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While tax -- may be getting some of their money back from Fannie and Freddie groups across the country are demanding that FH at -- -- make changes to prevent foreclosures joining me now from different Cisco.
Is Kevin Stein assistant director of the California reinvestment coalition which is an activist and advocacy group for equal opportunity to banking and financial services.
And actually one of the 97 organizations in California that are joining together to pressure the F -- -- Paper changed.
Update you so much for joining us.
And basically you're saying sort of what's good for the goose is good for the -- that that a lot of the large banks have been forced to write down principal in you would like to see the FH FK do the same is that cracked.
Yeah that's that's basically correct to -- what we're saying is that California families and neighborhoods and we think even tax payers.
Have been suffering due to short sighted policies.
Under that leadership of Ed DeMarco and FHFA.
And those are leading to unnecessary foreclosures and evictions.
So -- are calling for a pause on all Fannie and Freddie foreclosures.
Until certain key changes are made at FHFA.
And if mr.
DeMarco is not willing to do that were asking that he resigned his position.
So that we can put in place someone who's willing to do the things that need to be done.
To help homeowners.
To stabilize communities and to turn around our economy.
We think is it unnecessary for closure though because we we took a look at the data and saw that the average person when they go to foreclosure.
It's been 348.
Days since they've made a payment eleven months -- generally takes two years of non payment on average to make a foreclosure.
So -- unwarranted foreclosure -- in these cases it seems like these are people that have been in their home not paying for a very long time.
I think the process unfortunately California is a bit shorter -- one of the nonjudicial foreclosure states.
Where we have an expedited process that subject even less.
Judicial or other oversight then in many of the other states in the country which is itself a problem.
The dynamic you described is not surprising at all because when borrowers are in trouble and they reach out to their loan servicer.
The servicers are invariably telling them.
They need to stop making their mortgage payments if they want to secure a loan modification.
To us and unnecessary foreclosure.
Is one in which -- family could qualify for a loan modification and instead they wind up losing their house that's a terrible result for the family.
And it's also -- terrible result for their neighborhood for their neighbors who is property value for the local government that can't collect tax revenue and for a larger economy.
Yeah we think these problems are too offing too often occurring.
With all the lenders and servicers but including in May be especially.
With Fannie and Freddie -- loans and that's why we're making this call and specifically this kind of relates you know one of the ways in which it relates to our demands is around this.
Dual track process.
Which is this crazy reality.
Where homeowners who were trying in good faith to.
Work with their loan servicer acting -- -- -- diligently to provide documents to secure a loan modification.
But can't find that -- closure process is not halted and some people actually falling through the cracks.
Who qualify -- -- -- -- and that's not right but that but they're not making payments for very long periods of times that.
So that's right struggle -- the foreclosure but let me let me -- credit market for second just because.
You -- calling for him to resign he said that he's in it he's in favor of forbearance this is he's quoted speaking on our own network.
I'm as opposed -- -- write downs he thinks that it achieves that goal and preserves taxpayer dollars in the process because I think one of the problems Kevin when you talk about.
The FH FAS an -- to T.
And about how it should be absorbing some of the -- these are our taxpayer dollars is not just this government entity.
It's all of us that are absorbing that loss -- respond to that.
Right so a good analogy we think is.
I'm so in the taxpayer in essence is the investor on all these GSE loans.
Just as in a minority of the cases the banks are the investors on loans that they actually -- -- most of the ones are sold to investors but some of the loans.
Are kept on the books of banks in their portfolio.
And those are the loans that are most likely to see principal reduction.
The very thing that Ed DeMarco says never makes sense of the banks which are very focused on a financial interest say in many cases it does make sense of what is mr.
That banks don't under.
Banks don't understand that economists don't understand that our attorney general doesn't understand haven't -- seems like -- -- list and including investor sure but I'm -- I shall and a group.
Did you just to make there's a growing list of people of a various stripes who see the value OK and the necessity for principal reduction we wish mr.
DeMarco did as well thank you are right thank you for coming -- we'll have to have you back we're just at a time.
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