California Assembly Speaker Fabian Nunez is calling on the governor to declare a special legislative session to immediately deal with the sub-prime lending crisis.
Nunez : California is ground zero for home foreclosures. One out of every 88 homes that are foreclosed in this nation are here in California.
Nunez says the foreclosure problem is causing the state to lose billions of dollars in sales and property tax revenues. He and other Democrats are behind legislation that would only apply to new loans. Their proposals would ban pre-payment penalties that prevent borrowers from refinancing and end incentives for lenders to push sub-prime loans onto prime qualified buyers.
The head of the California Association of Mortgage Brokers says abuses of such loans should be addressed. But he cautions that adjustable rate loans have served some homeowners well.
