keep. one that is sustainable for taxpayers, so they never again have to engage in bailouts of fannie and freddie and fha. finally sustainable for economy. we've got to get off this boom, bust, bailout cycle. regrettably, congress has been misled for years as to the true fiscal health of the fha. so we're going to have the director of the fha, carol galante, before our committee tomorrow, to try to get to the bottom of this and find out why aren't they using the tools that are available to them to make fha formore fiscally sound? a broke fha does no one any good. >> as you know, the commissioner galante wrote a letter to congress when they needed to tap this 1.7 billion from the treasury, and s

so i think that we've hit the right balance of keeping the fha credit box him for fha loans and that is an important distinction to make moving forward. we've also allowed for ending the mortgage insurance premium on top of the cost so we will keep those affordable. i think that's who the target market is. some may have a perspective on that and that is where we really have the state. >> any other comments? >> thousand mortgage lenders and 100 manuals. over and extent of lifetimes have defined what affordability is and how it can be delivered to the audience that fha wants to serve. to put another layer on that now would be to a degree to disrespect all that has been worked on, all that has been learned and modified over more than 80 years. it just seems to me as though it is unnecessary fha should equal the q m. >> so, you know, as we think about the different bills in congress and the debate that congress is going to have to tackle, you think about the average consumer trying to voice and on this subject. it's a completely complex subject for the industry alone and all the consumer

homeownership. 80% of fha its first-time homebuyers.y borrowers account for 30% of the purchase activity within fha, over half of african-american and hispanic borrowers use fha in 2012 for the purchase transaction. so what's the bottom line? as a look at our this country was the policy we have to ask, is it doing the job it was set up to do, or as a supposed crises corrections turn into actions to the detriment of responsible, qualified american families? don't get me wrong, protecting the taxpayer has to be a serious priority. you can never let it correct to what it was before. that has to be key and any policy thinking we have going forward. but the goal can't be zero risk. zero risk means zero lending and that's going too far. antedate we are a long way from that right balance. it's hard to see the light quite frankly at the end of the tunnel. every headline makes me question when does this end. sometimes i wonder policymakers collectively even know what they are doing as a collective organization. disparate impact rules conflict wi

automated system, but only about 2% of the fha's staff of 3,000 are currently on the job. hardest hit are rural borrowers depending on the government's program. that is shut down, no loans, it is less than 5% of the market but a lot of these are first-time buyers who have no lender option. one of them posted the problem on youtube. >> we have a situation with a buyer, five kids, they are homeless, we can't get back negotiation material because of the shutdown. >> reporter: and as negotiations stall in d.c., so too, does the local housing market. >> i have had buyers decide to take pause, even though they know they're going to be ultimately be paid. they're nervous, they don't know how long this is going to last, and they don't know the impact as they get out of the market. >> as the shutdown draws down, they are essentially doing no dock loans, the ones that crashed the market. all the mortgage safeguards from federal regulators go out the window. >>> and the federal work stoppage is forcing the furlough of 2400 private sector workers at the defense contractor, lockheed ma

in a 14% drop in new fha loans to buy a home between may and july. credit is so tight overall that 33% of homes purchased in september were paid for all in cash according to the realtors. that share is usually less than 10%. this as new mortgage rules that could tighten credit even more go into effect the first of next year. couple those with the settlement, and banks have plenty to fear. >> if they're going to go after you for helping the government out and taking over distressed institutions at a time of crisis, then why do you have any confidence that they're not going to go after you for some technical violations of the dozens of new rules that have come down? >> reporter: the $13 billion settlement reportedly includes $4 billion in consumer relief. sources close to the matter say details on that are still being hashed out. it would not include direct payments but could include debt forgiveness to borrowers, something the bank is already doing. >> i look at the $4 billion as just another -- a headline used. nothing really -- i don't think that's

