fannie mae was frank rin reins and two other executives who cooked the books at fannie, even a governmentncy said that franklin reins and his executives, knowingly manipulated the books. the three walked away with $115 million in executive pay. franklin reins got $90 million when countrywide financial, one of fannie mae's biggest clients and they were giving a lot of money in the form of political donations to congress. so you saw a record $400 million fine slapped against fannie and franklin reins having to pay over $31 million in fines, back to the government for their accounting and securities fraud. and basically, that was the settlement. but they paid with stock options that were proven to be worthless. but getting to your point at hand, the housing and economic recovery act, which basically dictates how fannie and freddie are taken into conservatives, meaning seized by the u.s. government, says that the government can repudiate those contracts with the executives, that they don't have to pay the legal fees. and here's the deal, the i.g., inspector general says they want to continue

i have covered them in "wall street journal" and fannie mae sands out. it was two that cooked the books, $6 billion of accounting statements in 2004. even the government stated that franklin and his executives knowingly manipulated the books to boost. they walked away with $115 million in executive pay. this is at a time when countrywide financial is one of the biggest clients and franklin raines and other executives were giving a lot of money in the form of political donations to congress. what you saw was a record, $400 million fine slapped against fannie mae by the government. then franklin raines paying over $31 million in fines for securities fraud. basically, that was settlement. they paid it with stock options. that seemed to be worthless. >> housing and economic recovery act which are basically dictates how fannie mae and freddie mac are taken into seized by the u.s. government the government can repudiate the contracts with the executives but they don't have to pay the legal fees. get this. here is the deal. the idea that the inspector general,

why didn't dodd frank bill address fannie and freddie? that's not a question for you, but i want to know what your plans are when it comes to fannie and freddie? what would they be held accountable for? >> and they're not essentially in business anymore. we sent a letter to the head of fifa two weeks ago saying, you need to address this fannie/freddie issue in the first instance, that we need the same kind of relief for those loans that fannie and freddie and now in receivership can be modified, can have principal reduction. we're working with california and the united states ask working with homeowners in those states. but we need ultimately to get

fannie and freddie have proven the opposite. they paid executives outrageous compensation and yet still failed by alaskans and all americans. they needed hundreds of billions of dollars to taxpayer bailouts and still ended up in conservativeship. this sends an unsettling message to millions of hardworking people who are struggling to make ends meet. they have taken alaskans' tax dollars in the form of bailouts. yet when my constituents in fairbanks or juneau needed help to avoid foreclosure or refinance their loans, fannie and freddie often turned their backs. i offer this advice who say fannie mae and freddie mac need to earn millions, whatever happened to the notion that is honorable calling to work on behalf of your friends and neighbors? there are lots of dedicated, hardworking professionals at fannie and freddie who believe in that notion, and they are doing their absolute best to help american families afford the american dream of owning and keeping their homes. the begich-thune bill makes sure that this hard work continue

for non-fannie and freddie borrowers, loans that aren't currently held by fannie or freddie, fha would be refinancing those. and the first thing i would say, going back to my point earlier, the most important thing we can do for the taxpayer is to make sure that the housing market improv improves. because that will improve the value of all p fannie and freddie and fha's investments. we're also proposing that the cost of this specific additional effort be completely offset. so it wouldn't add a dime to the deficit. we would set up a completely separate fund to wall off existing insurance that fha has. and we would also put in place a set of steps that would make sure that we don't have the risk iest loans, the most deeply underwater, coming onto fha. but remember, these are all folks that through the crisis have been paying, and we're lowering their payments on average $3,000 a year. we think these folks are going to be even more likely to pay, and it makes sense given the boost to the economy and the housing market overall that we should move forward with this plan. >> let me get your

essentially you can do that through fannie and freddie. with harp yes it's specifically designed for fannie and freddie-back loans. these people are paying 7%, they could save 50 to a month. let's bring them down. -- 500 a month. it will lower the risk of default, prevent foreclosures. that should save the government money. and again, everything comes back to this hedge fund side of the business. if you just look at the let's call it the good side of the business, there's no prock with that. there would be no friction with allowing these folks to refinance if the government is already on the hook. it's on the investment side that, oh, well, we've got $700 billion worth of investments, some of those could take a hit if we allow these folks to refinance. and you wonder, is there a tension that exists there that's having an effect on policy. host: how does wall street look at the housing industry these days? guest: well, there's deep skepticism about the housing market on wall street from a couple of points of view. the banks stocks trade rg

