Housing advocates accuse Wells Fargo of damaging communities through foreclosures
89.3KPCC - March 13, 2013 - Wells Fargo writes the most mortgages in California. According to a ...
89.3KPCC - March 13, 2013 - Wells Fargo writes the most mortgages in California. According to a new report released Tuesday from a consortium of grassroots activists and housing advocates, 11,616 of those loans are currently in foreclosure, out of roughly 65,000 homes in foreclosure in the state.
The report accuses Wells Fargo of damaging both California communities and the state’s overall economy. It was produced by the Alliance of Californians for Community Empowerment, the Center for Popular Democracy, and the Home Defenders League.
Ross Rhodes of the Alliance of Californians for Community Development said on a conference call Tuesday that Wells Fargo was singled out because the bank is "responsible for handling more delinquent loans than any other servicer."
He added that Wells Fargo is failing to live up to the terms of last year's mortgage settlement between the states and the country's biggest banks. Rhodes said that Wells is lagging behind both Bank of America and Chase in efforts to keep people in their homes.
In a statement, Wells Fargo said that its foreclosure rate in California is lower than its rate in the nation as a whole and that the report "appears to be an attempt to question Wells Fargo’s longstanding track record as a fair and responsible lender and servicer."
The bank emerged from the financial crisis relatively unscathed. But in recent years it has been called to task for past lending practices. It was was fined $175 million by the Justice Department in 2012 for steering minorities into costly subprime loans before the housing crisis.
The bank was also fined $148 million by the Securities and Exchange Commission for violations perpetrated by Wachovia Securities (Wells took control of Wachovia in 2008, at the height of crisis, when major U.S. banks were failing).
The report also argues that Wells Fargo’s foreclosures in the state are disproportionately affecting African American and Latino neighborhoods and could wind up costing the state $20 million in lost tax revenue.
The authors say that the solution is “principal reduction” — adjusting mortgages to reflect the reduced market value of homes in foreclosure.
Numerous economists support the idea of principal reduction, but the notion has been resisted at the federal level, most notably by Edward DeMarco, acting director of the Federal Housing Finance Agency, which has overseen mortgage giants Fannie Mae and Freddie Mac since they were taken into receivership during the financial crisis.
DeMarco has supported principal forbearance, a method that would not reduce the amount of mortgages held by Fannie and Freddie but rather restructure them so that homeowners could see more affordable payments.
The report's consortium of advocates doesn't favor forbearance, arguing that it can't address the core issue of borrowers drowing in debt.
But as tempting as principal reduction might be in theory, in practice is doesn't always lead to the homeowner staying in the home.
Economist Stuart Gabriel is Director of the Ziman Center for Real Estate at UCLA. He said that principal reduction isn't a "cure all."
"For borrowers that are deeply underwater, a modest amount of principal reduction is going to make no difference the ultimate outcome, which would be default and foreclosure," Gabriel said.
In its statement, Wells Fargo called its principal reduction efforts since 2009 "aggressive." But the advocacy groups said that Wells Fargo is one of the most difficult banks to work with, and that it engages in "dual tracking" — undertaking loan modifications at the same time it moves forward with the foreclosure process.
The report also recommends that Wells Fargo disclose more data about its foreclosures, and specifically about the impact that foreclosures are having on minority neighborhoods in California.
Gabriel said that more transparency about lending practices and the racial and geographical makeup of loan portfolios is always a good thing because additional information improves markets.
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Report: Starbucks Scheduling Problems Remain Despite 2014 Pledge
Starbucks officials asked store managers to ...
Starbucks officials asked store managers to "go the extra mile" to improve employee scheduling in the aftermath of a scathing report issued by an advocacy group this week.
The nonprofit Center for Popular Democracy alleged that the company largely failed to deliver on its promises to alter scheduling practices in 2014.
More than a year ago, a New York Times report chronicled the havoc wreaked on Starbucks' baristas by its sophisticated scheduling technology.
In response, the coffeehouse giant vowed to establish more consistent hours, provide more notice regarding schedules and prevent workers who close stores from having to reopen again just hours later.
