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Sanjay Gaza is CEO and president of Citi mortgage side gene I want pretty ready and on the heels of what we just heard -- report.
I'm what's going on in California what is your reaction as some of those rules like for example preventing foreclosures for moving forward what borrowers are trying to modified.
A mortgage how does that change and does it make it harder for you to move forward on the situation is good for the -- what's your reaction.
52 sets of reactions that the first says that I think it is good practice to make sure that if there is a modification that is in place yeah.
-- a foreclosures not being pursued and obviously you wanna make sure that people stay in their home -- and make sure that.
If the modification books and they can stand the -- forever that's fantastic.
On the other hand if with fifty states and fifty different rules at the moment bankers association has just said.
It makes it very complicated for banks to actually change their processes that require a national processes on -- was.
And to banks eleven to make mistakes.
And you don't want that to happen either.
Yet some of these things were common sense like we said not -- -- -- -- -- And if there's -- modification going on one point a single point of contact for borrowers looking for modification is that something that's not currently in.
Placed it has been it's been and this only in the last I would say twelve to fifteen months across the industry -- -- was the leader American has put together a lot of programs mayor.
There is a single point of context -- a borrower cause and for a modification or choices in terms of what they may do you know -- in their homes there's one individual who navigates them.
To the complexity of -- -- back again sometimes schools get quite staggering.
-- -- -- In the one thing in here that I think you would probably you know not be excited about is the idea they can sue if these rules are violated I think probably the biggest hurdle as you said is that.
If each individual state goes and sets up its own rules it's gonna make it even harder to basically giving his -- -- -- sort of clear the market doubts that America can.
Move on from this problem yes it does it it becomes process by the becomes harder and -- the market's gonna come back and stuck to lend again.
And then -- go to spend you start thinking about what each state might do if we lend.
It to eventually -- to differentiated pricing.
Which would probably not be good for 40 for the overall critic of the housing market.
When people hear about.
You know eight when economists say that they want -- -- -- process to move forward more quickly because it clears up the market it sounds very heartless what does the flip side of that if we don't have.
Price clearing in the market what are the what's the penalty that homeowners pay down the road.
But if there is no price clearing and there's no inventory comparing the -- have a situation that you have a very large shadow inventory of homes.
And then it keeps trickling down gradually into the market because it's taking so long break for home to get foreclosed on that has an overall.
Negative effect on home prices recovering in a very short period of time.
Yeah I don't wanna let you go without asking about -- new program for veterans because of course that's why we brought you in here in the first place what -- -- I understand part of it has to do was short sales for veterans are moving around.
Yes and thank you you know would July 4 coming and coming up and did all the work that dollar -- veterans who for a military veterans who for us nonmilitary personnel -- for us.
We think consider it very important at Citi to make sure that we do everything possible to keep.
Veterans and military personnel in their homes -- -- offer them all kinds of advice including on the ground in San Diego and in four other parts of the country we will actually have our people.
Advising them what choices they might have including short sales.
And the ability to modify their loans and in a very special day.
Two PCS program -- elements -- -- -- programs real quick if housing market getting better.
It's getting better and pox.
And and you know still not picking up in places like Atlanta but in -- -- Detroit.
Phoenix and less vigorous and -- -- -- it dropped from peak to -- there was a very large drop.
-- beginning to see signs of recovery there.
OK I wish we had more time thanks so much for coming -- we appreciate your time.
Coming -- Charles pain is coming in CDO at -- -- have to make some -- -- hot cakes Gloria coming up.
But first take a look at metals as we head out to break you can see they're trading down across the board.
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