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FBN’s Liz MacDonald on California’s efforts to make foreclosure more difficult for banks and how it will impact the housing market around the coun...
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-- then the studios made.
Talk about.
Foreclosures.
On Hans say California's -- -- there's -- Is ready to make it tougher for banks foreclose on -- as part of a movement across every single state.
In this country.
Will do more harm again that you think yeah that's a question from -- -- this -- could do more harm than good because the could stop the foreclosure process stop the housing recovery stop the clearance of all that backlog and that inventory.
And so what we're seeing is California have been fighting for its own set of foreclosure rules for about the last two years and one last set of rules -- coming to a vote.
Today and with the issue is that they have what they want is -- stuff for closure if for -- is and loan modification but the issue is too.
-- loan modification could be extended for a very long time and basically the -- that the market's drag out that process and and extend -- that in the process.
Without paying anything without paying any mortgage -- and it -- the other issue too is that California notably is basically asking voters to approve.
The right to sue bankers during the for closure process if they break any of their news.
For -- rules.
What about the other fifty states -- is this on a state by state basis financing -- and how does it.
It in with that massive settlement that foreclosures -- gathered through the banks and this is what's important it's not a state by state case basis we have 25 states right now.
Moving ahead with their own set of proposed rules and basically we didn't expect this I mean at a think that banking industry expected -- the media saw this coming.
The after the 25 billion dollar for -- settlement in February.
Obviously that we thought that that was the end of it but -- the states is saying forget -- sent set aside the 259 -- proposed sentiment that does not stop bus.
For ensuring our own foreclosure rules basically harp three point oh.
Or camp three point oh which is the federal program for the states so you know the bankers are coming and the media's saying you know this is gonna make it really difficult for us.
And to be able to clear their inventory there's always willing nearly different sets of rules -- you know we -- -- we want to protect borrowers.
But for the bankers I'm sure it's gonna be against and they're gonna feel like they're -- and that in the hurricane -- more often hurricane try to solve all these different rules.
You have a do you get to it again it's the on the do you get the stay in -- home when you're not making payments on the home it's not even your home yes if you don't.
If you're under water on that and you if you're underwater are.
And you have no equity and it is higher house yet and you're basically living rent free and it what point eight.
In this country do we say enough is enough.
Yes that's -- -- -- -- to and would it also with these new rules in the states coming.
With -- sit back and say to your point.
You know we're gonna wait for these rules to kick in right and we're gonna see how the rules play out in their own state you know -- -- for example New York -- is talking about.
Criminalizing forgeries if there's a mistake made in -- foreclosure document that can be called forgery.
And so you know a big issue -- is will all the bankers out there get state by state rules.
And if they break the rules within them be subject to lawsuit eating lawsuits even if they they know or have access to -- you know -- apprised of the rules and it wasn't due to lend.
Well you know the FHA doesn't like it -- it FHA has criticized -- is that overseer for Fannie and Freddie.
Big criticizing the path similar standards right similar ideas.
As saying that frees up credit you know bankers could be -- and become -- -- And suffer from that the Mortgage Bankers Association saying the costs of all of these different rules come down again 25 seats -- for those rules.
We'll be passed along to future farmers.
That's not -- -- one of the states are supposedly the thank you so much or at least try to buy home and one of those states.
-- thank you so much throughout the -- Liz MacDonald.
A -- is -- -- you'll be with you all day long.
