California Association of Mortgage Brokers Details State of the Lending Industry and Offers Solutions to Improve the Market for Consumers.

LONG BEACH, Calif. -- Today, leaders of the California Association of Mortgage Brokers (CAMB) presented an analysis of the latest conditions within the lending industry at a news conference during the Association's Annual Convention and Grand Exposition. CAMB also offered recommendations regarding ways that legislators, regulators and industry can work together to provide Californians access to sound mortgage products that will preserve homeownership.

"Clearly, we are in the midst of uncertainty with regard to lending, and we all must work together to protect the American Dream," CAMB President Pete Ogilvie, CMC said. "As has been the case throughout history, markets fluctuate but always recover. The California Association of Mortgage Brokers stands ready to work collaboratively with regulators and other stakeholders to stimulate a strong rebound and homeownership for people who currently own a home as well as others who aspire to do so."

During the news conference, CAMB offered the recommendations for lenders, government regulators and Wall Street. It also highlighted ongoing initiatives that the Association has been implementing to support consumers in today's market.

CAMB solutions include:

-- Flexible repayment strategies for borrowers facing default and
   foreclosure: CAMB urges loan servicers and secondary market
   investors to do everything possible to work with consumers (similar
   to federal loan mitigation programs) who are struggling to make
   mortgage payments. The Association believes this will help
   alleviate the rising number of defaults and foreclosures.
   Specifically, CAMB encourages lenders to develop programs and
   implement procedures that best support consumer efforts to prevent
   foreclosure and eviction.

-- Declare California a high cost state so borrowers can have equal
   access to federally backed loans: In order for taxpaying California
   borrowers to have the same access to federally backed loans as all
   Americans, CAMB strongly supports the following regulatory changes:

         a. CAMB calls upon Congress to declare California a
            "high cost" state - just like Alaska and Hawaii - in order
            for the conforming loan limit to keep pace with
            California's median housing price. Housing prices remain
            at considerably higher levels than the current conforming
            loan limit of $417,000 and therefore puts homeownership
            out of reach for many hard-working California families
            (Note: CAMB has called for this reform since 2004).

         b. FHA (Federal Housing Administration) guidelines must be
            reformed and updated to increase consumer access to these
            products.

         c. FHA loan limits must mirror conforming loan limits to
            increase loan opportunities for borrowers with less than
            perfect credit or unique employment circumstances. (Note:
            CAMB believes that the lack of FHA accessibility is a
            major reason why so many Californians chose subprime loans
            to achieve homeownership).

-- Wall Street must work immediately to develop lending programs and
   products that will be attractive for capital investors and
   accessible to borrowers: There must be a restoration of viable loan
   programs that give borrowers options to achieve homeownership.

-- A collaborative effort to ensure high standards of professionalism
   within the industry while protecting homeownership opportunities
   for consumers: CAMB is ready to work with and offer its expertise
   to legislators, regulators and all government agencies in a
   cooperative effort to address the challenges of the current lending
   crisis. CAMB is already working with the California Department of
   Consumer Affairs to reach out to and educate Californians regarding
   the lending process.

         a. The Association has and continues to support prosecution
            of any kind of loan fraud "to the fullest extent of the
            law."

While offering viable solutions for others to begin, CAMB also offered up solutions for their organization to begin implementing as a means to help resolve the problem.

"CAMB is focused on helping consumers during this time by renewing its commitment to increasing consumer information, self-policing the industry, working with regulators at the federal and state levels to provide solutions, and continuing to fight against fraud in all its forms," said Ogilvie.

CAMB has participated in several consumer protection practices in the past, such as:

* Helping craft California's strong predatory lending prevention law as well as being the first Association in America to provide a clear definition of predatory lending practices.

* Producing the Best Practices Handbook reflecting the highest standards of professional conduct and consumer protection.

* Creating and distributing the Association's proprietary Consumer Education and Protection Worksheet giving loan originators and borrowers a comprehensive and custom education about the lending process.

* Facilitating Preserving Home Ownership Initiative community education and consumer protection forums with elected officials, local organizations and industry stakeholders.

* Distributing statewide a broadcast Public Service Announcement on alternative loan products with online and toll-free options for consumers to speak with an Association expert in their community to receive one-on-one education about their specific loan.

"CAMB's number one priority is the consumer. The Association has and will continue to be a champion for industry professionalism and consumer education and will continue to fight to protect homeownership," Ogilvie said. "As CAMB members and mortgage professionals who adhere to a strict code of ethics, we are calling upon our industry colleagues to join with us in helping consumers find a path to homeownership."

The California Association of Mortgage Brokers is a non-profit organization representing more than 4,700 industry professionals throughout California. CAMB provides ongoing education to industry members, maintains industry standards, and supports efforts to increase consumer understanding of mortgage broker services. Additional CAMB information can be accessed via the Internet at www.cambweb.org.