Presidential Candidates on Foreclosure
It's official: the economy has replaced Iraq as voters' number one concern for the 2008 election season, according to research published in Fortune magazine. This means that the candidates are getting serious about pitching their plans for the economy and addressing pressing issues like the foreclosure crisis.
In case you're still not sure of your favorite candidate or rather curious about what could be in store for the United States during the next four years, here's a breakdown of what the major candidates plan to do about the soaring foreclosure rates across the country.
Hillary Clinton (D): Clinton's aggressive foreclosure prevention and correction plan includes several features. To relieve the short-term stresses of foreclosure, Clinton has proposed a 90-day moratorium on all foreclosure actions, meaning that no company could foreclose on a home during that time.
In the medium-long term, Clinton would supplement the initial moratorium with a five-year freeze on interest rate resets. This measure would, in theory, allow borrowers adequate time to refinance their mortgage loans and/or save up enough money to make payments when their rates began resetting.
In the long term, Clinton plans to devote $1 billion to foreclosure-prevention measures and instigate legislation to prevent future mortgage fraud.
Barack Obama (D): Obama's plan is the only one among democratic candidates (including the recently-exited Edwards) that does not include a foreclosure moratorium or rate freeze. Instead, Obama has proposed a $10 billion foreclosure-prevention fund that would focus on both lenders and borrowers, according to the San Francisco Gate.
Sources note that, though Obama supported mortgage fraud legislation while in the Senate, he hasn't taken much further action to address foreclosures.
John McCain (R): In a recent interview in California, one of the states hardest-hit by the foreclosure crisis, McCain called for greater transparency in the lending process. Specifically, he suggested one-page mortgage agreements with clear language affirming the borrower's understanding of the loan's terms.
McCain even went so far as to tag Wall Street lenders and investors who facilitated the subprime lending mess and thus the foreclosure crisis as 'greedy' and deserving of punishment. He has noted that the current efforts of the Bush administration are steps in the right direction and acknowledged that more government help will likely be needed if the economy continues in the direction it's headed.
Mitt Romney (R): Romney's main proposal to address the issue of foreclosure rests on federally-backed mortgage loans. He proposes lowering the down payments required by such loans and raising the amount federal institutions are able to lend.
Though the Bush administration has reportedly already increased the maximum of federally-backed mortgages, that measure is currently only temporary.
Romney has also emphasized his background in business, hoping to promote himself as a candidate with strong economic credentials, and a good leader for a nation with a flagging economy.
Mike Huckabee (R): The Detroit Free Press reports that Huckabee plans to facilitate negotiations with subprime lenders in hopes of preventing foreclosures.
Unless serious changes take place nationally or on the global stage in the next several months, the economy will continue to be a hot topic for debate and controversy among presidential candidates. Visit Foreclosure-Fighter frequently for updates about the candidates' views on this issue and others related to the economy.