"Four major subprime lenders
promised to give a break to California homeowners who cannot afford escalating mortgage payments, under a plan announced Tuesday by the lenders and Gov. Arnold Schwarzenegger," reports Carolyn Said in the Chronicle.
"Countrywide, GMAC, Litton and HomeEq - which collectively service more than one quarter of subprime loans to people with poor credit - agreed to maintain the initial, lower interest rate for some subprime borrowers whose rates are scheduled to jump significantly higher. To qualify, borrowers must occupy their homes, have made their payments on time and prove they cannot afford payments with the higher interest rate.
"The voluntary program is designed to stem a huge wave of foreclosures. Half a million homeowners in the state have subprime mortgages that are scheduled to jump higher within the next two years after their introductory period elapses. Such loan resets, in combination with a slumping real estate market, already have led to a record number of foreclosures across California and the nation.
"'
With this type of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists,' the governor said in a statement. 'This common-sense approach does not involve a government subsidy or bailout.'
"It was unclear for how long the loan servicers would freeze the interest rates."
"Armed with scattered reports of controversial take-aways and simmering resentment over a narrow U.S. Supreme Court ruling, advocates for private property rights
announced yesterday that they have collected more than 1 million signatures to qualify a state constitutional amendment to rein in local governments' vast powers to seize homes and businesses," reports the U-T's Michael Gardner.
"'This is about people trying to achieve the American dream and not having local or state government come along and take it from you in the dark of night,' said
Doug Ose, a leader of the campaign and a former Republican congressman from Sacramento.
"If the required 694,354 signatures are verified by the Secretary of State's Office, the measure could enliven a relatively quiet June ballot."
The measure would also ban rent control statewide.
"Cities and their supporters are preparing a dueling measure. The cities-backed proposal would erect more hurdles before homeowners could be forced to sell. It doesn't go nearly as far as the proposal touted by the coalition of businesses and agriculture and conservative taxpayer-rights groups."
Dan Walters writes about
how the two measures may affect each other.
"It's doubtful whether the city-led coalition really wants to reform eminent domain with its measure, or confuse voters and thus encourage them to reject both initiatives, preserving the status quo. On the other hand, by including rent control in the latest anti-eminent domain measure, its sponsors may have handed opponents another fatal weapon."
"Education advocates
are expected to file suit today against the state of California for shortchanging school districts $1 billion – a move they say has left districts feeling used like 'credit cards,'" reports Judy Lin in the Bee.
"The California School Boards Association, joined by a handful of school districts, wants the state to reimburse K-12 districts for programs they say the state required and should have paid for.
"'The state expects schools to foot the bill for millions of dollars in mandated costs that they do not fund and rarely pay back,'
Kathy Kinley, president of the California School Boards Association, said in a statement.
"
Richard L. Hamilton, director of the Educational Legal Alliance,
said the state owes school districts $415 million for programs it underfunded and $475 million for programs it never funded. The current budget contains $160 million in unfunded programs, he said."
"Los Angeles County sheriff's detectives
were searching Tuesday for three grandchildren of Rep. Gary G. Miller (R-Diamond Bar) who were believed to have been kidnapped by their mother.
"Detectives were dispatched to the 22000 block of Cello Drive in Diamond Bar late Monday to investigate the suspected abduction of the three boys, Deputy Oscar Butao said.
"The oldest child, Brian, is 8 and his brothers, Evan and Christian, are 6-year-old twins, Butao said. Their mother, who authorities said does not have legal custody of the children, was identified as
Jennifer DeJongh.
"She may have gone to Nevada, possibly Las Vegas, Butao said. DeJongh and
Brian Miller, who are divorced, are in a dispute over certain custodial rights, said
Jude Lopez, DeJongh's father."
"San Francisco
will begin issuing municipal identification cards to illegal immigrants next year, becoming the second city in the country to create such a program in the wake of stalled immigration reform efforts in Washington," reports Javier Erik Olvera in the Merc News.
"The board of supervisors Tuesday gave the final OK needed to create the ID card program, effectively legitimizing the city's estimated 40,000 illegal immigrants.
"The cards will be available to anyone living in the city next August and used as proof of identity when it comes to most facets of city business, from library service to police stops. Although immigrants are the prime target for the ID program, the cards will be available to anyone who wants them."
"San Francisco supervisors
voted down a measure Tuesday that would have barred city managers from engaging in sexual relationships with their employees - a thinly veiled swipe at Mayor Gavin Newsom's admitted affair with a staffer, who also was his campaign manager's wife," writes Cecilia Vega and John Wildermuth in the Chron.
"The measure failed with an overwhelming 10-1 vote, with only Supervisor
Chris Daly, the legislation's sponsor, voting in favor of it.
"'
It is common practice in the corporate work setting where managers ... are held accountable and these types of relationships are not tolerated,' Daly said.
"The measure would have prohibited city managers from "engaging in romantic or sexual relationships" with employees.
"Earlier this year, Newsom acknowledged having an affair with his commission appointments secretary, who at the time was the wife of his campaign manager.
"The mayor's spokesman
Nathan Ballard said, 'Chris Daly has no business poking around in anybody's personal life.'
"'
We're pleased that the Board of Supervisors had the wisdom to kill Chris Daly's intrusive legislation,' he said."
And it looks like it just got
a little less fun to be a Chinese firefighter."
China has banned fire department officials from receiving sexual favors as bribes from companies seeking their business," the AP reports.
"Fire department officials were also banned from letting their spouses and children run fire-fighting companies and market fire-fighting products, part of an anti-corruption drive outlined in a notice posted on the Public Security ministry Web site.
Apart from taking cash and "other valuables," the order forbade officials from receiving "cheap or free house renovations," "having children entered into schools" and "receiving sexual services" provided by third parties.
What else is there?
