we have had the fha since 1934. it would stay just as it is. if you go back to the 1940's and 1950's, it played a huge role in the market, as did the fha. ginnie mae became as securitizer in the 1970's. those would stay. fannie and freddie, to the extent that they have similar programs, which i define as subsidy programs convening government subsidies, which is the same as doing non-market transactions, and they would move into hud and become part of the fha/engine e-mail complex -- ginnie mae complex and would be subject to congressional oversight. >> you would retain a role for the government in providing a guarantee for the set of conforming mortgage products, but you would limit the extent of those by limiting -- by setting a price limit at the median house price by area. >> that is the transition idea. in my far future, there would as fannie and freddie. >> the fha, which your excellent the virtues of appropriately, would do what -- you are extolling the virtues of appropriately, would do what? >> i did say they were here since 1934. they

we have had the fha since 1934. it would stay just as it is. if you go back to the 1940's and 1950's, it played a huge role in the market, as did the fha. ginnie mae became as securitizer in the 1970's. those would stay. fannie and freddie, to the extent that they have similar programs, which i define as subsidy programs convening government subsidies, which is the same as doing non-market transactions, and they would move into hud and become part of the fha/engine e-mail complex -- ginnie mae complex and would be subject to congressional oversight. >> you would retain a role for the government in providing a guarantee for the set of conforming mortgage products, but you would limit the extent of those by limiting -- by setting a price limit at the median house price by area. >> that is the transition idea. in my far future, there would as fannie and freddie. >> the fha, which your excellent the virtues of appropriately, would do what -- you are extolling the virtues of appropriately, would do what? >> i did say they were here since 1934. they

fha since 1934. it would stay as it is and jenny mae played a huge role in the market as it is today. wasit became a securitized arr very effective. fannie mae and freddie mac would have similar programs, which i define as subsidy programs, which is the same as in nonmarket transaction. it would move and become a part of the fha complex and be handled by the congressional oversight in the same way they are. >> so you would retain a role for the government and provide a guarantee for a set of conforming mortgage products, but he would limit the extent of those by setting a price limit and a median house price by region. >> in the far future there were a pinel gse's -- there would be no gse's . >> fha would do what? >> i said they had bet -- been here since 1934. it would focus as it needs to on the soundness of its mutual portfolio. and they may try to get them financial statements that people could understand. i was just that as a good project. >> ok. do you want to add anything to this debate? >> i

. >> reporter: fha homes easier to qualify for government qualified homes once considered poor man's loans are becoming more and more popular every day everywhere. >> but most markets outside of the east contra costa market, most markets aren't aware of fha and what it really is available. it's a government insured loan and that's where the loans are available right now. >> reporter: requiring only 3.5% now, for more and more folks, fha is the only way to get a home loan. >> and i think if you ask ten people on the street, i wonder if anyone could afford the home they are living in now or should i say, qualify for the home they're living in now. >> reporter: ironically it's the best time in a lifetime to buy a home if you can get a loan. reporting live, consumer editor tom vacar, ktvu channel 2 news. >>> the latest jobs report released today is a mixed bag. initial claims for unemployment benefits last increased by 19,000 from the week before to 479,000. economists had predicted a dip in claims. meanwhile the number of people still looking for work fell 34,000 to 4.5 million. signifi

had the fha not stepped in, the housing crisis would have been much worse. it is on the gun, house prices are down 30%, but it is easy to say the price declines and hit to the economy would have been greater. now the government has 50% of the purchase market. there are two things that the government should do in its role. it has to provide access to affordable housing. this will be more important going forward because lower income houses are under more stress than they have ever been. it will probably get worse. they will not have access to housing which is a necessity. that does not mean a single- family home. we have not paid close enough attention to rental housing. not everyone should have a single-family home. government has to play a large role going forward. the government's role in housing needs to be pulled back significantly compared to where it is today, but also compared to where it was prior to the crisis. the boy is still quite large. the private market is dormant and cannot step in unless the government steps out. the crisis is still ongoing.

and rib, fha loans are readily available. they only require 3.5% down and you do not have to have sparkling credit to get them. i'm consumer editor, tom vacar, ktvu channel 2 news. >>> town of fairfax is considering a six-month moratorium on new hot clubs. it's also home to the oldest legally sanctioned pot distribution center in california. it eached in 1997. however, town official want to wait until after the november election before considering any new facilities. on november 2nd, voters consider proposition 1, which would legalize marijuana throughout the state. the town council is set to discuss the issue at its meet on wednesday. >>> a little more than a week after a man jumped to his death at a concert in saratoga, it doesn't appear security will be beefed up at the venjust. michael pickels of san josi jumped from a roof to the stage at the mount vernon winery amphitheater as the folk rock band, "the swell season" performed. the san josi mercury news is reporting live nation initially said it had no plans to change sec

the administration will allow disstressed homeowners to seek changes to the housing administration or fha. critics say this and other forms of intervention have left the residential real estate market in a state of flux. most successful changes have been carried out through private banks. >> a small bay area public radio station held a unusual fundraiser today. the off volunteer station relies on its listeners for all funding. today they hosted a car show and played oldies music which is one of many genres played by the station. >> the programmers who work here are people who are all real specific. they have experience in 50s music or blues or whatever and they like that stuff and know about it and they want to put it out to the people. >> they run on about $100,000 a year and hope to raise between 12 and $13,000 this weekend. >> the ball that started in san francisco 31 years ago is heading to the east bay. organizers have decided to move it from daily city to the richmond waterfront. the event has drawn as many as 20,000 people. it'll be scaled back this year with room for just 14,000 p

