Community Activists And Senator Warren Persuade HUD Sec. Julian Castro To Help Homeowners And Reign In Wall Street Speculators
Community Activists And Senator Warren Persuade HUD Sec. Julian Castro To Help Homeowners And Reign In Wall Street Speculators
Last September 30, community activists and local officials from around the country came to Washington, DC to protest HUD’s pro-Wall Street policies.
Two years ago, community organizing...
Last September 30, community activists and local officials from around the country came to Washington, DC to protest HUD’s pro-Wall Street policies.
Two years ago, community organizing groups around the country, with the key support of Senator Elizabeth Warren (D-MA), began pressuring HUD Secretary Julian Castro to stop selling delinquent mortgages to Wall Street investors and help nonprofit organizations to purchase the loans, help homeowners keep their homes, and expand the supply of affordable housing.
On Thursday, they won. Castro announced a set of policy changes to its Distressed Asset Stabilization Program (DASP) that activists had labeled a “Wall Street giveaway.” Last year, for example, 98% of the mortgages HUD sold went to Wall Street firms, at discounts averaging nearly 50%. Castro pledged to fix the program to triple the sales of delinquent mortgages to nonprofit community groups with experience in stabilizing neighborhoods and helping homeowners and to put more restrictions on foreclosures.
The policy fix was needed because some of the same Wall Street firms that precipitated the housing crash have been buying up distressed housing assets in bulk, including delinquent mortgages and vacant houses that are a product of the crash.
Both Sen. Elizabeth Warren and HUD Secretary Julian Castro are frequently mentioned a potential VP running mates with Hillary Clinton.
The campaign’s victory is the result of a perfect political storm. The organizers mounted a savvy grassroots organizing campaign that built on the momentum of the Occupy Wall Street movement that began in 2011. In the current political season, no politician, especially a Democrat, wants to be too closely identified with Wall Street’s financial industry, which most Americans still blame for the 2008 economic tsunami from which the country still hasn’t recovered. During this presidential season, both Hillary Clinton and Bernie Sanders vied to be the champion of Wall Street reform. HUD Secretary Castro, a former San Antonio mayor, has been auditioning for the role of Clinton’s vice presidential running mate, but many pundits view him as too conservative and cautious — and too pro-business — to help Clinton galvanize both Latino voters and Bernie Sanders’ supporters in the contest with Donald Trump. With his announcement this week, Castro can claim to be on the side of homeowners and communities against Wall Street speculators.
HUD’s DASP program, started by the Obama administration in 2012, became a part of the larger problem by auctioning off its distressed mortgages to the highest bidder, which allowed Wall Street firms to take ownership and accelerate foreclosures.
“This whole process shows just how tilted the playing field is for the big banks and hedge funds,” said Warren, who has been the Senate’s most vocal critic of Wall Street abuses, last year. “Many of these banks and funds were responsible for fueling the housing bubble in the first place — leading to the crash that hit these families like a punch to the gut. Now these same banks and funds are turning around and scooping up these loans at bargain-basement rates so they can profit from them a second time.”
The new HUD policy changes to fundamentally reform the program, resulting in more mortgage pools being sold to non-profits, more foreclosures avoided, and more vacant property turned into affordable housing. The changes include:
Help existing homeowners facing foreclosure remain in their homes by modifying their mortgages to reflect current market values — a strategy called “principal reduction.” Until now, both HUD and Fannie Mae, under pressure from the banking industry, had resisted this approach. Now, even private equity firms and hedge funds will have to use that strategy in reworking troubled mortgages.
Increasing the sale of HUD’s distressed mortgages to non-profit organizations
A commitment to work with local governments and non-profits to target sales to those who will help homeowners keep their houses and expand the supply of affordable housing.
Far greater provisions for transparency in the sale process
“These recent HUD changes move in the direction of common sense policy,” said Maurice Weeks of the Center for Popular Democracy, one of the groups that coordinated the nationwide grassroots campaign. “We shouldn’t be handing over our neighborhoods at bargain basement prices to Wall Street.”
