What is Barack Obamas Answer For Housing Troubles

If you are like me, you take local, state and federal elections very seriously. I like to know what each candidate plans to do about those issues that affect my family, my business and my community. I try to avoid all the adds on television and radio, because most of the time those are 90% rhetoric and 10% spin. Instead I like to actually talk with the candidate if possible or check out their website to get my news and information. This week, the nations top Democrats met in Denver at the Democratic National Convention. Tomorrow night Senator Barack Obama will be officially selected as their party's Presidential Candidate along with Senator Joe Biden as his running mate. So I thought I would ask what President Obama would due to improve our country's current housing situation. After spending some time on his website, www.barackobama.com , I was able to find his official platform on the current crises. I took the liberty of placing it here for you to review.

Protect Homeownership and Crack Down on Mortgage Fraud

Obama will crack down on fraudulent brokers and lenders. He will also make sure homebuyers have honest and complete information about their mortgage options, and he will give a tax credit to all middle-class homeowners.

Create a New FHA Housing Security Program: Barack Obama strongly supports the efforts of Senate Banking Committee Chair Chris Dodd (D–CT) to create a new Federal Housing Administration (FHA) program that will provide meaningful incentives for lenders to buy or refinance existing mortgages and convert them into stable 30-year fixed mortgages. This plan provides an important federal backstop – not a bailout – to this growing national problem. Neither lenders nor homeowners would receive a windfall from this plan.

Create a Universal Mortgage Credit: Obama will create a 10 percent universal mortgage credit to provide homeowners who do not itemize tax relief. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year.

Ensure More Accountability in the Subprime Mortgage Industry: Obama has been closely monitoring the subprime mortgage situation for years, and introduced comprehensive legislation over a year ago to fight mortgage fraud and protect consumers against abusive lending practices. Obama's STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for federal and state law enforcement programs, creates new criminal penalties for mortgage professionals found guilty of fraud, and requires industry insiders to report suspicious activity.

Mandate Accurate Loan Disclosure: Obama will create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric (similar to APR) for home mortgages. The HOME score will allow individuals to easily compare various mortgage products and understand the full cost of the loan.

Create Fund to Help Homeowners Avoid Foreclosures: Obama will create a fund to help people refinance their mortgages and provide comprehensive supports to innocent homeowners. The fund will be partially paid for by Obama's increased penalties on lenders who act irresponsibly and commit fraud.

Close Bankruptcy Loophole for Mortgage Companies: Obama will work to eliminate the provision that prevents bankruptcy courts from modifying an individual's mortgage payments. Obama believes that the subprime mortgage industry, which has engaged in dangerous and sometimes unscrupulous business practices, should not be shielded by outdated federal law.

The above information was taken directly from Senator Obama's official website. The housing market is a fundamental indicator of our nations overall economic health. It remains to be seen whether these programs and plans will help our current housing economy. For more information about Senator Obama please visit his website... www.BarackObama.com Next week I will highlight Senator McCains position on the same subject, during the Republican National Convention which is being held in St. Paul Minnesota.