Assembly Democrats Take the Lead on the Subprime Mortage Crisis, While the GOP "Yacht Caucus" Sees Nothing but Calm Seas Ahead

[courtesy of The California Majority Report]

The Assembly Democrats' call for a special session to address the state’s subprime mortgage foreclosure crisis was met by a rather predictable response from the Legislature’s Republican leadership.

According to the Associated Press, Assembly Republican Leader Mike Villines believes the issue should be pushed off until next year, even though lenders filed more than 72,000 notices of default last quarter alone. Senate Republican Leader Dick Ackerman was equally dismissive, saying: "'There is no need for a special session'. ... The Legislature must take care not to overreact and harm the long-term lending market."

Then again, why would the foreclosure crisis be an issue of concern for Ackerman? Senator Ackerman, an "avid sailor," achieved his top legislative priority of the year months ago by helping yacht owners http://www.sacbee.com/110/story/354985.html avoid paying taxes on their luxury boats, a costly loophole with a $45 million annual price tag.

At the time, Ackerman addressed the severity of the yacht crisis: "If you buy a million-dollar boat, you're usually doing a couple hundred thousand in improvements. Upholstery, electronics -- you can put a whole bunch of money into these boats real quick. Those improvements used to take place in California. When they changed the rule, that work all went bye-bye."

Talk about crisis averted! Senator Ackerman saved the day!

However, on the issue of subprime mortage forclosures, Ackerman and Villines seem far less concerned. Could that possibly have anything to do with tens of thousands of dollars in campaign contributions they’ve received from lenders, banks, and title companies that are profiting from the mortgage crisis?

According to the Secretary of State’s campaign finance reports, Ackerman has received more than $66,000 in campaign contributions from those companies. Villines has pocketed $59,750.