Our Latest Stories:

Many of the presidential candidates have recognized the problem of the mortgage crisis, with a record number of foreclosures, plunging home values, and a credit crunch that threatens the integrity of investments, is draining the Federal Reserve, and could bring the American economy into recession or even depression. Barack Obama is the one presidential candidate who is doing something to confront the crisis - now.

In an article in the Financial Times of London, Barack Obama writes, “At a time when non-bank lenders were offering new kinds of mortgage, the federal government should have made sure it was all being done on the level. Instead, our government failed to provide the regulatory scrutiny that could have prevented this crisis.”

Elsewhere, Obama explains, “For six years, the President and Congress have allowed lending industry lobbyists to block sensible regulations that could have prevented this crisis in the first place. Now, after many Americans have seen their homes, their credit histories, and their financial well-being jeopardized the President is finally offering a proposal that helps a small fraction of homeowners. These are welcome steps, but the President’s proposal does not go far enough. I have called for a plan that will help far more struggling borrowers avoid foreclosure, crack down on unscrupulous lenders with new penalties and disclosure requirements, and reduce the influence of lobbyists so that we will not face a crisis like this ever again.”

Barack Obama has introduced a bill in the United States Senate to deal with these problems. It is called the Stop Fraud Act. If passed, the Stop Fraud Act will do the following:
- provide the first federal definition of mortgage fraud
- increase funding for related federal and state law enforcement programs
- create new criminal penalties for mortgage professionals found guilty of fraud
- require industry insiders to report suspicious activity
- provide for credit counseling to homeowners and tenants with the aim of avoiding foreclosures
- require the Government Accountability Office to evaluate and report to Congress on various state lending practices

Barack Obama has the vision to see the fundamental corrupt forces that have driven the mortgage industry to exploit vulnerable Americans and endanger the economy. He says, “If we really want to make sure this never happens again, we need to end the lobbyist-driven politics that made it possible.”

That’s the sort of idea you will never hear from Republican presidential candidate Fred Thompson. For one thing, Fred Thompson doesn’t seem to even be aware of the predatory mortgage crisis. If Thompson does know about it, he doesn’t care much. Fred Thompson’s entire campaign web site only mentions the word “mortgage” once, and that’s to warn that giving people the Social Security benefits they have worked for might make it difficult for young people to get a mortgage some time in the mythical future. That’s right - Thompson blames Social Security for mortgage problems.

Thompson certainly never addresses the corruption of lobbyists buying influence in Washington D.C. on behalf of mortgage companies. There’s a reason for that. Fred Thompson is a corporate lobbyist himself, and has been for decades. He’s part of the problem.

(Sources: Fred Thompson Speech to the Lincoln Club Annual Dinner, August 3, 2007; Financial Times, August 29, 2007; BarackObama.com Community Blog, August 31, 2007; Fact Sheet, Protecting Homeownership & Cracking Down on Mortgage Fraud, BarackObama.com)