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Realogy CEO Richard Smith on what role the government should play in the housing market and how the economy and jobs are affecting the outlook for hou...
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Well confidence is coming back to the stock market will the housing market follow real -- CEO Richard Smith.
Joins us now Richard Smith welcome -- wonderful to have you here.
So witty thoughts I mean big confidence coming back the stock market first question but that transpire in to the housing market.
Oh absolutely the macro economics for driving announcing now is historically it's been the exact opposite but is all about job and job creation.
To the extent that we are successful in doing now housing turnaround.
It's also about credit and the Federal Reserve despite the fact we're at record interest rate lows.
The Federal Reserve still thinks it's worthwhile perhaps where at least some of the Fed members -- pushing rates lower.
Would that move the market because it hasn't so far by hasn't so far but remember we're talking about.
Unemployment here this is not the nine point one or nine point two it's a much bigger issues and interest rates the -- underemployment numbered sixteen point five.
45 million American jobs so that's definitely impacting announcing.
What is all of this say to you about.
What you think the proper role for government should be in the housing market to get it back on its feet.
-- -- to Begin with do no harm.
-- -- doing no harm is a good principle by which they should -- there are some fundamental structural issues.
GSE reform is -- gigantic issue which they are -- and Freddie they are electing the kick this can down the road.
You have a number of other issues Dodd-Frank is weighing heavily on the marketplace but especially from a lender perspective.
There are a number of it just conforming loan limits just expired.
So in the midst of a housing downturn you let the the limits that would have -- definitely impact the west and East Coast a lot of expire makes no sense so you need a coherent national housing policy.
Which we do not have right now.
Although you have some people -- the more the government does the worse things get Mitt Romney of course famously last week said they just time just to do nothing maybe it's time to pull back.
Let the prices fall where they will and then the housing market will recover from their what you think of that and he's absolutely right -- to foreclosures.
The programs to this point have been unsuccessful and yet again we're trying to at least a half a dozen -- and there's what do you think the latest.
I think it's worth.
They view.
These are already -- -- -- to Begin with so refinancing doesn't seem to be as troublesome as the prior programs so where generally in support.
Of the current idea now we'll see if it if it's successful.
What do you think and this idea to grant resident He says to foreigners if they buy homes -- 500000 dollars.
That's the solution looking for problems twice that it's not necessary the year over year growth and foreign acquisitions about seven.
Total is about 8%.
I think -- -- -- -- -- -- -- -- -- -- -- That growth is point 4% your rear seat there's not much more you can -- it at and and and it's too limiting in its approach there are some practical issues with the bill and it's only component of a broader bill which of the tourism bill -- I think it's getting a lot of media like.
But it's -- -- and virtually no impact nobody -- is in touch with the real estate market is you war.
Our day in touch with the or the policy makers calling you weapons saying what we do we just mentioned one candidate who has -- -- Asking for advice and counsel so others have as well it's funny because He is being lamb based for saying it's it's time for the government to stop.
Doing stuff to stop doing harm -- shouldn't be I mean this is this is about the foreclosure issue here we are what four years later and we still have the same foreclosure issue we started work.
Let's get the government out -- way and let's that the natural private market deal with us and it will quite effectively has historically.
Richard Smith real with you thank you very much for coming in appreciate it.
