she planned to use a fha loan to make that dream real. then she saw fha raise the fee. that is something that she had budgeted for. britney postponed her search. she isn't alone. it is estimated credit worthy borrowers are priced out of the housing market in 2013 because of high premiums. an average of $900 over the next three years. it will encourage nearly a quarter million new borrowers to purchase their first home. this is a commonsense step. fha premiums will still be even after this reduction 50% greater than they were at the beginning of the crisis feared this premium change only makes an fha loan more affordable for qualified buyers. family still have to qualify for an fha loan purely do, the find a more affordable path of ownership waiting for them. made she most you believe this reduction is a win. many agree on this point. i freaking the cost down, we are hoping and have confidence it will help lift folks up and it will expand opportunity for generations of americans to come. when i reflect on the work that we do every day at hud, think about folks just outsi

the fha has gotten much stronger.t is one of the things that allows us to do this new and to keep safeguards in place and meet the mission as well of insurancing this. >> what percentage do you have to be at for your cap? like what is it they make the banks at 5% they have to have capital investment of 5% on there. >> so it is a 2% capital reserve ratio. so you guys are beyond that with your 40 billion. >> no, no we're at .41% but on a very strong trajectory to get 2% in the next couple of years. >> jon: okay i was with you for a second. you were talking about 40 billion and then just a second ago you said we have .41 percent. >> we have-- our capital reserve ratio is .41 percent. now-- . >> jon: that is low, is that low? >> it's not 29%, but it's on a very strong trajectory to get 2% in the next couple of years. >> jon: i would hope you are on this traject ory. >> when you are at .41 percent there is not much trajectory. >> a couple of years ago t to give you a sense when we-- the fha needed a mandatory draw t was at

she planned to use a fha loan to make that dream real. then she saw fha raised the fee. that is something that she had not budgeted for. britney postponed her search. she isn't alone. it is estimated 400,000 credit worthy borrowers are priced out of the housing market in 2013 because of high premiums. it'll help people save an average of $900 over the next three years. it will encourage nearly a quarter million new borrowers to purchase their first home. this is a commonsense step. fha's premiums will still be even after this reduction 50% greater than they were at the beginning of the crisis. this premium change only makes an fha loan more affordable for qualified buyers. family still have to qualify for an fha loan purely do, the find a more affordable path of ownership waiting for them. main street and wall street believe this reduction is a win. many agree on this point. by bringing the cost down, we are hoping and have confidence it will help lift folks up and it will expand opportunity for generations of americans to come. when i reflect on the work that we do ever

it's something that the fha is working on. to try and create the business certainty that is good for fannie and freddie that is good for fha, is sensible, also good for the lending community and is good fundamentally for the american consumer. and so the biggest challenges, i would say are this issue of access to credit and affordability. both of those are challenges we're prepared to meet head on with sensible policies that are prudent, but have the effect of expanding opportunity. >> you're generating a lot of questions, mr. secretary. are there any steps you have not taken yet in your first five months on the job that you would like to take to increase homeownership? >> well we're -- you know, we're taking a number of steps at fha. last may we announced the blueprint for access to credit. we are looking at ways that we can make that morrow bust in the future. those are not fully cooked right now. they're still being worked on. and so i'll reserve for a later date if we do expand that blueprint for credit. but homeownership

borrowers the fha cannot afford to lose. >> this is great for the fha. they've been losing market share to fannie and freddie. this allows them to solidify their position in the market to rebuild their finances and it opens the door for a lot more people to enter the housing market. >> reporter: the president will also address new efforts to assure fha lenders of when they will and will not be held responsible for loans that default. diana diana olik cnbc washington. >>> right now, the senate is moving forward with plans to vote on the keystone xl pipeline. you're look live as the energy and natural resources community get the bill ready to vote on the senate floor. the controversial pipeline that would run from canada through the u.s. to the gulf of mexico has been debated for several years now. many republicans say it will create needed jobs. democrats have raised environmental concerns. president obama has threatened to veto that bill. >>> well the deadly attack yesterday at a french newspaper is bringing up new security concerns in this country. for

