Faith Groups Press Geithner On Foreclosures

By Jena Lowe
Religion News Service

WASHINGTON (RNS) A national network of faith-based organizations, homeowners and community organizers met with Treasury Secretary Timothy Geithner on Wednesday (Nov. 3), urging him to tackle problems with fraudulent foreclosures.

Organizers from the group People Improving Communities through Organizing (PICO) and other activists said a program designed to modify mortgages, enacted soon after President Obama took office, is leaving too many cash-strapped families behind.

The Home Affordable Modification Program (HAMP) allows homeowners to modify or refinance mortgages; officials say it could provide relief for as many as 3 million families on the verge of foreclosure.

"Only one half of the families have been given relief," said the Rev. Tommy Pierce, a board member of Illinois People's Action.

Pierce said there are 76,000 families that have been making consistent payments under temporary loan modifications. But after the six-month temporary period ends, many families are forced back into foreclosure. PICO wants permanent loan modifications for these families.

The organizations also want banks that do not comply with the terms of the program to be fined, as well as aggressive enforcement against lenders recently caught up in hundreds of thousands of faulty foreclosures.

"Our goal is to keep families in their homes," said Ken Kelly, a community organizer at PICO. "We think there is authority under HAMP."

Jennifer Murphy, director of lender service relations for the Center of New York City Neighborhoods, said Geithner heard the message, but she was skeptical the meeting would result in many changes.

"They expressed that there is nothing more that they can do to compel the banks," said Murphy. "I would hope they would look harder to see if there is some way. The American people saved the banks. Now it's time for the banks to save the American people."

In a statement, the department said officials will continue to work with PICO and other organizations on the issue.

"We truly appreciate the work that the faith-based community and grass roots counselors and advocates do on a day-to-day basis to help struggling homeowners in need," said Treasury spokesman Mark Paustenbach.

The groups also asked for a moratorium on foreclosures, especially for those who are already eligible or already enrolled in HAMP.

"We advocate for a temporary, very targeted, moratorium in foreclosures to send a clear message to the American public that the Treasury does care about due process," Kelly said. "It would also send a clear message to the market that the administration wants to get to the root of the problem which includes faulty documentation."

PICO officials said they hope to meet again with Geithner within 30 days.

Comments

[whitemale08]

01:36 PM on 11/05/2010

It's your pensions and 401(k)s funds that are demanding the foreclosures.

Your retirement money, through Fannie/Freddie, bank stocks, GE and GM, hold these worthless derivatives in mortgage-backed securities.

So thank yourself for foreclosing on yourself.

but that means SHUT DOWN Goldman Sachs and JP Morgan for underwriting credit-default swaps that blew-up these securities and thus your retirement money.

The American SUCKER, you gotta love 'em.

[jr40one]

01:00 PM on 11/05/2010

Perhaps it would help if they included Jon Stewart, the enlightened one. Geithner really values his opinions. Par for the course, this administration turning to a comedian for advice.

[GoldsteinD]

12:51 PM on 11/05/2010

No recovery is possible. The elections change nothing. We'll go deflationary soon. Debt default is money destruction on a unprecedented level and no amount of money the Fed pumps into the economy can make up for that or cause inflation, as in the past.

[GiantsFan44]

01:16 PM on 11/05/2010

Alot of people are going on their "merry" way thinking the economy is on the rebound. Possibly the greatest lie ever told to the American public.

[hifiguy]

02:10 PM on 11/05/2010

It is, you happen to be in the top two percent, and the superrich are making out like never before. Everyone else is getting royally hosed by those top two percent and they will not stop until they have reinstituted a modernized plantation/feudal system. That has been their goal ever since Theodore Roosevelt declared war on the robber barons of the Gilded Agel.

[DanBeach]

12:29 PM on 11/05/2010

Hey wait a minute don't the "Faith Based' people want smaller less intrusive government...so show them the door

[James Haun]

12:47 PM on 11/05/2010

F&F

[DanBeach]

01:03 PM on 11/05/2010

back at you...

