Clinton Shares Potential Housing Crisis Solutions
- Mar 25, 2008
Philadelphia–Presidential hopeful Hillary Rodham Clinton presented a plan Monday in during a speech at the University of Pennsylvania to slow foreclosures, increase lender transparencies and allow for $30 billion to assist homeowners and communities.Clinton said federal government should use resources similar to those it used to bail out Bear Stearns to help individuals, according to the Washington Post. “Let’s be clear: When families are losing their homes, that’s also a financial crisis,” Clinton said. Clinton’s main competitor, Barack Obama, also has proposed measures to help troubled homeowners. However, the two Democrats differ on whether or not to cap mortgage interest rates to prevent foreclosures, which Clinton has proposed.Obama doesn’t support mortgage rate caps, which some argue could increase newer homeowner rates if investors back away from mortgage lending for options with higher returns.Clinton has suggested a 90-day moratorium on owner-occupied, subprime-mortgage home foreclosures. In addition, she proposed freezing subprime adjustable-rate mortgages for up to five years or until they can be converted into fixed-rate loans.Clinton also supports Rep. Barney Frank (D-Mass.) and Sen. Christopher J. Dodd’s (D-Conn.) proposal–which Obama co-sponsored–to expand the Federal Housing Administration’s role in reworking or purchasing at-risk mortgages.