A boost to the housing market?
Breaking down president's plan
- Duration 4:57
- Date Feb 5, 2012
Breaking down president's plan
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I am sending congress a plan.
That will give every responsible.
Homeowner in America.
The chance to save about 3000 dollars a year on their mortgage by refinancing at historically low rates.
No more -- take.
No more right around from the banks.
A small fee on the largest financial institutions will make sure it doesn't add to our deficit.
Sounds great the president's plan to give the US housing market a major boost and help homeowners it seems very simple.
-- help the underwater homeowners refinance -- mortgages.
Pay for some a bit waited new fees to the banks and then rent out vacant homes bringing more money into the economy.
In today's take charge consumer protection segment -- -- take a look and whether or not it will all work and -- -- could it help you.
Managing partner with chaplain captain best management -- B tasking joining me now hi -- I Jamie you know you weren't -- worst housing markets down in Texas.
And the question is whether or not will help these homeowners who are looking at mortgage is bigger than their homes worth some even have had to move out.
Is this new plan from the president going to help folks like that.
Any plan that can help lower the rate that people are pain right now -- certainly help so.
-- conceptually this is wonderful because the average mortgage -- -- Jamie is about six point 75 almost 70%.
So that can be refinance lower that would be great.
Based on the president's plan this could save about 3000 dollars a year for most people who were in in you know -- of this so that -- -- a great plan if a war.
But the magic.
Saying that I heard in that sound byte was no more.
Red tape because in 2009 the president had the affordability.
And stability act it was supposed to help homeowners was 75 billion dollars.
In foreclosure easing.
And mortgage refinancing.
How many people took advantage of that plan because there was word there was a lot of red tape.
A lot of red tape and about the book believe it or not it actually had some success was -- 900000.
-- took advantage of that in one way shape or form or another in fact what the president talked about is really just enhancing the making homes affordable act.
That has been in place since 2009.
Okay when they think no more red tape let me -- that here's the one key.
The one thing that's going to be a problems getting this through congress because at the end of that clip that you just had he said.
I'll with a small feet to the bank well that small fee I don't know five to ten billion dollars is a small fee and get that through congress that -- that difficult task.
-- that's interesting that's a hurdle that has to happen and maybe we should go back to us -- that we bailed out first what to see but only three billion.
Of the 29 billion set aside for the program in 2009 has been spent so now we have billions more.
Potentially made available if you're -- homeowner out there right now when you need help which is the purpose of this take charge segment what do you do -- Well first thing you have.
Have to have at least six months.
Where your mortgage was kept up to speed where you did not -- -- were heavily payment and you must have a very high credit score or at least so a good credit score 580.
That's the first step and then there's lots of different forms and things yet to fill out to up in all apply -- this.
-- and you know at that point you know as as anything it was not a lot of red tape but there's a lot of tape and you have to go through a lot to get this done through what they're really doing making a strong effort to make.
Work what about the rental of the homes that's kind of a new portion of this what's the benefit to the economy into homeowners if they encourage people to wouldn't that's like in the old the reits or real estate investment trust.
To buy these homes -- have been foreclosed but have to rent -- -- the president wants that.
Yes and and this is the one part that it that I have a.
A little bit of a difficult time went.
Because what he's with the president saying is all these homes have been foreclosed on.
We're gonna let people buy those homes but then they have to there's a tie they have to rent those homes out.
And what I don't like is I don't like one the idea is that they wanna sell those homes so the value of these sell homes and neighborhoods would go up.
But that's not how it works supply and demand is what dictates how much a home is worth.
And not based on someone renting it but in addition.
I don't want people to become landlords and that's what they would be easily be done doing -- costs a lot of money -- to keep the house going all the fix the other fixing it up to in the long.
All of that so we're gonna have a lot of landlords I just don't like that part of it.
I don't know I I think -- -- people too if they can help people get into better homes or save some of these homes.
I'll present the other side and say maybe it's worth looking at we will follow this for folks.
Call your bank -- they can help you as well maybe they'll give you a little break thanks said great to see you -- beach -- right.
Joining us for our take charges consumer protection segment and we're covering --