the problem was the underlying mortgage securities.learly something wrong wrong with the system if all of these leveraged bets, hidden leveraged bets, caused a collapse in the financial system. >> it is something that we all need to look at and learn lessons from, and we all need to work together to understand that and design a structure in the future that works more effectively. >> my point is, the people that made these mistakes are the people you represent in your organization, and many of them sit on the board. >> mm-hmm. >> i mean, if they didn't get it right, who would? >> these people understand the nature of these products. they understand-- >> well, obviously, they didn't, or they wouldn't have bought them. they wouldn't have used them. >> these are very useful transactions, and people do understand the nature of the risk that they're entering into. but i'm not sure that-- >> if they're so useful, how come they brought down the financial system? >> because perhaps they didn't understand the underlying risk in-- nobody really s

the -- a eliminate l final no in mortgage application process. they had in the press release in 1994. they promised clear and flexible underwriting standards. it is another word for loose lending. that's what they mean. affordable housing is another word for cross subsidizes. that what it means. they were famous for that and well documented by the fhfa. the one that really was probably the worst that really political sized fannie is bob talked about open 25 fannie mae grew to 50 something. that was a huge cultural change and not existed before that. i can testify to that during the time i was there. notwithstanding the rhetoric and the goals. this trillion dollar down payment on transforming housing finance by showing america new way home, the book that jim johnson wrote was really an effort to do a more straightforward and mundane objective. stop in the unwelcome changes to the charter, by capturing the regular regulators congress and give copy use amount to affordable housing. it worked until the charter was changed on june 30th 2008 a mere wee

no, was previously with mortgage guaranteed insurance corporation, north american mortgage, asset-backed capital research, and wholesale access, a consultancy firm. tom issued early work with the increasing risk of fannie mae, about which he was correct, and, of course, was ignored. our second discussing, is a former executive vice president and chief credit officer of fannie mae so he has lived an important part of this history. as an aei fellow he is continued groundbreaking research of the contributions of government housing policy to the mortgage crisis. into this key research papers were submitted to the financial crisis inquiry commission. he's now developing policy considerations and options including countercyclical mortgage policies and improved understanding of real estate value through appraisals as steps for rebuilding america's housing finance sector. tom, your first and we're looking forward to your comments. >> good eating. it's a pleasure to be with all the. my thanks to alex and tragedy and the aei for sponsoring this forum. it's a pleasure to see bob again after a coupl

because i need to do it." >> the southwest has become an inland ocean of bad mortgage debt.e in arizona, a full 50% of houses are underwater, and next door in nevada, it's even worse. 65% of houses there are drowning, and the water's rising. and it's not just the southwest. more than 11 million homeowners across the country are underwater. it's estimated that number could double in the next year, which means nearly half of all american mortgage holders will owe more on their homes than those homes are currently worth. >> we've been through an event that none of us have ever experienced in this country since the depression. >> to try to stem the tide of foreclosures, the commissioner of the federal housing administration, david stevens, says the obama administration has set aside billions to give banks the incentive to help struggling and underwater borrowers with their mortgages. but banks have been slow to modify the terms of those loans. >> the fact of the matter is, these programs are designed to affect those who are most at risk, who are unable to make their payments, an

in this environment mortgage rates are very difficult to get a mortgage these days for a second home.instance, went to go by to properties last year, and i have really get credit in pretty good net worth. really dificult to obtain mortgages. i ended up paying cash for both of the properties. and 42 percent of the properties sold last year were paid for with cash in the second home market. so that tells you that the vast majority of buyers are coming in with cash. the people who are mortgaging, 70 percent of them but more than 20 percent down. even if you plan on getting a mortgage, your so going to have to have a significant cash position to be able to buy. gerri: serious, but the beauty is that you diversified investment portfolio, not just stocks and bonds. now you're in real estate. home prices have dropped and dramatically so. and as you said, mortgage rates. it does not get any better than this thanks for coming on. appreciate your time. thanks for educating us on this topic. >> thank you. gerri: is still to come, house flipping his back. the housing market in recovery, a cabe-tv

