Government is the Housing Crisis Cause, and Solution: Poll

NEW YORK (TheStreet) -- The Obama administration has made addressing the weakness in the housing market a priority, as it heads into the Presidential elections.

But the public seem undecided on whether the government should do more to stimulate the housing market five years into the bust or reduce its involvement and allow prices to hit bottom on their own.

In a poll run by TheStreet over the last two weeks, readers were asked if Congress should back Obama's recently announced mortgage plan that would allow "responsible" homeowners, including those who owe more than their homes are currently worth, save an average $3,000 a year by refinancing their mortgages at attractive interest rates.

Out of the more than 400 readers polled, 51% said Congress should not back the plan as the government needed to quit trying to fix the housing market and should stay out of housing. The remaining 49% believed that homeowners who are current on their mortgage payments deserve relief.

The narrow majority, however, shows that voters are likely split on housing policy and that the government's role in propping the market will remain at the center of political debates in the run up to the elections.

The Obama administration has announced a slew of measures to boost housing and provide borrower relief in recent days.

Last week, President unveiled details of a broad refinancing program directed at helping "responsible" homeowners, including those who owe more than their homes are currently worth, save an average $3,000 a year by refinancing their mortgages at attractive interest rates.

The $5 billion to $10 billion proposal, first announced at the State of the Union address, is expected to be funded by a proposed "Financial Crisis Responsibility Fee" that would be imposed on the largest financial institutions, based on their size and riskiness.

The refinancing plan, which requires Congressional approval, has already been called "dead on arrival" , as Republicans are unlikely to approve a "bank tax" and have criticized previous plans from the White House that attempt to help borrowers refinance or modify their loans.