fha helps no one. rest assured that in times of serious economic downturns, under the path back, the fha can insure loans to any borrower. this means the path would preserve the fha's existing countercyclical role in mortgage lending which enables the fha to serve as a backstop to keep mortgage credit flowing, promote stability in the housing market, and ensure middle of income families can buy homes. it allows for a new but old method for banks to finance mortgage lending by creating a regulatory framework for covered bonds financing. i say new but old because covered bonds have existed and have been successfully used in europe for more than 200 years. they offer a third pathway to mortgage financing beyond traditional portfolio lending and securitization. when it comes to housing finance, many in washington fight the new and defend the old failed status quo that gave us a government run monopoly, taxpayer bailouts, economic crisis, and delivered only mediocre homeownership rates. but detractors of the path act have claimed it will eliminate the early year fixed rate mortgage. that could be the biggest

but for conventional loans, really, fanny, freddy, the fha. the idea is to get private investors back. how much would it cost and how would it work? the devil will be in the details. these are broad spectrum propels and a lot going on in congress and we don't know how it would work but we know it will have to be carefully done and there will be over lays for investors and could, critics say, at least, make mortgages more expensive passing the cost that investors have for borrowers. >> thank you very much. appreciate the report tonight. >>> joining us with more on this top pick is the co-director for economic and policy research. the president says he wants to end fanny and freddy or at least the business model and says private capital should be the backbone of the market. do you agree? >> it's a mixed story. private capital is there in the sense that who buys the mortgage backed security sns he wants it to be issuing the mortgage backed securities, which is what we had during the peak of the bubble. but this time they will actually be guarantee

the path act reforms the fha. you cannot have true housing reform without fha reform. otherwise, you're simply squeezing the balloon on one side only to have it bulge out on another. regrettably, today, the fha is not only broke. it is bailout broke. over time, fha experienced severe mission creep, and i would argue the two phenomena are directly related. instead of helping those it was intended, today, fha ensures mortgages for millionaires and homes valued as high as $729,750. that's a mansion in most of the fifth congressional of texas and far beyond the reach of those truly earning low and moderate incomes. fha's government privileges, given advantages to allow private competition, and it's no wonder they control 57% of the mortgage insurance market. >> the path act returns fha to the mission of helping first time home buyers in low and moderate income families. it helps ensure solvency, and bankrupt fha helps no one. rest assured that in times of serious economic downturns, under the path act, they will be able to ensure loans to any borrowers. this means that the

that means we've got to strengthen the fha so it gives today's families the same kind of chance it gaveandparents to buy a home and it preserves those rungs on the ladder of opportunity. and we've got to the support, as i said, affordable rental housing and by the way, we've got to keep up our fight against homelessness. the mayor of phoenix has been doing a great job here in phoenix on that front. we've got to continue to improve it. now, since i took office, we helped bring one in four homeless veterans off the streets. we should be proud of that. here in phoenix, thanks to the hard work of everyone from mayor stand to the local united way to us airways, you're on track to end chronic homelessness for veterans, period, by 2014. but we've got to keep going because nobody in america and certainly no veteran should be left to live on the streets. so here's the bottom line. put all these principles together. that's going to protect our entire economy. and it will improve the housing market not just here in phoenix but throughout the state and throughout the country. we're also going to ne

fha solvency. rest assured that in times of serious economic downturns under the path act, the fha will be able to sure loans to any borrower. this means that the path act would preserve the fha's twisting cowntsz cyclical role. promote stability in the housing market and insure middle income families can still buy homes. the path act also allows for a new but old method for banks to finance mortgage lending by creating a regulatory framework for covered bonds financing. i say new but old to because covered bonds have existed and have been successfully used in europe for more than 200 years where they offer a third pathway to mortgage financing beyond traditional portfolio lending and securitization. but when it comes to housing finance, many in washington fight the new and defend the old failed status quo that, again, gave us a government-run monopoly, taxpayer bailouts, economic crisis and delivered only mediocre home ownership rates. the detractors of the path act have claimed that it will eliminate the 30-year fixed rate mortgage. that, perhaps, is the bigst myth about the path -- biggest myth

