we're the largest fha's lender in the country.uality lowest default rate in the country. we're a power jd award winner. fha is projected to receive $5.7 billion of net profit of insurance from our loans in 2007. after three years after harass from the doj, review of 80 million documents of team members, the faulty analysis on the 55 loans under the 250,000, we had no choice but to take action when the doj demanded that we make public admissions that are blatantlily blatantly and ask us to pay a penalty that they can't explain to us or face legal action. gerri: i think people would be shocked to understand that you are the biggest lender in the country. the biggest fha lender in the country. i don't think anybody knew of quicken loans ten years ago. here you are, number one. my question to you coming out of this lawsuit is this, is it kind of what you termed harassment the government is giving you right now, the department of justice is giving you right now, is this what has driven other banks out of the mortgage business? >> it's

they're cleverly worded that make you think they're from the fha or va or some kind of official governmentization to you. that's an automatic tip-off that someone is playing a game. but the bigger hassle i'm worried about is when a lender makes a deal offers a deal to you, either by mail or on a website they solicit you in with a great rate, and somehow when you go to get that great rate, it's never there. and it's all about trying to get you to call. gerri: any homeowner can relate really to both those situations. this issue with the letterhead fha, often they say you can be part of a program that the federal government is offering that will help you save money on your mortgage loan. in fact, maybe the program never existed. clark: right. gerri: there's some of those. you have to make sure you're dealing with someone reputable out there. if you see this logo don't pay attention to it. the likelihood is that these guys aren't any good. they know that. people have been fined for doing that. clark: so here's the real problem in the mortgage market. you have the shady characters. even when yo

i think the fha is continuing in that path.ld like to see it go faster and deeper, but it is certainly continuing. that is an important time for moving away from all of this taxpayer support in the mortgage market. stephanie: we spoke to chuck grassley last week, who is up in arms saying there is not enough transparency. he does not feel like he's got good insight into what is happening there. and we know hedge fund activists like bill ackman are involved. ed: i think that is a big fight and i will leave that be. but when the governor ships were established in the -- in 2008 both the treasury and leadership may clue that the ultimate resolution of these conservatorships will require action by the congress of the u.s. i think it's important for congress to legislate the end of these conservatorships and a new housing policy for the country. stephanie: why do you think they haven't? why are we waiting so long? ed: in the early years there was a lot of concern in the market and concern over weakness. after that, i think it is poli

the fha, the government ensurer of home loans lowered the premiums at the beginning of the year and fannie mae and freddie mac launched new loan products g 3% down. as of last month freddie mac allows the down payment to be gifted. in other words, no homeowner skim in the game. the new options are behind a jump in montgomery applications to buy a home compared to a year ago. applications for government backed loans are up 17% in the last month. but the new options are only going to the best borrowers with high credit scores and low debt levels. that part of lending has not loosened at all. >> i think we got too risky. you knock the barn after the horse has escaped and we're doing the same thing now and i think it has been done repetitively over time. >> to make matters worse. rents are pushing ever higher. seeing the strongest two-month stretch in four years. that is because more p int apartments pushing occupancy to the highest level since before the recession. on the bright side they are moving in because they are finally getting jobs. for "nighlty business report" dia in washington. >>>

quicken requested inflated appraisals and the government said knowingly fudged incomes to get fha insuranceimately that costs taxpayers millions of dollars. >>> comcast is planning to abandon the $45 billion merger with time warner cable. the reason is government scrutiny. the deal would have reshaped american media and given comcast control over the market for broadband. comcast is the number one provider and time warner would have provided more customers in new york and los angeles. sources say the change of plans could be announced later today. a bombshell there. >> time warner cable not associated with our parent company which is why i can make fun of the deal. the results in your service will be negligent. alison kosik, thanks. >>> "early start" continues right now. breaking overnight. more than a dozen students hurt when their high school concert stage suddenly collapses. look at this dramatic video. we will have the details of what happened next ahead. >>> the white house apologizing after hostages are accidentally killed in a drone strike. we have team coverage breaking down the mis

some fha loans with a little as 3% down, some with a giveback of 3% are we doing the things that got us in trouble? >> you are right, it could be a slippery slope if we're not careful. the question is where do we draw the line? around subprime. neil: not going to be these folks. >> well these folks are not -- just take it back to the 1930s what happened. people lost their homes, they closed up and drove out west and rented for many, many years. neil: how many years, more than 7. >> much more. neil: you're saying wait more than 7 years. >> i don't think the cycle of the credit crunch is over. and to jump in with all the deficits that municipalities have the government has and what's going on in the school system is not a good time to buy a house. neil: do you think, chris, looking at it that you would look, if you were a lender more severely at that pool of applicants? >> absolutely. the last thing i want to do is increase our rate of default or other problems. absolutely i would. if you flip it around for the person potentially sniff are around. we've seen housing affordability get b

