Monday, March 24, 2008

Clinton delivers major policy speech at UPenn

Jonathan Yu/The SPOKE


PHILADELPHIA—Hillary Clinton delivered a major speech in Philadelphia today on the state of the American economy and announced a four-point plan to stem the tide of home foreclosures, which has been a key driver in the weakening economy. Her plan includes new action to help at-risk homeowners restructure their mortgages, the creation of a working group that would investigate ways to broadly restructure at-risk mortgages and report its findings in the next three weeks, an easing in legal liability for mortgage servicers to help unfreeze the mortgage market, and an additional $30 billion in stimulus to help states and localities fight foreclosures in their communities.

“Over the past week, we’ve seen unprecedented action to maintain confidence in our credit markets and head off a crisis for Wall Street Banks. It’s now time for equally aggressive action to help families avoid foreclosure and keep communities across this country from spiraling into recession,” said Clinton. “The solution I’ve proposed is a sensible way for everyone – lenders, investors, mortgage companies and borrowers – to share responsibility, keep families in their homes, and stabilize our communities and our economy.”

The plan she announced today builds on her previous proposals to address the housing crisis including, cracking down on unscrupulous mortgages lenders, establishing a 90-day moratorium on foreclosures, and freezing interest rates for five years on subprime mortgages.

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