“HUD’s bulk mortgage sale program has been fueling the speculator buy-up of our neighborhoods,” observed San Francisco Supervisor John Avalas, one of many local elected officials who supported the campaign. “Finally, HUD is making changes to this mortgage sales program that better prioritize what our communities need — saving more homes from foreclosure and creating more affordable housing. It’s about time!”
Sarah Edelman, director of housing policy for the Center for American Progress and coauthor of a new report on the problem, told the New York Times that the policy changes “significant improvements” in the loan sale program.
“The policies announced today are a promising step toward more responsible loan auctions,” she said.
Millions of homeowners are still delinquent on the mortgage payments, many through no fault of their own, but because of predatory and reckless lending practices as well as the sluggish recovery of the economy in terms of restoring the incomes of working families. As a result, federal officials and community activists expect there to be many more sales of troubled mortgages that were guaranteed by the federal government.
The policy changes are a culmination of several years of research and activism by grassroots groups on the front lines of the nation’s housing and banking crisis.
Several years ago, different community groups began noticing the growing presence of Wall Street speculators in their neighborhoods, one of the aftershocks of the epidemic of foreclosures. Several local groups examined records, interviewed tenants, and issued reports documenting that in areas where Wall Street investors own a significant number of these single-family homes — including Atlanta, Las Vegas, Phoenix, Miami, Tampa, Orlando, Charlotte, Dallas, Chicago, Detroit, Denver, and Los Angeles and nearby Riverside — their practices have harmed tenants and undermined long-term neighborhood stability.
The activists discovered that HUD, Fannie Mae, and Freddie Mac — which own or guarantee the distressed mortgages on many single-family homes — were part of the problem. Over the past few years, they’ve auctioned off about 150,000 non-performing loans that they want to get off their books. Of these loans, fewer than two percent have gone to nonprofit buyers. The rest (98 percent) have gone to Wall Street companies. As of last fall, five Wall Street firms — Lone Star, Blackstone Group, Angelo, Gordon & Co., Selene Residential Partners, and the Royal Bank of Scotland — accounted for 64 percent of all the public loan sales. Last year, Goldman Sachs popped up on the purchaser list for the first time, buying loans from Freddie Mac.
The community organizers and their researchers also exposed a double standard. Although Fannie Mae and Freddie Mac have been unwilling to offer principal reduction to struggling homeowners, and HUD has been unwilling to require principal reduction as part of its program, these agencies often offer steep discounts when they sell these mortgages to Wall Street speculators, who typically foreclose on the homeowners, adding to their inventory of homes scooped up in private foreclosure sales. In unloading these mortgages, the federal agencies often ignored the housing needs of local communities.
The grassroots groups enlisted the help of two national umbrella organizations — the Center for Popular Democracy (a network of community organizing groups) and Local Progress (a network of progressive local elected officials) — as well as Senator Elizabeth Warren, who championed the cause in Congress. These used a variety of tactics — protest actions, internet petitions, and muckraking research — to generate media attention and put pressure on the Obama administration.
These groups — many of which had been working on banking issues for over a decade — launched their national campaign in September 2014. They were relentless in pressuring HUD, Fannie Mae and Freddie Mac to prioritize non-profits over speculators in their sales of troubled mortgages. In particular, they demanded that these agencies prioritize sales to non-profit Community Development Finance Institutions (CDFIs) that have the capacity to purchase large inventories of underwater mortgages and distressed properties — including vacant houses that owners lost through foreclosure and occupied homes where underwater borrowers are on the brink of foreclosure — and stabilize them as affordable housing. The CDFIs were being crowded out by hedge funds working hand in hand with HUD, Fannie Mae, and Freddie Mac.
At the start of the campaign, the activists released a report, Vulture Capital Hits Home: How HUD is Helping Wall Street and Hurting Our Communities, that explained why HUD’s policy of favoring Wall Street investors was exacerbating the nation’s housing crisis.
A week before Christmas in 2014, at rallies outside local HUD offices, community groups in Los Angeles, San Francisco and Boston presented HUD with their “Grinch of the Year” award for refusing to fix the DASP program.
