theres nothing that bad with that housing. the arm has started to work it way out. this is common. just tap it back in with a hammer so the flapper lines up back over the whole. then secure bushing using a punch. this will keep it from sliding back out. The small crack under the flapper will hardly slow the spool of a 14b. they spool so fast you wont notice. has zero effect on hp since the flapper is fully open under full throttle anyway. with no stripped studs that is what I call a good housing.