Black Unemployment Dips to 7-Year Low
The Black unemployment rate tumbled to 9.1 percent in July, the lowest rate for Black workers in seven years, according...
The Black unemployment rate tumbled to 9.1 percent in July, the lowest rate for Black workers in seven years, according to the latest jobs report from the U.S. Labor Department.
Even though the Black jobless rate has slowly ticked down to 2008 levels, some economists expressed concerns about the labor force participation rate, the measure of people who are employed or looking for jobs. The Black labor force participation rate decreased from 61.7 percent in June to 61.5 percent in July, which could indicate that the unemployment rate fell because some people simply gave up looking for work.
By comparison, the White unemployment rate and the labor force participation rate remained unchanged from June levels, 4.6 percent and 62.8 percent, respectively.
Valerie Wilson, an economist at the Economic Policy Institute, a Washington, D.C. based think tank focused on low- and middle-income families, found that Tennessee had the lowest Black jobless rate (6.9 percent) in the second quarter of 2015, which was almost the same as the highest White unemployment rate (7 percent in West Virginia).
Wilson also reported that the African American unemployment rate “was at or below its pre-recession level in eight states”: Michigan, Indian, Ohio, Tennessee, Mississippi, Texas, Illinois, and Missouri.
In the press release on her analysis of state unemployment rates by race and ethnicity, Wilson said that even though the Black unemployment rate has returned to pre-recession levels in those eight states, the states that are seeing improvements, with the exception of Texas, had the highest Black unemployment rates in the nation before the recession.
“African Americans are still unemployed at a higher rate than their white counterparts in almost every state,” Wilson said. “We need policies that look beyond simply reducing unemployment to pre-recession levels as an end goal.”
The national unemployment rate was 5.3 percent and 215,000 jobs were created in July.
Economic indicators for Black male workers over 20 years old followed the same pattern as Black workers in general. The Black male unemployment rate plunged to 8.8 percent from 9.5 percent the year before, but the participation rate also decreased from 67.6 percent in June to 67 percent in July.
On the other hand, Black female workers not only saw a slight increase in their month-over-month jobless rate as it edged up from 7.9 percent June to 8 percent in July, their labor force participation rate also increased from 62 percent to 62.1 percent, which could signal that Black women are entering the labor force and finding work.
In a statement about the jobs report, Rep. Robert C. “Bobby” Scott (D-Va.) said that the report showed that economy is still improving, growing and heading in the right direction.
“With the sixty-fifth consecutive month of private sector job growth, and the unemployment rate holding at 5.3 percent, our nation continues to recover from the 2008 economic recession,” said Scott. “Americans are finding more opportunities to get back to work, and put more money into their pockets.”
He also said, “While this is excellent news, our efforts to rebuild our economy are not complete until every person who wants a job is able to find a stable one.”
Connie Razza, the director of Strategic Research for the Center for Popular Democracy (CPD), a group focused on racial justice that describes itself as “pro-worker” and “pro-immigrant,” said that the latest job numbers show that flat wages and a sluggish recovery continue to threaten the livelihood of working families.
“Federal Reserve officials must look beyond the topline employment figures to determine whether the economy has truly recovered,” said Razza in a statement. “Even the state with the lowest rate of Black unemployment still has a rate equivalent to the state with the highest White unemployment rate.”
Razza continued: “With Black families still out of work and wage growth nowhere to be found, the economy is simply not ready for the Fed to slow it down.”
She warned the Federal Reserve against raising interest rates in 2015.
“While there are reports of the Fed staff suggesting one interest rate hike to 0.35 percent in the fourth quarter, compared to the [Federal Open Market Committee] forecasts of two hikes in the year achieving 0.65 percent, the Fed Up campaign remains convinced that the only humane, inclusive, and economically sound approach from the Fed would be to write off increasing interest rates for 2015, and instead to commit to wage targeting,” said Razza. “Resilient as our communities are, families are still hurting in this economy. The Federal Reserve can and should reduce inequalities in our economy.”
Source: The Dallas Weekly
Why Community Schools Are The Key To Our Future
by Kyle Serrette, Director of Education Justice Campaigns, Center for Popular Democracy John H. Reagan High...
by Kyle Serrette, Director of Education Justice Campaigns, Center for Popular Democracy
John H. Reagan High School is located in northeast Austin. In the late 1990s and early 2000s, Reagan’s student body became increasingly poor as middle-class families left the area. In 2003, a student was stabbed to death by her former boyfriend in a school hallway. The incident made headlines and scared away neighborhood families. Students left Reagan in droves. Enrollment dropped from more than 2,000 students to a new low of 600, and the graduation rate hovered just below 50 percent. In 2008, the district threatened to close Reagan. In reaction, a committee of parents, teachers, and students, brought together by Austin Voices for Education and Youth, formulated a plan to turn Reagan into a community school. The district accepted their plan.
Today, five years after adopting the community school strategy, Reagan is graduating 85 percent of its students, enrollment has more than doubled, and a new early college program has made it possible for Reagan’s students to earn two years of college credits from a nearby community college while still attending high school.
Reagan High School, or any community school for that matter, doesn’t immediately look different than any other school — that is, until you spend some time there.
At 3.8 million square miles, the United States is a big place, with almost 50 million primary and secondary students attending more than 98,000 public schools in 14,000 school districts.
Many things unite our vastly different 50 states, but our approach to education is not one of them.
It is fair to say that the United States does not have one approach to education. Rather, it has thousands of pedagogical approaches that fit into roughly the same structure (elementary, middle, high school).
If the universe of poorly funded public schools in the United States were the night sky on a clear night, you would find some really bright stars and a lot of jarring empty space. The problem with a scattershot approach to education in such a vast country is that there’s no effective way to share successful practices.
Thousands of schools in poor neighborhoods fail generation after generation, while other schools with the same demographics and challenges have found ways to succeed and break the cycle of failure. Today, if you are a business, nonprofit, or any type of entity, it is quite hard to figure out if a school wants help or what kind of help it needs. Most schools lack a clear analysis of what they need to help improve outcomes, and if they do have a clear understanding of needs, most lack a point person to manage partnerships.
