Gabby, Ryan, and Home Opportunity for All

Even Olympians are, alas, not immune from America’s homeownership crisis. The Associated Press reported this week that the parents of U.S. Olympic swimmer Ryan Lochte are facing foreclosure in Florida, while the mother of gold medal gymnast Gabby Douglas filed for bankruptcy in Virginia last year, she said, “to protect my home.”

I don’t know the circumstances of these families’ financial challenges. But the fact that families who had the discipline, commitment, and drive to raise Olympic gold medalists did not have the systems or information needed to remain successful homeowners reaffirms that the promise of American opportunity is at grave risk.

Roughly four million American families lost their homes to foreclosure between the beginning of 2007 and early 2012. Some 11 million are struggling with “underwater” mortgages, meaning that they owe more than their home is worth. That’s just under a quarter of all U.S. homes with a mortgage. For most, a perfect storm of financial industry misconduct, inadequate consumer protections, falling home prices, and record unemployment are at the core of the problem.

The Lochte and Douglas families are fortunate. Their kids are now stars who will soon be paid millions in endorsement proceeds—Gabby’s already on the cover of a cornflake box.

But for most Americans, the solutions require broader action. An alliance of consumer protection, fair lending, and housing experts have developed a Compact for Home Opportunity, with over two dozen practical, tested solutions for preventing needless foreclosures, restoring neighborhoods, and rebuilding the American dream. The Compact is powered by Home for Good, a national campaign driven by people concerned about the enduring foreclosure and housing crisis.

The Compact’s solutions range from increased access to housing counseling, to reducing loan principal to fair market value, to increased fair housing and lending protections. Some states, notably California, have adopted important elements of the Compact. But a more robust, national approach is needed. Home for Good is pushing housing issues back into the presidential contest, and onto the national agenda, demanding that candidates and policymakers take a stand on the causes and solutions to the crisis. With foreclosures and bankruptcy intruding even into the Olympic games, their call is increasingly hard to ignore.

Read also:

Gabby, Ryan, and Home Opportunity for All

Even Olympians are, alas, not immune from America’s homeownership crisis. The Associated Press reported this week that the parents of U.S. Olympic swimmer Ryan Lochte are facing foreclosure in Florida, while the mother of gold medal gymnast Gabby Douglas filed for bankruptcy in Virginia last year, she said, “to protect my home.”

I don’t know the circumstances of these families’ financial challenges. But the fact that families who had the discipline, commitment, and drive to raise Olympic gold medalists did not have the systems or information needed to remain successful homeowners reaffirms that the promise of American opportunity is at grave risk.

Roughly four million American families lost their homes to foreclosure between the beginning of 2007 and early 2012. Some 11 million are struggling with “underwater” mortgages, meaning that they owe more than their home is worth. That’s just under a quarter of all U.S. homes with a mortgage. For most, a perfect storm of financial industry misconduct, inadequate consumer protections, falling home prices, and record unemployment are at the core of the problem.

The Lochte and Douglas families are fortunate. Their kids are now stars who will soon be paid millions in endorsement proceeds—Gabby’s already on the cover of a cornflake box.

But for most Americans, the solutions require broader action. An alliance of consumer protection, fair lending, and housing experts have developed a Compact for Home Opportunity, with over two dozen practical, tested solutions for preventing needless foreclosures, restoring neighborhoods, and rebuilding the American dream. The Compact is powered by Home for Good, a national campaign driven by people concerned about the enduring foreclosure and housing crisis.

The Compact’s solutions range from increased access to housing counseling, to reducing loan principal to fair market value, to increased fair housing and lending protections. Some states, notably California, have adopted important elements of the Compact. But a more robust, national approach is needed. Home for Good is pushing housing issues back into the presidential contest, and onto the national agenda, demanding that candidates and policymakers take a stand on the causes and solutions to the crisis. With foreclosures and bankruptcy intruding even into the Olympic games, their call is increasingly hard to ignore.

Read also:

Gabby, Ryan, and Home Opportunity for All

Even Olympians are, alas, not immune from America’s homeownership crisis. The Associated Press reported this week that the parents of U.S. Olympic swimmer Ryan Lochte are facing foreclosure in Florida, while the mother of gold medal gymnast Gabby Douglas filed for bankruptcy in Virginia last year, she said, “to protect my home.”

