Hillary Clinton Statement on Her New Legislation to Fight Foreclosures

Today I introduced the Mortgage Refinancing Initiative Act, legislation that will enable state housing finance agencies to help tens of thousands of families refinance unworkable mortgages and avoid foreclosures. This is a policy I proposed last October, and which President Bush called for three months and several hundred thousand foreclosure notices later.

"The legislation I introduced today will temporarily modify the Mortgage Revenue Bond program to allow state housing agencies to use the proceeds of tax-exempt bond issuances to facilitate mortgage refinancings. State housing agencies will be able to commit up to $10 billion over two years to refinancing unworkable mortgages. States will high foreclosure rates will receive the greatest assistance.

"For nearly a year I have called for action on the foreclosure crisis that is devastating communities, shaking our economy, and putting the financial security of millions of families at risk. 1.3 million households received foreclosure notices last year. Mounting foreclosures are adding to the weakness in house prices, and therefore even families not at risk of losing their homes are affected. The decline in home prices has already cost families an estimated $1.6 trillion. We cannot jumpstart our economy without tackling the foreclosure crisis.

"In addition to today's legislation, I have a comprehensive plan to address the foreclosure crisis. Specifically, I have proposed a 90-day moratorium on subprime foreclosures, a 5-year freeze in rates on subprime adjustable rate mortgages, and $30 billion in assistance to states and communities to fight foreclosures and offset the costs associated with mounting vacancies."

Leaders and Experts Comment on Hillary's Legislation and Plan to Fight Foreclosures

"For nearly a year now, Senator Clinton has been calling attention to the foreclosure crisis and proposing bold ways of addressing it. The legislation she introduced today is a sensible and cost-effective way of cutting foreclosures. In addition, I believe that her call for a 90-day moratorium on subprime foreclosures, a 5-year freeze in rates on subprime loans, and a $30 billion fund to help states fight foreclosures, is the right approach for tackling the mortgage crisis." -- Jon Corzine, Governor of New Jersey

"A natural outcome of your bill is that more individuals and families would be able to stay in their homes without the threat of foreclosure. Refinancing existing loans to more affordable rates and prices that are based on current market information will be a boon to families that face very high interests rates -- and very high payments -- on existing adjustable mortgages." -- Richard F. Gaylord, President, National Association of Realtors