mortgages made to homeowners. since conservatorship, the amount of mortgages directly on the balance sheets of fri and fanny have declined but their role in financing u.s. homeownership has in fact shot up. today roughly three-quarters of u.s. mortgages are made or guaranteed by freddie and fannie. i have a bit of a rule of freddie and fannie after the was placed in conservatorship. i was on a freddie mac board of head of governance nominating committee. the first ceo of freddie put in place by the treasury department of the time of conservatorship quit after six months. we had to make a pitch to ed to take the job. it was fairly simple, and most challenging job that was a dramatic understatement. but the opportunity to do meaningful public service. freddie and fannie needed strong leadership and sticky guidance as the rehabilitated themselves and waited for the government to decide just what to do with them. i should still point out we are waiting for the government to decide just what to do with them and it's no

you mentioned mortgage interest reduction. a huge mistake to limit the mortgage interest deduction upon when the housing mket is providg growth for gdp. gerri: but it could happen. what would be the impact if the mortgage deduction were taken away, say, for everyboy. what happened to the housing market? >> iit were taken away would have a huge impact on anyone that has to buy out the mortga. gerri: how much with the mark to the housing g market cut down. and looking for facts and figures. the mark down 30%, 15, o would it have any impact at all? >> it would have a huge impact on prices, 6% and 15%. you can pick your estimate, but an enormous impact on hous of wealth. everyonedecline in house prices, 160 billion of household wealth. it would take a 6% to 8. gerri: i feel like we have not so much of already. to you. we talk of a lot about recovery, what could happen, what might forestall it. the elephant in the room is 31 percent of americans who are under water on their mortgage, no more than their house is worth, probably cann

they say a person getting a reverse mortgage must live in the home.e barrower is -- borrower is gone for more than 12 months the loan is due. >> we wouldn't want to violate hud regulations. >> the county got the reverse mortgage in 2010 and moved scalia in october of that year, and she hasn't been home since. when we visited in september, faded tags over the doorjambs indicated no one was inside for awhile. after hearing from the i team, hud is reviewing the case. >> she said i wanted to go home from day one. >> james is the court-appointed attorney. he said he objected to the reverse mortgage and doesn't believe the brother took advantage of her. even more important, a year ago a probate judge ordered talks to move lily back into her home. sullivan said he reached out, but the county didn't act. >> the county doesn't listen. the judge can't micromanage these people. the judge leaves it to the professional. >> if a person or an organization chooses to ignore the court order they could beheld in contempt and damage applied. >> he points out that someon

they say a person getting a reverse mortgage must live in the home.barrower is -- borrower is gone for more than 12 months the loan is due. >> we wouldn't want to violate hud regulations. >> the county got the reverse mortgage in 2010 and moved scalia in october of that year, and she hasn't been home since. when we visited in september, faded tags over the doorjambs indicated no one was inside for awhile. after hearing from the i team, hud is reviewing the case. >> she said i wanted to go home from day one. >> james is the court-appointed attorney. he said he objected to the reverse mortgage and doesn't believe the brother took advantage of her. even more important, a year ago a probate judge ordered talks to move lily back into her home. sullivan said he reached out, but the county didn't act. >> the county doesn't listen. the judge can't micromanage these people. the judge leaves it to the professional. >> if a person or an organization chooses to ignore the court order they could beheld in contempt and damage applied. >> he points out that someone

you get a reverse mortgage.must live in the home. >> why did one county move a 92-year-old woman out of her home then take out a reverse mortgage on her property? >> it's an issue more and more baby boomers are facing. as their parents age a county public guardian taking over, selling their home against family's wishes. the county is supposed to follow the rules. we found one case where they did not. >> my haunt love that had house, loved being home. it gave her memories of her husband. >> mondy says her aunt, 92-year-old lilly never wanted to move out of her house. she suffers from demenia. she and her husband planned to live out her last days here. >> my aunt would tell me your uncle said stay in this house. >> that is a promise lilly has not been able to keep. she says santa clara county took her aunt from the home and moved here into an assistive living facility. >> started as a family quarrel. adult protection service came in. >> some members of the family didn't like she and her father were living with lil

mortgage interest rates?in my remarks, the housing sector has been a major player in the drama. first, with the boom, and them the collapse, and now playing a role in the recovery as we hope. in terms of extending spending, the growth of the housing sector, you said beyond interest rate policy, but i have to mention, i think one of the strongest things we can do is maintain low mortgage interest rates. they are at historic low z awe owe -- lows as you know, and declined with housing prices across the country means extensive affordability now for people interested in buying new homes. now, the reason i bring it up is because there are positive posii namic that can occur here to the extent the housing market is moving in the right direction and there's increases in house prices, that, in turn, feeds back on mortgage lender decisions. one of the reasons they have been keeping mortgage conditions tight it that they have been afraid of further house price declines, a weak economy, unemployment, those sorts of thin

