| 00:00:04 |
HOST
WELCOME BACK. YOU JUST SAW THE DIRECTOR OF THE CONSUMER FINANCIAL PROTECTION BUREAU TALK ABOUT MORTGAGE GOALS. FOR MORE ON THIS SUBJECT WE TURN TO GRETCHEN...
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| 00:00:29 |
GUEST
RULES ARE DESIGNED TO PREVENT THE KINDS OF POISONOUS, PREDATORY MORTGAGES TO BE WRITTEN. THESE ONCE LURED A LOT OF UNSUSPECTING BORROWERS INTO THE LOANS....
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| 00:01:05 |
HOST
THESE RULES. WHAT ARE THEY, SPECIFICALLY? CALLER CODE SOME OF THEM ARE DESIGNED SO THE BANKS COMPEL LOANS THAT ARE UNDERSTANDABLE, THAT HAVE CHARACTERISTICS...
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| 00:01:42 |
HOST
YOU TALK ABOUT THESE RULES BEING PUT IN PLACE TO STOP THESE POISONOUS, PREDATORY MORTGAGES. WHAT WERE SOME OF THE PRACTICES THAT ALLOWED BANKS TO GIVE...
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| 00:01:59 |
GUEST
OF ALL, SOME OF THEM WERE WRITTEN WITHOUT ANY CONSIDERATION FOR THE BAR WAS IN COME, AS WE HAVE KNOWN AND LEARNED OVER THE PAST FIVE YEARS. MANY WERE...
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| 00:03:14 |
HOST
WHO MIGHT HAVE QUESTIONS ABOUT THESE NEW RULES, PHONE LINES ARE OPEN. WE ARE SPEAKING WITH GRETCHEN MORGENSON, FINANCIAL EDITOR OF "THE NEW YORK TIMES."...
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| 00:03:57 |
GUEST
THEY ARE SUPPOSED TO GO INTO EFFECT. CORRECT ME IF I AM WRONG. I THINK WE WANT THEM TO GO INTO EFFECT PRETTY SOON. THEY WERE BEING HAMMERED OUT FOR MONTHS...
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| 00:04:30 |
HOST
PROGRESS, THIS EDITORIAL FROM LAST WEEK THAT CAN NOW, THE RULES ENACTED BY THE BUREAU WILL BE SUBJECT TO OTHER AGENCIES, CREATING A NEW CATEGORY OF...
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| 00:04:57 |
GUEST
A MORTGAGE THAT WOULD BE CHARACTERIZED AS SAFE FOR SOUND FROM A REGULATORY STANDPOINT. THERE IS A QUALIFIED RESIDENTIAL MORTGAGE, FOR EXAMPLE, AND DISCUSSIONS...
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| 00:06:34 |
CALLER
ABOUT WHERE THESE NEW RULES CAME FROM, WITH THESE NEW TYPES OF LOANS BEING CREATED. [VIDEO CLIP] >> THEY CANNOT CONTAIN
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| 00:06:40 |
Unidentified Speaker
CERTAIN FEATURES THAT HARM CONSUMERS WITH EXCESSIVE POINTS AND FEES, THE UP-FRONT COSTS IMPOSED BY THE BAR WERE. THEY CANNOT BE RISKY LOANS WHERE THE...
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| 00:07:31 |
HOST
IN A FEW CALLERS ON THIS SUBJECT FOR YOU. OKLAHOMA CITY, OKLAHOMA, DEMOCRATIC LINE. GOOD MORNING, VERNON. CALLER: I AM TICKLED TO
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| 00:07:42 |
CALLER
DEATH THAT THE GOVERNMENT IS SETTING THE RULES FOR THE FINANCIAL INDUSTRY WHEN IT COMES TO THE HOME MARKET. PEOPLE WORKED ALL THEIR LIVES TO PROVIDE...
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| 00:08:28 |
GUEST
AN EXCELLENT QUESTION. ANOTHER ONE TO ADD TO THAT IS -- WILL THE REGULATORS HAVE THE APPETITE TO REGULATE THIS CLOSELY? MAKING SURE THAT BANKS ARE ...
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| 00:09:36 |
HOST
BRINGS OUT THAT THESE RULES ARE FINALLY HERE. CAN YOU TALK ABOUT THE HISTORY OF THE RULES THAT WERE IN PLACE ON THESE MORTGAGE LOANS A FEW YEARS AGO?...
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| 00:10:01 |
GUEST
THERE WERE MANY APPLICATIONS YOU HAD TO FILL OUT, REQUIREMENTS THAT THE BANK HAD TO GIVE YOU TRUTH IN LENDING DISCLOSURES. IT REALLY IS STILL A VERY COMPLEX...
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| 00:12:02 |
HOST
THIS QUESTION FROM TWITTER -- HOW MUCH OF THE RESPONSIBILITY FALLS ON THE BAR WERE? HOW -- TO WHAT DEGREE DID THE LENDER COMMIT FRAUD? GUEST: THIS QUESTION...