it also reforms the fha. you cannot have true housing reform without fha reform. otherwise, you are squeezing the balloon on one side to have it bowled out on another. fha isably, today, the not only broke. it is flat out broke. there has been severe mission creep. i would argue the phenomena are directly related. today, fha insures mortgages for millionaires. it is a mansion in most of the fifth congressional district of texas, and far beyond the reach of those truly earning low incomes. the government privileges give advantages that muscle out private investment. fha controls 57% of the mortgage insurance market. it has gained advantage over competitors by using many practices employed by subprime lenders, including cheap upfront ricing, and encouraging the purchase of increasingly pricey homes. many would argue fha has more in thann with countrywide with the fha of years ago. the path act returns them to the traditional mission of helping famies it helps ensure solvency. assured that in times of serious economic downturns, the fha will be able to ensure loans to

ratio of what the gift is a much better way to go with no strings attached even then unless with the fha you cannot cover the whole the down payment that you don't worry about the unintended consequence. >> manque give the gift to and they can be tax-free. tell us about that. >> what you have to keep in mind is $14,000 on the individual basis economic about 40,000 anything more than that you have to report to the irs it then subject to the gift tax but each parent can give 14,000 and another 40,000 to their spouse so you can put a total of $56,000 together of one gift. gerri: but mom and dad have financial aid also you want to retire and not be a burden i really think that people need to put together their own down payment to have their sense of pride in and ownership i think it is hard when mom and dad do all the work but the kids live in the house. >> absolutely a greater burden of health care and retirement savings the parents have to look out for number one whether sending kids to college or buy a house they do have a desire and the downside is you may end up in the spare bedroom of

policies that supported the housing market were put in place we back after the depression you had the fhaand the original government-backed loans put in place to jump-start the housing market it did that in the 30's and then in the 40's and 50's there was a process whereby neighborhoods were coded red, blue, yellow or green and most of the communities were coded red and those communities didn't get -- the fha wouldn't back loans to these communities said it was factoring in the diocese of the day and those are gone now. but there are tremendous racial inequities in the housing market and also i mean, it's just the suburbs and the exploded in the 50's and 60's they were primarily white and that's changed a lot. the suburbs have changed so much a mirror america and there are some firms every type of shape and flavor, wealthy come every type of class and race they really do resemble america much more than they did in the 50's and 60's when they were born and even in the 70's. so that's a little different. but people like to be around people like themselves and you see them all over the place

be some limited back stuff but private capital back into the mortgage market and fanny, freddy and the fha back more than 90% of the loans made and that's just not the way the market should be or according to the administration. they want to phase it out. it will take time but they don't want to be in the situation in 2009 when the government did have to bailout the mortgage market. >> dianna, this congress has not gotten much down on important issues. will it get this done and reform mortgage finance? >> i can't answer that. there is one very strong bill on the hill right now, the corker warner bill the president seems to have not exactly endorsed that bill but the things he's putting forth are similar to what is in that bill and that's why you saw him this week in phoenix making the push again because this fall would be the time, the make it or break it time to get the legislation through. again, it's not like it's going to happen overnight. we won't see them close the doors. this is a long-term phaseout but we need the plan in place. will it happen? you've been to washington before, guy

and those communities didn't get -- the fha would not back loans in those communities. so it was not -- the biases of the day, and those are gone now. but there are tremendous racial inequities in the housing market, and it's the suburbs when they exploded in the '50s and '60s, they were primarily right and that's changed a lot. the suburbs have grown so much they really mirror america. every kind of shape and flavor, wealthy, every kind of class and race, they really do resemble america much more than they did in the '50s and '60s and '70s. but people like to be around people like themselves. new york city, the housing prices are pricing out anybody but bankers. so it's not so different. >> host: your neighborhood. >> guest: it's the land of 25-year-olds and $2,500 hand bags. >> host: i saw this transition you talk about firsthand. where tolle brothers, the former suburban mostly real estate developer is now going into the cities because they see money to be made, and these luxury condos look and in fact cost a fortune, so, also that flip, that racial flip, and gentrifi

