Bankruptcy

What are the Presidential Candidates' Proposals for Resolving the Subprime Mortgage Crisis?

By J. Michael McBride

Here is a snapshot of the Presidential Candidates' views on the mortgage crisis. The views were compiled by Bankrate.com and summarized in the following ABI article: http://www.abiworld.org/e-news/02-05-08.html

Clinton: Proposes cracking down on mortgage brokers, eliminating payment penalties, requiring mortgage lenders to include the cost of taxes and insurance in high-risk mortgages, and establishing a fund to help at-risk borrowers avoid foreclosure.

Obama: Proposes eliminating the bankruptcy provision under chapter 13 that prevents bankruptcy courts from modifying an individual's mortgage, creating a loan fund to help homeowners avoid foreclosure, and has introduced S 1222, the STOP FRAUD Act, to provide a federal definition of mortgage fraud.

McCain: Would consider additional government aid, but normally opposes government involvement. Proposes improving the licensing standards of mortgage brokers and modernizing the FHA.

Romney: Supports the Bush relief effort. Opposes a federal bailout, but supports expanding the FHA to allow borrowers to refinance.

Huckabee: Supports freezing interest rates and further negotiations on the "Hope Now" program, but opposes a federal bailout.

You can peruse Bankrate.com's interactive comparison of the presidential candidates on other issues at:
http://bankrate.com/brm/news/pf/20080128_candidates_issues_compare_a1.asp

Chandra

Full post as published by Texas Lawyer Blog on February 06, 2008 (boomark / email).