Bush/Paulson plan fails to address majority of distressed homeowners

Dr. Rev Barnes of Metanoia Centers and Central Illinois Organizing Project, speaks on behalf of the NTIC network at the Housing and Banking Summit this past weekend in Chicago.

NTIC Teams With Rev. Jackson to Save the American Dream

The NTIC Network teamed with Rev. Jesse Jackson and his Rainbow Push Coalition on Friday to levy a harsh critique of the Bush Plan to deal with the foreclosure crisis.  At the NTIC Housing and Banking Summit in Chicago, Rev. Jackson, Inez Killingsworth, and Rev. Eugene Barnes  criticized the Bush plan as “much too little, much too late,” highlighting the fact that the plan would not help families that are already behind on their mortgage payments.

Bush/Paulson Plan is a Lump of Coal for Working Class Families

For Immediate Release

Bush/Paulson Plan is a Lump of Coal for Working Class Families

Chicago—The National Training and Information Center (NTIC) who released a study on Monday documenting new foreclosures in Chicago during the first half of 2007 says that the Bush Administration’s proposal does nothing to help families facing foreclosure right now. According to reports, the plan covers only subprime adjustable rate loans issued from January 2005 to mid 2007 that will reset to higher rates starting next year through 2010.

In Chicago alone there were 6,339 foreclosures started in the first half of 2007 (a 42% increase over the same period in 2006) according to the NTIC study. “The Bush/Paulson plan is another drop in a really big bucket. Few, if any, of the families facing foreclosure this holiday season will be helped by this plan,” according to George Goehl, NTIC’s Executive Director.

The Bush/Paulson plan is voluntary for the industry. Lenders and servicers get to decide whether or not they work with families to help them save their homes. “Making this plan voluntary is like asking a crook to turn themselves in. With this meltdown of the subprime market, the mortgage industry has proven that it cannot self-regulate,” said Inez Killingsworth, President, Empowering and Strengthening Ohio’s People, Cleveland. “It is time to get serious about helping homeowners and saving the economy from a further meltdown. This just redlines everybody who is in trouble right now.”

NTIC launched the Save the American Dream campaign (http://www.savetheamericandream.org) earlier this year, calling for immediate relief to keep families in their homes by freezing interest rates on subprime ARMs and modifying loans on owner-occupied homes so they are permanently affordable. The campaign also calls on the President and Congress to expand the Community Reinvestment Act so that all mortgage originators are regulated by the same high standards, as well as comprehensive protections for homeowners and criminal penalties on any broker or lender that knowingly engages in abusive lending practices.

Currently, over 250 activists, industry and government officials are meeting in Chicago at NTIC’s National Housing and Banking Summit to hammer out solutions to the foreclosure crisis. On Friday, December 7, Rev. Jesse Jackson will be joining the summit and echoing the need for immediate action for families in foreclosure now.

NTIC Kicks Off National Housing & Banking Summit in Chicago

Today NTIC kicks off its National Housing and Banking Summit-Turning Talk Into Action in Chicago. The Housing and Banking Summit will bring together nearly 300 community leaders, members of the industry, banking regulators, and academics to develop solutions to America’s housing crisis. To learn more about the NTIC Housing and Banking Summit click here.

Chicago Foreclosures Up 40% - NTIC Hammers Home Demand for Interest Rate Freeze and Modifications for Homeowners

Middle class and out of a home in Chicago
Poorer neighborhoods hit hardest, but wealthy, middle class also squeezed

December 4, 2007
BY ART GOLAB Staff Reporter
Chicago Sun-Times

The home mortgage meltdown isn’t just gutting the poorer parts of town.

It’s beginning to hammer wealthy and middle class Chicago neighborhoods like Lincoln Park, Lincoln Square, Irving Park, Portage Park and Mt. Greenwood — all areas where home mortgage foreclosures have shot up by 100 percent or more from 2006 to 2007.

Data released Monday by the National Training and Information Center shows that in Lincoln Park there were 18 homes in foreclosure during the first six months of 2006 — but that number more than doubled to 37 for the first half of this year.

In terms of sheer numbers, poor neighborhoods still are feeling the worst pain. But percentage increase in mortgage defaults is climbing faster in middle class areas, according to the data.

Poverty stricken West Englewood, for example, had 348 foreclosures, or 111 per square mile — yet that was just a 58 percent increase over the previous year.

Federal regulators hope to slow the rate of foreclosures by pushing the banking industry to freeze adjustable rate mortgage “resets,” for those who cannot afford them.

“Freezing the ARMS is a good first step,” said Rose, but he added that lenders should also work with borrowers to permanently change the terms of the loans so they don’t get into trouble again.

Also, government and lenders should to find new, healthier ways to bring mortgage money into poorer neighborhoods rather than just subprime lending.

“And to make sure this doesn’t happen again we’ve got to slap some rules on an industry that has gone virtually unregulated,” said Rose.

To read the entire Sun-Times Story, please click here.

Save the America Dream leaders press Obama and Edwards on Foreclosures

Save the America Dream leaders pressed Senator Edwards and Senator Obama to move aggressively to rein in banks and mortgage lenders that prey on everyday families at the Campaign for Community Values Presidential Forum in Des Moines Iowa Saturday.

Rev. Eugene Barnes addresses a crowd of 3500 at the Heartland Presidential Forum

The forum, which was sponsored by the Center for Community Change and NTIC Affiliate Iowa Citizens for Community Improvement was part of a national campaign to move values of community and interdependence into the mainstream.

Senator Obama said he would work to put pressure on banks and securitization firms to convert high adjustable rate mortgages to fixed-rate mortgages in the wake of the growing problems of foreclosures and the sub-prime loan market.