that is what is behind this big news today from the fha. 3.5% required.rces telling cnbc that president obama will announce a significant reduction in the fha's annual insurance premium tomorrow. fha had been the loan of choice for first-time home buyers with not quite perfect credit but it began bleeding cash and went into the red. so it raised the premiums and credit scores leaving those much needed first time home buyers in the cold. the administration is looking to get buyers back, as well. for the average borrower this decrease could mean a savings of about $80 a month. another reason is that fanny and freddy announced a 3% down payment product which could cut into fha's business and hurt the ongoing repair of its portfolio by taking away the best borrowers. all of this as mortgage applications down 8% from a year ago according to mortgage bankers association. we have more on both if, ha and applications story on cnbc.com. go to it. back to you guys. >>> stick around, diana because i would like to bring in since you mentioned the nba, the president o

what the fha cannot afford to lose. >> this is great for the fha. they've been losing market share to fannie and freddie. this allows them to solidify their position in the market to rebuild their finances. and it opens the door for a lot more people to enter the housing market. >> reporter: the president will address new efforts for fha lenders when they will and will not be held responsible for loans that default. i'm diana olick. >>> premiums good news for shares of home builders today, but not for those insurers. shares of builders like kb homes, denard hol ton, up 5%. beezer also seeing solid gains as you see there, but essence group, radian group and mgic came in with substantial losses. >>> well still ahead. shares of ultra meez for schizophrenia, an area of the marketal tough for >>> some action today in the newly republican controlled congress. the house overwhelmingly approved a bill today that would extend the terrorism risk insurance act until the year 2020. the program expired december 31st but a new bill has been tweaked a bit to chang

and that went beyond the fha. banks decided who they were going to lend money to based on fha policy, they responded to that in much the same way. on "the atlantic" website, you'll see, we have actual maps where you can look at a city like chicago and see where the loans were and where the loans weren't. and this was a practice that lasted on paper into 1960, and likely much longer than that. >> so you go on, "until america reckons with the moral debt it has accrued and the practical damage it has done to generations of black americans, it will fail to live up to its own ideals." talk for just another moment about that practical damage. >> the most obvious example is obviously the wealth gap. when you have a family, on average that has 20 times the wealth, a white family has 20 times the wealth of black families and then you can really trace this to actual policy. you see it. again, you know, when we look at these incarceration rates, we see it. i mean, the gap is so, so huge. it's not a mere, minor discrepancy. w

you have been quoted as saying that this should be left up to congress and the f8 -- fha should not be a part of it. it is important to understand that any decisions you make as director will impact reform efforts either positively or negatively. there is no way for you to ignore that. so i would hope that your decisions and not act as an impediment to it. lowering payments, preventing risk-based pricing, those things will make it harder and quite possibly lead us down the path of another taxpayer bailout. this brings to mind those that don't learn from history are due to repeated in the subpar undermining standards of underwriting buying homes that people cannot afford, they were the main parts of the last situation. and with that i read back. >> we now recognize the gentle lady from new york ms. maloney. >> we thank the chairman and ranking member and it is a pleasure to welcome you. .. a 3 percent down payment which we will allow borrowers with strong credit histories but not stockpiles of extra cash to get a mortgage. he was he was guided by the data which clearly demonstrates the

i'm not one of the people all concerned that the fha will go sideways financially.bate goes on. thank you for coming on. good to see you. when we come back, the data seems to show a recovering job market. main street seems to tell a different story. later, the king. you know the king. there he is right there. he would have been 80 years old today. his fans continue to love all things elvis. count me among them. first, here is your consumer gauge with the numbers that mean the most to you. ♪ gerri: after november's robust employment numbers all eyes tomorrow on december's jobs report. comes out in the morning. will you be watching? what can we expect? what will the job outlook be like next year? joining me peter. welcome back to the show. the reason we're doing this segment is because we saw your column. i thought it was so interesting because it's a little irreverent. it's a little against the grain. we may be counting our chickens before they hatch. they may not be as strong as november the jobs number. why? >> i see the economy slowing a bit. not going down. over

so today the fha is lowering its insurance premiums by 50 basis points. >> and what brought the fha toell as folks may remember we got our last annual report in november. and what it showed was over the last couple of years, the mutual mortgage insurance fund has gained $21 billion of value. since the housing crisis started, these insurance premiums had gone up about 145%. these are our annual premiums. and really what this is about is first of all, maintaining a great balance between ensuring we have a strong mutual insurance fund and also fulfilling the fha's mission of providing opportunity for first-time home buyers and middle class families to be able to own a home. over at hud we call ourselves the department of opportunity. and i think this is a very prudent step in the direction of providing more opportunity for middle class families to be able to afford a home. we anticipate that this is going to mean a $900 annual savings for about 2 million folks over the next three years. that it will spur about 250,000 new first-time home borrowers over the next three years. >> obviously w

