. >> reporter: the program is aimed at fannie mae and freddie mac loans taken before 2009 and whose payments are current, harp will now last through end of 2013, borrow 25% or more upside down, homeowners who qualify would get lower interest rates, but some private mortgage brokers have concerns. >> we are going to make money on it because it will be more loans but i think it is a bad move. >> reporter: kerry green of alleyed mortgage in an non-dale virginia is president of national lenders alliance and critical of the changes he says the housing market needs to stabilize on its own without any more government interference. >> let it seek its own bottom if it isn't already there it will repair itself every time the government gets involved and intervenes all they do is delay the ultimate repair of the housing market. >> reporter: but among the top ten states in foreclosure, are maryland, 24% and virginia, 23% federal regulators say opening up the harp program will ensure more homeowners stay off the foreclosure role. >> one thing we have really done is try to make stream lined refinance oppo

it is aimed at fannie mae and freddie mac loans taken before 2009. the home owners who qualify would get lower interest rates but some private mother began brokers have concerned concerns saying the housing market needs to stabilize on its own without any more government interference. >>> the death toll is rising following a powerful earthquake in turkey. we'll have the latest on the situation there coming up next. >>> an update in the search if a missing 10-month-old in missouri. surveillance video that could provide some new clues in the investigation. that is coming up on the other side of the break. dinner's ready. [ female announcer ] hamburger helper stroganoff. beefy. creamy. stroganoffy. helpers. forty dishes, all delicious. gives us the most nutritious of gifts. but only when they are ready to be given. that's why we pick vegetables at their peak. ...and freeze them fast, locking in nutrients ...for you to unwrap. ♪ ho, ho, ho. green giant to what's next,e in the future, to what's possible.ng ahead... confident that taking action now, is the

those who have mortgages owned or guaranteed by government lenders fannie mae and freddie mac, loans made on or before may 31, 2009, and are current on their payments for the past six months with no more than one late payment in the last year. the program would allow homeowners to refinance, no matter how much they owe, eliminate appraisals and many underwriting requirements and waive many expensive up-front fees. government officials were hesitant to say how many homeowners are eligible. unestimated as many as 4 million while independent economists estimated as few as 250,000. the government acknowledges the program will not help 6 million americans already facing or in foreclosure. >> we've got to do more to help the communities that have been hardest hit that are struggling with vacant and foreclosed properties. >> reporter: las vegas resident dennis smith is nearing retirement but feels trapped by his mortgage. he thinks he could save as much as $500 a month with this program. >> it's a very, very stressful situation for my generation who has always looked at the home as a safe i

this applies to those who have a fannie mae or freddie mac loan since before 2009. the payments on the loan have to be current and you have to be at least 25% upside down in the loan. the program will last through 2013. >>> steve jobs' biography is now out on store shelves and it offers plenty of insight into his life and the unique way he viewed the tech industry and its biggest players. >> reporter: it is on sale now, the steve jobs biography. it will probably be the most download book ever. he cooperated with walter isaacson. he had an intense dislike of google. >> he did not feel it was in their dna to have dignity in their product. jobs said i'm going to destroy android because it's stolen product. and the android brand could take a hit especially as jobs' public esteem has risen in the past few weeks. for now, more than 550,000 devices running on android are activated each day. meanwhile, apple sells about three million fewer iphones than anticipated contributing tie slight drop in the company's stock. the latest android challenger is the galaxy nexus from sam

i don't have a fannie mae or a freddie mac loan. at kind of loan i have, but it doesn't qualify. so i don't see where there's help for me. >> let me bring in another guest here. anderson, you're 56, you lost your home in a foreclosure, you share an apartment with three friends. what do you think has happened to the american dream? >> yeah, i don't know. i mean, it used to be for many years, as you said, michael, you could get ahead, you could move up. i was sort of upwardly mobile in the corporate world. now i'm working retail. it's a nice job. but i'm making what i made in the '80s. the opportunities aren't there. and democracy and capitalism used to sort of work together. i don't know if they're going to work together going forward the way they used to in the past. >> what do you think when michael clearly lays massive blame on the banker. in fact, 100% blame on wall street. what do you think? >> my loan was underperforming. i guess the board looked at it and said some late payments, for 20 years they were paid, but late payments b

