It pretty much boils down to having the government backstop some of the bad loans, add more government oversight of the mortgage market, and also educate the poor-dumb borrowers. I do like her plan to eliminate prepayment penalties though.
-Require mortgage brokers to disclose to borrowers that their compensation rises when borrowers' mortgage rates and mortgage fees are high.
-Work with states to develop strong licensing standards and require federal registration for mortgage brokers.
-Eliminate prepayment penalties on mortgage products.
-Require mortgage lenders to include the cost of taxes and insurance in the underwriting assessment of higher-risk mortgages.
-Establish a $1 billion fund to assist state programs that help at-risk borrowers avoid foreclosure.
-Expand Fannie Mae's and Freddie Mac's foreclosure prevention efforts.
-Establish a $1 billion fund to provide federal support to housing trust funds established by state, county and municipal governments.
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