Ben Carson confuses a term for excluded homes with OREO cookies during a congress hearing – and tries to clean up the mess by sending a legislator a package Double Stuf
- Carson is Trumps housing secretary but did not know what a & # 39; REO & # 39; house is during a conference session on Tuesday
- An REO is real estate that a lender owns after foreclosure if it cannot sell the property at an auction
- The federal government owns tens of thousands of them because the Federal Housing Administration guarantees loans for under-qualified borrowers
- Carson heard a question about REO's and thought he was being asked about Oreo cookies
- After a lecture from a congressman, Carson sent her a package with the Double Stuf cookies with a note
- She told CNN that she would rather have answers instead of Oreos
Ben Carson, Minister of Housing and Urban Development, attended a conference demonstration on Tuesday when he was a & # 39; REO & # 39; – prevented a real estate in real estate – considered an Oreo cookie.
Carson, a world-famous pediatric surgeon before running for the president in 2016 and accepting a Trump board position, was confronted with questions for the Domestic Financial Services Commission.
Californian Democratic representative Katie Porter asked him if he knew what a REO is.
& # 39; An Oreo? & # 39; he answered.
& # 39; No, no Oreo. An R.E.O., & # 39; Porter gave a lecture.
Housing and Urban Development Minister Ben Carson became confused during a monitoring session of the House Financial Services Committee on Tuesday when he heard a question about & # 39; REO & # 39; mortgage guards and thought he instead & # 39; Oreos & # 39; heard
California Democratic Rep. Katie Porter, a former California government mortgage company supervisor, had to explain to Carson that REO & # 39; s are protected properties that lenders eventually own because they fail to attract buyers at an auction.
Carson tried to clear his way out of the blunder by tweeting that he would send Porter some Oreo cookies
Carson correctly suspected that the & # 39; R & # 39; and & # 39; E & # 39; stood for & # 39; real estate & # 39 ;. But he thought the & # 39; O & # 39; stood for & # 39; e-organization & # 39 ;.
An REO is a property that a bank or other lender has after the foreclosure procedure has ended but has not sold at an auction. If the Federal Housing Administration has guaranteed an overdue loan, the US government will receive the title.
Porter wanted information about why FHA loans are likely to end up as REO rather than as Freddie Mac and Fannie Mae mortgages.
Many private lenders prefer mortgage payments or pursue other alternatives to execution rather than conquering real estate and selling it to recoup the costs.
Carson tweeted these two photos, including a handwritten note to the congresswoman, thanked her for her part in the hearing and offered her a package & # 39; O-REO (s) & # 39; to
Carson ridiculed his inexperience with the basic principles of mortgage settlement procedures after the hearing with a tweeted photo of an Oreos package.
& # 39; OH, REO! Thank you, @RepKatiePorter, & he tweeted. & # 39; Enjoying a few hearings after hearing. You can send something! & # 39;
Together with a package of Double Stuf Oreo cookies, the attached photo showed Porter a handwritten note.
& # 39; Thank you for your part in today's hearing & # 39 ;, it said in the book. & # 39; I hope you enjoy the O & # 39; REO (s). & # 39;
When Porter questioned Carson during Tuesday's hearing, he offered to connect her with HUD experts on home foreclosure.
& # 39; Sincerely, that was my job before I came to the convention, & # 39; she answered, & now it's my job to ask you to work with people. I have worked with the people at HUD on this problem for a decade. & # 39;
She told CNN hours later in an interview that Carson's cookies had arrived at her office.
The Federal Housing Administration ends up in the possession of tens of thousands of foreclosed homes every year because no one will offer a pre-set minimum price for them in auctions
& # 39; He actually sent a family box from Double Stuf Oreos to our office & # 39 ;, Porter said.
& # 39; And although I was happy to receive correspondence from him, what I am really looking for is answers. & # 39;
HUD & # 39; s annual report it appears to Congress from fiscal year 2018 that almost 32 percent of the real estate that the agency had disposed of consisted of REO properties. That number was even higher, more than 42 percent, a year earlier.
Last year the HUD held on to 23,765 REO & # 39; s. That number amounted to 111,282 in 2013, at the height of the housing crisis.
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