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And Friday may be getting a new boss democratic congressman Mel Watt.
From North Carolina is reportedly under consideration to -- the financial housing finance agency those -- the regulators.
The congressman who's an -- for more access to mortgage loans for low income consumers.
And -- and black consumers is raising eyebrows and this at his colleagues in Washington are putting the popular mortgage interest deduction.
I hear it away -- is Dan danger from the Wall Street Journal tied Dan thanks for coming in tonight.
I am blown away by the Mel -- story because.
You know he's very familiar with the housing market I know that much but to propose it this time to make sure that we have loans it.
And people blowing -- getting mortgages isn't that what drove us into the financial crisis in the first place.
-- says and does not put too fine a point on a -- but I would say.
Appointing a member of the House of Representatives can be to chief regulator of -- Fannie Mae and Freddie Mac is basically insane.
Why well well for starters your congressman watt took campaign contributions from Fannie and Freddie as did many others but nonetheless I mean their support.
Conflict the conflict just to start.
Secondly let's understand something this agency the Federal Housing Finance Agency is only five years old.
It was -- it was created in the wake of the problems with Fannie and Freddie and its job is to preserve and conserve.
It's assets which is a state the tax payers money and to put it on a sound footing.
So -- job is not to determine who should get Morgan exact country its job is to make sure the system continues.
And a sound that's.
Exactly right now its current the current head of the agency is Edward DeMarco.
And for three years Ed DeMarco has been trying to do exactly that and that has put him at loggerheads with the house Democrats.
Who in January 20 tall ask President Obama to replace -- DiMarco.
Well and I remember that he said no way the president's plan to.
Which would have been born on the backs of bond investors in all likelihood -- also have to talk about this idea of getting rid of the mortgage deduction now right now it's being discussed.
For people who have very big mortgages or second homes.
And in fact there are a lot of very wealthy people who say there are OK with that.
But I look at the confluence of these two stories right you have.
Mel -- on the one hand saying we've got to get more loans to people who may not be able to afford it and that's what we learned of the financial crisis and on the other hand.
Let's take the deduction -- -- from the people who are actually making their mortgage does that make sense to you.
It it doesn't make any sense but it's typical of the sort of convoluted way Washington thinks about issues the issue here I believe -- tax reform.
And if you're going to do tax reform and try to lower rates the mortgage interest deduction has to be on the table.
I've always been fascinated by the proposal backed that the Simpson Bowles commission made.
Which was if we eliminated all of these to talk shows charitable mortgage and so forth you could get tax rates down to 813.
That would be a much more simplified tax system if you start adding these things back it's hard to know where to stop.
But the only problem with that thinking is the housing market has been in a funk for so long.
If you take away the mortgage deduction particularly if you take it away for everybody people who want to get into that market for the first time may say well I can't do it.
Well you don't raise the question -- of white housing should be a special sacred -- Like this it's like agriculture and Francis will speak part of the way -- -- for -- does that mean we have to subsidize agriculture or subsidized housing and I'm.
Weddings we subsidize you -- -- -- draw the line married their breaks for being married.
Their breaks for having children I mean we do make moral choices all the time with their tax code.
That's what the tax code is a mess if we would simplify.
People's money back all flat tax you and yeah viewers agree with you all right.
I I just love the sea that's housing market get bailed out because to me.
That's what drives middle class.
Money that's what makes people.
Hole in their retirement is having -- housing investment that makes sense Dan I have to with a pair starry night thanks for coming on and disagreeing with me appreciate it.
Up next the hypocrisy of our federal government just wait till you.
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