November 20, 2007 (LPAC)--The resolution printed below was passed Saturday, November 17, 2007 at the Executive Board meeting of the California Democratic Party. It was submitted by the L.A. County Democratic Party, which passed it at the July 2007 meeting. It was drafted by LYM member Ardena Clark, and was introduced before Lyndon LaRouche drafted his HBPA. The final version was amended by the Resolutions Committee of the L.A. County Committee in July, and placed before the State Party Resolutions Committee, recommended by the County Committee.

WHEREAS, keeping people in their homes and preventing predatory lending practices are values long supported by the Democratic Party, and are present in the rights established in the general welfare clause in the Preamble of our Constitution; and

WHEREAS, the projected number of foreclosures in 2007 is up to two million homes (John Burns Real Estate Consulting, May 22, 2007), many due to unethical lending practices; and

WHEREAS, the collapse of hedge funds, e.g., Bear Stearns, heavily invested in sub-prime mortgages, threatens to set off a chain reaction collapse of the Mortgage Backed Securities (MBS) and Collateralized Debt Obligations (CDO) markets, jeopardizing many national programs such as student loans and pensions, causing ultimately, the blow out of the global monetary and financial system;

THEREFORE BE IT RESOLVED, that the California Democratic Party ask the California Congressional delegation to lead the way in creating governmental institutions whose purpose is to direct credit and other lending organizations to keep people in their homes, in a manner similar to Franklin Roosevelt's Home Owners Loan Corporation; and

THEREFORE BE IT FURTHER RESOLVED, that the California Democratic Party urge the California Congressional delegation introduce legislation that would prevent and/or mitigate against a global financial crisis.