Legislative panel to examine mortgage collapse

Chris Rizo Jun. 5, 2009, 1:21am

Pedro Nava (D)

SACRAMENTO, Calif. (Legal Newsline)- State assemblyman and candidate for California attorney general Pedro Nava will hold a legislative hearing Monday to examine the role of accounting firms in the collapse of mortgage lending.

Nava, D-Santa Barbara, is the chairman of the powerful Assembly Banking and Finance Committee. He announced this week he will seek the 2010 Democratic nomination for attorney general.

"With the fallout felt in California from the economic crisis and meltdowns of the mortgage lending and financial markets, it is imperative that we find out how this happened and whether accountants had a role," Nava said in a statement.

He added that not since the Great Depression have California families felt such a pinch.

"The Legislature needs to fully explore what led to this collapse so that we can respond and act to help prevent it from ever occurring again," Nava said.

At its fact-finding hearing, the Assembly Banking and Finance Committee will consider whether California law needs to be tightened to prevent future collapses.

Representatives from the California Board of Accountancy, California Department of Corporations and the National Association of State Boards of Accountancy are expected to take part in the hearing.

From Legal Newsline: Reach staff reporter Chris Rizo at chrisrizo@legalnewsline.com.

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