Hilary Clinton

•1.      Passage of proposed legislation that would set up an auction system to allow mortgage                                       companies to sell mortgages in bulk to banks and other buyers who would then restructure the loan to make them affordable for families.   

•2.      Formation of an Emergency Working Group comprised of financial experts to come up with ways to deal with the mortgage crisis.  As part of this plan, she would call for a moratorium on foreclosures and freeze rates on sub-prime adjustable rate mortgages for at least 5 years.

•3.      Proposes a $30 Billion housing stimulus package.  This money would go toward cities and states to convert distressed properties to sell to low income families or use for affordable rentals.  Used also for counseling and to help refinance home owners to avoid foreclosure.

Pass new legislation giving mortgage service companies ability to restructure loans without getting sued by investors.   

 John McCain

•1.      Does not approve of decreased down payment for FHA loans and as conditions allow, feels that we should increase down payment requirements.

•2.      Believes in mortgage reform with more easily understandable mortgage terms.

•3.      Wants stricter standards in the loan process.

•4.      In favor of allowing financial institutions to increase capital reserves to serve as a buffer against losses.

•5.      Would convene meetings with the nations top mortgage lenders to pledge "to provide support to their cash-strapped but credit worthy customers."

 Barack Obama

Create a $10 Billion Foreclosure Prevention Fund to help homeowners who face foreclosure by:  Increasing pre-foreclosure counseling, provide resources to FHA,         Freddie Mac and Fannie Mae to develop more flexible loans to help home owners    refinance, Partner with organizations and loan providers to ensure fair loan modifications                           

 to avoid BK and foreclosure.

2.   Repeal part of the 2005 BK bill which makes homeowners stick with the original terms of their loans after a Chapter 13 BK.  Currently investors and purchasers of vacation homes can renegotiate their terms.

 3.  In favor of a mortgage interest rate credit for those who do not itemize taxes.

4.  In favor of the STOP FRAUD ACT which combats mortgage fraud by increasing   

     penalties.

 5.  Wants HOME, which stands for Homeowner Obligation Made Explicit.  This new                           

        Disclosure (like the Truth in Lending disclosure) would standardize the scoring      system to to quantify a borrower's obligation

I got this information by reading articles posted in the NYT, CNN and from the individual candidate's websites.