the trouble with fha mortgages they tend to be a little more expensive for the right to put nothing down. so if you look more like va loan or rural housing service or in a rural community, those have very lowdown payments but, the fees won't be as high as fha mortgage typically. melissa: so, if you're a consumer out there looking at housing market and want to get in and buy something right now. is it smart to go with for one of loans where you don't put anything down, or are there things looking out for? for example, look at td america mortgage. on the surface, looks like really good deal. down payment of 5%. 2% of the down payment can come from outside sources. could be a gift. >> yeah. i think that in general, i guess i would caution people. i think these are really good products for first-time homebuyers trying to get into the market to get a foothold and build equity over successive years and equity where they pay larger down payment in the next home. i get a little worried when we see existing homeowners buying next home. melissa: right. >> continue to finance with no cash down

the loan requires mortgage insurance but only about a quarter of the cost of fha fees. now the malloys, family in baton rouge, learned that the hard way. this family of search was lucky enough to sell their too small home and had planned to use a usda loan to move up to a bigger one. the shutdown shut them out of that deal at the risk of being homeless they had to switch to an fha loan which required a $10,000 down payment. their monthly payment also $150 more than it should have been. >> my wife and i are both just middle-class working americans and to have a bickering match between congress and the senate and the white houses cost my family their home, and my family $10,000, that's a lot of money to us. >> the usda program is small, barely 2% of the mortgage market, but it is big to rural communities that rely on that financing. this is not just for home loans but for other types of rural development including commercial real estate, congresstruction, growth. a lot more on this on-line realty check.cnbc.com. >> thank you very much. >>> our next guest may be seeing imp

fha loans sometimes takes 45 for 60 days to close.he shutdown will affect the housing market the mortgages are on the rise because rates have come down sharply. the bottom line is look at the long bond is not predicting a debt ceiling failure as well as a default so for now does not affect the housing market. >> is that a legitimate fear? >> it is. people don't want to spend money when there is uncertainty but jared makes a good point there rates have come back down but the housing market is supply and demand their reason mortgages have this supply and demand but when they start to decrease the people will go after the rising prices at home. neil: what about those stocks as a group? >> i am still a broad buyer i like the of lumber companies but they think they are on shaky ground only 500,000 people are out of work and then paid proactively but that is why the market could be strong over the next five months. ♪ neil: day you hear that? it is time for the nightcap. before they go to bet what they should focus on tomorrow. what refocusi

mire usted nada mÁs en quÉ fhas me encuentr y estos seÑores que ya no me dejan descansar a tanta preguntanicola, mira nada mÁs cÓmo te han puesto. >>pero ya ni me duele. abuelito, e ya me tumben este turbante. >>¿no tienes ni idea de quiÉn ya sido? >>, no tengo, pero le agradezco mucho que se preocupe de mÍ. >>voa llevar las flores al pasillporque... porque aquÍ en el cuarto te pueden hacer daÑo. >>permÍteme ayudarte, carmen. >>hijita, te has hecho famosa de la noche a la Ñana. >>¿de veras, abuelito? >>¿fuis tÚ la que le mandaste pegar? ¿yo? Él: sÍ, tÚ, por celos. nunca se te quitarÁ ese maldito caracter, siempre has sido muy celosa. >>pero ¿yo por quÉ? >>mÁs flores para la seÑorita. muchas gracias, muy able. y esta vez ¿quiÉn habrÁido el de la paliza? >Ú me dijiste que habÍa que hacer algo, ¿verdad? pues ya lo hice. [lee en voz alta] >>i yo. >>¿tÚ? >>bueno, no personalmente,ero yo mandÉ a esos dos tipos pa que le dieran unos buenos trancacitos en mi nombre. con eslogrÉ dos cosas. primero, que le dieran una buena palicita. y segundo que yo no tuviera que golpearla, porque frcamente yo no

fha says loans will be processed but do expect delays in getting them approved. >> turn together forecast. i took a peek at the seven day and saw the number 90. >> that is right that. is right. >> never too early. >> yes. >> there may be a location or two hitting 90 friday. that is when we take a look at what's happening now. sunny skies, high clouds around, giving you a live view of the golden gate bridge. we can see fog and low clouds but not today. blue skies. will be partly cloudy overnight. breezy, mild tomorrow and warming up by week's end and maybe locations hitting 90 degrees. right now looking at sate light radar image showing an area of weather up from the gulf of alaska sliding down into our direction. goitsing to bring us a breezy pattern. and you can see high clouds that leaves us with sunny skies and breezy, but mild condition as cross the bay area tomorrow. continuing animation to look at the week ahead, a position of high pressure bringing us a warm, dry off shore flow at the end of the week meaning a big warm up. overnight, cool in the north bay valleys lows will be into

