California Statement on Federal Reserve Announcement

SACRAMENTO, Calif.--(Business Wire)--The administration of California Governor Arnold Schwarzenegger is
in receipt of the December 18, 2007, announcement from the Federal
Reserve System endorsing new federal rules that would give consumers
seeking home mortgages new protections.

California Department of Corporations Commissioner Preston
DuFauchard has been a key participant in crafting the state's response
to developments in the subprime mortgage market. Commissioner
DuFauchard issued the following statement in response to the
announcement from the Federal Reserve Board of Governors:

"We are pleased to see the Federal Reserve propose additional
consumer protections that complement our efforts in California. We
look forward to working with our federal counterparts and legislators
to implement needed reforms while taking care not to create unintended
consequences that could jeopardize the availability of credit
necessary to create much needed home ownership opportunities."

The Federal Reserve plan could be finalized sometime next year.

The Department of Corporations (DOC) is California's investment
and financing authority and is responsible for the regulation,
enforcement, and licensing of securities, franchises, off-exchange
commodities, investment and financial services, independent escrows,
consumer and commercial finance lending, residential mortgage lending,
payday lenders, check sellers, bill payers, and debt reduction
services. Consumers should contact the department to check on the
status of the companies, investments or other services they are
considering and the licensing status of the person. Contact DOC's
toll-free Consumer Resource Center at 1-866-ASK-CORP (1-866-275-2677)
or visit www.corp.ca.gov.

California Department of Corporations
Mark Leyes, 916-322-7180

Copyright Business Wire 2007