Obama's and McCain's Housing Plans

With the national housing crisis poised to play a key role in the 2008 presidential elections, the Associated Press recently ran a helpful primer outlining the leading candidates'—John McCain and Barack Obama—positions on the issues:

From the Associated Press:

McCain:

_To be eligible for the FHA-insured mortgages, certain borrowers who live in their homes must prove creditworthiness at the time of the original loan and that they can meet the terms of a new 30-year fixed-rate mortgage.

_Separately, McCain wants the Justice Department to create a task force to investigate potential criminal wrongdoing in the mortgage industry.

Obama:

_To be eligible for FHA help, people do not have to have good credit to qualify as long as they can show they are able to afford the new payments.

_Separately, Obama would create a 10 percent mortgage credit for people who do not itemize their taxes.

_Supports changing bankruptcy laws so that homeowners going through that process can renegotiate terms of their mortgages—just as people or investors who own multiple homes or vacation homes can do.

_Would take steps to combat mortgage fraud and improve mortgage disclosure.