Senator Warren to Join Call to Alter Sales of Distressed Loans
Senator Warren to Join Call to Alter Sales of Distressed Loans
Housing advocates have attracted a prominent ally in their push to change the federal government’s policy of selling distressed mortgages at a discount to ...
Housing advocates have attracted a prominent ally in their push to change the federal government’s policy of selling distressed mortgages at a discount to private equity firms and hedge funds.
Senator Elizabeth Warren, Democrat of Massachusetts, will join other lawmakers, advocates and community activists on Wednesday in a Washington rally to oppose the loan sale program.
The senator is expected to call on the Department of Housing and Urban Development and the federal overseer of Freddie Mac and Fannie Mae to make it easier for nonprofit organizations to bid for the bundles of distressed mortgages put up for auction, people briefed on the matter said.
The sale of distressed mortgages by HUD and the government-sponsored mortgage finance firms is drawing growing criticism from housing advocates and lawyers in recent months. The critics are concerned that the private buyers of distressed mortgages are moving to quickly to put borrowers into foreclosure as opposed to modifying the loans as housing officials had hoped.
The investors are buying loans often at a 30 percent discount.
One of the biggest buyers of distressed mortgages is Lone Star Funds, a $60 billion private equity firm based in Dallas. The firm, which is also buying soured mortgages directly from banks, has raised billions of dollars from investors, including public pensions to invest in distressed home loans.
The private equity firm’s practices in dealing with delinquent borrowers was the subject of a front-page article in The New York Times this week.
The housing advocates said that, in addition to noon rally with elected officials, they intended to protest outside of Lone Star’s offices in Washington.
Source: New York Times
The Refugees in New York’s Hotel Rooms
On Sept. 20, Hurricane Maria hit Puerto Rico, turning my life upside down. At the time, my two daughters and I were living in Carolina, a town on the northeastern side of the island. In just a day...
On Sept. 20, Hurricane Maria hit Puerto Rico, turning my life upside down. At the time, my two daughters and I were living in Carolina, a town on the northeastern side of the island. In just a day, my clothes were turned to rags, my home was destroyed, and I lost the few belongings I had.
My mother lived in the same town but her house was still standing. For two months, we slept on a couch in her living room. But we couldn’t stay there forever. In December, the Federal Emergency Management Agency moved us to New York City. Since then, we’ve been staying in hotels provided by FEMA in the Bronx and Brooklyn, like hundreds of other families who were moved to New York after the storm. Read more here.
Wall Street Journal: Citigroup Pact Has Detailed Plan for $2.5 Billion in Relief to Consumers
Wall Street Journal - July 14, 2014, by Alan Zibel - Citigroup’s $7 billion settlement with the Justice Department over the sale of flawed mortgage securities includes an agreement by the bank to...
Wall Street Journal - July 14, 2014, by Alan Zibel - Citigroup’s $7 billion settlement with the Justice Department over the sale of flawed mortgage securities includes an agreement by the bank to provide $820 million worth of loan forgiveness and other assistance, plus nearly $300 million in refinancing. The money is also earmarked to help with down payments, donations to community groups and financing for rental housing.
These requirements, outlined in a 15-page appendix to the agreement, provide more specificity for consumer assistance than a $25 billion 2012 state/federal settlement with Citigroup and four other banks over mortgage-servicing problems. They also are more detailed than a November 2013 settlement with J.P. Morgan Chase & Co. over similar flawed mortgage securities sold to investors.
At a press conference in Washington on Monday, Associate Attorney General Tony West said the department aimed to improve on previous settlements by establishing an “an innovative consumer relief menu—one that not only includes the principal reductions and loan modifications we’ve built into previous resolutions, but also new, consumer-friendly measures.”
The Citigroup settlement, unlike previous pacts, directs the bank to provide half of its loan assistance to particularly hard-hit parts of the country. It also mandates that borrowers whose loan balances are cut won’t remain “underwater” —or owe more on their homes than their properties are worth.
The J.P. Morgan settlement addresses similar issues, but in a less targeted way. It gave the bank a bonus for providing aid to hard-hit areas, but set no specific requirement. In addition, the J.P. Morgan settlement encourages loan write-downs but does not specify how much of a borrower’s debt must be forgiven. The Citigroup settlement contains $180 million in financing for affordable rental housing—a provision not included in other settlements.
