Housing Director confirms administration working on a 50-year mortgage after Trump hint.

Oh, my God.

50-year mortgage?

Yes, 50-year mortgage.

What would it look like?

Go ahead, Rob.

Trying to find an answer on affordability for housing, which right now we're seeing one of the worst housing markets that we've seen in recent

times. And so the 50-year mortgage is a play to lower people's monthly mortgage payments,

but the downside is, especially early on, all of that payment will be going to interest. And of

course, since you're paying over 50 years and not over 30 years, you're going to be paying off

that mortgage for a lot longer. So the details are still to be worked out, but it looks to be like the president's looking for a quick fix to a market that is fundamentally broken right now. Okay, so this guy's a Democrat, right? Because you see the back, in the back, if you're zooming in the books, you'll see the new deal. Go back a little bit. Right. Do you see it to the left?

He's got the new deal. You can always sell what books they're reading. Okay. Crash. Do you know, do you know while this guy's saying this? It's so funny. Do you know who came up with the 30-year mortgage? Who? Do you know who came up with the 30-year mortgage? I want you to think about, can you right there, Rob.

Can you, can you pull that up?

Here's who came out with the 30-year mortgage.

FTR?

Yeah, FDR came up with the 30-year mortgage. So did you say the same thing back in a day's fellow? I don't know what your name is, but, you know, well-spoken guy a minute ago? Crashed. So he did 30 years. Trump's going to 50 years. By the way, Tom, the question is, if you're a bank,

if you're a bank, would you get into the 50-year business game? Would we do that knowing

you're collecting the interests up front? Would you entertain the 30 versus 50? Because how do you

set it up? You still have to find a way to make it profitable for the banks, right?

Right. So the bank has to get their money or else there's no incentive for them to want to sell this loan. Okay? What would be the incentive for banks to sell 50-year loans? Well, as long as they felt that the underlying asset wasn't going to drop. Now, so here's what the bank has to do. Your house is a collateral. You stop paying, Vinnie. I'm going to take your house. I'm going to sell it to the next guy. That's what a bank will do. We'll auction it. He'll auction it off. Now then, what it means, Pat, is the first 10 years of that 50-year loan, the bank has to underwrite it and be comfortable that that house won't decline in value.

You follow that?

Because not much will be paid off in 10 years, Pat.

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