Polis announces credit reform plan

U.S. House candidate Jared Polis (D-Boulder) Tuesday announced his plan to offer mortgage and credit reforms in light of the "credit crunch" facing individuals in the wake of the collapse of subprime mortgages.

According to a campaign press release, the plan proposes:

• "Establish a Financial Product Safety Commission," that would "will establish guidelines for consumer disclosure; review new financial products for consumer safety; and modify dangerous financial products before they can be marketed

• "Enacting the FDIC's proposal for a temporary freeze on introductory rates on the most default prone adjustable rate loans."

• "Establish a 90-day notice for renters before they can be evicted from their homes."

• "Limiting effective interest rates [from Payday lenders] to 36%"

• "Give primary housing residences the same status as vacation homes so that mortgages on peoples' actual homes can be restructured during bankruptcy."

• "Change the federal bankruptcy code to allow judges to restructure debtors' mortgage payments in addition to their other debts"

• "Prohibit retroactive higher [credit card] interest rates on balances incurred before a rate increase went into effect."

In the statement, Polis touted his experiences as an entrepreneur and chairing a National Commission on Financial Literacy as key qualifications during the current economic situation.

"We need people in Congress who will be on the side of ordinary families feeling the credit crunch intensely today," he wrote. "I will bring my business experience and vision to Congress to help families get a fair shake from lenders."