In California, declining median sales prices of homes are not enough to stop record low home sales across the state. In a state and national economy teetering on the edge of recession, prospective homebuyers are clearly nervous about loan products that have led others to foreclosure and financial ruin. The state assembly has taken aggressive steps to reform home mortgaging but the state senate may deny change.

According to the San Jose Mercury News, The package of seven bills, among other steps, would ban so-called stated-income loans, tighten the rules on which borrowers can get subprime loans, cap pre-payment penalties, prohibit negative amortization loans and require lenders to give borrowers a summary of key loan provisions in both English and the language the deal was negotiated in.

The Mercury News also reports that "Opposition also is vigorous from the high-powered California Mortgage Association, which has spent as much as $100,000 this legislative session to convince lawmakers that the measures will backfire on homeowners."

As we all know, when special interest money starts flowing, moderate Democrats listen. Indeed, they appear to be willing to slow down the wind of change on behalf of the industry which in large part, preyed on borrowers by offering nefarious loans that many borrowers could never afford.

This has resulted in a statewide housing crisis, which is affecting our state economy, consumer confidence and home values.

But Assemblyman Ted Lieu who authored one of the reform bills believes industry opposition has clearly organized its allies in the Democrat-led state senate.

Will the real Democrats in the Senate please stand up?