fha helps no one. rest assured that in times of serious economic downturns, under the path back, the fha can insure loans to any borrower. this means the path would 's existinge fha countercyclical role in mortgage lending which enables the fha to serve as a backstop to keep mortgage credit flowing, promote stability in the housing market, and ensure middle of income families can buy homes. it allows for a new but old method for banks to finance mortgage lending by creating a regulatory framework for covered bonds financing. old becauset covered bonds have existed and have been successfully used in europe for more than 200 years. third pathway to mortgage financing beyond traditional portfolio lending and securitization. when it comes to housing finance, many in washington fight the new and defend the old failed status quo that gave us a government run monopoly, taxpayer bailouts, economic crisis, and delivered only mediocre homeownership rates. but detractors of the path act have claimed it will eliminate the early year fixed rate mortgage. could be the biggest myth about the path act. in fact, section

those communities didn't, the fha would not backed loans for those communities. o it was not, i mean, it was acting in the biases of the day. those are gone now, but there are tremendous racial inequities in housing market. and also the suburbs when exploded in the '50s and '60s, they were primarily white. that's changed a lot. the suburbs have grown so much that they really mayor america. the suburbs a very kind of shape and flavor, wealthy, every kind of class, every kind of race. they really do resemble america much more than they did in the '50s and '60s when they were born. and even the '70s. so that's a little different. people like to be around people like themselves around people like them so sticky seed all over the place. easyou see that a new your city. the housing prices are pricing out anybody but bankers. so maybe it's not so diverse any more. >> host: your neighborhood is -- >> guest: it is. i say it's the latter 25 year old with $2500 handbags. >> host: i saw this transition, i saw firsthand where toll brothers, former suburban mostly real estate d

and that's -- that's the fha. it is broke as of today. e house bill goes a long way to reform that institution. but as we learned from fannie and freddie when you put the government behind the mortgage market, even if you are paring it back it has a habit of coming back and biting you. the taxpayer backing tends to grover the years. >> james, the housing market started to come back across the country as the price is up about 12% according to case-schiller in the last year, 20 of the major metropolitan areas, investment and residential real estate growing in double digits in each of the last two quarters. does that create an opening politically to get this done in congress where you can actually maybe get rid of fannie and freddie? >> i think this may be the only window where you have a housing market that is coming back to the extent that politicians are not afraid to make a change but you also have memories fresh enough from the financial cries that's people still remember why we need to get rid of these mortgage monsters that require hug

i will scratch my head through the mechanics this will not be guaranteed by fannie or freddie or the fha and then whoever buys this will take on the credit risk. i cannot envision this will work but however i've just received an e-mail saying you are supporting walls street with more people flipping them. gerri: maybe that is bad it is a one-way ticket. silver bay, and this company and others, you can see the extent of the investing in what is going on. there scooping up properties all over the country really the only downside is if you want to to buy a house you are competing with wall street in those people have deep pockets. >> the key for bream got. but they are flat at the 1996 levels. why? those people that are applying for the mortgage applications the way they used to but if they do they have to compete with black rock and they gee too far cheaper and protect these policies helped wall street -- wall street more than a street. gerri: i hope he will look in your crystal ball to see any problems that may come up. >> i have been worried about a middle market bubble a couple of years

you have the fha and the original government-backed loans that were put in place to jumpstart the housingarket in the 30s and in the 40s and 50's. a lot of the -- there was a process whereby red blue yellow or green and almost all african-american communities were quoted red. fha would not back loans to those communities so i mean it was factoring the biases of the day. those are gone now but there are tremendous racial inequities in the housing market and also the suburbs when they exploded in the 50s and 60's they were primarily white. that has changed a lot. suburbs have grown so much and suburbs of every shape and flavor wealthy every kind of class and every kind of phrase. they really do resemble america much more than they did in the 50s and 60's and even the 70's. that is a little different but people like to be around people like themselves than you see that all over the place. they new york city the housing prices are pricing out anybody but bankers so it's not so diverse and mr. >> host: your neighborhood is full of that. >> guest: it's 20-year-olds and. >> host: we are now the