peters was the first female administer of fha and she held that position for four years. >>> rise and shine. time to get your friday started off right with this beautiful sunrise over the city. thanks for waking up with us. i'm nicaragua. >>> i'm -- i'm nick giovanni. >>> i'm andrea roane. the whole gang is here. larry miller has your traffic. allyson and erica have our weather. >> i've been on the weather terrace several times this morning and it's cold out there, with that breeze especially. >> should have brought a thicker jacket. >> i should have brought the thicker jacket. >> you're going to need it this afternoon. we're for the getting much warmer than yesterday even though we'll see a lot of sunshine. our weather watcher from wheaton said it's only 34 there. it is cold. it is a gorgeous start from our michael & son's camera. a lot of sunshine today. so different from yesterday but not temperature wise. winds out of the north at 15 miles per hour gusting up to near 20 so another breezy afternoon. the winds will subside tonight and that will leave the possibility of a little patc

. >> fha loans not in the expensive parts of the country. >> credit score has to be high. >> you're notget a lone with a credit score at 625. you have a job you want to put down roots they desire to be a home owner renting has become so common, vacancy rates are down so landlords are making bank. now the renters can jump into the housing market. >> it's jobs, jobs, jobs, always is. you can be off to the races. >> if you have a job you're more confident and want to put down roots. they didn't have the that five years ago. >> kind of like the iron man of real estate. >>> are we so focused on these guys getting news? we're taking our guys off the guys who already have them and they're making more of them. good. very good. you see something moving off the shelves and your first thought is to investigate the company. you are type e*. yes, investment opportunities can be anywhere... or not. but you know the difference. e*trade's bar code scanner. shorten the distance between intuition and action. e*trade opportunity is everywhere. . >>> forget about iran getting one nuke because north korea r

most reverse mort gangs are offered through hud and they're guaranteed by the fha. >> okay, so what are new rules now jill? >> okay, now before yesterday, applying for reverse mortgage was pretty easy now like applying for traditional mortgage. reverse mortgage borrowers financial assessment test, they have to prove they've paid their taxes their homeowners association fees, and other property related charges, on time for at least the past couple of years. >> now you have back up, monthly overview every expenses cash flow, tax records. >> out of curiosity, what happens if potential bore over ers fall short? >> if you fall short it doesn't mean it is all over, but as a reverse mortgage e you may be required to fun something that the government is calling a life expectancy set aside. will basically take a bun of the money from the loan, put it into separate account makes sure you can pay your future tax and insurance obligations. think of it casino of like the escrow account on conventional mortgage, you pay your property tax and homeowners insurance. rules really mean fewer people will q

right now there's underlying strength in the labor market affordable mortgage rates and reduction in fhato bring more first time home buyers into the market nationally. we're also seeing a new trend, boomerang buyers. these are the homeowners who are put out in the financial doghouse who could be returning to the market. >> tell us more. who is the boomerang buyer? >> reporter: from 2007 to 2014 realty track saints 2014 realtytrac says millions of people loves their homes. this year we'll see the first wave of buyers returning to the housing market after the credit reports clear after 7 years. this could be up to half a million presuming there are no other major lingering credit issues, many should qualify for a mortgage now. but remember, even if just half of the total potential boomerang buyers do purchase a home, it could put a spring into the housing market recovery. if you are ready to buy a house, it's time for you to go to jillonmoney.com. i have the ten home buyer mistakes to avoid. >> you always have good advice. all right, jill schlesinger, thank you. >>> many women who have on

, underlying strength in the labor market we have got still affordable mortgage rates, and remember fhaeduced borrowing requirements and costs on many of their loans. that is together all that is supposed to bring in more first time home buyers in the market. but here's something new, boomer rang buyers yeah they were thrown out into the financial dog house when they were losing their homes in the recession, well, they are coming back. >> tell us more about these boomer rang buyers, who exactly are they. >> i love it. it is from 2007 through 2014, reality track says that 7.3 million american lost their homes to information closures and short sales. remember these events can remain on your credit report for up to seven years. so now, this year is the the first wave of these buyers returning to the housing market. think about this there could be up to a half million boomer rang buyers in the housing market this year alone. presuming there are no other major credit issues lingering many of these folks should qualify for a mortgage but even if just half of the potential buyers purchase a ho

