The housing and mortgage policy planks that emerged from the Democratic and Republican conventions could hardly be more different -- not only in terms of what they emphasized, but what they left out.

The Democratic platform calls for bankruptcy system changes that would give judges the authority to reduce the mortgage debts of insolvent home owners -- the so-called "cramdown” approach strenuously opposed by the banking and mortgage industries.

The Republican platform, by contrast, makes no mention of bankruptcy issues for homeowners, but does endorse "carefully targeted” assistance for financially-stressed owners who need to refinance out of unaffordable loans into mortgages that are more "manageable” and "reflect their home's market value.”

The Republican platform opposes "bailouts” of private financial institutions, such as banks and -- presumably -- mortgage giants Fannie Mae and Freddie Mac. "Government interference” in the marketplace only "exacerbates problems,” it says.

The Democrats make no reference to "bailouts,” but propose a new "Homebuyers Bill of Rights” that would create new lending standards nationwide to ensure that mortgages are affordable and fair, plus "accurate and complete” disclosures for all buyers on their home loan options.

They also promise to "restore cuts to public housing operating subsidies,” to work with local governments on problems of abandoned and vacant houses in economically-stressed neighborhoods, and to increase funding for the Community Development Block Grant program.

The Republicans are silent on the subjects of public housing, vacant housing units in cities and the federal block grant program, but their platform explicitly calls for retention of tax law preferences for home ownership, including the mortgage interest deduction.

The Democrats call for vigorous efforts to reduce homelessness, while the Republican platform urges Congress to support the role of multifamily housing and renters as part of a balanced national shelter policy.

Both parties do get together on at least two issues, however, with strong mentions in each of the party platforms: Republicans and Democrats promise to fight housing discrimination, and to crack down on and prosecute perpetrators of mortgage and real estate fraud.

Published: September 8, 2008

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Kenneth R. Harney writes an award-winning, nationally-syndicated column on housing and real estate from Washington, D.C. He is also managing director of the National Real Estate Development Center, a professional education company. He is a past member of the Federal Reserve Board's Consumer Advisory Council, a committee that by federal statute reviews all Fed actions on home mortgage, consmer credit and banking industry regulation. He served as a member of the U.S. Department of Housing and Urban Development's Working Group on Computerized Loan Origination (CLO) systems, and is a member of the Editorial Board of the Fannie Mae Foundation's journal, Housing Policy Debate. He is the author of two books on mortgage finance and real estate.