by the end of 1973, tens of thousands of homes that had been purchased with fha assisted a low income homeownership programs had fallen into foreclosure. in may of 1974, hud was in possession of 78,000 single-family homes that have been foreclosed upon. tens of thousands of more homes were in default meaning they were one or two payments from falling into foreclosure. congressional investigations into impropriety in homeownership program showed federal appraisers were taking bribes and inflating the value of dilapidated homes by three or four times the actual worth. local mortgage bankers also were accused of accepting bribes to ignore inconsistencies and paperwork in order to prove even more loans. this paper reports that reported on hundreds of federal indictments that identified local fha officials, appraisers, real estate agents and mortgage lenders that all involved in this window. but instead of focusing on the corrupt practices of the private sector at the heart of these programs, policymakers blame the poor conditions of the homes at the center of hud investigation on what he

make that loan and then they're gonna sell it to fannie or freddie or fha or whomever it is. going to be a buyer there. that's not going to change. if not a down the middle kind of potential homeowner with credit score loan-to-value ratio debt to income ratio you're not in the sweet spot of the loans the bank's gonna make that on their own balance sheet they're gonna take the risk. you may have a problem that might be more difficult for you. if you look at house prices relative to incomes, rents, things like that you think housing in america broadly speaking is a good deal right now? >> depends on where you are if you are out west, west of the mississippi house prices are very sharply very high relative to income and rent. valuation becoming an issue but with a downdraft in interest rates, that's going to give another jump up and house prices. here's what i say, abstract and from near-term things. the housing market, particularly for affordable housing, workforce housing, the plain-vanilla housing is vastly undersupplied, we don't have enough homes and we are not building eno

you can bet he almost, he probably opposed fha. certainly if anything out of a social ben, make the world better. glass was probably opposed. -- if anything had a social bent. he was honest. the best quota had to have a he react to the gold standard? when roosevelt first came in failing all over the country. and roosevelt ordered all the banks in the united states to be friendnd glass said to a the president of united states has no more right to close every bank in the united states than my stable boy. glass was always, he played country. too.l tinge there, bet he opposed most other things. >> [inaudible] mr. fink: i don't know. >> [inaudible] why he opposed what wall street was doing before the crash. was he against speculation in general? mr. fink: no. what he said. he wrote a new york times editorial. or letter to the editor which don't careid, i about speculation but it is using the federal reserve system for reasons i never intended. that's what he wrote. the federal reserve was his baby. and created with certain things get mo

make that loan and then they're gonna sell it to fannie or freddie or fha or whomever it is. there. that's not going to change. if not a down the middle kind of potential homeowner with credit score loan-to-value ratio debt to income ratio you're not in the sweet spot of the loans the bank's gonna make that on their own balance sheet they're gonna take the risk. you may have a problem that might be more difficult for you. if you look at house prices relative to incomes, rents, things like that you think housing in america broadly speaking is a good deal right now? >> depends on where you are if you are out west, west of the mississippi house prices are very sharply very high relative to income and rent. valuation becoming an issue but with a downdraft in interest rates, that's going to give another jump up and house prices. here's what i say, abstract and from near-term things. the housing market, particularly for affordable housing, workforce housing, the plain-vanilla housing is vastly undersupplied, we don't have enough homes and we are not building enough homes to meet th

probably not we have a much more diversified industry when i was fha commissioner in 2011, 80% were heldt of that was because other banks had collapsed and be absorbed by the larger ones. a report of 2019 that was referenced they actually couldn't call out any systemic risk of any independent more ganl banker. we need to have them regulated it's a far better system than it was back then. >> i would ask you, you talk about this risk to the system if there was a recession and people were to go into foreclosure. we're looking at the highest level of home equity in history right now. we have a severe housing shortage and investors really interested they would be able to sell their home in a nano second. is this really that much of a risk >> the issue again is like they said, prior to the great recession there's a couple of banks, the concern is having this much moving out of the banking sector it hasn't been tested. it hasn't been stress tested during recession and that's my only concern is making sure that we have the stress testing now to really try to understand where the risk may be in t

what can happen though is he can use the fha program and cut those prices and really steer more of the into the government and out of the private sector >> there's a lot of price controls in the sanders pl platform a cap on interest rates. cap on fees. at the atm to $2 not going complain, but that's the federal government saying you can't charge more than that and other, and federal rent control. regulating the price of apartments around the country. >> he is what he describes himself as a democratic socialist heshls corporations have too much power he has a requirement in there that companies give 20% of the equity to employees then employees be on the board of drirector rs he has a different mind set than what we're used to >> very much an activist government type. and his wealth tax rises up to 8% on wealth above 10 billion so that would mean i'm not going to cry for the person who has $10 billion. they would be paying $800 million a year in tax. right? >> i wish i had that problem i don't mean t i don't, but u those are the types of policies where we tried really high taxes in the

