>> obviously the home of fha and jenny may fha has a portfolio of $1.2 trillion so it is over $3 trillion it is an important player with the whole discussion of finance reform. also fha really focused on the first time homebuyers with minorities and people who frequently who have not benefited as much from the private sector lending facility. and we must tenure that strong component to realize the american dream. also in terms of making sure fair practices prevail that is something we are concentrated on to make sure that we maintain the financial stability such as the 2% capital ratio and things have been done to make sure that we maintain that against popular demand. >> senator brown? >> you began testimony by saying 1.4% last year's request it is a yes or no answer but isn't a 14% cut from fiscal year different from 2017? different from 2017? make it is an increase from the proposal organized last year that one would charge mandatory minimum rent what is the annual income of a typical family affected by the policy change. >> i think the number you are looking for is about 9,800,000. >>

>> hud, obviously, is the home of fha and ginnie mae. fha has a portfolio of $1.2 trillion. ginnie mae 1.3 trillion dlas. talking over $3 trillion. so obviously a very important player in the whole discussion about finance reform. also, you know, fha has been the one who has really concentrated on first time home buyers on minorities and people who frequently have not benefited as much from the private sector lending facilities. and we must continue that strong component if we want these people to it be able to realize the american dream itself. also, in terms of making sure that fair housing practices prevail throughout our system, that's something that we are very, very much concentrated on. and making sure that we maintain the financial stability of the system with such things as the mandated 2% capital ratio. and things have been done to make sure that we maintain that against, you know, popular demand. >> thank you very much. senator brown. >> you began your testimony this year requests was 1.4% above last year's request. but i need a yes-or-no answer here because i hav

fha as opposed to conventional.now, what may work better for you as opposed to, you know, with a worked for me, you know? the particular situations and how much house they want, you know? where you want to move to, you know? so, i mean, i'm having those conversations quite often. >> okay. hi, i used to work in politics in georgia and one of the main things i saw as far as taking housing away from people was the privatization of tax collections. and i was wondering if you all have had any experience with that, if the accountable government officials just outsourced the collection of past due property taxes, then it makes it easier to avoid accountability for pissing off a big group of people that they screw over. >> i'm not familiar with that myself. >> neither am i. >> neither am i. [laughter] >> 0 for 3. it's a great question and keep it in my back pocket for a story, maybe. anyone else? >> hi, i'm debra cole. i was wondering did that exactly end the contract buying process? were other home owners going forward, we

there are products out there like fha that people can get into and pay responsibly. we just have to make sure that that responsibility threat is through the entire market, both government loans and private loans that are coming out. >> i would guess you would say this is not reminiscent of 2008. maybe not of 2005 when you were starting out what does this remind you of >> you know, we're in a whole new normal inventory is so tight. i mean, the one saving grace in these little specks of subprime is it's so hard to get a mortgage now they're not likely to take off because the market is so competitive. especially in cities it's really hard even with cash to find the home of your dreams. >> if supply is the problem, what needs to happen to get more construction usually demand is enough to make -- to spur construction and have more homes coming in. why is that not happening? >> builders are scared they were also burned during this process but there are three main reasons. there's not enough labor, there's not enough land, there's not enough financing now with interest rate

fha can no longer tolerate putting taxpayers at risk.assessments such as these are potentially dangerous for our fund and may have serious consequences on a consumer's ability to repay or when they attempt to refinance their mortgage and sell their home. thank you for that decision, mr. secretary. i want to point out to you, though, that the senate recently passed the economic growth regulatory reform and consumer protection act which included language from my bill that would subject these scam loans to the truth and lending act. and n your opinion, does that represent a positive step forward for the consumers and the taxpayer? >> that's a huge step forward, and i want to thank you for taking the lead on this, because it was really you to who brought to my attention in the first place, and we did act upon it. and i do appreciate the fact that there is recognition that we actually do some good things. >> thank you. and i hope the house passes it and the president can sign it into law in short order so when vulnerable consumers are targete

