December 5th, 2007
03:30 PM ET
6 years ago

CNNMoney.com: Clinton unveils mortgage plan

Clinton went to Wall Street Wednesday.

NEW YORK (CNNMoney.com) - Senator Hillary Clinton spelled out the details of her subprime bailout plan Wednesday, calling for a 90-day moratorium on foreclosures and a five-year freeze on the interest rates of adjustable rate mortgages (ARMs).

In August, the democratic presidential hopeful asked legislators to ban prepayment penalties on mortgages, but her new plan goes much further, and bears similarities to other proposals, including one expected to be offered by the Bush administration soon.

Clinton had already outlined her proposal in a letter to Paulson on Monday – the letter was posted onto her Web site – but on Wednesday she formally unveiled the comprehensive plan.

– CNNMoney's Les Christie

Full story

UPDATE: Former North Carolina Sen. John Edwards unveiled a plan Wednesday that goes further than Clinton's. He is including a mandatory interest rate freeze to last seven years and a moratorium on foreclosures would that would be in place at his discretion.


Filed under: Hillary Clinton
soundoff (103 Responses)
  1. Lou, Williamsburg, VA

    Hillary, you don't look so Presidential to me by hurriedly coming out with your so-called "plan" after the WH said it was soon to release there's. You look reactive, NOT proactive as you probably sought to appear. BTW, I don't see much difference between your's and Bush's, except for the moritorium on foreclosures.

    December 6, 2007 06:50 am at 6:50 am |
  2. Democrat Sheep, USA

    baah, baaaaaaaaah....
    I love Hillary! baaaah..
    George Bush is evil, baaaahhh...

    December 6, 2007 07:13 am at 7:13 am |
  3. JB Boston MA

    For all of the bad things going on in this world, I BELIEVE THIS IS AN EXAMPLE OF THE BIGGEST PROBLEM.

    NOBODY TAKES RESPONSIBILITY FOR THEIR OWN ACTIONS.

    "It's not my fault, so let's hold someone else responsible". In this case the taxpayers have got to bail these idiots out.

    You signed the paperwork, you are responsible. End of story!

    You can make excuses all you want, but this just perpetuates the feeling that someone else is repsonsible for everything bad that happens.

    I bought a bad stock this year. Can the government make up for my losses?

    This country is going to fall apart unless people start taking responsibility for themselves.

    Hillary and Bush are on the exact same page here!

    December 6, 2007 08:11 am at 8:11 am |
  4. BCNU purple state, usa

    Two words, baby!

    Cattle futures!

    December 6, 2007 08:20 am at 8:20 am |
  5. Anonymous

    My interest rates are getting ready to go down again next week. Maybe even by a half a point!! Please think before you speak Hillary..

    December 6, 2007 08:25 am at 8:25 am |
  6. Seam, Philly PA

    Hillary, Bush has already signed a deal to handle the mortgage crisis. His plan may or may not help, but your plan is irrelevant at this point. Try tackling another issue.

    December 6, 2007 09:00 am at 9:00 am |
  7. Raymond, El Paso TX

    Borrowers were dumb for taking a risk on the types of loans that were being offered.

    The mortgage industry was even more stupid because they ignored past loan qualification practices and the risks yet still made the loans.

    Investors were stupid because their greed made them take risks just to make a quick return.

    I think there's more than enough blame to go around but I'm willing to bet, in the end, corporate welfare will prevail and the American middle-class will be stuck with the bill ...again!

    December 6, 2007 09:03 am at 9:03 am |
  8. Bill Fairfax, Va.

    All of these subprime bailout plans are outrageous. Didn't people sign contracts? Can't our "leaders" see that this makes all those who opted for fixed rate mortgages look like dupes? Let the system work! Let housing prices drop to rational levels! Mind boggling...

    December 6, 2007 10:07 am at 10:07 am |
  9. xtina chicago IL

    No way should the government bail anybody out. These people sat down with the bank and signed all kinds of disclosures. If they didn't qualify for the loan, it should not have closed.

    Will the government next bail out people who have been "victimized" by high credit card rates?

    December 6, 2007 10:27 am at 10:27 am |
  10. Anonymous

    If she's for it now, she's against it later..

    December 6, 2007 10:54 am at 10:54 am |
  11. RIghtyTighty

    Oh..., and did you see that lovingly fatherly figure he displayed on Ellen's show.

    Personally, I was hoping he would threaten to send Dick down there to straighten Ellen out...., pun intended.

