Barack Obama would consider ratcheting up support for the housing market if he wins the presidential election, a top adviser has said.
The Democratic candidate also believes that any fix for Fannie Mae and Freddie Mac, the troubled mortgage giants, must involve an overhaul of their business model.
Jason Furman, economic policy director for Obama’s campaign, said: 'It is likely that we are going to have to do more to tackle the housing crisis directly.'
Furman said Obama would consider expanding a new programme known as the Frank-Dodd plan. Under this scheme, lenders willing to write down unsustainable loans can obtain government-backed refinancing.