the losses at f.h.a. to stem from the new now prohibited down payment program, heavy losses in the first mortgage program, and losses -- loans made at the height of the crisis to prevent a collapse of the housing market. while they have already taken action to pretext the financial mortgage fund for single family loans from seeking federal funds, the f.y. 2012 report suggests that much more needs to be done to prevent such a draw. i want to hear more today about the administration's actions and proposals to minimize the risk to taxpayers stemming from their business and what safeguards are in place to ensure the quality and sustainability of the program. if the administration's actions and proposals will not be sufficient to restore f.h.a.'s fiscal health, i'm inclined to work with my colleagues on both sides of the aisle on the banking committee to find a bipartisan way to make shoo -- that happen. before i turn to ranking member shelby, i want to recognize his work as ranking member on this committee ove

the losses at f.h.a. to stem from the new now prohibited down payment program, heavy losses in the first mortgage program, and losses -- loans made at the height of the crisis to prevent a collapse of the housing market. while they have already taken action to pretext the financial mortgage fund for single family loans from seeking federal funds, the f.y. 2012 report suggests that much more needs to be done to prevent such a draw. i want to hear more today about the administration's actions and proposals to minimize the risk to taxpayers stemming from their business and what safeguards are in place to ensure the quality and sustainability of the program. if the administration's actions and proposals will not be sufficient to restore f.h.a.'s fiscal health, i'm inclined to work with my colleagues on both sides of the aisle on the banking committee to find a bipartisan way to make shoo -- that happen. before i turn to ranking member shelby, i want to recognize his work as ranking member on this committee ove

the main reason f.h.a. is in the problem that it's in is due to loans that were made back in 2006, 2007, 2008 and the beginning of 2009. and what's happening is the losses from those loans are just now kicking in. and there's no question that f.h.a. has some issues relative to their economic value. but there have been five increases in rates at f.h.a. just in recent times to try to get it back where it needs to be. so what i would say to my friends on this side of the aisle is, if we think that f.h.a. can get better by not having a director, i find that to be kind of strange. i mean, sheers there acting -- she's the acting director since david stevens left. but it seems to me we'd be much better having somebody in that position that's actually accountable and is able to bring permanent staff on with her so that they know they're going to be there to deal with the issues that need to be dwelt at f.h.a. -- dealt with at f.h.a. so again, i think i've spent about as much time with her as anybody in this body. i

the losses at f.h.a. to stem from the new now prohibited down payment program, heavy losses in the first mortgage program, and losses -- loans made at the height of the crisis to prevent a collapse of the housing market. while they have already taken action to pretext the financial mortgage fund for single family loans from seeking federal funds, the f.y. 2012 report suggests that much more needs to be done to prevent such a draw. i want to hear more today about the administration's actions and proposals to minimize the risk to taxpayers stemming from their business and what safeguards are in place to ensure the quality and sustainability of the program. if the administration's actions and proposals will not be sufficient to restore f.h.a.'s fiscal health, i'm inclined to work with my colleagues on both sides of the aisle on the banking committee to find a bipartisan way to make shoo -- that happen. before i turn to ranking member shelby, i want to recognize his work as ranking member on this committee ove

the house passed a bipartisan f.h.a. reform legislation and we look forward to continuing to work with both chambers to create tools we need to strengthen the program, meet its mission, and place the m.m.i. fund back on firm footing. i encourage the senate to engage in discussions that build on this process in the house in order to achieve a consensus that will give f.h.a. these tools as quickly as possible. there are no guarantees the actions i have described will prevent f.h.a. from tapping into the treasury next september. however, swift action from congress, coupled with the $11 billion in additional value from the new fiscal year 2013 business, will reduce the likelihood that the treasury draw will be necessary. these changes as well as those we made over the past four years have laid the foundation for a stronger f.h.a. and a healthier m.m.i. fund that supports the recovery of the housing market while actively reducing f.h.a.'s market share. as we work together to reform the f.h.a. program, we must proceed with a ba

the losses at f.h.a. tem from the new now prohibited down payment program, heavy losses in the first mortgage program, and losses -- loans made at the height of the crisis to prevent a collapse of the housing market. while they have already taken action to pretext the financial mortgage fund for single family loans from seeking federal funds, the f.y. 2012 report suggests that much more needs to be done to prevent such a draw. i want to hear more today about the administration's actions and proposals to minimize the risk to taxpayers stemming from their business and what safeguards are in place to ensure the quality and sustainability of the program. if the administration's actions and proposals will not be sufficient to restore f.h.a.'s fiscal health, i'm inclined to work with my colleagues on both sides of the aisle on the banking committee to find a bipartisan way to make shoo -- that happen. before i turn to ranking member shelby, i want to recognize his work as ranking member on this committee over th

