Housing: Where Do Obama and McCain Stand?

Wondering where Barack Obama and John McCain stand on the controversial housing meltdown issues?

Obama wants the government to step in to help homeowners facing foreclosure. McCain has gradually broadened his position to support government intervention, but wants stricter requirements for borrowers seeking aid.

Obama supports:

Allowing troubled homeowners to refinance to a loan insured by the Federal Housing Administration.
Allowing subprime borrowers to challenge foreclosure proceedings if they’ve been subjected to abusive lending practices.
Creating a 10% tax credit for homeowners who do not itemize their taxes.
Creating a $10 billion fund to help victims of predatory loans.
Creating a separate $10 billion fund to help state and local governments maintain critical infrastructure.
Authorizing bankruptcy judges to reduce mortgage principal.

McCain supports:

Giving homeowners the chance to have their loan modified, provided they meet certain criteria.
Offering of financial assistance to borrowers contingent upon lending reform.
Providing more funding for community development groups so they can expand their home rescue efforts.

Both candidates say they want to go after predatory lenders. Obama introduced the STOP FRAUD Act in the Senate and now it’s a part of his platform. McCain called for creating a task force to investigate criminal wrongdoing in the mortgage lending and securitization industry.