Unfortunately, there is also no sound system for sharing successful strategies from schools that are getting it right. This is analogous to a heart surgeon developing a revolutionary life-saving approach and only telling people she bumped into about it. Yet that’s basically how our education system works in the United States.
While poor schools have taken many paths to transform themselves into successful schools, one particular path has worked again and again. There are 5.1 million children enrolled in approximately 5,000 community schools in the United States, and those numbers are growing quickly. In New York, mayoral candidate Bill de Blasio promised to create 100 community schools. As mayor, he has fulfilled that campaign promise and recently announced a plan to grow that number to 200 by 2017.
Philadelphia mayoral candidate Jim Kenney announced a plan to open 25 new community schools during his first term. This past December, Ras Baraka, mayor of Newark, announced a plan to scale up community schools with a tentative commitment of $12.5 million from the Foundation for Newark’s Future, the organization created to manage the $100 million that Facebook founder Mark Zuckerberg donated to the city in 2010 to reform the city’s floundering school system.
Community schools are not a new concept. John Rogers, community schools historian at UCLA, tells us they have existed at least since the turn of the 20th century in many forms, but always with the same objective of addressing inequities at both the school and community levels. Jane Addams’s Hull House in the 1890s is an early example: “There were kindergarten classes in the morning, club meetings for older children in the afternoon, and for adults in the evening more clubs or courses in what became virtually a night school. The first facility added to Hull House was an art gallery, the second a public kitchen; then came a coffee house, a gymnasium, a swimming pool, a cooperative boarding club for girls, a book bindery, an art studio, a music school, a drama group, a circulating library, an employment bureau, and a labor museum.”
Long before Reagan became a community school, it housed a daycare for the babies of student mothers so they could continue their education. That daycare still exists today with approximately 20 babies enrolled, but there’s more. When school social workers noticed that student moms at Reagan were missing classes to take their babies to doctor appointments, the social workers applied for and won a grant to have a mobile clinic visit the campus once a week. Now student moms can make appointments for their babies to receive checkups without leaving school. Reagan also allows parents to eat lunch with their babies in the daycare and attend parenting classes. Students in Reagan’s Pregnant and Parenting Teen Program now have a remarkable 100 percent graduation rate.
Discipline problems historically have plagued Reagan. Students were frequently suspended, and chronic attendance issues landed students and families in court, which then imposed fines that families could not afford. Dropout rates were high.
Today, a full-time bilingual social worker works to diagnose chronic attendance problems and connects students and their families with supports, with service referrals rather than fines. A student-led youth court has been developed in partnership with the University of Texas–Austin Law School. The youth court and a restorative justice program together have dramatically reduced discipline issues. Today, Reagan is a top Title I high school in Austin.
While there is a fair amount of variability within schools that have implemented this strategy, thousands of schools have gotten it just right. We wanted to understand what distinguished them from the others.
Here’s what we found those schools shared in their strategic plans: 1) culturally relevant and engaging curricula; 2) an emphasis on high-quality teaching, not high-stakes testing; 3) wraparound supports, such as health care and social and emotional services; 4) positive discipline practices, such as restorative justice; 5) parent and community engagement; and 6) inclusive school leadership committed to making the transformational community school strategy integral to the school’s mandate and functioning.
It all seems intuitive. Schools that form strategic partnerships with businesses, nonprofits, local and federal governments, universities, hospitals, and other organizations to meet core unmet needs are usually successful over time. In most strapped schools, a principal doesn’t have time to find the appropriate partners, let alone conduct an analysis of needs. This leaves schools with a random partner strategy, which is no strategy at all. The community school strategy puts one person in charge of determining the school’s ever-evolving needs. The cost incurred to create this position and the work it supports — around $150,000 — pays for itself and then some.
Nine years ago, when Baltimore’s Wolfe Street Academy elementary school became a community school, 90 percent of its students were living in poverty, 60 percent spoke a language other than English at home, and its mobility rate was high at 46.6 (less than half of its students attended for more than three years). Wolfe Street Academy ranked 77th in the district in academic measures, and only half its children reached reading proficiency by fifth grade. It had no library and only sporadic parent or community engagement.
Today, Wolfe Street ranks second in the city academically, its mobility rate has dropped to 8.8 percent, 95 percent of fifth-grade students are reading proficient, and its average daily attendance rate is 95 percent. It has a library, a book club, and volunteer help from a retired librarian. Forty parents attend a morning meeting every day before school while the students eat breakfast. They share school and community news, both good and bad. This transformation at Wolfe Street has taken place even as more students living in poverty have arrived and as the number of students speaking a language other than English in the home has grown.
During one of Wolfe Street’s annual needs assessments, it determined that its curriculum was not dynamic enough to give the school a chance to achieve its academic goals. In response, Wolfe Street formed a partnership with the Baltimore Curriculum Project, which now provides staff with professional development and supports the school with teacher recruitment and retention.
When the assessment revealed that many of its students had never visited a dentist the school partnered with the University of Maryland Dental School to hold free oral health screenings for all the students. A partnership was formed as well with the University of Maryland’s School of Social Work as a way to respond to what the assessment revealed about the daily impact of trauma on their students’ lives. Now licensed social workers and multiple social work interns are available and offer case management and referrals.
We are in the enviable position of knowing what works. And now, with the recent passage of the federal education legislation Every Student Succeeds Act, funds are explicitly available for the essential elements of community schools, such as community school coordinators, needs assessments, and after-school programming.
A United States where every public school is a community school would be a very different place — it would be a school with the community inside it. Your bank, local architect, grocery store, hospital, and other institutions we associate with being part of the broader community outside our schools would be deeply integrated into them. The tax code could be designed to accelerate and incentivize partnerships with schools. The lines between the inside and outside of schools would blur.
And if you imagine a United States in 2050 where all 98,000 schools have a clear sense of their individual needs and are able to communicate these needs effectively to potential partners, this might be a game changer.