but that's not the f.h.a.'s fault. that's the fault of dodd-frank and the restrictions on lenders who have forced f.h.a. to be the lender of last resort, or most resort, for most american people. that's something we in the senate have the ability to fix. but we should not punish a talented, experienced, well-qualified, highly recognized individual who knows housing, both multi and single family, from being commissioner at f.h.a. so i rise to say to any member, if you have a problem with f.h.a., don't take it out on miss galante but look at what happened after the passage of dodd-frank and the fact that f.h.a. had to take on a burden because there was no other alternative in housing finance. what we need to do rather than defeating good nominees for office is give those nominees the kind of underpinnings where the laws allow capital to flow to the mortgage markets through various entities and numerous entities so the whole burden doesn't have to be borne by the insurance of f.h.a. and the united states government. so i r

the losses at f.h.a. to stem from the new now prohibited down payment program, heavy losses in the first mortgage program, and losses -- loans made at the height of the crisis to prevent a collapse of the housing market. while they have already taken action to pretext the financial mortgage fund for single family loans from seeking federal funds, the f.y. 2012 report suggests that much more needs to be done to prevent such a

old too including the f.h.a. and senate fannie mae and freddie mac. so that's a huge thing we're going to keep track of that over into the next new year but i want to talk about to fail not to bail that's what i've come up with not seem to lead he's to fail not to bail on the kaiser report because of course according to this three max keiser tweet did not seem to lead you still in london not said to lead responded max keiser i ran away i was told you wanted to punch me in the nose right well he's afraid to come on the show because he has been exposed as snake oil salesman charlatan who's intellectually bereft of anything meaningful to say but people like the b.b.c. and others put him on their shows because it makes them look smart because what he's saying is incomprehensible well to put this into context he was here london pushing his book anti-fragile and he didn't appear on the kaiser report because he didn't want the questions here instead we don't b.b.c. newsnight the same b.b.c. news night that had the evidence of jimmy savile and his paedophile t

just ask you the question, did we dodge a bullet in appointing her full-time with all the issues that we have at f.h.a.? and does she really have the ability to press the administration to overcome political issues to actually cause the fund itself to be actuarially sound? because it appears to me that we are still not quite doing the things we ought to do to make the fund operate. it seems to me maybe there's a little political pressure and maybe she's not strong enough to make that happen. >> here are the facts as i see country. police we have taken the most aggressive steps in the history of people agency to make sure the business we are doing is strong. if you look at that chart right there, you will see a huge profitability relative to the history for the new loans we are making. we have only so much that we can do to fix the problems of those older loans. i agree with you on many of the steps you have described today. what we should not imagine is that somehow taking those steps can take us from the difficult financial condition we find them in today, somehow to eliminating what has been an enor

the government dominates the housing financal market back nine or 10 months. f.h.a. been instrumental sustaining the market but have come a long way in traditionally helping. today they account for 20% of the market. they provide low down payment lending for loans $729,000. this is just an example where we need a re-set of our time. fannie and freddy continue to help in the uncertainty surrounding the market in today's world but we do need to move from a market dominated by the g.s.e.'s and f.h.a. and government sources to one that does one thing. first we need to return f.h.a. back to its core purpose of helping low to moderate-income buyers and then they need to take a transition and provide clarity to what marketing service and risk they are willing to take. we can do that by removing some of the uncertainties about the rules that will take place over the next year as we move forward with the reimmediate yathes of the crisis. i don't think changing so that markets and if there are guarantees liquidity to investors so, all these players are critical to transition. t

guest: when you have something like the f.h.a., you actually are creating more instability in the housing market. host: how do they subsidy it? guest: when you have land use restrictions, increases in demand mean rapid increases in prices. and so instead of housing prices going like this, you see housing prices going like this. and that ends up creating lots of instability. so i don't think we need the t.h.a. homeowners, very low this cans were able to wy homes without the f.h.a. we don't need tanie -- tanie may, freddy -- fannie mae and freddie mac. i think we'll end up with 74%, 75% rates instead of 65%. host: about a trillion dollars in lones. but $739,000 are in delinquency totally $16 billion. guest: a majority of those homes are in states that have these land use restrictions. if you hadn't had land use restrictions you wouldn't see housing collapse. you look at texas, north carolina and you don't see the collapse in housing prices that you see in florida and california. so if you don't have the land use restrictions. >> we take you live for the capital for remarks by senator charle

secretary for housing and urban development last year he worked as a commissioner for the agency working on high risk f.h.a. loan resolutions but before that he was a physical in point for twenty six years at freddie mac. you remember them the government backed entity that had any bailed out by our tax dollars in two thousand and nine to help repay defaulted mortgages back in march mr ryan was a key player in the twenty five billion dollar mortgage for closer settlement between the country's five largest lenders including wells fargo now wells fargo is facing a lawsuit filed in october over f h a backed loans good thing mr ryan will be there for the rescue is the company's senior vice president sold for graciously appeared in my eyes in the corrupt a despicable revolving door relationship between washington and wall street banks mr bob ryan you're my villain of the day. well it's been eleven long years since the nine eleven attacks which left three thousand world citizens dead three buildings were completely demolished that day which left behind a toxic cloud of dust and debris filling downtown manhattan f