[laughter] but just know your options and what is out there fha opposed to conventional.may work better for you versus what works for me or your situation or how much help they want or where you want to i'm having those conversations quite often been a guy used to work in politics in georgia and one of the meetings that i saw as far as taking housing away from people when the privatization of tax collection have you had any experience with that? if accountable government officials just outsource the collection of past due property taxes and make it easier to avoid accountability for kissing off a group of people that they screwed over. >> i'm not familiar with that myself. >> i don't know. [laughter] that's a great question i will keep you in my back pocket. >> i am just wondering in the contract buying process were other homeowners going forward with a offered negative merges or did they just ease the terms or do they continue? >> my understanding i was not there at the time but once the matter was being resolved from the original group of homeowners through negotiations

force winds across eastern areas, and it is going to feel cold, more like a february day than a day fhaspray on the roads. look at these temperatures. five degrees in birmingham! and credible, isn't it? further north and west, for scotland and northern ireland, it will not be so and northern ireland, it will not be so bad. the dregs of that system is still with us on tuesday across eastern areas. the rain turning lighter but we will still have chilly winds. another weather front moving off the atlantic into western areas. between these two areas of rain there should be a fair amount of dry weather and sunshine. temperature still on the low side for this time of year but starting to slowly improve. well, they can get much colder. that improvement with the weather will continue with their week ahead and into the weekend, with temperatures in london actually recovering and looking at the high teens as we get into next weekend. so the weather is going to be quite cold and cloudy for the next few days but monday across eastern england it looks rotten. hello. this is bbc news with carrie grac

i'm looking at the regulations and they talk about the fha maintaining neighborhood stability which nookay? it's an education but i'm convinced that secretary romney was probably and i knew about half of the secretaries over the years and i worked with jack kemper is a good friend and -- everybody wanted to do the right thing but very few people did. secretary romney, i think, went way out and as far as he could go and i respect his legacy but the people were committed to the status quo and hud is the top bureaucracy. let me say this. i've been in washington a few years and there is a force in this town called lobbyists. they generate over 6 billion a year in revenues. i was correctly quoted that at its worst government is about deception and power is about abuse. you don't the change in the demographic patterns because the desire for the change is not there. there are not enough black people in the united states that scare all the white people that are scared. we don't have enough black folk to scare each other. okay? i don't get it. i never quite understood the resistance to change.

history of discriminatory practices towards low income americans and americans of color from the red line fha practices, even recently discriminatory practices of the mortgage business. i've seen technology as a promise to democratize our nation, expand access, expand opportunities. unfortunately we've also seen how platforms, technology platforms like facebook can be used double down on discrimination and give people more sophisticated tools with which to discriminate. in 2016, propublica revealed advertises could -- advertisers could use a users race to market categories to potentially discriminate overall against facebook users in the area of housing, employment, and credit. echoing a dark history in the country. also in violation of federal law. in 2016, facebook committed to fixing this. the advertisers who have access to the stated fixing it but unfortunately a year later as propublica's article showed, they found the system facebook built was still allowing housing as without applying these new restrictions. facebook then opted into a system that is similar to what we have been talking

of discriminatory practices towards low income americans and americans of color from the redlining fha practices even more recently discriminatory practices in the mortgaging business i've always seen technology as a promise to democratize our nation, expand access, expand opportunities, but unfortunately we've also seen how platforms, technology platforms like facebook can actually be used to double down on discrimination and give people more sophisticated tools. now, in 2016 propublica revealed that advertisers could use ethnic affinity, a user's race, to market categories to potentially discriminate overall against facebook users in the areas of housing, employment and credit echoing a dark history in this country. and also in violation of federal law. in 2016 facebook committed to fixing this, that advertisers who have access to this data to fixes it a year later as the article showed they found that the system facebook built was still allowing housing ads without applying to go forward without applying these new restrictions that were put on facebook them opted into a system that'

that was layering risk on risk >> reporter: now, carington mortgage with fha loans expanded into nonprimepace reaching out to 20% of americans with scores of less than 600, as low as 500. today's average borrowers are in the mid 700s those in foreclosure are okay or with a history of late payments, making loans up to $1.5 million and catch out refinancing up to $500,000 you can use bank statements to verify income rather than tax documents. there's demand from borrowers and investors. back to the future again carrington says no they will underwrite each loan m manually accounting for risk if you are high risk, you'll have a larger down payment or cash reserve and interest rates will be higher much more on the new nonprime, kelly, on cn prbc.com >> got it. are those cherry blossoms behind you? nay are beautiful. >> it's not snow >> thank god for that. diana, thank you very much let's dig deeper into whether this nonprime issue is something to be concerned about or interested in. joining us now, marcus stanley at american for financial reform, alongside sam dunlock, senior portfolio manager