“By auctioning pools of delinquent loans to the highest bidders — vulture capitalists — HUD is driving unnecessary foreclosures and contributing to the rise of ‘Wall Street Landlords,’” said Gisele Mata, an organizer with the Alliance of Californians for Community Empowerment, a statewide organizing group that played a key role in the national campaign, at the press conference.
In June 2015, the campaign released another report, Do Hedge Funds Make Good Neighbors? How Fannie Mae, Freddie Mac and HUD are Selling Off Our Neighborhoods to Wall Street, at a protest rally in front of the Santa Monica office of the Blackstone Group, the private equity giant (with over $300 billion in assets under management), which had become the largest landlord of single-family rentals in the country by gobbling up distressed mortgages - including many sold by HUD — at bargain-basement prices. Since 2012, the report found, federal agencies had sold over 120,000 delinquent mortgages to Wall Street hedge funds and private equities firms. Bayview Acquisitions, largely owned by Blackstone, has bought 24,000 of these mortgages. The report unearthed an array of disturbing business practices, including failure to make repairs and the harassment and illegal eviction of occupants. An investigation by the New York Times published last week confirmed earlier findings of abusive practices. The Times revealed, for example, that Lone Star had pushed thousands of borrowers into foreclosure and failed to negotiate with homeowners to modify their mortgages so they could remain in their homes.
Through Local Progress and 17 progressive mayors from across the county,, the campaign persuaded the U.S. Conference of Mayors to pass resolution asking HUD to change its policy.
Last September, community activists and local elected officials from around the country converged in Washington, D.C. to bring the cause directly to federal officials. After a rally at which Senator Warren and Congressman Michael Capuano (D-Mass) demanded that HUD curb its mortgage sales to Wall Street investors, the activists met with senior officials at HUD and the Federal Housing Finance Agency, which oversees the mortgage giants Fannie Mae and Freddie Mac. A few weeks later, the New York Times published an editorial, “Foreclosure Abuses, Revisited,” calling on HUD to suspend its sales of distressed mortgages until federal agencies adopt significant reforms.
By March of this year, the campaign had built enough momentum to get 45 members of Congress to send a letter to HUD and FHFA in support of the campaign’s demands.
In April, Rep. Raul Grijalva (D-Arizona) wrote to Castro - by then on many lists of potential vice presidential candidates - criticizing HUD for worsening the housing crisis with its favorable treatment of Wall Street investors and urging him to “end to the days of casino-level gambling with other peoples’ livelihoods.” That same month, the campaign sent Castro a petition with over 100,000 signatures, demanding that he change HUD’s policies on disposing troubled mortgages.
Along with the changing political climate and Castro’s ambitions, the community organizing groups’ persistence paid off.
With more homes in the hands of non-profits instead of Wall Street speculators, communities will gain further control over their neighborhoods and be less at the mercy of Wall Street. Community groups now plan to work city by city, and state by state, to make sure that HUD sells delinquent mortgage pools to mission-driven purchasers, and to continue the fight for housing justice and community control to strengthen and protect neighborhoods across the country.
By PETER DREIER
Source
Kenny Leon teams up with Marvel stars for Puerto Rico benefit
Kenny Leon teams up with Marvel stars for Puerto Rico benefit
Actress Scarlett Johansson has been in Atlanta working on Marvel’s latest “Avengers” project and keeping up with the harrowing updates out of storm-ravaged Puerto Rico. It could be Christmas...
Actress Scarlett Johansson has been in Atlanta working on Marvel’s latest “Avengers” project and keeping up with the harrowing updates out of storm-ravaged Puerto Rico. It could be Christmas before power is back on throughout the island and access to a steady supply of clean drinking water is still a challenge more than a month after Hurricane Maria hit.
Read the full article here.
CPD's Connie Razza Joins Melissa Harris-Perry to Discuss the Federal Reserve
Melissa Harris-Perry - March 7, 2014 - The Center for Popular Democracy released a report on March 3, 2015 detailing the discrepancy in unemployment between black and brown communities and white...
