Bloomberg: Democrats All Quiet on the Housing Front

Housing has been largely an elephant in the room for the Democratic party, as evidenced by its lack of presence during the Democratic National Convention in Charlotte last week. It’s one of the themes not mentioned, and with good reason, writes Bloomberg Businessweek in a recent article

Bloomberg Businessweek reports: 

It’s a tricky political card for the Democrats to play. On one hand, the housing market is finally starting to show signs of improvement. On the other, foreclosures still haunt the country, including in some key swing states such as Nevada, Florida, and Ohio. And Obama’s key anti-foreclosure effort, the Home Affordable Modification Program, has made a much smaller impact than originally promised….it will boost loan modifications by only about 0.7 percent and reduce foreclosures by at most 0.48 percent, according to a recent academic study. Outside of foreclosures, rents are up around the country as inventory is falling behind demand.

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Here in Charlotte, a consortium of 19 real estate industry trade groups met with legislators Wednesday afternoon to press the importance of the market. (They held a parallel meeting with Republicans in Tampa.) The groups talked about what they saw as the hurdles to recovery—weak capital markets, lagging consumer confidence, and regulatory uncertainty among them. Steve Brown, first vice president of the National Association of Realtors, told legislators that the association fears tax changes that would cut back or eliminate the mortgage interest deduction, which NAR estimates could trim home values by 15 percent. Alexandra Jackiw, from the National Apartment Association, [said] she doesn’t expect housing will get much attention on the convention stage, which doesn’t make sense to her. “We are a $2 trillion industry, just in multifamily alone,” she says…

Read the full article on Businessweek

Written by Elizabeth Ecker

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  • Who talks about their abject failures if they do not have to?  The mistake the Republicans made was not to take this issue head on in their convention.

    From the time this Administration first arrived in DC, it has willingly and ably pointed out the problems at HUD but they also have shown no leadership to make their case to Congress to correct things such as through more appropriations.  When the HECM program came under extreme pressure in the first Obama budget in early 2009 rather than trying to strengthen it through the appropriations process when the President had but total control of Congress, our program was left to fend for itself.

    This President has wildly attacked his predecessor but he will take the lead to turn the housing mess around.  Was he elected merely to attack?

    Yet where is the Romney or Ryan plan and what will they do just attack the current President?

      

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