Presidential Candidates Have Different Takes on Housing Issues

The subprime mortgage crisis has hit this country hard, and the two potential nominees for the Democratic candidate for President have taken notice. This has become evident in recent debates between the two candidates as key primaries in Texas and Ohio approach.

Housing Crisis Gets Center Stage

Ohio, in particular, has been badly victimized by housing market issues, which is one of the reasons that the candidates are accentuating the current crisis at this time. Hillary Clinton hopes to attract Ohio voters struggling with mortgages by offering a helping hand from the Federal government.

Senator Clinton’s Approach to the Housing Crisis

Senator Clinton has proposed a 90-day moratorium on foreclosing on subprime defaulters. She is also interested in freezing ARM (adjustable rate mortgage) interest rates for five years or more for first homes. This plan, in her view, will give these borrowers the time they need to recover from poor mortgage planning and put them back on track towards successful home ownership. While the current administration has advanced some freezing of rates as a way to pull out of the crisis, Senator Clinton does not feel that they have gone far enough in this regard.

Senator Obama’s Approach to the Housing Crisis

Senator Obama is taking a stand and proving that he has very different ideas than his opponent. He has called Clinton’s plan disastrous and promotes an entirely different approach.

Senator Obama wants to attack what he perceives is the root of the problem, the predatory lenders who sold these subprime mortgages in the first place. By putting an end to subprime lending practices, Obama intends to defeat the disease rather than just treating the symptoms. That being said, Obama does believe in tax credits to help homeowners who are fighting to meet their mortgage payments.

Both Candidates Ready to Provide Government Aid

Both candidates do believe in some level of government intervention. Senator Obama proposes a $10 billion fund that borrowers could use to prevent foreclosure or to buy their first home. Senator Clinton wants to see more government sponsored mortgages that borrowers could use to refinance current mortgage loans that they cannot afford.