Nightly News   |  October 24, 2011

Foreclosure plan ignores six million borrowers

President Obama’s new foreclosure plan will assist a limited number of U.S. homeowners underwater, yet does nothing to address the six million borrowers who are behind on their payments or are in foreclosure. CNBC’s Diana Olick explains.

Share This:

This content comes from a Full-Text Transcript of the program.

BRIAN WILLIAMS, anchor: We're joined now by CNBC 's Diana Olick . And, Diana , you cover the housing market pretty much full time. What are people to make of all of this today?

DIANA OLICK reporting: Well, what they're finding really, Brian , is that this is a very limited program targeting certain underwater borrowers who were previously unable to take advantage of today's record low mortgage rates because they simply owed so much more on their mortgages than their homes were worth. This will certainly help those borrowers, but, again, it's limited and those borrowers must be current on their payments. They may be struggling, maybe on the edge, maybe even thinking of walking away. So that will help. But they must be current. This does nothing to help the borrowers, the four million borrowers who are currently behind on their mortgages, the two million borrowers who are already in the process of foreclosure. It does not address the millions of foreclosed properties on the books of Fannie , Freddie , the FHA , the big banks that are flooding onto an already depressed housing market . It doesn't help anybody buy or sell a home. And most important, it does not restore consumer confidence in housing because it doesn't put a bottom on home prices. Brian :

WILLIAMS: A bit of a reality check on all of this tonight from Diana Olick , CNBC .