Melissa Harris-Perry - March 7, 2014 - The Center for Popular Democracy released a report on March 3, 2015 detailing the discrepancy in unemployment between black and brown communities and white communities. CPD is calling on the Federal Reserve to implement policies and institutional reforms that focus on creating a strong recovery for all communities.
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.
Fed Hawks Ignore Reality of Stagnant Wages, No Jobs
WSJ 12.01.2014
“A Central Bank for the Beltway” (Review & Outlook, Nov. 19) criticizes the recent work of the “Fed Up” coalition, which is advocating for transparent processes in the appointment of Federal Reserve presidents and monetary policies that promote a full employment economy.
The editorial acknowledges that “the Fed should be held politically accountable in a democracy,” and I agree. In Dallas and Philadelphia, where the current Fed presidents will be replaced this year, the public does not know how the private search firm chooses candidates, who the candidates are, by what criteria they will be judged or even when the vote will be held.
Fed governance is dominated by financial and corporate interests: Of the 108 current directors on the 12 regional Fed boards, 36 are bankers, 62 are corporate executives and just 10 are leaders of community or labor organizations. The “independ-ent policy judgment” that comes from such a structure will be advice that benefits banks and corporations, not the general public.
Our coalition believes that the voices of workers, community leaders and faith leaders will bring important perspectives to key policy debates. The Fed hawks who argue that the economy has recovered ignore the reality of stagnant wages, plummeting workforce participation rates and the rapid growth of the involuntary part-time workforce.
While near-zero interest rates have not yet been sufficient to spur a true recovery, many prominent economists—from Adam Posen to Joseph Stiglitz —have explained that raising interest rates would be catastrophic. The public, particularly the unemployed, underemployed and underpaid, recognize that the Fed should provide robust support to the economy until it reaches full speed and is creating millions of good new jobs, and wages are rising for a broad sector of working Americans who have seen their income fall or stagnate for far too long.
Shawn SebastianCenter for Popular Democracy
Source: Wall Street Journal
Developing Progress: Ensuring that public resources contribute to New York’s equity, resilience, and dynamic democracy
Progressive development policies that ensure consideration of economic, social, and environmental impacts will grow a city that is equitable, resilient, and democratic. While stimulating new...
Progressive development policies that ensure consideration of economic, social, and environmental impacts will grow a city that is equitable, resilient, and democratic. While stimulating new revenues for the city, progressive development policies will also promote the economic and environmental sustainability of our communities and provide good jobs to both construction and permanent employees.
Download the report.
Each year New York City invests $2 billion to encourage private development, but it does not require progressive development practices, transparency about job creation or other contributions to community well-being, or accountability to benchmarks that could demonstrate the return on this investment.
Starwood Capital Group’s track record for development in New York City provides a good example of the problems with the current approach to the public’s investment. While some Starwood developments meet responsible development standards, others endanger workers and other community members. Notably, on its publicly subsidized project at Pier 1 in Brooklyn Bridge Park, Starwood has partnered with a general contractor with a history of safety violations and alleged illegal behavior.
Examples like the Pier 1 project highlight the need for higher standards with stronger enforcement on projects the public invests in. Brooklyn Bridge Park – particularly, the development of Pier 6 there – offers the city an opportunity to develop principles, institute policies, and enforce standards to ensure that public resources contribute to New York’s equity, resilience, and dynamic democracy.
We recommend that immediate steps be taken as a broader set of progressive development policies takes shape:
The request for proposals for development of Brooklyn Bridge Park’s Pier 6 should include strong, clear criteria to promote the economic and environmental sustainability. Starwood Capital should use only responsible contractors and subcontractors on the Pier 1 project. Pension funds should withhold future investments with Starwood Capital until the group meets the pension funds’ Responsible Contractor standards. Developers should be legally accountable and culpable for the safety, health, and environmental conditions on their worksites. Penalties for violations of safety, health, building, and environmental standards, as well as for violations of community benefits and other agreements in public contracts should be raised.Download the full report here.
