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POINT—COUNTERPOINT T Issue," DS News asked two industry experts to share their views on the issues our elected officials must focus on to strengthen America's housing markets and move the industry forward. According to Julia Gordon: Whether they're struggling to make their mortgage payments, hoping to take advantage of historically low interest rates, or simply waiting for the housing market to recover, today's homeowners will fare better under an Obama administration. Tomorrow's homeowners will be better off, too, with ready access to mortgage credit and protections from unsustainable and predatory loans. For distressed homeowners, the Obama administration's Home Affordable Modification Program (HAMP) has helped more than 1 million families lower their monthly payments, in many cases reducing principal to help homeowners rebuild equity. While HAMP did not produce as many modifications as initially projected, the program set an industry standard for loan workouts. Rather than support HAMP or make suggestions for improvement, congressional Republicans have twice voted to end the program and replace it with … nothing. That position appears to be shared by Gov. Romney, who told the Las Vegas Review Journal's editorial board that solving the crisis meant letting the foreclosure process "run its course and hit the bottom." For homeowners current on their payments, Paul Ryan—plan to pull the plug on these crucial sources of liquidity. Rep. Ryan's proposed budget eliminates Fannie Mae and Freddie Mac while scaling back FHA. Ryan is one of 80 Republicans to co-sponsor a bill that would terminate Fannie and Freddie without establishing any new government role in the market. While it's clear the current level of he housing industry is, without a doubt, an integral part of our nation's recovery. Absent a healthy housing market, we cannot have a healthy economy. As the 2012 presidential election nears, Americans are faced with a very important decision: Should we put our trust in a Republican or Democrat to lead us toward a stronger, more robust recovery? For the September "Leadership from a more traditional environment of financial regulation to a new era of mega-institutions and "too big to fail," has proved to be a detriment despite its best intentions. Even Sandy Weill, the business leader most responsible for it and the repeal of Glass-Steagall, has said as much. It ushered in an era of financial adventurism, with banks becoming involved in many businesses they should have left alone. But now we have a regulatory alphabet Gramm-Leach-Bliley, which brought us government support is not a long-term solution, prematurely removing it would severely contract mortgage lending and further delay economic recovery. The Republican plan could mark the last days of the 30-year fixed-rate mortgage, a pillar of the U.S. mortgage market that only exists because of a government guarantee. Another important advance for homeowners soup of disappointing programs and oppressive governmental entities that would make the Founding Fathers turn over in their graves. We have the Dodd-Frank Act, with its thousands of laws yet to be enacted that will provide a lifetime of employment for lawyers at an untold expense for everyone else. The Volcker Rule, as originally written, may the Obama administration's Home Affordable Refinancing Program (HARP) has helped more than 1.4 million families with Fannie or Freddie loans refinance, even if they are underwater or have little equity in their homes. President Obama supports legislation to expand HARP further and to provide similar refinancing opportunities to borrowers with private-label mortgages. With a few exceptions, congressional Republicans have remained silent about refinancing or signaled that they would oppose pending legislation. Gov. Romney has said government support for refinancing is "worth further consideration" but has offered no concrete proposals. Families who aspire to own a home will be able to access credit, thanks to the liquidity provided by the Federal Housing Administration (FHA) and the government's conservatorship of Fannie Mae and Freddie Mac. These institutions now back more than 95 percent of all home loans and have kept mortgage credit flowing continuously throughout the crisis. At such a fragile time for the market, many Republicans—including Romney's running mate, 94 is the Dodd-Frank Act, the financial reform law passed almost exclusively by Democrats in 2010. Dodd-Frank contains strong protections against the type of reckless and predatory lending that led to the crisis. It also created the Consumer Financial Protection Bureau (CFPB)—and agency dedicated to giving families effective tools to shop for an affordable and sustainable mortgage and policing the market for unscrupulous lenders and brokers. Gov. Romney has vowed to repeal the Dodd-Frank Act and dismantle the CFPB. President Obama and Gov. Romney offer profoundly different visions for the housing market. While the Obama administration has launched ambitious programs to soften the blow of the housing crisis, keep families in their homes, and maintain the dream of sustainable homeownership for future generations, Gov. Romney would rather stand back, stay silent, and let the markets run their course. According to Ed Delgado: In times of crisis, it is intuitive to lay blame and overreact with measures intended to fix the situation. When a national election is in the offing, this tendency is magnified in order to generate political capital and exploit opportunities to gain power. We have rarely seen this dynamic more in play than right now under the Obama administration. Of course there were errors and excesses in the have made our banks less competitive on the world stage, but in its current form lends itself to extreme oversight that threatens to create a severe imbalance in the housing market. Paul Volcker himself has stated he would rather have seen a simpler rule enacted. "I'd write a much simpler bill. I'd love to see a four-page bill that bans proprietary trading and makes the board and chief executive responsible for compliance," Volcker told the New York Times last fall. Instead, that one rule fills close to 300 pages, an excellent example of lawmaking run amok. Government and the private sector need to work together to create policies that stimulate the economy and promote homeownership for people who can afford it. Freddie Mac and Fannie Mae were never intended to replace the secondary market. The GSEs need to be privatized, right- sized, and made efficient by the demands of the free market in a properly regulated environment. Perhaps then we can move past the smokescreens obscuring the nation's overarching problem: unemployment. The most important task facing any actions that led to the financial crisis. But to react with an overwhelming and punitive regulatory response, based on an Orwellian mindset that extreme control is a good thing, is the worst sort of folly. administration is the creation of a meaningful jobs program that works for businesses both large and small. For more than 42 consecutive months under Obama, we have seen stagnant, crushing unemployment in excess of 8 percent. With 5.2 million people out of work and more than 8 million underemployed or part-timing to replace full-time jobs, no real improvement can occur. Instead of worrying about this candidate's tax returns or that candidate's religious views, the public discourse should be focused on jobs. To do otherwise is a disservice to the economy, the electorate, and the country's future.

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