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Well after months of back and forth federal and state authorities have struck a 26 billion dollars -- in -- deal with the the five biggest banks in the mortgage market under the terms of the -- homeowners in danger of losing their homes will get some relief.
Will make it easier for current borrowers to refinance but the -- very complicated doesn't cover at least half of the homeowners in trouble and that.
In the -- really doesn't give distressed borrowers that much financial relief that they need so will it really move the needle much in fixing the housing market let's ask.
The state go road team investments founder and president Tonya mark you know.
Good to see Tony -- thanks for having been -- before -- -- -- post facto it's good to see budgets are what do you think this deal.
It's a political campaign it's not gonna move the needle at all it's not an economic strains of political get a 26 billion dollar are you surprised that you know -- -- a good point now this is not gonna do anything for the housing market.
Underwater homeowners fourteen million Americans 700 billion dollars this is supposed to help.
Holland one million yet 1000000 and 25 billion and only seventeen billion of that it's actually going to the homeowners and ten billion of that is going -- Principal reduction in.
It's is very complicated and it's gonna be like everything -- harp camp half but none of -- -- Let's try to make it uncomplicated but one thing that you think is good.
Is reducing principal correct if they can do it correctly and don't put it on the burden of that the -- of the tax pay bingo period so if the banks come in and actually reduce principal.
I do think that will create jobs I absolutely think they'll put money in okay economy stop -- How can we make sure that the taxpayers don't get on a hook for this that is absolutely the problem how I think about -- -- -- I must be away -- -- we need to sit down and actually really figured that out we need to help them and I really think that realtors.
Need to be on the frontlines of this because I do think that realtors were on the front lines of the problem.
Bankers -- on the front line of the problem we need to sit down and really figure this out.
It needs to be the first stat but for a short sale before foreclosure can we reduce principal through the bank.
By the way it is it clear -- you when looking at how convoluted this thing is that they didn't get the advisor real estate people they didn't get any real -- advice at all so this was all something created by these geniuses.
These these housing czar is that they have.
That don't know practical real life -- The National Consumer Law Center set servicers can make money on foreclosures -- late fees.
And other foreclosure related fees servicers pre further foreclosure over loan modification even though is not in the best interest of the -- -- Now isn't that scary yeah well it's because it's easier way to go right absolutely it's easier and they make money on it.
-- right now of this administration and the Federal Reserve board is obsessed with the idea of getting interest rates down so obsessed by the way that what -- -- reserve doesn't printing out money to keep interest rates down is killing us at the grocery store and at the gas spot.
So and and by the way for all those efforts to get the interest rates and interest rates -- -- -- as low as they've ever been and people still are buying houses so it's not working but they're stuck on this idea that that's the key.
To the housing problem getting interest rates -- and that's part of this too.
Yes that has absolutely nothing to do with anything interest rates really -- the interstate all that doesn't kick the can down the -- So someone reduces their interest rates puts a couple of dollars in their pocket many puts it into the economy which would be great.
But when not -- -- save it rather how many we Hispanic but anyway but when they go to sell their house they are still underwater so all that did was put a band -- on us got cut that needed stitches.
Really is what it did because.
They're still gonna be under water so another Jennifer clothes and we help them reduce the richest I know.
Are these failures by the way the billions are -- in this particular the obvious or pay by the banks banks are doing pretty well also may -- Maybe they can eat the cost of this but is is it just money down a drain.
Well here's what I think the banks yeah I think the bank should be able to write it -- over several years like we write legislation for this all the time.
So if the banks could actually reduce principal.
And write it off over several years it be great but for this particular settlement.
The banks have been preparing for this so that they are absolutely not out one dollar on this they have been stashing this money because they knew this was -- All right well it's -- their money he saw a day mavens statue they can pay it but it's it's gonna take a bite.
But it's not to have any affect any positive effect on not thank you very much -- -- -- -- person finally did a good.
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