Consumer Law

What Would Senators McCain, Clinton and Obama Do?

By Alan White

In a speech delivered today in Orange County California (ground zero for many subprime lenders as well as foreclosed homes) Senator McCain offered some details of his plan to deal with the foreclosure crisis. Rather than spin the speech, I commend the original text to the reader's attention. One proposal that struck me was his call to increase the down payment requirements for FHA mortgages. I understand the sentiment, but in the absence of a national savings policy, it is hard to see how that would increase homeownership. It would also run contrary to current FHA efforts to offer refinancing loans to homeowners now facing foreclosures, who have little or no equity. He does not rule out government aid to mortgage defaulters, although he wants to be selective about any such program. Senator Clinton's speech on the housing crisis yesterday in Philadelphia is available here. Senator Obama has not given a speech on the housing crisis recently. His last speech on the economy on his web site is here but it is short on specifics. His issue paper offers tax subsidies for homeowners, better disclosure, a rescue fund of unspecified amount for foreclosure victims and support for the bankruptcy legislation to permit limited loan term modifications.

Full post as published by CL&P Blog on March 25, 2008 (boomark / email).