This article updates our recent article regarding California Governor Arnold Schwarzenegger’s legislative proposal to stem foreclosures in the state by incentivizing lenders to offer “comprehensive” loan modification programs. The Governor’s bill, ABX 4, was introduced in the State Assembly on November 13, 2008. Although the proposal is limited to California, it could serve as a model for similar legislation by other states and the U.S. Congress.

Please see full update for more information.