sacramento — With California facing its highest foreclosure rate in 20 years, consumer advocates are pressing the state Legislature to tighten standards used by lenders for approving loans and help consumers already in danger of losing their homes.

The state Senate Banking, Finance and Insurance Committee is holding a public hearing today on the mortgage meltdown, ensuing credit squeeze, their effect on California and what new laws are needed. This comes as the Calabasas-based giant Countrywide Financial Corp. and other lenders began layoffs and other lenders took action to cut back new loans they consider too risky.

SACRAMENTO — California needs to slap a moratorium on home foreclosures that have hit their highest level in 20 years, consumer advocates said this morning.

“California is on the verge of a crisis in home ownership due in great part to predatory lending,” said John Cranshaw of California ACORN, an Oakland-based group that works on economic justice issues for low- and middle-income communities.

Entry-level mortgages with interest rates that start low and rise quickly were “designed to trap borrowers into high-cost loans they cannot afford,” he said.

Foreclosure activity nearly doubled in July compared to the same month last year, to a rate of one foreclosure filing for every 693 U.S. households, data provider RealtyTrac reported today.

The U.S. Foreclosure Market Report for July shows 179,599 foreclosure filings for the month, which includes default notices, auction-sale notices and bank repossessions. Foreclosure activity across the country increased 93.4 percent year-over-year in July.

Nevada remained at the top of the list with the nation’s highest foreclosure rate in July, with one foreclosure filing for every 199 households. The state reported 5,116 foreclosure filings during in July, up 215 percent compared to July 2006.

Indiana is home to the most affordable small and large metro housing markets in the country, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index.

Kokomo, Ind., with an estimated 90.9 percent share of homes affordable for median-income families, ranked as the most affordable small city area with a population under 500,000 in the second quarter.

The Indianapolis-Carmel, Ind., area, with an 86.8 percent share of homes affordable for median-income families, ranked as the most affordable large metro area with a population above 500,000 in the second-quarter index report. The Indianapolis metro has maintained this top ranking for eight consecutive quarters.

Aug. 21 (Bloomberg) — U.S. homes facing foreclosure almost doubled in July as property owners with adjustable-rate mortgages saw their payments rise, RealtyTrac Inc. said.

Lenders sent 179,599 notices of default, scheduled auctions or bank repossessions last month, a 93 percent increase from a year earlier, Irvine, California-based RealtyTrac said today in a statement. California, Florida, Michigan, Ohio and Georgia accounted for more than half of the country’s total filings.