According to the CPD report, however, nearly half of 200 employees surveyed reported receiving schedules with one week or less of notice.
Employees also said that although schedules generally followed the previous week's pattern, dramatic fluctuations could happen in any week.
One in four respondents, meanwhile, said that either they or their coworkers still were scheduled to "clopen" stores.
"Many Starbucks scheduling policies fail to reflect the company’s human-focused values, while other policies designed to promote sustainable schedules have been implemented inconsistently," the group wrote in the report.
Company spokeswoman Jamie Riley told the Times this week that the CPD report "doesn’t align with what we’re seeing," but that the company is "the first to admit we have work to do."
Meanwhile, Cliff Burrows, Starbucks’ U.S. chief, responded with a memo to store managers calling for a "consistent schedule — free of back-to-back close and open shifts that are less than 8 hours apart — that is posted 2 weeks in advance."
Source: Manufacturing.net
How Municipal ID Cards Make Cities More Inclusive
This week Newark, New Jersey, ...
This week Newark, New Jersey, became the latest in a growing number of cities to adopt a municipal ID program. The IDs, available to all residents 14 and older, will be especially useful to undocumented immigrants, the homeless, formerly incarcerated people, and other populations who may not be able to present documents typically required for state-issued cards.
One notable addition to this list: transgender people. Unlike other forms of state and federal identification, Newark’s new card will not list the holder’s gender. The omission is expected to benefit those who do not identify with the gender listed on their birth certificate or other official documents.
Gender sensitivity is a relatively new development within the relatively newphenomenon of municipal IDs. In 2007, New Haven, Connecticut, became the first city in the U.S. to offer city IDs, followed by several cities in California (including San Francisco and Los Angeles), Washington, D.C., New York City, and a few others. In every case, undocumented immigrants were the main target group for the cards. But when San Francisco launched its ID program in 2007, the city made a point of omitting a gender marker (“male” or “female”) from the card, and in 2014 New York City became the first jurisdiction to allow local ID card holders to self-designate their gender.
Michael Silverman, executive director of the Transgender Legal Defense & Education Fund, hopes that more cities will embrace self-designation on municipal IDs. “Since transgender people face so much discrimination based on sex, it’s important that they have ID that matches who they truly are and how they appear to the outside world,” he says. It’s a human rights issue, since IDs confer access to virtually every aspect of public life. When applying for jobs, public benefits, or other services that require identification, the option to affirm one’s gender identity (or omit it) can be significant. Sometimes, Silverman says, ID is the “only layer of support” for a person’s gender identity.
Gender markers are just one battleground in the struggle for gender-flexible documentation, however. Most states don’t allow people to change the gender on their birth certificates unless they undergo sex-reassignment surgery—difficult-to-define procedures that many transgender people either do not want or cannot afford. TLDEF has represented transgender people in West Virginiaand South Carolina who were asked to remove wigs, makeup, and other items associated with female gender expression before taking their driver’s license photos, and the ACLU recently sued the state of Michigan for requiring proof of reassignment surgery to change gender markers on state IDs.
But Silverman senses a sea change in public attitudes on gender identity, buoyed by the high-profile stories of Laverne Cox and Caitlyn Jenner. In Newark, New York, and San Francisco, gender identity has become part of the conversation surrounding municipal IDs—one that has so far focused on the legal rights of undocumented immigrants. Silverman predicts that, moving forward, “municipalities will look to what other similar cities have done, and will take the concerns of the local transgender population into account when they plan these types of programs.”
In a 2013 report on municipal ID programs across the U.S., the Center for Popular Democracy wrote that “cities that offer ID to their residents regardless of immigration status are making a powerful statement of welcome and inclusion.” The same goes for cities who do so regardless of gender identity.
Source: The Atlantic's CityLab
Democrats are back in the fight for the Arizona Eighth Congressional District: All Bets are Off.
Democrats are back in the fight for the Arizona Eighth Congressional District: All Bets are Off.
Trump won by over 20 points, the Democrat leads in fundraising as well, aided in part by Ady Barkan, a wealthy...
