| WHAT: |
Assemblymember Ted Lieu, Chair of the Assembly Rules Committee, will present critical mortgage lending reform legislation in an Assembly hearing. Among other bills being heard will be AB 1830, a comprehensive act for mortgage lending reform. This bill would provide consumer protections for subprime mortgage loan products that will bring trust and stability back into the marketplace. |
| WHO: |
The Assembly Banking and Finance Committee will hear AB 1830 and other mortgage-related legislation. |
| WHEN: |
Monday, April 7, 2008
2:00PM – Hearing Begins
|
| WHERE: |
Assembly Banking and Finance Committee
State Capitol, Room 444
Sacramento, CA 95814
|
| BACKGROUND: |
Last year and this year have been marked by severe market disruptions in mortgage lending and a downturn in home prices. This was in part a result of several years of inadequate lending standards and increased access to exotic mortgage products that were designed for short-term use or for investment purposes. Unfortunately many first-time homeowners were steered into these unsuitable products with features that allowed them to defer principle on their loans, or in many cases, get into a home with no money down and very low teaser interest rates that would lead to future payment shock. The bills being heard on Monday will fundamentally reform the system to ensure a crisis of this magnitude does not happen again. |
|