you must have a fannie mae or freddie mac loan and must be current on your payments for at least six months. this is not targeting those facing foreclosure, but it could help some folks who are perhaps on the edge. perhaps thinking that a couple of months from now they are not going to be able to keep paying the high rates. there a lot of things you have to qualify for, number one being current on your payments. >> on andrea mitchell reports, shawn donovan was on and said the administration could not say how many homeowners this program will actually help. is that of a concern? >> it's a big concern. i saw him asked a couple of times and he was not able to put a number on it. analysts put it between 1.5 to potentially two million borrowers. there six million borrowers who are behind on their mortgages or facing foreclosure and that does not include all the millions of borrowers who lost their homes and millions in foreclosure and need to be sold off into the market. this is not about that. this is for borrowers who are current on their payments and don't qualify for refinances becaus

freddie mae and fannie mac own loans that are higher than the typical amount. also adds that the federal housing authority has the power to make changes that will help other homeowners. >> if they rewrote the rules or if they let the banks do more refinances without regards to the appraisal process that would help. ultimately, they are in control. until they come around and put that appraisal process a little further we will not see the relief we need. >>pam: the president is scheduled to visit san francisco tomorrow. this is video from back in april when he attended a fund- raiser at the masonic center. tomorrow he is said to attend a lunch fund raiser at the w hotel. ticket prices start at $5,000. about 200 people are expected to attend. the anti-war group the world cannot wait is planning on rallying outside of the event to protest what is happening in i rock and afghanistan as well as other military operations in the middle east. today the occupy san francisco protesters got a little help with their message there were joined by religious leaders from differ

>> income independent, the critical components your loans are guaranteed by fannie mae or freddie mac most people don't know that, fannie mae and freddie mac have web based tools to allow the borrower to find out if they have one. so you can go see if you have a loan. and for harp specifically you have to have an ltv of 08% or higher but -- 80% or higher but we have refinance initiatives. >> it is an election period as we know there will be critics of this harsh -- of the obama administration who made this an executive order now let me ask you, they say this is just prolonging the pain that in several years down the road you will still be facing this same problem, how does this look to the future? >> well, i think one of the other criteria, for eligibility is they have a good pay history and currently current harp is for those people who have been making payments on their loans there are a lot of issues in the foreclosure space harp is not focused on that, it is for people who through no fault of their own the loan has lost value they can refinance get into a more stable loan get a lo

>> it must be a primary residence t must be a fannie mae or freddie mac loan and it must be issued before the government so they have the ability to do that. >> takes effect on december 1, 2011 so not -- you have to start working on it if you want to do it. >> again, you see who qualifies. you know, a lot of people do qualify. >> yes. >> but it doesn't work for everybody. >> no you can't be late on any mortgage payments. that's big piece there. a lot of people are behind on their mortgages. you can't be behind on the mortgages, so make sure you're current, you have this conventional loan product and that you are under water. the loan amount does not change as far as if you owe more on the house than it's worth, you will still owe more but you just will refinance it. >> how will this boost the economy? that's the bottom line here, right? that's why the president is coming out with these plans. >> they say for taking advantage of the low interest rates, the average person will save about $2,500 a year, so you can now put that money back into the economy and boost the economy. >> thank you v

freddie mac. that is the universe of borrowers. then we are talking about borrowers with mortgages owned by fannie mae and freddie mac whose current loan gamma value ratio is above 80% and who obtained their mortgage sometime before june 2009. we announced several changes to the program to make this program more accessible to these borrowers, and it is really hard to say exactly how many folks will take advantage of it, but given the changes we have made, we estimate we may be doubling what we have already seen come through the program, and this will help folks to have been locked into not being able to take advantage of today's lower mortgage rates to be able to do so and to also reduce the credit risk to fannie mae and freddie mac. >> some not getting on board, they saw some barriers to the program. you worked to remove some of the risks involved. do you expect the mortgage industry to get on board now? >> that is a great point. in fact, part of the friction i mentioned was making things appear more difficult for lenders to be able to participate in the program, and so we have done a couple of things in terms of refining the program

