Homeownership and Prosperity in the 21st Century
Chris Dodd understands that homeownership is the very cornerstone of the American Dream. Yet today millions of hardworking Americans are struggling to find homes they can afford. Many homeowners have fallen victim to predatory lending practices that have resulted in debt, distress, and far too often, bankruptcy and foreclosure. The shortage of affordable homes, the erosion of fair lending practices, and the resulting sharp increase in foreclosures, are deteriorating the quality of life for millions of Americans, undermining our communities and the economy, and jeopardizing the American Dream of homeownership.
America needs a President who will do everything in his power to confront the current mortgage crisis, help people keep their homes, and keep the opportunity for homeownership alive for generations to come. Chris Dodd has a comprehensive plan to preserve and promote homeownership. As President, Chris Dodd will:
- Increase opportunities for homeownership by stabilizing the mortgage and financial markets
- Protect homeowners from unscrupulous lenders and provide assistance to victims of predatory loans so they can keep their homes
- Increase affordable housing so that no American is ever forced to move away from the communities in which they work or live because they can’t afford their mortgage or rent payments
- Reduce the scourge of homelessness, especially for children and families
But just as importantly, America needs a President who knows how to get results, and who will bring people together to turn Democratic principles into American policies. As Chairman of the Senate Banking Committee, Chris Dodd has been a leader in addressing the subprime mortgage crisis that is threatening millions of homeowners. He has used his Chairmanship to press regulators to act and he recently secured $100 million in funds for foreclosure prevention efforts. As Forbes Magazine noted, “…Chris Dodd has been the lone voice from Capitol Hill to have any significant response to the market chaos fueled by subprime mortgage defaults.”
Helping People Keep Their Homes
Preventing Foreclosures. Home foreclosures in our country are at record high levels, putting homeowners, communities, the mortgage finance industry, and the economy at risk. As President, Chris Dodd will help Americans facing foreclosure by creating a $2 billion Foreclosure Prevention Fund designed to move homeowners out of predatory loans and into affordable mortgages. Funds will be provided to help people modify or refinance predatory loans, for direct financial assistance to Americans facing foreclosure, and for financial literacy and education.
Homeownership Education. Today, the home buying process has grown increasingly complicated with lenders offering prospective homeowners an array of mortgage products, some of which are predatory and unaffordable. As President, Chris Dodd will create a Preserving Homeownership Initiative to help families understand and improve their credit scores, educate consumers on how to shop for the best mortgage rates, direct home buyers to down payment assistance programs, and teach consumers how to steer clear of predatory lenders.
Keeping Mortgage Credit Flowing. In the midst of the current crisis, markets are seizing up. As President, Chris Dodd will call on the Office of Federal Housing Enterprise Oversight (OFHEO) to lift the portfolio caps on Fannie Mae and Freddie Mac so they can inject badly needed liquidity into the mortgage market. Lifting the caps by a modest amount -- consistent with safety, soundness and consumer protection standards -- will allow responsible lenders to assist homeowners who have been victims of predatory lending as additional fair and affordable credit becomes available for people to refinance their homes.
Building a More Secure Future
Reforming the Federal Housing Administration. As President, Chris Dodd will reform the Federal Housing Administration (FHA) so additional borrowers can get affordable, safe mortgages. By providing low-cost credit without deceptive terms like prepayment penalties and teaser rates, the FHA will help solve the predatory lending crisis while becoming a more effective and fiscally sound tool for future home ownership. Under Chris Dodd’s leadership, the FHA will help millions of families achieve their American Dream of homeownership by providing safe, affordable and fair credit.
Reforming Credit Agencies. Chris Dodd will reform credit agencies to make them more transparent and eliminate conflicts of interest. It is time to restore faith and confidence in credit ratings.
Strengthening Enforcement and Oversight. Chris Dodd believes that it is time for the agencies that oversee mortgages and the mortgage market to write strong rules and aggressively enforce them. As President, he will insist on stiffer civil and criminal penalties for those that have intentionally made fraudulent loans to unsuspecting borrowers, including heavy fines and imprisonment, and appoint Federal Reserve Board Members who understand their responsibility to protect consumers.
Ending Predatory Lending. As President, Chris Dodd will immediately put a stop to the abusive, unfair, coercive and deceptive lending practices that have forced thousands of Americans into foreclosure and put millions more in danger of losing their homes. He will eliminate the use of prepayment penalties, prohibit exploding payments and teaser rates and eradicate broker kickbacks. Chris Dodd will prevent lenders from steering borrowers to higher cost mortgages, require good faith and fair dealing in home loan servicing, and establish a duty of good faith and fair dealing with appraisals and for brokers. As President, he will prosecute to the fullest extent of the law violators of fair lending laws. Chris Dodd believes that consumers have a right to be treated fairly and honestly.
Affordable Housing for Every Family
Tax-Deferred Homeownership Savings Accounts. As President, Chris Dodd will create Individual Homeownership Accounts that will allow working Americans to save money - tax-free - so they can invest in a down payment on a home. The federal government will match low-income and working families’ accounts up to $500 each year, putting the dream of homeownership within reach for millions of Americans.
Expanding Affordable Housing. Chris Dodd will ensure that homes are affordable for generations to come by encouraging states, localities, and developers to provide affordable homes and mixed-income housing. Chris Dodd will support local efforts to provide housing for municipal employees such as teachers, police officers, and firefighters as a means to attract and retain them, and provide tax credits to encourage landlords to keep their properties affordable. Chris Dodd will increase investments in current housing programs that are successful. As President, he will also expand down payment assistance through creation of a Shared Equity Trust in which homeowners receive grants to reduce the cost of purchasing a home in exchange for agreeing to share home price appreciation with the Trust upon future sale.
Affordable Housing for Seniors. After a lifetime of hard work and paying taxes, every senior deserves the security of safe and affordable housing. As President, Chris Dodd will commit an additional $1 billion in his first term to expand the supply of affordable senior housing. Chris Dodd will also expand seniors’ access to reverse mortgages so that they can draw upon the equity they have in their homes to meet the daily costs of living secure and independent lives.
Combating Homelessness
Assisting America’s Homeless. As President, Chris Dodd will increase funds to provide for our nation’s homeless and streamline the McKinney-Vento program so that local programs are given additional flexibility in how they are run, to ensure that rural communities can effectively compete for funds, to ensure that homeless families are served, and to provide assistance to more Americans in need. Chris Dodd will provide additional funds for efforts focused on children with the goal that no child in America should grow up homeless.
