California Response to Foreclosure Crisis Not Strong Enough, Consumer Groups Say: A state lending regulator says that foreclosures put the California housing market and economy at risk.

SACRAMENTO -- A coalition of California consumer organizations recently demanded stronger, swifter action on the part of the California Legislature in response to the subprime mortgage crisis at a press conference in Sacramento as well as in testimony before the Senate Banking Committee.

The organizations, including California ACORN, the California Reinvestment Coalition, Center for Responsible Lending, Consumer Federation of California and Consumers Union recommended a number of policy changes that would both assist current borrowers in crisis and protect future subprime borrowers.

"Two years ago, I had an affordable mortgage and owed only $9,000 on my home," said Dorothy Hicks, an Oakland resident and ACORN member. "After two refinances and thanks to details I was never told, I have no business and may soon have no home."

Ms. Hicks is not alone. California is projected to see nearly a half-million foreclosures among subprime loans originated between 1998-2006.

Yet, these organizations say California has taken no action to address the subprime mortgage collapse and the irresponsible lending practices that are at its root.

According to CRL, Ohio, Maine, Minnesota and, just last week, North Carolina, have already implemented strong legislation to curb the risky practices that permeate the subprime market. Numerous states are exploring ways to help borrowers facing foreclosure, including Colorado, New York, Massachusetts and Ohio, which have all created funding pools to help borrowers refinance into long-term affordable mortgages.

"With record levels of foreclosures and more coming, California's homeowners, housing markets and economic growth are all at risk," said Center for Responsible Lending California office director ...