fha lowering the mortgage insurance premiums. what does that do?solves two problems for the government insurer of home loans. first, it helps get them more business. potentially 50,000 to 100,000 more borrowers a we're. at first it could be mostly refinances, but it keeps the fha, which needed a $1.7 trillion bail-out competitive. with the new 3% down payment loan which would have been cheaper for the best borrowers and could have caused them to jump ship. fha needs the high credit dependable borrower ez to fuel its fund. he denied that that was entirely behind the move but he also stressed the need to protect the fha's fund. you want to see that interview, go to it. realty check.cnbc.com. back to you. >>> let's go to dominik for a market flash. >> we're going to carry on with diana's theme here with the home building stocks and focus today all moving hire as dr hortan posted better than expected first quarter results. a 35% jump in new orders. a 29% jump in -- jumping closings here and nearly 7% rise in average sale prices. it's important, sue, be

the government reduced premiums for fha mortgage insurance by a half of a percent! now, that move is expected to save first time home buyers about $900 in their annual mortgage payments. as a reminder, fha is also more flexible when it comes to underwriting, especially for those with credit scores down to 620. and for folks still carrying student loan debts you might want to try an fha loan. >> how about mortgages? is it still pretty tough to get one? >> reporter: you mean you don't have to actually give your first born up to get your mortgage anymore? that's the good news. the process has improved. but it's really labor-intensive and frankly it takes lots of patience. purchases -- new home purchase mother teresa take about -- new home purchases today about three weeks to close. refis 45 days. you got 20% down, the best rates will be available if you have a credit score above 740. for every 20 points where your score drops your mortgage rate will rise by about a quarter of a percent. credit scores don't have as much impact on loans of 15 years and shorter. for more

insurance for fha loans by half percent. percent down from 1.3 percent. that movies expect to save first time home buyers about $900 in their annual mortgage payment. fha is more flexible when it comes to underwriting if you have a credit score that is a little bit lower, maybe down to 620 and for those who are still carrying student loan debt. >> jill, how about it, is it still hard to get a mortgage. >> according to the brokers i have been talking to they say process has definitely improved but it the is labor intensive. you will need patients. the mortgages for new home purchases can take three weeks to close, refi, 30 to 45 days. looking for a 30 year mortgage and you have your 20 percent down remember best rates are always a available for those who have credit scores a bob 740. for every 20 points thaw drop in your score, your mortgage rate is likely to jump by a quarter percent. and also if you get a 15 year loan credit scores don't have as much impact. for more on what you need to know to close a loan in 2015, go to j

economico de washington walda yon centro latino para el desarrollo economico 134630 "los prestamos fhados por dinero del gobierno federal son un poco mas flexibles en relacion a la cantidad del enganche, el puntaje de credito y la cantidad de reservas que tenemos que tener...lo que lo va hacer ahora, con el anuncio del presidente, una buena opcion nuevamente: y es que hasta $75 dolares adicionales al mes en el bolsillo son muy buenos para ahorrar o cumplir con otras obligaciones... la adminstracion obama espera que ademas la medida ayude a revitalizar el mercado de la vivienda. liliana henao washington, dc con un compromiso tan grande como lo es comprar una casa expertos le recomiendan siempre asesorarse con los programas de vivienda de sus organizaciones locales sin fines de lucro para evitar practicas predatorioas o abusivas con las que tenga que lidiar por anios... en washington liliana henao telemundo take 3 shot angle cam cesar ---veamos como pinta el pronostico para los proximos dias... blanca ---pasamos con gabriela dellan... adelante gabriela.. take gabriela live gabriela live

fannie and freddie, controlled by the government, controlled by my former colleague who heads up the fha and we are famous for acronyms in washington -- they just lowered the down payment requirement to 3%. we have years of statistical history that shows the default rate will be greater. we need to give every american and opportunity to buy a home they can actually afford to keep. the answer to your question is housing finance reform a sustainable housing finance system, one that gets up off -- gets us awfully boom -- one that gets us off the boom, bust bailout cycle, that is a priority. >> the questioning about -- a question about housing finance. >> you had a bill that would wind down all support for the government housing -- >> that's not true. the federal housing administration was still around. >> outside of the fha. >> it has a pretty big footprint in the market, but go ahead. >> wind down fannie and freddie and not replace them with a government backstop. >> that is true. >> the senate had a bipartisan bill that would replace fannie and freddie with a government backstop. do you t

