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Ted Lieu on the Economy
California is ground zero for home foreclosures. Foreclosures in this state account for approximately one-third of the entire nation's. In February 2009, California saw 80,775 foreclosure filings, the most of any state and a 5% increase from the prior month. This amounts to one foreclosure filing every 30 seconds. This crisis has devastated homeowners across California and the nation, put a gaping hole in the state budget and pushed our economy into a recession.
Ted Lieu has been a leader in California against the mortgage and foreclosure crisis and Wall Street’s excesses. Ted understands that this economic crisis connects us all - and we’re all vulnerable.
As Attorney General, he will continue to be an active force for a more stable California.
Stemming the Tide of Foreclosures
Ted is the author of one of the most comprehensive new laws in the nation to stem the tide of foreclosures and get our economy back on track. The California Foreclosure Prevention Act imposes a 90-day foreclosure moratorium unless a lender offers a comprehensive loan modification program to keep people in their homes.
“The problem is not that people can’t buy homes, the problem is we can’t keep people in their homes.”
Expanding Federal Homeowner Relief Programs
Ted leads the effort in California to expand federal programs that help more distressed Californians refinance their home loans. He has pushed federal officials, including Federal Reserve Chair Ben Bernanke, FDIC Chair Sheila Bair and Fannie Mae CEO Herb Allison, to increase the loan-to-value limitation, helping those who live in high-value states like California.
“People should be able to refinance their homes based upon their ability to make a payment, not primarily because their home value happened to drop.”
Reforming Subprime Loans
Ted is working to create a more stable lending industry and offer more protections for borrowers in California to prevent this crisis from ever happening again. Ted’s landmark legislation, AB 260, will enact comprehensive mortgage reforms to California’s subprime market, including creating a strong fiduciary responsibility for mortgage brokers across all loan products.
“We need to reform this broken mortgage system. Enough is enough.”
Ted Lieu’s Economy Legislation
ABx2 7 – Creates the California Foreclosure Prevention Act
AB 69 – Requires banks to report on loan modification efforts
AB 180 – Helps with the regulation of foreclosure consultants
AB 260 – Provides comprehensive mortgage reform
AB 350 – Looks at the regulation of individuals who help consumers settle debt
AB 550 – Introduces the California Financial Literacy Initiative
AB 1538 – Offers home loan refinance assistance
AB 1606 – Develops a state investment strategy
AB 1950 – Includes financial literacy in high school economics
AB 2032 – Increases the Research & Development Tax Credit
AB 2033 – Offers a tax credit for the new space shuttle, the Crew Exploration Vehicle