Gov. Arnold Schwarzenegger, R-Calif., has introduced a plan intended to bring down foreclosure rates by helping both borrowers and lenders modify existing home loans in ways that benefit both parties. The plan includes a 90-day stay of the foreclosure processes for each owner-occupied home subject to a first mortgage on which a notice of default has been filed.
Additionally, the governor has proposed changes to the way mortgages are brokered and originated to make lenders more accountable, guard against risky mortgages and prevent unsustainable bubbles from arising, according to the governor's office.
The plan is among the items the governor will prescribe for immediate action during the special session of the legislature he plans to call. That session is needed to address both a state budget revenue shortfall and a package of legislation to stimulate California's economy.
Schwarzenegger also plans to convene a housing summit in the beginning of 2009 to further craft modification and foreclosure abatement solutions.
Source: Office of Gov. Arnold Schwarzenegger