don't forget, back then, the gse, fannie mae and freddie mac, fha had about a 45% market share. they've got a 95% market share. we'd better be doing this eyes wide open. >> i'm not sure all people would agree with your statement that housing is the last remaining path to wealth creation in america. particularly after the decade we've come through. rick, i guess i begin to worry along that same line when so many people seem to all be saying the same thing. money is cheap. it is stable. we're making housing available to more people. but we didn't learn the lessons of the past crash. and that is exactly what it was, rick. >> no, i do think we've learned the lessons of the last crash. i'm more concerned about what lessons we haven't learned yet that might surprise you next time. >> why do you say that? why do you say we have learned them if we're making housing available to, again, low down payments with virtually -- the insurance premiums are going down. why? >> there's a lot of history that shows that a low down payment by itself is not an indication that you're going to have high

for instance over at fha we're lowering the mortgage insurance premium. they're going to save an average of $900 per year. it's going to stimulate about 250,000 more borrowers into the fha so they can own a home over the next three years. these are things that don't need congressional a a approval that we can get done. >> you have heard a lot of talk about hillary clinton. your brother was asked my chris matthews last night whether any one of the castro brothers was going on the ticket with hillary clinton. it wasn't him. are you going to be on the ticket if 2016? >> my brother, always getting me in trouble. >> that's what brothers are for. >> he's trying to do a great job as congressman. i'm trying to do a great job at hud. >> we'll follow back up with you as the months progress. secretary of housing and urban development, thanks for your time. with me now is michael sharer. let's first talk about middle-class economics. the minute the president said that, i think a lot of folks said, that's going to be the thing we hear a lot in the course of the next t

but what it will also do is help the fha.mae and fred mac announced talo down payment mortgage product. at 3%. and the fha could stand to lose significant volume if all of that business went to fanny and freddy. by lowering the premium they are making themselves competitive again with fanny and fred di-dy. and that is important to keep the fha healthy. president to announce tomorrow. >> thanks dianna for that. keeping an eye on the markets for that. we are in rally mode here. the s&p off five straight days of losses getting a nice bounce. we are you have a high we are off the highs of the session. nasdaq clearly in the lead. we'll have mur in the market action after the break. >>> welcome back to squawk on the street. we're seeing three big macroeconomic themes show up in the data. strong u.s. growth. weak foreign growth and lower oil prices. fourth quarter gdp revised up 0.4%. we're now over 3%. this number had been hovering around 2% after the strong two quarters in the is second and third. looks like the fourth is above 3%

then he will be introducing another program fha mortgage premiums cut which will save the average home year. critics say bob corker of tennessee says it is bad news for taxpayers and it is risky given the housing industry is just gaining momentum from the bursting of the housing boubl. >> a new york police officer waking up in his own bed this morning after a hospital sendoff fit for a hero. (applause) >> detective elero was all smiles when he was let go. this comes a few days after he and his partner andrew dosi were shot by an armed robbery suspect. he is accused of shooting the two off duty cops as they tried to arrest him. he charged with five counts of attempted murder of a police officer and is facing life in prison. officer dosi is still healing from his gun shot wounds. >>> a landmark decision by a connecticut supreme court is expected later today. earlier this week we told you about 17-year-old cassandra who is refusing to treat her hodgkin's lymphoma because she and her mother think the chemo is poisonous. connecticut stepped in forcing the treatment because they say she is a

and for those not familiar with fha, they under writes and guarantees it is the backstop for a lot of loans around the country. especially for middle class folks. so a lot of people pay these fees. and if they are saving $900, that is money that will be going throughout the economy. over the next three years, these lower premiums will give hundreds of thousands more families the chance to own their own home. and it will help make owning a home more affordable for millions morehouse hold households over all in the coming years. to give you an example, earlier today secretary castro and i nueva villas where peoples are buying homes with the help of the fha. this was a big development that wasn't finished or wasn't all sold. the crisis came. half of the homes were still unsold. folks lost their homes. it started getting boarded up. people were feelingin secure. it was starting to get depressed. nonprofits with the help of hud came in and purchased some of the properties and hired local residents to rehab them and now people are building them. beautiful homesch and. and with the help of f

