ASSEMBLYMEMBER TED LIEU
53RD ASSEMBLY DISTRICT
For Immediate Release: January 22, 2008
Contact: David Ford
Phone: (916) 319-2053

Lieu: Dataquick’s Release of New Foreclosure Data Shows Schwarzenegger and Bush Plans Failing

The following statement was released today by Assemblymember Ted Lieu, Chair of the State Assembly Committee on Banking and Finance, in response to data posted by DataQuick, showing an increasing number of foreclosures in California:

“The stratospheric record number of foreclosures last quarter demonstrates that so-called ‘voluntary’ initiatives are failing in a big way.  The completely unrealistic voluntary plans promulgated by Governor Schwarzenegger and President Bush to address the mortgage crisis have been confronted with the cold, hard facts of reality.

A few months ago, Governor Schwarzenegger proposed, with much fanfare, a ‘voluntary’ agreement with a few lenders to engage in loss mitigation efforts (which they allegedly were supposedly already doing).  His plan has done little to stop California from experiencing an over 421% increase in foreclosures compared to a year ago, a new record high. 

The ‘voluntary’ Hope Now agreement that President George Bush has pushed, again with much fanfare a few months ago, has done little to stem the over 81,550 notices of default sent to California homeowners last quarter, also a new record high.  We learned today that ‘hope’ is not a strategy.

What we need is immediate action, not merely the issuing of voluntary guidelines that lenders and loan services can choose to follow or ignore.  Lenders and loan servicers also need to be far more transparent and accountable in providing data on how many homeowners, if any, they are helping.  That is one reason I introduced AB 69, which mandates lenders and loan servicers to provide on a monthly basis how many homeowners they are helping and in what way.

I call on Governor Schwarzenegger and President Bush to acknowledge that their voluntary plans are failing and for Governor Schwarzenegger to sit down with legislative leadership and have a real conversation about bringing mortgage lending reform to California.  One way for the Governor to show he is committed to real reform is to support the package of mortgage reform bills being introduced in the Assembly.”

For more information, please see http://www.dqnews.com/RRFor0108.shtm.