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.
March 21, 2008: Save the Date!
Come celebrate California reinvestment and honor community heroes with CRC in Oakland on April 17th, 2008. Click here for more information
March 7, 2008: CRC Supports Foreclosure Legislation
Please join CRC in supporting the following bills in the California Legislature:
(Click on the following links for more information about the bills)
SB 926 (Perata)
AB 69 (Lieu)
AB 1830 (Lieu)
AB 2880 (Wolk)
AB 2359 (Jones)
March 7, 2008: CRC Opposes BofA-Countrywide Merger
On March 5, 2008, CRC sent a letter to the Federal Reserve Bank of Richmond opposing Bank of America's proposed acquisition of Countrywide Financial. Click here to read the letter.
February 19, 2008: Consumer Federation of America
CRC Senior Policy Advocate Rhea Serna attended the Consumer Federation of America Consumer Assembly 2008 in Washington D.C. She moderated a session entitled "Predatory Lending Problems and Solutions".
The panel's speakers included Janis Bowdler of the National Council of La Raza, Elizabeth Renuart of the National Consumer Law Center, and Consumer Attorney Thomas Domonoske.
February 19, 2008: CRC Testifies before Senate Banking Committee
On January 16, 2008, the California State Senate Banking, Finance and Insurance Committee held an informational hearing entitled "Analysis of Foreclosure Avoidance Plans." CRC was asked to testify along with housing counseling agencies, advocacy groups, lenders, and loan servicers.
Robert Mooney, FDIC Special Advisor to Chair Sheila Bair, began outlining the FDIC's strong proposal for loan servicers to modify loans for the long term and at on a broad scale.
CRC Associate Director Kevin Stein testified to: 1) CRC's analysis finding that lenders are failing to modify loans and help borrowers remain in their homes; 2) the limitations of the Governor's proposal to promote loan modifications; 3) CRC's California Home Ownership Preservation $5 million fund to build capacity of nonprofit home loan counselors; and 4) the need for state legislation to promote loan modifications, reform the foreclosure process, and prohibit abusive lending practices.
CRC, Center for Responsible Lending, and Greenlining Institute all raised concerns about Countrywide and its proposed acquisition by Bank of America. The voice of homeowners at risk of foreclosure was well represented by Gabe del Rio of Community Housing Works San Diego, Pam Canada, of Neighborworks Sacramento, and Martha Lucey of ByDesign Financial Solutions. CRC hopes that hearing will lead to much needed legislative solutions to the foreclosure crisis.
