in my article i talk about housing discrimination and the way the fha dispensed our home loans and how african-americans were discriminated. that's a specific act. it's not just the fact of being black. it's the fact that there was an actual government policy. it harmed some people and we could make recompense for that. that's a kind of direct one-to-one -- that's different than the squishy we really need more black and brown people more women. i mean that's nice but it's a very very different argument. >> it's funny. it sort of gets to my next transition in this respect because that squishy argument when hillary clinton and bernie sanders were asked about black lives matter the social media hash tag that took off, they both instinctively wanted to say all lives matter. and the women who founded the black lives matter movement were pretty upset about that. no no no you're missing the point. what are they missing? >> in making a statement, what they're arguing is that black lives don't matter. to say all lives matter. yeah that's very very nice but it doesn't actually recognize argument

we live in a world with fha and fannie and freddy. we have to try to make that world better. >> the time of the gentleman has expired. the chair now recognizes mr. royce chairman of our foreign affairs committee. >> thank you, mr. chairman, very much. and for the record, mr. secretary, one of my colleagues earlier asked if the gses have repaid the money that they have borrowed from the american taxpayer. the simple answer that my colleague tried to elicit was that payments they have made to the government now exceed the rescue funds they received. mr. secretary, i think you agree here, this is not the real answer, nor the real question. the real question is, have they repaid their debt to the american taxpayer? for that answer, i think we can go to the federal reserve bank of new york, that was asked that question. and they put it this way. they said should these figures be interpreted to mean that the treasury and therefore the taxpayers have been repaid by two firms should pay div dividends to their shareholders again? no. taxpayers

we have been working with the fha and the fhs say -- the fha and the fhfa. we must strengthen our resolve to pursue reform of the housing finance system. reform has brought greater fairness to credit markets by improving information. consumers benefit from new mortgage reforms which are shorter and less complex and make our for a home simpler and more understandable. similar reforms have been adopted or are being developed for student loans, auto loans, and payday loans. the effect is lenders must focus on extending credit on fair terms and in good faith. they must outcompete other lenders by offering better terms. the independent consumer financial protection bureau is focused on formulating and enforcing these rules. through these rules, they have established consumer protections preventing predatory behavior contributed to the financial crisis. it makes the financial marketplace work better for americans. it is putting a stop to discrimination and tackling abusive payday lending practices. in addition, we have put debt collectors under federal supervision

murray, in the september 2011 fha fee care program white paper it was recommended v.a. conduct a cost benefit analysis of contracting out the process of claiming as with other payor models like try care medicare, medicaid, blue cross, blue shield et cetera and their applicability for v.a. what was the rest of the cost benefit analysis? >> thank you for your question. i'm not aware of that being conducted. but i believe i'll ask my vha head of contracting activity if he is aware of that analysis. >> sir, i'm not aware of that analysis. >> mr. frye, any comment? >> i'm not aware -- i can't give you an answer on that. >> okay. mr. frye v.a. secretary mcdonald was publicly critical of you after the last hearing conducted by this sub-committee on may 14, 2014. the secretary -- is this 2015? >> yes, sir. >> i'm sorry may 24, 2015, the secretary stated that he was aware of the problems and characterized your memo as quote, just showing what he, meaning mr. frye needs to improve, unquote. he further stated, it is your, quote, responsibility to fix it, unquote. what is your resp

one way is to sell your loans to fannie freddie or have fha. so to me one of the twisted ironies of dodd frank is that one of the reasons for the public demand for action and passage was that the american public was asked to bail out the mortgage market but what do we have today as a result of dodd frank? over 90% of the mortgage market is directly on the backs of the taxpayer. the taxpayer is more exposed to the mortgage market today than ever in history. so again these things could have worked out well and i would note that barney frank that he saw the qm and it is the most significant parts of dodd frank. the liability was always going to be an issue and these provisions could have done something to reduce mortgage default, but as the regulators started along that path, they started out well including things like down payment and credit standards and ununfortunately the regulators caved to pressure and what ultimately ended up the qrm that barney frank was mishandled. >> so why is that necessary? one of the debates around the financial crisi