the proposals apply only to loans backed by freddie mac and fannie mae. it removes the loan limit for borrowers who owe more than 125% of the value of their home. it eliminates certain fees and waves appraisal requirements. white house officials estimate the initiative could help up to 1 million homeowners, but the president acknowledged fixing the economy will take more than that single plan and urged congress again to help him pass his jobs bill. >> given the magnitude of the housing bubble and the huge inventory of unsold homes in places like nevada, it's going to take time to solve these challenges. we still need congress to pass the jobs bill. the housing market will not be fully healed until the unemployment rate comes down and the inventory of homes on the market comes down. but that's no excuse for inaction. that's no excuse for just saying no to americans who need help right now. it's no excuse for all the games and the gridlock that we've been seeing in washington. >> some poking holes in the president's plan to rescue homeowners. the "new york t

you can refinance if you've been up to speed on payments for some big loans that are guaranteed by fannie mae and freddie mac. the larger question seems to be, is the government going to be in a position to pay down and forgive some of the principle. >> i think the government could do more. first of all, i applaud the president for what he's done. i wish it had been done southeastern and i wish it had been done in a bigger way. this recent effort is going to affect about 900,000 people. we've got millions, david, that need help. a lot of people do not realize how important foreclosure, dealing with foreclosure is. people look at these efforts and say it doesn't affect me. they don't realize, their property value is going down. when one house on a block is foreclosed upon, it may bring down the value of other houses make 10, 15%. >> conservative views, one of the only countries in the world literally propping up housing market. two big mortgage giants in the country guaranteeing 90% of the mortgages. they are now, in effect, owned by the federal government we're not allowing the market to bottom itself out an

broad population of who's eligible, there are about 4 million families that have fannie mae or freddie mac loansnefit by a refinancing. the average benefit is over $,500 a year. so it's a substantial benefit for those families. $2,500. >>> one expert tells cnn it will not help the housing market. joining us with a critical look at the plan, publish er this. welcome. your mortgage backed by fannie mae or freddie mac, acquired by may 31, 2009, have toy curre y current on your payments. that's pretty strict. how many are up to date on payments? >> 11 million mortgages are under water. you heard secretary donovan mention earlier in the segment, there's 4 million borrowers that might benefit from this. most estimates we're seeing are about 1.5 million people will benefit from this. it's certainly a positive. i don't know how you can say it's not a positive to say we're going to actually help people doing the right thing. under water on their mortgage yet still making payments. certainly giving them the ability to access ultra low mortgage rates is a good thing. it's good for the economy, it's good fo

loans must be federally guaranteed from freddie mac orphan may. original loan must have been made before the end of may 200 2009. loan to value ratio must be greater than 80 percent. here's the sticking point. th theboroer must be current no. late payment in the past 6 month and only one late payment in the past year what percentage of people that you see have missed a payment or maybe missed a couple of payments? >> it's high. i would guess 80 or 90 percent. >>reporter: those folks wouldn't be able to qualify for the new program. the rub some went late in order to pressure the banks into renegotiating. now they are out of luck. on the other side, people who played by the rules and made the payments and stayed current then found out they could not refinance because the value of the home had fallen, they will be helped by this new program. this is 7 news. >>> more to get to here this monday on news at 9:00 as we continue. best seller maybe top certainly. coming up steve jobs biography on sale and readers around the bay area and world snapping them u

we on the vast majority of the loans financed through fannie mae and freddie mac. the bond loans. then you add the loans and guarantees that have been put in place over the years, and we have a stake, 75% of the loans in america. having known that, we already have a liability, let's figure how to restructure them, extend the term. instead of a 30-year mortgage, make it a 40-year mortgage. reduced interest payments from 7% down to 4%, give a break the bourse, and let them pay the principal. i believe that principle reduction is the most important thing. that has some other problems that come with it. moral hazards. what i would like to do is get americans who want to pay their mortgage to be able to achieve their goal. the responsible taxpayers and homeowners, pay their mortgage, pay their commitments down, just give them a little assistance. >host: is there anything preventing commercial banks from doing this restructuring? guest: they want to make money. one of the lobbyists was in the hallway the other day or the commercial banks and they told me they wanted to see my bill go aw

