Help Stop the Foreclosure Free-Fall!

Tens of thousands of California families have already lost their homes to foreclosure. Another wave of foreclosures in expected in 2010 as adjustable loan rates reset. Now is the time to enact real reform to stop the foreclosure freefall and ban abusive mortgage lending.

AB 260 (Lieu) will protect working families from predatory lending practices, and is currently awaiting the Governor's signature. Please tell the Governor to sign AB 260 to protect California families and stabilize the housing market.

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Subject:

Dear [ Decision Maker ],

(Edit Letter Below)

California leads the nation in foreclosures. Our families, our communities, and our state and local governments have seen the devastation caused by the foreclosure freefall. We must act now to ban the abusive lending practices that fueled this crisis.

According to the Wall Street Journal, in 2005, 55% of subprime mortgages went to borrowers with credit good enough to have qualified for traditional loans. Brokers got financial incentives from lenders to steer borrowers into the riskier, higher cost loans. Few understood or could afford the loans they were steered into and when rates set or penalties kicked in, far too many families lost their homes.

AB 260 (Lieu) will protect working families from such predatory practices with a number of important reforms:

-- It codifies a broker's fiduciary duty to the borrower to put the borrower's economic interests ahead of his or her own.
-- It prohibits mortgage brokers from steering borrowers to more costly loans.
-- It complements federal rules by capping the prepayment penalties on subprime loans to 2% in the first year and 1% in the second year.

I urge you to sign AB 260 into law.

Sincerely,
[Your name]
[Your address]

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