mortgages have performed terribly. the only make up 4% of the fha mortgages. but they make up 13% of those seriously delinquent loans. the project $15 billion of costs and losses to the fha, something fha was warning about in 2008. congress was late in shutting it down. there was some resistance to that. there has not really been a lot of careful thought going into federal housing policy. another example would be last year the fha had their mandatory blown list. they can only ensure up to a third-. those limits came down modestly. they raised the loan limits. for the first time ever, you had the fha able to guarantee loans that were larger than fannie and freddie, $729,000. that is 3.5% down payment, and while those loans really do not account for a lot of the losses, they show that there is kind of a -- an inconsistency in federal housing policy. on one hand you hear lawmakers in washington talking about the desire to get the government out of housing, but when push comes to shove, everybody is scared that if you pull back too quickly, you will -- people will

what is the difference between a reverse mortgage and a regular mortgage? well a conventional mortgage has a required monthly payment. a reverse mortgage has no requirement to make a monthly payment as long as you continue to live in the home. what did the one reverse mortgage then do for you? well i can meet the expenses at the end of the month with no anxiety and then i can go on trips once in a while. i can have lunch with the ladies. it changed my life. how did the process unfold? i really felt that i could trust him. i had a partner. anything she needs... just call me. trust me it worked for me. [ henry ] if you're a homeowner 62 or older, call now and get your free guide and dvd. a one reverse mortgage licensed professional can answer all your questions. you can become one of these people who turned to one reverse mortgage. it helped me pay off a few of my debts that were hanging over my shoulders and i stayed in my home... i am in my house! i am glad i made that call. the reverse mortgage has given us more comfort, given us a little nest egg. i would

you used to be able to go down a deal sheet and a look at the mortgage issuer, mortgages that were inurities and if there was a certain firm a lot of investors wouldn't buy them. charlie: i think it will be kind of interesting, you will see bear stearns, people saying this was a crappy mortgage and stuff coming -- ways to get these processing centers and mortgages and other firms bought these and you use them to put a mortgage those mortgages you will see people at bear stearns talking about that. e-mails about that. and when they did a lot of this stuff it was 2006-2007. a lot of people knew that the mortgage market was heading towards collapse but there were people on the other side -- this is not a criminal case but a civil case. dagen: great to see you. charlie gasparino. let's go to nicole petallides. the market turn around. nicole: that is true. completely different sentiment, the fear index is higher and turned into the red. the markets which were obviously dwindling once again and have a lot of down arrows, take a look, the intraday charge pretty impressive and obviously direc

they say a person getting a reverse mortgage must live in the home.one for more than 12 months the loan is due. >> we wouldn't want to violate hud regulations. >> the county got the reverse mortgage in 2010 and moved scalia in october of that year, and she hasn't been home since. when we visited in september, faded tags over the doorjambs indicated no one was inside for awhile. after hearing from the i team, hud is reviewing the case. >> she said i wanted to go home from day one. >> james is the court-appointed attorney. he said he objected to the reverse mortgage and doesn't believe the brother took advantage of her. even more important, a year ago a probate judge ordered talks to move lily back into her home. sullivan said he reached out, but the county didn't act. >> the county doesn't listen. the judge can't micromanage these people. the judge leaves it to the professional. >> if a person or an organization chooses to ignore the court order they could beheld in contempt and damage applied. >> he points out that someone would have to tell the judge

overall, mortgage debt is down and overall debt is down. the basic gist of the details, bill, is that consumer credit continues to decline overall. delinquencies are down and bankruptcies are down. balance sheet repair continues. a little bit more willingness of the consumer to take on some debt and a lot of it -- >> that's very interesting, steve. let me ask you something, david. >> i want to make one more point, which is that when you talk about how much the dow is down today, it should be down more because the rally we didn't have from the better economic news this morning. >> yeah, no, that was a good point. david, so we've got consumer confidence data, which shows the consumer is not concerned about the fiscal cliff. the market shows you absolutely investors are concerned about the fiscal cliff. who's right, david? >> well, i think consumers overall are very confident, but i think consumers and investors alike are ultimately concerned about the fiscal cliff. as you referred to earlier, we had the happy moment last week after the press

