August 22, 2007 (LPAC)--Challenging the inadequate response of the California legislature to the exploding housing crisis, a coalition of consumer groups held a press conference and testified in Sacramento on Aug. 21, demanding immediate action to halt foreclosures and keep borrowers in their homes.

Some of the legislative action they call for comports with LaRouche's newly issued emergency "Homeowners and Bank Protection Act of 2007," however their action package lacks the Federal component needed to support a national rescue effort.

Coalition groups included California ACORN, California Reinvestment Coalition (CRC), the Center for Responsible Lending (CRL), Consumer Federation of California (CFC) and Consumers Union.

Dorothy Hicks said, "Two years ago, I had an affordable mortgage and owed only $9,000 on my home. After two refinances and [undisclosed] details, I have no business and may soon have no home." Indeed, data out on Aug. 21 showed California's foreclosure filings tripled in July from a year ago.

"California is projected to see nearly half a million foreclosures among subprime loans originated between 1998-2006," the CFC press release notes. "Yet, [the state] has taken no action" to deal with the subprime mortgage collapse and irresponsible lending practices."

"With record levels of foreclosures and more coming, California's homeowners, housing markets, and economic growth are all at risk," CRL director Paul Leonard said at the press conference. He called on legislators to lead efforts to "reduce foreclosures," aid borrowers and "reduce risks for new subprime loans."