Mortgage Rate News

Pointing out that many of the government’s current steps to alleviate the current home mortgage crisis benefit mainly investment banks and other, instead of focusing on real help for ordinary Americans caught in the risk of foreclosure, Hillary Clinton offered her own home mortgage relief plan yesterday. The New York Times reports on what Clinton proposes:

…Mrs. Clinton endorsed federal legislation to expand the government’s ability to guarantee restructured mortgages, which she believes would lead more banks and other private entities to buy and resell mortgages.

And she said she would introduce legislation soon to provide mortgage servicers with protection from litigation when they modified mortgages; Mrs. Clinton asserted that some servicers stayed away from mortgage restructuring because they feared being sued by unhappy homeowners.

Hillary Clinton is offering this mortgage relief plan as part of her overall economic plan for the country. She also recommended that such economic heavy-hitters as Alan Greenspan be tapped to sit on an advisory committee.While some applauded the move, Barack Obama took aim at the idea. The New York Times reports that Obama thinks Clinton’s suggested advisers are not diverse enough in scope:

“One key difference, however, is the diversity and representation that Obama called for — not just some of the same people who helped to create these problems or have a direct financial industry stake in the outcome,” said Bill Burton, the Obama spokesman, referring to Mr. Rubin and Mr. Greenspan, who some critics have said was responsible for overseeing the spread of lax lending standards that caused the subprime crisis.

In any case, the main gist of it is that taxpayers will be further on the hook. After all, reasons Clinton, if taxpayers are the hook for the recent JPMorgan bailout of Bear Stearns, and other moves, they might as well pay for something for which some of them receive a direct benefit.

What do you think of Hillary Clinton’s economic mortgage relief plan?

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mortgage market crisis, mortgage relief plan, JPMorgan Bear Stearns