>> you have fha, 3.5 down for the mortgage so there are much, there are a lot of ways to get t into the mortgage market right now. it's a question of do you have the credit do you have the ability to repay, which is a big part of the market today and they're looking for having debt to income ratios, but if you don't show that amount you have per month coming in to go out, they're very strict. we had the ceo of amherst holdings saying the mortgage market is very tight with people who are freelancing or multiple jobs are having trouble qualifying because they can't show that income coming in in a way that somebody who has just one job does so it's hard to get a mortgage now, but with rates coming down, it should get easier, the question is is, do the rates pop up when the market recovers and that's likely going to happen. >> the dow down more than 1,000 points at the lows nasdaq down more than 3% rhtig now. we'll get a trader's stake on this action next on "power lunch. new york state is taking business to the next level. supporting innovative companies that will shape tomorrow and buildi

how many people can access a 3.5% down payment for an fha product?> well, there is no number to put on it obviously, kelby but there are a lot of people who can get 3.5% bank of america has its low down payment loan options, so it is not impossible by any stretch. it's just that mortgage lending is still pretty tight right now. the builders are helping people get into new homes they're finally starting to pivot toward that entry level market, the lower priced homes that they stayed away from after the recession. >> yeah. and home prices have been reaccelerating since the middle of last year we'll see if they move further now amid this drop in rates. we appreciate it diana is in washington. >>> epedia is cutting 12% of its force work now they have coronavirus. >> kelly, the chairman wasting in time in his plans to turn around the struggling online travel operator, laying off around 3,000 employees that's 500 from the company's brand-new seattle headquarters the job cuts weren't a surprise to analysts after he went off script on the company's earning's

your sense about how president xi and the central government are being perceived in this crisis this fhasus te them. >> president xi had been presented for e last seveal years as supreme leader, the man with all of the wisdom to run this country. t right new he's clearly the man on the hook. we're seeing the propaganda machine pushing this familiar narrative that if there had been any mistakes made it's because of bad apples at the local level who will be sort of rooted out by the central government, investigated, and anti-corruption kind of detected. in the meantime, president xi, as you say, has been touring hospitals and medical facilitien here in beijg. he was called the commander of the people's war against the epidemic today by the state media. they're very much pleg him as the general in charge. but there is that tremendous distrust of a lot of what the government is telling people, and people can see images, particularly from the worst-affected areas like the city of wuhan, where there are a lot of frightened, sick people, k they might have the virus, but when they get to, hospita

look at the legacy of the fha, the g.i. bill, the ways in which the federal government has systematically prejudiced against african americans and minorities. two, zoning laws that need to be cleared up that end up being a prohibition on the way that people can build housing stock and accumulation of wealth. three, issues around transportation. if you're trying to look at ways to get to work to get home to care for a child, the 111 bus in chelsea takes you an hour to go three miles. african americans spend 60-plus hours more per year on a bus than white people do in boston to get to work. 60 hours a year more just to get to work. these are the results of deliberate discrimination that have to be addressed and the federal government can do a lot about it and we need to. >> tell us a couple of things the federal government should be doing, senator? sen. markey: i've introduced legislation with elizabeth warren to construct three million affordable homes in our country that will reduce the overall price of homes by 10% if we d

look at the legacy of fha, the g.i.ill, the way in which the federal government has systematically over years prejudiced films and minorities. two zoning laws. have to make sure you clear then zoning law that a prohibition but the ways people can actually build housing stock and actually accumulate wealth. three, the issues around transportation. if you're trying to look at ways to actually get to work to get home, care nor a child, the 11 bus in chelsea takes you an hour to go three miles. african-americans spend 60 plus hours more per year on a bus that white people do in boston to get to work. 60 hours a year more. just to get to work. these are the results of deliberate discrimination that have to be addressed and the federal government can do an awful lot about and we need too. >> a couple of things the federal government should be doing, senator. >> well, i introduced legislation with elizabeth warren to construct 3 million affordable homes in our country. that will reduce the overall price of homes by 10% if we d

at fha, our safe transportation for every pedestrian step, my favorite, is helping transportation agencies address pedestrian crashes by promoting cost effective counter measures with with known safety benefits. these engineering counter measures markedly increase pedestrian safety. for example, when we install a pedestrian highway beacon at a crossing, pedestrian crashes go down by nearly 70%. just changing the timing of an intersection signal to give the pedestrians a head start before the light changes for vehicle traffic leads to a 60% reduction in pedestrian vehicle crashes at those intersections. when we add a sidewalk just separating the pedestrian from the road, we see up to 90% reduction in crashes involving pedestrians walking on that roadway. we know that one size does not fit all. and we are interested in working with our state and local partners to provide a variety of engineering options. rural needs are not the same as urban and we know this. and the bouts initiative by secretary chui makes clear everyone is a priority. and so we're focusing on a variety of engineering optio

employees who could enroll, we're talking just under 21% of employees take advantage of enrollment and fha plan. quick comments on page 5. we do offer voluntary benefits and that was three years ago maybe that we enrolled to all city and county employees. you seeing on the chart, there's some significant jumps from the 2019 to 2020 number. this report is looking at year over year enrollment from the january 1st date. we offered a mid-year special enrollment period last may. which was hugely successful. that's where a big percent of this increase in these voluntary benefits derived from. the ones that really are significant increases are critical illness and legal shield and group and life insurance. finally, on the bottom there on page 5, we're looking at vision premier enrollment. that's something we first launched in 2018. that's vo voluntary. it is available to all of our h.h.s. members. we have 17,847 individuals enrolled taken advantage of the vision premier benefit. those are some of the highlights overall looking at page 8. here we just see some of the breakdown across our plans. pr

employees who could enroll, we're talking just under 21% of employees take advantage of enrollment and fha plan. quick comments on page 5. we do offer voluntary benefits and that was three years ago maybe that we enrolled to all city and county employees. you seeing on the chart, there's some significant jumps from the 2019 to 2020 number. this report is looking at year over year enrollment from the january 1st date. we offered a mid-year special enrollment period last may. which was hugely successful. that's where a big percent of this increase in these voluntary benefits derived from. the ones that really are significant increases are critical illness and legal shield and group and life insurance. finally, on the bottom there on page 5, we're looking at vision premier enrollment. that's something we first launched in 2018. that's vo voluntary. it is available to all of our h.h.s. members. we have 17,847 individuals enrolled taken advantage of the vision premier benefit. those are some of the highlights overall looking at page 8. here we just see some of the breakdown across our plans. pr