we should point out they did that with the fha on friday.the news broke, they did $1 billion bid one of the reasons they did that particularly was fha was growing uncomfortable with the sort of inpatieninpatient. they worked it out separately. that is where we are right now. it clearly has hit a snag, jpmorgan is worried about unquantifiable leaps. liz: does that mean if they strike a deal it still leaves gigantic walls through which moneygrubbing people or people who feel they've been wronged can climb right through and sue moore? charlie: you said it perfectly. but only that, standing criminal probes going on. a lot of stuff going on here. from day one i would say i've been stressing on this network that is not a done deal, it's not i things, it's not finalized until you see it. until he's a joint statement coming out of the doj and jpmorgan that this thing is over because there are so many moving parts to this and so much at stake here. you can clearly say the future of jpmorgan hangs in the balance here depending on what they agreed. how

scientists can't look at their blackberries today.k%2m >> reporter: home buyers applying or waiting for fhaacked mortgages are alr suffering. >> we're in this hotel for who knows how long. >> reporter: in ft. wayne, indiana, the reed family loan stuck in the pipeline, awaiting final approval from government employees not atwork. critical social programs such as wic which provides 9 million moms with money for infant formula and baby food have been deemed nonessential. >> how am i supposed to get the extra $200 a month. >> reporter: head start is shutting down across the country. in connecticut today there was no preschool program for this woman's twin sons. >> it's going to affect them in a big way as far as them not being able to be in school. >> reporter: trouble for military families, too. cut rate stores on bases and posts have been closed. the civilian workers who run them sent home. >> stop it, stop it. >> reporter: across the country frustration at those in congress shutting down the government to make a political point. >> government shutdown is ridiculous. it's gop obstructionism i

gets towards the year end, it typically slows's one thing we have to take into account, in october, fha was down 4% of its staff. fanny and freddy also, with regards to the irs, they were shut down. there was a slowdown in july for at least a new residential demand. so we are slowing a bit, but there are hiccups that cause it to be worse than one might see at first blush. >> and will, when you look at the reports, not bad, they were pretty good. you have a couple of stocks that you are recommendin ing dr hort tell us why you like those. >> you are exposed to the west, primarily california. las vegas, phoenix, those marketings are getting possibly frothy, on the basis of william lion land is probably 20% below that. so there is more value in the book. on brookfield residential properties, similar, there are three analysts to cover that company as we know it. a year back, the company gave us the undiscounted book value, which was a little over 4% per share, from that perspective you may have a doesn't over the next four years with residential properties. on dlhorton, i believe they will c

it's so important to buy a home that you can't buy an fha home today. and even though it's not fha, you can't get them done because to confirm the amount of money that somebody puts on their application, you have to irs person to check it. they're not available. the senate passed pill to reopen the government while work out the budget differences wasn't my idea, it was his idea. the speaker of the house of representatives said you do this cr at this number and i will get it done. so we negotiate for a while. i agreed to his number, very hard to do for the democratic caucus. but it was his idea not my idea. all of the talk about not negotiating, that's what that was all about. he admits it's his intention all along. to pass a clean resolution. but then he ran into the tea party. minority with the majority that runs the majority over in the house of representatives. the bill before the house represents a compromise by us, compromise that was difficult, i repeat, to get my caucus to accept. now that we compromised, the speaker won't take yes for an answer.