fannie and freddy is required in the buy back mortgages, hud and the fha to indemnify them from losses. they want to make the mortgages as safe as possible instead of having a 650 credit score let's ask for a 750 credit score that type of thing. >> warner: haven't there been people been arguing that's actually a good thing. >> it's a good thing if you want super safe mortgage market environment but you're also talking about a much smaller pool of americans who are qualifying to buy a home. >> warner: even now you're saying. >> yes, exactly. you know, compared to 2005 or 2006 we're talking 30 to 40% le. >> warner: our private banks are commercial banks interested do you think in extending mortgage loans. is that private market that currently interested, it's a private securities market interested in buying and selling mortgage backed securities like fannie and freddy do without government guarantees. >> there is a non-agency mortgaged back securities market that exist now but it's a fraction of the size of the government mortgage securities market and it's because it doesn't have a gove

the loan officers. they are getting loans shoved down their throats that they do not understand. fha says they]the cannot sell until that partial claim is paid. you do not know what is really going to go down. [indiscernible]that's not the way i was taught. >> gotcha. my friends, i will be back to south tucson -- everybody is clear that i am supposed to be holding town hall meetings, and i thank you for your participation, and i hope we can continue this immigration reform. congress is in recess, and i hope we can bring people on board through the voice of the people. thank you, and god bless. [applause] next, the republican national committee holds a forum on outreach efforts to women and minority communities. " 7:00 a.m. eastern, washington journal" is live." the center for strategic and international studies hosted a session today with the iraqi foreign affairs minister. u.s.-likely to discuss iraq relations, the syrian civil war, and the political unrest in egypt. live coverage starts at 10 a.m. eastern on c-span. " the road to the white house 2016" features amy klobuchar of minn

the fha which took over 80% of the market during the crash is reducing its role and raising premiums and letting the private insurers are back in. could see more gains when congress figures out what to do with fannie and freddie. sue? >> it's been about ten days now since time warner took cbs off its system in new york, los angeles and dallas. both stocks down about the same. cbs now claims that national ratings have not been hit, but the affiliates have. julia boorstin is in los angeles with more on these stories. those are very big and important affiliates, julia. >> reporter: absolutely, sue, and though time-warner and cbs are become at negotiating table still no sign of a deal and the hardest hit are the cbs-owned of it v stations in new york, california and decline. rating at the 5:00 p.m. newscast are off by one-third and in the 11:00 p.m. hour they are down by one-quarter. with more original programming than in previous summers, including hits "under the doemp" and "big brother" cbs says the blackout is not having a significant impact on its national ratings saying in the firs

>> reporter: in terms of the government side, the fha.d a nap billion dollars in fines in 2009 and 12. they could have to pay billions more in fines. it should be noted them a 20 billion in profit last year. cheryl: thank you so much. let's bring in sr. business correspondent. >> talks broke down. started again because they're in big-time trouble right now. have been talking to lot of senior level wall street executives, ceos are just below that. there have been several firms that have been in the doghouse as the financial crisis. bank of america, the vampire squid. now it's j.p. morgan. but here's the problem. the bigger than these other firms. moorlands to regulate, so have more problems. and the other thing is -- and tell you, you can't really discount this. i've known and. since neither the said gray hair. in know, there was a case to be made that he was just a little too arrogant. i'm not saying he is, but that's what of the people will say. he came out a little too strongly on certain things, that a basically a tax dodd-frank a litt

the fha had racial restrictions in those loans that created white suburban communities and confined blackino and other people of color into urban communities warehousing properties depreciate '80. that made all the difference for some people in material of being able to send their kids to college. most people don't know that history. >> and they also don't, as you've pointed out. they don't know the history but they also don't understand what does that mean in the modern context. what has that led to given where we are now. and there is such an oversimplification. bill o'reilly has gone on and on about black on black crime. it is another area where i think frankly he oversimplifies. now, back in january, we heard mr. o'reilly's solution to guns, not to ban them but dealing with sentencing. take a look. >> obviously, the gun ban in chicago doesn't work. do we all get that? what would work is a ten-year mandatory federal prison term for anyone convicted of any gun crime in the windy city or anywhere else in america. rob a 7-eleven with a gun. ten years in the federal pen. ill left fieldly p

