The Political Voices of Women

As the nation deals with the ongoing foreclosure crisis, Republicans and conservative thinkers have increasingly blamed the situation on the Community Reinvestment Act (CRA). Not only is this tactic a smokescreen for the real problems that we face, but it is also patently false.

CRA requires banks with branches in disadvantaged communities stop discriminatory practices called redlining. Redlining means that no matter what the credit worthiness of a borrow is, if he or she lives within certain boundaries, banks summarily dismissed their loan applications. While redlining is technically illegal, banks continued to practice it anyway. CRA said that if you want to do business in a community, you need to find ways to responsibly invest in it. One way to do so is to find credit-worthy borrowers and provide them with mortgages. This worked very well for over 30 years.

Although the Act’s critics claim otherwise, CRA does NOT mandate that banks lend to disadvantaged borrowers who are not credit-worthy, nor did it lead to banks lowering their underwriting standards to comply with the law. According to an independent study of 2006 mortgage loan data conducted by the law firm Traiger & Hinckley LLP, CRA actually deterred banks from engaging in the kinds of risky and subprime lending that brought on the foreclosure crisis. Specifically, the findings show that:

1. CRA banks were significantly less likely than other lenders to make a high cost loan;
2. The average APR on high cost loans originated by CRA banks was appreciably lower than the average APR on high cost loans originated by other lenders;
3. CRA banks were more than twice as likely as other lenders to retain originated loans in their portfolios; and
4. Foreclosure rates were lower in metropolitan statistical areas with greater concentrations of bank branches.

Whether one agrees with CRA’s mandate that banks responsibly serve the communities in which they accept deposits or not, the data shows that CRA actually deterred irresponsible lending. Further, the Treasury Department and the FDIC have emphatically stated that CRA is in no way responsible for the situation we are in today.

Instead of blaming CRA, we should extend CRA provisions to the independent mortgage companies and bank affiliates from which at least 75% of subprime loans originated. To continue to mislead the public on the benefits of CRA is not only immoral, but it would lead us into situation in which more – not less – of the irresponsible lending that created our current meltdown takes place.

A Congresswoman, who reminds you of a beloved high school teacher, is giving hope to Ohio residents fighting off homelessness.

Rep. Marcy Kaptur (OH-9) urged residents facing foreclosure to demand the loan note and if necessary exercise squatter’s rights before leaving their homes.

No, Rep. Kaptur is not encouraging her constituents to break the law. In fact the opposite is true. She is encouraging individuals who are attempting to pay their mortgages and who have made every attempt to renegotiate their loans to exercise their legal right to fight eviction.

During an interview on Lou Dobbs Tonight, which aired on Thursday Jan 29th, CNN Correspondent Drew Griffin reported:

“Elected officials are saying Toledo is not in a recession, it is a depression. It is this bleak backdrop that inspired Toledo Congresswoman Marcy Kaptur to take the floor of the House earlier this month to tell her constituents to stay put.

Kaptur says she has had it with government bailouts for Wall Street banks, but nothing for homeowners. She is advocating for a legal revolution, a demand that not one of her constituents leaves their home without an attorney and a fight.”

The following video clip shows Rep. Kaptur explaining how Wall Street and the banks have manipulated the system during a Jan. 7th address on the House floor.

Rep. Marcy Kaptur Addresses Congress on the Bailouta

The following is an excerpt from the Lou Dobbs Tonight broadcast transcript:

” GRIFFIN (voice over): Kaptur is behind a strategy called produced the note. Mortgages have been so divvied up on Wall Street that banks are having a hard time finding that original paperwork, adding a delay to foreclosures.

She is also pushing banks to rework loans, especially those banks getting bailouts and holding mortgages of folks getting tossed out.

KAPTUR: They are vultures. They prey on our property assets. And I guess the reason I’m so adamant on this is because I know property law and its power to protect the individual home owner. And I believe that 99.9 percent of our people have not had good legal representation in this.

GRIFFIN: Without a lawyer, Andrea Guice bought a $147,000 home with nearly $40,000 down.

