How the 2012 Presidential Election Affects Chicago Homeowners

September 10, 2012

2012 election and chicago homeownersNo matter who you are voting for in November, it is important to take note of how each candidate’s proposed policies would affect Chicago homeowners and the real estate market.

President Obama stated that he would work with already existing foreclosure relief programs and and would expand refinancing and loan modifications. He would also continue to support legislation that would make refinancing easier. Under the Dodd-Frank act, Obama would implement new housing finance policies to protect consumers.

The Dodd-Frank act was created in July 2010 and its primary goal is to prevent significant financial crisis by utilizing regulatory processes that allow for more transparency and accountability among financial institutions.

Mitt Romney stated that he would repeal the Dodd-Frank act, which he would replace with streamlined regulations that would make it easier for smaller financial institutions to reenter the mortgage market. Romney believes that regulation is important so that small and regional banks are able to make any necessary loan modifications.

On the issue of foreclosures, both Obama and Romney believe that the government should sell some of the 200,000 homes that have been foreclosed and are now owned by Fannie May, Freddie Mac and the Federal Housing Administration.

The candidate who is elected will also have to make some tough decisions regarding mortgage down payments and whether it is better to increase the amount of money needed for a down payment or to relax the current standards.

Lastly, the next president must decide whether or not to limit the authority of the Consumer Financial Protection Bureau, which was created to protect consumers and homeowners from mortgage fraud and abuse.

What real estate issues are you following during the election?

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