State Data Shows Progress in Preventing Foreclosues
Governor’s Subprime Mortgage Agreement Succeeds in Preserving More Than 100,000 Homes
Sacramento, CA, March 9, 2009 – As highlighted in Governor Arnold Schwarzenegger’s weekly radio
address, the Department of Corporations today released new mortgage data that shows 136,785 mortgage
loan modifications occurred in California in 2008. The data demonstrates that the state has met the goal of
preventing 100,000 foreclosures for the year that Governor Schwarzenegger announced in his 2008 State of
the State address.
“Last January, the Governor highlighted the Subprime Mortgage Agreement we crafted with major lenders
to freeze interest rates for families at risk of losing their home to foreclosure,” said Corporations
Commissioner Preston DuFauchard. “We pledged to keep more than 100,000 Californians in their homes.
Today, through the innovative agreement adopted in November of 2007, it is clear that we have met that
“Loan Modifications are the best outcome for homeowners seeking to make their mortgage payments
affordable,” added Commissioner DuFauchard. “There have been other resolutions to mortgage issues, but
the modification of terms that result in affordable, sustainable payments is the outcome most likely to
prevent foreclosure and preserve home ownership for tens of thousands of families in California.”
The Department of Corporations’ Mortgage Servicer Survey reports the characteristics of the loan portfolios
of participating servicers and quantifies the success of the Governor’s Subprime Mortgage Agreement to
promote efforts at loan modifications for homeowners facing difficulties in paying their mortgage. Many of
the largest state-licensed mortgage lenders and servicers, including the ten who signed onto the Governor’s
Agreement, now participate in the survey representing more than half of the home mortgage market in
To view the latest loan modification survey results or find more information on the Governor’s Subprime
Mortgage Agreement, visit http://www.corp.ca.gov/press/news/SubprimeLending.asp.
The Department of Corporations (DOC) is California’s investment and financing authority and is responsible for the regulation, enforcement, and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending, residential mortgage lending, payday lenders, check sellers, bill payers, and debt reduction services. Consumers should contact the department to check on the status of the companies, investments or other services they are considering and the licensing status of the person. For more information, contact the Department’s toll-free
Consumer Resource Center at 1-866-ASK-CORP (1-866-275-2677) or visit www.corp.ca.gov.