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October 19, 2012

Romney Mortgage Plan and Vision for Fixing US Housing Sector

Category: Mortgage Relief News,Published Articles – admin – 2:57 pm

Last week Mitt Romney published a report that outlines his plan for the housing sector and his indictment on Obama’s failures in the real estate and mortgage industries over the last four years. Romney recently committed to not repealing the mortgage interest deduction for American homeowners even though his critics have accused him of this. This article is important because it underscores Romney’s vision for solving problems with the Home Affordable Refinance Program and the other government sponsored measures for Americans that are stuck with underwater mortgages. The National Mortgage News posted the following Romney article below online.

The housing crisis has taken an immense toll on the economy, and the impact has been devastating for millions of American families. Since 2009, 8.5 million foreclosure notices have been sent to U.S. homeowners, the average home has lost $13,000 in value, and eleven million borrowers are “underwater,” owing more on their home loans than their homes are now worth. Although there have been some recent signs of life in the housing market, our economy remains stuck in neutral with 23 million Americans struggling to find work, persistently high unemployment that has stayed above 8% for a record 43 consecutive months, and real household incomes falling more than $4,000 over the past four years. The weakness of the recovery has left many in America struggling to make ends meet, pay their bills, or stay current on their mortgage payments. Over 3 million households are currently in the foreclosure process or seriously late on their home loan payment.

Over the past four years, the Obama administration has never offered a clear vision for the future of housing finance policy. At best, the president’s policy response to the housing crisis can be described as confused and reactive. Early in his term, the president stated, according to Washington Post reporter Bob Woodward that “we will not roll out an aggressive plan for under water mortgage refinancing,” and it was not included in his 2009 stimulus. After the president reversed course and did roll out a mortgage relief plan, what followed was a series of confusing new government programs with names like HAMP, HARP, 2MP, H2H and EHLP. Unfortunately these alternative refinance programs have been poorly administered with constantly changing terms and overstated goals that have never been met. In the case of one program, when the goals were not being met the administration’s solution was to expand it, creating HARP 2.0. In his State of the Union Address this year—nearly three years after the program was first launched—the president proposed expanding the program further. While Wall Street needs effective regulation, the president’s solution was the Dodd-Frank Act. The 2,319-page law has produced more than 9,000 pages of new regulations to date, and regulators are only one-third of the way done.  Read the entire article at the National Mortgage News website.

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