From NBC's Andrea Mitchell
In her speech to the NASDAQ, Clinton has called for a moratorium of at least 90 days on foreclosures of subprime loans. Second, she's proposing a five-year freeze on fluctuating rates on subprimes so they can be converted into fixed rates. Third, she's demanding that the mortgage industry gives status reports on the amount of mortgages it is modifying.
Finally, she says if a voluntary solution cannot be reached, she will consider legislation to solve the problem. She also blamed the industry, regulators and the rating agencies for the subprime mess. She plans on threatening legislation if Wall Street does not help those who've been hurt.
*** UPDATE *** As the Iowa contest tightens, Democrat John Edwards has also released proposals today to address the subprime crisis. In a statement from his campaign, Edwards says he would:
-- Freeze adjustable rates for SEVEN years so housing markets and families can recover.
-- Require lenders to assist families facing foreclosures by converting to a fixed-rate mortgage, capitalizing delinquent payments, reducing the interest rate, or forgiving a portion of the loan.
Edwards is also proposing:
-- A Home Rescue Fund to help families move into affordable mortgages
-- New rules allowing bankruptcy judges to rewrite mortgages on family homes
-- A central reporting system to keep track of lenders' progress in modifying loans and to facilitate fraud and predatory lending investigations.
-- New laws to outlaw predatory lending
-- A new federal regulator to oversee financial services products.
No explanation on costs though.