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Former Treasury Senior Advisor Susan Ochs on the benefits of the government’s $25 billion mortgage relief program.
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While back to follow the money the 26 billion dollar mortgage bailout is not fair to all the other Americans who've been paying their fair share joining me now is who's -- former senior advisor.
To the Treasury Department under that when president president Barack H Obama thank you for joining citizens okay so.
Here's the way I see it now throw it out there -- looks like 2526 billion dollars.
That Obama just reached into the pocket of five big banks this is by the way -- -- -- you guys you -- -- complain about it.
I'm gonna take this -- just give it to people who aren't paying a mortgage or some states cases they are but who we want to help on a little bit maybe I wanna -- the voters.
So.
First of all this is 49 state attorneys general so that's Democrats and Republicans -- not just -- Democrats who agree to this deal.
Second of all part of the idea here is to help limit the liability of the banks right they're facing.
A lot of pressure from suits both investors -- -- seats across the board in the mortgage world.
And it's Friday big overhang on the banks -- -- this is this is gonna -- the -- on this particular piece so that's the good thing and the banks -- actually happen.
I'm not positive that does I -- I read the did did the law and it looks like it won't.
Capped the liability you know there's still liable that uncertain war uncertainties -- on the securitization -- -- but on this particular part of robo signing.
This is this is capping and I finally.
And that's -- -- if there's a very important point they're making up.
26 billion dollars so far raised.
At one point five billion I race they -- what they -- point six gunned all they're only gonna give back one point five billion to the people who were hurt by B robo signing.
So the other 2425.
Billion dollars is going for other things like homeowners underwater.
Homeowners who haven't paid their their mortgages people who've lost their jobs I mean seriously it's it's it's a theft of private.
Money in given -- to -- distributed.
To people maybe for the world.
Well don't forget some of the people who were foreclosed upon.
It was not wrong that they were foreclosed upon the procedure in which they got to the foreclosure might have been flawed.
But the end of the day some of those people probably should've been foreclose on so not everybody.
In this whole universe.
Has a strong -- however.
This is helping to cap and they sent a liability on that point -- that you don't have massive class actions going after the banks and if you look at the fourth quarter earnings in the banks.
They're actually starting to improve on a lot of levels don't repeat donor hand on the banks because they normally is that I'm not happen -- illness -- -- saying is that the one big overhang that you -- their earnings reports in the fourth quarter -- mortgages.
Lending is increasing a lot of things are ruining our direction but so is the big.
She's so you working in the Obama Treasury Department markets.
700.
To 750.
Billion dollars is what the amount of money that Americans are underwater on their homes.
What is this 23 and a half for 24 billion dollars gonna do for that.
It's you know it's it's starting to make content -- you know you you're not gonna solve this problem overnight housing is one of the thorniest policy issues.
Precisely because -- the point that you raised and how you decide who who gets help and who doesn't who's the most -- You know in in business how do we how -- -- and -- there could there have joining us federal administrator who's gonna start making some his decisions just in the same way you did in the 9/11.
You know compensation issues I mean like the -- or not -- -- not easy questions today are gonna pinpoint.
Swing districts one.
How do you know.
Because I don't know.
Because they did -- that -- -- money up already among states and it's based on.
The the the level of foreclosures and in -- as -- -- cost and I'm supposed to believe that.
I'm supposed to believe that -- that -- administration they'll reach into the pocket of private companies and steel.
Extort 26 billion dollars is gonna start to all of a sudden do the right thing and say will give it to the most comfort this is as I've said this is 49 state attorneys general this is not -- -- Democrats driving history and don't think that the attorney general.
Or not -- very hard by the way this is a very -- coming.
You know the got a general one that's -- -- the states but it's when the state attorney general of Ohio.
Which record rate just happen to be appointed a high level cushy job.
Meanwhile and -- -- you think they have got -- it like I I being the head of the Consumer Financial Protection Bureau is a cushy job that a lot of people love that.
And who knows if he -- bring this lawsuit so we can get something like that lined up.
So knocks some -- of -- right at that.
