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Let's bring in housing expert Wharton professor of real estate and finance Susan walker from Philadelphia season.
Greetings -- you think you for joining us your thoughts on the settlement and whether it's a good or bad thing for the overall housing recovery.
It's a good thing for the overall housing recovery.
This -- bring renewed confidence back to the banking sector and of course the banking sector is key to the housing recovery.
The recovery is in a full blown.
-- recovery mode the -- market -- in the full blown recovery mode right now.
But the key to a strong recovery is bank lending and right now bank lending is.
Pretty constrained this right help -- it up in fact it's easing up already he takes a long time even for the best.
-- -- people with the best credit hits trees did it to get a mortgage so do you think that this would enable the timeframe to get a mortgage.
June shorten up if you will or you know I think so nervous about you know running the risk of a another situation like this.
-- still is a very large negative aura around the housing sector in the mortgage sector no doubt about it but -- his legacy issues get put aside.
There will be renewed confidence you know.
Home owners potential homeowners renters today are bring back are coming back but with renewed confidence.
But the key here even though housing is an all time affordable given the low mortgage rates.
And the low prices is it's difficult to get -- mortgage banks have swung over and the pendulum has swung altogether the other side in terms of making it very difficult to get a mortgage down payments are very high.
But they're easing up and I think this well helping set up so where's -- happy medium what is the status of foreclosures because -- you know there's a huge argument that.
The shadow inventory is still there and that these foreclosures need to happen to fully rehabilitate the -- -- market.
Well the shadow inventory is thankfully.
Easing back into the shadows and is going away as housing prices go up there is that underwater.
Big mass of homes are under water which potentially could.
Come through the foreclosure process and -- housing markets but not gonna happen as housing prices increase we're gonna see that -- as.
First slowly and then -- quickly.
That problem ease up.
In addition there are properties right now which are already in foreclosure process those are more likely to go to short sells.
As housing prices rise as well so we're now in a kind of virtuous cycle.
Where housing prices increasing brings renewed confidence back things were buyers back.
And I expect to see that continues fishing out of the fiscal cliff is the side.
We'll talk about me -- you're covering the people who will who are entitled to victims of the robo signers if you will.
It's kind of a wide range of the settlement anywhere from a couple hundred dollars all the way up to what is that a 125000.
What kind of difference -- -- to their case can actually put that back into getting.
Better credit getting back into a mortgage.
But -- only -- it will help.
But will help -- help hundreds of thousands estimated about 400000.
Had been harmed could be potentially helped by this settlement.
Most will not get nearly the 125000.
-- which is the cap.
-- you see the preceding.
Arrangement was one where you had to apply and in fact very few.
Borrowers were going through this process so.
This will help facilitate getting the funds to the bars as well as putting this legacy is ten and my kind of guy -- it doesn't repair their credit quality at all.
-- well they can help of course it depends on where that money money goes to and particularly.
If in fact a home that.
What is about to be for closed can be helped in the situation.
But probably -- we're beyond that these are mortgages from 20092010.
-- -- moved ahead.
Thank you so much for -- now -- Susan doctor Wharton professor of real estate and finance.