I don’t know the circumstances of these families’ financial challenges. But the fact that families who had the discipline, commitment, and drive to raise Olympic gold medalists did not have the systems or information needed to remain successful homeowners reaffirms that the promise of American opportunity is at grave risk.

Roughly four million American families lost their homes to foreclosure between the beginning of 2007 and early 2012. Some 11 million are struggling with “underwater” mortgages, meaning that they owe more than their home is worth. That’s just under a quarter of all U.S. homes with a mortgage. For most, a perfect storm of financial industry misconduct, inadequate consumer protections, falling home prices, and record unemployment are at the core of the problem.

The Lochte and Douglas families are fortunate. Their kids are now stars who will soon be paid millions in endorsement proceeds—Gabby’s already on the cover of a cornflake box.

But for most Americans, the solutions require broader action. An alliance of consumer protection, fair lending, and housing experts have developed a Compact for Home Opportunity, with over two dozen practical, tested solutions for preventing needless foreclosures, restoring neighborhoods, and rebuilding the American dream. The Compact is powered by Home for Good, a national campaign driven by people concerned about the enduring foreclosure and housing crisis.

The Compact’s solutions range from increased access to housing counseling, to reducing loan principal to fair market value, to increased fair housing and lending protections. Some states, notably California, have adopted important elements of the Compact. But a more robust, national approach is needed. Home for Good is pushing housing issues back into the presidential contest, and onto the national agenda, demanding that candidates and policymakers take a stand on the causes and solutions to the crisis. With foreclosures and bankruptcy intruding even into the Olympic games, their call is increasingly hard to ignore.

Read also:

It’s Time for Home Opportunity

Dramatic developments this month have underscored our nation’s progress, as well as our continuing peril, when it comes to Home Opportunity—the deeply held idea that everyone should have access to an affordable home under fair conditions. These developments, both positive and negative, should inform the national choices ahead, including in the presidential race.

On July 11th, California lawmakers enacted the groundbreaking California Homeowner Bill of Rights, halting unfair bank practices that have forced thousands of Californians into foreclosure. Among other protections, it restricts “dual-track” foreclosures, in which lenders preemptively foreclose on homeowners who are in active negotiations to save their homes. Importantly, the law also empowers consumers to hold lenders accountable in court.

Just a day later, the U.S. Justice Department announced a landmark settlement of lending discrimination charges against Wells Fargo. The settlement provides $125 million in compensation for borrowers who the Justice Department says Wells Fargo or its brokers steered into risky and expensive subprime mortgages, or charged higher fees and rates than white borrowers, solely because of their race. The discrimination “resulted in more than 34,000 African-American and Hispanic borrowers paying an increased rate for loans simply due to the color of their skin,” according to Deputy Attorney General James Cole.

The Wells Fargo agreement builds on an earlier Justice Department settlement—the largest ever—against Countrywide Financial Corporation for racial discrimination that included a widespread pattern of discrimination against qualified African-American and Hispanic borrowers in mortgage lending. And on July 20, the Justice Department asked a judge to compel New York’s Westchester County to provide information on local zoning practices that might be racially discriminatory. This was a long-overdue step, since Westchester has consistently flouted the terms of a historic fair housing settlement it agreed to three years ago after decades of fostering neighborhood segregation.

These are important developments that, together, help to address the harm that years of lender misconduct and lax rules and enforcement have done to millions of American homeowners and our larger economy. They are making a difference, with the number of Americans facing foreclosure activity declining 11 percent in the first half of 2012, compared with the same period last year.

But much more is needed. Over one million homes and properties still saw foreclosure filings in the first half of this year. That’s hundreds of thousands of senior citizens losing their economic security, children and families disrupted, neighborhoods blighted with vacant properties, lifetimes of economic security destroyed.

And the financial institutions that wrecked our economy have continued their misconduct in different forms. This week, for example, JPMorgan Chase agreed to pay $100 million to settle a lawsuit filed by its customers accusing the firm of improperly increasing minimum payments on borrowers whom they knew could not afford to pay more, generating ill gotten income from the resulting late fees. This, after JPMorgan gambled and lost its clients’ money to the tune of at least $5.8 billion.

And after the British bank Barclays settled with U.S. and British regulators for $453 million, admitting to manipulating the London interbank offered rate, or Libor (a benchmark that underpins hundreds of trillions of dollars in contracts), over a dozen additional banks are now being investigated for similarly rigging exchange rates on international markets.