. >> they switched to an fha loan which required a $10,000 down payment and higher fees. their monthly payment is $150 more than it would have been. >> my wife and i are both just middle class working americans. and to have a bickering match between congress and the senate and the white house cost my family their home and my family $10,000, that's a lot of money to us, we don't normally have that. >> now, when we posted this story to the realty check on cnbc.com, we got a message on the realty check facebook page from another homeowner, or wannabe homeowner with five kids in utah who says she's in the same boat but they cannot afford to switch to an fha home loan. they're now looking to move in with friends. it's hitting a lot of people hard. >> for sure. the real life drama in washington, d.c. may one day make for good hollywood yard but for now the entertainment industry is like many others, dealing with the impact of the shutdown. julia has that part of the story for us. >> for many media executives and celebrities out here, it is business as usual. but the impact of t

but fannie and freddie and the fha. fannie and freddie, 80%, but much bigger.if the government is subsidizing mortgages, that means the government is setting price and terms, and we're setting ourselves up for other significant problems looking way out into the future. and so we -- what we've talked about that, we talked about a number of things. but to me, the biggest thing that really needs to get done is to get our economy growing again. so that it's growing -- right now the economy is growing. that's a plus. but it needs to grow faster. it needs to be more competitive if we're going to create the kinds of jobs we need. and only when we create those jobs and get the economy growing are the american people going to be less polarized. and some of the anger going to dissipate, which again is going to help our political system work better. >> well, that's really an important point, the anger. here we have a day where you brought together both sides of the aisle. you mentioned some of the people. you've been able to bring democrats and republicans together to tal

the fha says to expect delays in getting mortgage loan as proved. >> shut down means a closure of a variety of national park facilities. many are in san francisco. heather? >> taken together the they attract 17 million visitors per year, anyone in those parks could have been arrested. but the national park service says that is not their intention to make arrests though the park police are still on the job and not furloughed. >> people passionate about walking their dogs not happy here. >> it really just pisses me off, if i can say that. >> there was a limited roadside parking but it can take time for a spot to open up this, woman is angry with congress. >> this is my haven. i come out here, my dad just died. my dog just guy dyed this is my place i come. i love it here people are great and we need this. >> the park service got word this morning to shut down and secure them, and then, about 180 of the 250 employees were sent home. >> all employees were requested to come into work today to shut down the work space secure everything and make sure everything will safe. >> most of the presidio is

for those who don't about 2% of the fha staff of 3,000 are currently on the job. sue? >> diana, thanks. >>> time to analyze. we dot every monday. welcome back to the show, abigail. always good to see you. >> you too. >> we'll kick it off with apple because we have an upgrade on the stock. to a buy from a hold saying, quote, the stock will appreciate ahead of the iphone 6 launch. year to date shares down about 7%. do you agree with this call? >> i love this call. i think it's a great call and i think their price target of 600 is appropriate. my reason for being positive on apple there's a positive inflectionion point potentially ahead. a return to earnings growth in fiscal year '14 after a decline this year. that's a great thing. ahead of potential improvement in gross margins. if you improve gross margins that bumped eps could be more. pretty smooth sailing ahead for apple. might have a little chop in the near term but over the next year 600 or higher. >> facebook is next on the list. raymond james is lowering its rating to outperform from a strong buy. however, they h

it just took fha this long to come out and say -- >> steve: is there a problem?dy steve, what do you care? they don't have any more responsibility, but their big concern is that you and i worked a side deal. they don't like that. why they don't like that is because, again, bob massi is getting a principal reduction without the lender principlely reducing it. that's their problem with it. there is a whole thing out there saying this is all to do about nothing. you should let the homeowner get out from under it and move on and even if steve and bob work a deal, what's the difference? >> steve: sure. >> it's been around for a while. and the other thing is, you must be in default of your loan in order for -- what really bothers me about that, steve, again, it has a credit impact on me, the homeowner. >> steve: absolutely. >> i think at this point after the last 3 1/2 years, if i'm current on a loan and i can show that my salary has gone down. i've gone through divorce, i got a medical issue, why do i have to also get hit over the head and have a credit impact? that h

and fort wayne, indiana, the reese family is awaiting final approval for an fha backed mortgage but the who would sign off on the loan are furloughed. >> we're in this hotel for who knows how long. >> reporter: head start is beginning to shut down across the country. her twin sons with no preschool -- have no preschool again today. >> as far as them not being able to be in school. >> reporter: and while social security checks are not affected by the shutdown. >> i wanted a social security card. >> reporter: social security offices reduced the number of services they provide. they can forget about getting a new car at least for now. speaker boehner and

