WASHINGTON (CNN) – Republicans criticized Democrats for not using "common sense" as they proposed an alternative solution to address the nation's ongoing housing crisis on Wednesday.
House Republican Whip Eric Cantor blasted the administration's plans to strengthen the housing market, saying they are pushing "policies that frankly don't make a lot of sense."
GOP leaders propose expanding tax credits for home owners and buyers while cracking down on fraud in the housing market. "We are committed to trying to pull the agenda back to mainstream," said Cantor, calling homeowner assistance central to reviving the economy.
Provisions in the new proposal, which would be affective until July 2010, include a $5,000 tax credit to help families refinance their homes, whether or not they are backed by the ailing Freddie Mac and Fannie Mae; tax incentives for mortgage lenders who help homeowners refinance these homes; and a $15,000 home buyer credit to all home buyers who can put at least 5 percent down.
Republicans also proposed working with the FBI, Department of Justice and other government housing agencies to fight fraudulent mortgage companies and borrowers.
GOP leaders were unable to provide an estimate of how much their proposed plan would cost.