Overview

While there is plenty of blame to go around for the mortgage meltdown, there are a couple of things we can all agree on. We need to take action now to prevent the next crisis, and we need to get rid of abusive lending practices.

If you work hard and save money, you should be able to buy a house- it’s part of the American dream. But in California consumers were not as protected from unsound lending practices as they should be.  

We need to protect homeownership by making sure brokers act in the interest of their clients, requiring lenders to honestly assess a borrower’s ability to repay, and getting rid of unreasonable fees and penalties. Unbelievably, the mortgage lending industry fought these reforms tooth and nail.

Fortunately, the legislature and the governor sided with consumers over industry in this case.  The economic crisis continues, and it will take time to rebuild.  But thanks to the efforts of CALPIRG, the new wave of homeowners that will revive the economy will be protected by the tougher rules enacted here in California.