2008 NATIONAL GOVERNORS ASSOCIATION TRIP PRIORITIES
Permanent Increase Helps Tackle State's Subprime Mortgage Crisis
"While this [economic stimulus plan] includes a temporary
increase to limits for secure government loan products, I will continue to
encourage Congress to make this important economic relief permanent." - Governor Schwarzenegger, Statement, 2/13/08
Today Governor Schwarzenegger will be in Washington D.C.
for the annual National Governors Association Winter Meeting. As part of his
trip, the Governor will be meeting with White House and key administration officials
to push for action on important federal priorities for California. Considering no other state has
been more impacted by the ongoing subprime mortgage crisis than California, the Governor
will use this trip to continue to call for federal support to reverse the
state's housing slump. While the temporary increase to the federal home loan
limits included in the recently signed economic stimulus package helps reduce
foreclosures and allows more people to achieve the American dream with solid,
responsible loans, the Governor will be calling on the federal government to
make this increase permanent.
The Governor is calling on the federal government to permanently raise
federal home loan limits. While the federal economic stimulus plan
recently signed by the President increases home mortgage loan limits to 125
percent of the median home price in high cost areas, from $417,000 to up to
$729,500, the plan only raises limits temporarily through the end of the
year.
- To make the increased loan limits permanent, Congress must pass comprehensive reform legislation before the end of the year. No single action has a more positive effect on California's economy than expanding the availability of safe and affordable mortgages to more California homeowners and it is time to permanently raise these limits.
In California, to help those impacted by the subprime mortgage crisis, the Governor has:
- Awarded $73 million for affordable housing projects in Proposition 1C and Proposition 46 funds to help more than 1,600 California families rent or purchase affordable housing and announced $5.6 million to help mortgage and banking industry workers laid off as a result of the subprime crisis make career transitions to high-demand jobs in other industries.
- Announced $69.5 million in permanent low-interest loans from the Proposition 1C housing bonds to jumpstart 14 affordable multi-family projects up and down the state, helping more than 1,000 California families and individuals realize the dream of an affordable rental home.
- Announced more than $72 million in federal HOME Investment Partnerships Program funds to provide assistance to first-time homebuyers, reduce the number of bank owned homes and increase the number of rental properties.
- Led a town hall meeting with U.S. Treasury Secretary Paulson in Stockton to discuss help for homeowners facing foreclosure.
- Joined the OneCalifornia Foundation to announce a bridge loan fund for homeowners facing foreclosure in Oakland.
- Launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
- Announced an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes.
- Established the Interdepartmental Task Force on Non-traditional Mortgages to ensure a comprehensive and coordinated approach to the issues raised by subprime loans.
- Signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities.
