Governor Arnold Schwarzenegger today highlighted the success of his Administration’s efforts to keep California residents in their homes during these difficult economic times, a year after he signed the California Foreclosure Prevention Act (CFPA), a law to promote affordable loan modifications for distressed homeowners who might otherwise face foreclosure.
“At the first signs of the foreclosure crisis, I jumped into action, and I am proud that my Administration’s efforts since then have facilitated the permanent modification of more than a quarter million mortgages in California,” said Governor Schwarzenegger. “As we begin to see signs of economic recovery, I know Californians are grateful that new laws, such as the California Foreclosure Prevention Act, have been enacted to help protect homeowners from this type of tragedy occurring on such a grand scale in the future.”
Since the Governor began his efforts to keep California residents in their homes, those efforts have facilitated the permanent modification of more than a quarter million mortgages in California, according to data from the Department of Corporations. From January 2008 to December 2009, a total of 282,717 total loan modifications were completed with nearly 146,000 being done just in 2009.
On February 20, 2009, the Governor signed CFPA into law. The act precludes a lender or servicer from filing a notice of sale for an additional 90 days unless the lender or servicer has a comprehensive loan modification program approved by regulators.
CFPA built upon Governor Schwarzenegger’s previous efforts to stabilize the state’s housing market and assist Californians hit hardest by the foreclosure crisis, which include:
· In 2007, seeing signs of the impeding mortgage and foreclosure crisis, the Governor forged an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes.
· In 2007, the Governor launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
· In 2007, the Governor established the Interdepartmental Task Force on Non-traditional Mortgages to ensure a comprehensive and coordinated approach to the issues raised by subprime loans.
· In 2008, the Governor aggressively lobbied the federal government to increase home loan limits permanently, and he succeeded.
· In 2008, the Governor 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 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.
· In 2009, the Governor signed a package of legislation to increase protections for consumers in the lending market and provide law enforcement with more tools to crack down on deceitful mortgage practices.
Source: Cal Gov