California Governor Schwarzenegger Applauds Federal Agreement to Provide Additional Financial Support to U.S. Mortgage Market

03/19/2008 -- California Governor Schwarzenegger today issued the following statement on the agreement among the Office of Federal Housing Enterprise Oversight, U.S. Department of Treasury, Fannie Mae and Freddie Mac to provide additional support to the U.S. mortgage market:

"Today’s agreement is another welcome step towards stabilizing the mortgage market. There is no silver bullet that will resolve all aspects of the mortgage crisis, but this additional liquidity will provide much needed access to capital for many American families.

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"Californians have been affected by the crisis more than most Americans as they struggle to find sound and affordable home financing. And because the cost of housing in California greatly exceeds that of similar homes elsewhere, we renew our call on Congress to make the temporary increases in loan limits for Fannie Mae, Freddie Mac and FHA permanent."

To help those hit hard by the mortgage crisis, the Governor has:

* Led effort urging Congress and the Bush Administration to raise federal loan limits. Last fall, the Governor sent a letter calling on Congress to increase those limits and sent a similar letter again earlier this year. After Congress and the President approved a temporary increase, the Governor asked them to make the increase permanent. In February, the Governor met with U.S. Department of Housing and Urban Development Secretary Alphonso Jackson in Washington D.C. to reiterate the importance of a permanent loan limit increase.
* Announced $69.5 million in permanent low-interest loans from the Proposition 1C housing bonds to jumpstart 14 affordable multi-family projects up and down the state, helping more than 1,000 California families and individuals realize the dream of an affordable rental home.
* Announced more than $72 million in federal HOME Investment Partnerships Program funds to provide assistance to first-time homebuyers, reduce the number of bank owned homes and increase the number of rental properties.
* Joined the OneCalifornia Foundation to announce a bridge loan fund for homeowners facing foreclosure in Oakland.
* Launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
* Announced an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes.
* Signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities.

Source: California Governor