so really fha had to make this move to billion out their book.n all, i don't see this having a major affect on the economy. it's more of just a change in tone. buyers can sense that. >> quick last word, sherry? >> this is also sort of the tip of the ice persian gulf. the president released a six-page press release today, there was only a small paragraph dedicated to the rest of this. once we get to the state of union address at the end of the month, wither going to be hearing lot more about controversial issues with a republican congress now like dse reform and unrolling dodd frank, those types of things. we will see a lot more of that. >> sherry and brian, thank you both. appreciate it this afternoon. >> thank you. >>> we keep an eye on the housing sector. if you know anyone who has a pension, a new round of some pad news that story burning up our website and see if it made the hot list next. >>>.to, the all-important jobs report is out 8:30 a.m. attorney time. how will that impact this stunning market rally? don't miss the coverage on cnbc and

fha loans help families buy their first homes. the insurance covers is agency's risk in case the buyer defaults. it will enable up to 250,000 new buyers to buy a home. >>> for the first time republicans control both chambers of congress and while some hard line conservatives want obamacare repealed all together other members of the g.o .p . are looking to slowly dismantling dismantle the law. >> reporter: taking up a bill defining how many hours make up a workweek. right now it's 30 hours per week as a way of preventing employers from dialing back hours to just under 40 to skirt the insurance mandate. >> 2.6 million workers who make less than $30,000 a year are most at risk of losing hours and wages on account of the 30 hour provision. >> reporter: arguing the lower 30 hour workweek is hurting american employees the most. bosses drastically cutting hours, doing whatever they can to avoid the new law. the white house vowing president obama will use his veto pen. >> there are some who are looking for loopholes where they can try to

backed by the promise of va and fha mortgages, levitt put his money where his judgment was.laid out 6,000 lots on low-cost long island potato fields. specialized construction teams hit levittown streets like commandos. instead of having a carpenter do all the carpentry we specialized. he did only framing. another carpenter only did roof rafters. we began delivering 150 houses every 5 days. approximately 18 before noontime and another 18 or 17 after noon. as with the model t, assembly-line methods could mean assembly-line sameness. in a nation dedicated to individualism would mass-production houses have mass appeal? houses were built. ads were placed. the case went to jury. the verdict was not slow in coming in. they needed a place to live. they were coming from all over the country. long islanders were in a minority because they couldn't get there fast enough. newman baum's home movies captured the time for people like the baums, worthings, and widlitzes. new families in a new community. [william levitt] regardless of what the place looked like, it filled a need for these yo

. >> el plan es que la administraciÓn de viviendas federal conocida como fha reduzca las primas de segurores que se pueden gastar en la economÍa. >> antes de su discurso el presidente obama hizo un recorrido por los vecindarios del sur de phoenix. ademÁs visitÓ las oficinas de chicanos por la causa donde tuvo la oportunidad de conocer mÁs de cerca el programa de vivienda que es organizaciÓn ofrece. >> la senadora demÓcrata por california, bÁrbara boxer, anunciÓ que no se va a postular para una reelecciÓn el prÓximo aÑo. afirmÓ que aunque de que el senado continuarÁ trabajando en el Ámbito polÍtico respaldando a otros candidatos demÓcratas y apoyan los prÓximos piratea la presidencia del partido. analista polÍtico desde ahora argumentan que un senador latino podrÍa ser una realidad pero la responsabilidad estÁ en nuestros propios votos. >> me parece que los latinos tenemos que tratar de unificar los detrÁs de un candidato estatal para tener el primer senador latino. >> la seÑora de 74 aÑos que iniciÓ su carrera polÍtica en 1976 como supervisora del condado de marÍn dijo que su edad no fue

algo que mundconzco de nosotros y soos somosnocis por la virgen de la tagria tambien track 4emas la fhaa concursante podria ser una senal divina 03 sot el dia 21 deenero casualmtesl dia de virgen de la altagri y tambien el dia del sfile del traje tipico paraque todo mundo conozcala virgen de la altagracia en universo. tag: hay otro detalle que me gustaria agregar. esto lo l una descripcion de instagram con la foto de kimberly con el vestido. finalmente la imagen de la virgen de altagracia como muchas otras de la religion catolica, son expresiones de arte que en algun punto fueron creadas por artistas para la iglesia catolica ya sea en el renacimiento o otra epoca de donde sean, entonces el que alguen utilize un vestido similiar tambien es una expression de arte. con mucho respeto blanca -ultima pausa en noticiero telemundo 48 pero mas adelante take vo --le decimos cunto tiempo y cuntas fotografias tom un astronauta desde la estacion espacial para lograr esta espectacular imagen secuencial. end segment fs 1 --- hoy preguntamos: qu opina sobre el supuesto uso de imgenes de afroamericanos