maybe the fha will take it over. maybe they will go private. is all this going to impact the mortgage market and all of you? coming up we'll talk exclusive with new york community bancorp ceo and president. liz: plus this mid-century modern home featured in a 1986 classic movie, has gone back on the real estate market. david: beautiful. liz: we will tell you about the film. can you tell from this picture here? there was a famous scene. david: bueller. liz: how much the house is selling for, gorgeous, right? when we go "off the desk." you make a great team. it's been that way since e day you met. but your erectile dysfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you cabe more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart healthy enough for sexual activity. do

go to college on the gi bill but it also gave him a chance to buy his first home with a loan from the fhaim and to generations of americans before and since, a home was more than just a house. it was a source of pride and a source of security. >> that's talk we've heard for years. you might recall george w. bush's ownership society. but then the president addressed the fact not everyone can or even should buy a home and suggested a re-examination of current policy affecting renters. >> in the runup to the crisis, banks and governments too often made everybody feel like they had to own a home even if they weren't ready and didn't have the payments. that's a mistake we should not repeat. instead, let's invest in affordable rental housing. let's bring together cities and states to address local barriers that drive up rents for working families. >> those aren't big policies the president previewed in renting. they're not on the scale of, say, ending the fact that people who buy a home get a huge tax break and people who rent one get nothing. but there is evidence there is now finally friction

to allow borrowers who don't have government-backed loans to refinance through fannie, freddie and the fha. that would, of course, transfer risk to taxpayers yet again, and it's something congress is unlikely to do. maria? >> all right, diana, thank you very much. diana olick. we'll take a break. disney magic on the line with the latest earnings. we'll have the numbers from disney in just a moment with instant analysis. they are expected to report momentarily. don't miss the second part of my exclusive interview today with ashton kutcher. we'll find out the extreme measures he took to become steve jobs for the new movie "jobs." we'll be right back. stay with us. uh-oh! guess what day it is?? guess what day it is! huh...anybody? julie! hey...guess what day it is?? ah come on, i know you can hear me. mike mike mike mike mike... what day is it mike? ha ha ha ha ha ha! leslie, guess what today is? it's hump day. whoot whoot! ronny, how happy are folks who save hundreds of dollars switching to geico? i'd say happier than a camel on wednesday. hump day!!! yay!! get happy. get geico. fifteen minu

. >> delinquencies are down, which has helped, the companies recapitalized the popular companies. fha is reducing its role in the market. the companies are basically reversing their position and all starting to show modest profitability. >> two more have entered the market. and the six wrote nearly $49 billion in business up 27% from the previous quarter according to inside mortgage finance. of the publicly traded firms. united guaranteed a unit of aig, reported positive income with radiant still trying to break out of the negative. a newbie to the market is comes out strong. up from 3.6 billion a year ago. the latest to the group, national mortgage insurance plans to go public and just made a $5 billion deal with fannie mae to ensure pools of loans. >> the redefault rates on some of those programs have increased, what we would argue is that without those programs, it would have been a lot worse. most of these borrowers would han delinquent and would have foreclosed. >> while the mortgage insurers didn't get a government bailout during the crash, theydi benefit from the housing bailou

i'd like additional info about the fha guidelines. i need to know the basics. all right.t web site and hit rebuilding your dreams and you can watch the segment where i give the details. the most important thing i want you to know, if the guidelines that i went over last week are met, then what they're basically saying is they're going to insure loans one year after a bankruptcy, one year after a foreclosure that you went through, one year after a short sale as opposed to two or three years. that's why i wanted to bring this to our viewers' attention. the lender will have the final say, but we think most lenders are going to go along with the guidelines of fha. watch it on the web site. it gives you all the details you need about the new fha guidelines. >> gretchen: here is tammy from new york. she writes my husband and i trying to short sale a condo. we had multiple offer, but lost the buyers after the lender took too long. we did not pay hoa dues. if we do deed in lieu of foreclosure, the deed, are we responsible for hoa dues? >> deed in lieu foreclosure basically means

