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FBN’s Liz MacDonald with news that the White House may expand its mortgage refinancing program for borrowers who are underwater on their homes.
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Bottom line what is the -- -- we heard this.
Again.
What is the White House did -- what they're playing do is help out those homeowners who were under water dig -- and essentially what we're seeing is there's about eleven million homes with mortgages that are under water and that's about a fifth of all.
Mortgages out there so with the White House is saying is that success and the refinancings.
That have been going on we've got 330000.
Homes refinancing.
Little bit as of October this year that's up from 6002011.
So.
You know there was a -- fight with a Federal Housing Administration.
To get.
Basically.
Loan modifications up with the White House want -- principal reductions.
But the FHA overseas saying no no no -- -- taxpayers even more so let's get Fannie and Freddie in on the act to help out with homeowners to.
Refinance underwater mortgages and what they would do is.
Basically have Fannie and Freddie back those loans they don't back on board -- right now.
And they would have to have a temporary change in their Fannie and Freddie charter to do that and exchange Fannie and Freddie were charged higher interest rates.
And those people would get modifications to lower rates but the key here is will the banks.
Join in the banks are saying well you know what we won immunity we don't want to have to buy back up tick back up their balance sheet those loans.
Today to what that means is the balance sheets of Fannie Freddie that it can -- getting even bigger.
Already five and have -- totals there.
On -- balance sheets if the housing market's recovering now and we have way.
Any measure that you look at it is improving and we just got the case Shiller home price and acts.
Home prices in October up more than expected up four point 3% from a year about why is the White House still moving to do this yeah if it -- if the market seems to be slowly but surely recover.
I think -- think in the housing market is still a boat anchor around the necks of consumers and that the economy can be improving at a faster rate.
Because the improvement have the number of people who are under water is moving that probably the thinking is at a glacial pace.
But the issue is I mean.
Fannie and Freddie are now turning into one big entitlement program for housing already the IMF is saying wait a second these guys.
Our big threats to the fiscal picture for the United States maybe they should be back on the balance sheet of the United States are still off the balance sheet.
Of the United States government and at the IMF is saying it look at this is a problem in the never budget balancing act that's going on in DC let's use Fannie and Freddie.
And still treating them as if their profit -- you know.
Publicly traded companies temporarily owned by the government that's not a good thing don't they yeah for taxpayers -- share -- Wind up the government the taxpayers on these two companies for an annual -- you say for now but would win in creation.
Are we -- it be able to extract ourselves from these things.
He can't take care -- Tax increases -- -- plan from the day did these tax cuts were written.
-- the day that they went into -- we knew they would eventually expire.
They've waited until the last minute can't get a deal done they will lawmakers one never.
-- -- and I can tell you can't read how could be dead and cold and eat now I want a -- -- take.
-- -- endured six -- not a serial I -- just say here's the think.
You know when we talk about because the clip with you just brought -- I mean that average hit -- US council's 2600 bucks but guess what this average help.
US households where that my loan modification program about 2600 bucks but were we helping out housing while they're dealing with.
The fiscal clip problem it's a big issue date and so -- on assault that.
Thank you -- mcdonalds -- all over that story for more on the European markets.
Well it did met mark even go to work more races atx capital senior trade are not open today mark I'm disgusted by our lawmakers lack of the deal.
