Friday, January 25, 2008

CA Lawmakers Work to Solve Mortgage Crisis

SAN FRANCISCO (KCBS) -- California lawmakers are now taking new steps to deal with America's growing mortgage crisis.
Next week, they'll consider a package of bills designed to protect California homeowners, especially those in danger of losing their houses.

The state legislature will try come up with new laws designed to ensure that everyone who applies for a mortgage in California is told exactly what it's going to cost.

One of the biggest supporters of these mortgage bills is East Bay Assemblywoman Loni Hancock.

”I think it’s very much in their interest to work with the people that are taking out the loans and keep the American dream of home owning a dream, and not let it turn into a nightmare,” said Hancock.

California is now facing a huge budget gap as a result of the mortgage crisis and a lackluster economy.

Last week, Governor Arnold Schwarzenegger declared a fiscal emergency and unveiled a controversial budget plan. It would cut spending by billions of dollars in the next 18 months, and would affect virtually every service the state provides.

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