above that is fha, federal housing administration. above that, other agencies also doing the same thing, v.a., and some of the agriculture credit agencies also make loans. on the right, the black, is the private sector's contribution, which is about 24%. and we'll get to that in a minute. the remaining 24%, and that's the black on the right, of these mortgages were on the books of the private sector. and when all of these mortgages began to default, that is the ones fannie and freddie made or bought and the ones that the private sector bought, when all of them began to default in unprecedented numbers, fannie and freddie became solvent, as we know. and many of the financial firms that bought these mortgages also got into trouble. and some failed. now, instead of reforming the government's housing policies, which would have seemed to have been the right way to proceed here, the obama administration sought to punish the private financial sector with the dodd frank act, which was one of the most restrictive regulatory laws since the new

above that is fha federal housing administration. above that other agencies also doing the same thing, v.a., and some of the agriculture credit agencies also make loans. on the right the black, is the private sector's contribution, which is about 24%. and we'll get to that in a minute. the remaining 24%, and that's the black on the right of these mortgages were on the books of the private sector. and when all of these mortgages began to default that is the ones fannie and freddie made or bought and the ones that the private sector bought when all of them began to default in unprecedented numbers fannie and freddie became solvent, as we know. and many of the financial firms that bought these mortgages also got into trouble. and some failed. now, instead of reforming the government's housing policies, which would have seemed to have been the right way to proceed here, the obama administration sought to punish the private financial sector with the dodd/frank act, which was one of the most restrictive regulatory laws since the new deal.

you will have to sell to the fha. the banks are not doing this and loans.o focus on a qualified mortgage. tom: i want to go on the bigger and broader picture. you and whitney have been out front saying the industry is going to change. how many bodies are going out the door? do you have a working number? guest: on the transactional side i think you will see further reductions. i spent the past few days with axel weber. the bank will be so deep -- tom: where does retail go? we are talking 200,000 jobs nationwide? guest: retail branches? yes but on the investment banking side, the volumes have been relatively tepid. we have been fortunate to see a lot of smaller and medium-sized now. tom: to your foreknowledge do you have a better idea of the balance sheets of these banks? guest: when we talk about shadow banks we are not talking nonbanks to make loans or do leasing. we are talking passive the vehicles. you have to remember that when people prattle on about the danger of nonbanks. they are the one to take risk. brendan: the subhead on the article in the termin

one way, of course, is to sell your loans to fannie, freddie or have it insured by fha. so to me, one of the really twisted ironies of dodd-frank is that one of the reasons for the public demand for action and passage was that the american public was asked to bail out the mortgage market. but what do we have today as a result of dodd-frank? over 90% of the mortgage market is directly on the backs of the taxpayer. the taxpayer is more exposed to the mortgage market today than ever in history. so again these things could have worked out well. i will note that barney frank said about a year ago on the last anniversary that he saw the qm as the most significant parts of dodd-frank. the liability was always going to be an issue but these provisions could have done something that reduced mortgage default. but as the regulators started along that path, they certainly actually started out well including things like down payment and credit standards but, unfortunately the regulators caved to pressure and what ultimately ended up was a gutted qm and qrm that even barney frank says

you are looking at people who have to get that loan to afford that house. 20% down 3.5% down on fha.e not able to afford these higher prices which are only going higher because there is so little on the market. why so little? people still in a negative equity position. people saying i'm not going to put my house on the market if i can't afford that move up house. >> i was going to ask you that. what is it going to take to loosen this up supply? it's people not wanting to be displaced without somewhere else to go. the price keeping them from doing that. what forces do we need to balance out to get more supply on the market? >> you need home builders to build homes, to do their jobs. you look at housing starts we saw the number pop-up. it was all in multifamily rentals. we need to see much more single family home building. we need to see entry level home building and more supply coming from sellers who feel like there is enough out there for them to afford and buy and move up. it's a chain. there is so little on the low end to sale. you get to that rent price. when is it going to tip t

