In the speech, President Obama is effectively throwing his way behind a bipartisan senate proposal to partially but not entirely pull the government out of the mortgage business. Right now most 30-year fixed rate mortgages are backed by Fannie Mae and Freddie Mac. This plan would put private companies on the front lines. Michael Calhoun is President of Center for Responsible Lending. 

He is endorsing the basic concept that the government should require private capital to be at risk, but the government should make an explicit backup guarantee and charge fee to the lenders for that guarantee. 

House Republicans prefer a plan that gets the government entirely out of the mortgage insurance business. Ari Shapiro, NPR News, Washington.

This comes as the Justice Department announces it's suing Bank of America and certain affiliates including Merrill Lynch and Pierce for alleged mortgage-backed securities fraud amounting to $850 million.

The long awaited trial surrounding the 2009 mass shooting at an army base in Texas has begun. The prosecution told the jury Major Nidal Hasan wanted to kill as many soldiers as possible at Fort Hood. NPR's Martin Kaste says Hasan who is representing himself, also gave a brief statement in which did not deny being the shooter who killed 13 people and wounded more than 30. 

Major Hasan is going to make this trial about his motives, his religious motives, his ideological motives to attack his fellow soldiers. NPR's Martin Kaste reporting.

The State Department is urging all U.S. citizens in Yemen to leave immediately because of high risk of attack by al-Qaeda. This comes as Yemeni media report a suspected U.S. drone killed several militants today. The U.S. has been warning of a security threat for days prompting the continued closure of many embassies and consulates in the Middle East and Africa. 

In Egypt, Republican Senators John McCain and Lindsey Graham are trying to help negotiate an end to the political unrest that resulted from last month military coup against President Mohamed Morsi. Today, McCain said the U.S. has shared Egyptians' expectations and criticism of Morsi's oversight of democratic change. 

We've also said that the circumstances of the former government's president's removal were a coup. We've said that we cannot expect Egypt or any other country to abide by its laws if we do not abide by ours in the United States. 

After talks with Egypt's interim leadership, the senators said it would be wrong though to cut off U.S. military assistance, which amounts to about $1.5 billion a year. 

Before the closing bell, Dow was off 93 at 15,519.

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Former President George W. Bush is said to be in high spirits at a Dallas hospital after a successful heart procedure today to address a blocked artery, a stent was used to open the blockage. 

Keyboardist and composer George Duke died last night at the age of 67 after a long battle with leukemia. NPR's Neda  Ulaby reports Duke collaborated with some of the biggest names in jazz, pop and rock. 

George Duke on keyboards. 

Frank Zappa introducing his band, the Mothers of Invention in 1973. Duke front top of Zappa's experimental rock. Duke collaborated with Miles Davis, Cannonball Adderley, Jill scott, even Michael Jackson. He played keyboards on Jackson's breakthrough album Off the Wall. Fans cherished Duke's silky fusion albums and he was a behind-the-scenes impresario who produced the Soul Train Award shows and a legendary benefit for Nelson Mandela in 1988.  Last year, George Duke's wife passed away and he dedicated what would be his final album to her. Neda Ulaby, NPR News.

The U.S. trade gap has hit a 3.5 year low, the Commerce Department says the gap fell more than 22% to $34.2 billion in June. The deficit was smaller than the government had estimated in its advance gross domestic product report last week.

Before the close, Dow was down 93 points, more than 0.5% at 15,519; NASDAQ off 27 points at 3,666 and the S&P 500 down slightly, it's 1,697.