Obama says Clinton's housing plan helps rich

By Jeff Mason

SAN ANTONIO, Texas (Reuters) - Democratic presidential hopeful Barack Obama accused rival Hillary Clinton on Tuesday of rewarding the rich and hurting future mortgage seekers with her plan to end the U.S. housing crisis.

Clinton, a New York senator and former first lady, and Obama, a senator from Illinois, are highlighting their economic credentials to sway voters concerned about a possible recession and struggling to choose between two historic candidates.

Clinton, who would be the first woman president, honed in on the housing crisis in January, proposing the introduction of a 90-day moratorium on subprime foreclosures and an automatic rate freeze on subprime mortgages of at least five years.

Obama, seeking to counter criticism that his inspiring speeches emphasize style over substance, said Clinton's plan to freeze the monthly rate on existing adjustable rate mortgages did not target "struggling homeowners" who need help the most.

"It will reward people who made this problem worse but it will also reward people who are wealthy and don't need it," Obama, who would be the first black president, told a small group gathered to discuss the economy in San Antonio.

"A blanket freeze like she's proposed will drive rates through the roof on people who are trying to get new mortgages to buy or refinance a home," he said.

"Experts say the value of homes will fall even more, and even more families could face foreclosure."

Clinton spokesman Jay Carson said Obama's comments proved he was out of touch with average Americans.