no more fannie and freddies, no more solyndras. let's ensure we account for these cost as part of the republican plan for america's job creators to give our job creators the confidence they need to hire and grow this economy. the chair: the gentleman from maryland. mr. van hollen: i thank you, madam chair. it's unfortunate that some of our republican colleagues can't take just a moment away from politics to celebrate the fact that we did have some good economic news over the last month, over 250,000 private sector jobs created. that's good news. is it enough? of course not. of course we need to do more which is why we'd like to see our republican colleagues bring the president's jobs bill to the floor of the house. it's still sitting somewhere around here that includes a proposal to invest in our infrastructure. you know, roads and bridges and broadband so we can make sure that we have an economy that can compete and win with respect to our global competitors so it would be great to take up that bill. in the past, investment in inf

conversation with senator john thune who is putting forth legislation to stop of the big bonuses for fannie mae and freddie mac executives, and he will be here to talk more about that in 20 minutes. >>> meanwhile negotiators on the capitol hill in extending through the end of the year the payroll tax cut worth $1,000 for the typical worker, but lawmakers are far apart on how the pay for tex tepgs as well as jobless benefits for millions of unemployed americans without swelling the national debt, and the house senate panel beginning the negotiations on the payroll tax figuring out how the pay for it, and the lawmakers working on the conferee saying they will start with the second tier issues like overhauling unemployment insurance. secretary of state hillary clinton says that russia and other countries must ask themselves if they should stand with serious people or the dictator, and the secretary state saying that they are hoping to win council approval of the arab resolution, and calling on syrian president assad to leave power. russia, as we talked about in the last couple of days opposes

secretary donovan recently commented on fannie and freddie. we need to break the logjam of principal reductions. and as you well know, treasury has offered triple incentives to banks and mortgages, mortgage companies willing to cut mortgage principal for under water homeowners through the housing affordable modification program. you have talked about it some time, haven't you. the need for principal reduction is very apparent not only in new jersey but some other states obviously while the decline in the median price, median price of a single-family house, home, outpaced the national average by 3.7% drop, a 3.7% drop with bergan county having 8% drop last year. that's big. and an even higher drop of 8.4% right next door. mr. secretary, the need for principal reduction for freddie and fannie held mortgages is apparent. is it contained within the president's 2012 budget? and if it isn't, why isn't it? >> it doesn't need to be in the budget because we believe that fannie and freddie have the clear authority to provide principal reduction in cases

. >> another $5 billion kick in the panty from fannie mae.he day after president obama praises bailouts, did we just get proof they don't work? bailed out fannie mae is pleading money. again. and wants taxpayers to bail it out. again. this time, to the tune of $4.6 billion. and tack that on to the $185 billion we have already given fannie mae and freddie mac. my guest says you are throwing money down a deep hole. but we keep doing it because, i think, these guys represent 80 percent or mine percent of all the mortgages and if we hurt them we hurt those mortgages. what do you say? >>guest: well, that is what the president would say, we have to keep these people around or you do not get a mortgage, but the problem is, these has made a lot of promises to the firms and the companies that want this money. so he feels like he has things he has to uphold there. but, the other issue, neil, when you look at a bailout and you throw money at a failing industry, a falling businesslike the housing market, for example, you could run the risk of ringing out

>> i would certainly start to wind down fannie mae and freddie mac.y haven't been downsized at all since september 2008 when they were put in conservatorship. if you compare it to similar, they have had control of the trust corporation in the '80s, they immediately started downsi downsizing. they can put them in receivership. they can start doing that immediately. >> isn't the problem if they put them in receiver shship it will force a debt restructuring that will seize up the big banks? >> ip don't see that happening. >> can i explain to you how it could happen? the big banks are pretending that the second liens are worth 80 cents on the dollar. when you start to restructure the first mortgage in the open market, you render the second liens 0, which annihilates the balance sheet. it's the same if you put swaps on exchanges. whether it's restructuring at fannie or the first lien in the bond market or my swaps market, the very reason none of these ideas ever happen is because if you were to do them, it would force a complete restructuring of wells farg