New Report Details Fundamental Flaws in Long Island Workforce Housing Act
For Immediate Release: May 14, 2015
Contact: Ricardo A. Ramírez, rramirez@populardemocracy.org, 202-464-7376
Read the report here: /documents/long-island-workforce-housing-act-report-2015-05112015pdf
Seven years after New York State passed landmark legislation to increase affordable housing on Long Island, a new report finds that not only does the affordable-housing crisis persist, but the legislation has fundamental flaws that prevent it from paving the way to affordable homes for Long Island’s families.
The Long Island Workforce Housing Act, enacted in 2008, sets affordability too high for working families, has loopholes for developers, and doesn’t require that towns report relevant information to the state, according to the report, commissioned by the Long Island Community Foundation and written by the Center for Popular Democracy, a national group dedicated to equity issues.
“There is much more work to do before our state and local laws foster a community where all working families can find affordable housing,” said Amy Carroll, Chief of Staff of the Center for Popular Democracy, who released the report. “While the Long Island Workforce Housing Act was a first step to tackle the crisis of affordable housing on Long Island, the data is clear: Seven years later, the difficult housing market is failing to provide options for Long Islanders who need affordable housing – from seniors to young professionals and working families. Worse still, the lack of affordable housing exacerbates segregation in the region, and disproportionately impacts Long Island’s working families, residents of color, and immigrant communities.”
“This truly is a crisis -- Long Island is losing large employers to other regions that are more hospitable to employers and workers,” said David Okorn, of the Long Island Community Foundation. “We’re failing to meet the needs of our elders, young professionals and working families, and Long Islanders continue to live in segregated communities.”
“After fighting for affordable housing in Garden City for more than 10 years, NYCC members know that blatant discrimination is alive and well on Long Island,” said Diane Goins, President Long Island Chapter New York Communities for Change. “When the Long Island Workforce Housing Act was passed, many low- and moderate-income residents in Nassau and Suffolk hoped that it would lead to more inclusive, mixed-income communities. CPD’s report clearly shows that this law is flawed and has failed to provide real affordable housing in our communities on Long Island, continuing the pattern of segregation that has plagued us for decades.”
"As the Assembly sponsor of the original version of this legislation, I fully support efforts to examine whether the Long Island Workforce Housing Act is working and helping Long Island families. The Center for Popular Democracy has put forth recommendations that should be considered as more efforts are needed to tackle the shortage of affordable housing on Long Island," said New York State Comptroller Thomas P. DiNapoli.
“Long Island’s housing policies, by design and by default, have failed to meet the housing needs of diverse populations; diverse racially, by income levels, by family composition, and the like,” said V. Elaine Gross, president of ERASE Racism. “Regrettably, the Long Island Workforce Housing Act has not been the hoped for solution. Now is the time to reject housing policies that concentrate poverty and segregate racially, and create policies that support racially and economically integrated communities where all residents can thrive.”
“The Act may have caused some municipalities to become more aware of their housing needs; however, it did little to stimulate the creation of affordable homes on Long Island as was its stated intent,” said Jim Morgo, Suffolk County’s first Commissioner of Economic Development and Workforce Housing. “Revisions in the law and especially state incentives would help additional municipalities meet the varied housing needs of low- and moderate-income Long Islanders.”
“Developers are ready to be part of the solution to address Long Island’s affordable housing crisis. Our members are eager to build quality, affordable homes,” said Mitch Palley, CEO of the Long Island Builders Institute. “We need local governments to work with us to change the zoning and other regulatory barriers that stand in our way.”
The report highlights significant flaws in the Act that have hampered its implementation and stresses that fixing these problems requires state policymakers to reimagine public policies that truly ensure access to affordable, quality housing for working families and foster diverse, mixed-income communities.
Flaws with the Long Island Workforce Housing Act:
Sets affordability too high and out of reach for working families in Long Island, targeting families making $140,000 per year.
