Daily Real Estate News | August 23, 2007

Presidential Hopefuls Weigh In on Credit Crunch

What to do about the credit crunch? How to deal with the lackluster housing market? Those are two hot questions for presidential candidates.

Here’s what the candidates have said about the issue of housing and mortgage credit:

Democrats

• Sen. Joseph R. Biden Jr. seeks hedge fund transparency.
• Sen. Hillary Rodham Clinton (N.Y.) urges more “truth in lending” such as plain-talk, no fine-print disclosures for new home owners.
• Sen. Christopher J. Dodd (Conn.) advocates an end to prepayment penalties and extension of Fannie Mae and Freddie Mac’s role.
• Former senator John Edwards (N.C.) wants to change the bankruptcy laws to allow filers to shed mortgage debt.
• Sen. Barack Obama (Ill.) seeks a federal fund to bail out home owners in foreclosure. The money would come from penalties invoked upon irresponsible lenders.

Republicans

• Former New York mayor Rudolph W. Giuliani doesn’t support government intervention, but does think there should be more transparency in the process.
• Sen. John McCain (Ariz.) suggests more education and some help for those who are in foreclosure because they were misled.
• Former Mass. Gov. Mitt Romney believes the government should simplify the mortgage process, ensure strong oversight and punish those who are “bad actors.”

Source: The Washington Post, Jeffrey H. Birnhaum (08/23/2007)