we don't have an fha loan. we have a jumbo. our house is under water. we didn't put in the 20 percent down we should have. in north virginia , they bought them out. in fair and prince williams, they are under water by no fault of our own. i saw the program. it does have a provision that was approved for homeowners whose homes are worth less than they were when they purchased it. that program is available to anyone, not just people who got behind but people who market forces drove them under water. the government is offering to help anyone but the problem with the program is, i spent probably an hour on the line and spoke with people taking information and send to someone else. they take you to a counselor only to tell you, it looks like you are a perfect candidate. you are eligible to get your mortgage reduced the 2%. can you refinance to be at a normal level. then to be told you are on a trial program. during the three-month time, we are going to low er your mortgae payment. which in affect ruins your credit. it makes no sense to me. i'm trying to take

a down payment for people who want to take out a fha mortgage, the down payment requirement is 3.5%. for fannie and freddie, it could be anywhere from 5% to 10%. for jumbo mortgages, it would be higher down payment requirements. we do not have the situation where people can get a zero down. host: conn. caller: this is a question about private mortgage insurance. why these companies are still in business when the precipitation of the financial crisis was these loans were sold for under water and what role the relationship with the banks pmi have kept banks from restructuring loans. is it true that banks refuse to modify loans because of their contractual relationship with pmi insurers? they have taken huge financial losses. they have to cover those losses. they have taken the huge financial cuts. the caller makes a good point. it is not a simple loan modification program. the lender should just modify the loan. they need to get an approval because many borrowers have taken out a second mortgage. they did not have the 20% down payment. and then there's the private mortgage insurance. t

commanders with the information they need, and as i mentioned earlier, as we continue to work with the fha -- faa, i'm sure there will provide outstanding to the ability for domestic use -- they will provide outstanding capability for domestic use. host: one more call. caller: hello, can you hear me? host: caller, you are on, go ahead. caller: i am glad you mentioned domestic use. i believe that the ultimate use of these predator drones unmanned vehicles is to spy on americans who are critical of the government and to attack america, not the foreign devils. that is why you are trying this out that is so innocent and -- thisrottin -- >>trotting out that is so innocent and nice. alex and jones has blown the lid off of this. he shows us a video game where the bad guys that you were supposed to kill and the video game are american patriots and militia members that are standing up for freedom. the good guys that kiddies in america are supposed to be -- united nations forces. one man is still in jail for refusing to wear a blue helmet for the united nations. host: okay, we believe that there. co

cannot working because the language in the forgiveness modification rules is weak, and the fha short sale program continues to be advertised as being de minimis, with lenders been pushing back on both. another proposal comes from my colleague david greenlaw. he hails from the great state of new hampshire. the government has guaranteed the principal value of the 37 million mortgages backing by tse's. there would be no credit risk for a mortgage originator who agreed to refinance these mortgages if the government guarantee were extended to the refinanced loans. that work -- he estimates that households could save $46 billion annually the mortgage rate could be reduced -- if the mortgages were refinanced. what about employment? perils' had been flat of the last year, including much of that cyclical weakness due to the tepid state of the recovery. the problem is that the high fixed cost of health and other benefits, when adjusted for living standards, benefit costs and not gary with hours worked. they are paid on a per-worker basis. as employers seek to cut the cost of compensation, if t

commanders with the information they need, and as i mentioned earlier, as we continue to work with the fha -- faa, i'm sure there will provide outstanding to the ability for domestic use -- they will provide outstanding capability for domestic use. host: one more call. caller: hello, can you hear me? host: caller, you are on, go ahead. caller: i am glad you mentioned domestic use. i believe that the ultimate use of these predator drones unmanned vehicles is to spy on americans who are critical of the government and to attack america, not the foreign devils. that is why you are trying this out that is so innocent and -- thisrottin -- >>trotting out that is so innocent and nice. alex and jones has blown the lid off of this. he shows us a video game where the bad guys that you were supposed to kill and the video game are american patriots and militia members that are standing up for freedom. the good guys that kiddies in america are supposed to be -- united nations forces. one man is still in jail for refusing to wear a blue helmet for the united nations. host: okay, we believe that there. co

they are not working because the language in that forgiveness modification rules is weak and the fha shorts sell program continues to be advertised as lenders pushing back on a boat parade of the proposal -- another proposal comes from my colleague. mr.greenlaw hail from new hampshire. the government has guaranteed the principal value of the 37 million mortgages backed by the agencies. there would be no credit risk for the mortgage originator who agreed to refinance these mortgages if the government guarantee was extended to guarantee loans. we can provide details to you but households could save $36,000 annually at half the mortgage is among these 37 million refinance. what about policies to improve employment tax private non-faram payrolls have been flat over the next year -- over the last year. in our view, there are four structural components at work. what is the cost of labor resulting from the escalation benefits. -- one is the cost of labor resulting from the escalation benefits. we are out of line with other countries. as employers seek to cut the cost of compensation in toug

they are not working because the language in that forgiveness modification rules is weak and the fha shorts sell program continues to be advertised as lenders pushing back on a boat parade of the proposal -- another proposal comes from my colleague. mr.greenlaw hail from new hampshire. the government has guaranteed the principal value of the 37 million mortgages backed by the agencies. there would be no credit risk for the mortgage originator who agreed to refinance these mortgages if the government guarantee was extended to guarantee loans. we can provide details to you but households could save $36,000 annually at half the mortgage is among these 37 million refinance. what about policies to improve employment tax private non-faram payrolls have been flat over the next year -- over the last year. in our view, there are four structural components at work. what is the cost of labor resulting from the escalation benefits. -- one is the cost of labor resulting from the escalation benefits. we are out of line with other countries. as employers seek to cut the cost of compensation in toug