Includes loopholes, such as allowing developers to build affordable units off-site, that could exacerbate racial segregation
Includes no requirements that towns keep or report information about affordable housing construction to the state to facilitate analysis of compliance with the Act;
Includes no enforcement mechanisms to allow residents or the state to hold towns or developers accountable for violations and no public education on its requirements; and
Has significant drafting and technical problems that complicate interpretation and application of the law
The report urges leaders in Long Island and New York State as a whole to take a comprehensive, holistic approach to tackling the crisis of affordability. Recommendations include:
Requirements and/or incentives for jurisdictions to accommodate their share of the regional affordable housing need;
Targeting affordability for families across the income spectrum, including those at 50% of area median income and below;
Promotion of inclusive, mixed-income communities, and steps for municipalities to affirmatively further fair housing goals;
Investment in high-poverty areas to ensure revitalization, and protections against displacement of existing low-income communities; and
Effective government oversight and enforcement, including adequate record-keeping and reporting by local governments about their efforts to address affordability and fair housing issues.
Read the report here: /documents/long-island-workforce-housing-act-report-2015-05112015pdf.
About LICF:
Since 1978, the Long Island Community Foundation has been the home of charitable Long Islanders who share a passion and commitment to improve their communities. LICF supports an array of effective nonprofits that help make Long Island a vital and secure place to live, learn, work, and play, while building permanent resources for the future. The Foundation has made more than $150 million in grants from hundreds of funds established by individuals, families, and businesses. LICF is a division of The New York Community Trust, one of the country’s oldest and largest community foundations. To learn more about LICF, go to www.licf.org.
About the Center for Popular Democracy:
CPD works to create equity, opportunity and a dynamic democracy in partnership with high-impact base-building organizations, organizing alliances, and progressive unions. CPD strengthens our collective capacity to envision and win an innovative pro-worker, pro-immigrant, racial and economic justice agenda. For more information, go to www.populardemocracy.org.
Undocumented in Texas: Surviving Hurricane Harvey and the Repeal of DACA
Undocumented in Texas: Surviving Hurricane Harvey and the Repeal of DACA
Today we bring you a conversation about undocumented families seeking relief from Hurricane Harvey, the ongoing fight against an anti-immigrant bill in Texas, DACA and more with Greg Casar, a city...
Today we bring you a conversation about undocumented families seeking relief from Hurricane Harvey, the ongoing fight against an anti-immigrant bill in Texas, DACA and more with Greg Casar, a city councilman in Austin representing District 4.
Puerto Rican Families Displaced in Florida by Hurricane María Recruited as Potential Voters
Puerto Rican Families Displaced in Florida by Hurricane María Recruited as Potential Voters
The Summer for Puerto Rico campaign is spearheaded by Julio López Varona, the Director of Puerto Rico Diaspora Campaigns at the Center for Popular Democracy. He emphasized that the focus of the...
The Summer for Puerto Rico campaign is spearheaded by Julio López Varona, the Director of Puerto Rico Diaspora Campaigns at the Center for Popular Democracy. He emphasized that the focus of the campaign is on promoting political empowerment and literacy, by providing context on who are the lawmakers, and teaching communities about the effects of colonialism.
Read the full article here.
How Homeowners Made May a Month You Won't Forget
The Huffington Post - May 21, 2013, by Tracy Van Slyke - On Monday, dozens of homeowners and community leaders were arrested outside the Department of Justice in protest of Attorney General Eric...
The Huffington Post - May 21, 2013, by Tracy Van Slyke - On Monday, dozens of homeowners and community leaders were arrested outside the Department of Justice in protest of Attorney General Eric Holder's lack of will to hold the big banks' accountable for their abusive practices that led to the economic crash and continues to damage millions of homeowners and our economy today.
Members of the Home Defender's League and Occupy Our Homes climbed the barriers and locked arms, set up foreclosure tents, blocked all entrances to the building and took over the intersections surround the Department of Justice. Four police officers had to carry one protestor to a paddy wagon (See the pictures from the action here.) Upon their arrest, instead of presenting their own identification, homeowners presented police with their new ID's -- claiming to be Jon Stumpf of Wells Fargo or Brian Moynihan of Bank of America -- with the message, "arrest the real criminals."
