Homebuyer Credit Hurting Housing

" Give back to the issue of housing and may be another take on the subject the new home sales down last month could renewing the home buyer tax credit help the housing market rebound next this is now. Idea Peter Meister real estate attorney who Meister Selig and fine joins us now you think it's just wealth transfer."

" I think it's a wealth transfer but it's it's really much worse Brian because. What we're dealing with is the housing market people pay back their mortgages with their jobs not like an office building that pays it back with its rights. Forgot what if you have joblessness which we packed we talked about earlier in the show you must -- listen I was so you're going to have problems and what happens here is that this program is actually. Hurting the the joblessness or. Hurting the recovery cannot -- life because. What what what happened here is that this credit is going to the very low end of the market. It's an 8000 dollar credit maybe you're just a little bit now there was a 35 billion dollar roll out by Obama not. A month ago to the state housing finance agencies and what they're doing is they're making bridge loan took this credit. Which is really check my credit to people who don't have more than a thousand dollars to put down on house."

" Well it -- as we reported -- May be reduced to the the median existing home sales price according to the National Association of Realtors. But the 175000. Dollars if you get 8000 or close to that that's all you need. To get the three and a half percent down payment requirement for FHA you can buy a home with a FHA -- taxpayer backed mortgage putting none of your own money down."

" That's exactly right. A little bit like how we got here it is exactly we you know by the LA the FHA had a 20%. Down payment requirement in the Great Depression. When it was first initiated what's happened is that finish this part of the American DNA of fostering homeownership. Has been radicalized. By people like Barney Frank. Who have forced fed have loans down the throats of people who were currently renters. Who really are not the position but isn't a homeownership a good thing I mean study showed brings down crying people take pride in their neighborhoods. Schools -- property tax revenue it's a good thing when -- mortgage loans get paid back it's a bad thing Brian when they don't. Because went what happens is what the government has gone into the sub prime mortgage business and that's what this country right might argue the government isn't sub prime mortgage business there's no question needed -- if there is one it's only to government because everybody else has been run out and everyone else has been run out of a 98%. Of I think it's almost a 100% of the mortgages today are either FHA insured. Or -- Fannie or Freddie mortgages bought -- securitize -- by -- ready active it and what's happened here since we're trashing the dollar by all this profligate spending and the dollar sliding because we're printing money. Foreign investors are completely out of the market. Right they're not going to be in the UBS from the mortgage backed securities market. And domestic investors with private contract being trashed with the rules that are now being proposed gone too big to fail. And who's going to invest. No one's going to invest in this so Wasilla with the government stopped subsidize I think the mortgage market it's going to drop way we have to look."

" You know the scariest thing I've heard recently yes. Lot of these mortgage backed by Fannie and Freddie. For two years so why -- five of Fannie and Freddie backed guaranteed mortgage. If I don't pay it as a taxpayer right analysts say I pay my mortgage so Wells Fargo and don't pay it was far over its patent pool. By -- try to strike and the efforts so Wells Fargo doesn't even care. Because Fannie and Freddie are going to pay my mortgage for me but when that point four month period ends what happens. Wells can put the entire mortgage backed the Fannie and Freddie were not on the hook for years of payments -- the hope for the whole social council."

" And they -- and then receive a trip. And here in receivership with -- government look this is Brian this is exactly how we got here these banks were doing what they were told. Fannie and Freddie were buying newspaper they when the paper for a week or two if they escrow the first payment there was no risk okay so. This sub prime crisis was created. By this government intervention we we were forcing up. The percentage of home ownership and we doing the same thing now we need to cut the taxes. To promote the jobs to -- small businesses which is 60% of our jobs. To make investments in plant and equipment and grow jobs so people can pay -- more."

" Aren't we got a guy would encourage you if you haven't already Stephen and everybody out there to read Google hr 1852. September 2007 Maxine Waters and Barney Frank trying to push through a 0% down payment requirement for FHA backed loans. We're from a whopping three and a half percent didn't know but check and I hr 1852 house resolution. -- you're very welcome thank you very much rejoicing."