>> well, i mean, you know, dropping the pmi with fha was that pretty good move. as far as making housing affordable, really what we have to do, we have to make it more a abundant. we have real liquidity issue. lenders don't want to lend. they have a ton of overlays on products they're offering. essentially only people with the best of the best credit. liz: right. >> high reserves and full doc loans are getting deals. we're looking lending volume basically goes back to the same volume in 2008 when the housing market was on fire. so the market has fundamentally changed but we might not be in a housing recession but we're in a lending recession if not depression right now and that's big problem. liz: frank, we've got new home sales, highest rate in seven years after the housing implosion. wouldn't this stand to reason some of these plans that the government put into place are doing well? or is brian right? i know i had trouble getting a mortgage. bernanke had trouble refinancing. come on. >> well, you mentioned it was new home sales, is that what you said? liz: yeah

the government really got much more involved in the 50s when they actually started adjusting the fha the federal housing administration's standards in order to improve housing in the united states, or increase the amount of housing sold in the united states in a desire to help the economy. that's when we sort of got off the rails because once the government started using housing as a way to improve the economy in other words, to improve the american people's view of their government and how successful it is, then it became a political issue. instead of what it had been before which is simply a question of making sure that the market function well. >> host: this stretches across democratic and republican administrations, the interest in housing and encouraging housing activity. we are do you see the more recent turning point in this development? >> guest: well i think the key turning point here at least from my perspective, was 1992 when congress adopted something called the affordable housing goals. they were under a great deal of pressure at the time to make sure that the borrowers

the government really got much more involved in the '50s when they actually started adjusting the fha'sl housing administration's standards in order to improve housing in the united states or increase the amount of housing sold in the united states in a desire to help the economy. that's when we sort of got off the rails. because once government started using housing as a way to improve the economy, in other words, to improve the american people's view of their government and how successful it is then it became a political issue instead of what it had been before which was simply a question of making sure that the market functioned well. >> you can watch this and other programs online at booktv.org. >> were you a fan of c-span's "first ladies" series? "first ladies" is now a book published by public affairs looking inside the personal life of every first lady in american history. based on original interviews with more than 50 preeminent historians and biographers lesh details of all -- learn details of all 45 first ladies that made these women who they were. the book, "first ladies: pre

they are guaranteed by fha and are given through hud. >> what are the new rules jill?u know, before yesterday, applying for a reverse mortgage was pretty easy. you kind of just sort of presented it and like said i own this house give me my money. today this process is going to be much more like qualifying for a traditional mortgage. borrowers are going to have to complete financial assessment tests and they've got to prove they paid their taxes. and homeowner fees and other property related charges for the last couple of years. and they're going to have to produce documentation, tax returns, pay stubs if they're still working, bank statements and an overview of their monthly expenses and their cash flow. >> so what happens if potential borrowers fall short? >> reporter: well. it doesn't mean you're shut out it. does mean that you could be required to fund something called a life expectancy. what that would do is it would take a portion of your loan proceeds and put it into a separate account so the government would ensure that funding is available for your future tax a

ask -- another one of the deductions that people forget they tended back is the mpi if you have an fha loan. i did not realize that until a couple of years ago. when i was online looking at the deductions that could be taken. that was one of them. i could only go back as much as three years in order to get that back. they did pay it back with interest. during those three years. that was when i have friends that were in the same boat that did not note that was a deduction they could take. guest: it is a relatively new deduction. one i have never understood, if you put less than 20% down when you get a loan, the bank forces you to buy insurance to ensure the bank against you defaulting on the loan. it protects the bank and requires -- four years -- might only be three years ago congress allowed that deduction allowed -- along with the interest. it should show up on your 1099 from the mortgage company. host: connecticut sheila, good morning. caller: i have a statement and a question. senator blumenthal had an article in the norwalk paper -- $13 million owed to taxpayers and it will not he

we are better off looking at maybe some changes at fha or at fannie and freddie.ng the credit box but it is an entire new box. before we didn't even have a box. now we have what you would call a box with the qualified mortgage rules. >> does that mean that the chasm between the affordability for the higher end of the market and the lower end is growing? >> yes. and partly for these reasons but also just because we've looked at the real estate recovery for the past five years has been one for the wealthy. they're either waypaying for cash and they're the ones able to qualify, get these very low rates, invest in property, because asset pritssces go up, they get the asset gained and the very low borrowing costs, oftentimes not even investing in the property but in the stock market. >> i have to disagree on just one point there though. you're saying that it's been a recovery only for higher earned. yes, they have the cash yes, i'll admit a lot of these loan options that i just mentioned are for the higher net worth borrowers. but you have he aseen a lowering of premiu

