Gov. Arnold Schwarzenegger of California proposed Wednesday that the state implement a 90-day moratorium on foreclosures of delinquent mortgages and enact additional measures to expedite modifications.

His plan would let lenders avoid the moratorium if they can demonstrate an "aggressive modification program" is in place. The proposal offered a model for modifications, in which servicers reduce interest rates for five years or longer; extend a borrower's payment period; or defer some principal payment until the end of the loan term.

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