harris wrote a letter to the agency which oversees fannie and freddie.she wants the agency to do a full analysis and figure out if reducing the mortgage principle of underwater homeowners would help and if it would save taxpayer money. the agency has spoken odd to the litter. we don't know what -- has responded to the letter. we don't know what the response said. she secured for california 18 billion dollars out of a 26 billion dollar settlement with five banks to also help underwater homeowners. harris says that deal provides a historic opportunity for fannie and freddie to also work with california homeowners. katie marzullo, abc7 news. >>> firefighters have spent all night watching a mountain view apartment complex that burned quickly yesterday. they want to make sure the fire doesn't flare-up. dozens homeless, 10 units destroyed. the investigators know the unit in which the fire started but don't know how. flames got into a common attic area and quicklyk]9ha spread. everybody got out okay. some residents have nothing more than the clothes on their ba

. >> greta: and fannie mae and freddie mac, more than $150 billion. didn't believe that was not all two months ago. they were given millions in bonuses and are they going to get it? also an ominous warning, top u.s. officials have new information, it's not good at all. john bolton goes on the record. and michelle obama about to join american idol. stay tuned for the very latest this new at&t 4g lte is fast. hey. did you guys hear... ...that mary got engaged? that's so 42 seconds ago. thanks for the flowers guys. [ both ] you're welcome. oooh are you guys signing up for the free massage? [ both ] so 32 seconds ago. hey guys you hear frank's cat is sick? yeah, we heard. wanna sign the card? did you know the guys from china are in the office... [ speaking chinese ] [ male announcer ] stay a step ahead with the 4g lte galaxy s ii skyrocket. only from at&t. ♪ >> greta: whether fannie mae and freddie mac and the fight against the teachers ever end? to the tune $150 billion will you think that would be the end of the asking. not so fast, in november they ask

why didn't the dodd/frank bill address fannie and freddie. why are they still in business. that's not really a question for you but i want to know what your plans are when it comes to fannie and freddie? >> they're not really in business. they're essentially in receivership with fifa, federal housing financial authority. we sent a letter to the head of fhfa and said you need to address this. we need the same kind of relief for those loans that fannie and freddie and now, in receivership, can be modified, can have principal reduction. we're working with california, new york, many of the other states in looking for that accountability for homeowners in our states. we work what our federal partners on. but ultimately we need the same resolution that we've gotten in massachusetts and now, with this agreement, to get relief for homeowners. that issue, i think, is a good one to ask your congressman, your senators, they are federally created and federally run and federally overseen. and the hands for -- the ways in which a resolution can be reached with them is probably going to h

>> fannie and freddie have a separate process of enforcing servicing violations. they are pursuing those claims and they have separate processes, as fha does, for origination violations, etc. specifically on which loans this will apply to, and we see the refinancing portion that is part of this settlement as a perfect complement to the refinancing effort that the president has already talked about and that are moving forward for underwater current homeowners in fannie and freddie loans. we knew as we were designing the settlement that we had already made steps to ensure that fannie and freddie borrowers who are under water could refinance at record low interest rates today, but we knew that that option is not available to homeowners that had loans that were in the portfolios of the bank. that is what the refinancing component is focused on, so it complements what is available to fannie and freddie borrowers. and modifications, fannie and freddie are already doing extensive payment modifications for those homeowners. that are not doing significant principal reducti

. >> tom: this plan is aimed for refinancing hope orns into taxpayer guaranteed mortgages through fanny mae and freddie mac, is that correct? >> actually it would be refinancing them through fha, which is part of hud. but the basic idea here, the president has taken important steps over the last six months to make sure that middle class families who are doing the right thing, paying their mortgages even though they're under water, would have the ability the refinance. the problem is if you happen to have a mortgage that isn't a fanny mae or a freddie mac or fha mortgage, you're out of luck, and you may be doing everything right, paying your bills, but you can't benefit from what are today record low interest rates. >> tom: secretary donovan, with just learned this week that freddie mac has financial positions that profit when homeowners stay in higher interest rate loans. will this practice continue, even under fha administration? >> well, first of all, i was, as you are, troubled by this information, and the treasury department is working with the regulator of fanny mae and freddie mac