With a new granular understanding of every school’s needs, we could scale partnerships and connect schools with similar needs or pair schools that could benefit from each other’s strengths. We could analyze needs and assess intervention strategies between schools and across districts, cities, states, and the nation.
If you can imagine the world back when it wasn’t connected by the internet and experience again how everything changed when we finally were connected, that is the level shift our schools would experience if every school were a community school. A networked school system would exist, and our atomized system of disparate schools would fade away as a relic of the past.
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I'm a Puerto Rican refugee from Hurricane Maria. Here's why I care about the Pa. midterm
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I'm a Puerto Rican refugee from Hurricane Maria. Here's why I care about the Pa. midterm
"I am a hurricane Maria survivor who now calls the state of Pennsylvania my home...Without support from the federal...
"I am a hurricane Maria survivor who now calls the state of Pennsylvania my home...Without support from the federal government, I am grateful for the assistance of grassroots organizations and nonprofits like CASA and CASA in Action, affiliates of the Center for Popular Democracy...I am now proud to work with CASA in action, canvassing and energizing voters. It is empowering to knock on doors and connect with other Latinos and long time residents who came to Pennsylvania before me. They understand that it is our duty as a community to come together and send a strong message that we are here and that we vote too."
Read the full article here.
Housing Rights Group Says HUD Program Helps Wall Street, Hurts Homeowners
Truthout - October 5, 2014, by Rebecca Burns - After learning that his home was in foreclosure in July 2013, James...
Truthout - October 5, 2014, by Rebecca Burns - After learning that his home was in foreclosure in July 2013, James Cheeseman received an even more unpleasant surprise when he showed up in court the following January. He was told that his mortgage loan had been sold by JP Morgan Chase and purchased by a company he had never heard of before - LVS Financial.
Cheeseman had already applied for a loan modification from Chase and says he was still awaiting a response when the loan sale occurred - a move that he and his attorney argue violates New York State foreclosure laws. Cheeseman says that the new servicer, BSI Financial, then required him to fill out a whole new loan modification application. In mid-September, he learned that he had been denied.
Though he is asking the court for another shot at a modification, this curveball has caused considerable distress for Cheeseman, 47, and his mother Constance, 75, who have resided in the New York home that they co-own for five years.
"I was shocked; I thought that [the resale of bundles of bad loans] was over," he says. "That's what got the country into trouble in the 2008 [mortgage crisis]. But lo and behold, it's still going on."
Legal advocates, however, say that significant abuses by servicers may already have taken place.
In fact, the Cheesemans and their attorney believe that the sale of their loan was part of a recently expanded federal program ostensibly intended to provide relief to homeowners on the brink of foreclosure. Though foreclosure rates have been falling nationwide, 2 million homeowners are still behind on their mortgages and headed for foreclosure and another 10 million are underwater on their mortgages and at risk of the same in the future. About half a million of those seriously delinquent loans are insured by the Federal Housing Administration (FHA), representing a drain on the agency's taxpayer-backed insurance fund.
In 2012, the FHA expanded a program to auction off pools of "nonperforming loans" - those on which homeowners are at least six months delinquent on their mortgage payments - to both for-profit and nonprofit bidders. To date, nearly 100,000 loans have been sold through the Distressed Asset Stabilization Program (DASP), bringing $8.8 billion into the FHA's coffers. The agency asserts that the program can also help reduce foreclosures, as private loan-buyers not hemmed in by the same restrictions as the government agency should be able to pursue a wider range of avenues to keep residents in their homes.
Perhaps the most troubling aspect of DASP is where loans sold through it are ending up. HUD's own data reveals that 98 percent of these loans were purchased by private investors.
But citing stories like Cheeseman's, some housing-rights organizations are telling a different story about DASP. They contest that the program has deepened the pain of homeowners and tenants by handing their fates over to hedge funds and investment groups that often have no interest in pursuing loan modifications or other options that would allow residents to remain in their homes. On September 9, community groups in more than 10 cities nationwide protested at local offices of the US Department of Housing and Urban Development (HUD), which oversees the FHA and DASP. Noting that, by HUD's own numbers, private investors - including private equity firms, hedge funds, specialty servicers and single-family rental companies - have won bids on close to 98 percent of all loans auctioned through DASP, many housing advocates are calling for a halt to the program until it can be overhauled.
Asked about criticisms of DASP, HUD told Truthout that it is exploring several changes to the program. But on September 30, the FHA proceeded with the sale of another pools of loans totaling $2.3 billion in unpaid principal balances.
The Devil's in the Details
HUD did not release data on DASP to the public until August, though housing advocates have for some time been requesting information on the program's outcomes. In its first report on DASP, HUD concluded that the loan-sales program has "met its intention" of mitigating losses to the FHA, thereby minimizing risks to taxpayers. The agency touts sales made through DASP as a way to stabilize its taxpayer-backed insurance fund, which, following losses of more than $50 billion on mortgages it insures, required a federal subsidy of $1.7 billion for the first time in its 80-year history. HUD projects that in the coming years, DASP and other loss-mitigation strategies will add $5 billion to the FHA's insurance fund.
"By selling homes to private equity giants and vulture capitalists, DASP is fueling the rise of the Wall Street landlord."
The report concludes that DASP may be beneficial for homeowners as well, citing the fact that, while about half of the loans sold had not yet been resolved, of those that had, 34 percent of homeowners were able to avoid foreclosure. In a statement provided to Truthout by HUD, FHA Commissioner Carol Galante said:
We consider the Distressed Assets Sales Program to be very successful in accomplishing what we intended it to do. This program not only achieves significant cost savings for FHA's insurance fund, but offers borrowers a final opportunity to avoid foreclosure, which they wouldn't otherwise have. The results speak for themselves. Based on our initial data, an encouraging share of families are now re-performing and others have achieved a graceful exit from an unsustainable mortgage. It's important to note that all these families would be foreclosed upon if not for this program, which, in one way or another, has offered many of these borrowers another path.
