Frank Not So Keen On Hillary's Economic Plan

Hillary Clinton’s presidential campaign is taking full advantage of the stimulus fever on Capitol Hill. Just today, it released a “fact sheet,” listing accolades showered upon the stimulus plan she drafted.

But the top House Democrat in charge of financial matters believes a key plank of her plan is a bad call.

“The notion of a federal moratorium on foreclosures, I think, does not work,” House Financial Services Chairman Barney Frank said at a press conference Thursday.

First, it’s not a situation in which federal authorities have any jurisdiction, the Massachusetts Democrat observed, Second, it would be too hard to differentiate who should get help.

While he did not mention the New York senator by name, her stimulus plan starts with a 90-day moratorium on subprime foreclosures.

Frank did say he’s working with Sen. Chris Dodd (D-Conn.) on an idea, floated by Dodd Wednesday, to create a federal entity to buy distressed mortgages from investors and modify them into more affordable loans for homeowners, as well as a separate plan for the government to buy foreclosed homes and get people into them.

“It is clearly important to go beyond where we are now,” Frank said.