HOMEOWNERSHIP
Barack Obama has said:
“We should be cracking down on banks that engage in reckless lending, and helping borrowers who played by the rules in a game that was rigged against them.”
—February 19, 2008 Roundtable, San Antonio
The Obama website (http://www.barackobama.com) states:
Obama will:
· Crack down on fraudulent brokers and lenders
· Make sure homebuyers have honest and complete information about their mortgage options.
· Give a tax credit to all middle-class homeowners.
· Create a 10 percent universal mortgage credit to provide homeowners who do not itemize tax relief. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year.
· Ensure more accountability in the subprime mortgage industry. Obama has been closely monitoring the subprime mortgage situation for years, and introduced comprehensive legislation over a year ago to fight mortgage fraud and protect consumers against abusive lending practices. Obama’s STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for federal and state law enforcement programs, creates new criminal penalties for mortgage professionals found guilty of fraud, and requires industry insiders to report suspicious activity.
· Create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric (similar to APR) for home mortgages. The HOME score will allow individuals to easily compare various mortgage products and understand the full cost of the loan.
—Issues: Economy: Protect Homeownership
The Democratic National Committee (DNC) Platform (http://www.democrats.org/a/party/platform.html) states:
The DNC will:
· Ensure that the foreclosure prevention program enacted by Congress (The American Housing Rescue and Foreclosure Prevention Act 2008) is implemented quickly and effectively so that at-risk homeowners can get help and hopefully stay in their homes.
· Work to reform bankruptcy laws to restore balance between lender and homeowner rights.
· Crack down on fraudulent brokers and lenders and invest in financial literacy.
· Pass a Homebuyers Bill of Rights, which will include establishing new lending standards to ensure that loans are affordable and fair, provide adequate remedies to make sure the standards are met, and ensure that homeowners have accurate and complete information about their mortgage options.
· Implement the newly created Affordable Housing Trust Fund to ensure that it can start to support the development and preservation of affordable housing in mixed-income neighborhoods, restore cuts to public housing operating subsidies, and fully fund the Community Development Block Grant program.
· Work with local jurisdictions on the problem of vacant and abandoned housing.
· Work to end housing discrimination and to ensure equal housing opportunity.
· Combat homelessness and target homelessness among veterans in particular by expanding proven programs and launching innovative preventive services.
—Page 25
John McCain has said:
“[My HOME Plan] offers every deserving American family or homeowner the opportunity to trade a burdensome mortgage for a manageable loan that reflects the market value of their home. People decide if they need help, they apply for assistance and, if approved, the government under my HOME Program supports them in getting a new mortgage that they can afford.”
“If there were individuals or firms that defrauded innocent homeowners or forged loan application documents, then the punishments of the market are not enough, and they must answer for their conduct in a court of law.”
—April 10, 2008 CNNMoney.com
The McCain website (http://www.johnmccain.com/) states:
Under the HOME Plan, certain homeowners will be given the chance to trade a burdensome mortgage for a manageable loan that reflects their home’s market value.
Eligibility requirements:
Holders of a sub-prime mortgage taken after 2005 who:
· live in their home (primary residence only);
· can prove creditworthiness at the time of the original loan;
· are delinquent, in arrears on payments, facing a reset, or can show they will be unable to continue to meet their mortgage obligations; and
· can meet the terms of a new 30-year fixed-rate mortgage on the existing home.
McCain also will support groups like Neighborworks America that provide mortgage assistance to homeowners in their communities.
—Issues: Economic Plan: Helping Families: HOME Plan
The Republican National Committee (RNC) Platform (http://www.gop.com/2008Platform/) states:
The RNC supports timely and carefully targeted aid to those hurt by the housing crisis so affected individuals can have a chance to trade a burdensome mortgage for a manageable loan that reflects their home’s market value.
The RNC does not support government action that encourages anyone to borrow more than they can afford to repay.
The RNC supports federal investigation and prosecution of criminal wrongdoing in the mortgage industry and investment sector.
The RNC encourages potential buyers to educate themselves about the responsibilities of purchasing property.
The RNC supports making home ownership more accessible through enforcement of:
· open housing laws
· voucher programs
· urban homesteading
· low interest rates
The RNC supports a tax system that continues to encourage home ownership.
The RNC supports a sound housing policy that also recognizes the needs of renters.
—Section on Economy (http://www.gop.com/2008Platform/Economy.htm#6)
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