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Mortgage Lending Reform

 

What's New

The legislature has given the Governor one more chance to fix the glaring problems with the way mortgage brokers do business.  For the second year in a row the legislature voted to pass AB 260, a mortgage reform bill aimed at reining in the abusive practices of brokers and banks.


AB 260 is the only legislation the state has passed that deals with the causes of the mortgage crisis.  Last year the Governor vetoed the same bill citing an uneven playing field for banks and brokers based in California. 

This year we are working to make sure the Governor realizes that California has suffered more than any other state and that we require stronger rules to prevent the easy money mentality that caused this mess. 

The state legislature has done its job now it is up to the Governor to protect California.

 

Mortgage Bill Press Release.



How You Can Help

Take action.

Gov. Schwarzenegger and the California Legislature have the opportunity to make sure a mortgage meltdown like the one we are in right now does not happen again. Call on the governor to support legislation to prevent another lending mess and tell him your mortgage story.  



Overview

By now, most of us have heard about the mortgage lending crisis—and the big spike in foreclosures—that’s dragging down our economy. 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 are 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 is fighting these reforms tooth and nail.

What’s more, we haven’t even seen the worst effects of the mortgage meltdown here in California. With more than 500,000 homes in danger of foreclosure in the next year we need to make sure there are regulations in place to ensure something like this never happens again. All of California will suffer for the irresponsibility of the mortgage lending industry.  


California is set to address the mortgage meltdown, which is causing a huge number of foreclosures. 

 

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