Diamond District: ACORN's Bank Battle

" Thanks -- third time now for the diamond district every one. Acorn not giving up its fight for homeowners and against bailed out banks organizing. -- national day of action against the fourth largest mortgage service there is refusing. To sign not to president Obama's foreclosure prevention plan. This as banks seem to be up to their old tricks again with credit card and bank fees GAAP. Jacking up prices on all of us nice consumers. Acorn finance director I'm -- joining me now for the diamond district from New Orleans. Welcome written -- back likewise OK so loud. Tell me they are these -- mortgage servicing companies and I I gather they -- about the only ones out there that aren't sign 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 -- making home affordable and 75 billion dollar initiative to modify it to four million loans. To prevent them from being foreclosed nebulous problem with that space program that's completely voluntary. Now the good news it's about 80% of the industry has signed on wells has signed on chase city. Think of America GMAC stock when a whole bunch of big companies that there are four major mortgage services that as of today. Had not yet signed on and we went to deliver a pretty strong message today. I -- 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 that you underneath their minimum is embarrassing yeah."

" Austin why wouldn't they if they're getting paid what us taxpayers were footing the bill. -- get 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. Papers some of the costs of refinancing correct."

" Well it's about modifying mortgages that brings the payment from let's say half of your income just totally unaffordable down to 31% of your income and the government share some of the cost of bringing that down. Now so we are sign up to -- authorities. We we actually mortgaged we're paying to restructure the mortgage that I can succeed over time which is a lot better investment than paying the banks to do nothing to that we -- TARP. Originally now if you sign up to take the subsidies. You also have to agree to do -- foreclosure prevention which means doing a net present value test on every loan to determine whether or modifications available before you go ahead and we'll close. That's why I think a number of these institutions don't want to sign on but I do have really good news report. This morning we visited one west which is one of the port company that we -- today and -- CEO. Period came down and visited with our members and signed a pledge -- that at -- today -- is committing to join making home affordable now we're down to the --"

" Well well this. That makes sense to me this was the former indymac which couldn't basically went pink rock today you know we had to bail that. -- out because they did all these fancy sub prime interest. Only -- you think they would know all that hey this is what got the original baked into the gap problem in the first place."

" And we're very happy happy now that one west will be participating in this streamlined modification program they've got -- and a 100000 loan portfolio and -- he felt. Just a lot of them with."

" Are you also know educating. Consumers about kind of britney's mom think you can have an immediate."

" We event 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 underwritten so that you can afford it for two years and -- can't afford for the other 28 years we want people to succeed. As homeowners over the full term of the mortgage whether it's 1530 even forty years in some cases now. I would be modified mortgages we're going to continue to do that but for now focuses on stopping foreclosures. By giving these loans modified that we can stabilize the housing sector stabilized the economy and get us moving on the right track."

" don'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 and the problem. But -- at a time all right we'll have you back thank you so much as they exit."