[GiantsFan44]

01:18 PM on 11/05/2010

There are different factions of Faith Based groups. There are plenty on the left. Jim Wallis, Bob Edgar to name two. Just because it says faith based does not mean religious right.

[DanBeach]

04:00 PM on 11/05/2010

Thanks for the clarification...I still think the Religious right is hypocritically coming with their hands out...sorry about the generalization

[pbarr]

12:10 PM on 11/05/2010

Prosecute.

[SPacific]

11:42 AM on 11/05/2010

Well this is odd.......Where were these same "faith-based groups" when we went to war against Iraq which posed no threat to anyone? Over 100,000 lives have been lost and counting....all needlessly.........

[Sean 6399]

11:40 AM on 11/05/2010

If you can't pay the mortgage note you agreed to pay, and you can't refinance your debt because your property is worth less than the debt you already owe, then you need to move. Period.

These homeowners were surely not going to offer the lender extra money when their property was increasing in value, so what's the justification for demanding a forgiveness on principle owed when the property declines in value? I just bought a car, and it lost 20% of it's value the moment I drove it off the car dealer's lot. Nobody would consider adjusting my car payment under the theory that the car has lost value. The only reason this is considered for property owners who are in distress is because they represent a huge special interest that can be pandered to by politicians.

Justice demands that you pay what you agreed to pay. Or, gtfo. Take a loss. Downsize. Relocate. Sell your timeshare. Sell your third car. Tell your kids they're going to have to work and take student loans to pay for college. Declare bankruptcy. But please, stop demanding that everyone else in the world absorb your economic loss so that you can keep living a fantasy.

[hifiguy]

11:59 AM on 11/05/2010

Funny how people like you thing contracts are only binding on little people. When a corporation decides that what it has "agreed to pay" in the form of pension or benefits will cut too far in to management compensation, it's perfectly OK for them to duck out of those obligations or push it off on the government and then hoard all of saved monies to itself, shareholders, and top management..

And Buster, if you believe it's the people with three cars who are losing their homes, you're living in a fantasy world yourself.

Clearly, there are two sets of rules in your world - one for the rich and one for everyone else. Moral bankruptcy screams from every line of your post. Yours, that is, not the victims of predatory lending, unemployment and misfortune for which they are blameless.

[Sean 6399]

12:07 PM on 11/05/2010

I think contracts are binding on anyone who signs them. You have no justification for claiming that I think "it's perfectly OK for them to duck out of those obligations or push it off on the government and then hoard all of saved monies to itself, shareholders, and top management.." I certainly never said any such thing in my post. It appears that you want to argue with an archetype out of your imagination. Well have fun with that.

If you ever choose to actually refute the points I made in my post, then maybe we'll have something to discuss.

[Epiphany2b]

12:21 PM on 11/05/2010

Oh, don't you have a silver spoon in your mouth. Sell the timeshare? Never had one. Sell the third car? the only one broke down, so now it's walking. No college for kids? They won't expect it, 'cause they know it was too expensive. Kids go to work? Last time I heard there was a law against child labor. Seven year olds are supposed to be in school. Okay, declare bankruptcy. Yes indeed. Who then would absorb the economic loss, rather than negotiating a lower monthly mortgage payment so one can afford to stay out of bankruptcy and pay their legitimate bills?

[Sean 6399]

12:58 PM on 11/05/2010

I spent 6 months of last year living in my car in a mall parking lot. Now I live in a rented studio apartment. Is that what you consider a "silver spoon"?

[greihing]

11:37 AM on 11/05/2010

A couple of things home owners can do.

1) Any paperwork sent to banks NEEDS to be copied.

2) You need to send in a cover letter with a list of enclosures at the bottom of the page that spells out the what paperwork is in the package.

3) Send the package by certified mail. Make sure that the certified # is also on the cover letter. Make sure that it is sign receipt. That way you have proof that someone from whatever bank has gotten your paperwork. This way if it is lost, it is the fault of the bank because you have proof of acceptance.