. >> outside of the fha. >> it has a pretty big footprint in the market, but go ahead. >> wind down fannie and freddie and not replace them with a government backstop. >> that is true. >> the senate had a bipartisan bill that would replace fannie and freddie with a government backstop. do you think this year you would be willing to move more in that direction in compromise with the senate version, or are you planning to move forward with something similar to what you were doing last year? >> as you may recall, there is a change in management at the united states senate. i, for one, think that is a good thing, and, clearly, the american people do, too, since they overwhelmingly voted out harry reid's obstructionist policies. i think you would see a very different senate bill today. i have a strong belief about where public policy should go, but i always stand ready to compromise policies in order to advance principles. i don't ask myself is this the perfect bill. i ask myself does this take a step in the right direction or the wrong direction. i'm always willing to sit down with the adminis

it was just in the past two weeks that we learned fha was going to be lowering its mortgage insurance premiums making mortgages cheaper for those entry level buyers. that went into effect just yesterday. and so that may have built up a lot of that excitement among potential buyers to at least go out and shop for a home which red fin was reporting. >> maybe i the bad weather back here diana, but i'm thinking of spring. what should we be watching for as the best indicator for what the health of the housing market is going to be like in spring? >> one word supply. that's what all of this is based on. we've got very low supply as i said in that existing home market. we want to see people putting their homes up for sale so we get the buyer traffic in and they have something to buy. that was the trouble last year at the beginning of 2014 there just wasn't enough out there to buy. so hopefully the higher prices and more excitement in the market will add to that inventory. perhaps more housing starts as well would help. and that would really juice the market for spring. watch the supply. >> o

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. >> fha loans only.rs -- borrowers are going to claim $900 a year but it doesn't turn out that way. i was looking at data from realty track, here's some examples, if you're in bergin county, oh great, you're going to save more than $1900 another break for the rich. thank you, president obama. $2100 in san diego. now, if you're in wichita or new york, you get a less break. so these poorer areas, the break is lower. the wealthier areas the break is higher. it's doing the inverse of what the president promised when he gave that big speech in phoenix last week. stuart: the law of unintended consequences. you want to do this you try to do this but, in fact you do the exact opposite. >> exactly the opposite. and also remember fha loans historically over the last 25 years, they're more prone to foreclosures. stuart: ah. >> so you might be be in that wealthy area in san diego, but you have a higher chance of getting your home foreclosed on. prices are continuing to go up and up, so not what the president intende

fha if we have fees go down it is cheaper to buy a house. hence why companies who manufacture homes move up the most. the strong dollar has brought buyers into bond markets from weaker currency countries during this period which allowed mortgage rates to go to ultralow levels. because of fears of what a decline in oil really means we haven't even had a rally in home builders despite the fact that mortgage rates are so low. today we did. rational. you buy a home and furnish and improve your home. how about individual stocks? keurig green mountain has a new cold drink machine. coca-cola has a stake in the company. dr. pepper also endorsed the contraption. suddenly it has legs so the stock goes higher. if oil had plumted again today that stock would have been lower. the market has been nutty. today it was rational. earlier this week general motors reported december sales. big ticket yukons because oil cartel is smashed. gm stock has been hammered. we accepted that because everyone else was selling shouldn't we? it was great to see gm rallying t

that was after the fha had created the suburbs. that was after the g.i. bill had sent a generation to work. the government could call on its citizens because the country had delivered for its middle class. if the country does not deliver for its middle class, it becomes much harder for it to call on its middle-class, whether it is to protect the environment. in response to a national security concern. whether it is to look out for the poor, which is obviously a continuing issue for us. it degrades ultimately the character of our democracy. my conviction has always been, and latin america and others illustrates this, democracy does not just mean government by the people. it has to mean government for the people. the way people judge that is by what is happening to them in their ordinary lives. when they do not feel like they are being protected from large forces, that is when they become disillusioned. i do not think there is any more important issue. >> how do you create an economy that is better for the middle class, that creates jobs, that enables peopl