your mortgage and something is going on, i do what i do and i noticed that loans insured by the government, fha loans, you are underwater, the bank is holding it and tries to get your modification. the modification in general speaking -- everybody would agree -- means you will get something for yourself. it turns out fha puts the partial claims on, people do not know what they have got, and banks are reselling these to individuals, where a car, 10 years old, gets a brand-new price. they cannot move forward. the banks are not regulated. they never had short sales, these departments, or anything, and now all of a sudden they create these things and each bank has a different recall, and people go to foreclosure. they do not have any way to fight to make some progress. what can be done to regulate these banks and get them under wraps?[applause] >> first of all, i think you are aware that the dodd-frank bill was supposed to, was advertised to make sure that none of these financial institutions were ever again too big to fail. you believe that? of course not. of course not. the reason why this recove

can't afford it, don't do it, and the banks will not take the risk now know -- >> he's doing it with the fhaing if you're foreclosed on or bankruptcy, you can get a new mortgage loan now, don't wait three years. get a new loan. all you have to do is have a job, attend credit counseling. that, anthony, is shoe-horning people into loans they cannot afford for political, social reason. >> well, i think this is a country of giving people second chances. if you make a whole-hearted effort to restore credit and get back into the community in good standards. you deserve another chance. >> selling real estate, playing your own book, aren't you? >> it's important to get people to become good citizens and home ownership leads it to that path. >> we tried that. >> yeah, we did. i think that without them backed up, things will be better. >> we'll see, anthony. we'll see. surprised at your position, but you're a realtor. thanks so much. >> thank you. >> appreciate it. mattday -- matt damon's knew movie hits theaters. according to some, it's a message of socialism. that's not me, somebody else says that.

that means we have to strengthen the fha so it gives today's families the same chance it gave my grandparentsbuy a home and preserves those rungs on the ladder of opportunity. we have got to support affordable rental housing. the mayor seems to have been doing a great job here -- [applause] we've got to continue to do it. fourn bring one in homeless veterans off the streets. [applause] here in phoenix, thanks to the hard work of everyone from mayor stanton to u.s. airways, you are on track to end homelessness for better and, period, by 2014. -- homelessness for veterans, by 2014. we have to keep going. no one in america, and certainly no veteran, should be forced to live on the streets. [applause] so, here is the bottom line. but all his principles together. that is going to protect our at tire economy -- our entire economy. and it will improve the housing market, not just here in phoenix, but throughout the state and the country. make sure that we are protecting individual homeowners. we have to give them the tools so they can protect themselves. a consumer finance protection bureau that we

reduce the fha loan limits to shrink the government footprint there. more regulatory clarity.ulations that mortgage originators have to deal with, and he wants to overhaul the immigration system as part of this, claiming when you have more immigrants in this country they're more apt to buy houses and you stimulate the housing market but when you talk about reducing the government's role, one analyst says that could cost homebuyers more. >> any housing finance reform plan unfortunately is going to make rates more expensive. i mean what you're trying to do is reduce the government subsidy for housing and there's no way to do it without seeing the costs to the consumer go up. >> so there is some agreement in washington. the president, democrats and republicans all want to unwind fanny and freddie. the question is, how do you replace them? the president's plan calls for a bit after government guaranty. he wants private investors to take the loss first. at the end there would be a catastrophic government backstop. what the president and democrats are pushing for more government int

tell us about the new fha guideline. >> i'm very excited for our viewers.is came out with new guidelines. basically says that if you were a victim of what they call an economic event, foreclosure, a bankruptcy, a short sale loan modification, if during that time your household income went down 20% for six months, if you basically earn are in a good recovery where you're current on installment loans and go to counseling, housing counseling, you then could be eligible for them to insure a new loan and that is very, very significant in the scheme of what we've been going through for the last four or five years in america. >> ainsley: is this in your opinion, going to be helpful for our country going forward or is there a down side to this? >> here is the big change that i'm excited about. most of the viewers that i've had the opportunity to talk to and read their e-mails are very educated. it used to be that if you had a bankruptcy, the fha would not insure a loan for two years. if you had a short sale or foreclosure, it was three years. if you fall within tha