But community groups say that this characterization lumps together dramatically different outcomes for homeowners. A September report released by the community groups Right to the City Alliance and Center for Popular Democracy (CPD) notes that of loans that were counted as having avoided foreclosure, many had been sold to a third party or resulted in a short-sale. Though homeowners were able to avoid foreclosure in 34 percent of loans resolved to date, they were able to gain modifications or otherwise begin making payments again in just 10.9 percent of the resolved cases.
"What we want to see is people being able to stay in their homes. And this category of 'foreclosure avoidance' includes a lot of outcomes in which [they] were absolutely not able to stay in their homes," Connie Razza, CPD's director of strategic research and author of the report, titled "Vulture Capital Hits Home: How HUD is Helping Wall Street and Hurting Our Communities," told Truthout.
Homeowners Claim Abuses
That's not the only bone housing activists have to pick with the program. Only loans that are not eligible for standard FHA loss mitigation - those, that, for example, have failed to qualify for loan modifications or other measures - are supposed to be included in the program. But some legal and housing advocates believe that mortgage servicers, for whom a quick insurance payout may be more attractive than a lengthy foreclosure process, could be flouting this requirement.
"When speculators heat up the market for 'distressed mortgages' they make it harder for anyone who acquires them - whether for profit or nonprofit - to make win-win deals that preserve homeownership and stabilize communities."
For example, James Cheeseman says he was beginning a settlement conference with Chase Bank, a step required under New York law to determine whether a modification, short sale or other alternative agreement can be reached before a lender proceeds with foreclosure, when his attorney learned that his loan had been sold in January. Cheeseman says that he was never notified of the sale - instead, he says, his attorney noticed the change during the discovery phase of the settlement conference.
"Our suspicion is that once [Chase] found out that [the foreclosure] was going to be an extended process, they sold their note," says Cheeseman. "The've been hit with fines for shady practices in the past, but they’re still doing it. But HUD is a government agency - it's like we're paying for those shady practices."
James and Constance Cheeseman's house went into foreclosure in 2013 after James was laid off from his job as an auto claims examiner. He says that he and his mother fell victim to a loan-modification scam at the hands of the Templeton Group, against whom the New York District attorney recently filed a suit over such abuses. But the Cheesemans applied for another modification last year, hopeful that the result would be different, given that James had found work again, and they also had additional income through a renter. They believe that the loan's sale has restricted their options: After purchase by an investor, the Cheesemans' loan was no longer insured by the Federal Housing Administration (FHA), disqualifying them from the federal Home Affordable Modification Program (HAMP). BSI Financial, the loan's new servicer, is attempting to continue with the foreclosure.
Nonprofits have been unsuccessful in buying loans through DASP after being outbid by for-profit competitors.
Banks selling loans to the FHA for auction through DASP receive an insurance payout equal to the unpaid principal balance of the loan. Housing-policy advocates fear that this could create an incentive for mortgage servicers to cut through judicial red tape by simply selling loans to the FHA for auction through DASP. Another report, released in September by the progressive think-tank the Center for American Progress (CAP), notes that roughly 76 percent of the loans auctioned through DASP between 2013 and 2014 were sold off by Bank of America, JP Morgan Chase, or Wells Fargo - three banks that have become notorious for loan-servicing abuses.
"Servicers stand to make out very well from this program," says Sarah Edelman, a researcher at CAP and one of the authors of the report.
HUD tells Truthout that, in response to concerns from CAP and other housing advocates, it has recently changed the process through which it verifies that servicers have fully exhausted loss-mitigations options. Previously, servicers were permitted to self-report that they had completed all the mandatory steps, and HUD program officers conducted checks on a sample of the loans submitted for auction. In advance of the auction on September 30, according to HUD, program officers checked all loans and removed a small number for which loss mitigation records were unclear.
Legal advocates, however, say that significant abuses by servicers may already have taken place. In May, the National Fair Housing Alliance, together with several other consumer and legal-aid organizations, wrote a letter to Commissioner Galante to express concern with "significant servicer noncompliance with HUD loss mitigation protocol" and call for stronger protections for homeowners affected by DASP. The letter detailed several cases in which homeowners had already been accepted for FHA-HAMP modifications and were making trial payments when new servicers stepped in and said they were no longer honoring the modifications. In several cases, like the Cheesemans, homeowners say they received no notice that their loans had been sold.
Under current policy, community organizations that have a real interest in preserving affordable housing often get the least help in acquiring distressed properties.
Vicente and Guadalupe Salgado, residents of Chicago's Albany Park neighborhood, believe they may be one more such case. After the couple fell behind on their mortgage in 2011, they fell victim to a mortgage modification scam and entered foreclosure. Since then, they say that they have applied for FHA loan modifications several times and were awaiting a response in July 2014 when they were contacted by a new servicer, who told them that they had been denied. The Salgados say they were told that they could not apply again unless they could pay one-third of the remaining principle balance up front, which amounted to $22,000.
"If I had that much money, I'd just find a new place to live," says Guadalupe Salgado.
The Salgados were among the homeowners who protested at HUD offices nationwide to call for an end to the resale of FHA loans, and they are seeking a meeting with HUD to try and determine whether the loan was, in fact, sold through DASP.
HUD says that in cases where a loan has been sold through DASP erroneously, the agency is able to return the mortgage note to the original lender and reverse the insurance claim. However, the agency says that this has been discovered in post-sale reviews of records, rather than through complaints by borrowers, and has happened in a very small number of cases.
Rise of the Wall Street Landlord
Perhaps the most troubling aspect of DASP is where loans sold through it are ending up. HUD's own data reveals that 98 percent of these loans were purchased by private investors; just three investment and private-equity firms - Lone Star Funds, Bayview Asset Management, and Serene Investment Partners - won nearly half of all loans.
