Sorry for the hiatus. It’s been a crazy week. But I’m ready to pick up from McCain v. Obama health care edition and move on to today’s topic: the housing market crisis.
One of the questions that many voters are concerned about what the presidential candidates plan to do about the housing market crisis. Interestingly, there is not a lot of difference between what the two of them propose. Both agree that that the FHA should be able to back risky loans in the refinance process. Also, both agree with plans to allow the government to have equity in the homes that have been written down and refinanced by the FHA. This way, when the home sells, the government gets a cut.
Here are two of the key differences:
- John McCain is touting the formation of a task force to investigate predatory lending and crimes related to the mortgage backed security craze.
- Barack Obama advocates setting up a foreclosure fund of $10 billion to help distressed homeowners sell their homes or modify their terms.
Of course, the thing that has me annoyed is that neither suggests rewarding homeowners who have made responsible decisions. I got a traditional home loan that I could afford. Interest rates have dropped 0.5% since I got my home loan. But no one’s going to help me get a refinance to that lower rate.
I think this is where some of the rage that some people are feeling toward foreclosure help is coming in. Helping those who were basically scammed through misleading practices is one thing. But rewarding someone who made a poor decision is quite another, and that has a lot of people riled up.
But, honestly, on this one, there is really not a lot, in terms of what can be done practically, between the views of the two presidential candidates. And, at any rate, things are already in motion from Congress, and by the time either can do something about it (other than vote in the Senate) the whole issue will be anti-climatic and may even be moot.