2008 Woodie Awards
Clinton wants to help lenders, exaggerates on Bosnia trip
Clinton calls for legal protections for honest mortgage
By: THE ASSOCIATED PRESS
Issue date: 3/25/08 Section: Nation
PHILADELPHIA - Democrat Hillary Rodham Clinton proposed several remedies to the nation's home mortgage problems yesterday, including one tool more often associated with Republicans than Democrats.
The New York senator proposed greater protections for lenders from possible lawsuits by investors, a variation of so-called tort reform. For years, GOP leaders have called for restrictions on what they consider unwarranted lawsuits against businesses. Democrats have often resisted them on grounds they limit injured parties' legitimate rights to redress.
"Many mortgage companies are reluctant to help families restructure their mortgages because they're afraid of being sued by the investment banks, the private equity firms and others who actually own the mortgage papers," Clinton said in what she billed as a major address on the economy at the University of Pennsylvania.
"This is the case even though writing down the value of a mortgage is often more profitable than foreclosing," she said. Clinton said she would offer legislation "to provide mortgage companies with protection against the threat of such lawsuits," but provided no further details.
Brian Deese, a Clinton economic adviser, said different categories of investors can have different interests in how a mortgage is handled.
The New York senator proposed greater protections for lenders from possible lawsuits by investors, a variation of so-called tort reform. For years, GOP leaders have called for restrictions on what they consider unwarranted lawsuits against businesses. Democrats have often resisted them on grounds they limit injured parties' legitimate rights to redress.
"Many mortgage companies are reluctant to help families restructure their mortgages because they're afraid of being sued by the investment banks, the private equity firms and others who actually own the mortgage papers," Clinton said in what she billed as a major address on the economy at the University of Pennsylvania.
"This is the case even though writing down the value of a mortgage is often more profitable than foreclosing," she said. Clinton said she would offer legislation "to provide mortgage companies with protection against the threat of such lawsuits," but provided no further details.
Brian Deese, a Clinton economic adviser, said different categories of investors can have different interests in how a mortgage is handled.
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