. >> greta: and fannie mae and freddie mac, more than $150 billion. didn't believe that was not all two months ago. they were given millions in bonuses and are they going to get it? also an ominous warning, top u.s. officials have new information, it's not good at all. john bolton goes on the record. and michelle obama about to join american idol. stay tuned for the very latest tonight. you don't want to miss it. y... ♪ that right now, you want to know where you are, and where you'd like to be. we know you'd like to see the same information your advisor does so you can get a deeper understanding of what's going on with your portfolio. we know all this because we asked you, and what we heard helped us create pnc wealth insight, a smarter way to work with your pnc advisor, so you can make better decisions and live achievement. premier of the packed bag. you know organization is key... and so is having a trusted assistant. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-s or abov

fanny and freddie are pawmped up time and time again by the american taxpayer and again democrats areing a blank check, instead of fixing the systemic problems at fanny and freddie and dismantling it and returning it to the private sector, what is it doing, bailing them out again, and they made the investment of $25 million, it's a spit in the ocean compared to what they've done to the mortgage market. they're easy to pick -- on the private sector and let them off the hook but the ultimate problem with fannie and freddy as with dodd electronic iso frank is to exempt them from the rules they require the private sector to adhere to. this is again the american people bailing out an industry instead of fixing the problem. megyn: this guy, edar demarco, direct, of an independent agency in charge ofover seeing fanny and freddie says this is a bad idea, i don't want to do this because i think it's going to cost the taxpayers money and now a growing group of democrats is calling for that guy to step down, they see him and this independent group as an impediment to the writedown of the mortgag

fannie mae and freddie mac and that's the next place we need to go. let me be clear, by know means is this the whole solution or the end of the problem. first, i think we need tide lot of work to make sure this agreement itself is implemented. i think we move forward in good faith that we'll be able to get the relief for people that this agreement is designed to effect. that's step one. secondly, it's not everybody. and it doesn't deal with, remember, the things that got carved out. all the the attorney's general that said we won't sign an agreement unless we can carve out some securitization claims. some criminal investigations. in massachusetts we had very specific claims around holding mortgages before you can foreclosure. we carved out of this agreement. i want to be clear this is only one piece of a much larger puzzle and we've done some work in the past and brought over $600 million back to homeowners massachusetts in origination claims and securitization claims and this piece will help for those homeowners who are eligible but there's still lot

this is not an exceptionable deal it was a made for a few people that freddie mac and fannie mae. it's probably in 95% of the contracts of publicly held companies. >> fhfa inspector general explains due to contractual obligations, fhfa believe the option are limited to paying current legal fees for officers and directors. they nonheless believe that fhfa must continue effort to control and scrutinize these legal expenses. but if organizations like fannie mae and freddie want to attract top level executive talent, curtailing the access to top level legal talent will prove difficult. >> when you have a deposition do you have to have three lawyers in the room? if it's taxpayers' money we need three, maybe four. there is no accountability for keeping the legal cost within a proper reference point. >> by july, inspector general will receive report on the fhfa on steps that they are taking to rein in legal bills. james rosen, fox news. >> bret: up next, why some american businesses are pulling up stakes and going to canada. later, one woman's crusade to overcome government red tape. and

fanny and freddie doesn't want to spend legal costs in court.is worth our while to cover their fees and even the bill. >> we got to move on. rick. the fact is, these people's legal fees. i don't want to cover legal fees like this. >> i don't like the fred yefanny fools anymore. but you have to honor contracts and unless they breached the contract. >> no, we don't. >> unless you show they breached it. what does bug me. there are people on this panel who defended paying the aig bonus. don't say no, we didn't. liz lizz you didn't. i was going to give you a shout out. you were tough on aig as. >> why shouldn't we pay the legal fees. i can't figure it out, do you? >> pay contractly obligated legal fees. look at what the president did with the gm bond holders. >> he violated the law. you know, the president. >> two wrongs don't make it right and get the government out of fred yefanny business and liquidate the government should be out of it. >> look at what happens when american airlines go bankrupt. share horaleds and people working there pay the pri

