12/30/2008 GAAS:851:08 FOR IMMEDIATE RELEASE Print Version |
Governor Schwarzenegger Issues Statement Following Federal Reserve Announcement
Governor Arnold Schwarzenegger today issued the following statement on the Federal Reserve’s announcement that it will begin purchasing up to $500 billion in mortgage-backed securities:
“The way to stop the bleeding in our economy is to address the source of the wound - our housing markets. The Federal Reserve is doing exactly the right thing by beginning to purchase mortgage-backed securities. This will likely lead to lower mortgage rates throughout the country and improved conditions in our financial markets - and that means keeping families in their homes and improving access to credit. The mortgage crisis hit California hardest, which is why we have taken a series of steps to help California families stay in their homes; this is one more tool to get our economy back on track.”
California has been impacted more than any other state by the national home foreclosure crisis and has taken aggressive steps to help homeowners facing problems with their mortgages. To help those hit hard by the subprime mortgage crisis, the Governor has:
- Announced an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes
- Signed legislation to help protect homeowners by requiring a mortgage holder to provide a 30-day notice to a borrower prior to filing any default notice leading to the foreclosure. The new law also provides tenants of foreclosed properties a minimum of 60 days notice to move and requires holders of foreclosed properties to maintain the property.
- Launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
- Established the Interdepartmental Task Force on Non-traditional Mortgages to ensure a comprehensive and coordinated approach to the issues raised by subprime loans.
- 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.
For more information on homeownership issues in California, please visit http://www.yourhome.ca.gov/ and the Spanish language version: http://www.sucasa.ca.gov/.
