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With foreclosures continuing at high levels, the Los Angeles City Council called Wednesday for a report on how the city can create a mortgage mediation process to help homeowners facing loss of their homes.

"This has been done in other locations and Southern California is still facing a major housing crisis," Councilman Eric Garcetti said. "There is still a sense of shame by people about reaching out for help.

"We need a system where someone can bring the homeowner and the lender together to work out a way to keep people in their homes."

Garcetti said the mediator would serve as an advocate for homeowners to try to work out new payment plans.

The program is modeled after one created in Springfield, Mass., Garcetti said.

Councilman Richard Alarcon asked the report to also include a listing of banks that do business with the city and are continuing to foreclose on homes.

"People are angry and justifiably so to hear that we are doing business with banks that foreclose on homeowners," Alarcon said.