Contact the Governor

    California Governor Arnold Schwarzenegger succeeded in getting 10 subprime loan servicers to sign a Subprime Loan Agreement committing them to streamline "fast-track" procedures to help keep subprime borrowers in their homes. The following mortgage companies signed the agreement:

Carrington Mortgage Services, Countrywide Home Loans, GMAC Mortgage, LLC, Home Loan Services, Inc., Homeq Servicing, HSBC Mortgage Services, Litton Loan Servicing, OCWEN Loan Servicing, LLC , Option One Mortgage, and Wilshire Credit

    But no information has been made available on whether the agreement has been successful. Mortgage counselors have reported to CRC that these mortgage companies are difficult to work with and are not modifying loans as they agreed to with the governor. The governor’s agreement is also limited to helping borrowers with subprime loans, and doesn’t include the hundreds of thousands of borrowers threatened with foreclosure because of Option Adjustable Rate Mortgages (ARM).

    Governor Schwarzenegger needs to do more to ensure the stability of California families and neighborhoods. Servicers need to be held accountable for rising foreclosures.

Contact the Governor today and suggest that he:
•    Require each loan servicer to publicly report on their compliance with the Subprime Loan Agreement, including the number of loans they’ve modified to help borrowers avoid foreclosure. This reporting should also include the types of loan modifications offered (i.e. was the interest rate fixed, and for how long?).

•    Expand the Subprime Loan Agreement to cover more borrowers, including the rising number of borrowers with option ARM loans, and those who have already fallen behind on their payments.

•    Use his bully pulpit to convene investors and encourage them to urge loan servicers to modify more loans and keep borrowers in their homes.

•    Encourage the legislature to pass strong anti-predatory lending legislation to prevent a future crisis.

•    Develop a user-friendly complaint process for homeowners experiencing difficulties working with their servicers.  

Contact the Governor Today:
Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
Phone: 916-445-2841
Fax: 916-558-3160