think today about fico trying to extend credit to lower quality borrowers, even some of the moves that fhae fees and that sort of thing, there's not much willingness to change some of the practices that got us into trouble in the sense that it may be different this time. >> the worry is, is there any way we can generate sustainable consumption spending without channeling credit through the subprime auto market we have a lot of people saying credit is too tight. at the end of the day, household income growth is pretty weak. so i think that's fundamentally the problem we face in the u.s. >> it sounds -- i don't want to put words in your mouth. you're embracing the secular stagnation the idea absent credit bubbles the underlying rate is flat or in recession. would you subscribe to that idea? >> the evidence is overwhelming. if you look from 2002 to 2007 we had a tremendous boom in economic activity driven by housing, yet we never got above 3% growth. if you think about construction people spending against their homes, it's quite incredible how much economic activity housing generated. >> ther

one note though government loan volume like fha and va which tend to be the first time home buyers were who are these nonbank lenders? not all of these mortgage apps are going to the big banks. >> no they are not. the big banks have been pulling back. especially in home purchase loans, and that has opened the door for nonbank lenders to pick up the slack. take a look. their share of these loans more than doubled in the past four years from 14% to market and now nearly 38%. that's according to inside mortgage finance. names like quicken, loan depot, penny mac. they're being more aggressive in terms of rates and underwriting, and grabbing business from wells fargo and jp morgan chase. some have an angle like movement mortgage in charlotte founded in 2007 just before housing collapse. they claim they can close your loan in just a week versus the average 45 days. no today's ultra competitive market, timing is huge. >> our building as it hits in the shadow of a bank of america headquarters building, and we've been able to gain number one purchase market share in that city inside of five year

originated and improperly wrote or caused submission of claims for hundreds of improperly underwritten fha insured loans. interestingly this comes on the heels of quicken filing its own complaint last week against the department of justice. quicken's ceo said that the department of justice's investigation here is a shame. melissa, back to you. >> thank you so much eamon javers. great job, brian. i'll see you all tonight on "fast money." straight over to "closing bell." >>> hi everybody and welcome to the "closing bell" on this thursday, bill. as we eye new highs across the major indexes, i'm kelly evans down here at the new york stock exchange. >> i'm bill griffeth back here at cnbc headquarters. this is a day when you think about it more than 15 years in the making. the nasdaq on track finally to end the day in uncharted territory. trading above its march 2000 all-time high. that close was at 4,0548. set back march 10th of 2000. we're a little less than 16 points above that level. the other number we're watching this hour the s&p 500 also flirting with new highs. the previous all-time hig

originated and improperly wrote or caused submission of claims for hundreds of improperly underwritten fhathis comes on the heels of quicken filing its own complaint last week against the department of justice. quicken's ceo said that the department of justice's investigation here is a shame. melissa, back to you. >> thank you so much eamon javers. great job, brian. i'll see you all tonight on "fast money." straight over to "closing bell." >>> hi everybody and welcome to the "closing bell" on this thursday, bill. as we eye new highs across the major indexes, i'm kelly evans down here at the new york stock exchange. >> i'm bill griffeth

ask -- another one of the deductions that people forget they tended back is the mpi if you have an fhaoan. i did not realize that until a couple of years ago. when i was online looking at the deductions that could be taken. that was one of them. i could only go back as much as three years in order to get that back. they did pay it back with interest. during those three years. that was when i have friends that were in the same boat that did not note that was a deduction they could take. guest: it is a relatively new deduction. one i have never understood, if you put less than 20% down when you get a loan, the bank forces you to buy insurance to ensure the bank against you defaulting on the loan. it protects the bank and requires -- four years -- might only be three years ago congress allowed that deduction allowed -- along with the interest. it should show up on your 1099 from the mortgage company. host: connecticut sheila, good morning. caller: i have a statement and a question. senator blumenthal had an article in the norwalk paper -- $13 million owed to taxpayers and it will not help

we have someone at the fha doing a much better job at these programs.lped so much over some of time. host: let's hear from kevin and indiana. a republican. caller: yes. i appreciate your time here talking about the issues. my question is -- during 2008 at that time, i was working as an electrician. i didn't understand that if our taxes kept going up and up and you couldn't afford these loans some people who got the loans that maybe it wouldn't today -- some of them are still in their homes. some of them are still successful. i just want to know how much of an impact do you think, with everybody's talking about gas again being five dollars a gallon back in 2008, why did we act like there were no resources and no way to address financially about the gas situation? six years later, we have all this oil. i think when the american people call in. i'm a business owner. i don't have to go to my factory job anymore any day. i think that's what people question the federal reserve. they question the senators. they question the process of democracy, which is what