Foreclosures Makes Democrats Point The Accusing Finger

August 10th, 2007 | Tags: Foreclosures

As foreclosures clouds intensify Democrats see their sun shining. For them it is time to make hay as they hold their opponents the Republicans, responsible for giving a freehand to rapacious lenders. The victims have been industrious middle class families who are finding themselves with nothing but the sky above their heads.

Senator Hillary spoke out for banning fees that punish before-time repayments and creation of a fund to help the victims. She is talking of a $1 million fund to help. Today with Bush at the helm the ownership society is a yo-yo one with one side going up and another coming down with the string pulling of another. Many agreed with Clinton for squarely blaming the sub-prime market for the present woes. Clinton is keen that lenders take into account taxes and insurance in their calculations and then see if the loan is affordable for the borrower. Her action plan includes toning up licensing system and making it compulsory to publish an online registry of the history of the brokers and listing complaints against them. Clinton hopes to introduce the legislation the following Labour Day.

Former senator John Edwards has made a strident call for putting a stop to various types of controversial lending like balloon loans wherein interest rates get bloated after some time. Edwards wants to change bankruptcy laws and make a fund for the sole purpose of helping owners free themselves from ‘underwater’ mortgages that are so gross that the mortgage has become more swollen than the value of the property. Edwards opines that Clinton is not strong enough as his own.

Democratic Senator Obama introduced a new bill that would impose fines on mortgage professionals who were found guilty of scam. Simultaneously counseling was being offered to victimized house owners. Senator Dodd who is chairperson of the Senate Banking Committee is also involved in tackling the problem since 2000.

The Democrats are cashing in on the economic failures of the Bush administration and its laissez faire policy.

The general feeling is that foreclosure is just one of the symptoms of the economic malaise. Property taxes are so high, outsourcing is causing unemployment and rising mortgage is spelling doom to many.

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