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2/26/08LES <br />subprime mortgage loans. These options are not mandated by federal <br />law, and include the following: <br />1. Rate freeze for five (5) years for qualified borrowers. <br />2. Qualified borrowers must have homes that are owner occupied, the <br />borrower must be no more than thirty (30) days late on payments, have a <br />FICO credit score of 660 or less and a loan originated in January 2005 to <br />July 2007 with an initial reset date of January 2008 to July 2010. Qualified <br />borrowers must also have less than 3% equity in their home. <br />E. In California, through the leadership of Governor Schwarzenegger, <br />lenders are encouraged to proactively reach out proactively to borrowers <br />well before their loans reset; streamline the processes by which they <br />determine whether borrowers may reasonably be expected to be able to <br />make the reset payment; and, for people who are in their homes and <br />making timely payments now at the starter rate, but who cannot make the <br />reset payment, keep them at the starter rate for a sustainable period of <br />time. <br />Section 2. The City Council of the City of Santa Ana recognizes the impact of <br />subprime mortgage lending in our community and supports federal, state, local <br />government and private sector efforts to aid homeowners affected by subprime loans in <br />order to preserve homeownership. <br />Section 3. This Resolution shall take effect immediately upon its adoption by <br />the City Council, and the Clerk of the Council shall attest to and certify the vote adopting <br />this Resolution. <br />Resolution No. 2008-XXX <br />55D-4 Page 2 of 3 <br />