Dec. 3 (Bloomberg) -- Democratic presidential candidate Hillary Clinton called for a 90-day moratorium on foreclosures for homeowners who default on subprime mortgages.

The New York senator, is also seeking a five-year freeze on the monthly rate for subprime adjustable mortgages and a requirement that the industry report how many mortgages have been modified. In a letter to Treasury Secretary Hank Paulson, Clinton said she may consider legislation to protect lenders from lawsuits and let them convert certain mortgages into ``stable, affordable loans.''

Paulson and Treasury officials are trying to craft an agreement with lenders to prevent a surge in defaults in the $11.5 trillion mortgage market. Clinton said any deal should include the provisions she has suggested.

``The administration and the mortgage industry must reach an agreement that matches the scale of the problem,'' Clinton, 60, said in the letter released by her campaign today. ``If you produce an inadequate agreement, or fail outright, the cost to our economy will be incalculable.''

Clinton also proposed a fund of as much as $5 billion to help communities suffering from high rates of foreclosures. The moratorium on foreclosures would be at least 90 days and only apply to owner-occupied homes.

To contact the reporter on this story: Kristin Jensen in Washington at kjensen@bloomberg.net

Last Updated: December 3, 2007 10:50 EST