The market for distressed loans isn't the only asset class to emerge from the ashes of the foreclosure crisis. During the past two years, investors have bought up more than 200,000 mostly foreclosed homes. After scooping up properties at bargain-basement prices, groups such as Invitation Homes, a subsidiary of private-equity giant the Blackstone Group, have built a new industry specializing in the rental of single-family homes, and even begun securitizing tenants' rental payments to sell billions of dollars in "rent-backed securities,"a financial product similar to mortgage-backed securities that taps tenants' rent checks as an income stream for investors.
Critics of DASP worry that the program may, for some investors, amount to little more than another means of acquiring cheap rental properties. At least two DASP buyers also operate single-family-home rental firms. The Blackstone Group - which through its subsidiary Invitation Homes is now the largest owner of single-family homes nationwide - owns a controlling stake in Bayview Asset Management, which has won nearly 20,000 loans through DASP.
"By selling homes to private equity giants and vulture capitalists, DASP is fueling the rise of the Wall Street landlord," says Kevin Whelan, national campaign director of the National Home Defenders League, which helped coordinate the September protests against DASP.
There's another troubling trend associated with DASP: The accelerating sale of bad loans has helped give rise to a "distressed-mortgage securities market." At least 11 buyers who have won loans through DASP have securitized some or all of the loans purchased through the program, and analysts estimate that investors will trade roughly $60 billion in distressed mortgage assets by the end of 2014, compared with just $25 billion in 2013, according to the report by the Right to the City Alliance and the Center for Popular Democracy. CPD's Razza also notes that firms that securitize distressed loans may be most likely to continue winning them in the future - according to her report, securities have enabled for-profits to bid 15 - 20 percent higher on loans than their competitors.
This trend is undermining DASP's ostensible goal of helping homeowners and "contributing to a new speculative housing bubble," says Whelan, noting that the price of distressed mortgages has been driven upward by investor demand. "When speculators heat up the market for "distressed mortgages" they make it harder for anyone who acquires them - whether for profit or non-profit - to make win-win deals that preserve homeownership and stabilize communities."
Community Groups Left Out
Indeed, though DASP was initially billed as a means of involving more community organizations with a solid track record in foreclosure prevention, nonprofit organizations have won just 2 percent of loans sold through the program, according to the Center for American Progress’ report.
HUD stresses that because all of the loans sold through the program were headed for foreclosure, DASP is a last shot for homeowners to achieve an alternative outcome. But Whelman says this amounts to a "beggars-can't-be-choosers" rationale that does not necessarily bear out. "HUD's own figures show that the vast majority of families whose loans are sold off to investors lose their homes, whether via foreclosures, short sales, or other mechanisms," he says. "But there are nonprofits that can buy these loans that have a track record of keeping more than half the families in deeply distressed loans in their homes."
Several such nonprofits have been unsuccessful in buying loans through DASP after being outbid by for-profit competitors. New Jersey Community Capital (NJCC), a community-development group, has successfully purchased loans in New Jersey and Florida through DASP's "Neighborhood Stabilization Outcome" (NSO) pools, which are area-specific and require that buyers achieve a set of goals that enhance community stability - including reperformance of a loan wherein a borrower is able to begin making payments again, or a property's rental to a borrower - in at least half of loans purchased.
In an email to Truthout, NJCC said that it had been able to modify 45 percent of the loans in owner-occupied homes, a rate much higher than the industry standard. Nevertheless, the organization has been unable to scale up its purchases through DASP - in June, it was outbid on an NSO pool of loans in New Jersey by a for-profit investor. Even in NSO pools, nonprofits have won just 12 percent of loans, but outcomes are slightly better, with nearly 25 percent of residents able to remain in their homes.
NJCC and other nonprofits are calling on HUD to enable the participation of more mission-driven nonprofits, including by expanding the NSO pools, which currently constitute just 20 percent of DASP sales, or creating nonprofit specific pools. "This could be a very effective program, if FHA can get loans in the hands of buyers who are committed to neighborhood stabilization - that's if," says CAP's Edelman.
In a statement provided by HUD, Galante said: "HUD is also exploring every option to increase nonprofit participation in our program, including allowing more time for these organizations to perform the necessary due diligence and to assemble sufficient capital." The agency also told Truthout that in an upcoming November DASP auction, it will offer more NSO pools, including several that are smaller and more geographically concentrated.
But other housing-rights organizations believe that even farther-reaching measures are needed. The Chicago-based Autonomous Center of Albany Park, which is working with Guadalupe and Vicente Salgado to help fight their foreclosure, also operates Casas del Pueblo, a 501(c)3 community land trust that holds titles to properties and believes that federal policy should require more banks and investors that profited from the mortgage crisis to donate properties to community organizations outright.
Donation to a land bank is one option that buyers of loans in NSO pools may take to fulfill their obligations to the program's requirements, and some banks have chosen to donate properties to nonprofits in small number to receive a tax write-off. But Antonio Gutierrez, housing coordinator at Casas del Pueblo, says that under current policy, community organizations that have a real interest in preserving affordable housing often get the least help in acquiring distressed properties. The land trust, for example, is currently in negotiations with Fannie Mae to purchase the home of a domestic violence survivor who went into foreclosure after her abusive husband left the home and has been fighting to remain in it for four years. Though DASP buyers can obtain properties at an average of between 40 and 60 percent of the remaining principal balance on a mortgage, Fannie Mae has asked Casas del Pueblo to pay the full market value of $250,000 to obtain their member's home, even though she had already made a decade of mortgage payments on her mortgage.
"The DASP program isn't really providing neighborhood stabilization, it's actually contributing to the displacement of existing communities" when investors buy loans with the intent of foreclosing on properties and finding higher-income renters, says Gutierrez. Even the loan modifications provided by commercial banks and investment groups may merely be "prolonging the process of foreclosure," he says. "If we want a permanent solution and true neighborhood stabilization," he says, "we need federal policies that say that principal reductions, buybacks and donations to community land trusts are not optional. They need to be priorities."
In the meantime, the Autonomous Center is part of a national coalition calling on HUD to halt DASP outright until it can be overhauled. The Center for Popular Democracy, the Home Defenders League and other housing organizations say they gathered 11,000 signatures on a petition calling for an end to sales through DASP, and are planning further protests if they don't receive a response. Among those watching HUD's next move are the Salgados, who believe their house could be auctioned later this year.