Trump won by over 20 points, the Democrat leads in fundraising as well, aided in part by Ady Barkan, a wealthy Democratic activist with the Center for Popular Democracy who was recently diagnosed with A.L.S. (Lou Gehrig’s Disease). In speaking with Bill Roe, the First Vice Chair of the Arizona Democratic Party, he indicated that this race is unpredictable for several reasons.
Read the full article here.
Second Draft of Scaffold Report Released
Times Union - September 3, 2014, by Casey Seiler - SUNY's Nelson A. Rockefeller Institute of Government has released a...
Times Union - September 3, 2014, by Casey Seiler - SUNY's Nelson A. Rockefeller Institute of Government has released a second draft of its controversial report on New York's Scaffold Law. According to the Institute's Deputy Director for Operations Robert Bullock, it's the only remaining version of the report that was shared with the report's funder, the state Lawsuit Reform Alliance.
The business-backed group, which opposes Scaffold Law, paid $82,800 to fund the report — sponsorship that has led critics to attack the study as advocacy in the guise of research. Its authors, however, insist the research was conducted in good faith.
Scaffold Law, which places "absolute liability" on employers for gravity-related workplace injuries, is supported by labor unions but opposed by business groups that claim it needlessly drives up construction costs — a thesis backed up in part by the report. Opponents would like to see New York follow other states by adopting a "comparative negligence" standard that would make workers proportionately responsible when their actions contribute to an accident.
The Center for Popular Democracy, a labor-backed group that supports Scaffold Law, lambasted the report upon its release last winter and requested copies of all communications between the institute and the Lawsuit Reform Alliance. That FOIL request produced a series of emails between researchers and LRA Executive Director Tom Stebbins, including Stebbins' suggested edits to a June 25, 2013, draft copy of the report that was not initially released by the institute.
The center appealed to SUNY, which ultimately released the June 25 draft. A comparison of the draft and the final report suggested that some of Stebbins' suggestions were reflected in the final version. Researchers, however, said any changes were the result of their efforts to sharpen their analysis, and not made due to pressure from the funder.
The newly released draft, dated Aug. 7, 2013, closely resembles the final report.
The center's Josie Duffy claims the six-week gap between the first and second drafts suggests that the institute moved quickly to follow the alliance's edits.
"SUNY says it has now disclosed everything it has, but given that LRANY and the authors held weekly conference calls to discuss the report's progress, we may never know the full extent of their influence over the final version," she said.
In an email, Bullock said the institute "has been open and honest about its contacts with funders and its research has been and will continue to be immune from influence."
"It is unfortunate," he added, "that a research organization known throughout the nation for the quality and character of its work should have to defend itself from accusations leveled by the Center for Popular Democracy, an organization well known for its partisanship."
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Immigration Advocates on SB 4: We’re Resisting in Texas
Immigration Advocates on SB 4: We’re Resisting in Texas
Grassroots leaders and local officials wasted little time organizing a coordinated campaign to fight SB 4, a new Texas...
Grassroots leaders and local officials wasted little time organizing a coordinated campaign to fight SB 4, a new Texas law that targets cities, towns and sheriffs that don’t cooperate with federal immigration enforcement.
Only nine days after Texas Republican Gov. Greg Abbott signed the legislation, formally known as Senate Bill 4, into law, grassroots advocates announced a “Summer of Resistance” campaign May 16. The statute allows police officers, sheriff deputies and Texas state troopers to ask about a person’s immigration status – whether they are here legally – during a routine stop.
Read the full article here.
Protesters Stage 'Die-In' At Harvard Museum To Criticize Namesake's Link To Opioid Crisis
Protesters Stage 'Die-In' At Harvard Museum To Criticize Namesake's Link To Opioid Crisis
Several organizations, including the Center for Popular Democracy, SIFMA NOW, ACT UP Boston, participated in the...
Several organizations, including the Center for Popular Democracy, SIFMA NOW, ACT UP Boston, participated in the protest.
Read the full article here.
Why Recent Stock Volatility Shouldn’t Factor Into Interest-Rate Hikes
As a general principle, the Fed should not react to short-term movements in the financial markets. For one thing, the...
