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FBN’s Gerri Willis on the potential illegality of a Chicago plan to boost the city’s housing market.
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The face of Chicago style politics may have broken the lock and I'm not talking about Rod Blagojevich.
-- the governor who tried to sell Barack Obama's Tennessee I'm talking about another very well known Democrat.
The president's former advisor Rahm Emanuel who now faces accusations.
That his plan to rescue Chicago's ailing housing market.
It could be a legal -- -- -- federal regulators are suing the former White House advisor.
Here is the back story.
Chicago has become overrun with vacant foreclosed properties many of which -- become magnets for gangs drugs and other crimes.
-- cities spent more than fifteen million dollars and 2010 alone dealing with these vacant buildings.
So the manual -- is right there and City Council came up with a plan.
No they're not working to -- foreclosures along faster that would help the market instead.
The -- is forcing banks to keep up these foreclosed houses by mowing lawns shoveling snow boarding up windows basically making the better.
They'll have to pay a 500 dollar -- to register -- building and then maintain that.
If not there will be a thousand dollar fine for each day the home has not kept up the city standards.
Out of banks claim this isn't their job.
And there's also this the home may be in foreclosure but that does not mean the banks actually own -- home.
Last time I checked it's still illegal to -- somebody else's house their private -- So in many cases bank's hands are -- The other major issue here is many of these vacant homes are on the books of Fannie Mae and Freddie Mac.
These are the federal mortgage giants backed by 151 billion dollars and our tax -- money.
So think about it the fetus in many cases we'll have to be paid by taxpayers.
Because the loans are own by Fannie Mae and Freddie Mac.
Just what you wanted as a -- Christmas after right.
More of your money going to these two failed federal mortgage companies.
And that's where the legal questions -- -- The Federal Housing Finance Agency those -- the regulators suing Chicago saying at Citi agency can't supervise a federal agencies surprise surprise.
The mayor says the feds don't have a case but now it's up to the judge to decide.
And here is a common sense idea.
And -- -- taxpayers responsible for -- pork -- closures.
It would be better to process foreclosures faster and speed the market to recovery.
Right now it takes nearly a year to process a single foreclosure.
What's more raising fees on banks will hurt small lenders and -- borrowing costs through the roof.
My advice there's nothing in this plan to recommended deep six it and those Chicago style politics that go right along with that.
That is what.
