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Dold Challengers Offer Ideas on Mortgage Crisis

Some Democrats would require mandatory mediation between lenders and borrowers on underwater loans.

After to discuss the nation’s housing and mortgage crisis, four of five Democrats hoping to challenge Dold had ideas of their own to share.

Though Dold sees possible legislation as a solution to the difficulties being caused to people because home values are dipping below the mortgage balance on their property, he thinks relaxation of certain regulations now will give some quicker relief.

Dold also recognizes the current reduction of real estate values is one of the major problems for the economy as a whole. “There is no question as we look at the economy and jobs, housing is a big, important aspect to our economy.”

“We can do that but I’m not sure how quickly it would be,” Dold said about possible new laws. “What we can do is give community banks more flexibility. If the appraisal comes in at $470,000 instead of $500,000 maybe the person has to put 22 percent down instead of 20 percent,” he added describing a possible scenario.

Schneider Considers Housing Major Issue

As one of the five candidates seeking the Democratic nomination in the March 20 primary, Deerfield management consultant sees an improved housing market as a major part of recovery.

“Home ownership is still the pinnacle of the middle class dream,” Schneider said. He thinks cooperation of lenders and homeowners with government assistance in tax policy will help. “We have to get them sitting on the same side of the table rather than fighting with each other.”

Schneider sees a reduction of the principal balance of some mortgages as well as smaller payments as part of the solution. He would add tax advantages into the mix for lenders that must take a loss by reducing the amount they will eventually be paid.

Waukegan community organizer would go even further by passing legislation requiring mandatory mediation between lenders and borrowers under the auspices of the federal government.

“I support Sen. (Richard) Durbin’s (D-Springfield) cram down legislation what will require the reduction of principal,” Sheyman said. “The reduction of real estate values has hurt families.”

Tree Wants Banks to Reduce Loan Balances

Another candidate, Long Grove business owner , believes banks that made substandard loans that are now under water — a term meaning the loan balance is greater than the property value — should cut the principal.

“Underwater mortgage debt is one of the primary drags on the economy,” Tree said. “Banks are sitting on more than $1.5 trillion in capital reserves. It would take roughly $700 billion dollars for banks to write down underwater mortgages that they are largely responsible for creating.” Tree would have those banks subtract the $700 billion from unpaid bailout money.

Hainesville mathematician , another Democratic candidate, is less willing to make accommodations to underwater mortgage holders. “Any modification without any prospect of income to continue making payments is just kicking the can downstreet,” he said.

Additional ideas

A fifth Democrat, Mundelein attorney did not respond to Patch’s request for comments.

Dold is keeping an open mind about possible legislation to aid people with mortgage issues, including Durbin’s proposal.

“Congressman Dold is constantly searching for ways to address the housing crisis that is slowing down our economic recovery,” Dold Communications Director Stefani Zimmerman said. “He welcomes looking at the details of any serious proposal to evaluate whether it would be smart policy that is not weighed down by unintended or indirect consequences.”

In other campaign news Wednesday, the named the 10th Congressional District as one of 18 “red to blue” races throughout the country for the Nov. 6 general election, according to DCCC Chair Rep. Steve Israel (D-NY). 

Charlie January 24, 2012 at 02:59 AM
Well, guess what hun? You might find that your polemics are insulting, deliberately antagonistic, and sad. Now that might work for a PAC backed TV spot in support of a dolt, but not so sure that PACS recruiting messengers like yourself to spam online comment forums like this one is very fulfilling. You're not a very effective spin doctor., and judging from the debate I'm watching on TV now, your party, using your style of warped rhetoric is helping to re-elect the incumbent president in a landslide. Sad. Very very sad. for you.
RB January 24, 2012 at 01:48 PM
It does stand to reason that if the Republican Party is the answer to all our problems, the debates would show some of the needed intelligence and discipline to Govern. Not seeing it, but it is entertaining! I just read that Newts Tax Plan would reduce revenue by over $800 Billion per year! Romneys? Over $150 Billion per year! Crazy!!! This country needs tax reform but not less revenue! Jeez!
Abigail January 24, 2012 at 03:36 PM
Charlie, were you born a moron--or have you been working at it all of your life? Whatever the case, at least you are good at something.
Jon Hall January 24, 2012 at 04:24 PM
What do glaucoma and religious "values" political agendas have in common? A story on p7 of today's NYT biz section "Stem Cell Treatment for Eye Diseases Shows Promise" caused me to stop and reflect. Future generations-our grandchildren-will be looking back 30 yrs from now while they are slowly going blind from some inherited form of macular degeneration and wonder why my generation obstructed hope for healing blindness. Atta-boys all around for religion-the leading cause of death and mental blindness. Religious "values" voters + tea party in congress has almost killed every form of advanced medical research industry in US, and are delivering ownership of medical cures, distribution chains, and intellectual property everywhere offshore. It's so ironic and sad that these "values" dictate this across-the-board lack of vision. Right here in my district, a dolt will tell me what I want hear when I speak with him face-to-face. Then he'll go back to DC and vote with the "values" pak. Look at what we have right here in this dolt's district. We are a medical industry mega-center. dolt! Have one of your people talk to one of my people so we can set up a re-election photo-op of you coming out of a meeting at Takeda, or Baxter, or Abbott where you just held a forum on medical technology and its potential to create cures and jobs in your district. Be a good dolt. I want to see it reported here in the patch next week. Better yet? Hold your photo-op at the VA hospital.
Daniel Krudop January 29, 2012 at 12:52 PM
"unemployment insurance (already paid for by business, not a hand out)" RB, I would invite to to visit the following link. Put in the taxes you pay and then drop down to "Job and Family Security" under that category you will find "Unemployment Insurance" where you will see how much you paid into the fund. There are valid reasons to not consider unemployment insurance a "hand out," but it is not revenue neutral. It has been a major player in discussions over raising the debt ceiling so we can borrow more money to extend benefits. http://www.whitehouse.gov/issues/taxes/tax-receipt

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