December 3, 2007 (LPAC)--In a letter to Treasury Secretary Henry Paulson made public today, Sen. Hillary Clinton became the first Presidential candidate of either party to call for a moratorium on the mass wave of home foreclosures sweeping across the United States. Although this is the number-one fighting issue of working- and middle-class living conditions facing Americans in the current financial breakdown, none of the Democratic or Republican aspirants have thus far said anything about it, while campaigning, or in the Senate. Rep. Chakah Fattah (D-PA) called for a six-month national foreclosure moratorium on Nov. 23. It is Lyndon LaRouche and the LaRouche Political Action Committee (LPAC) who have mobilized for months for both complete homeowner protection against foreclosures, and protection of Federally and state-chartered banks against the threat of closing because of mortgage and securities losses.

Senator Clinton's letter called for a freeze of "at least 90 days" on foreclosures of occupied homes, "until lenders and servicers have an opportunity to implement the freeze in mortgage rates." That refers to her second proposal: "Freeze the monthly rate on subprime adjustable rate mortgages, with the freeze lasting at least 5 years or until the mortgages have been converted into affordable, fixed-rate loans. After the moratorium, there should be a long freeze in rates on adjustable rate mortgages.... The long rate-freeze will give the housing market time to stabilize.... The rate freeze and loan modification must be extended not only to borrowers who are current but to some who have fallen behind."

Clinton's letter tells Paulson that if he and the big commercial banks, lenders, and investment banks come up with a "solution" to the foreclosures crisis that lacks these features, Clinton will pursue new legislation.