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Press Release

11/28/2007   GAAS:933:07   FOR IMMEDIATE RELEASE   Print Version |

Gov. Schwarzenegger Issues Statement Regarding U.S. Treasury Secretary’s Proposal to Reduce Foreclosures

Governor Arnold Schwarzenegger today issued the following statement regarding U.S. Treasury Secretary Henry Paulson’s meeting tomorrow in Washington, D.C. with mortgage loan participants.  At the meeting, Secretary Paulson is expected to ask for a streamlined approach to addressing up to two million subprime mortgage loans at risk of default upon rate reset over the next 12 to 18 months. 

“I am encouraged to see Secretary Paulson's proposal to nationally expand much-needed relief for borrowers and their communities which assists not only homeowners but our entire economy.

“Tomorrow, I will meet with local elected officials and community leaders in the Inland Empire, where one in every 43 households in Riverside and San Bernardino counties has a foreclosure filing.  There I will discuss a public awareness campaign urging homeowners at risk of foreclosure to reach out to their lenders. Both sides need to be proactive, and we want to see borrowers and lenders working together to avoid as many foreclosures as possible.”

Earlier this month, Governor Schwarzenegger announced an agreement with four loan servicers – representing 25 percent of the market – to streamline the loan modification process for subprime borrowers living in their home, making timely payments and likely to default when their loan jumps to a scheduled higher rate. All lenders are asked to subscribe to that agreement, which may be found at http://www.corp.ca.gov/notices/subprime.html.

 

 
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