A Conference Committee comprised of members of the Senate Committee on Banking, Housing and Urban Affairs and House Committee on Financial Services continues to negotiate a final conference report on the Federal Housing Administration Modernization Act. 

To help those hit hard by the mortgage crisis, the Governor has:

·       Led efforts urging Congress and the Bush Administration to raise federal loan limits.  Last fall, the Governor sent a letter calling on Congress to increase those limits and sent a similar letter again earlier this year.  After Congress and the President approved a temporary increase, the Governor asked them to make the increase permanent.  In February, the Governor met with U.S. Department of Housing and Urban Development Secretary Alphonso Jackson in Washington D.C. to reiterate the importance of a permanent loan limit increase.

·       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.

·       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.          

·       Signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities.

·        Issued new regulations to protect borrowers, which requires lenders to consider a borrower’s ability to repay at the higher reset interest rate and mandates closer scrutiny of risk features such as interest only payments, reduced documentation and simultaneous second liens.

·        Established the Interdepartmental Task Force on Non-traditional Mortgages to ensure a comprehensive and coordinated approach to the issues raised by subprime loans.