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Clinton Seeks Aid For At-Risk Homeowners

August 7, 2007, 2:40 PM

Clinton Seeks Aid For At-Risk Homeowners
Senator Hillary Rodham Clinton is calling for a $1 billion federal fund to help homeowners avoid foreclosure.

The New York Democrat is also proposing penalties against mortgage brokers who engage in predatory lending. Speaking in Derry, New Hampshire, the front-runner for her party's presidential nomination said its time to "acknowledge we have a real challenge and confront it head-on with real solutions."

Weak home prices and rising interest rates have made it increasingly difficult for borrowers to keep up with their
payments, pushing delinquencies and foreclosures sharply higher.

Yesterday American Home Mortgage Investment, the nation's tenth-largest mortgage lender, filed for bankruptcy protection. Two other mortgage lenders have said they are not accepting new applications.

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