June 26, 2008: State sues Countrywide
California Attorney General Jerry Brown filed a suit Wednesday against Countrywide and its top executives, claiming they engaged in deceptive advertising and unfair business practices to deceive borrowers .
June 12, 2008: Foreclosures Discussed at UC Berkeley
CRC participated in a panel about the effect of the sub-prime financial market collapse and credit crunch on Bay Area cities and housing.
Executive Director Alan Fisher joined Professor Cynthia Kroll of the Fisher Center for Real Estate and East Bay Economic Development Alliance Executive Director Bruce Kern on the panel.
They spoke at the Bay Area Local Elected Officials Leadership Forum on Friday, June 6, at the University of California, Berkeley. The Forum was co-sponsored by the Urban Land Institute San Francisco District Council and the Institute of Urban and Regional Development, UC Berkeley.
June 12, 2008: CRC Presents at Foreclosure Summit
CRC's Kevin Stein and Alan Fisher participated in LA Neighborhood Housing Service's Foreclosure Summit on May 29.
The Summit is a step toward defining practical roles for community organizations and the mortgage industry in helping borrowers stay in their homes.
June 4, 2008: US Bank Makes Additional Commitments to CA
CRC recently negotiated a new set of commitments with U.S. Bank during its proposed acquisition of Mellon 1st Business Bank.
CRC raised concerns about the Bank's overdraft policies; level of philanthropic giving; role as trustee on pools of subprime mortgage backed securities; and support for technical assistance to small businesses.
U.S. Bank has agreed to:
1) provide notice to customers at the ATM machine if they are about to overdraw their accounts, and ask them if they still want to proceed with the transaction;
2) increase charitable contributions as a percentage of deposits (up to .025% of deposits in 5 years) so that the Bank's contributions will increase each year;
3) increase the percentage of its contributions (to 50% of total contributions) set aside for housing and economic development activities;
4) work with CRC to develop best practices for its trustee business that takes into account the needs of investors, but also looks at the needs of homeowners at risk of foreclosure, tenants at risk of eviction, and communities at risk of abandoned and blighted properties;
5) give $350,000 to nonprofit housing counseling agencies over the next 2 years; and
6) give $150,000 to support small business technical assistance providers.
CRC thanks U.S. Bank for these and prior commitments which greatly benefit California communities.
Click here to read the full commitment.
June 4, 2008: Major Victory Against Predatory Payday Lending in Ohio
On Monday, June 2nd Ohio Governor Ted Strickland signed one of the strongest consumer protection laws in the country. After an arduous, multi-year campaign the Ohio Coalition won legislation that caps annual interest rates on payday loans at 28%, limits borrowers to four loans per year, extends loan terms to at least 31 days, and bans Internet payday lending.
CRC extends our sincere congratulations to our allies with the Ohio Coalition for Responsible Lending for their outstanding work to end abusive payday lending practices in their state.
Ohio joins fourteen states and the District of Colombia in prohibiting small loans with triple-digit interest rates. Join us in building a movement to affect similar changes in our state!
May 9, 2008: CRC Testifies at Congressional Hearings
CRC Associate Director Kevin Stein testified in Congress before the United States House of Representatives Subcommittee on Housing and Community Opportunity April 16, 2008.
The Subcommittee was considering H.R. 5679, the Foreclosure Prevention and Sound Mortgage Services Act of 2008, authored by Chairwoman Maxine Waters.
The bill, which CRC strongly supports, would obligate loan servicers to discuss loss mitigation options with borrowers. "The current framework for loss mitigation, which relies on voluntary efforts by the industry, is not working to stop the wave of foreclosures," testifed CRC's Kevin Stein.
The testimony highlighted the findings of CRC's report, "The Growing Chasm Between Words and Deeds,"which found that servicers in California were not working hard enough to keep borrowers in their homes. For a copy of Kevin's oral testimony, click here. For a copy of the Kevin's written testimony, click here.
May 9, 2008: Payday Lending Bills Considered in State Capitol
State Assembly Banking and Finance Committee approved the payday lending Assembly Bill 2845, but not before significantly weakening its provisions April 14-15, 2008.
The original bill, co-authored by Assembly members Dave Jones (D-Sacramento), Mike Feuer (D-Los Angeles), and Speaker-Elect Karen Bass (D-Los Angeles), would have capped the interest rate charged by payday lenders at 36% - on par with a law passed by Congress last year which protects military personnel and dependents.
The version that was voted up in committee failed to include any interest cap. Meanwhile, the State Senate Judiciary Committee voted down Senate Bill 1551, introduced by Senator Lou Correa (D-Orange County).
To view Assembly Bill 2845, click below:
Introduced Bill
Amended Bill
May 9, 2008: “Reframing Affordable Homes” Housing California 2008 Annual Conference
CRC was proud to join hundreds of housing advocates, legal service providers, mortgage counselors, housing developers, and lenders for Housing California’s 29th Annual Conference at the Sacramento Convention Center April 28-30, 2008.
Associate Director Kevin Stein presented in a workshop entitled "Fending Off Foreclosures" with Gabe del Rio of Community HousingWorks in San Diego and Connie der Torrosian of Fair Housing Council of Orange County.
An important highlight of the conference was learning about two important initiatives on the June 2008 Ballot: Proposition 98, “the Hidden Agendas Scheme” and Proposition 99, “the Homeowners Protection Act.”
If passed, Prop 98 would eliminate rent control, affordable housing and other renter protection laws. It would also threaten water quality and supply, hurt the environment and stop regulations that protect our neighborhoods. Prop 99 will prohibit the government from using eminent domain to take a home to transfer to a private developer.
For more information click here.
April 21, 2008: The Real BofA Stakeholders Meeting
The day before shareholders attend the Bank of America (BofA) annual meeting, BofA’s real stakeholders will meet to highlight the harms caused by Countrywide’s mortgages, and Bank of America’s rising bank fees and credit charges.
CRC, Community Reinvestment Association of North Carolina, and the Service Employees International Union organized the event.
Click here to read the news advisory.
April 11, 2008: 91 Groups ask BOA for Moratorium on Countrywide Foreclosures
A letter drafted by the California Reinvestment Coalition and signed by 91 California community groups was sent to Bank of America’s Chief Executive Officer Kenneth Lewis asking him to:
· Initiate an immediate foreclosure moratorium on all mortgage loans in Bank of America’s and Countrywide’s portfolios, including those that are currently being serviced.
· Modify loans for borrowers in danger of losing their homes to a fixed conventional loan with an interest rate of no more than 6% for 30 years.
· Maintain Countrywide’s headquarters in Calabasas, and its loan servicing center in Simi Valley. These Countrywide employees are needed to modify and restructure loans.
Click here to read the letter.
Click here to read the press release.
