Veepstakes: Julian Castro moves to shore up a potential weakness
Veepstakes: Julian Castro moves to shore up a potential weakness
The controversial federal program that clouded the HUD secretary's VP prospects gets a timely overhaul.
Julian Castro’s Housing and Urban Development Department announced significant...
The controversial federal program that clouded the HUD secretary's VP prospects gets a timely overhaul.
Julian Castro’s Housing and Urban Development Department announced significant changes Thursday to a federal program that sold delinquent mortgages to private investors — a move that mollified progressive critics who threatened to undermine his vice presidential prospects.
With three weeks remaining until the Democratic convention and Hillary Clinton’s campaign narrowing down its list of potential ticket mates, the U.S. housing agency said it is changing a controversial program to give delinquent homeowners a new chance to reduce the principal they owe on their mortgage. The changes also prohibit financial firms from giving up on trying to sell or recuperate decrepit properties the businesses would rather walk away from.
As HUD secretary since 2014, Castro had been under attack from by at least 11 Latino and populist groups for his oversight of the department’s “distressed asset stabilization program,” which sold struggling homeowners’ mortgages to hedge funds. Castro, they alleged, failed to deliver on a HUD promise to sell more mortgages to non-profit community groups instead of financial firms.
Started in 2012, the program’s two stated objectives are to help struggling residents while also clearing billions of dollars of bad debt off the agency’s books. But liberals have argued the program undermines homeowner protections, especially for people in low-income neighborhoods, as HUD sold mortgages to the same financial firms that exploited borrowers in the lead-up to the 2008-2009 recession.
The changes came not long after Castro surfaced on Clinton's short list of vice presidential candidates — along with Sens. Tim Kaine and Elizabeth Warren — leading to immediate speculation about the HUD secretary’s political motivations.
Warren was among those calling for major reforms to the program.
“Given that Secretary Castro has only spent a brief time on the national stage, the black mark caused by the distressed asset issue stands out prominently on his record,” said Isaac Boltansky, director of policy research for Compass Point Research & Trading in Washington. He covers housing policy.
“There is no question that the left’s attack of this program generally — and Secretary Castro specifically — lowered the odds of him being tapped,” he said.
As severely-delinquent mortgages accumulated after the recession, the Federal Housing Administration, a division of HUD, needed to reduce debt liabilities to the government.
Under the program, delinquent loans held by banks but insured by the FHA are sold to new buyers, including hedge funds, private-equity firms and non-profit community groups. Through May 2016, HUD sold more than 105,000 FHA-insured loans valued at $17 billion, according to a report by the National Consumer Law Center.
Castro has not said much publicly about the program, which in recent weeks erupted into a politically-charged issue for the Obama administration, said sources with familiar with the situation.
The program was supposed to give struggling homeowners another chance to avoid foreclosure. But researchers following the program said that financial companies have used it to circumvent homeowner safeguards.
“If you have an option of selling your loan through [the] DASP, then you don’t have to go through state foreclosure procedures that have the consumer protections in them and actually help enforce FHA rules,” said Geoff Walsh, author of NCLC’s report. He previously worked as an attorney with Vermont Legal Aid, Inc. and specialized in housing, consumer and bankruptcy areas. “A lot of damage has been done,” he said.
The liberal groups held Castro responsible for the program’s flaws, even though it started before his tenure at HUD. But the groups immediately applauded HUD’s new changes to the program that they had advocated for.
Their website attacking Castro was still live on Friday, though it will be updated to reflect HUD’s changes, said Matt Nelson, managing director of Presente.org, which claims to be the largest U.S. online Latino organizing group.
Housing experts acknowledged that pressure from advocacy groups — which used the issue to question Castro’s progressive credentials — played a role in the revisions.
“But for his potential to be vice president, these changes probably don’t get made,” said Edward Gorman, head of community development for the National Community Reinvestment Coalition, whose members include nonprofits that buy DASP loans.
“It was the specific targeting of the secretary on this issue and the gathering of liberal senators in support that caused the [Obama] administration and the secretary particularly to take another look at this issue,” he said. “This will be fodder for Republicans. This will become a political issue.”
For Castro, it had already metastasized into an issue that clouded his vice presidential prospects. Widely regarded as one of the Democratic Party’s rising Latino stars, the former San Antonio mayor was targeted by a coalition of activist groups that recognized the leverage afforded to them by a presidential primary fight colored by questions about Clinton’s ties to Wall Street and Bernie Sanders’ populist, anti-Wall Street rhetoric.
“HUD has continually enhanced the DASP program by making improvements before every sale since 2014,” an agency spokeswoman said in a statement. “As a result, tens of thousands of families have been able to remain in their home or avoid foreclosure through the program.”
