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President just wrapping up a roundtable on house refinancing.
Housing urban development secretary Shaun Donovan was in attendance and joins us now from with more.
From the meeting have welcomed the program -- and Brian thank you very much for coming on.
I called your office yesterday and I found that under any hope for homeowners program exactly one the mortgage.
One has been endorsed -- reworking by the FHA one how come.
I'm not sure where who you spoke to but that's actually not accurate OK I think -- donated it -- it -- -- the person's name was on the -- 865 applications.
About 51 close but only one with a net Ray-J back.
That they've never -- an -- under the hope for homeowners program today.
They're not but just to be cleared off the president's the president's plan is focused on a broad range.
Of actions one of the key things is bringing down interest rates -- -- -- -- -- -- my point you just told me my numbers are wrong I don't wanna say the name of the person I spoke to your office who gave me those numbers I'm happy to forge an email from your office are those numbers correct.
I don't believe those numbers are correct.
I will you know OK I want to call back of them it was horrible.
Didn't miss secretary Dana McDowell have I in terms of could give the president's program really break down into parts.
They've not making homes affordable.
The debt refinancing par and then the re working in terms of the refinancing the goal is five million refinances.
How many have been done so far and if you don't get to those numbers we Alter the terms of where you won't refinance people who were more than just say.
To think that would say first the ball.
-- wanted to -- pieces of the plan was to bring down interest rates overall not just for people under water but for every American homeowner.
We've seen interest rates dropped to record lows we've seen refinancing go up dramatically 88% increase since the plan was announced.
That's helped millions of families already.
The plan that you're talking about specifically to help.
Those who were under water.
We're beginning to see that take hold we know that Fannie Mae Freddie Mac have already started to to do refinancing under that.
Plan and I think over the next month or so we'll see those numbers increase dramatically up towards the fortified million number that we that you talked about.
In terms of the room.
Risk -- that the uncles and the government is taking on.
By and basically helping get people in homes and refinance.
I don't to somebody earlier and economists who said that FHA insured.
Loans made in 2008 are going delinquent faster.
Then overall 2007.
-- -- sub prime -- So I wonder is -- today a cousin that.
I'm going to have to go back to go to the government for essentially a bail out which would be the first in its 75 year history.
Well it delinquencies for FHA are running about 7% that's right on average of where the whole mortgage market is overall it's far lower than the 22 were 23%.
For sub prime mortgages.
And in fact while I am concerned about the increase in delinquencies because of what's happening in the market overall.
We've seen an increase in credit scores for FHA borrowers this year a significant increase and I think.
That shows that out while there are some signs that we should be concerned about we're also seeing some positive signs as well on the -- -- will.
Yeah I don't know what to say that they'll like I can go back to this secretary I'm sorry to belittle the point I got -- -- 40 -- -- I get an email from your office.
That one FHA backed mortgage was endorsed for change -- hope for homeowners.
Look I don't want to argue with you about.
Now all these details we can follow up on that out later but.
The fact is hope for homeowners has not been as successful as the original plan was intended when it was passed by congress last summer.
We've proposed the president -- proposed changes to it to make it more effective.
Those changes -- before congress under HR 703 correct.
There's -- novelist -- -- -- -- three point 675000571.
Mortgages have been -- Under the hope now program.
I know -- -- -- them yesterday to why is the private sector dramatically outpacing the public sector I guess that's my only point.
-- again right now the refinancings have gone up dramatically.
Fannie Mae's and I did 77 billion dollars in refinancing.
Last month the highest that they've done since 2003.
So I think it's very clear that we've taken aggressive action.
-- the administration.
Had to try to deal with the housing problem and that it's having a real effect.
-- you look at the numbers if you look what's happened since the plan was announced refinancings up.
Home purchases up beginning signs.
Sales increases in many markets it's having an effect already.
All right does -- other -- the PR guy you're obviously got a great name Brian Sullivan company.
Yeah I don't know -- -- -- take you very much for joining us appreciate you.
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