reverse mortgage. [ male announcer ] call right now to receive your free dvd and booklet with no obligation. it answers questions like how a reverse mortgage works, how much you qualify for, the ways to receive your money, and more. plus, when you call now, you'll get this magnifier with l.e.d. light absolutely free. when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home. and here's the best part -- you still own your home. take control of your retirement today. ♪ ♪ >>neil: union members descend on capitol hill for a push for more spending, not less. leaders do not want the lawmakers to touch entitlements but they want lawmakers to hike taxes on the rich. and senator rand paul says the republican colleagues better grow a backbone. senator, good to have you. i raised that with your colleague, john mccain. i don't see that. you coul

in the end, charlie was indicted for mortgage fraud, and in case you didn't know, lying on a mortgage application is against the law. people will see this and say, he was just another one of those guys rolling the dice, trying to make a buck. you were gambling. >> a lot of people were doing that. >> reporter: engle says he did not write down the income figure on his loans, but he admits he signed the closing documents. >> reporter: did you look at the fine print? did you know what you were signing? >> no. but the fact is, that's not uncommon, either. >> reporter: to this day, charlie insists he didn't lie. but a jury didn't buy it, and the tape sure didn't help his case. >> i had a couple good liar loans out there. >> i did have liar loans, but i'm not the one who told the lies. >> reporter: who told the lies? >> the brokers, the banks, the people who -- as a borrower, we all know we're not in charge of the process. >> reporter: charlie was convicted in large part because of the testimony of the mortgage broker on one of his loans who, along with charlie's loan officer and the seller

you have the mortgage interest deduction in play.e don't know what's going to come out in the final workings of it, will it be gone entirely, will it be lowered for certain people. not touched by others. what it's creating right now is a sense of uncertainty and that's worrying a lot of potential buyers. i talk to realtors out there right now who say we don't even know what's going to happen but this is keeping back from potentially buying a home right now. will add to how much money they're going to have to spend, not just today but over time. again, another uncertainty but what's even bigger than that one, in my book, i believe, is the mortgage forgiveness debt relief act. i know, what is that? what has this housing recovery been based on? it's been based on mortgage modifications where the banks have been writing down loan principal and they've been doing an awful lot of that this year. it's also been on short sales and unfortunately on foreclosures. that's all debt forgiveness which used to be taxable but has not been because of

because if people don't have jobs, they don't pay the mortgage. they can't buy houses. the second point i made is to stay on this optimistic theme, maybe because it's thanks giving weekend. but you know, i made this point before on your show. you know, it comes to america relative to the rest of the world, we're the least rotten apple in the house, right? and that gives us a huge advantage in terms of investment coming to the united states, building new businesses. and that's why i'm, you know, i'm somewhat optimistic that despite the fact that unlike the direction washington is headed. >> we're always the least rotten apple but had a worm in it. maybe this fiscal cliff discussion will remove the worm. michelle, what does washington have to do to not reinstall the worm into the apple, to not get in the way of this consumer -- this feeling that things are getting better? >> bottom line is that i do think that we are kind of talking about an economic that is going to be aabing if we can the right thing, to grow 2% f we can get some longer term certainty in terms of a gran

and that will influence what the mortgage market looks like after january the. gerri: thank you so much for coming on tonight. we appreciate your time. gerri: covering all of your big investments from housing to cars. are you sick of your car commute? unless you live in the following places, it could be worse. a look of the cities with the @%rst traffic. number five is our nation's capital, washington dc. interstate 495, packed with drivers coming from maryland or virginia. drivers spend 45 hours sitting in traffic every year. number four is inconsistent. the golden gate bridge is a constant headache for those in california. number three we head down south to the pacific highway to los angeles. 13 million commuters can you into the city every day. 80% drive and 56 hours spent in idle cars. and of course, new york city, the big apple. they spent 57 hours or two and a half day sitting in traffic, especially if you're trying to get out of town on a friday afternoon. the number one worst city for traffic -- or not to believe this -- honolulu, hawaii. unbelievable. h

