Southern California Mortgage Crisis

KVCR-FM created this NPR news spot pertaining to the Southern California mortgage crisis. Listen to the segment here (approximately 6 minutes).

Click the arrow below to play.

CALIFORNIA FORECLOSURE PREVENTION ACT
91.9 KVCR – June 25, 2009
By Anthea Raymond

Loan modifications are on the minds of many in the Southland these days. And more are succeeding. Over the first three months of this year over 20-thousand modifications a month were reported to the California Department of Corporations, up from around 15-thousand in the previous year. A new law is designed to make lenders even more willing to modify loans It’s the California Foreclosure Prevention Act, which went into effect on June 15th.

The law was proposed by Governor Arnold Schwarzenegger to help prevent foreclosures, at least as many as possible. The Act extends the foreclosure process by an additional 90 days unless a lender or mortgage loan servicer is considered “exempt” by state licensing authorities — usually the California Department of Corporations. Reporter Anthea Raymond asked Kevin Stein, the Associate Director of the California Reinvestment Coalition, a consumer rights group, whether he felt the law will help homeowners struggling with mortgages.