that's because this weekend, new rules went into effect to reduce the maximum loan size that fannie mae and freddie mac can guarantee. in several of the most expensive housing markets, they can only back loans of $625,000 or less. that's down from $730,000. also, many borrowers who were previously eligible to participate in federal housing administration programs will no longer qualify for special, lower downpayments. this is even before new rules potentially quick in requiring 20% downpayments so there are small incremental changes that could affect markets like ours. >> where is the help? >> yeah, right. exactly. >> wow. >> thank you, jess. >> community comes together to help some local families. that that were displaced by flooding. a. >> maryland family files a suit against the farm that is believed to be the source of the listeria outbreak. these sweet honey clustery things have fiber? fiber one. almost tastes like one of jack's cereals. uh, forgot jack's cereal. [ jack ] what's for breakfast? uh, try the number one! i've never heard of that. [ wife ] it's great. it's a sweet honey cereal, you'll

you know, fannie mae or freddie mac will be underwriting loans for homes that are worth half of the valuef what they loaned the money for. when those houses are sold, fannie mae and freddie mac will be on the hook which means we're going to be on the hook. likewise, he'll be loaning money to people who can't pay it back. >> yeah. and then who is left with the, you know, with holding the bag? that would be uncle sam which really is all of us. what's interesting about this new plan and the sad part for people is it doesn't sound like it really is going to kick in until next year, no income checks and no appraisals for the houses, that's crazy. >> we don't know how big the federal liability will be. they may be loaning somebody $500,000 on a house that's worth $400,000 or $300,000 or $200,000. there will be no way of tallying up. all we'll know is what the borrower says it might be worth on a loan application. likewise, no income checks, what if someone owes $300,000 and the family has an income of $80,000 a year and it was based on overtime and things of that nature and they lost it and ove

well, when a bank makes a loan to a borrower, it then typically takes to it fannie mae and freddie mac and say, can you buy this loan or guarantee it against losses for us? when it takes that loan to fannie and freddie, it says it has a certain set of characteristics, it's a safe and affordable loan for the borrower taking it on. if it doesn't meet those characteristics, when the loan defaults, they can take it back and say, you've got to eat this loss. that ability to push back those losses on the banks goes away under this new program. so we don't know how many loans going to be picked up by the program, we don't know how many of them were misrepresented. but there's clearly the potential for a significant amount of upside for big banks, in the way the program is structured. >> very quickly, why would any sitting president of the united states work -- i don't care who the president is, i don't care what the political party is, work in any way to help prevent honest liability for criminal -- potential criminal action? >> it is incomprehensibly disgraceful. it is a violation of the oat

ken's loan is held by the bank of new york and not by fannie mae or freddie mac. at a time when lower interest rates could save him $2,500 a year, he says the bank has blocked his request to refinance. >> basically they've said, we don't have program for you. i don't apparently fit into this program either. and that's my dilemma thus far is i keep running into a roadblock of this might help others, but it doesn't necessarily help me. >> reporter: and ken lalonde has a lot of company. while the administration could be helping as many as one million people with government-backed loans, estimates say there are seven million homeowners like ken lalonde, who are underwater on their bank loans, are up to date in their payments and who could benefit from lower interest rates. until the banks help refinance that larger group of homeowners, economist dean baker says the president's plan will have limited impact. >> it's difficult for president obama to do very much without help from congress. he can try to pressure the banks, but thus far at least that's not been very succ