now, the head of the department will have to approve reverse mortgages.her family plans to celebrate at her aunt's house fchl you think a government agency isn't doing what it'sq]x2z suppd to, call us or e mail three through our web site. >> that woman was so upset. >> home, now. >> fantastic story. >> an alameda man accused of robbing a palo woman admits he did it. mcfarland admitted to stealing computers and jewelry from the house owned by thes7:6ñ late founder of apple. this plea includes home burglaries in san francisco, marin and alameda and faces a seven yeefrs, eight months in prison. >> construction work on apple's futuristic campus in cupertino may be delayed up to two years, officials may not be able to complete an environmental study so it may not be ready until 2016. >> another big sign housing indid us story is recovering finally. mortgage rates are the lowest they've ever been michael finney is here tonight. a house for the holidays, huh? >> there you go. ever, ever. here is a catch. you're going to have to qualify for rock bottom rates. int

mortgage is still a little tight. i think one of the things that would be really good, the regulators, legislators, and businesses fix as soon as we can, what are the new rules around mortgages? it is too it tight. appraisals are too tight. income appraisals are too tight. underwriting is too tight. we don't know the new rules on capital requirements. if we get that finalized, i think mortgage will get looser and it will help housing. >> okay. certainly we are seeing that in the numbers. in terms of europe, it feels like we were focused, the markets were so focused on the election for the last several weeks. now the last couple of days, we see europe becoming an issue again. what's your take? i know you can't do in ten minutes. >> it's going to be roller coaster. there's no ah-ha moment. there's no quick fix. number one, they have to make sovereign debt good. you can't have nations survive when their sovereign debt is not made good. the ecb made this big statement about buying unlimited amounts. number two, you have t

what can the fed do to improve this and, there for example increase mortgage lending, beyond mortgaget rates? >> so, as ieindicated in my remarks the housing sector has been a major player in this drama, first with the boom and then the collapse and now, playing a role in the recovery, as we hope. in terms of expanding mortgage lending, the growth of the housing sec to you said beyond interest rate policy, i have to mention interest rate policy. i think one of the strongest things that we can do is maintain low mortgage interest rates. they are at historic lows, as you know, and combined with a 30% decline in house prices across the country, it means we have extensive affordability now for people who are interested in buying new homes. now, the reason i bring this up is that i think there are some positive dynamics that can occur here, in particular, to the extent that the housing market appears to now be moving in the right direction and we are beginning to see increases in house prices. that, in turn, is going to feedback on mortgage learned decisions, because one of the reasons tha

the presidential debates now if he is reelected president obama has announced plans to create a mortgage refinancing plan which could help to alleviate some of the effects of the housing crisis unfortunately so karen to the congress is going to pass such a plan especially with the republicans in control of the house in all probability is going to stay that way and as for mitt romney he really doesn't have much of a plan at all to help the millions of struggling american homeowners so what does the future look like for the american housing market and can either candidate take the actions needed to put an end to the housing crisis once and for all and joining us now for more on this is mike papantonio he's an attorney and co-host of ring of fire radio mike welcome how are you a path great to have you with us this was a pretty surprising a huge issue impacting so many americans this mortgage debacle started in two thousand and six and yet we heard so little about proposed solutions to deal with the rampant foreclosures to entire neighborhoods across america why not well i think you saw an e

the larger the mortgage, the greater the deduction. but it will cost the treasury nearly $100 billion next year. so now the talk in washington is about lowering the cap for the maximum mortgage amount you can claim interest on down from one million dollars. economist diane swonk. >> if you keep the deduction for the bulk of americans but eliminate it for the oversized homes you still get the american dream. >> reporter: affluent owners in expensive areas-- especially on the coasts-- would see the biggest change. >> if you have the money and you want to spend it feel free to do that. but, you know, i'd much rather see lower tax rates or deductibility for investment in our future which creates productivity which creates higher potential for the future of the economy rather than just big homes. >> reporter: now, economists who favor lowering the cap on mortgage debt eligible for a deduction from a million dollars to $500,000 say it could help reduce the deficit and keep interest rates low and, scott, that could help the housing market all

