The Campaigns & Housing…

To follow-up on last week’s blog which addressed the soon to expire Mortgage Debt Relief Act and the need to extend it, this week I’m taking a look at all the housing-related issues facing both presidential candidates and their stances, as outlined in a piece featured on Bloomberg.com this past Wednesday.

In short, President Obama & Governor Romney have been vague and relatively silent on the issue.

The Obama administration has tried various routes, most of which have provided limited success, with very little assistance going to the average homeowner.  Simply put, the banks have too much power and without any teeth attached to the president’s housing policies, lenders have had limited incentive to comply.

Romney, on the other hand, initially believed in a strategy that would allow the market to correct itself by hitting rock bottom on it’s own.  Most would agree that this is hardly a good option – especially for those homeowners who have continued paying their mortgage on time, but still find themselves underwater and casualties – not causes – of the housing crisis.

Since then, Romney has changed his tune a bit.  Still, the only real difference between his new approach and the presidents would be to abolish the Department of Housing and Urban Development.

In a step to address the lack of focus on housing by the presidential candidates, a group by the name of The Opportunity Agenda (opportunityagenda.org) has composed an open letter to both candidates, titled: “The Home for Good Campaign calls on President Barack Obama and Governor Mitt Romney to offer concrete solutions to the housing crisis”.

Essentially, the letter requests clarity from the candidates on their plans for housing, as well as “bold action” to:

1. Stop needless foreclosures.

2. Expand affordable rental housing.

3. Revive a sustainable path to homeownership.

Further, the page offers a link to the Compact for HomeOpportunity, which outlines “What America Can Do to Stop Foreclosures and Fulfill the American Dream”.

Regardless of which way you vote, this is a serious topic that isn’t getting the attention it deserves.  Housing drives the economy and until we find a way to fix it, unemployment will remain high and real recovery will be difficult to accomplish.

For those who think the recovery is underway due to the recent increase in housing prices, don’t be fooled. Inventory is limited, due to banks delaying the release of foreclosed homes back into the market.  While the tactic might temporarily increase prices, it does nothing to assist those who lost their homes, or still stand to lose their homes, and is far from a long-term solution… 

You can read the full Bloomberg News article, here.