Maurice Weeks, a housing staffer at the Center for Popular Democracy, one of the groups supporting the attack on Castro’s handling of the DASP, said he is grateful to see the changes HUD announced. But his group will want to make sure the changes actually result in better conditions for communities.
“It became a political problem for Castro since he’s the head of that department,” Weeks said. “We didn’t set out to determine if Castro was a good VP candidate or not. Our focus was on homeowners across the country.”
By PATRICK TEMPLE-WEST
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Williams picked as next president of New York Fed
Williams picked as next president of New York Fed
But Shawn Sebastian, director of the Fed Up Coalition, a collection of liberal groups, said the New York Fed search process had failed in its job to offer diverse candidates. "The New York Fed's...
But Shawn Sebastian, director of the Fed Up Coalition, a collection of liberal groups, said the New York Fed search process had failed in its job to offer diverse candidates. "The New York Fed's claims that there are no qualified candidates who are women or people of color working in the public interest who would take this job are untrue," he said in a statement.
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AG-elect Ellison announces transition team
AG-elect Ellison announces transition team
Minnesota Attorney General-elect Keith Ellison announced a 36-member transition advisory board on Monday that includes state legislators, prominent attorneys, union members — and even a past...
Minnesota Attorney General-elect Keith Ellison announced a 36-member transition advisory board on Monday that includes state legislators, prominent attorneys, union members — and even a past political opponent.
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Activists in Jackson Hole Pressure Fed on Inflation, Endorse Yellen
Activists in Jackson Hole Pressure Fed on Inflation, Endorse Yellen
JACKSON HOLE, Wyo.—The liberal Center for Popular Democracy’s Fed Up campaign has criticized Janet Yellen’s Federal Reserve in recent years for raising interest rates, lacking diversity in its...
JACKSON HOLE, Wyo.—The liberal Center for Popular Democracy’s Fed Up campaign has criticized Janet Yellen’s Federal Reserve in recent years for raising interest rates, lacking diversity in its senior ranks and retaining a quasi-private legal structure for its regional reserve banks.
Green-shirted Fed Up activists again have set up shop outside the central bank’s annual retreat in Grand Teton National Park. But this year, their critique of the Fed is paired with praise for Ms. Yellen and a demand that she remain the central bank’s chairwoman for another four-year term.
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New Report: Racial Disparities Continue at an Alarming Rate for Black Communities
KPFT Houston Radio - March 6, 2015, by Tucker Wilson - CPD's Policy Advocate Shawn Sebastian joins KPFT Radio to discuss racial disparities in unemployment and how the Federal Reserve can build a...
KPFT Houston Radio - March 6, 2015, by Tucker Wilson - CPD's Policy Advocate Shawn Sebastian joins KPFT Radio to discuss racial disparities in unemployment and how the Federal Reserve can build a strong economy for all communities.
Listen to the clip here.
Harvard's Endowment Is Profiting From Puerto Rico's Debt As The Island's Schools Face Crippling Cuts
Harvard's Endowment Is Profiting From Puerto Rico's Debt As The Island's Schools Face Crippling Cuts
Bearing a large banner reading “Harvard Divest from Baupost,” hundreds of activists marched at Harvard Yard on Wednesday. Members of the Harvard Student Labor Action Movement participated in the...
Bearing a large banner reading “Harvard Divest from Baupost,” hundreds of activists marched at Harvard Yard on Wednesday. Members of the Harvard Student Labor Action Movement participated in the protest, along with union groups, community organizers affiliated with the Center for Popular Democracy, and anti-hedge fund activists with the coalition Hedge Clippers.
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What working moms really need for Mother's Day this year
What working moms really need for Mother's Day this year
When Mother's Day became a national holiday in the U.S. more than a century ago, women were a relative rarity in the workforce. Today's mom, by contrast, is largely a working mom.
In half...
When Mother's Day became a national holiday in the U.S. more than a century ago, women were a relative rarity in the workforce. Today's mom, by contrast, is largely a working mom.
In half of American households, women are either the primary breadwinner or contribute more than 40 percent of the income. For most families, the added income from women going to work is the only thing that's kept family income steady, as individual worker wages have stagnated for the better part of four decades.
Read full article here.
Help for Immigrants
Polish Daily News - November 7, 2013 - Contrary to the defendants under the criminal justice system, people in immigration detention have no right to a lawyer from the office. As part of the New...
Polish Daily News - November 7, 2013 - Contrary to the defendants under the criminal justice system, people in immigration detention have no right to a lawyer from the office. As part of the New York Immigrant Family Unity Project about 190 immigrants in detention facing deportation, you can seek legal help.
