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It gets rid of fannie mae and freddie mac but leaves something called the federal housing administration in place. and that's -- that's the fha. it is broke as of today. the 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...

And fha raised their limits a couple of years ago so we have more taxpayer backing of people buying large house that is aren't always their first and second homes, it's absolutely ridiculous and it's why so much to bail it out when it comes undone. >> brenda: toby, the question though, this is not just a housing crisis, this could turn into the whole financial crisis that we faced a few years ago. >> i don't buy it. we'll have a bailout, the no question the taxpayers are taking out fha in a big way because we're completely unside down and the only saving grace we have, this time we're not fina...

Don't skirt to the side and fannie mae and freddie mac ought to be reined in and we ought not have the distortion to the market in the area of housing. bill: to that point, what would congress do to change itself? i have an article from september, 1999, from the "new york times," that talks about the changes that, went forward in law, that would help more americans get a loan and could buy a home and the rules for fannie mae and freddie mac were changed 11 years ago, what is the proposal to change those back? >> well, what needs to happen, frankly, is that the portfolio, the amount of money th...