that's my point with freddy and fanny.of it governor, i would wake up in the middle of the night as we all do at 3:00 and just thinking about what is wrong with this picture? what is wrong with the picture is that even though we were able to move to a good settlement with the banks, 62% of the loans in california are on owned by freddy and fanny, and they were not at the table and they refused to be at the table. it's outrageous, and i called on dimarco-- >> dimarco is the one who oversees it. >> you called on him to step aside. >> i did. >> go girl. that is good. >> here is the deal. if you can do your job stay in the job. if you can't do your job step aside. >> and he did not is not doing the same deal. he philosophically disagrees with principle reduction which is the only way these people will stay in their homes. i sent him a letter today and basically said-- >> go home. >> well, you know-- >> who is he appointed by? >> freddy and fanny are an interesting entity because it's public and private. he's in the job long en

again, fannie and freddie loans don't qualify in? case, there's a lot of criticism flying arnold because of this -- around because of this deal. some people are saying it's too generous, some say it doesn't go far enough. americans owe a collective $700 billion more on what their homes are worth and it only reduces this by $20 billion and doesn't help out many who are underwater. >> we were talking about maybe two million. but it's 11 million people who are in trouble and you were telling us earlier about the state of maryland really in trouble. prince george's county is going to take a hit with this. >> prince george's county has a really tough foreclosure problem. the worst in the state. maryland is actually going to get about $1 billion of aid through the deal and some are saying the foreclosure process is going to speed up because of this deal. that could hit areas like prince george's county especially hard because there are still so many loans in limbo in that case. that could speed up the foreclosure process and clear the mort

fanny, bienvenida... dos oficiales de la policia de prince georges han sido suspendidos luego que un video no comprueba sus declaraciones de lo que ocurrio durante una balacera en brentwood la semana pasada... ocurrio durante un presunto intento de asalto a una tienda al paso que involucra el disparo a un joven de 19 aÑos.. el inspector general dice que el video de seguridad contradice parte del testimonio del oficial.. las investigaciones continuan... amigos y amigas que tal... bienvenidos a la emision informativa de las 11-de la noche.. muy buenas noches que la policia del condado de montgomery esta pidiendo la colaboracion del publico, para dar con el paradero de manuel mejia-rivera, de 31 aÑos, residente en la cuadra 100 de la michael court, en gaithersburg, quien esta desparecidos desde el pasado sabado, cuando fue visto abandonado su casa, en una automovil honda civic crx, blanco con placas de maryland numero 1-a-n-80-12 .. cualquier con informacion relacionada su paradero, favor de reportarla una f

we didn't like that, let's move them back up and let, fannie, and freddie back mcmansions.he longer this happens, the more you'll see the private sector. >> president obama must figure, james, nobody knows what the fha is really. all they know i'm proposing something that sounds good and it's going to help, i'm going to help you desperate home owners now, a second term thing if fha has a program. am i being too cynical. >> no, certainly an appeal and there are houses and sitting on losses and there's, i guess, a desire to help those people, pan subsidize them further, but we should point out here that the taxpayer exposure is not just the risk that mary is describing, it's not theoretical. and the point happens with a five to ten billion dollar tax and it's applied to banks. so it's a transfer of wealth right off the bat from shareholders, probably some customers ever banks, end up paying for the new tax, but funds this subsidy for people who are underwater. >> how likely, is the pass? >> it's not going to pass and one more point on changes to the risks. these are basically

but the majority of the mortgages are owned rather by fannie mae and freddie mac and they are not covered by this deal. it's probably going to take months before homeowners can learn if they're even eligible for help in the next two months government officials will choose an administrator then take another six to nine months to notify homeowners. the washington region is raking in about $1.5 billion in the deal and that's because maryland is facing the worst foreclosure problem in the region. so it's getting almost $1 billion in aid. this is the sixth largest cash injection nationwide going to maryland. virginia will receive about $480 million and the district is expected to get roughly $45 million. >>> the house has passed its version of the stock act and it bans lawmakers from insider trading. the measure was approved thursday with just two no votes. it must be reconcile with the the senate version now. >>> and wall street, two deals. the mortgage deal and another bailout deal announced for greece neither of which produced much of a rally. checking the numbers -- >>> we could not stop t