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| 00:12:16 |
GUEST
THE MINDS OF EVERYONE. THERE IS ENOUGH BLAME FOR EVERYONE. BORROWERS WERE CERTAINLY INVOLVED IN THE CRISIS, OVERREACHING. DO YOU REMEMBER THE MANIA FOR...
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| 00:13:52 |
HOST
DAVID FROM LONG ISLAND, NEW YORK. CALLER: GOOD
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| 00:13:57 |
CALLER
MORNING. I REFINANCED MY HOUSE ABOUT EIGHT YEARS AGO. I BORROWED HALF THE VALUE OF MY HOUSE. THE ECONOMY WENT SOUTH ON US. NOW THE BANKS ARE SENDING...
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| 00:15:00 |
GUEST
MANY, MANY BORROWERS WHO ARE HAVING TROUBLE REFINANCING THEIR HOME LOANS. I HEAR FROM A LOT OF THEM. IT IS A REAL PROBLEM. WE HAD A PENDULUM THAT HAD...
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| 00:16:42 |
HOST
IDEA OF THE DEBT TO INCOME RATIO. THAT WAS SOMETHING RICHARD CORDRAY TALKED-ABOUT. THIS IS FROM AMERICAN HERO JOE. EXPLAIN THIS ISSUE FOR US. CAGUEST:...
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| 00:18:26 |
HOST
OF YOUR CO-WORKERS WROTE ABOUT IN A COLUMN FROM FRIDAY. "CLOUDS SEEN IN REGULATORS' RCRYSTAL BALLS FOR BANKS" IS THE TITLE. HOST: TALK ABOUT THE
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| 00:18:57 |
HOST
BALANCE THE CONSUMER FINANCIAL PROTECTION ROOT BEER PAST TO WORK WITH IN INSURING BANKS WILL STILL BE WILLING TO LEND MONEY UNDER THESE NEW RULES. GUEST:...
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| 00:19:10 |
GUEST
BALANCE. I WAS DESCRIBING ABOUT THE PENDULUM WHAT WE WANT TO ELIMINATE THE OUTSIDE EDGES OF THAT PENDULUM WHEN WE'RE SWINGING TOO CONSERVATIVELY OR TO...
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| 00:20:49 |
HOST
THE "THE NEW YORK TIMES" ASSISTANT BUSINESS AND FINANCIAL EDITOR. SHE WAS CO-AUTHOR OF "RECKLESS ENDANGERMENT.' GUEST: WHO BASICALLY
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| 00:21:09 |
GUEST
WERE THE INTERCO PARTIES IN CREATING THE CRISIS DECADES LATER. HOST: DON IS
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| 00:21:17 |
HOST
NEXT FROM CLIFTON, VIRGINIA. CALLER: A
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| 00:21:22 |
CALLER
GOOD TIME TO SEGUE THE EARLY SEEDS BEING SEWN. THINGS LIKE THE COMMUNITY REINVESTMENT ACT AND BARACK OBAMA'S ATTORNEYS FORCED BANKS TO MAKE IT SUBSTANDARD...
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| 00:22:07 |
GUEST
A CRISIS THAT WAS THIS DEVASTATING AND HARMED THIS MANY PEOPLE, I DON'T THINK THE ANSWER IS TO GO ABOUT ALLOWING THESE INSTITUTIONS TO CONTINUE DOWN...
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| 00:24:36 |
HOST
YOU FROM TWITTER, ARVIND. GUEST: I THINK
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| 00:24:47 |
GUEST
THE SMALL COMMUNITY BANKS CAME OUT OF THE CRISIS WITH VERY FEW BRUISES AND A FEW BLACK GUEYES. THE LARGE MORTGAGE ORIGINATORS LIKE COUNTRYWIDE AND WASHINGTON...
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| 00:26:01 |
HOST
A MARKET SHARE DID THE SMALL BANKS HAVE COMPARED TO SOME OF THE BIG BOYS? GUEST: VERY
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| 00:26:10 |
GUEST
SMALL. WE ARE TALKING ABOUT YOUR LOCAL BANKER. THERE ARE TWO KINDS OF SETS OF BANKS. THERE ARE COMMUNITY BANKS AND THE LARGER BANKS AND THE MORTGAGE UNDERWRITERS...
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| 00:26:32 |
HOST
HOST: ANTHONY IS NEXT FROM BALTIMORE. CALLER: GOOD
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| 00:26:37 |
CALLER
MORNING. I HAVE AN IMPORTANT QUESTION. I DID IT ALL RIGHT WITH A CONVENTIONAL MORTGAGE, FHA. IN 2008, THE BOTTOM FELL OUT, I GOT CAUGHT AND WENT UNDER...
