From the State Capitol today, Assembly Speaker Karen Bass and Assemblymembers Ted Lieu and Pedro Nava discussed plans Assembly Democrats are putting forward to address the home foreclosure crisis in the special legislative session. Speaking to reporters in the Willie Brown Jr. conference room, Speaker Bass made the following remarks:
“The foreclosure crisis has hit California particularly hard and has obviously been a major factor in the economic problems and budget deficit our state faces. California accounts for one-third of the nation’s foreclosures. During the third quarter of this fiscal year, the number of homes repossessed in California soared 228 percent over last year. That’s 79,511 more homes lost to people across California. And it threatens to drag our economy down even further.
“Earlier this year the legislature passed a bill that prevents lenders from initiating foreclosure proceedings until 30 days after contacting a borrower. We’re here today to announce the Assembly will be throwing out another lifeline to help keep more Californians in their homes. It’s the right thing to do and the right thing for our economy.
“The Assembly’s foreclosure relief legislation will: provide for a 120 day foreclosure moratorium after a default notice has been filled for a borrower’s primary residence, require borrowers to make reasonable payments during the 120 day workout period, provide more flexibility and modification options for loan servicers, make sure loan modifications are consistent with the FDIC program, include tough transparency and accountability provisions so the legislature will know the program is working as intended.
“This legislation builds on the strong effort the Assembly made to address the foreclosure crisis earlier this year. We believe it is a stronger approach than what the governor has proposed and thereby will save more homes and homeowners – and do more for California’s economy.
“In times as tough as these 120 days just makes more sense than 90 to resolve issues and rework loans.
“Leading the Assembly’s efforts will once again by Assemblymember Pedro Nava, Chair of the Assembly Banking & Finance Committee and Assemblymember Ted Lieu, Chair of the Rules Committee, and author of AB 1830, one of the nation’s premier foreclosure bills – which, unfortunately, was vetoed by the governor this fall.”