April 28, 2008

Senate to take up Perata mortgage bill

Senate President Pro Tem Don Perata’s mortgage crisis legislation, a prior version of which failed on the Senate floor earlier this year, will get another chance when the Senate meets at 2 p.m. this afternoon.

The first version of the bill included an urgency clause and required a two-thirds vote, needing the support of two Republican senators. It fell one vote shy, with only Sen. Abel Maldonado, R-Santa Maria, voting in favor.

The new version, SB 1137, has been amended to the satisfaction of many in the lending industry, though the Senate GOP caucus remains officially opposed.

The bill remains urgency legislation, so it still requires GOP support.

The mortgage bill has been raised as an issue in the recall campaign of Sen. Jeff Denham, whose district includes the hard hit counties of Merced, San Joaquin and Stanislaus.

"Callously ignoring the mortgage crisis in his district to cater to powerful banking lobbyists, Jeff Denham single-handedly killed urgency legislation that would have helped thousands of homeowners in danger of foreclosure," alleged the recall campaign after Denham did not vote for the original Perata bill in January.

Denham is considered a possible deciding vote today.

The bill was eligible to be heard last week, but put off until today, a possible sign Senate Democrats have secured support for passage.

Posted by Shane Goldmacher on April 28, 2008 11:27 AM