Governor’s Mortgage Plan is One Small Step
Governor Schwarzenegger’s newest plan for the mortgage meltdown is an encouraging sign that he is truly dedicated to getting California out from under the collapsed housing market.
He will have the opportunity to add a big step to his hopefully unfinished list of projects if the legislature approves the comprehensive mortgage reform bill currently being debated. If the governor and the legislature want to claim credit for addressing the mortgage crisis they will need to add passing the proposed package to the steps already taken.
If we don’t address the lax lending standards that got us here in the first place, the governor 10 years from now could be in the same position the Schwarzenegger administration is in today.
It is unfortunate that it took a catastrophe of this magnitude to make lending industry reforms possible. Now is the best opportunity the governor and the legislature will have to prevent the next mortgage crisis before it starts.