New York immigrate Family Unity Project (NYIFUP) is an initiative that emerged from seven years of research and interviews with immigration lawyers and defenders of the rights of immigrants. They gave their opinions that the lack of a competent legal representation for many New York immigrants, unfamiliar with the law, do not have money for lawyers and having problems with the language, is unnecessary deportations, which lead to the separation of families and are an unnecessary financial ballast to the government.
Last summer, the New York city council has allocated 500 000 dollars. to fund a pilot program, whose task was to test the reasonableness of the initiative. The draft law school joined them. Benjamin N. Cardozo, and several organizations fighting for immigrant rights, and so created a program of assistance to 190 immigrants.
"It is a matter of justice - says Peter L. Markowitz, a professor at Cardozo Law School. - This is an opportunity to initiate changes in the way immigrants are treated in our country."
In the future, originator NYIFUP plan to organize legal assistance for all poor immigrants awaiting deportation in immigration detention: in New York, Batavia, NY, Newark and Elizabeth, New Jersey. Annually, these centers gets about 2,450 immigrants.
The full annual cost of the program is estimated at 7.4 million dollars. His supporters argue that reducing the time that immigrants spend in detention centers, and limit the number of deportations will bring savings of 5.9 million per year.
W przeciwieństwie do oskarżonych podlegających systemowi sądownictwa karnego, osoby przebywające w więzieniach imigracyjnych nie mają prawa do prawnika z urzędu. W ramach New York Immigrant Family Unity Project około 190 imigrantów w ośrodkach zatrzymań, którym grozi deportacja, skorzystać może z pomocy prawnej.New York Immigrat Family Unity Project (NYIFUP) to inicjatywa, która wyłoniła się siedem lat temu z badań i rozmów z prawnikami imigracyjnymi oraz obrońcami praw imigrantów. Opiniowali oni, że brak kompetentnej reprezentacji prawnej dla wielu nowojorskich imigrantów, nieznających prawa, nieposiadających pieniędzy na prawników i mających problemy z językiem, oznacza niepotrzebne deportacje, które doprowadzają do rozłąki rodzin i są niepotrzebnym balastem finansowym dla rządu.
Ubiegłego lata nowojorska rada miasta przeznaczyła 500 000 dol. na sfinansowanie pilotażowego programu, którego zadaniem było przetestowanie sensowności inicjatywy. Do projektu włączyła się szkoła prawnicza im. Benjamina N. Cardozo oraz kilka organizacji walczących o prawa imigrantów i tak powstał program pomocy dla 190 imigrantów.
"To jest kwestia sprawiedliwości – mówi Peter L. Markowitz, profesor w Cardozo Law School. – To szansa na zapoczątkowanie zmian w sposobie, w jaki traktowani są imigranci w naszym kraju".
W przyszłości pomysłodawcy NYIFUP planują zorganizować pomoc prawną dla wszystkich niezamożnych imigrantów oczekujących na deportację w więzieniach imigracyjnych: w mieście Nowy Jork, Batavia, NY, Newarku i Elizabeth w New Jersey. Rocznie do tych ośrodków trafia około 2450 imigrantów.
Pełny roczny koszt tego programu szacowany jest na 7,4 miliona dolarów. Jego zwolennicy argumentują, że skrócenie czasu, jaki imigranci spędzają w ośrodkach zatrzymań, oraz ograniczenie liczby deportacji przyniesie oszczędności w wysokości 5,9 miliona rocznie.
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Puerto Ricans protest at FEMA on six month anniversary of Hurricane Maria
Puerto Ricans protest at FEMA on six month anniversary of Hurricane Maria
WASHINGTON, D.C. — A crowd of energized Puerto Ricans rallied in the U.S. capital on Tuesday, demanding equal treatment from the Trump administration and decrying the island’s ongoing woes on the ...
WASHINGTON, D.C. — A crowd of energized Puerto Ricans rallied in the U.S. capital on Tuesday, demanding equal treatment from the Trump administration and decrying the island’s ongoing woes on the sixth month anniversary of Hurricane Maria making landfall.
“We are here today for our families in Puerto Rico,” said Julio López-Varona, an organizer with the Center for Popular Democracy. “On the six month anniversary of Hurricane Maria, things are not better.” Read more here.
Groups launch 'people's filibuster' against GOP health bill
More than a dozen groups opposing the Senate GOP's healthcare bill will hold a "people's filibuster" for two days on the lawn of the Capitol.
Activists and Democratic lawmakers will speak...
More than a dozen groups opposing the Senate GOP's healthcare bill will hold a "people's filibuster" for two days on the lawn of the Capitol.
Activists and Democratic lawmakers will speak out against the ObamaCare repeal bill Monday and Tuesday and possibly later in the week.
Read the full article here.
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