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| 00:27:27 |
GUEST
RULES FOR MORTGAGES TO BE MADE GOING FORWARD. THERE IS NOTHING IN DISCUSSION ABOUT PEOPLE IN YOUR CIRCUMSTANCE, HAVING TAKEN OUT A MORTGAGE DURING THE...
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| 00:28:32 |
HOST
IS AN ANNOUNCEMENT THAT THE BANKS COMPLETED AN $8.5 BILLION SETTLEMENT WITH REGULATORS. TAKE US THROUGH THAT CASE.
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| 00:28:48 |
GUEST
GUEST: THAT SETTLEMENT WAS AROUND -- IT WAS DESIGNED TO REMEDY SOME OF THE EGREGIOUS FOR CLOSURE OF PRACTICES THAT HAD HARMED QUITE A FEW BORROWERS. THESE...
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| 00:31:54 |
HOST
HEADLINE BACK ON JANUARY 5 ON THIS LOOMING SOLOMON. GUEST: IT IS ANOTHER
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| 00:32:04 |
GUEST
SETTLEMENT, VERY SIMILAR TO THE 50 STATE SUPPLEMENT THAT WAS STRUCK LAST YEAR. THE GOVERNMENT DOESN'T DO THE INVESTIGATION TO SEE HOW PERVASIVE THE PROBLEMS...
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| 00:33:00 |
CALLER
MUCH. I AM GETTING A GOOD EDUCATION WITH THE HOUSING MARKET. I CANNOT HELP BUT THINK OTHER PEOPLE OUT THERE THAT HAVE HAD A SIMILAR SITUATION. I HAVE...
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| 00:34:33 |
GUEST
GOING UP. THE CPI IS NOT GOING OUUP. ANYBODY WHO GOES TO THE GAS STATION OR SUPERMARKET SEES THAT THE COSTS ARE CREEPING UP. THAT MAKES IT MORE DIFFICULT...
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| 00:36:09 |
HOST
ON TWITTER FROM SEA DOG. GUEST: AGAIN, IT HAS
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| 00:36:20 |
GUEST
NOT BEEN MADE CLEAR WHAT THE TERMS OF THE SOLOMON R., WHAT KINDS OF CIRCUMSTANCES WILL BE THOSE THAT GET THE REMEDY -- WHAT THE TERMS OF THE SETTLEMENTS...
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| 00:37:04 |
HOST
LEXINGTON, SOUTH CAROLINA, GOOD MORNING. CALLER: GOOD
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| 00:37:09 |
CALLER
MORNING. I APPRECIATE YOUR COMMENTS. A LOT OF WHAT YOU'RE SAYING IS TRUE. I THOUGHT I WOULD BRING SOME ADDITIONAL REALITY. I HAVE A SON WHO HAS BEEN IN...
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| 00:39:17 |
HOST
LET'S GIVE GRETCHEN MORGENSON A CHANCE TO RESPOND. GUEST: I AGREE WITH THE PUSH
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| 00:39:25 |
GUEST
FOR HOME OWNERSHIP. IT WAS THE NATIONAL PARTNERS IN HOME OWNERSHIP. IT WAS A PLAN TO PUSH FOR THIS. THE BANKS MAKE A TREMENDOUS AMOUNT OF MONEY ON THESE...
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| 00:40:45 |
HOST
THINK THE BANKS BEAR SOME RESPONSIBILITY? CALLER: IT WOULD BE SILLY TO
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| 00:40:51 |
CALLER
SAY NOT. THEY DID HAVE A HAND IN THE TRANSACTIONS. TO PLACE ALL FAULTS ON THE PART OF BANKS UNDER PRESSURE BY LIBERAL POLICY BROUGHT FORTH BY GOVERNMENT...
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| 00:41:54 |
HOST
A SOUTH CAROLINA. BRIAN FROM MADISON, OHIO, GOOD MORNING. CALLER:
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| 00:42:05 |
CALLER
GOOD MORNING. MY WIFE IS AN OFFICER. THIS PROBLEM DID NOT EXIST DURING THE CLINTON ADMINISTRATION. AS SOON AS BUSH LET EVERYTHING GO. MY WIFE IS NOT ALLOWED...
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| 00:43:10 |
GUEST
TRUE. THE FACT THAT YOUR WIFE WAS OVERRIDDEN WAS ONE FACTOR CONTRIBUTING TO THE CRISIS. PEOPLE TRIED TO RESTORE HANDS AND SAY THIS IS NOT RIGHT. THERE...
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| 00:43:42 |
HOST
MORGENSON, THANK YOU FOR JOINING US. UP NEXT, THE U.S. COULD HIT THE DEBT CEILING AND ONE OUT OF MONEY. A NEW REPORT BY THE BIPARTISAN POLICY CENTER ON...
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| 00:43:48 |
none
CLIP] >>
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.