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The Obama administration apparently planning another sweeping overall of the housing market and the taxpayer owned mortgage giants.
Fannie Mae and Freddie Mac.
And Federal Housing Authority.
May have some small role in all of this joining me now -- a manner of a large role in all of this Richard Smith he's the CEO Realogy.
The parent of real estate brands including century -- one Coldwell Banker Sotheby's.
Many other prestigious real estate -- great -- -- -- and it's my pleasure -- -- let's start with first.
This apparent attempt to.
In the housing market what are -- what do you make of it.
Yeah I'm not sure what this is about.
It's a mystery to does that less than industry and I think -- association's.
And it's -- them as well I think it pertains to the TSE's I think I don't think it's another bailout program Fannie Mae Freddie -- that FHA yeah I think it's from being responsive to their true -- white paper that was issued by the Treasury Department that out.
Prospective options so perhaps.
Extended period later there -- now actually picking one of the options when Richardson says perhaps.
That tells me.
The Obama administration's still hasn't learned.
That it needs to talk with the industry what in the world is going on here and I think that's right I think they listen -- policy makers for not listening to the industry.
Now that said.
We still do everything we possibly can -- get a foot in the door.
But on this issue if they are announcing a major GSE reform policy.
Or proposal it's it's new to us.
What it would be -- to you who would be near costs and and I'll refer to us as the broad media I'd even throw in the liberal media.
-- -- -- -- But isn't there should there be some some acknowledged.
That these GSEs.
Were not victims of what we've gone through.
They were the incipient route of what happened to us.
-- -- -- Yeah this is all of -- I mean this is throw the baby you know the bath water and try to figure out how you resurrect.
Something that is obviously very important housing where they would have already shut these down.
Now this is not as pressing as the debt ceiling issue -- and all the other issues that are affecting the business community right now.
They can kick this -- the good news is.
They can't -- that number -- but the good news is we don't know of a plan.
At all or in either case either for the debt.
Ceiling impasse war for for house that's true a lot of uncertainty out there.
The this administration's been very effective as much as I had it discussed me to say that.
Timothy Geithner the Treasury Secretary has succeeded in selling August 2 is a date certain for automatic default.
And when I say succeed I don't think he succeeded in the -- in the real debt markets I do think though politically he has succeeded in selling -- do you -- It's definitely is the date everyone's focused on so whether it's correct or not then in reality it's the -- and the debt markets are going to pay attention of that day.
So I think it's important that.
That may rise to the occasion.
Do what is required of them as soon as the professionals they are use that word I think correctly.
And deal with is that ceiling issue this is and again it's and does not a revenue issue this is a that is you know this is -- think this is an expense issue we need to do.
Cut overhead as all of us have in the business community.
-- -- that's as the government needs to -- that the government is to the business community has been doing this for over five years so we we know our obligation or shareholders should that include reducing the payroll of the federal government will of course have and I -- as -- example laid off about 30% of our staff over the period of five years others have done that we're deeper.
It was necessary it is it is the obligation you have.
Sure we just be very clear.
The federal government has added employees during this.
Or -- -- recession in this awful recovery no doubt they year old the only element of our economy that has done so.
Local government state government.
All happened private in the private economy of course have all.
Cut their payrolls that the federal government is the average selling price in Washington DC is actually up broader trends are -- -- there's -- reason for the and this obvious trees.
They're in different.
By -- appearances to what's happening music business would accept higher taxes.
Now that's and there's going to be this would accept a rollback of subsidies.
Tax credits investment products.
I think pressed hard perhaps but that's not the issue again -- issues the overhead but this is a simple process that is literally -- I mean.
You and I could do it over better if this is not that difficult we can eliminate the overhead.
As painful as that may appear to be it's necessary.
Maybe the next book will be written about Washington DC -- -- profiles in cowardice.
But -- that could very well being we'll see a big -- we'll see what's gonna happen on August the second.
Richard Smith always good to talk no -- been.
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