It’s no secret that the housing sector is struggling.  Low fixed rates and aggressive mortgage relief from the government has not put an end to the U.S. housing crisis.

Yesterday, the Federal Reserve committed to keeping the key rates at nearly zero for another two years.  In an effort to keep borrowing attractive, the Fed has extended additional measures buy committing to buy bad credit mortgage bundles from the big banks like Bank of America, Chase and Citibank. As the stock market goes up and down like a roller-coaster and foreclosures continue to pile up, there are very few reasons to be bullish about the real estate market in any of the 50 states. There are measures that could be taken if we were serious about putting the  housing crisis to rest.

Below are 11 Bold Suggestions for Overcoming this Housing Mess

1. Obama and the Republican Presidential Candidate should commit to eliminating the capital gains tax. This will spur investing and stimulate the job market and reduce the unemployment rate nationally.
2. The Federal Reserve needs to stop printing money.  Devaluing the dollar is not enhancing consumer confidence that ultimately affects home sales.
3. Mortgage lenders need to loosen guidelines for home refinance and purchase loans. This doesn’t mean we should go back to 2005 guidelines that promoted no money down loans for people with marginal credit. Nor am I suggesting stated income loans for borrowers that can’t afford a mortgage payment. Somewhere between 2005 and 2011 guidelines will help a lot.  Borrowers who are interested in mortgage refinancing and have demonstrated the ability to make their mortgage payment even if they have an underwater mortgage makes sense.
4. U.S. government should extend a $10,000 tax credit for first time home buyers.  This will spur home buying and a $7,500 tax credit should be offered to existing and former homeowners as well.
5. Obama should commit to rebuilding Fannie Mae and Freddie Mac. Wall street and investors will respond more favorably if the Obama administration will lay out a real plan that calls for rebuilding government mortgage giants like Fannie Freddie rather than spreading rumors that you plan to dismantle and eliminate these finance agencies that the home finance sector has been relying on the last forty years.
6. HUD should call for FHA to reduce mortgage insurance premiums for the next few years. By reducing the mortgage insurance FHA will reduce borrower’s monthly housing expenses. FHA loans have seen their popularity fall recently as they have increased the insurance premium three times in two years.  Yes FHA mortgage rates are low but people are not attracted to hefty mortgage insurance monthly that washes out their savings.
7. Private money lenders should roll out new low rate home purchase loans with a reduced 5% down-payment requirement.
8. The government should expand the Home Affordable Refinance Program to help more struggling homeowners that are struggling with an underwater mortgage.  By expanding the 125% loan program, more homeowners will be able to avoid foreclosures and lenders will see the delinquency rates fall as well.
9. The Fannie Mae and Freddie Mac conforming loan limits should be extended. They are on track to be lowered any day and this does not stimulate home sales.
10. Congress should increase 2012 FHA loan limits rather than decrease them. FHA mortgage limits are scheduled to fall any day.  This significantly high cost regions like California, Connecticut, Colorado, Florida, New York, New Jersey, Washington DC, and Virginia. Many homeowners in these states own second properties in other states, so raising the loan limits will indirectly help these other states as well.
11. Repeal the Dodd-Frank financial reform bill.   This is a poorly written piece of legistlation was created so Chris Dodd, Barney Frank and their friends could grand-stand and pretend like they were part of the solution.