Controversy is swirling over plans in California to assist poor credit mortgage lenders. This state has been hit particularly hard by the housing crisis and many poor credit mortgage lenders have already gone out of business after foreclosure rates skyrocketed and loans defaulted. Many are upset over this decision and although nothing is concrete as of yet, people are up in arms over the mere possibility that these poor credit mortgage lenders will be getting assistance. For those hit the hardest by the housing crisis, the homeowners, this plan will offer little help, since many are already deep in the midst of foreclosure proceedings or unable to get the help that they need to get a better loan.
“This is all about bailing out the subprime lending industry,” said Jean Ross, executive director of the California Budget Project, a nonprofit that advocates for low-income Californians in the state budget process. “They will have checks written to them by the state of California if this goes through.”
“I can’t comment on what’s being discussed in budget negotiations, but Republicans won’t support anything that hurts our economy,” said Assembly Republican Leader Mike Villines of Clovis.
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