. >> to qualify borrowers must have loans owned by fannie mae or freddie mac and be current on their payments. it is estimated 6 million americans still won't qualify for this plan. >>> new information tonight as to why michele bachman's entire new hampshire staff quit without notice. the staffers blame her national campaign staff. they called them in their words rude, unprofessional, dishonest and cruel and maintain they have been working without a paycheck since last month. tonight there has been no response from those still on bachmann's campaign. >>> the department of defense announced a new airman casualty. he died in a mon combat incident. miller is from washington. he was assigned to a security force squadron at andrews air force base. >>> a rescue this afternoon high above the streets of arlington. a crane operator was sick up there and couldn't get down on his own. a firefighter climbed up the crane to reach him. the operator was placed in a basket and lowered to the ground. the crane operator taken to a hospital for treatment when he got on the ground. >>> more comingp toni

loan under water? number one. number two, it's discretionary by the lenders. it's fannie mae and freddie mac is going to want to refinance a loan that's under water? it's unfortunately, although i embrace new things and i want it to work, i just don't think ultimately it's going to make a difference. >> steve: well, i know there are a lot of desperate people out there looking for answers and that's why we do this once a week. bob massly, thank you. >> all right, thank you. >> steve: meanwhile, a stunning confession from ruth madoff, bernie madoff's wife. >> i don't know whose idea it was, but we decided to kill ourselves. >> steve: oh, man. what they did next and why it obviously didn't work. then everybody is talking about this herman cain ad with his chief of staff smoking. so frank luntz put the ad to the luntzometer. the survey said? stick around. i needed more customers, so i got my nephew to build a website. i hired someone to make my website... five months ago. we are building a website by ourselves. [ woman announcing ] there's an easier way. create your own small-business site... wi

the average rate for a 30-year fixed loan is at 4.1%, according to freddie mac. and delaware is suing the mortgage electronic registration system, also known as "mers." it's an electronic registry of mortgages used by the banking industry. delaware accuses the firm of deceptive practices and wants $10,000 per violation. new york's attorney general has subpoenaed mers, looking for information about how five major mortgage companies are using the system. it was a big day of buying for stocks and commodities, while the dollar and u.s. bonds fell hard. here's tonight's "market focus." earnings, the economy and europe all conspired to push up stock prices. the breadth of the buying was significant. on the new york stock exchange, more than 1,800 stocks are at higher prices tonight compared to last night. only 117 fell today. on the nasdaq, more than 2,000 stocks were up, while 451 were down. the s&p 500 jumped 3.5%. putting today's jump on a 90- session chart shows just how far the market has come since the october 3 low. this index is up almost 17% since then. to ill

made bad choices and even the government that found a lot of these bad loans through government agencies with fannie mae and freddie mac, other agencies, it was partly because of this. hopefully out of this entire thing well, with some solutions on a federal basis that we can apply to this unfortunate situation and not have that happen again. commissioner miguel: during the past week, i have had conversations regarding america's cup. last night, there was an excellent reception for the tenth anniversary of city cars share, well attended. the main speaker was nancy pelosi, from the beginning, a very heavy supporter and a proponent of this concept particularly here in san francisco. there were three meetings at which members of the planning staff really showed. on the implementation of the eastern neighborhoods, they did a wonderful presentation on that. excellent for the department. there was the monthly meeting of the market street civic design group and i have to complement david that has been doing excellent work on this somewhat large committee of people who are sometimes very independent and no way that they worked

. >> it just depends on the loan, you have to have a freddie mac or fannie mac known if you have oneenefit. >>reporter: have you had any calls this a warning? >> not yet. i think until they hit the tvs and radios and then people start calling. they said the refinancing deals with federal loan will help out 1.6 million people nationwide. pam president obama is coming san francisco tomorrow at the w hotel. traffic will be affected by at all. we show you what you need to know to avoid the gridlock. >>reporter: at it is a good idea to avoid this part of the city tomorrow. any cars parked in the parlance if will be totally tomorrow morning. sf pieces that most of the streets in the town will be close for most of the day of the president is in town. police say that this is an area to avoid on tuesday. third street will be shut down from full from to mission. howard street will be blocked or from second sheet to first sheet. hawthorn will be shut down from howard to folsom. the president is scheduled to leave around 3:00 p.m. but the streets will be closed for some time after that to try an