“This settlement is far more nuanced than previous settlements with respect to consumer relief,” said Andrew Jakabovics, senior director for policy development and research Enterprise Community Partners, a large affordable-housing nonprofit group. The pact, he said, “reflects many of the best practices we’ve seen develop with respect to creating sustainable loan modifications.”
A Justice Department official said the consumer-assistance portion of the Citigroup settlement reflects refinements to the government’s thinking after previous settlements. In addition, the official said the smaller size of Citigroup’s mortgage-lending portfolio caused the government to consider additional avenues for relief because the bank had fewer loans to modify.
There has been tension between the Obama administration and liberal activist groups over efforts to resolve cases related to banks’ mortgage-crisis conduct.
Consumer groups have been unhappy with previous settlements of mortgage-related cases. For example, the 2012 mortgage-servicing settlement allowed banks to receive credit for short sales, in which a bank agrees to allow the sale of a property with a mortgage worth more than the home’s value, and for granting “deeds in lieu of foreclosure,” where a homeowner voluntary surrenders the home.
Some activists are still skeptical of the government’s settlements with the financial industry. Kevin Whelan, national campaign director for the Home Defenders League, an activist group representing homeowners, said there’s been no noticeable impact from last fall’s J.P. Morgan settlement.
“We haven’t seen any evidence that they’ve done anything at all,” Mr. Whelan said.
No statistics on the J.P. Morgan settlement have been released. A J.P. Morgan spokeswoman declined comment.
Joseph Smith, a former North Carolina banking regulator, is serving as the independent monitor overseeing the J.P. Morgan settlement and is expected to release a report on its progress in the coming weeks.
Thomas Perrelli, a former Justice Department official who helped broker the 2012 mortgage settlement, will serve as the monitor of the Citigroup agreement. Mr. Perrelli is now at the law firm Jenner & Block in Washington.
Source
Who We Are: Municipal ID Cards as a Local Strategy to Promote Belonging and Shared Community Identity
One of the paradoxes at the center of the struggle for immigrant rights in the United States is that while immigration law and policy is made at the national level, most of the impacts of those...
One of the paradoxes at the center of the struggle for immigrant rights in the United States is that while immigration law and policy is made at the national level, most of the impacts of those laws occur at the local level. Politicians and bureaucrats in Washington, DC, negotiate and renegotiate a statutory framework that includes some and excludes others, and design and redesign a police apparatus to enforce the framework. Meanwhile, in towns and cities across the country, immigrants and the neighborhoods they are part of experience firsthand the difficult realities of trying to live, work, take care of a family, and participate in community within a set of legal structures that do not always protect their basic rights and freedoms.
In the face of uncertain and incomplete federal immigration reform efforts, cities, counties and states are increasingly looking for ways to address immigration policy issues locally. This is the context in which the idea for municipal identification cards has arisen. Municipal ID cards can help individuals deal with the ongoing struggle to integrate and participate in civic life.
Download the full report here.
Who Needs ID?The ability to provide proof of identity is a basic necessity that many Americans take for granted. Access to widely accepted forms of ID such as passports, drivers licenses and social security cards is a privilege that attends other privileges—privileges of race, of class and of citizenship. But, increasingly, identification requirements gate-keep almost every aspect of daily life. Without the right form of ID you may not be able to open a bank account or even cash a check, see a doctor at a hospital, register your child for school, apply for public benefits, file a complaint with the police department, borrow a book from a library, vote in an election, or even collect a package from the post office. Ironically, the very people who are most in need of such basic services are also those who have the most difficulty obtaining the proof of identity that will allow them to access those services. In addition to serving practical urgencies, identification cards also have a symbolic importance as a sign of membership in the community. Cities that offer ID to their residents regardless of immigration status are making a powerful statement of welcome and inclusion.
