THE CHIP LAKE BLOG

Hillary Clinton Makes Mortgage Industry a Campaign Issue 

Hillary Clinton, a U.S. Senator and 2008 Presidential candidate, told a crowd on the campaign trail that she supports tougher loan standards and more easily understandable mortgage documents, as well as a better loan counseling and a grace period for those that fall behind in their payments.


The Senator from New York spoke about the need to better guide borrowers though the complex home loan process at every stage before and after the closing of the loan.

The appearance of the mortgage industry in Clinton’s campaign speech serves as an indication of how widespread the issues of foreclosures and predatory lending have become in the public realm.

Clinton suggested that the subject of homeownership has become a national issue.
"Homeownership is such an important part of people's savings. It's the biggest asset people own. It is the key part of the American dream," said Clinton.

"The loans need to be legitimate so people aren't strung out."

Although Clinton came out in favor of stricter loan standards for mortgage underwriting, she did not specifically propose tougher regulations to enforce those standards at the campaign stop.

She suggested that borrowers should be provided with access to counseling and unbiased advice on lenders, loan types, and refinancing options.

Clinton further recommended that home loan documents should be written in plain language that can be easily understood.

"We need clear, easily understood language in all these documents," said Clinton. "Enough with the confusion and complexity."

For borrowers that fall into a financial crisis such as unemployment and a health emergency, Clinton proposed allowing a temporary grace period to avoid delinquencies and foreclosures.

A woman in the audience tearfully spoke of her experience with refinancing after financial crisis in 2003, only to have her monthly payment jump from $850 to $1,200 and cause her to move out of her long-time home. She is now paying rent.


Posted on Tuesday, April 03, 2007 by staff of "The Mortgage Ledger"

MortgageLedger  [NewsAlert@mortgageledger.com]