As a general principle, the Fed should not react to short-term movements in the financial markets. For one thing, the labor market is much more important to the lives of most Americans, and it is more relevant to the Fed’s mandate of securing maximum employment with inflation stability.
Then consider this: More than 80% of stock wealth in the U.S. is owned by the wealthiest 10% of Americans, and more than half of Americans own no stocks at all (either directly or through retirement or other accounts). In short, movements in the stock markets do not have much effect on the spending power of most U.S. households. That means that movements in the stock markets–especially short-term volatility that is likely to largely dissipate–provides little information about the overall state of economic health.
On the other hand, the labor market provides the vast majority of income to the vast majority of Americans. The middle fifth of households, for example, gets more than 80% of household income directly from the labor market (either cash wages or employer-provided benefits). Further, many additional sources of income such as pensions, Medicare, Social Security, unemployment insurance, or the Earned Income Tax Credit hinge on participation in the labor market. That’s why trends in the labor market are crucial to assessing the overall state of the economy–which is far from fully recovered from the Great Recession.
The clearest remaining weakness is wages. The current pace of hourly wage growth is roughly 2% to 2.5%. A healthy labor market that met the Fed’s overall price inflation target should be churning out wage increases of at least 3.5%. Further, a period of wage growth well above this is necessary for workers’ pay to reclaim some of the ground lost to corporate profits earlier in this recovery. Until wage growth starts moving durably toward the healthy 3.5% target, it’s too early for the Fed to begin raising rates.
This labor-market-based reasoning for keeping rates low should weigh much more heavily on Fed calculations about interest rates than recent stock activity. The only caveat: if one of the root causes of recent stock market declines–the slowdown in the Chinese economy–provides a new potential headwind to U.S. growth going forward.
But the case for keeping rates unchanged in September was dispositive last week, even before large declines in the stock markets. And any strong stock rally in the coming month shouldn’t make Fed officials feel fine about raising rates.
Source: Wall Street Journal
Downtown Protest Held Over Racial Disparity in Employment
KMOV St. Louis - March 5, 2015, by Steve Savard - About 12 people rallied outside the Federal Reserve Bank of St. Louis...
KMOV St. Louis - March 5, 2015, by Steve Savard - About 12 people rallied outside the Federal Reserve Bank of St. Louis Thursday to protest the racial disparity in employment in the St. Louis region.
White unemployment in the St. Louis area is 5.7 percent, African American unemployment is 14.1 percent. Organizers said they want the Fed to adopt policies focused on getting more people get back to work.
“It’s not easy getting a job, when you are qualified even when you look the part,” one demonstrator said.
Organizers said the story of one attendee demonstrates the problem.
“When you do get the job, it’s something to get you buy, but it’s not a livable wage,” Ray Rounds said.
Rounds said he left a low paying job to go back to school at the Green Technology Training Program at St. Louis University.
“I’m certified in lead remediation, mold, asbestos, permit required confined spaces, hazardous material. I’ve got 17 of those certificates I was really proud of and I was ready to go to work,” Rounds said.
Rounds said he has not been able to land a job in the two years since he finished school.
“It’s pretty frustrating because with all I thought that I had accomplished. It’s meaningless because there are no jobs,” Rounds said.
Rounds has been attending rallies, working with churches and other organizations to try and make a difference. He hopes the contacts he has made will help him land a job.
Demonstrators also said they want to see more diversity on the Federal Reserve Board.
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How Can We Combat Wage Theft And Protect Immigrant Workers?
How Can We Combat Wage Theft And Protect Immigrant Workers?
Every year, millions of workers suffer from wage theft when employers or companies do not pay them what they are owed....
Every year, millions of workers suffer from wage theft when employers or companies do not pay them what they are owed. Wage theft, which costs America’s low-wage workers an estimated $50 billion each year, comes in different forms. An employer could keep customer tips instead of paying them out to workers, force employees to work off the clock without compensation, or illegally deduct the cost of uniforms or work tools from employees’ paycheck.
Read the full article here.
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