HOUSING CRISIS: OBAMA AND ROMNEY RESPOND

2 Feb

Submitted by M. D. / Author Unknown

TWO APPROACHES TO THE HOUSING CRISIS

February 1, 2012

Over the last two days, President Obama and Governor Romney have each described their plans to address the housing crisis. Failing to address this crisis means that 10 million families are at risk of losing their homes to foreclosure, driving down home prices, deepening the housing crisis and delaying full economic recovery.  So how do the two plans stack up?

 

OBAMA

ROMNEY

PHILOSOPHY “While government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief.” [Remarks by President Obama in State of the Union Address, 1/24/12] “But the idea of trying to stop the foreclosure process kept it from occurring, kept the market from bottoming and recovering. You have to let the market work and let home values recover as a result of that.” [CNN,1/31/12]

“Don’t try to stop the foreclosure process.  Let it run its course and hit the bottom.” [Huffington Post,10/18/11]

REFINANCING Sent to Congress a broad refinancing plan that would let responsible homeowners save an average of $3,000 per year. No proposal.
HOMEOWNER BILL OF RIGHTS Proposed a single set of rules for borrowers and lenders, including simple and full disclosures and prevention of conflicts of interest and inappropriate foreclosures. No proposal.
UNEMPLOYED HOMEOWNERS Ensured the unemployed homeowners participating in the FHA and HAMP programs could receive at least a year of forbearance.

Major banks, Fannie Mae, and Freddie Mac have now followed the president’s lead and adopted the same policy.

No proposal.
PUNISHING FRAUD Formed a joint task force with states and federal investigators from the Dept of Justice, the Dept of Housing and Urban Development, and the Securities and Exchange Commission. No proposal.
ADDITIONAL STEPS Expanded eligibility for HAMP mortgage modifications to reduce foreclosures.

Increased incentives for lenders to modify loans and help borrowers rebuild equity.

Rehabilitating neighborhoods through Project Rebuild.

No proposal.

 

 

 

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