The subprime meltdown has made its way into campaign speeches, thanks to one Sen. H. Clinton (D-NY).
Her proposals were a sign that America’s brewing housing crisis has become an issue facing candidates in the November 2008 election, with thousands facing the prospect of losing their homes because they accepted mortgages that are now too expensive.
The New York senator, on the campaign trail in New Hampshire, also proposed a $1 billion fund to supplement state programs that help homeowners catch up on mortgage payments, renegotiate loan terms or provide financial counseling.
She pressed for eliminating penalties for early repayment of mortgages, which are often associated with less traditional home loans to individuals who fall short of qualifying for prime loans and turn to more expensive subprime mortgages.
In other news, American Home Mortgage Investment Corp., the 10th-biggest U.S. home lender in 2006, filed for bankruptcy protection on Monday after freezing mortgage applications and laying off 90% of its workforce.
UPDATE 1-Clinton proposes crackdown in US mortgage market [Reuters]
American Home Falls Swiftly [Forbes]
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