Democratic presidential candidates Monday shared new positions on home foreclosures.
Hilary Clinton supported legislation proposed by Democrats Rep. Barney Frank of Massachusetts and Senator Chris Dodd of Connecticut that would "expand the government's capacity to stand behind mortgages that are reworked on affordable terms."
But she said a bipartisan group should determine whether that approach was sufficient or whether the U.S. government should step in as a temporary purchaser.
Barack Obama, who had previously called for a similar approach, warned against having it weighted toward financial interests. Obama has been more conservative in calling for government help for the housing crisis and has criticized Clinton’s call to freeze interest rates on adjustable-rate mortgages.
Here’s where both candidates stand on the issue:
Hillary Clinton proposals
- Freeze foreclosures for 90 days;
- Freeze interest-rate resets on subprime mortgages for five years;
- Create a $30 billion fund for states and cities to purchase foreclosed properties;
- Expand the Mortgage Revenue Bond Program by $10 billion;
- Allow the Federal Housing Administration to guarantee more mortgages;
- Temporarily hold “underwater” mortgages on the government’s balance sheet;
- Protect mortgage originators against lawsuits for restructuring loan terms.
Barack Obama Proposals
- Simply the tax code to allow more families to claim a mortgage income tax credit;
- Allow the FHA to guarantee more mortgages;
- Enact stiffer penalties against predatory lending;
- Cut taxes on middle-class households;
- Expand the Mortgage Revenue Bond Program by $10 billion.
Source: Reuters News, Jeff Mason and The Wall Street Journal, Amy Chozick and Nick Timiraos (03/24/08)
Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
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