if there is a problem with reverse mortgage the loan could come due.y is accused of isolating clients they are supposed to serve. tomorrow morning we'll hear from a woman who says she feels like she is in prison. >>> joining us now, lisa argen we've got some great stuff on the way. you mentioned and make a good point, why sunshine is good thing. some people like rain but until we nearly need it we should enjoy we got. that is my new statement. >> and we have a light offshore flow, making for mild temperatures around. take a look at ocean beach, nice and sunny with light winds, great surfing conditions. that is kind of nice thing for early november. here is sutro and see how pretty it is out there. with the sun up later this morning, beautiful day. up sooner tomorrow because we set the clocks back to standard time tonight. live doppler 7 hd showing some higher level cloud cover. this is not all being picked up in your neighborhood. still mount st. helena picking up any moivt. none here in the next several days, we're talking about temperatures well abov

you get a reverse mortgage and you must live in the home. come one bay area county moved a 92-year-old woman out more than a year ago and then took a reverse mortgage out on her home? here is dan noyes with the latest i-team investigation. >>> my aunt loved that house, loved being home. it gave her memories of her husband. >> monte said her aunt, 92-year-old lilly, would never want to move out of her house. lilly suffers from dementia, but she and her husband planned to live out their last days here. sam died in 1995. >> my aunt would tell me that. your uncle said if anything should happen to him, live out -- live in this house, stay in this house. >> that's a promise lilly has not been able to keep. puma said santa clara county took her aunt from her home and eventually moved her into an assisted living facility. >> it started as a family quarrel. adult protection service came in. >> some members of puma's family didn't like that she and her father were living with lilly after her husband died. the santa clara public guardian's office and p

exposure that they could have to have mortgage put back risks i'm sure terry bill talk about that in another in another session but that's the thing they've been putting it off extending and pretending that they don't have the problems that the other banks have because jamie diamond has had sort of a results reprieve he said good results and he's gotten away with sort of having all these other illegal and fraudulent things happen at j.p. morgan having them go to london or wherever else they are so that people don't see them right away having the results juiced by things like delaying reserves and delaying recognition and some of this litigation is against them. he's not going to be able to do that anymore there's nowhere else to go as you said scrutiny is that everywhere because people are fed up right jamie diamond the results for j.p. morgan recently they showed some surprise revenue in income and profits due primarily to accounting tricks to changes in loss reserve requirements and but exactly what every quarter though the word is that well this is it they've run out of rabbits to

you're talking about the mortgage exemption, the money you pay on your mortgage. have never been able to claim that and i'm 78 years old. i understand the republicans want to do away with that. is that correct? guest: i think no one wants to get rid of the entire mortgage deduction right now. we're hearing talk about whether you would cap the overall amount of the deduction that somebody could claim. this is an idea mitt romney had on the campaign, this idea that you cap the value at $30,000, say. if you live in an area with low housing prices, that probably would not affect you. if you live at new york, san francisco where your mortgage is more expensive, it would be easier to bump up against what the deduction cap would be. you might not be itemizing your tax returns at the end of every year. host: next call is mike on the democrat's line. are you there? caller: i have a question for you. i heard president obama is making cuts to medicare if his plan goes through. he wants to cut $400 billion in entitlements. i collect ssdi. i am disabled. these $40 billion cuts

mortgage financing is available.forward to some of the key decisions being made in relation to the dodd-frank bill. that will ultimately determine the availability of credit in the mortgage industry going forward. ashley: we will be following that. budge huskey, thank you for being here. >> thank you. tracy: we have to talk about cars again. liz claman will take us through the last hour of trading. the l.a. auto show. i hope they talk about the month and. you will hear about it from the chief operating officer mark fields. "countdown to the closing bell" is next. do not go anywhere. ♪ ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right afterthey ge, they'll find some retirent people who are paid on salary, not commission. they'll get straightforwarduidance and be able to focus on other

the last couple years the new rules for getting guarantees from various government agencies for mortgages all of these changes have a centrally added friction in the economy decrease to bail ability of credit and we need to have as much credit being created obviously you're not going to have a good job market so i think that we're kind of cutting our nose off to spite our face we're trying to talk tough on capital on the one hand and at the same time you have this debate about the fiscal cliff and everything else i wrote a piece that we posted on zero hedge today talking about this dichotomy because we can't do the right thing on fiscal issues we have bad housing policy that causes wall street to just about collapse and yet we're going to talk tough on bain capital as was the one nine hundred eighty i think we got to do a bit of a sanity check here and try and crater the economy in terms of growth rates while we slowly get the fiscal house in order you were just talking about a bill a trillion six in the revenue increases that the president wants you know the reality is no matter what dea

