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-- -- -- Thanks -- their time now for the diamond district every one.
Acorn not giving up its fight for homeowners and against bailed out banks organizing.
A national day of action against the fourth largest mortgage servicers refusing.
To -- not to president Obama's foreclosure prevention plan.
This -- banks seem to be up to their old tricks again with credit card and bank fees GAAP.
Jacking up the prices on all of us nice consumers.
Acorn finance director I'm -- joining me now for the diamond district from new -- -- didn't you -- -- YOK so loud.
Tell me they are these warm mortgage servicing companies and I I gather they -- about the only ones out there that aren't signed in on.
To this foreclosure prevention program that basically they get money to modify.
Mortgages that are facing foreclosure.
That's exactly right in March President Obama announced his program called making home affordable and -- 75 billion dollar initiative to modify it to four million loans.
To prevent them from being foreclosed now the only problem with -- great program that's completely voluntary.
Now the good news is about 80% of the industry has signed on wells has signed on chase city.
Bank of America GMAC dock when a whole bunch of big companies that there are four major mortgage servicers that as of today.
Had not yet signed on and we went to deliver a pretty strong message today.
-- companies including -- which is owned by Goldman Sachs which a billion dollars of our TARP money.
And we delivered a strong message saying it's time to sign up for the Obama program families need help.
And back you underneath their minimum is embarrassing yeah.
Austin why wouldn't they if they're getting paint won't -- us taxpayers were footing the bill.
-- more money going to these big banks.
But at least you know we're helping out people are who are at risk they're losing their homes were that this is not to reduce their mortgages it's just it.
-- for some of the costs of refinancing correct.
Well -- it's about modifying mortgages so that brings the payment from let's say half of your income just totally unaffordable down to 31% of your income from the government shares some of the costs of bringing that down.
Now so we are signed up to -- authorities.
We we actually -- we're paying to restructure the mortgage that can succeed over time which is a lot better investment than paying the banks to do nothing to what we did -- Originally now if you sign up to take the subsidies.
You also have to agree to do real foreclosure prevention which means doing a net present value test on every loan to determine whether modifications available before you go ahead and we'll close.
That's why I think a number of these institutions don't want to -- on but I do have really good news report.
This morning we visited one west which is one of the -- companies that we target today and their CEO.
-- came down and visited with our members and signed a pledge -- that -- that -- -- committing to join making home affordable now we're down to the home wrecker pretty.
Well well this yeah.
That makes sense to me this was the former indymac which couldn't basically went pink rock -- you know we had to bail that.
Thank -- out because they did all these fancy sub prime interest.
Only -- you think they would now all that hey this is what got the original bank into the gap problem in the first place there.
And we're very happy happy now that one west will be participating in this streamlined modification program they've got eight -- 900000 loan portfolio and the -- -- -- -- -- -- -- -- -- -- Are you all so educating.
Consumers about kind of for these -- if you can have an immediate.
We have we have a huge mortgage housing counseling operation that for years has been counseling first time homebuyers.
And how to find the right mortgage and that means not one of these 228 exploding arms.
Or one that's only under written so that you can afford it for two years and then you can't afford to the other twenty years we want people to succeed.
As homeowners over the full term of the -- whether it's 1530 even forty years in some cases now.
I would he's modified mortgages we're gonna continue to do that but for now it focuses on stopping foreclosures.
By giving these loans modified that we can stabilize the housing sector stabilize the economy and get us moving on the right traffic.
I didn't have to have you back because we I initially wanted to talk to you about -- banks are raising their credit card not the other bank -- the -- problem.
But -- -- at a time are right we'll have you back thank you so much as they exit.
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