Resolutions

Resolution Number ANA07.33

Housing Crisis

WHEREAS, keeping people in their homes and preventing predatory lending practices are values long supported by the Democratic Party, and are present in the rights established in the general welfare clause in the Preamble of our Constitution; and

WHEREAS, the projected number of foreclosures in 2007 is up to two million homes (John Burns Real Estate Consulting, May 22, 2007), many due to unethical lending practices; and

WHEREAS, the collapse of hedge funds, e.g. Bear Stearns, heavily invested in sub prime mortgages, threatens to set off a chain reaction collapse of the Mortgage Backed Securities (MBS) and Collateralized Debt Obligations (CDO) markets, jeopardizing many national programs such as student loans and pensions, ultimately causing the blow out of the global monetary and financial system;

THEREFORE BE IT RESOLVED, that the California Democratic Party asks the California Congressional delegation to lead the way in creating governmental institutions whose purpose is to direct credit and other lending organizations to keep people in their homes, in a manner similar to Franklin D. Roosevelt’s Home Owners Loan Corporation; and

BE IT FURTHER RESOLVED, that the California Democratic Party urges the California Congressional delegation to introduce legislation that would prevent and/or mitigate a global financial crisis.

Submitted by Los Angeles County Democratic Party

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Adopted by the Executive Board
Of the California Democratic Party
At Its Executive Board Meeting
Sheraton Hotel, Anaheim
November 18, 2007