i can get a higher yield than prime mortgages and the aaa security. the simple question, risk and return are correlated. somebody to ask besides ed monday clark what's going on here. >> i think it was a good point. a self-promotion i would edge younger tow look at august. how i thought they failed. >> i would like to thank the panelists. it's been a fascinating discussion. i got a lot out of the book. i would enjoy to take a look at it. i would like to welcome you upstairs for lunch. thank you. [applause] tell us what you think about our programming this weekend. you can tweet us at booktv, comment on facebook wall, or send us an e-mail. book, non-fiction books every weekend on c-span2. you're watching booktv on c-span2. and joinening now in the studio it malcom o'hagan the founder and chairman of the foundation of the american writers museum. among other things. seriously it will be a place where people will come and engage with writers and writing in ways that they have never been to be do before. it will be the first national museum dedicated to ce

. >> my dad bought that in 52 and sold it to me and i had mortgaged it to start a business and didn't do as well as i thought it would. >> then he heard about the neighborhood assistance corporation of america and came to an event last year. it worked. his interest rate dropped from 6.5% to 2% fixed saving him $1,000 a month and his home. >> there's such a need for both home buyers and get an affordable mortgage and homeowners that have a mortgage affordable. >> this morning opened its doors to people already in line. the organization is offered free advice to homeowners and buyers for the past 20 years. >> the process is divided into four steps. the first step is orientation. the second step is counciling where they work with paperwork. the third step, you meet face-to-face with your bank. and step four, the hope is you walk out with a solution. >> now, david's son is facing the several hardship several americans are. >> a lot of payments and bills. just too much for me to pay. >> father brought in son in san jose hoping he can see the same success. >> to lower the mortgage would hel

guest: yes, if you have a mortgage that is federally backed. essentially, if you have a mortgage.ost: the app device through nfip or through a broker? guest: you can buy it through a broker. host: is it expensive? guest: it depends on where you live and what flood zone. i will give you a couple prices. the cheapest flood insurance policy out there runs you about $129 a year. $10 or $11 a month. that is if you are in a very low-risk area. host: not new orleans. guest: right. your average premium runs about $600 a year. again, not terribly expensive. there are zones that are going to be more expensive. those will be the highest risk zones, those most likely to flood. it is a very fine line to walk. you want to keep the program affordable so that consumers purchase the policy and are protected, yet you also want to make sure the program is charging the accurate rates so it does not go bankrupt. so it's a delicate balance. again, the act that was signed into law this summer will end up raising some of the prices, but that is because policy makers here in washington had decided more im

how come the county moved a 92-year-old woman outta years ago and took a reverse mortgage out on herlatest i-team investigation. >>> my aunt loved that house, loved being home. it gave her memories of her husband. >> monte said her aunt, 92-year-old lilly, would never want to move out of her house. lilly suffers from dementia, but she and her husband planned to live out their last days here. sam died in 1995. >> my aunt would tell me that. your uncle said if anything should happen to him, live out -- live in this house, stay in this house. >> that's a promise lilly has not been able to keep. puma said santa clara county took her aunt from her home and eventually moved her into an assisted living facility. >> it started as a family quarrel. adult protection service came in. >> some members of puma's family didn't like that she and her father were living with lilly after her husband died. the santa clara public guardian's office and probate court investigated and determined that puma and her father, the woman's brother, were taken advantage of her by living in her home lengthy free, us

>> we provide a taxpayer guarantee on the mortgages. if you look right now it is something like 1 and 7fha mortgages is underwater. we will pay a lot on this. amazing statistic, if you look at the new loans for mortgages made since 200990% of them, 9 out of 10 carry with them virtually 100% taxpayer guarantees on repayment. >> what happens if we don't pay out this money? jay we have to. -- >> we have to. >> what happens to the mortgages? >> we have made a guarantee. >> i hate to tell threw is no getting out of this. what we can do is exchange the pom sees. the first thing the f.a.a. has to do is stop with the down payment loans. do you know what the down payment of an fha loan is. >> 5%. 10%? >> 3 to 3.5%. all you would have to do to fix the program. why not going back to the idea of a 10%, 15% down payment. if you do that, you will not have the defaults and taxpayers having to bail out the institutions. >> that's the way the obama administration tend to fix the housing problem by sub subsidizing the mortgages. >> answer me this questio