February 19, 2008: CRC Testifies before Senate Banking Committee

On January 16, 2008, the California State Senate Banking, Finance and Insurance Committee held an informational hearing entitled "Analysis of Foreclosure Avoidance Plans." CRC was asked to testify along with housing counseling agencies, advocacy groups, lenders, and loan servicers.
Robert Mooney, FDIC Special Advisor to Chair Sheila Bair, began outlining the FDIC's strong proposal for loan servicers to modify loans for the long term and at on a broad scale.
CRC Associate Director Kevin Stein testified to: 1) CRC's analysis finding that lenders are failing to modify loans and help borrowers remain in their homes; 2) the limitations of the Governor's proposal to promote loan modifications; 3) CRC's California Home Ownership Preservation $5 million fund to build capacity of nonprofit home loan counselors; and 4) the need for state legislation to promote loan modifications, reform the foreclosure process, and prohibit abusive lending practices.
CRC, Center for Responsible Lending, and Greenlining Institute all raised concerns about Countrywide and its proposed acquisition by Bank of America. The voice of homeowners at risk of foreclosure was well represented by Gabe del Rio of Community Housing Works San Diego, Pam Canada, of Neighborworks Sacramento, and Martha Lucey of ByDesign Financial Solutions. CRC hopes that hearing will lead to much needed legislative solutions to the foreclosure crisis.