there were whispers, maybe the administration making changes on the fha on insurance and things like that. what role would the government have to play to make it easier for you to make loans. >> when they do certain things there are unintended consequences. they should get involved with more community bankers, like valley national bank. people who are on the front line. and before they pass a regulation, to make sure that it won't hurt what they want to accomplish in the long run. charles: unfortunately when they pass these things, often they're trying to get elected. they deal with the consequences later. >> you're not payin paid by lobbyists is the problem. charles: high crush has been crushed. you want to know if it's time to buy the stock. i have a lot of great questions from you guys. we'll talk about these and others. keep them coming. after all woul, we're here to make you money. we'll be back in three minutes. ♪ charles: well, i didn't have to talk anybody off a ledge. i had a lot of questions. keep them coming. curious about an industry, individual stock, let me know. by the

president obama talked about lowering the fha insurance. xhb which is the etf of the home builders hit its highest level. it report on the 26. i'll give you the red flags first. execution hasn't been great. they missed the last two times. you know, i think you have a demand/supply equation in this country that take the margins above 23% over the next quarter. that sweet spot is 2050 range. the fico is down. i hate to say it, i think they're going to go under 700. that's a greater pool of buyers for them. on the upside, i'd like to see it test 27. break out to 32. it's not a high-risk name. not a trading vehicle. i like a lot long-term. what do you think about this one? matt: i love it. i don't own it. charles: matt owns the one that is up the highest point since 2007. matt: you get lucky sometimes. i'm on the boat with you. 2015 is one of the great years. one of the leaders. earnings going from a buck 80. nice solid growth. those are low expectations based on what could happen. >> i agree. i like it a lot. you highlighted what the gscs are

>> stephanie mentioned the housing names and really interesting and might think that the fha news isbut housing is so big an such a huge part of the economy that to me that's starting to say if the government is once again going to support the housing market then those names could rip particularly with lower interest rates and the fmoc minutes matter, not three weeks ago but the state we are in now. they talked about inflation expectations needing to go back to 2%. since the meeting, inflation expectations have continued to fall. that says to me the fed's going to start talking down the dollar. you need to start preparing for a weaker dollar here. >> that's what larry mcdonald told us. >> great minds think alike, kelly. >> okay. hold that thought for a second because we want to incorporate the themes with the next guest bringing us his predictions for 2015. bob doll, chief equity strategist. welcome. >> thank you. >> what is your view, first housing and then the dollar next year. this year. it's already 2015. >> housing's important. but that's the early cycle. it is not going to make

let's take a look at home builders, fha, government issuer of home loans lowered the annual insurance premiums. that is good news for first-time home buyers particularly. you see what that is doing to the home building group and companies on the higher end doing better today. commodity stocks doing good. they have had a terrible few months. cliffs vale alcoa reporting. the oil stocks are mixed. big names are genuinely to the upside. we see drillers like diamond offshore. i call energy mixed even though oil is stable. >> i'll see you again in just a little bit. uptown to times square. bertha coombs is standing by at the nasdaq for us. >> apple higher today after closing up just by one penny yesterday to break the five-session losing streak. a number of blogs talking about the apple watch coming out perhaps sooner than expected. it is really a story about bio tech once again. alkermes with back-to-back studies yesterday one on a drug for depression and this for schizophrenia. 7% gain today. overall bio techs today bouncing back. the sector back in the green today. this continues to be t

fha fees may come down and consupercon consumers feeling flushed but that will lift the home industry out of recession levels because mortgage rates plummeted and affordability is getting better and better. i bet this group moves up on lennar. ppg reports and this looks like what nelson pelts, the activist investor, more on that later wants dupont to look like. played to ppg's strengths, coatings and paints. i bet ppg blows the numbers away because it's fuel here saving a fortune with the price of energy down. last time it report add terrific number and what happened? it got hammered and i told you to buy it. darn thing roared. i want you to get ready for a repeat situation. on friday we hear from goldman sachs. this quarter will be good because there is such a lot of volatility. remember what i said at the top? yes, it's volatile. roller costar is good for gold man, that's terrific news full disclosure once worked at a. my favorite now, sorry gold man is morningen stanley because i love the wealth management business and i'm not that thrilled about government intervention which is so

