Brown: "There's no doubt that tragedy of the mortgage meltdown has caused suffering to millions of people. And that suffering can't be compensated in any complete way. But what can be done will be done."
… and what will be done, effective January 1st, is this: a ban on foreclosures during loan modifications; a single point of contact for homeowners with their lenders; and the ability for homeowners to sue banks under certain circumstances if they feel they've been wrongly foreclosed upon.
The banking industry is on board with some of the changes but believes others go too far and will slow the housing market's recovery.
Harris: "We're done with dual track. We're done with the runaround. We're done with the okiedoke. We are done with robosigning. We are done with abusive tactics and empty promises - we're done!"
Brown Compares City Bankruptcies to Going into Surgery
Governor Jerry Brown says he hopes more California cities won't file for bankruptcy - but warns of a "continuing rocky ride."
On Tuesday night, San Bernardino became the state's third city in recent weeks to approve its own bankruptcy. In Los Angeles Wednesday, Brown said the bankruptcy process can help cities get control of their finances:
Brown: "It's almost like going into surgery. A lot of anticipation, anxiety, but California is strong, our cities are strong and give us enough time and we're coming back."
The governor says many American businesses have gone through bankruptcy and come out in better shape than before. He says cities that don't have enough money must take whatever reasonable steps they can under the law.