dodd frank ignored fannie and freddie. he has had chances to deal with it.s like tippingering on the edges. >> the banks will now have some certainty about how much they have to repay. it may not be what everybody wants. now they know and they can now put some of the money back in the home origination of mortgages. good for the economy. >> tarp, tamp, hamp, hemp, all the programs -- >> bret: i don't think there was a hemp. ron paul is on that one. >> hemp. the item is the president has to give appearance of action in motion. we saw it in the "state of the union" address. there is nothing large he is proposing. a huge overhang in debt. it's the appearance of motion which is what a president wants. >> that is it for the panel. stay tuned to see one interesting project from the white house science fair. jooz ask. >> bret: finally tonight, president obama spent some time this week touring the white house science fair and was particularly interested and impressed with one project, an air cannon that the student inventor says shoots marshmallows. apparently it mig

it is a great time for fannie mae and freddie mac to sell, and fannie mae and freddie mac are major wall street players. they are involved in lots of structured financing. they have gigantic investment portfolios of mortgage-backed securities. but through their agreement, and they were taken over by taxpayers in 2008 because they failed, and through their agreement with u.s. treasury upon taking over, they were told you have to reduce your portfolio. right now is a great time for them to do that. it is a great time. interest rates are low, which means bond prices are high, a lot of demand for this stuff, and they could sell right away. it is a wonderful time if we want fannie mae and freddie mac to sell their portfolios down, thus being less risky to the overall economy of the u.s. financial markets. it would be a good time for them to sell. what this story shows is that freddie mac is making it appear like it is reducing its balance sheet, makes it appear like it is selling mortgage-backed securities to the market, but it is actually retaining almost all of the risk of those mortgages.

una de las cosas que mas necesitamos es seguir presionando a freddie mac y fannie mae porque ellos sonlos que controlan la mayoria de los prestamos en california y quienes se han rehusado totalmente a hacer alguna reduccion en los balances.... pilar nino se espera que tome un tiempo en implementarse los alivios frutos de este acuerdo judicial....well s fargo ha dicho que los tendra listos a partir del primero de marzo....pilar nino telemundo. cu ---surge nueva informacion en torno al sospechoso de haber baleado a un agente federal el martes por la manana... take vo ---de acuerdo a las averiguaciones, la esposa del agente fue estudiante del sospechoso hace casi un ano en la clase de optica que este ensena... ---ahora la policia asegura que dennis bagwell estaba obsesionado en tener una relacion amorosa con la esposa del agente y que ese fue el motivo que lo llevo a dispararle a robert suplik, quien trabaja en la aduana del aeropuerto de san francisco... ---el agente se encuentra internado en el centro medico eden de castro valley pero la familia ha solicitado que no se divulge su cuadro

also, she has demanded the head of fannie mae resign. the head of delegations are demanding he resign. the question is why is obama keeping him when there's so much pressure from his own party and the republican party also critical? it's somewhat confusing. >> what is going to be done? there's this big pot of money. whenever there's a big pot of money there's predators and scam artists who are going to come in and potentially get some of that money. how are they going stop that? >> if anybody comes to you and says, give me $500, i'll access this, hang up the phone. >> if you know. >> if you know. there are hud certified housing counselors in the state of california, the country, at community centers and large organizations. but there are going to be scam artists and law enforcement chasing scam artists. a lot of it is about how much messaging the government can do to people so people are actually aware of what the system is. one of the provisions of the settlement is that if you are part of this group of people who is eligible, the banks

all lenders are in there wells fargo, chase, bank of america, fannie mae, freddie mac, representatives they get in there they are going to get a chance to refinance save maybe hundreds of dollars per month. darin joins us me from naca communications director. how is it that you can get as low as 2%, 30 year fixed, how can naca get it? >> most of the people have tried and failed on their own with their lender. we have legally binding contracts with every major lender in the country that says if we can show the mortgage is unaffordable they have to get to an affordable payment that can go as low as 2% to get to that. will everyone get 2%? it depends on affordable. income, expenses and what is leftover, the mortgage is unaffordable. that's how we figure that out. >> reporter: give me the five most important things people need to bring? >> proof of income. if they are working, thirty days of pay stubs, bank statements, unemployment show us some roof proof of income. they can go on to the website naca.com and see the documents you need. >> reporter: thank you. go to abc7news.com we've linke