"I'm waiting and trying to investigate who owns the loan," says Guadalupe Salgado. "But this is my house, because I've fought for it."
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CFPB: Financial firms can no longer force consumers to use arbitration in group disputes
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CFPB: Financial firms can no longer force consumers to use arbitration in group disputes
Consumers can now sue banks in class-action lawsuits. The Consumer Financial Protection Bureau said Monday financial...
Consumers can now sue banks in class-action lawsuits.
The Consumer Financial Protection Bureau said Monday financial companies will no longer be allowed to force customers to use arbitration to settle group disputes, restricting the industry's favored legal tool after years of review.
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Fed Up With Being Shut Out of Federal Reserve, Activists Descend on Summit
Specifically, the coalition is warning against the very real prospect of higher interest rates, saying a rate hike...
Specifically, the coalition is warning against the very real prospect of higher interest rates, saying a rate hike would slow the economy and harm those for whom the so-called "recovery" has been weakest, including poor people, women, and communities of color.Instead, the coalition is calling on the Fed to ditch those plans and give vulnerable communities, including "tens of millions of Black Americans who are still struggling," a say in economic policy.
Fed officials have for months signaled an intent to raise short-term interest rates—which were slashed to zero in 2008 in an effort to spur spending and investment—as soon as this fall or winter. As the Washington Post reported Thursday, reported wage growth "combined with the strong hiring and a rapidly falling unemployment rate, gave the Fed hope that the economy would be able to withstand the first rate hike in nearly a decade by the end of the year."
But recent volatility in stock markets in the U.S. and globally, as well as internal policy disagreements, are leading some economic observers to predict that the Fed may now beless likely to set a rate hike at its September meeting.
Regardless, the Fed Up campaign—anchored at the Center for Popular Democracy and supported by 25 groups including the Economic Policy Institute, Demos, and the AFL-CIO—says raising interest rates would be foolhardy.
And they're in Wyoming to make that view known. According to the Huffington Post, "Fed Up's member organizations brought over 100 primarily low-income grassroots activists from across the country for the gathering. It's a dramatic increase from its inaugural visit to Jackson Hole last year, when the campaign brought a group of 10 activists."
As Sam Ross-Brown wrote at the American Prospect this month, "Fed Up's goal is a more 'pro-worker' Federal Reserve, and their first step is stopping the Fed from hiking interest rates before wages and employment have a chance to catch up with the recovery. Building on a similar action last year, the coalition began circulating a petition this week demanding the Fed keep rates low until wages and employment rise."
"There is no data supporting the Fed's push for higher interest rates," said Ady Barkan, campaign director for Fed Up. "While they toy with halting the recovery, there is a crisis of stagnant wages and a lack of good jobs."
According to Whose Recovery? A National Convening on Inequality, Race, and the Federal Reserve—the Fed Up Coalition's policy agenda for three days of teach-ins and workshops in Jackson Hole—a rate hike would slow down the economy so that there are fewer new jobs and workers have less power to negotiate raises.
"By raising interest rates, the Federal Reserve will make it more expensive for us to pay our credit card, student loan, car, and mortgage payments," the Fed Up campaign says. "That means we will have less money in our pockets to buy the goods and services we need. And that will have a terrible ripple effect throughout the economy: businesses will earn less revenue, so they will lay off workers (or avoid hiring new workers) and they won’t be able or willing to give workers any raises. With bad job prospects and stagnant wages, working families won’t earn enough to buy the goods and services they need, which starts the whole cycle again."
"If this sounds like a terrible idea," the coalition continues, "that's because it is."
The Fed Up perspective is supported by economist Joseph Stiglitz, who spoke alongside the grassroots activists at an event on Thursday. The same day, Stiglitz wrote in an LA Timesop-ed:
It is hard to see why the Fed would choose slower job and wage growth for most Americans just to protect against the theoretical risk of moderately higher inflation. But, then again, it's often hard to understand the Fed's policy choices, which tend to contribute to widening inequality in the United States.
Too often, after the end of one recession, the Fed, fearing inflation, has used monetary policy to dampen the economic expansion. Its maneuvers keep inflation low but unemployment higher than it otherwise would be, negatively affecting all workers, not just those out of a job. Workers in jobs face greater stresses, downward pressure on wages and diminished opportunities for upward career mobility. The costs of higher unemployment are borne disproportionately by people in lower-income jobs, who also tend to be disproportionately people of color and women.
Beyond the particulars of interest rates and inflation, however, the Fed Up Coalition iscalling for the central bank to facilitate more robust public engagement and greater transparency, given its position as "arguably the nation's most powerful economic actor."
"For far too long, our communities have been isolated from the Federal Reserve’s policy choices," the coalition writes in Whose Recovery? "Monetary policy has been left up to the bankers and the economists, with the public largely shut out and confounded by its seeming complexity."
Unsurprisingly, the document continues, "[t]he consequences of this disengagement have been profound. For the past 45 years, with only a few exceptions, the Federal Reserve has set policy that benefits banks and harms borrowers, helps employers and hurts workers, and privileges the voices and needs of corporate elites rather than those of America's working families."
Source: CommonDreams
Part-Time Schedules, Full-Time Headaches
New York Times - July 18, 2014, By Steven Greenhouse - A worker at an apparel store at Woodbury Common, an outlet mall...
New York Times - July 18, 2014, By Steven Greenhouse - A worker at an apparel store at Woodbury Common, an outlet mall north of New York City, said that even though some part-time employees clamored for more hours, the store had hired more part-timers and cut many workers’ hours to 10 a week from 20.
As soon as a nurse in Illinois arrived for her scheduled 3-to-11 p.m. shift one Christmas Day, hospital officials told her to go home because the patient “census” was low. They also ordered her to remain on call for the next four hours — all unpaid.