    December 6, 2007 11:57 am at 11:57 am |
  12. need more than bailout

    Since my arms were twisted when I purchased a house with subprime mortgage, I think the government should not only freeze my mortgage rate but also guarantee that my house should appreciate at least 20% a year. Since prices have doubled in the last 3 years in my area, it is only fair.

    December 6, 2007 11:59 am at 11:59 am |
  13. just wondering

    Mother hen is there to save you from personal responsibility – you signed into an adjustable mortgage – yep….she's there to save you from that – not paying your bills that you agreed to pay…yep….she's there for you too – didn't seek employment with a company that provides health benefits (i.e. Walmart, Staples, Starbucks) – yep…she's there to save you too…all with free money…because nobody has to pay for anything….its all free…and don't let those evil Republicans tell you that you have to take care of yourself….mother hen will….omg….whats wrong with you people??

    Posted By Chris, Middletown, CT : December 5, 2007 5:12 pm

    Hey Chris,
    Did you read the sentence in the article about how similiar her plan is to that of Pres. Bush? If you want to be critical of Hillary then shouldn't you critisize her copying Bush's plan instead of the plan itself..which..again is very similiar to Bush's plan.

    December 6, 2007 12:10 pm at 12:10 pm |
  14. Steve in SC

    WE love you Clinton. You are awesome. WE stand behind you w/our minds hearts and souls.

    Posted By Hillarylover in SA

    Funny, I heard the same praise about Saddam back in the day! I wonder who are the "WE" bacause it ain't "ME"! Can you say BAAAAAAAAH?

    December 6, 2007 12:12 pm at 12:12 pm |
  15. Kate, Aurora CO

    I know this sounds harsh and insensetive but personally I don't think people should be given any special assistance with their mortgages. In order to sign a mortage one has to be of legal age and able to read. No one was forced into a mortgage, they were greedy and drove up the market so much that people like me (who knew better) could not afford a home. I did my homework and saw what a bad idea the adjustable mortgages were. I met with lenders but knew that what they were saying (I could get a $650K home) was not right, so I left. What happened to personal accountability? I feel no sympathy for people who didn't bother to do the math or read between the lines. They bought into a home they could not afford and now must face the consequences of their selfish decisions.

    December 6, 2007 12:13 pm at 12:13 pm |
  16. Fred Hermans, Neshanic Station NJ

    Hillary:
    News flash: Wall street did not lead people down the path to foreclosure! They went willingly and on their own!

    In this market place of full disclosure there is no way Wall street can be held accountable for an individual's greed and poor judgment.

    This is nothing more then another SLICK way to bye votes and further a socialist agenda.

    I'd rather have a Mormon then a Moron in the White house. I'm not sure of her religious leaning but I have yet to see Hillary attend church in Utah!

    December 6, 2007 12:33 pm at 12:33 pm |
  17. Matt McComb, San Francisco, CA

    I am actually curious to hear the reasoning for why people think this plan is a good idea. I see a lot of "yay Hillary, way to support the American people!"...but she's not. Not really.

    This plan will bail out people who made bad financial decisions with money out of the pockets of people who made good ones (by not buying houses they couldn't afford). I didn't buy a house over the last couple of years, even though I could have gotten a mortgage to do so, because I knew that I couldn't afford it in the long run. Am I just out of luck; did I miss the freebie house party?

    This plan rewards people for going way too deeply into debt to buy something they could not afford on their income. Why should that sort of irresponsible financial behavior be rewarded? Can anybody answer me that question?

    December 6, 2007 01:28 pm at 1:28 pm |
  18. Glenn, McKinney,TX

    Make no mistake: ALL subprime bailout proposals are ONLY FOR THE BENEFIT OF THE FINANCIAL INSTITUTIONS. You'll hear about "compassion for the people" on the campaign trail, but anyone behind on payments is still screwed. And anyone that isn't, could refinance on their own. Foreclosure is more costly for the banks than collecting a reasonable amount of interest. Too bad that concept eluded them in the beginning. It's really just another case of Corporate Greed, and everyone looking the other way, as long as they get their piece of the pie.

    Remarkable teamwork though: Billary initiated Banking Deregulation, Bushco passed new Bankruptcy Laws, and viola! The stage was set for the appearance of prosperity and the consolidation of wealth to the elite.

    Mortgage Lenders approved excessive loans. Sliced, diced, sold & resold them so that investment risk was hidden. Rating Agencies were either inept at their job, or complicit. Money pours in, stocks go up, and everyone is happy until loans start defaulting, and liabilities start being valued properly on the books.

