ASSEMBLYMEMBER TED LIEU
53RD ASSEMBLY DISTRICT
For Immediate Release: March 5, 2008
Contact: Ashlie Simpson
Phone: (916) 319-2053

Assemblymember Lieu Meets With United States Housing Secretary To Discuss Mortgage Crisis

Sacramento, CA – Assemblymember Ted Lieu, the Chair of the State Assembly Committee on Banking and Finance, today joined United States Secretary of Housing and Urban Development (HUD) Alphonso Jackson at both a private and a public meeting to discuss the Federal Government’s response to the mortgage crisis.  Also at the meetings were Los Angeles Mayor Antonio Villaraigosa and the Founder and CEO of Operation Hope, John Hope Bryant.

At the public meeting, Secretary Jackson announced a plan to raise the Conforming Loan Limit, which is used to determine which loans are eligible for Federal Housing Administration financing, to $729,000.  This will increase the loan limits for Los Angeles, Orange and Riverside Counties.  The three Southern California Counties have some of the highest home prices anywhere in the country, and have therefore been among the hardest hit areas by the ongoing subprime mortgage meltdown. 

Assemblymember Lieu hailed the moves: “I deeply appreciate that Secretary Jackson has recognized the need for higher limits in the ultra-expensive Southern California housing market.  This is a very positive step for our region.”

Secretary Jackson also discussed that several members of the Hope Now Coalition, a group of lenders who have agreed to help distressed homeowners retain their houses, are not meeting their voluntary commitments.  He indicated that he and US Treasury Secretary Henry Paulson would be “persisting” with those lenders to cajole them into matching their words with actions.

“I’m encouraged by the aggressiveness that Secretary Jackson and Secretary Paulson are showing in this matter,” Lieu said.  “This also shows the need for states to pass strong reforms like Assembly Bill 69,” Lieu said, referencing his bill which would require lenders to report data on their home retention efforts.