unveiling rate cuts on fha loans saying they will promote homeownership. >> over the next three years these lower premiums will givendreds of thousands of, more families the chance to own their own home. melissa: yeah. no, no we didn't say that exactly right. what they're doing they're cutting insurance premiums on your mortgage insurance which is very interesting to me, to make it more affordable. this is backstop when people default on their mortgage, is the insurance. >> these are price controls. another attempt we government to set prices, to set prices in the market and it has failed time and again. every time the government whether setting price controls on bank fees, on interest rates or on salaries it doesn't work. it is that simple. >> didn't take the opportunity of the housing crisis to ask ourselves, in the hell are we doing having the federal government be default backstop of all mortgages? doesn't make sense of the it is unnecessary. it creates bubbles and really bad kind of sense of risk-taking out there. we're getting back into it now. people are buying houses with very

this whole fha mortgage premium letdown has boosted this group substantially, so this is a really interestingtor to look at. for now it's a little bit of a balance. it's tough to make too much of this going -- cheryl: well, yeah, you don't want to put too much into it, but social security -- it's certainly nice to see the markets coming back. bill, let's talk about the s&p here. we showed the chart just a moment ago, gained more than 1% yesterday, today another strong day for the s&p. same question to you. do you think this is fed-based, do you think it has something to do with what's happening overseas? what is on your radar right now and with the s&p as well? >> well, it's a combination of a couple things. the fomc minutes made everybody feel warm and fuzzy yesterday. actually, the s&p selloff reached 5% exactly. i think right there got a lot of people interested in buying, asset reallocation, some people kind of wiping away some stocks and equities they don't like, reallocate lower prices to ones they do like. greece fears, the fact that there's nothing new this week, i think we started of

and what was striking is justice scalia was more skeptical of texas's argument that fha didn't cover despairat impact. the law was narrowed on how to use despairat impact and what would be the purpose of narrowing if the congress doesn't intend for some types to be covered and that was encouraging civil rights groups said to them. >> we'll be watching. thank you, zack roth. >>> and coming up the president said the state of the union is wrong but the speech lifting up the middle class said some were left out. we have an all-star panel to see what the president did say and didn't say. so plus the good the tan and the legacy. your reaction to the president's swagger-filled speech. ♪ the bold nissan rogue, with intuitive all-wheel drive. because winter needs a hero. now save up to $1,000 when you finance the 2015 nissan rogue. ♪ i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn. ♪ turn around ♪ ♪ e

he will offer to cut premiums on fha guaranties by half a percentage point. that is exactly the kind of thing that got us into the housing bubble to begin with. exactly the kind of problem that generate ad huge taxpayer risk. that kind of temporary stimulus for the housing market is not the solution. gerri: i agree. thanks for the preview of that housing speech. doug, good to see you. >> good to see you. gerri: well, on to a different kind of story. this is about pet treats more of a consumer focus here. walmart refusing to pull pet treats made from china off its shelves. despite the concern that the treats sickened or killed a thousand pets since 2007, the biggest retailer is holding firm. with more on this the medical director at the veterinary emergency referral group here in new york city. great to see you. you have the cutest dog with you. tell us the dog's name. >> cokie, singing frog from puerto rico. gerri: what a cutie. you have to be concerned about these pet treats. do you treat dogs that have eaten these pet treats? >> not only have we treated dog

we're already starting to see refinancing, and we'll probably see more now that fha is lowering its mortgage insurance premiums. >> has there been any proof? i've speculated on this. it may be completely off base that refinancing will ultimately hurt home sales later as people feel sort of locked in or almost trapped by their too low mortgage? >> generally when rates rise, it's because the economy is improving, which improves purchasing power and can help more people into homeownership, offsetting some of the effects of higher rates. it's hashed to say overall how important lock-in is going to be. the good news for refinancing now is it's economic stimulus. it lowers people's housing costs right away and gives them more money to spend on other things. >> you were taking a moment ago about the importance of the first-time home buyers. the gals and guys that need to move out of their parents' homes. millenials don't own a credit card. they can't really build a credit history to be able to get the loan in the first place. how much of that is an issue still? homeownership is still a few years aw