GUICE: I should have had an attorney. I really should have had the attorney. I did not know.

GRIFFIN: She admits she didn’t read the paperwork, didn’t learn, until it was too late, she had a sub-prime loan. Her payments of $883 a month jumped in a year to more than $1,500. When it did, she stopped paying.

(on camera) So they foreclosed on you?

GUICE: They have foreclosed on me, yes.

GRIFFIN (voice over): The law firm representing the bank in Guice’s foreclosure declined comment to CNN. Another one of the banks Guice believes holds her notes, Wells Fargo, said it wouldn’t comment on individual cases, but tries to work with homeowners.

Backed by her Congresswoman, Guice simply is not budging.

(END VIDEOTAPE)

GRIFFIN: Lou, no one’s saying, “don’t pay your mortgage.” What the Congresswoman is saying if you’re being foreclosed on, don’t just leave. Don’t assume you have to leave your house. And you’re going to have a run, I know.”

In the following video Rep. Kaptur explains how, given the “loan pooling” process, in many instances the institution initiating foreclosure proceedings has now idea where to locate the original loan note.

Marcy Kaptur Explains loan pooling

url: http://www.youtube.com/watch?v=cgckNg2L34M

During the same broadcast, Congresswoman Kaptur further clarifies her position with the show’s host, Lou Dobbs:

DOBBS: — … At what point does telling a person, as you have, to just exercise squatter’s rights — at what point are you bumping up against the issue of breaking the law?

KAPTUR: Well, you know, Lou, the problem is that these families haven’t had proper legal representation. Most of these companies on Wall Street can’t even find the loan, and they have not properly noticed the homeowner under the Truth and Lending Act and the Real Estate Practices Act.

DOBBS: Right.

KAPTUR: If you really look at the fine print, these Wall Street firms can’t find the loan. They’ve divided it up into so many pieces, so there’s a legitimate question in the law as to where that deed, where that loan actually is.

DOBBS: In point of fact, it’s not — to be clear, if there’s no note, there is no debt?

KAPTUR: That’s right.

And if you don’t have proper legal representation — and I mean good legal representation — what happens to the homeowner in places like our region is, they’re law abiding people. They’re afraid and they leave the property.

I say your biggest right is to hold on to your property. The law is on your side.

DOBBS: Marcy Kaptur, I’m sure that millions of Americans and the folks in Ohio appreciate you being on their side

Yes, Rep. Kaptur, I’m sure that millions of Americans are grateful that the people of Ohio elected someone who really cares about them. Thank You

If you are facing foreclosure and need legal advice contact your local Bar Association and investigate your state’s “squatter’s rights” laws. You can also inquire about law firms that specialize in real estate and/or offer pro-bono services.

If you are a senior citizen check with your local AARP branch or similar group which might offer low cost legal services.

And finally, everyone should contact their elected State and Federal representatives and encourage them to pass legislation that will help consumers and not just Wall Street and the banks.

originally posted on Get The Facts & Get Involved

What did top executives at Lehman Brothers know, and when?  Who is to blame?  Who benefited?  Will anyone pay (besides the American people)?

Congress heard Monday, that Lehman Brothers, only days away from becoming the largest bankruptcy in U.S. history, was pleading for a U.S. rescue on one hand while steering millions of dollars to departing executives on the other.

Read more »

The Bailout Bill has just passed.   I will include more links and video to this post as I get it.  Until then, what do you think?

From The Associated Press..

With the economy on the brink and elections looming, Congress approved an unprecedented $700 billion government bailout of the battered financial industry on Friday and sent it to President Bush for his certain signature.

The final vote, 263-171 in the House, capped two weeks of tumult in Congress and on Wall Street, punctuated by daily warnings that the country confronted the gravest economic crisis since the Great Depression if lawmakers failed to act.

I will continue to update this post.

UPDATE:

Let’s talk about the pork…

Speaker Pelosi on the passage of the Bailout Bill…

President Bush responds to congress passing Bailout Bill…

Ron Paul spoke against this Bailout before the House vote…

The Senate has just passed the $700 billion dollar bailout bill.

