The Silence from California is Defeaning

Over the last few weeks and months more and more coverage has been given to the problems in the mortgage and housing markets. As a response many state legislatures and the federal government have made moves to address the problems being uncovered in the mortgage industry. Consider the following:

• Federal Reserve issues guidance on subprime lending
• Ohio investigates ratings agencies
• Colorado passes new legislation (PDF) regarding low-documentation loans
• Washington and Florida issue notices to lending institutions

Just to name a few. But not California, home of the largest volume of loan originations in the nation, home of the top foreclosurevilles in the nation; the poster-child of bubble economics, has remained eerily silent. No adoption of federal guidelines, no guidance to lenders, nothing. Not that they are the only state to remain on the sidelines but the fact that California is the largest volume loan state in the nation puts us in a slightly different position than other states with less exposure to the problem.

It seems to me that a state known for its unfriendly business environment and consumer-protection practices that California has taken a decidedly nonchalant approach to the problem in its backyard. Your thoughts?

This post was found on BlownMortgage
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