Goals of Municipal ID Card Programs Improve community safety by making it easier for those without state-issued ID to interact with local authorities. Improve access to financial services by providing a form of ID that will allow those without other forms of identification to open bank accounts. Mitigate impact of racial profiling. Make symbolic statement of welcome and solidarity to immigrant residents. Promote unity and sense of membership in the local community among all residents.Ten cities have already enacted municipal ID card programs: New Haven, CT; San Francisco, CA; Oakland, CA; Richmond, CA; Los Angeles, CA; Asbury Park, NJ; Mercer County, NJ; Trenton, NJ; Princeton, NJ; and Washington, D.C. Campaigns are underway in several other jurisdictions as well, including Philadelphia, PA and New York, NY.
Battleground Texas: Progressive Cities Fight Back Against Anti-Immigrant, Right-Wing Forces
Battleground Texas: Progressive Cities Fight Back Against Anti-Immigrant, Right-Wing Forces
Sarah Johnson, the executive director of Local Progress, a group that works with Casar and other local politicians on passing progressive legislation, told Salon that the initiative "brings...
Sarah Johnson, the executive director of Local Progress, a group that works with Casar and other local politicians on passing progressive legislation, told Salon that the initiative "brings together the way that policing impacts both immigrant communities and more broadly communities of color that are overcriminalized."
Read the full article here.
Activists Push the Democrats for Real Solutions on Climate Change
Activists Push the Democrats for Real Solutions on Climate Change
There might be no issue that splits so neatly along party lines as climate change. While Democrats have all but consensed on the existence of man-made global warming, Republicans have staked out...
There might be no issue that splits so neatly along party lines as climate change. While Democrats have all but consensed on the existence of man-made global warming, Republicans have staked out their place as the party of denial. But with climate-fueled chaos on the horizon, trumping Trump’s climate plan may not be enough to stave off the end of the world as we know it—and progressive activists are looking for more ambition on their side of the aisle.
First, the bad. At this year’s Republican National Convention, the GOP’s drive to drill baby drill toward an “all of the above” energy policy yielded chilling results.
Take the GOP’s climate and energy platform, an extremist document—even for them—that calls for more pipelines, a cancellation of the Clean Power Plan, the United States’ total withdrawal from the Paris climate agreement and the end of the EPA’s ability to regulate carbon dioxide and just about anything else, morphing it into “an independent [and toothless] bipartisan commission.”
Others fused energy policy with Trumpian law-and-order nationalism: “Every onerous regulation puts American lives at risk,” Harold Hamm, a fracking mogul and Trump’s pick for energy secretary, said Wednesday. “Developing America’s own oil supply is a matter of national security.”
And official RNC proceedings were dotted with panels on energy sponsored by the likes of the American Petroleum Institute, a lobbying outfit for the fossil fuel industry. At one such event, Congressman Marsha Blackburn (R-TN) voiced a myth popular among her colleagues: “The earth is no longer warming, and has not for the about past 13 years, in fact it has begun to cool.”
Squared with any climate science worth its peer review, the GOP’s plan is a recipe for literal disaster. This year will likely be the hottest on record, and recent research shows that thanks to ramped-up melting, Greenland lost a trillion tons of ice from 2011 to 2014.
Rising temperatures could cost the global economy some $2 trillion by 2030, around the time when coastal cities might become virtually uninhabitable. By stripping the government of its ability to scale back the emissions fueling these trends, the Republican platform might well kill us all—or at least force us inland.
But is the Democrats’ plan much better? When it comes to climate change, there’s precious little time for lesser evils; the physics—as scientists are quick to tell us—has put humanity on a deadline. Next week, thousands will converge on the Democratic National Convention to enforce it.
Articulating climate change as “an urgent threat and a defining challenge of our time,” the Democratic platform sets out a series of ambitious goals on climate for the next half-century: a full transition to clean energy by 2050, creating millions of well-paying green jobs, fulfilling the Paris Agreement for a 1.5 degree Celsius global cap on warming, pricing both carbon and methane, and abandoning the “all of the above” stance Democrats wrote into their platform in 2012.
The issue, climate organizers say, is that the plan says next to nothing about how to get there. Though the platform benefitted from input of climate hawks like Bill McKibben, Keith Ellison and Cornel West, many of the strongest environmental protections brought up in the drafting process were struck down. Food and Water Watch National Organizing Director Mark Schlosberg noted that, among other shortcomings, the document failed to ban fracking, reject the Trans-Pacific Partnership or commit to keeping fossil fuels buried.
