Senators Make The Foreclosure Crisis And Sub-prime Lending Mainstream Political Issues

August 13th, 2007

With the deepening of the mortgage crisis, which ultimately forced middle class families to opt for foreclosures, the stock market also got pretty shaken up. This issue was immediately sized upon by the Democratic presidential contenders. It became a perfect issue for them to accuse the republicans of letting unregulated companies of oppressing hardworking families.

Senator Hillary Clinton of New York said in New Hampshire Yesterday that she would ban the fees that penalize the early payments. Additionally she also offered to create a fund of around $1 billion to help the struggling homeowners who are trying to prevent foreclosures. Banning of a longer list of notorious lending practices, including balloon loans, in which rate of interest grows drastically over time was called for by John Edwards, the Former senator of North Carolina.

Senator Barack Obama of Illinois led to the introduction of a bill which would impose new penalties on mortgage professionals who are guilty of fraud and propose to counsel homeowners who want to avoid foreclosure. Chairman of the Senate Banking Committee, Senator Chris Dodd of Connecticut is putting in his own efforts so as to combat the prevalent problem of foreclosure in the real estate scenario. The more the crisis is prevalent in the economy, the further democrats put forward that Republican economic policies have scorned the families of middle and lower income class as per some campaign watchers.

Yesterday, Alan I. Abramowitz, a political scientist in the Emory University, said that it is a wonderful opportunity for the Democrats to disapprove of the collapse of the Bush administration. While delivering her speech at Ernest P. Barka Elementary School, Clinton put forth that the next president must “restore a sense of fairness to our economy.” She further said that “What the president calls the ownership-society; it’s the yo-yo economy,”. What she essentially meant is that some go up and some move downwards, while someone is pulling the strings. In fact this issue appealed to some of the residents who had heard Clinton lay out her plan to deal with the problems which begun in the subprime mortgage market affecting borrowers with blotchy credit records.

In fact some of the residents of Manchester feel that foreclosure is just one aspect of the economic squeeze that they face. Some had to shift to other city just because of the high property taxes. Hence they find themselves incapable of affording anything in the real estate market.