and the fha will do so as well.launched a blueprint for access that as two main parts. the first part, homeowners armed with knowledge. it allows homeowners to commit to housing counseling to qualify for reduced mortgage insurance premiums that this will increase the pool of responsible borrowers and save the average fha buyer nearly $10,000 over the life of a loan. it will also strengthen the fha financial health so that it can continue to assist underserved communities for generations to come. the second part is clearing up kirkcaldy insurance policies to reduce uncertainty for lenders. in the wake of the crisis we have seen a lot of frustration from lenders when it comes to their fha business. many have been reluctant to lend because they fear unanticipated consequences. they need to be able to manage the risk better, and so does the fha minutes of their making it easier to partner with us by overhauling single-family handbook been raided banks to get a 900 mortgagee letters and other policy guidance into a singl

i got cut up in the fha deal. i had 25 years of work in that house. i was -- it was paid for until i mortgage it. i am rural america. everything i do is cash. i don't go looking for money anymore. i have a nice house now. it is all paid for. the guy down the street got the same can of property and paid cash for it. everybody is up there fist fighting and talking about rules , we are doing it cash. we still know how to swing hammers and use paintbrushes. you guys have a good day. you have to commend john for his ability to get out of a difficult situation and build his own equity again by paying cash for home. that everybody has that opportunity. if you look at the small asinesses across the country, high percent uses their home as a way to finance the small business. if you own a convenience store or a diner or a paper goods store in your community, you have a home equity line of credit because that's the only way to get that revolving debt line to finance the cash flow of your business. during the recession, many people lost their businesses or at le

nearly 300,000 fewer fha loans were issued in the 12 months ending june in year compared to 2013. the mortgage bankers association expects total lending for home purchases will fall 13.5% this year. mortgage banker and author of mortgage 101 david reed says the new rules don't make it cheap fore people to buy than rents because the less a buyer puts down the more private mortgage insurance he must pay. >> borrowers today if they want a 5% down payment or 3 1/2% fha it's a toss up on which is better. i a think not quite sure that lowering the payment from 5% down to 3% down is going to help. >> reporter: the new rules also don't address root causes of diminished demands from homeownership. stagnant middle class wages along with a rise in part-time and free-lance jobs. banks generally don't consider these types of workers quality applicants and often reject them. >> the quality of loans in today's market, and it has been for the past couple of years, is probably the highest quality of mortgage loaned funded in the history of the program. credit scores are much higher. >> reporter: a

i got cut up in the fha deal. i had 25 years of work in that house. was -- it was paid for until i mortgage it. i am rural america. everything i do is cash. i don't go looking for money anymore. i have a nice house now. it is all paid for. the guy down the street got the same can of property and paid cash for it. everybody is up there fist fighting and talking about rules , we are doing it cash. we still know how to swing hammers and use paintbrushes. you guys have a good day. you have to commend john for his ability to get out of a difficult situation and build his own equity again by paying cash for home. that everybody has that opportunity. if you look at the small asinesses across the country, high percent uses their home as a way to finance the small business. if you own a convenience store or a diner or a paper goods store in your community, you have a home equity line of credit because that's the only way to get that revolving debt line to finance the cash flow of your business. during the recession, many people lost their businesses or at leas

now for at least some fha loans you will only have to put down 3%.an you give us a little more color on that? >> well, i think it will go beyond just the fha. it will be fannie mae and freddie mac. it will have down payment availability as low as between three and 5%. and what troubles me, is that it is not just lower down payments but the potential for intersecting that with consumers with weaker profiles. we've seen this movie before and it didn't end well. when you intersect both lowdown payment and weak credit profiles, that to me is a recipe for problems down the road. liz: susan, how do you see it, as somebody who has studied this very closely? i'm sort with greg. it was very hard for me to get get a mortgage recently. i wouldn't fall into the freddie mac or fannie mae parameters. make it easy for me to buy a house too. i think i had to put down 25 to 30%. >> lenders are actually with you. they're not making these loans. they are able to make loans under loser standard but they're not making them. their standards are far stricter than gses will

nearly 300,000 fewer fha loans were issued in the 12 months ending june this year compared to 2013.he mortgage banker's association expects total lending for home purchases will fall 13.5% this year. mortgage banker and author of mortgage 101 david reid says the new rules don't necessarily make it cheaper for people to buy than rent because the less a buyer puts down, the more private mortgage insurance he must pay. borrowers today if they want a 5% down payment con conventional or three 1/2 % fha, you know, it's a toss-up of which is better. i am not quite sure that lowering the payment from 5% down to 3% down is going to help. >> the new rules also don't address root causes of diminished demand for home other thanship. stagnant middle class wages along with a rise in part-time freelance jobs, banks generally don't consider these types of quality applicants and often reject them. >> the quality of loans in today's market and it has been for the past couple of years is probably the highest quality of mortgage loans in the history of the program. credit scores are much higher. >> fin