Not only that, but Clinton’s staffers have made pains to distinguish the party’s plans from her own, which are focused largely on market-based clean energy incentives and a handful of regulations. If the Democrats’ own nominee won’t champion her party’s policy slate, pushing beyond it will be no easy task.
Despite its flaws, the Democrats’ platform remains the most ambitious the party has produced to date. But meeting its relatively lofty benchmarks would require rapid cuts to current fossil fuel use, and a virtual moratorium on new pipelines, drilling projects, coal-fired power plants and fuel export terminals—none of which are included to sufficient degree in either the document or Clinton’s own agenda. Even if every national commitment outlined in the Paris Agreement is met, the world is still on track for around 3 degrees of warming. A recent report from Nature, moreover, finds that “the window for limiting warming to below 1.5 C … seems to have closed.” Meeting that now, researchers say, would require the use of some magically efficient (and currently non-existent) technology to suck carbon out of the atmosphere.
The Democrats’ platform, Schlosberg explains, “Contains some good language [on climate change] … and calls for a World War II-scale mobilization to address it. But the rest of the platform doesn’t live up to what is necessary to implement that. …
“We need to put forward an affirmative vision of what [a low-carbon world] should look like,” he adds, “not just what we can bargain for.”
Party platforms, at day’s end, are symbolic documents—more of a temperature gauge on the party’s mainstream than a commitment that it will do what it says. Even the “strongest climate change platform ever,” as the Guardian called the Democrats’ plan, leaves a dangerous gap between science and policy.
That’s part of the reason why—on Sunday—Food and Water Watch, with the support of some 900 sponsoring organizations, is hosting a March for a Clean Energy Revolution through downtown Philadelphia, just hours before the convention is set to begin. Joined by the Center for Popular Democracy, National Nurses United, the Labor Network for Sustainability and others, the march will invite thousands to call for everything from a ban on fracking to keeping fossil fuels underground.
Also on the ground next week will be Nay’Chelle Harris, a member of Missourians Organizing for Reform and Empowerment (MORE) and something called the It Takes Root People’s Caravan. A redux, of sorts, of a delegation of organizers who attended the Paris climate talks back in December, the caravan has been bringing together “grassroots Indigenous, Latin@, Black, Asian, Muslim and working class white organizers from around the country” to plan and support actions in Cleveland, Philadelphia and points in between.
This week they joined the immigrant rights’ group Mijente outside the RNC to “wall off Trump,” and in Philly will participate in actions to shut down an immigration detention center and stop the expansion of a South Philadelphia oil refinery. Like Harris, many “caravanistas” work at the intersections of racial, immigration and climate justice. They kicked off their trip with a Pledge of Resistance “to stand against the racism, misogyny and hateful and xenophobic policies being put forth at the Republican National Convention.” Climate justice, they say, won’t come without victory on other fronts as well.
Having first gotten involved in MORE’s campaign against coal company Peabody Energy as a student at Washington University in St. Louis, Harris started devoting more time to the group after Michael Brown’s killing in nearby Ferguson in the summer of 2014. MORE provided jail support to protesters arrested in Ferguson that summer, and since then has worked on a project mapping out the connections between St. Louis power brokers—including Peabody Energy, headquartered there—and the city’s police department. “Power Behind the Police,” as the project is known, looks to target the “St. Louis 1%” while building out a people’s agenda for a just transition away from fossil fuels and police violence alike.
“We need to confront the GOP, and confront Trump and his rhetoric,” Harris told me by phone from Cleveland. “But we also need to confront the DNC—they have been pushing militarism, they have been pushing market-based, false solutions to climate change. They haven’t shown real dedication to ending violence against black people.” Carbon taxes and trading schemes have been a favorite not just of progressives but also free market ideologues, whose proposed version of the carbon tax would swap corporate regulations for a price on oil and coal. (Former Bush economist N. Gregory Mankiw is a fan of the idea, along with ExxonMobil.) Many in the caravan, on the other hand, see such elite-driven, market-based proposals as a cynical way to stave off the kinds of strong regulations that might actually put a dent in the fossil fuel industry’s business model, and protect communities on extraction’s frontlines.
