It is absolutely critical for the well-being of families, communities and the economy that homes are protected. Congress needs to enact measures to protect homeowners and renters, including the following mortgage protections, which our organizations have been advocating:
Wells Fargo must complete a comprehensive review that identifies every single homeowner affected by this problem, and must adequately compensate them for the serious harm they have suffered as a result of losing their homes to wrongful foreclosure or paying for a more expensive modification.
“As dominant actors in the mortgage industry with a statutory duty to facilitate underserved communities’ access to homeownership, we welcome the FHFA, Freddie Mac, and Fannie Mae’s consideration of steps to expand access to the mortgage market.”
“‘Steve Mnuchin said his bank did not robo-sign. Now we have yet another round of evidence that it did,” said Lisa Donner, executive director of Americans for Financial Reform. ‘The public deserves clear answers, and all senators should be demanding them. We do not need, and they should not support, a Treasury Secretary who thinks the rules do not apply to himself or to his partners on Wall Street.’”
“Mnuchin’s failure to answer questions from committee members fully and honestly is one more example of an all too familiar Wall Street pattern: that rules are for little people. That is not an acceptable approach for a Treasury Secretary. Demanding answers before this nomination is rammed through is exactly the right thing to do.”
“In a stroke of brilliant financial maneuvering Lone Star bundled some of the mortgages into bonds and sold them to investors, immediately booking large profits… ‘Lone Star has bought these loans at a discount from the government–-in effect, they got principal reduction. But they are not passing this benefit on to homeowners or communities,’ says Lisa Donner, executive director of Americans for Financial Reform.
Following the release of a report by the Center for Popular Democracy and the ACCE Institute detailing sales of troubled mortgages to faulty players, mayors from across the country are calling for mortgage owners and holders to prioritize the sale of troubled mortgages to good actors who can help homeowners struggling in the aftermath of the crisis.