in san diego, a large california lender wells fargo could come in and fill the voigt and do a lot of fha lending. the regional impacts are less significant. i think they'll be much less significant in the next go round because not own the banking system is more national but the shadow banking system is starting to fill in holes and that's national and international and that will, i think, in the future, mitigate some of the regional hetero genatity. what those means for policy. point number one i think the paper's really good. and i think i agree with it. it makes a lot of sense to me. it's very intuitive. take that as given. this gets to the final point, this has policy implications. number one policy implicationing in economies that have regional, we have more aggressive monetary policy. this is patently obvious in the context of europe and european central bank. their regional dispersions are greater than the regional dispersions that exist in the united states and that would have argued for a more aggressive ecb than even the fed. and of course we got just the opposite, of course i t

more than 70% of the subprime and mortgages that led to the crisis were backed by fannie freddie, the fha and other taxpayer backed programs. liberals asked them, fannie and freddie, let's roll the dice just a little bit more. they did. and the taxpayer lost. we all lost. if you have to point to a root cause of the financial crisis, this was it. government housing policies. additionally the federal reserve did its part by maintaining a highly accommodative monetary policy that dramatically lowered interest rates and kept them low for a very long time and inflated a housing bubble. sound familiar to anyone? let's any examine another part of the left's narrative of the financial crisis, and the claim regarding quote/unquote, outsized risk being taken by financial institutions. the willingness to bear risk is one of the central ideas upon which society rests. risk is an essential element, not only of personal liberty, but of market prosperity as well. to take away risk from the financial system is to take away innovation, to take away opportunity for the common man to succeed. ladies and gen

more qualified borrowers have access to safe and affordable mortgages we have been working with the fha and the fhfa as they seek to end friction in the housing market and prevent clarity to consumers. we must also strengthen our resolve on comprehensive reform of the housing finance system. reform has brought greater fairness to credit markets by improving information. consumers now benefit from new mortgage disclosure forms which are shorter and less complex and make borrowing for a home simpler and more understandable. similar reforms have been adopted or are being developed for student loans, auto loans and payday loans. the effect of these reforms is that lenders must now focus on extending credit on fair terms and good faith. they must out compete other lenders by offering better terms not by finding a way to sell consumers product that they don't really need and can't really afford. the independent consumer financial production bureau the first regulator solely dedicated to defending americans is focused on formulating and commuting these rules of the road. the cfp p c has establ

>> fha is still tough. generally speaking things have loosened up.ill -- i was talking to a couple of guys. in indianapolis great place to invest. believe it or not. >> good deal. >> the big thing happened in vegas which we cover on the show is -- a guy bought a million dollar home for $8,000 in hoh sales. >> what does that mean sm? >> if you don't pay your hoh you can lose your home. and it can be bought $8,000. >> bob massi will premiere this week. >> congratulations. >> thanks for veal earlier. >> you're not kidding. he gave us veal. he'll be here all weekend. try the veal. >>> all right. i waited 20 years to say that. finally, it worked. >> you can finally retire. >>> meanwhile coming up. the new york stock exchange is about to start trading in one hour. will there be changes after yesterday's disaster. nicole joins us live from the floor. good morning, you're next. >>> and airline seats that face each other? how would you like to fly looking at -- i don't know me? grounded and shut down with new york airlines and new york stock exchange crippled

more qualified borrowers have access to safe and affordable mortgages we have been working with the fhaseek to address restrictions in the housing market and provide clarity to lenders on issues like put that risk and strengthen our resolve to pursue comprehensive reform of the housing finance system. reform hasreform has also brought greater fairness to credit markets by improving information. consumersconsumers now benefit from the mortgage disclosure forms which are shorter and less complex and make borrowing simpler and more understandable. similar reforms have been adopted or are being developed for student loans, auto loans, and payday loans the effect of these reforms is that lenders must now focus on extending credit on fair terms and in good faith , outcompete other lenders by offering better terms not by finding a way to sell consumers products they do not need and can't afford. the independent consumer financial protection bureau, bureau, the 1st regulator solely dedicated to defending americans from financial fraud and deception, is focused on formulating and enforcing these