SACRAMENTO — In an attempt to combat foreclosures, Gov. Arnold Schwarzenegger has called for a 90-day moratorium on foreclosures. Lenders who can prove that they have an aggressive mortgage modification program in place would be exempted.

He also proposed loan modification guidelines of 38% debt-to-income ratios achievable through interest rate reductions, 40-year loans and the deferring of unpaid principal balances to the end of the loan term so that borrowers can repay that amount upon the refinancing or sale of the property.

California officials expect such actions to reduce homeowner payments by as much as 30%.

And, in an attempt to end unsustainable lending in the state, Schwarzenegger has proposed that state officials be allowed to enforce federal laws and regulations, called for expanded licensing requirements for loan originators and has encouraged the federal government to promote the use of covered bonds which allows lenders to securitize their loans but requires them to retain those assets on their balance sheets.

California ranks as one of the top states for foreclosures. According to a spokeswoman for California Coast Credit Union, 98% of the homes for sale in subdivisions built after 2005 are on the market because of foreclosures.