Dems on rate freeze: Not enough

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A sneak preview of tomorrow’s reaction to the Bush rate freeze plan: Democrats will likely line up to criticize the plan as not going far enough to help sub-prime borrowers.

Sen. Hillary Clinton is still pushing a freeze on foreclosures: ‘A satisfactory agreement must do at least the following: impose a moratorium on foreclosures, freeze mortgage rates before they escalate, and require that the mortgage industry report its progress on loan modifications,’ she said this week in a letter to Treasury Secretary Paulson.

John Edwards is pushing a seven-year rate freeze, and, The New York Times reports, ‘a change in bankruptcy laws that would give homeowners far more bargaining power in negotiating new terms.’

Senator Obama? Again from the NYTimes, Obama ‘jumped ahead of many of his Democratic presidential rivals in September with detailed recommendations that included a government rescue fund, changes in bankruptcy law and a new tax credit on mortgage interest for people who do not itemize their taxes and cannot currently deduct their interest payments.’

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Photo Credit: Sen. Hillary Clinton (left) and Sen. Barack Obama (right), AP