wayne, indiana, the reid family is awaiting final approval for an fha-backed mortgage. but the government employees who would sign off on the loan are furloughed. >> we're in this hotel for who knows how long. >> reporter: head start is beginning to shut down across the country. geraldine bryant's twin sons have no preschool again today. >> it's going to impact them in a big way, especially academically, as far as them not being able to be in school. >> reporter: while social security checks are not affected by the shutdown. >> i wanted a social security card. >> reporter: social security offices have reduced the number of services they provide. so, these people can forget about getting a new card, at least for now. speaker boehner and house republicans believe these budget talks should include discussion about raising the debt ceiling. the deadline to do that is october 17th, meaning that these discussions -- the shutdown could go on for weeks. john and diana? >> tahman bradley, live in washington. thank you. >>> well, tahman mentioned, the effects of the shutdown are

scientists can't look at their blackberries today.k%2m >> reporter: home buyers applying or waiting for fha backed mortgages are alr suffering. >> we're in this hotel for who knows how long. >> reporter: in ft. wayne, indiana, the reed family loan stuck in the pipeline, awaiting final approval from government employees not at work. critical social programs such as wic which provides 9 million moms with money for infant formula and baby food have been deemed nonessential. >> how am i supposed to get the extra $200 a month. >> reporter: head start is shutting down across the country. in connecticut today there was no preschool program for this woman's twin sons. >> it's going to affect them in a big way as far as them not being able to be in school. >> reporter: trouble for military families, too. cut rate stores on bases and posts have been closed. the civilian workers who run them sent home. >> stop it, stop it. >> reporter: across the country frustration at those in congress shutting down the government to make a political point. >> government shutdown is ridiculous. it's gop obstructionis

. >> reporter: now, fha loans will also likely be affected by the shutdown as the federal housing administrationedly has fewer than 100 employees working right now. and many worry if the shutdown continues, and the government defaults on its loans, that could send interest rates soaring and bring the hot housing market to a halt. remember, if you have a consumer problem, give us a call 888-5-helps-u. >> impacting everything. >> reporter: this is just the beginning. if we see a default, that's no telling what could happen. >> especially so many people are buying and selling homes the hottest market in the country probably right now. >> reporter: certainly a hot market. >> thank you, julie. >>> president obama today nominated janet yellen to be the next head of the federal reserve. mr. obama called her one of the nation's foremost economists who understands the strugglessed by out-of-work americans. >> the toll is simply terrible on the mental and physical health of workers on their marriages, on their children. so janet understands this and america's workers and their families will have a champio

eligible for purchase by the gse while in conservatorship or eligible for guarantee or insurance from the fhar department of agricultural. the qm space has been drawn broadly. no data is available to model the precise -- for points and fees mandated by the statute that threshold is more than three times the average lender origination fee reported by bank rate.com and most recent annual survey. and our rules provide an even higher threshold for smaller loans. based on the other element we estimate more than 95% of the mortgage loan being made in the current market will be qm as mark san i can recently confirmed. some such as logic can put out lower figure. those figures. not bended to take account of the expanded definition of qrk m that will take effect in january. instead we're offered a projection of a more distant future when the temporary expansion expires in a period of some years. indeed poor logic acknowledges as long as the temporary expansion remains in effect for gse-qualified loans, which may well be for several years the impact of the regulation, this is a quote will be minor. sec

have been taking on the small things but we should get rid of the subsidies fannie and freddie and the fha they cover 90 percent of american mortgages that is crazy. stop foreign aid, the federal drug war, the department of agriculture get rid of the whole department of $33 billion. farming happens you don't need a department. fcc, you don't need them department of labor, a $143 billion they spend every year. said that they get away by supporting only organized labor. the department of education education, $110 billion state and local have that responsibility. public broadcast they spend almost $4 trillion a and she said the cupboard is darr i have not even including social security, defense, medicare and medicaid which is most of the budget but doesn't even fit in here but there is tons of money in here. it is not empty she cou cut a lot of stuff. john: maybe if the shutdown goes on long enough people will realize we don't need government to be involved with so many things. maybe those furloughed employees will find more useful things to do with their lives to say why did i waste my time

