California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

A mortgage rescue bill passed the U.S. Senate on a 63-5 vote Friday. It’s
designed to prevent foreclosures, stabilize the declining housing market,
and reform the government-sponsored enterprises Fannie Mae and Freddie
Mac to stabilize the secondary mortgage market.

It includes a measure by California Sen. Dianne Feinstein to establish minimum
national licensing and oversight standards for mortgage brokers and lenders.
“Simply put, the only way to crack down on … abuses is to ensure that brokers and
lenders meet basic standards and earn a license. This legislation does exactly that,”
says Ms. Feinstein.

But the legislation would also ban seller-funded down payment assistance, a move
blasted by Sacramento-based Nehemiah Corporation of America. “This decision turns
a blind eye to the overwhelming success of these programs and their role in helping
hundreds of thousands of working families become homeowners,” says Scott Syphax,
president and CEO of Nehemiah.

The bill now goes to the House of Representatives where it’s expected to get an
extensive rewrite. President George W. Bush has said he would veto it in its present
form.

I am Tim Johnson and this has been the California Business Minute.