It’s time for Home Opportunity—American homeownership, fair lending, fair housing—to return to the national debate. That has begun, with the rise of Home for Good, a national campaign driven by people and organizations throughout the nation concerned about the enduring foreclosure and housing crisis. That effort is equipped with clear, practical solutions, in the form of a Compact for Home Opportunity developed by housing, lending, and consumer protection experts around the country.

With the presidential contest now in full swing, it’s time for the candidates to take a stand on this crucial economic and moral issue. President Obama has taken important steps, yet he’s avoided some of the most bold and effective remedies that are available to him. Governor Romney has been mostly silent on what his Administration would do to restore Home Opportunity. It’s time we demanded clarity and commitment from each of them.

 

 

It’s Time for Home Opportunity

Dramatic developments this month have underscored our nation’s progress, as well as our continuing peril, when it comes to Home Opportunity—the deeply held idea that everyone should have access to an affordable home under fair conditions. These developments, both positive and negative, should inform the national choices ahead, including in the presidential race.

On July 11th, California lawmakers enacted the groundbreaking California Homeowner Bill of Rights, halting unfair bank practices that have forced thousands of Californians into foreclosure. Among other protections, it restricts “dual-track” foreclosures, in which lenders preemptively foreclose on homeowners who are in active negotiations to save their homes. Importantly, the law also empowers consumers to hold lenders accountable in court.

Just a day later, the U.S. Justice Department announced a landmark settlement of lending discrimination charges against Wells Fargo. The settlement provides $125 million in compensation for borrowers who the Justice Department says Wells Fargo or its brokers steered into risky and expensive subprime mortgages, or charged higher fees and rates than white borrowers, solely because of their race. The discrimination “resulted in more than 34,000 African-American and Hispanic borrowers paying an increased rate for loans simply due to the color of their skin,” according to Deputy Attorney General James Cole.

The Wells Fargo agreement builds on an earlier Justice Department settlement—the largest ever—against Countrywide Financial Corporation for racial discrimination that included a widespread pattern of discrimination against qualified African-American and Hispanic borrowers in mortgage lending. And on July 20, the Justice Department asked a judge to compel New York’s Westchester County to provide information on local zoning practices that might be racially discriminatory. This was a long-overdue step, since Westchester has consistently flouted the terms of a historic fair housing settlement it agreed to three years ago after decades of fostering neighborhood segregation.

These are important developments that, together, help to address the harm that years of lender misconduct and lax rules and enforcement have done to millions of American homeowners and our larger economy. They are making a difference, with the number of Americans facing foreclosure activity declining 11 percent in the first half of 2012, compared with the same period last year.

But much more is needed. Over one million homes and properties still saw foreclosure filings in the first half of this year. That’s hundreds of thousands of senior citizens losing their economic security, children and families disrupted, neighborhoods blighted with vacant properties, lifetimes of economic security destroyed.

And the financial institutions that wrecked our economy have continued their misconduct in different forms. This week, for example, JPMorgan Chase agreed to pay $100 million to settle a lawsuit filed by its customers accusing the firm of improperly increasing minimum payments on borrowers whom they knew could not afford to pay more, generating ill gotten income from the resulting late fees. This, after JPMorgan gambled and lost its clients’ money to the tune of at least $5.8 billion.

And after the British bank Barclays settled with U.S. and British regulators for $453 million, admitting to manipulating the London interbank offered rate, or Libor (a benchmark that underpins hundreds of trillions of dollars in contracts), over a dozen additional banks are now being investigated for similarly rigging exchange rates on international markets.

It’s time for Home Opportunity—American homeownership, fair lending, fair housing—to return to the national debate. That has begun, with the rise of Home for Good, a national campaign driven by people and organizations throughout the nation concerned about the enduring foreclosure and housing crisis. That effort is equipped with clear, practical solutions, in the form of a Compact for Home Opportunity developed by housing, lending, and consumer protection experts around the country.

With the presidential contest now in full swing, it’s time for the candidates to take a stand on this crucial economic and moral issue. President Obama has taken important steps, yet he’s avoided some of the most bold and effective remedies that are available to him. Governor Romney has been mostly silent on what his Administration would do to restore Home Opportunity. It’s time we demanded clarity and commitment from each of them.

 

 

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