An employee at a specialty store in California said his 25-hour-a-week job with wildly fluctuating hours wasn’t enough to live on. But when he asked the store to schedule him between 9 a.m. and 2 p.m. so he could find a second job, the store cut him to 12 hours a week.
These are among the experiences related by New York Times readers in more than 440 responses to an article published in Wednesday’s paper about a fledgling movement in which some states and cities are seeking to limit the harshest effects of increasingly unpredictable and on-call work schedules. Many readers voiced dismay with the volatility of Americans’ work schedules and the inability of many part-timers to cobble together enough hours to support their families.
In a comment that was the most highly recommended by others — 307 of them — a reader going by “pedigrees” wrote that workers were often reviled for not working hard enough or not being educated enough. “How can they work more jobs or commit to a degree program if they don’t know what their work schedule will be next week, much less next month?” the reader wrote. “It’s long past time for some certainty for workers. They drive the economy.”
Some readers were shocked by the story of Mary Coleman, who, after an hourlong bus commute, arrived for her scheduled shift at a Popeyes in Milwaukee only to be told to go home without clocking in because the store already had enough employees working. She wasn’t paid for the day.
“What happened to Ms. Coleman should be criminal,” wrote “JenD” of New Jersey in the second-most-recommended comment. “These types of stories sound like they were written by Charles Dickens in the mid-19th century.”
A reader from South Dakota, “JDT,” wrote that he was baffled as to why so many employers created turmoil for their workers by assigning them a different schedule every week, making it hard to juggle their jobs with child care or college.
“As a small-business owner for over 30 years, I have always been able to provide my part-time employees with a firm, steady and predictable schedule,” JDT wrote. “My employees are a vital and important asset. I treat them right, and they do their best for me. It’s so easy ... Why can’t big business run by M.B.A.s and highly compensated executives figure that out?”
JDT, whose name is Jim D. Taylor, runs a combined law and real estate firm in Mitchell, S.D. In a follow-up interview, he said: “In a small business, if you’ve scheduled someone to work, there should always be enough to do — you don’t send them home. I don’t know why big business is any different.”
“Why is it so hard to schedule someone for regular shifts?” Mr. Taylor asked.
A reader calling himself “Polish Ladies Cleaning Service” wrote that in the housecleaning business, it was “a particularly devilish problem” to maintain predictable schedules for employees. “If a client cancels and there’s no work, there’s no work,” he wrote. “We try to let everyone know ASAP, of course, but there are times when clients do cancel literally at the very last minute!”
In a follow-up interview, David Chou, the spokesman for Polish Ladies Cleaning Service, a company based in Brooklyn, told of a woman with a $19,000-a-month apartment who failed to confirm a housecleaning appointment scheduled for that day. So the company had to tell the scheduled housekeeper she was not needed that morning.
“We try to reschedule the ladies with other clients if that’s possible, but probably about half the times that’s not possible,” Mr. Chou said.
“Mary,” a reader from Atlanta, said it was understandable why so many employers relied on part-time workers. “We do still have issues with supply and demand that make it difficult for some businesses to hire full time (e.g., retail brick-and-mortar stores struggling with seasonal slowdowns and competition from Internet stores),” she wrote.
“How is it so many, and Obama, believe that workers have the right to tell their employer what hours they will work?” she added. “I’m thinking many here need to go to Europe or some other country. See how that works for you. Our government has no right to dictate, only to protect workers from abuse, and part-time is not abuse.”
One reader, a sales employee at an Apple store, complained in a letter that her work schedule varied every week, although she praised Apple’s medical, dental and vision benefits, even for part-timers. In a follow-up interview she said she was essentially required to be available anytime from 7 a.m. to 10 p.m. six days a week — she has designated Wednesday as her day off.
“Having to give them that much availability, it means you’re at their mercy,” she said, noting that her husband works Monday through Friday. “You don’t know until the schedule comes out what your life will look like.”
Courtney Moore, a cashier at a Walmart in Cincinnati, said in an interview that she had been assigned about 40 hours a week until she told store management in June that she would begin taking college classes most mornings and some afternoons. She said she asked her manager to put her on the late shift, but to her dismay, the store reduced her to 15 hours a week.
“They said they need someone they could call whenever they need help — and they said I’m not that person,” Ms. Moore said. She said she would prefer being a dedicated full-time employee at Walmart but had to take a second job at McDonald’s instead.
A middle-aged New Yorker who lost his teaching job of two decades because of a budget squeeze in his school district said he had applied for retail jobs and was shocked by what he found.
“You had to be available every minute of every day, knowing you would be scheduled for no more than 29 hours per week and knowing there would be no normalcy to your schedule,” he wrote. “I told the person I would like to be scheduled for the same days every week so I could try to get another job to try to make ends meet. She immediately said, ‘Well, that will end our conversation right here. You have to be available every day for us.’
“I asked, ‘Even though I’m trying to get another job?’ ‘Yes.’ Then she just stared at me and asked me to leave. What kind of company does this? What kind of company will not even let you get another job?”
Source
Florence District One Candidate Questionnaire: Alexis D. Pipkins, Sr.
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Florence District One Candidate Questionnaire: Alexis D. Pipkins, Sr.
The Morning News recently sent out a questionnaire to the candidates running for the Florence School District One Board...
The Morning News recently sent out a questionnaire to the candidates running for the Florence School District One Board of Trustees. Here are the answers from Alexis D. Pipkins, Sr. who is running for another term representing District 4; he faces one challenger.
