On November 5, California Governor Schwarzenegger announced a plan to reduce foreclosures and encourage mortgage loan modifications. The plan, to be discussed in a future special legislative session, would include a 90 day moratorium on certain foreclosures, with a “safe harbor” for lenders who could demonstrate their use of aggressive loan modification programs, among other initiatives. Governor Schwarzenegger also encouraged the federal government to require that loan originators retain a portion of loan risk and to promote the use of covered bonds for funding of mortgages.  California Press Release.