Hi Desert Real Estate Forum

California Gov. Arnold Schwarzenegger is prepared to propose a 90-day ban on foreclosures.

The program would give borrowers and lenders enough time to find a solution to their problems or work out a modification to the loan, authors of the bill say.

Schwarzenegger says his plan is better than the one President-Elect Barack Obama plans to propose because it offers a “safe harbor” to mortgage lenders. Lenders that could prove they have offered a robust modification program could avoid having a stay put on individual foreclosures, says David Crane, an adviser to the governor.

Schwarzenegger, who will explain the total program on Thursday, is expected to seek tougher licensing requirements for loan originators and to ask to allow the state Department of Real Estate and Department of Corporations to enforce federal laws and regulations regarding the Truth in Lending Act.

Source: Reuters News (11/05/2008)

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