Governor’s Mortgage Plan is One Small Step
Governor
Schwarzenegger’s newest plan for the mortgage meltdown is an
encouraging sign that he is truly dedicated to getting California out
from under the collapsed housing market.
He will have the
opportunity to add a big step to his hopefully unfinished list of
projects if the legislature approves the comprehensive mortgage reform
bill currently being debated. If the governor and the legislature want
to claim credit for addressing the mortgage crisis they will need to
add passing the proposed package to the steps already taken.
If
we don’t address the lax lending standards that got us here in the
first place, the governor 10 years from now could be in the same
position the Schwarzenegger administration is in today.
It is
unfortunate that it took a catastrophe of this magnitude to make
lending industry reforms possible. Now is the best opportunity the
governor and the legislature will have to prevent the next mortgage
crisis before it starts.
