Clinton on the Foreclosure Crisis
Sen. Hillary Clinton (D-NY) has joined the Maryland discussion about the state's spiralling foreclosure rate, dispatching a top supporter and a campaign policy adviser this morning to lay out her plans for the crisis.
Clinton would set a 90-day moratorium on foreclosures, freeze adjustable rate mortgages for at least five years and set up a $30 billion fund that would help states and cities dealing with the crisis.
Former Lt. Gov. Kathleen Kennedy Townsend and Campaign Deputy Economic Director Larry Benn told reporters during a conference call today that Clinton has been developing a strategy to deal with the crisis since last March.
"This is a great example of why she would be a great president," said Townsend, noting that Clinton
tried to get ahead of the curve. "She has been focused on the economy for a very long time."
The plan would allow a 90-day moratorium on "owner-occupied houes," Benn said. Unlike President Bush's plan, which offered help only to homeowners who were current on their loans, Clinton's plan does not exclude homeowners who are delinquent in their payments, he said. Homeowners who are current on their payments
would automatically receive the five-year rate freeze.
Benn noted that the $30 billion fund Clinton would create would help states like Maryland, which has set up its own fund to help provide zero interest loans to homeowners who are facing foreclosure.
-- Ovetta Wiggins
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