that gets put into the marketplace for home loans, a huge percentage of that financing comes from the u.s. government, by virtue of fannie mae and freddie mac in defense of the taxpayer, there are certain representations and warranties and standards, effectively, that fannie mae and freddie mac require if they are going to purchase a pool of loans. there have been consistent, i guess they call them, dipstick tests, where you can kind of look inside of one of these blended securities to see whether, in fact, they are compliant with the government's standard to be sold to the government, so you can get government money, so you can keep making loans, and a remarkably large number of those warranties and representations anecdotally, in the dipstick tests, show a tremendous amount of loans that do not comply with government standards. and yet the government has been and continues to buy these securities. do you -- why is that? >> i can't answer that. i can't speak for fannie and freddie. i have a lot of questions of fannie and freddie. as you know, they own the bulk of -- they are the investors. well, they're wholly owned by the taxpayer of this

freddie mac puts average at 3.94 percent. keep in mind that's for conforming loan. not the jumbo loan that most people have in the bay area because prison office homes here. union pacific railroad is selling most of the land that it owner around the tesla motor factory in fremont. that's according to silicon valley business journal. >> railroad has 147 acres to sell. 2 third will remain on the market for 12 to 15 months. if it doesn't sell the company may build a railroad facility on the site. >>> more tech jobs silicon valley helped san jose luxury rental market. strong interest in santana row and 360 residences downtown. represent range from 1800 dollars to more than 11,000 dollars a month. >> national retail federation is expecting a two.8% indmraes holiday sales over last year. stores are likely to hire up to half mill workers during 2011 season. more in the edition of silicon valley business journal tomorrow. >> to sports. tiger. >> larry is here on that. he's unhappy. frustrating day for tiger woods here in the south bay. l spaeing of frustration. slow down th

freddie mac puts average at 3.94 percent. keep in mind that's for conforming loan.ot the jumbo loan that most people have in the bay area because prison office homes here. union pacific railroad is selling most of the land that it owner around the tesla motor factory in fremont. that's according to silicon valley business journal. >> railroad has 147 acres to sell. 2 third will remain on the market for 12 to 15 months. if it doesn't sell the company may build a railroad facility on the site. >>> more tech jobs silicon valley helped san jose luxury rental market. strong interest in santana row and 360 residences downtown. represent range from 1800 dollars to more than 11,000 dollars a month. >> national retail federation is expecting a two.8% indmraes holiday sales over last year. stores are likely to hire up to half mill workers during 2011 season. more in the edition of silicon valley business journal tomorrow. >> to sports. tiger. >> larry is here on that. he's unhappy. frustrating day for tiger woods here in the south bay. l spaeing of frustration. slow down the

it was a community reinvestment act that forced people into homes and fannie mae and freddie mac changed their loans of the toxic assets through other things. >> it was a couple bad things in a row. >> one to focus on one. they do not want to focus on the other. >> mike murphy has taken to drinking during the debatings and tweeting. we've compiled a few to give you the arc of the debate. mike's first tweet "perry looks like he's watching a tennis match." strangely perry seems to have one answer, oil and energy. on the nose. who did debate prep? >> third one. bubble, this fancy pants debating. >> the fourth one says mitt looks like he's watching these gails and hum hail to the chief in his head. >> the last one strong mitt, weak perry, good format, but charley wobbled. nobody saw it, nothing changes." >> let's go to andrea mitchell and the big news yesterday coming out of iran. andrea, that's going to create shockwaves in washington, d.c. >> it's creating shockwaves in reyaud, washington. they are calling the charges baseless, false allegations. they are claiming that they are outraged by it. the u.s

lars i've got to correct you, it's proximate plea 10 million american who have freddi freddie mac or fanny mae-backed loansthe bottom line is the bank says even if it takes us ten years to sell this house, even if we make five bucks more by keeping americans in their homes that's what they'll do. the president is encouraging those, like i was just a year and a half ago current to stay in their homes by having a retpaoeu or modification and the banks are not allowing that. if the president is easing up, i know i myself use that extra money as a consumer, not just pay down my debt. megyn: there is no question it's going to help some people and put more money in some people's pockets. the question is whether that is found fiscal policy. lars, you know what easy limb naturing now is appraisals, you can get it without a rigorous credit or income check. >> which is the way we got into that problem. >> i'm underwater in a mortgage i've got down in virginia. i got that mortgage because they did not do a rigorous credit or income check. i was not making any money. i couldn't afford the house that i got it. countryw