Romney’s economic aide backs Obama’s mortgage refinance plan

New York /
Aug.August 07, 2012 10:00 AM

Mitt Romney’s stance on mortgage refinancing proposals will pit his Republican colleagues against one of his top economic advisers. A controversial mortgage policy proposed by the Obama administration that would accelerate the amortization of underwater loans has gained the support of Columbia Business School Dean Glenn Hubbard, Romney’s adviser, but drawn criticism from Republicans, the Wall Street Journal noted.

The program, officially introduced by Oregon Senator Jeff Merkley, calls for Fannie Mae and Freddie Mac to pay the closing costs for underwater homeowners to refinance into short-term loans. That fix is part of a third-round of adjustments to the Home Affordable Refinance Program that Hubbard has criticized in the past for not going far enough. In fact, Hubbard has been calling for more widespread refinancing of loans since late 2008, according to the Journal.

But Romney has not disclosed his stance on any of the fixes to HARP, which also include tweaks to adjust for the FHFA’s rejection of some technical changes implemented in the last round of fixes and a third proposal that Hubbard does not support. A vote is slated for September. Meanwhile, Romney’s take on the foreclosure crisis has been murky, saying last fall that he believes in a laissez-fare approach, only to reverse course in January, saying that a “much more concerted effort” is needed. [WSJ]


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)
Nonprofit plans affordable housing development near Essex Crossing
Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
Camber Property Group's Andrew Moelis and Rick Gropper with 2060 Pitkin Avenue in Brooklyn and 1971 and 1975 Grand Avenue in the Bronx (Photos via Camber Property Group, Omni New York)
Affordable housing developer Camber scoops up Section 8 portfolio
Affordable housing developer Camber scoops up Section 8 portfolio
33 Eastville Ave, Sag Harbor, NY (Google Maps)
East Hampton pursues affordable housing dev for former Baptist church
East Hampton pursues affordable housing dev for former Baptist church
Tishman Speyer president Rob Speyer and Edgemere Commons (Getty)
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
Investors continue to snatch up city’s multifamily, industrial assets
Investors continue to snatch up city’s multifamily, industrial assets
Investors continue to snatch up city’s multifamily, industrial assets
How long does it take to lease an affordable housing project? Too long
Red tape keeping affordable units empty for 15 months
Red tape keeping affordable units empty for 15 months
Attorney General of New York Letitia James and United States Secretary of Housing and Urban Development Marcia Fudge (Getty)
State attorneys general call for eviction ban on subsidized renters
State attorneys general call for eviction ban on subsidized renters
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...