2007-12-12 — sacbee.com
The state of California had a chance to curb lending practices that would later contribute to a crisis in subprime mortgages when it set out in 2001 to regulate so-called "predatory" loans.
But lawmakers, many of whom took campaign contributions, trips to Hawaii and Rolling Stones concert tickets from subprime lenders, narrowed the legislation so much that consumer protections covered only a tiny percentage of mortgages, a review by The Bee found.
Somehow not so surprising. But that's not the end of the gory, sleazy details:
... lawmakers ignored warnings from consumer groups and killed a provision in a 2005 bill to reverse the court's interpretation and broaden the scope of the state law.
Major players in the subprime industry, meanwhile, contributed generously to governors, legislators, their causes and their entertainment.
They were led by Ameriquest, now out of the mortgage business, which contributed $9.6 million to political causes from 2001 to 2006, according to filings with California's secretary of state.
Ameriquest. That right there should raise alarm bells. California was bought and paid for by Ameriquest. Now that Ameriquest has imploded (and one of the most shameful implosions, too), what does that say about California -- and its legislators?
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