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Chris Stirewalt, Fred Barnes and Charles Gasparino discuss President Obama's efforts to make refinancing more attainable for homeowners.
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Gotta think about that here you work you save your entire life to my home.
-- where you raise your family that's where.
Your kids memories are formed.
That's your stake your claim on the American dream.
In the -- who signed the document couldn't take.
Enough time to even make sure that the foreclosure.
Was legitimate.
That's sad story according to our next guest is -- From President Obama this is power play welcome back to studio three.
And thanks be praised me that Fred Barnes is with us -- helping us navigate these choppy waters.
And you know Internet would for an -- is talking about.
Is now Charlie Gasparino is one of the people who you read.
Just because he wrote it and that is the God's honest truth brother Gasparino welcome back and I think Craig.
The big Internet show here you wrote a piece in the New York Post that is -- -- multiplied.
Like the fishes in the loads across slider I hate mail coming my lighten -- -- It's good.
If you don't get any hate mail how do you know anybody read it -- so.
Then what you basically said in this piece was.
For the president talking about this president was talking there we heard talking about the 26 billion dollar settlement that he reached the five largest mortgage lenders to get attorneys general to stop suing these companies over auto -- signatures.
On foreclosure notices.
That you say not only doesn't amount to much but is rewarding bad behavior.
Yeah I mean -- -- let's go back to the -- the statement right there where he was talking about.
You know alleging that the -- banks committed fraud on these foreclosures this is like.
You know did what they did was the banks did something wrong no doubt they robo signed foreclosures they had someone.
Who wasn't quote unquote an officer of the bank stamp the foreclosure document but let's make no mistake the president's trying to equate got to victim Knology and it's not.
The people that are being foreclosed upon and I would say this is true about 99%.
Of the time even his own investigators -- -- -- Where people that were legitimately being foreclosed upon they were late or delinquent for a year two years more.
Banks had an overload of foreclosures instead of getting a notary public -- -- a -- notre notary someone like like a legal officer of the bank.
To to basically sign that doctrine.
They just -- it so the people let's make let's make it real clear to people that were being thrown out of their homes.
Put a vast vast majority and I always say this vast majority because I'm I didn't invest in every case it may be in every day or two good you want to do the best vast majority.
Needed reports from Clinton could afford there there of their mortgage.
And I -- I did it sort of this gets the bigger issue okay this wasn't a crime of the century that he's equating it to sell a little bit of propaganda there.
Number two is think about what we did -- -- -- fight what cause the financial crisis in 2008 which is an over hang up.
A minute or two things excessive risk taking by banks excessive risk taking by individuals OK yes we did bailout the banks no doubt about it.
There is a question whether we should have done that a lot of -- if we didn't help the banks we have a congress -- a depression that would affected every single America in a major way could you would have banks lending.
-- much less the meager amounts of -- now but the other part where these individuals people.
Who -- bit want to buy a house for a hundred grand want -- that's 600000 dollar house and basically use the system the system was handing out money.
To go and live that lifestyle there's no doubt that occurred.
That's where the vast vast majority of these people could go -- so what we're doing here once again.
Is rewarding.
Bad behavior I mean there's no doubt about it -- -- my Aleman was a construction worker we moved out of an apartment.
We put that he put down 20000 dollars on -- 161000 dollar home.
Okay home values went up wire home values up so much could you -- these types a loan programs the -- people this money been bid up the houses and houses so.
And people just kept taking more -- so I think the problem here is that we're doubling down on rewarding bad behavior.
-- Charlie I want to bring Fred Barnes and with this question.
The president has worked very hard to cast this as is no -- -- these are not undeserving people these are victims victims victims -- points out that there's a strong argument be made here that these are not victims does this risk for the president in -- some resentment.
Among them on time -- have the world that these folks are receiving the benefit.
Win.
They did maybe something they shouldn't.
And that's the benefit -- being -- for this well -- -- his most recent cases are shareholders and the banks but it's been.
More broadly it's people who have been paying their mortgages and didn't buy more house than they could afford -- for the probably did the opposite is Charlie was referring.
You know I would've thought that the disease.
With the three or four programs now that the Obama administration has had its auto bailout the people who were being foreclosed.
Would have gotten somewhere.
Getting an enemy that would have been -- national resentment.
Among -- more responsible homeowners but.
You know it really doesn't seem to have exploded isn't as the big issue it should except for the except for the fact that there's still so many foreclosures going on out there and and you have this huge problem this.
Overhang -- -- -- on the whole housing market.
So I want to ask Charlie about that Charlie and we're running out of time but do you think.
That what's gone on inside this program -- to the bank's perspective is -- -- that this at least to get them back in the business -- for closing home right so that they can clear the market ends and prices can start going right.
And not only that -- the -- just wanted this over mean is this is investigation was code not per year.
And W I was just -- support has not just shareholders -- pay this by customers are facing a lot higher fees based on all these settlements all this.
Garbage being heaped on the banks right now and I don't think it's gonna have a big a big problem would be a big impact it's kind of -- -- about the margins.
And you know what there's a huge amount of homes.
That are still -- that -- would be to be foreclosed upon and vacant and about a -- if you don't up it.
If people don't get thrown out of -- homes they can't afford it -- what the price doesn't go down enough so people with money by it and the more and the market starts coming back.
And so this kind of delays the inevitable I mean there's an inevitability here people can't afford the homes there in.
The president is creating a program to keep -- -- just a little more before the reality sets in which they got to leave at some point.
In an -- -- give you Charlie -- man who comes from a world where 26 million dollars can operate at the margin is that we stand ready at all people make that one day and its revenue -- -- off rather desperate not have a great -- thanks for joining us.
And thank you brother -- for being with us it is always a pleasure your your -- steady guidance as always but -- much appreciated.
Here in the former home of The Beltway Boys and now Internet we want to leave you as we'd like to do every day with the word from our friend -- It's I think all of them are being incredibly irresponsible.
But -- election -- -- -- would you expect and I think the Republicans.
It's understandable then they're not to engage in unilateral disarmament.
And end the issue over to Obama simply because he wants to -- giveaway.
Everything in the store instead of offset some of it.