1. What do you feel you have contributed during your current tenure on the board?
My background as a lifelong resident of the Florence Community, and working closely within the region has given me a clear sense of both the educational and economic issues and needs that we face. Over the past 15 years, as a member of the Florence School District 1 Board of Trustees, I have ensured that I have been knowledgeable of the issues, needs, and concerns of my constituents, and I have represented and I have been a voice even during turbulent of challenges. Further, I understand that leadership must be politically astute to represent the views and concerns of those you represent even though others may not agree, or do not care, and only want to advance their own agenda that is only best for “their community” and not all communities. I have attained the Level 6 on the SCSBA, which is the highest level for a school board member, and presently I serve as the President of the SC Caucus of Black School Board Members which provides dialogue on educational issues and concerns to address the full growth and development of Black and other minority children, and I am also affiliated with the National Local Progress Movement which focuses on progressive thought and insight for local officials
2. What are the issues that you think need to be addressed?
Student achievement, and recognizing the individuality and creativity of each student’s needs
Recognizing that the public schools are becoming more diverse
Equity in funding for all schools
Special Education
Technology infusion and integration for all students
Early Childhood
Career Clusters and Pathways- which is more opportunities for expansion of vocational and career center programs
Funding throughout the district
Special Education and meeting the diverse needs of students, to include the increase diagnosis of Autism
Impact of poverty, mental health, and other risk factors have on today’s learners
Lack of teachers
New and innovative approaches to teacher development and recruitment in order to develop and retain a diverse, qualified, and effective 21st Century pool of educators and staff
3. How have you sought to make changes in those areas?
By asking for items to be placed on the agenda, and engaging staff and others throughout the state and country on best practices and promising practices to ensure that we are utilizing the best program for all of our children. Also, researching the issues and knowing the national agenda. I have always committed myself to being engaged and welcoming to constituents and having a listening ear to see what the children are saying and feeling. As an educator and advocate for children and families, I always empathize and evaluate how I would feel when making decisions and question if policies or procedures that are guiding discussion or the direction of the Board are relevant today. I have demonstrated that my approach to knowing what the educational needs and issues are not based on perception or a one way train rail.
4. What specific program are you most proud of in FSD1 and why?
Small Learning Communities at our schools to decrease class sizes
Implementation of the Parents As Teachers Program to address 0-3, to provide parents with skills and supports to ensure that their children are ready to enter school
Montessori which provides learners the opportunity to be creative
Career and Technology which provides students the opportunity to enter the work place upon graduation
The work that was done by the previous Discipline Code Committees which has ensured the district recognized inequalities and unfair discipline practices and the underutilization and non-utilization of support services for students with complex needs and behaviors. This dialogue that I led was the foundation for the present Code of Conduct which will have to be assessed over the next few years to evaluate its effectiveness and impact on student learning and behavior.
Early College which provides students the opportunity to receive college credit and even an Associate Degree when they graduate from high school
Present dialogue on a Middle School Concept that has been talked about for years
5. How do you handle inquiries and complaints from the community?
I refer families to the Superintendent’s Office or to the appropriate office for support. I also follow-up with families and community that approach me to ensure that their complaints and inquires have been addressed. I also request items be placed on the agenda for discussion and action.
6. What do you think the role of the board is, in the district and in the community?
The board is responsible for establishing the Vision and Mission for the local school district, and ensuring that the Superintendent has the resources to implement the vision by having good policies and procedures, and good stewards of the district’s Operational Funds and Capital or Building Funds. This role must be student centered and family centered by recognizing the diverse needs of students within our community. Not all students learn in the same manner, thus the board must be aware of such and hold the administration accountable for creating programs and services which will help students achieve and be successful. It is the job of the board to be knowledgeable, and current on educational issues and trends, and not just be a “rubber stamping board” but ask questions, communicate with the public- and not just those who share your personal beliefs and positions.
7. What are your past/other areas of service? (church, civic organizations, etc.)
Professional:
I am an advocate, teacher, educator, trainer, and servant-leader. Presently, I am employed as the Executive Director of Lee County First Steps, and the Lee County Adult Education Family Literacy Coordinator.
Educational attainments include:
1990 graduate of the historic Wilson High School
Bachelor of Arts Degree in Political Science and a concentration in Secondary Education Graduate from Winthrop University
Master of Arts Degree in Management from Webster University
Education Specialist Degree Specialization in Leadership in Educational Administration from Capella University
Completion of the Non Profit Leadership Institute from Francis Marion University
Completion of the Francis Marion Rural Leadership Institute
Church:
My faith walk began at my home church, Snow Hill Baptist Church where I was active during my youth, and I was licensed to preach at Maxwell Baptist Church where I was Sunday School Teacher, Sunday School Superintendent, Minister of Christian Education and Membership Services, Boys Scout Troop Master. Presently I am a member and ordained Elder of the Gospel (2010) and serve as an Associate Minister and have served as a Youth Advisor at the Greater Gethsemane Apostolic Church in Florence, South Carolina.
Past and Present Civic:
Gate City Masonic Lodge 276
Florence 1 Local Education Association (SCEA) Treasurer, President
Weed and Seed Steering Committee
Queenie’s Helping Hands Ministry
Angel Tree Prison Ministry
The School Foundation Board
Pee Dee International Festival Planning Committee
PTA (North Vista Elementary, Williams Middle School)
PTSA (Wilson High School)
By Melissa Rollins
Source
Denver Receives $5 Million Challenge Grant To Promote Naturalization In The United States.
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Denver Receives $5 Million Challenge Grant To Promote Naturalization In The United States.
The “America is Home” Initiative will be administered by the National Partnership for New Americans (NPNA). Cities for...
The “America is Home” Initiative will be administered by the National Partnership for New Americans (NPNA). Cities for Citizenship is co-chaired by Mayors Garcetti, Mayor Emanuel, and Mayor de Blasio of New York City. The Center for Popular Democracy is a member of the C4C Executive Committee, and Citi Community Development is the founding Corporate Partner. The C4C “America is Home” Initiative is offered in cooperation with the New Americans Campaign (NAC). NPNA and NAC are two leaders in the U.S. promoting naturalization and are well positioned to bring naturalization to scale and expand to new cities.
Read the full article here.
New Website Holds US Companies Accountable for Backing Trump
"Major corporations stand to profit from Trump's hateful agenda. That's why we call them Backers of Hate," the website...
"Major corporations stand to profit from Trump's hateful agenda. That's why we call them Backers of Hate," the website states.
A new campaign, Corporate Backers of Hate is looking to expose the role some U.S. corporations are playing in profiting from the abuses suffered by the communities of color under the Trump administration.
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