4) From someone who answered a previous posting: Do NOT send a copy of the Note to the bank. They are required to have a copy. If they don't, then they cannot foreclose.

By doing the above, when you go into court you can prove that you did your due diligence. Losing the paperwork leaves the onus on the banks.

[James Haun]

12:51 PM on 11/05/2010

Great advice!

[hobo62]

11:23 AM on 11/05/2010

Timmy only God is Wall Street. Wall Streets only God is Greed. Timmy must really get confused sometimes with so many corporate butts to smooch.

[Veri]

11:22 AM on 11/05/2010

Ah, good. Something liberals and conservatives can agree on. Now, if we can all agree that Democrats and Republicans are beholden to Global Finance and are both bankrupt parties, then we will see change.

As long as we stick to the old left/right paradigm, the Oligarchs will continue to pillage America. The only paradigm that matters is that we are all Americans, in the end.

As for Obama and Boehner, they are back to playing their idiot games. Idiot games that show just how out of touch with reality on Main Street they really are. Both sides will continue to shape America into a banana republic only Oligarchs believe in.

[3 magi]

11:05 AM on 11/05/2010

Timmy should be forced to take a bus tour through some of the neighborhoods that have been decimated by HIS foreclosure mess.

[hifiguy]

12:00 PM on 11/05/2010

He should be abandoned in them after dark, with no cash or credit cards and plenty of advance notice given to the residents. The rest should take care of itself nicely.

[3 magi]

01:01 PM on 11/05/2010

good idea.

[Wizer]

10:53 AM on 11/05/2010

2004: Shouldn't have been a surprise when it all fell apart, was predicted in 2004:
http://www.boston.com/business/articles/2004/10/05/zero_down_mortgage_initiative_by_bush_is_hit/ Zero-down mortgage initiative by Bush is hit/Budget office says plan likely to spur more loan defaults
http://www.freerepublic.com/focus/f-news/2094023/posts
http://blog.vdare.com/archives/2008/09/24/2002-bushs-speech-to-the-white-house-conference-on-increasing-minority-homeownership/
These links are Bush's 2002 speech where he calls for new lending arrangements for more home ownership, zero down pmt for minorities.
To constantly blame the housing collapse on people who bought homes they couldn't afford is just dishonest. The rw media has done an excellent job covering for bush on this program..no one ever talks about it anymore but as predicted in the first link, 2004, it was destined to fall apart.
Maybe a little more compassion for those who lost their job, then their home? Or, like my neighbor, had health problems, could no longer afford her house payments...but now we bleeding over into health care. She is a prime example of being one of the 87% of people who went bankrupt because of no health insurance.

[wrightj]

10:51 AM on 11/05/2010

As if Geithner cared about people, please. He is a schrew for the Wall Street thugs and that is all he is. It is like talking to the devil and asking him to be nice. It ain't going to happen. Good try!

[joefoss]

10:48 AM on 11/05/2010

"Universal compassion is the only guarantee of morality."
=Arthur Schopenhauer (1788-1860)
One of the many things that has bewildered me about the performance of the Obama administration over the past 22 months is how they have stood by as, literally, hundreds of thousand of families have been thrown out of their homes.
=As this article points out, the HAMP program has been a farce. Tim Geithner and his Treasury Department stood by as the banks ran roughshod over homeowners pleading for help.
And, now, we know that many of those foreclosure procedures failed to meet minimal standards of propriety and, even, legality. Yet, the president has not directed his Attorney General to step in and support the state Attorneys General in their heroic efforts to hold the banks accountable.
=Personally, I think Barack Obama is a man of solid character and genuine empathy for the
suffering of others. What I don't understand is why he hasn't put those values into action
as president, and leader, of our country.

[humanbeing-rick]

10:39 AM on 11/05/2010

Thank you, all you faith based groups who tried to speak up for the common people of America, the working class who have suffered so much while the rich get richer.
I am not surprised that Tim Geithner would not listen, his calloused ears are used deflecting the complaints against his corporatist agenda. Why Obama continues to support Geithner is a mystery and a tragedy for our nation.