Presidential Candidates Who Support a Mortgage Bailout

The list of politicians who are calling for a bailout of mortgage borrowers is disgustingly long. Democrats have come out with the most elaborate proposals so far, but previously-vague Republican candidates are jumping on the bandwagon as well.

Hillary Rodham Clinton

• $2 billion federal fund to help homeowners
• 90-day moratorium on foreclosures
• Minimum five-year rate freeze on all ARM subprime loans
• Legislation to force lenders to modify loans without investor consent

Democratic frontrunner Hillary Clinton (D) has all sorts of wacky (and costly) proposals to help homeowners. In addition to a $2 billion federal fund, Clinton plans to help struggling homeowners by initiating a foreclosure moratorium and a ridiculously long rate freeze. She openly criticized Bush's teaser freezer plan, calling it inadequate.

John Edwards

• A 'Home Rescue Fund' (financed by taxpayers) to help borrowers into more affordable mortgages
• An immediate halt on foreclosures until lenders offer some sort of mortgage assistance to borrowers
• Seven-year freeze on interest rates

John Edwards (D) has been publicly smeared for investing in a subprime-linked hedge fund. To right that image, he has proposed robbing taxpayers to help millions of people avoid foreclosure in the coming years. Edwards also intends to have a shotgun wedding with banks to ensure he gets the outcome he desires.

Barack Obama

• Federal fund to help homeowners refinance or sell
• Reform of bankruptcy laws to allow for mortgage renegotiation
• Mortgage interest tax credit for people who don't itemize

Oprah favorite Barack Obama (D) got the jump on other candidates by proposing his mortgage bailout plan in September of this year. He wants to create a federal rescue fund, change bankruptcy laws and offer tax breaks. Clinton and Edwards aside, Obama is the biggest supporter of government intervention.

Joe Biden

• Allow bankruptcy courts to modify loan terms
• Pressure lenders to renegotiate with borrowers
• Expand the FHA and help borrowers refinance with federally backed loans
• Lift Fannie Mae and Freddie Mac caps

Joe Biden (D), who ran for president back in 1988, feels that keeping people in their homes should be a top priority. In addition to heavier regulation, Biden wants to urge lenders and bankruptcy courts to modify loan terms and irresponsibly expand Fannie Mae, Freddie Mac and the FHA.

Christopher Dodd

• Loan modifications that will help a maximum number of homeowners
• Stricter lending laws
• Wholeheartedly supports a bailout, but prefers to call it something else because he doesn't like to use the 'B' word

Christopher Dodd (D), who has referred to himself as a long shot for his party's nomination, hasn't come forth with any definite proposals like some of the other candidates. However, he has likened the Bush administration's plan to 'using a squirt gun to put out a fire', implying that he would come up with a more comprehensive bailout for borrowers.

Rudolph Giuliani

• Government help for borrowers who were 'cheated'
• Lender initiated work-outs

Everyone's favorite terrorist fighter Rudy Giuliani (R) has spoken out against the idea of 'specific bailouts', but ironically enough has plans to provide government help to borrowers who were misinformed when they took out their loan. No word yet on how he will sort out the cheated from the greedy.

John McCain

• Target assistance for borrowers who have been 'taken advantage of' by lenders
• Expansion of the FHA to support the development of 'innovative mortgage loans'

John McCain (R), who is running for the Republican nomination yet again, says that the best way to address the mortgage crisis is to look at loans on a case by case basis. Since there is no time to do that, he supports expanding the FHA to allow borrowers to refinance and transfer risk to taxpayers.

Duncan Hunter

• Federal assistance to help homeowners refinance into longer term fixed rate loans
• Lender initiated work-outs

Duncan Hunter (R) is a self-described 'true conservative' who claims that government intervention is not the answer to the mortgage crisis. Nevertheless, he supports increased FHA loan flexibility and similar policy adjustments.

Mitt Romney

• Federal assistance to help homeowners refinance

Like Hunter and McCain, self-proclaimed government conservative Mitt Romney (R) supports FHA expansion. He also thinks it is up to the government to simplify the mortgage process for American borrowers.

Presidential Candidates Who are Against a Mortgage Bailout

The majority of politicians seem to think that a mortgage bailout is the way to go, so the list of candidates who oppose government intervention isn't nearly as long.

Mike Huckabee

• Flatly opposes bailouts and regulation

Self-dubbed 'Christian leader' Mike Huckabee (D) has compared bailing out mortgage borrowers to bailing out people who bought a Ferrari they couldn't afford. Huckabee says he is firmly against government intervention or any plan that would spend one dime of taxpayer money.

Ron Paul

• Flatly opposes bailouts and regulation

Internet superstar Ron Paul (R) is on a short list of politicians who still believe in the Constitution. Paul is firmly against bailouts and government giveaways of any kind. As far as he is concerned, liquidating bad debt is the best thing we can do for the housing market. And in case you were wondering, Paul despises Bush's teaser freezer plan.

Tom Tancredo

• Flatly opposes bailouts and regulation

Best known for his hard-line stance on immigration, Tom Tancredo (R) is also against a bailout. If he becomes president he says he plans to do absolutely nothing for mortgage borrowers and lenders. Tancredo insists that is not the government's responsibility to 'bail out those who make bad business decisions.'