Schlosberg and Harris each said that taking on such false solutions, and securing a better climate plan, would take more coordination among movements across issues. Harris joins many millennials, too, in her frustration with politics as usual as a path toward that, saying she “doesn’t feel beholden to the Democratic Party.” But she is also part of a tide of grassroots organizers who see electoral fights as a field of struggle in pushing movements’ demands, along with mobilizations and other forms of pressure from outside of formal politics—like demonstrations happening in Philadelphia next week.
“We can’t depend on the political system,” Harris told In These Times. “But that doesn’t mean we shouldn’t use every avenue for change we have at our disposal.” She referenced two local St. Louis politicians—Democrats Megan Green and Rasheen Aldridge—as examples of what it looks like for officials to run on platforms and govern on platforms that are accountable to activists. Green, an alderwoman, and Aldridge—now running for Democratic Committeeman in the city’s fifth ward—have each used their campaigns to push for demands brought forth by the movement for black lives and Fight for $15.
“I don’t think anyone should consider a party to be their savior,” Harris added, whether it’s the Democrats or the Green Party. “What matters now is people power.”
By KATE ARONOFF
Source
‘Our Town’ benefit raises $500,000 for Puerto Rico
A SUPERHERO EFFORT on Monday night at the Fox Theatre raised more than $500,000 for hurricane relief in Puerto Rico.
The event: a starry staged reading of Thornton Wilder’s great American...
A SUPERHERO EFFORT on Monday night at the Fox Theatre raised more than $500,000 for hurricane relief in Puerto Rico.
The event: a starry staged reading of Thornton Wilder’s great American play Our Town, organized by actor Scarlett Johansson and directed by True Colors Theatre’s Kenny Leon.
Read the full article here.
Home care workers rally in New Haven around terminated employee
Lara was joined by more than a dozen supporters Wednesday, organized by the Working Families Party, which has been advocating for a $15-an-hour wage, paid sick days and predictable schedules for...
Lara was joined by more than a dozen supporters Wednesday, organized by the Working Families Party, which has been advocating for a $15-an-hour wage, paid sick days and predictable schedules for this group of employees.
Management at Family Care VNA & Home Care at 495 Blake St., where Lara worked for more than three years in a 28-year career, called police to keep the protesters away from its office. The protesters continued to march on the sidewalk leading into the parking lot where the company is located.
After about an hour, Lindsay Farrell, state executive director for the Working Families Party, Julio Lopez of Make the Road, which is part of the Center for Popular Democracy, and Lara approached New Haven Officer Scott Durkin, who was standing outside the care agency’s office.
Durkin passed on a petition to management signed by more than 9,000 people asking that Family Care VNA & Home Care meet with Working Families to discuss workplace protections for its employees.
“I am here today because on Aug. 3 I got terminated for exercising ... freedom of speech. I was searching for a better workplace for my co-workers, for those who are afraid to speak, because this is their only source of income to maintain food on the table and a roof over their kids’ heads,” Lara said.
The longtime certified nursing assistant has been on panels with U.S. Rep. Rosa DeLaura, U.S. Sen. Chris Murphy and Thomas E. Perez, secretary of the U.S. Department of Labor, talking about the conditions that CNAs face.
Lara said she never mentioned her employer, but spoke generally about the industry and the need for a pay upgrade, benefits and schedules they can count on.
“I believe that no human being should be treated like animals, because that is what they treated us like, paying us $10 an hour. We are a big asset to the company and if not physically fit ... how can we go out there and do our jobs?” Lara asked.
“What I am searching for is justice for me and so many other workers that do the same job as I do,” she said to the crowd.
Lara said this all began when she took off two days for emergency surgery for her gallbladder on Feb. 26. Her doctor recommended she stay out of work for two to three weeks.
A message seeking comment was left with Donna Simmons, a human resource specialist at Family Care.
Lara said she ended up back in the hospital because she returned to work too early. On May 22 and June 3, she had additional surgeries for an abscess on her breast for a total of eight days missed for health problems.
