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-- housing so -- -- is with us Florida and Michigan -- two key swing states got it.
They have to the nation's highest percentage of on the war on mortgages -- 329%.
That is the percentage of homeowners who who owe more than their home is work.
Our next guest wants to know why the candidates on focusing more on housing joining us now is -- via realistic develop in the northeastern region.
I some fancy title but he's he's got it from me his name is Don -- so welcome program thank you.
Good news to seeing you on a different that would want to it is yes -- are -- doing over here Arnold had a world.
I'm coming over here throughout life that I volley in the and the diversity in the fair and balanced opinions that we get exactly right sit under well then that's -- there was a Smart.
Man welcome -- it is now seriously.
We don't hear much from the president all from a wrong.
About housing in fact they're two gaps in what the president have to say about him calling Obama camp that the -- it and housing.
Why no mention of housing don't -- your area.
Well I'm a little I'm disappointed to not hear more about housing because in order for us to get out of this recession that we have been -- and this kind of -- -- that we're -- you know we've got.
An economy -- improving but it's improving very slowly.
In order to for -- accelerate we need a recovery in the housing market.
And frankly even if unemployment -- decline significantly it still would not propel housing back to where it needs to be.
-- in terms of its contribution to gross domestic product so -- It's not been successfully housing policies he spent a couple of hundred billion dollars billion alive film I think it should look I think the government.
And I think both sides of the aisle have approach -- housing.
-- market in the housing dilemma incorrectly there is a simplistic solution here.
The hard -- reality -- if you go -- a state like Florida.
You're getting to over a third of all mortgages are under -- you go around the country.
And essentially more than a third of these -- -- Are under war at the -- finance no uncertain and -- and -- yet we have record low on interest rates so someone like.
Me or my company can borrow at miners -- so.
The average homeowners getting no benefit of these these low interest rates and so the solution is is we've got to get.
Those interest rates to the homeowner.
The big the housing market depended upon people moving up did you go to force the banks look to full time that we know not necessarily see that Hannity -- -- -- -- let's -- -- here's here's -- -- you have -- the vast majority.
Of these mortgage holders who are under water -- current on their mortgage payments they're gainfully employed.
And they are they have decent credits -- only issue is it is their properties can -- so we do we have the federal government.
Institute a guarantee program for the deficiencies -- someone has a mortgage of 200000 dollars.
But their property would only conform to a new mortgage of -- 150000.
Dollars to visit deficiency.
The federal government should institute.
A guarantee program for that 50000 dollar gap.
Provided that the cost of the borrowers got good credit current on their Morgan what does that guarantee mean what is it -- what it does is it means that any event of the default and foreclosure.
And the ball or.
Does not pay the lender then the federal government steps in and pays at 50000 dollar difference to put the lender.
Back to where they would be if -- -- -- conforming appraisal because what we have here.
If I suppose you have millions literally millions of people take advantage of that backstop that would and the government's on the hook -- hundreds of billions of.
They're on the hook for hundreds of billions and trillions of dollar now because that's a good look at what how much money been thrown at housing think about it this way.
If the government were to do this then what would happen is.
-- -- mortgage payments that take somebody with a 200000 dollar mortgage.
They're paying 6% that's the average interest rate.
For anyone who got a mortgage.
You know more than half the upside down mortgages are open at six -- in -- more so let's say.
But 200000 dollar -- you're paying 121000 dollars a year.
An interest cut today's rates they should be paying 6000 dollars a year in interest so their monthly payment would stay the same.
They would still pay that interest rate -- that a payment based on the 6%.
But that additional 3% interest would go to pay down the principal of the more.
Which we Euro over I got to think about it got it but your unabomber support big time.
Why hasn't done well I'm gonna lay out a plan.
And actually less than it -- -- -- is -- that for you well know you know what is never too late I think we've tried a different approach and I think that the fact is is that.
That were against a bailout.
The president was looking to try to figure out some way to help goals the president's focused and the administration blonde would you take HUD if it's offered to you.
-- We could use you in the federal governor is it -- -- between now.
But always breaking news I don't know don't know if I go all I think this man success -- him highly for that -- saying well look I think that -- magic and when I'm glad I came here but I've gotta run I've got a real estate business to -- just like man what a post well.
Well I think -- -- -- got some great people.
They'll -- we're almost out of time but I want to thank you for coming on to -- -- I would much appreciated and very interesting plan I don't know why President Obama didn't gravity to three years ago he needs as branches there yet next secretary of housing and of -- develop absolutely odd man.
Don -- Zacharias.
Can we put you in the -- title bill very few yeah.
So it's a pleasure thanks for making it.