California: Subprime Lending

Legislation to help Californians ensnared in the subprime home loan foreclosure crisis was forwarded to Gov. Arnold Schwarzenegger's desk for signature or veto this week.

Senate Bill 1137, authored by senate President pro Tem Don Perata (D-Oakland) and Assembly Speaker Karen Bass (D-Los Angeles), would require lenders to contact property owners to attempt to avoid foreclosure, provide tenants additional time to move from a foreclosed property and mandate maintenance of foreclosed properties to diminish the impact on the value of neighboring homes.