Lara said she put up with the $10-an-hour pay because “I like what I do and I enjoyed working with my patients and I didn’t want to leave them hanging.”
She said after the last surgery, her hours were cut from 54 hours a week to 14 hours, putting her behind on her rent and bills.
Lara said the firing not only hurt her financially, but “has taken away what I like and what I enjoy, which is working with people.” She said she is collecting unemployment compensation.
Lara said she feels that she was being punished for taking time off “to take care of my physical health.
She said when she was terminated, management alleged that she had used profanity in front of a client, but Lara said that was not true. She said they told her at that meeting Aug. 3 that she was being fired for “bashing the company.”
Lara said Lou Mangini, who works on constituent concerns in DeLauro’s New Haven office, has been in touch with her.
The letter from Working Families to Rita Krett, who is listed as the owner of the company, said Lara’s firing was “unacceptable and immoral.”
It promised to escalate its support of Lara and other workers if the company doesn’t improve conditions.
Donald Trump: Evictor-in-chief
Landlord-in-chief Donald Trump wants to evict 800,000 people from the U.S. On September 5th, the Trump administration announced it intends to end the Deferred Action for Childhood Arrivals (DACA...
Landlord-in-chief Donald Trump wants to evict 800,000 people from the U.S. On September 5th, the Trump administration announced it intends to end the Deferred Action for Childhood Arrivals (DACA).
Many DACA recipients, employed in the construction industry, built the very buildings that made real-estate moguls like Trump rich.
Everyday, the people of New York City are fighting landlords and their racist policies. This past couple of weeks have been no exception. On Wednesday, Aug. 30, thousands turned out for a march to protect DACA. It was organized by 15 different community organizations, including 32BJ SEIU, Working Families Party, Make the Road New York, New York Immigration Coalition, United We Dream, Tenants and Neighbors, Churches United For Fair Housing (CUFFH), New York Communities for Change, Alliance for Quality Education (AQE), VOCAL NY, the Women’s March, and the Center for Popular Democracy. Thousands in cities and municipalities around the country also rallied and marched to defend DACA.
Read the full article here.
Castro moves to stop VP fire from the left
Targeted by progressive activists hoping to kill his chances of being Hillary Clinton’s running mate, Julián Castro is set this week to announce changes to a hot-button Housing and Urban...
Targeted by progressive activists hoping to kill his chances of being Hillary Clinton’s running mate, Julián Castro is set this week to announce changes to a hot-button Housing and Urban Development program to sell bad mortgages on its books.
The changes, which HUD officials will brief stakeholders and activists on during a conference call on Monday, could be made public as early as Tuesday — depending on when department lawyers give the green light to publishing them in the Federal Register.
But they won’t take effect before the next auction of HUD mortgages, scheduled for May 18.
Castro’s actions could potentially defuse an issue that activists have been using to question his progressive credentials — and he’ll be doing it at the moment the running mate search has begun to get serious at Clinton campaign headquarters.
Among the changes, according to people with knowledge of what’s coming: The Federal Housing Authority will put out a new plan requiring investors to offer principal reduction for all occupied loans, start a new requirement that all loan modifications be fixed for at least five years and limit any subsequent increase to 1 percent per year, and create a “walk-away prohibition” to block any purchaser of single-family mortgages from abandoning lower-value properties in the hopes of preventing neighborhood blight.
HUD officials say that the timing isn’t a response to the activist pressure or the presidential campaign calendar.
“It has always been our goal to get the policy right, regardless of arbitrary deadlines, and we expect to announce those changes this week,” said HUD press secretary Cameron French.
But the changes come after two years of calls by activists — joined last September by Sen. Elizabeth Warren (D-Mass.) — for major reforms to the Distressed Asset Stabilization Program. Their calculations — numbers that HUD says are way off — allege that during Castro’s tenure, 98 percent of problematic mortgages the department has sold went to Wall Street firms that they say were responsible for the housing crisis in the first place.
With the backdrop of a Democratic Party recalibrated by Bernie Sanders’ surprisingly strong candidacy, activists were preparing a full offensive against Castro this week, looking to leverage his political ambitions against him to extract major concessions.