Sen. Bill Nelson (D-FL) speaks on the Senate floor, in opposition to the $700 billion bailout.

Senate passes $700 Billion “rescue” Bailout Bill…

After one spectacular failure, the $700 billion financial industry bailout found a second life Wednesday, winning lopsided passage in the Senate and gaining ground in the House, where Republicans opposition softened.

Senators loaded the economic rescue bill with tax breaks and other sweeteners before passing it by a wide margin, 74-25, a month before the presidential and congressional elections.

From The Swamp…

In a rare show of bipartisan spirit, both of the presidential candidates also have lent their support to the measure. And both left the campaign trail to lend their votes to passage of the Senate bill.

Read more »

If we are going to spend this money anyway.  Why not give it to the people?  This would not be a trickle down affect, it would be an explosion from the bottom up affect…PROBLEM SOLVED.

Should we give the people’s money to the failed banks, and hope they don’t continue to fail?  Or, give the people’s money to the people, and know they will spend it, buy homes, pay off mortgages and debt?  Give the people the opportunity of really having the American dream.

This is from a comment on a post I did on the Bailout for The Care2 Election Blog.  It makes a lot more sense to me than what is being offered now.  What do you think?

From Care2 member Laura C…

Yes, we resent it and have good reason. Those in power taking high salaries from us are never made to pay. The following email some of you may have received. It is the best idea I’ve heard and should be sent to every congress person and the president.

Now here is the idea of how to save the economy ………

I’m against the $85,000,000,000.00 bailout of AIG.

Instead, I’m in favor of giving $85,000,000,000 to America in a ‘We Deserve It Dividend’.

To make the math simple, let’s assume there are 200,000,000 bonifide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a ‘We Deserve It Dividend’.

Of course, it would NOT be tax free. So let’s assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage, housing crisis solved. Repay college loans, what a great boost to new grads Put away money for college, it’ll be there Save in a bank, create money to loan to entrepreneurs. Buy a new car, create jobs Invest in the market , capital drives growth.

Pay for your parent’s medical insurance, health care improves Enable Deadbeat Dads to come clean, or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it…instead of trickling out puny rebates.

If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t.

Can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion ‘We Deserve It Dividend’ more than I do the geniuses at AIG or in Washington DC.

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
And all those who lost jobs when these companies folded will have a new financial beginning!!!!
Is there a better plan than this?????

And, this is what I think…

I was thinking the same thing. It not only would be better for the people of this country (both struggling and not)…But, it kick starts the economy almost immediately. It seems a total no brainer, AND it’s a guarantee election win for the person who suggests it. This money would trickle UP much faster than anything would ever trickle down (we know trickle down does not work).

There is no way the economy wouldn’t make a quick recovery with a plan like this. It’s a win win for the entire country. WHY DOESN’T ANYONE SEE THAT? Is it because of all the money given to politicians from financial institutions? That’s the only explanation I can think of. I’m so sick that our government is willing to use 800 Billion of our tax dollar for something that (I don’t care what they say) really doesn’t affect or help the average American. Invest in the people of this country.

This is the perfect opportunity for REAL CHANGE!!! Why is Obama not taking advantage of this opportunity to help the entire country? Why is he just following along with a Bush plan for the economy??? Why is he agreeing with McCain??? What kind of change is he really offering? I will vote for him…But, I am VERY disappointed in him.

WHAT DO YOU THINK?  With all this money, why can’t we bail out the people first, and let the people bail out the banks?

Here is a guest post from community member Anita S. Lane.  You can read more from Anita at her blog Unconventional Politics.

[If you would like to be a guest blogger on The Political Voices of Women, just join our community, and start posting.]

Today, in a rare moment of representative democracy, the U.S. House of Representatives listened to voters and failed to pass the $700 billion bailout bill. While it may have been a bombshell to many, the fact is, it was American Democracy at work.