    Citicorp, the world's largest corporation in terms of assets, has some experience with this. They helped Enron with their accounting methods. Believe it or not, Enron is actually suing Citicorp.

    THERE IS NO HONOR AMONG THIEFS.

    December 6, 2007 01:37 pm at 1:37 pm |
  19. Surrealist, Fort Myers, FL

    Steve in Chicago says: "This plan only hurts you unless you bought more house than you could afford and financed with an adjustable rate that is about to overextend you."

    Steve–How narrow minded. The people who qualified for these loans had to meet the same income qualifying trials that all of us do. Fact is we have a sick economy..and nobody wants to really believe it. Steve, do you really believe that the weekly unemployment/jobless rate which is spoon fed us by the government actually depicts our employment robustness? If you do, then you are the sheep!! Fact is 40% or more of American workers(buying homes and what not) are not full time but part time workers. As you are aware a worker must be employed full time for at least 12 months to apply for unemployment benefits. Care to hazard a guess as to how many can't or don't apply for unemployment? That being the case–you're looking at a TRUE picture of unemployment nationwide that is closer to 7% than 3%. Also–statistically speaking–workers who are laid off or eliminated due to closures, or "cost cutting", outsourceing typically return to employment at LESS money than they were making previously. Given a more realistic example of what's been happening on the "street" in our economy, mabye you'll change your pompous tone some...and pull just a little of your head from the sand.

    December 6, 2007 03:15 pm at 3:15 pm |
  20. Paul NY NY

    Wow...she comes up with a good plan to help people and the Obama and republican trolls come out en mass to post negetive comments...Interesting.
    The desperation comforts me , it means they are scared to death of a Clinton win.

    December 6, 2007 04:36 pm at 4:36 pm |
  21. Ethan, Ohio

    This plan is horrible, we are bailing people out for signing a bad mortgage with no money down. Most of the people that are getting forclosed on were speculating on the houses and flipping them anyway. The rest of the people got to live in half million dollar homes for 2 years paying less per month than I am for rent right now. This shouldn't be allowed and the market should correct for people not properly reading the fine print and taking improper risks.

    December 6, 2007 04:47 pm at 4:47 pm |
  22. Tannim

    Thanks, Hillary, for bailing out the morons who went ARM and couldn't make the payments, while leaving those of us who went fixed with payments we can make being screwed by the effects on the market. Thanks for rewarding the fools. Thanks for not rewarding us smart folks who saw this coming and took steps to avoid it and are watching out equity and home value go down the toilet because of these fools and how they screwed the entire market. Where's the protection of our equity and home value? When I sell, will I wind up upside-down in my mortgage because of this, and where's MY relief for this? If anything, because I and people like me had the foreknowledge of this coming and avoided it, we're the ones who should get the relief, not the fools who went into a house they could not afford. We're the real innocent victims here, where's our relief???

    December 6, 2007 04:58 pm at 4:58 pm |
  23. pam Eugene, OR

    This bail out is a bad plan. It doesn't matter if it is the Bush plan, The Clinton (Bush lite)plan or the plan Obama came up with a few months ago. It is bad business! You have several thousand greedy people who took out loans they could not afford planning that they could sell these homes at an inflated value before the ARM came due. All they did was run up housing costs so high normal people can't afford a home any more. They signed the contracts and I assume they read them and they should be on their own to work this out. I lost 50% on my bank stocks because of this mess. Is the government going to pay me back? No, I think not.
    Let's see some personal responsibility folks.

    December 6, 2007 06:39 pm at 6:39 pm |
  24. Heather Jones

    I think Hillary is well experienced, intelligent, worldly and sound. I am going to vote for her. It will be nice having a woman run the show for once.

    December 6, 2007 10:14 pm at 10:14 pm |
  25. David Allen Linkenheimer - East Brady, Pa.

    You can bet that Hillary will never suggest that the debtors pay off their "credit bankers" with "Public Office Money Certificates" like Jessie M. Snyder did... See: U.S.A. v. Jessie M. Snyder and the Butler County Tax Claim Bureau at 2:07-cv-0331, United States District Court for Western Pennsylvania at Pittsburgh.
    She paid directly to the Treasury and it caused Secretary John Snow to resign to avoid having to make a determination as to the "Substance of the Money".
    It is all a matter of public record in the federal court file..

    December 7, 2007 10:22 am at 10:22 am |
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