The action is not only happening in Washington, D.C. On Sunday, the Minnesota legislature passed the "Homeowner Bill of Rights" which among many amazing things, bans "dual tracking" preventing servicers from foreclosing without a clear yes or no on loan modification and allows homeowners to take a bank to court to stop foreclosure if the bank fails to comply with any aspect of the law. The campaign was led by an amazing collaboration of Minnesota grassroots organizations.
This flurry of activity in the last few days comes on the heels of other major housing justice moments in May -- making it one of the important months in the fight for our economic future that has come in a long time.
It has been a full five years since banks crashed the economy and more than a year since President Obama announced a special task force to investigate big bank crimes. Ever since, homeowners and community members have been fighting for fair and deserved relief and justice.
On May 1, President Obama announced the nomination of Rep. Mel Watt (D-NC) to become the permanent director of the Federal Housing Finance Administration. This came after a 16-month grassroots campaign led by the New Bottom Line for President Obama to "Dump (Ed) DeMarco" the acting Director of FHFA, which oversees Fannie Mae and Freddie Mac. With DeMarco in charge to the two agencies that control more than half the mortgage market, his obstinante and destructive opposition to principal reduction -- resetting mortgages to fair market value -- is blocking the needed policy to support homeowners, benefit taxpayers and boost the entire economy.
It's clear that a new direction is needed at FHFA-one that supports homeowners now, but also resuscitates the long-term housing market and boosts our economy.The Senate must now approve Watt-and this will clearly be a fight unto itself. But the nomination was the first major milestone in a long-waged campaign that often felt endless with no change in sight. It proved that determination, grit, creativity and grassroots organizing can actually make a difference for real people.
And this is critical, because just last week, the new report, "Wasted Wealth: How the Wall Street Crash Continues to Stall Economic Recovery and Deepen Racial Inequity in America," details how the foreclosure crisis is still devastating our communities and our economy to this day. According to the report, big banks' unscrupulous lending practices caused a mass loss of homeownership and wealth in communities across the country. In 2012, the foreclosure crisis continued to destroy wealth on a large scale with $192.6 billion in wealth lost across the U.S. That's right-$192.6 BILLION. And with more than 13 million homes still underwater and at risk of foreclosure, Americans stand to lose nearly $221 billion in additional wealth from these mortgages alone.
But it was communities of color, who were specifically targeted with sub-prime and high-risk loans, that have fared the worst. The report shows how zip codes with majority people of color populations saw 16 foreclosures per thousand households with an average of $2,200 in lost wealth per household. Wasted Wealth also documents how a strategy of principal reduction would save money for homeowners, boost the economy to the tune of $101.7 billion, and create 1.5 million jobs.
Which leads us to the civil disobedience on Monday. Homeowners like Giselle Mata of Whittier, CA (watch her video here) were arrested because they are fighting for their homes, their livelihood, their children, and our communities. They did it because there are too many people unfairly suffering, while the big banks and their top officials continue to profit. And nothing, I repeat, nothing has been done to hold these big banksters accountable. The Department of Justice has been neglectful, and some would allege, deliberately blocking any investigation into big banks.
In fact Holder's remarks back in March, sum up the the entire state of neglect at the Justice Department.
I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. And I think that is a function of the fact that some of these institutions have become too large.
(Of course, he backed down from this statement, just a few days ago, but the evidence of inactivity is clear. )
The "Bring Justice to Justice" action is the climax to years of organizing and calling on the White House and the Department of Justice to investigate big banks and provide restitution for homeowners. Homeowners will be staying in jail for days to come and they don't intend to back down from this fight.
May exemplifies the highs and lows of what we've been fighting for. This work is not just about righting past wrongs, it's also about our future. It's about the future of our retirement, our kids' lives, the kind of communities we want to live in and about our country's economic future. We need principal reduction to support homeowners now and boost our economy for everyone. We need the big banks and bankers fully investigated because we can't risk another economic catastrophe that our country went through in the last few years.
We have shown what we are willing to do for our country. Now it's time for our elected officials to do the same.
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