you can't buy an fha home today and even though it's not fha, you can't get it done. to confirm the amount of money somebody put on the application you need an irs person to check it. they're not available. the senate passed a bill to reopen the government while we work out the budget differences wasn't my idea. it was his idea. speaker of the house of representatives said you do this cr at this number, and i will get done. so we negotiate for awhile, i agreed to his number. it was hard to do for we in the democratic caucus, but it was his idea, not my idea, all this talk about not negotiating that was what it was about. he admits it was his intention all along to pass a clean resolution, but then he ran in to the tea party. minority within the majority but the majority in the house of representatives. and bill before the house of representatives comprise by us -- comprise was difficult -- i repeat my caucus to accept. now that we have comprised, the speaker won't take yes for an answer. he's moved the goal again, though. last week he said he wanted to go to conferenc

combine that if the fha is unable to process loans and the housing market will collapse and is in serious trouble. >> then the global effect. it's other nations who are willing to lend us money and their budgets are based on money they get and the foreign exchange with us. >> you have your own economic trouble and i assume that they are watching it very closely. >> asia is. certainly china is, certainly japan is. it's not only the financial aspect, it's a diplomatic aspect that they can't trust us on this, can they trust us on something else. >> when we hear from some politicians that it might not be that pad. >> i would say that's wishful thinking on their part. >> i think it is out of the lack of understanding of how markets work, what their debt ceiling means. they do believe, critics have said that we're already overspending and this is just a way -- >> what would you say to those people who are making those decision. >> go back to college and read economics 101. it's as simple as that. even if you stay a way from the numbers, economists get blamed a lot talking about numbers. it's a

have been taking on the small things but we should get rid of the subsidies fannie and freddie and the fhahey cover 90 percent of american mortgages that is crazy. stop foreign aid, the federal drug war, the department of agriculture get rid of the whole department of $33 billion. farming happens you don't need a department. fcc, you don't need them department of labor, a $143 billion they spend every year. said that they get away by supporting only organized labor. the department of education education, $110 billion state and local have that responsibility. public broadcast they spend almost $4 trillion a and she said the cupboard is darr i have not even including social security, defense, medicare and medicaid which is most of the budget but doesn't even fit in here but there is tons of money in here. it is not empty she could cut a lot of stuff. john: maybe if the shutdown goes on long enough people will realize we don't need government to be involved with so many things. maybe those furloughed employees will find more useful things to do with their lives to say why did i waste my time

ashley: the housiig market could be a casualty of the shutdown war with the irs and fha with a skeletonclose any deals because it is going to take a while for all the paperwork to get through and is that going to close down the housing recovery along the way? joining me tootalk about this is the ceo, thank you for being here. let's talk about the shutdown. when you think about it, the government is involved in the housing industry to large extent. what impact is this shutdown having on the housing industry as a whole? >> it will slow the process down because the irs is close, they can't verify your income. those people that need their income verifiable get delayed and may be their mortgage commitment which might be 60 or 90 days could lose it. so i am sure if it doesn't last too much longer they will be ok but if it lasts longer -- ashley: in the processing of mortgage applications and that will slow down as well. >> everything slowed down but it will affect first-time buyers that are using government to insure loans, veterans' and the fha, government employees and groups of people, 67t

this drags on too long, it does not help with confidence, and the delay, you know, fha, and approvedsy. >> short-term buyers like a little bit of wall street's first reaction was here we go again, ho-hum, not overly concerned, butta as it drags on is does affect confidence. neil: lately the wind at your back. for builders in particular land prices going up more people turning up at open houses and the like. that could be smacked down with a debt crisis. >> it has been a long downturn, housing market has finally been getting positive trajectory. but this is not a good time to stop that trajectory. the housing market en flewences the -- influences the overall economy so much. >> has anything slowed down lately most the shut down? >> first week has not been bad. it has just been a week. i would say we're starting to feel rumblings of concern, there are mechanical concerns, and usda, a small mortgage program is virtually shut down. neil: you have a lending arm yourself. >> >> we do. the mechanics are an issue, i'm more concerned about just what it does to confidence. a bump in the road i