to the gse, with 5% down payment required on most loans, meeting a whole list of other , the fha willelling out these changes at the mortgage conference association today in vegas. the hud secretary also said this week, again, that these moves are very limited, but as we have heard in the last little bit that they are triggering criticism of going too far. you having some level of deja vu? well, there they are, speaking in vegas and it did not start off bad. it didn't start up that last time. >> that's right, but there have been a lot of changes since then. there have been changes to the underlying of how those loans are written in the first place. it is much harder to get a mortgage these days. these changes, again, are supposed to be modest on the margins. we will hear more from them, the details do matter. if they go further than people are suggesting, there will be blowback. people on capitol hill are saying that this is all the more reason to get the -- get them out of this business altogether. >> clearly not part of the discussion right now. michael mckee is in the conversation.

fha has been offering similar types of mortgages for the past several years.t's not a new product in the marketplace. the cheap issue -- cheap issue has to do with putback's and the reps and warranties issues. they are afraid they might get stuck with the mortgages beard bank. it's really just something that will have to heal. >> how doesn't zillow think housing will shape up at the end zillowyear? -- does think housing will shape up at the end of the year? >> we believe we are going to see positive home price appreciation. about half the pace of the past 12 months. look for 3% gains in real estate. that is a good thing. more of a historically normal pace. >> stan, good to see you. up next, matt miller has the latest on the markets update on trading. amazon needs your help. julie hyman will explain. ♪ >> i seriously think that move is going to work. >> you have t >> it's a tell of two companies. walmart surveyed kids to help curate its top toys list. amazon went to the toy buyers, the moms. they harnessed product reviews to compile a list. julie hyman joins me

. >> the fha underwriters warned that the presence of even one or two non-white families could undermineestate values in the new suburbs. these government guidelines were widely adocumented by private industry. >> discriminatory federal policies, like those of the federal housing administration, helped build the welt in america suburbs. and they also helped build the poverty in america's ghettos. and it only started to end in 1968, with the passage of the fair housing act. now, let's be clear. this doesn't take anything away from the grit, determination and hard work of bill o reilly or anyone who koim out of levittown. we are all standing on a scaffolding of laws and government policy. this isn't some kind of speculation. it's documented. in 2 0 0 8, the cornell poll asked people whether they had ever used a government social program. 57% of people said no. as political scientist susan metler write, 9 4% of those using a government program have benefitted from at least one. the average responded had to use four. there are two types of people in america. those who recognize that they're

. >> the fha underwriters warned that the presence of even one or two non-white families could undermineestate values in the new suburbs. these government guidelines were widely adocumented by private industry. >> discriminatory federal policies, like those of the federal housing administration, helped build the welt in america suburbs. and they also helped build the poverty in america's ghettos. and it only started to end in 1968, with the passage of the fair housing act. now, let's be clear. this doesn't take anything away from the grit, determination and hard work of bill o reilly or anyone who koim out of levittown. we are all standing on a scaffolding of laws and government policy. this isn't some kind of speculation. it's documented. in 2 0 0 8, the cornell poll asked people whether they had ever used a government social program. 57% of people said no. as political scientist susan metler write, 9 4% of those using a government program have benefitted from at least one. the average responded had to use four. there are two types of people in america. those who recognize that they're

i think the bigger issue is financing and fha costs and fha is now looking at that. castro recently said, you know, we need to make affordable housing and housing affordability not be a bad word anymore. it's a hangover of the crisis and biggest impact holding folks back. >> diana -- if we have the 10-year back at 2.35% and zillow saying the 30-year mortgage rate is back below 4%, does that aleleviate the scenario at all? >> it helps a lot. we're expecting mortgage rates to go up for a year and the thought process is they had to go up and they haven't. time and time again we see the indicators to push rates up, they don't. when's more important is not the rates so much as the availability and talking about credit easing a lot, we have a new report showing easing for the best buyers out there for the really top credit worthy borrowers and not people to get back into the market and i'll say i agree with sherry i think the safety net under prices right now is still that limited tight supply. i think the price increases are going to shrink dramatically and to go negative

you're not going to stay uite as long as seven years or get more expensive type of mortgage like an fhanderrthose conditions, for that kind of person, that is often first-time homebuyers, then it is actually cheaper to rent than to buy in a lot of those california cities but still a lot cheaper to buy than to rent in many parts of theemidwest and south. liz: let's get to where buying a home is a toss-up. how much cheaper is it to buy a home and to rent, and we've got this list here, that begins with honolulu, of course hawaii is very attractive place certainly but you also look t orange county, which in california had a big run-up during the housing market. new york, san francisco, l.a., lots of demand there, what are we seeing? >> well these are places, remember it is both expensive to buy and to rent in places like honolulu and new york and the san francisco bay area. but what we're comparing is, which is a better deal. again because mortgage rates are still so low by historical norms, it is still, you know, 20%, give or take cheaper to buy than to rent in those markets. >> great to h