they're also a government entity and they guarantee mortgages that are given out by the veterans administration and by f.h.a. they're. able to operate just perfectly fine with their employees on federal pay and we think that fannie and freddie should be able to operate on federal pay as well but fannie and freddie is saying here. oversight agency that federal housing finance agency made regarding this decision about executive pay made it so that they weren't able to hold on to some of those top executives some of those people who really had the experience and the problem solving skills that were the best employees because they cut their salaries. and if those salaries were to be cut more for some of these middle tier positions that they just wouldn't have anyone good what's your response to that argument. well you know in a certain respect. at least on a gut level if i'm honest with myself it doesn't bother me too much because i think we need fannie mae and freddie mac. to be shut down but honestly i don't want them to be mismanaged because they are still five trillion dollar agencies and they could create

three there's been virtually -- given those facts, what would you say is the right percentage of the market, f.h.a. and g.s.e.'s and whatever forms should emerge, what's the right balance if they are currently in the g.s.e.'s where they have been since 1990? >> there's philosophical question. if you could do it all -- conceptionnally, the practical reality is that if you think about the mortgage debt outstanding, $10 trillion or that, 5 trillion, pick a number like that. and you think of all the -- you cannot engines through the banks, and by the way the nature of the asset is such that banks can't hold it easily but then you have 10%-15% foreign ownership of the g.s.e.'s so i think in the near term there's no practical solution other than to continue to participate in the governments, because the reality is with uncertainty in the process or asset is, do you think people who don't know america or outside america can actually invest? and we need their liquidity to balance long-term but i think the private label market will be there. we shouldn't have quite went wrong with the private label market

f.h.a. lenders to provide storm related insurance payments directly to homeowners, eliminating the problem you and i have spoken about which occurred after hurricanes rita and katrina where some mortgage companies used payments intend to rebuild damaged homes were other purposes. along with fema we have been working to provide assistance to those in damaged or destroyed housing. after it flooded basements and destroyed heating systems and boilers, we worked to provide boilers and generators allowing thousands of low-income people could remain in their homes an we're making sure there are funds for infrastructure repair by providing waivers so existing federal block grants and home funds can be used for disaster relief. the success of the efforts grew in part out of what we learned and created in response to hurricanes katrina and rita and other natural disasters. in september, 2009, president obama charged the department of h.u.d. and homeland security to work on how as a nation we address disaster related recory and rebuilding challenges. we created a long-term disaster recovery -- disaster w

f.h.a. tightening these are things that are out there that can cause some turbulence and some issues but overall i don't see the housing market because depressed i see the upward momentum being stymied put some speed bumps in front of it but you should still see some healthy sustainable improvement in home prices throughout the country it's really been the bright spot of the economy. there is very have a weapons view on housing and jobs vice president of residential finance corporation. our let's wrap up with your feedback it is friday and you know something amazing happened this week on a new show dealing with the topical issues and delving into them we inspired a conversation about history but we've got kevin phillips on about his book seven hundred seventy five he's a former republican strategist turned off their prolific author and also critic of politics and the economy as well but mike cliburn responded regarding the revolutionary era said the intolerable acts were part of the revolutionary era and the main tipping point factors that led to war after the. war when representatives of the new country went t

f.h.a. so they are manageable. two years, $28,000. about a year ago i went into the hospital for an angioplasty. my t.b. sent me there. i spent 23 hours in the hospital. total bill was $29,000. for 23 hours. i never even saw the doctor who did the angioplasty. if we don't get the government -- government's paying for this health care, but the private sector is the one that's writing the bills. you need to do something about the private sector section of the medical system. get 100,000 people to send their bills to you from the hospital and make these people justify these outrageous costs they are charging the government. host: congressman welch. guest: he's got a point. the cost is unbelievable. anybody who's been to the hospital as hes is, you not only get that bill, but you get a bill for the stay in the surgery room, you get a bill from the anaesthesiologist. it's peacework -- piecework billing. what we have is this fee-for-service system here which encourages volume. if you have a incentive, it will produce results. the results that are produced for the fee-for-service system you is get a lot of ser

two weeks ago we tried to pass the f.h.a. emergency fiscal solvency act, a commonsense reform measure that came out of the house of representatives, sponsored by a republican from illinois, congressman begert, a chair of the house services subcommittee. it passed the house on a suspension of 402-7. passing that bill would not have prevented action that connects congress, yet my colleagues, some of my colleagues stand in the way of taxpayer protections. let me turn to ms. galante and the reason i'm supporting her nomination. i'm inclined to support an ohioan. she shows deep interest in the challenges facing the housing market in northeast ohio, a place that's been devastated by a hollowing out of our manufacturing base and preyed upon by unscrupulous subprime lenders for a period of more than a decade. she met with the cleveland housing network, city officials to hear about all the great work that people are doing in northeast ohio to rebuild the city's housing market. some of the most innovative ideas in the country have come