Last Thursday, activists sent an ultimatum letter to HUD titled, “Seeking swift changes to HUD's DASP program,” and demanding response within 24 hours. They had set up a national day of action for Tuesday, with protests scheduled at HUD offices in New York, Philadelphia, Los Angeles and San Francisco, along with a news conference at Newark City Hall — which remains on for now, pending whether they feel HUD has gone far enough in what the agency tells stakeholders on Monday afternoon.
“I would say we’re cautiously optimistic, but we don’t know, and what we need to see is a plan that will lead to substantially more mortgages not getting into the hands of bad actors and saving more homes from foreclosure,” said Amy Schur, campaign director for the Alliance of Californians for Community Empowerment, on Sunday afternoon. “Unless we see that, it’s going to be a problem.”
Schur has been in touch with HUD regularly over the course of the past two years, and in recent weeks when the conversations stepped up after the activists fired a warning shot against Castro by launching a public effort built around the website DontSellOurHomestoWallStreet.org.
That first attack on Castro in early April prompted a number of leaders to rush to his defense — some because they felt the criticisms were unfair, others because they were eager to protect the future of arguably the most promising Latino rising star in the Democratic Party.
“Some of y’all may have seen recently concerns that were voiced about DASP,” Castro said last week in an appearance at a National Association of Realtors event teasing the changes.
“We’re improving that and have been working to do that to ensure that folks are able to stay in their homes longer because they’re offered principal reduction in certain instances,” Castro said, “that we get better outcomes for neighborhoods by making sure that folks who secure those loans aren’t able to just walk away from those properties and by instituting something that we refer to [as] ‘payment shock protection’ to make sure that once payments are modified that they don’t just jump up a couple years later.”
Other members of the coalition and signatories on the ultimatum letter are American Family Voices, the Center for Popular Democracy Action, Daily Kos, Democracy for America, MoveOn.org Civic Action, New York Communities for Change, Other 98% Action, Presente.org, RootsAction.org, the Rootstrikers Project at Demand Progress and the Working Families Party.
Schur said that she and others are hoping that HUD will include some method of incentivizing mortgage sales through early bidding or favorable rates to nonprofits and neighborhood groups, rather than the Wall Street firms that have bought many of the mortgages. They feel that large financial institutions don’t care about the effect on neighborhoods from letting properties go vacant or decline, or of overwhelming homeowners with liabilities — though many argue that the reason these institutions buy so many of the mortgages is that they are the only ones that have the capital and management capability to handle the purchases.
“Where we would like to be with HUD is partnering to roll out a positive program in our cities across the country,” Schur said. “We’d rather be doing that than protesting. But if the changes are insufficient and this program is going to continue to be almost a wholesale giveaway to speculators, we’re going to have to keep the pressure up. We’re not going to have a choice.”
HUD officials point out that the May 18 auction isn’t for the DASP program and call the complaints surrounding that unfair. It is for different mortgages, called an “aged loan sale,” scheduled before these reforms were far along. No DASP auction has been set yet for 2016, and reconsideration of the program, according to French, has been underway since the most recent DASP auction, at the end of last year.
“Since 2014, FHA has made changes to the DASP program before every sale. FHA has been working on the latest round of changes to the DASP program for months, and, in our desire to be as comprehensive as possible, we’ve engaged a broad group of stakeholders on the potential reforms that would make the most impact for distressed homeowners,” French said.
Activists had been growing frustrated with the pace and substance of the conversations with HUD, and HUD officials have been losing patience with them as well, feeling that the activists are out for attention and landing on Castro simply because his name is in the running mate mix.
And, well aware that this is a critical political moment for Castro, activists warn that they’re ready to keep after him until the Democratic convention in July, and beyond that if he is Clinton’s pick.
“We would all love for the secretary to really come through in a big way, but housing activists and folks in our neighborhoods are not going to stop when our neighborhoods are being sold off to Wall Street. There has to be a major, major change,” said Jonathan Westin, director of New York Communities for Change. “Folks are completely ready to keep pushing.”
By Edward-Isaac Dovere
Source
17 hours ago
17 hours ago