Legislators across the nation were bombarded with emails and calls from constituents saying, “Do not pass this bill.” According to the Rasmussen Consumer Index, fifty percent of Americans oppose the plan, and 63% of Americans worry that the government will do too much.

Today, legislators listened, and they responded. But this is in no way the end. The way I see it, the decision to stall the vote until Thursday is an opportunity to get it right.

Ever been in a crisis? If so, you’ve heard those you trust—whether a clergy member, financial planner or therapist—tell you, “Never make major decisions in the midst of a crisis.” And we’re all familiar with the term, “haste makes waste.”

Three days away (back home closer to their constituents) just may do our congressional leaders some good. It will allow each of them a chance to step away, clear their head.

The bottom line is, everyone in Congress is admitting that the current bailout bill is a “bad” bill they don’t want to pass but feel they must. But, what’s so wrong with having the courage to say, “This bill is bad, but I believe we can do better…and we must.”

This congress has an opportunity to not settle for the lesser of two evil bills (Paulson’s and now the enhanced version). Congress has an unprecedented opportunity to say, “We are committed to the American people. We are elected to be the best possible stewards of taxpayer dollars. We will not sell the taxpayer short. We can do better and we will.”

Come back on Thursday— huddle, compromise, study, research, write and rewrite, ask tough questions, demand answers, and compromise some more— and then come back with a plan that you can vote for with dignity. Popular legislative sentiment is that to “do nothing” is unacceptable. No. To do “just anything” lacking any real confidence in its merits or assurances of its success, is unacceptable.

Congress, please, for the sake of the American people, go back to the drawing board.

This is an interesting question. Are you better off than you were eight years ago? Do you know anyone who is? Just wondering. Let me know in comments.

So, the bailout was rejected, and the DOW tumbled 777 points.  Is it the end of the world as we know it? Let’s take a closer look at the bailout. What are the pros and cons? How did we get here? Who is to blame? And, most importantly…What do you think?

My personal (non financial expert) opinion:  If you don’t have much money, you probably haven’t lost much.  If you have a bunch of money, you might have lost a bunch.   Of course, as always, the middle class will be hurt the most from this crisis.  They are already struggling, and bailout or no bailout, the middle class stands to pay the greatest price.  But, that’s just my opinion, and I’m no financial expert.

Understanding the bailout…

How does this affect the presidential election?

Read more »

From Market Watch…

The U.S. House rejected on Monday a proposed $700 billion financial bailout package supported by the Bush administration, the Federal Reserve and the congressional leadership of both parties. The vote was 205 for and 228 against. The rejection of the plan could mean disruption in financial markets and another attempt by officials to craft a compromise plan that will get a majority vote. The administration had been pushing for quick movement on the bailout, which officials have warned is necessary to avert serious consequences for markets and the economy. Some critics said the plan was a giveaway to the very companies that created the crisis, while others said it amounted to socialism.

UPDATES…

From The New York Times…

In a moment of historic drama in the Capitol and on Wall Street, the House of Representatives voted on Monday to reject a $700 billion rescue of the financial industry.

From The Moderate Voice…

In a major upset, the US House of Representatives has voted against passage of the $700 billion bailout bill. The vote was 228-205 against. Democrats voted 141-94 in favor of the measure while Republicans voted 131-67 in opposition to the proposal. There are now discussions as to whether or not a new vote sometime later today.

Reacting to the news, the Dow Jones is down by a range of 400-600 points. At one point the drop was over 700 points so it does seem that the market is stabilizing somewhat.

Henry Paulson is disappointed about rejected bailout…

Rachel Maddow…

From The Associated Press…

A White House spokesman says President Bush is very disappointed in Monday’s House vote rejecting the administration’s rescue plan for the nation’s financial industry.

“There’s no question that the country is facing a difficult crisis that needs to be addressed,” said spokesman Tony Fratto. He said the president will be meeting with members of his team later in the day “to determine next steps.”

Bush is “very disappointed” with the vote, Fratto said.

Erin Kotecki Vest from BlogHer – Bailout Measure FAILS House Vote

Here is Nancy Pelosi on a failed free market…