States are in the forefront of policymaking to minimize damage from the mortgage meltdown. President George W. Bush on Thursday (Dec. 6, 2007) announced a groundbreaking agreement with major lenders to temporarily freeze sub-prime interest rates that are set to rise, but California Gov. Arnold Schwarzenegger got there first: He unveiled a similar deal last month.
"(Bush's plan) essentially captures the same spirit of what we announced in Fresno a couple of weeks ago," Preston DuFauchard, the commissioner of California's Department of Corporations, said in a conference call after the president's announcement. Both plans are limited to borrowers current on their monthly payments but who will have trouble paying higher rates that kick in next year.
California is not the only state to address the crisis.
Their efforts come as the already bad mortgage problem is about to get worse. This year 1.5 million homes will enter foreclosure, the Mortgage Bankers Association reported Dec. 6, and more will do so next year.
Read the full report States Take Lead in Housing Crisis on Stateline.org's Web site.