Senator Edwards said he would sign into a law a national predatory and payday lending law that would crackdown on lenders.

“Understand that part of the reason we got into this is we didn’t have a government that was regulating these bodies in the first place,” Obama said of the sub-prime lenders.

Six leaders from the NTIC Network addressed the crowd of over 3000–Inez Killingsworth (Empowering and Strengthening Ohio’s People), Emira Palacios (Sunflower Community Action), Brenda LaBlanc (Iowa Citizens for Community Improvement), Rev. Eugene Barnes (Central Illinois Organizing Project), Barbara Anderson (Empowering and Strengthening Ohio’s People), and Lynette Nickleberry (Grass Roots Organizing).

Jingle Down Wall Street

As the holiday season approaches, thousands of homeowners from around the country are facing foreclosure. Wall Street has the ability to keep families in their homes this holiday season. Listen here to a special holiday carol sung especially for Wall Street investment firms. Feel free to sing along, we’re sure you know the tune!

National Coalition Challenges Investment Bankers to Have a Heart

Representatives from the National Training and Information Center, Rainbow Push, the NAACP, the South Austin Coalition and Congressman Danny Davis challenged Wall Street Investment Bankers to have a heart this holiday season. Holding a new report, Wall Street and The Making of the Subprime Disaster, community leaders said all you have to do is follow the money to see that Wall Street investment bankers are the one holding the gun when it comes to the country’s foreclosure crisis.

The Chicago press conference took place on city’s westside where community leaders, homeowners, and neighbors challenged Wall Street Investment Banks Merril Lynch, Bear Stearns, Morgan Stanley, Goldman Sachs, and Lehman Brothers to donate the lavish bonuses they have made at the expense of American families back to a fund that would be desisgned to prevent homeowners and ensure that families have a home for the holidays.

Foreclosure’s other victims - those left behind

When every second house sits vacant, home values plummet and neighborhoods deteriorate.

CLEVELAND (CNNMoney.com) — All over Slavic Village, Cleveland, a neighborhood with the one of the highest foreclosure rates in the nation, empty houses have invaded once vibrant streets.

Many of the owners left behind live near abandoned houses that shelter squatters and worse. Crime has soared and owners would leave, if they could, but their homes have plunged in value. Leaving would mean starting from scratch.

To read more click here. 

Homeowners to Banks: We Want To Be Home for the Holidays Too

Investment Banks Challenged to Donate Their Holiday Bonuses to Prevent Foreclosures Across America 

 

On Wednesday November 28^th 2007, the National Training and Information Center, NAACP and   homeowners and community groups from around the country, will ask the biggest U.S. investment banks to take part in the effort to prevent a catastrophic wave of foreclosures across America by donating their holiday bonuses to a foreclosure prevention fund.

A report released today by the National Training and Information Center, the Northwest Bronx Community and Clergy Coalition and People United for Sustainable Housing- Buffalo reveals how the top U.S. investment banks wielded extraordinary power in the subprime mortgage market, pushed it to unsustainable levels and reaped tremendous revenues and bonuses as a result.   While cities around the country are experiencing record-high foreclosure rates, investment banks are looking to reap another round of huge bonuses this year.  In 2006, the top five investment banks in the U.S. gave out a record 36 billion dollars in holiday bonuses. 

 “The trail of money and greed leads straight to Wall Street.  The big investment firms plan to cash in on big holiday bonuses while our neighborhoods are destroyed by foreclosures.  Wall Street must do the right thing and forego their lavish bonuses to help families stay in their homes.  It’s time they clean up their mess.” states Inez Killingsworth, NTIC board member and Cleveland resident. 

As part of the Save the American Dream campaign, groups from around the country are demanding that the major investment banks pledge this year’s bonuses to a national foreclosure prevention fund that will provide immediate relief to homeowners in danger of foreclosure. Details of the foreclosure prevention fund will be finalized by homeowners, grassroots community groups, national community advocates, and participating investment banks at a stakeholder summit convened by the National Training and Information Center.

 “A little money can mean the difference in preventing a foreclosure.  In addition to this fund helping families stay in their homes, preventing foreclosures will ultimately help the bottom line of these investment banks by continuing the cash flow to their investors” states Ms. Killingsworth.  An example of such a rescue fund can be found in Cuyahoga County where as little as $2500 can assist a family in restructuring their loan to meet long term affordability. 

Michelle Haygood, a homeowner in Cuyahoga County working with an affiliate of NTIC, was facing foreclosure and in reaching out to her lender was offered a loan modification that required a $2500 down payment.  These down payments are usually required by servicers and investors in an effort to show a financial commitment to the proposed workout.  Due to her hardship, Ms. Haygood did not have the lump sum of $2500, but she could sustain the new mortgage payments.  Cuyahoga County’s rescue funds were able to assist Ms. Haygood by providing her with the $2500 required by her servicer and she now has a fixed rate loan that she can afford.  

The Save the American Dream campaign is sending letters this week to the top five U.S. investment banks: Goldman Sachs, Merrill Lynch, Morgan Stanley, Lehman Brothers and Bear Stearns.  The Coalition is offering the giant investment banks the opportunity to make a real difference this holiday season by using their bonuses to help keep families in their homes.   

The Save the American Dream campaign (www.savetheamericandream.org) is an aggressive foreclosure prevention campaign of the National Training and Information Center to curb the wide-spread effects of foreclosure on individuals, neighborhoods and the economy.  NTIC is a 35 year-old network of community organizations that is dedicated to community organizing as a means of creating a more just and equitable society. NTIC is made up of 22 affiliate organizations in 10 states and works with 50 additional allied organizations from across the country. -

The report “Wall Street and the Making of the Subprime Disaster” was made possible by the generous support of the North Star Fund.