"We were trained to mislead borrowers," says a mortgage broker in Orange County, California. "There were people who were club promoters or even drug dealers that found out it was more profitable to run a mortgage shop than to do whatever they were doing."
Take a look at our video about the subprime mortgage lending racket.
On Tuesday, Congress will vote on whether or not to level the playing field between the banks that caused the collapse of the housing market and struggling homeowners.has introduced legislation in the House that authorizes judges to require banks to reevaluate overpriced mortgages of bankrupt homeowners.
Conyers' proposal is a simple, modest fix that will help keep hundreds of thousands of families in their homes. This bill is a win for every homeowner in America. By helping stem foreclosures, it will help arrest the decline in home values for everybody, not just those who are struggling to make payments. President Obama supports the bill and has called on Congress to pass it. The banks and the lobbyists that represent them oppose the bill with a passion.
These are the same banks that started this recession in the first place by hawking worthless subprime mortgage loans to naive or unsuspecting borrowers. Joan Adams of Irvine, California lost her home to foreclosure, and is now living out of a motel by the airport. "There's no one out there to help," Joan says. "Billions of dollars to all the banks for bailouts for something they caused, and yet we're the ones that are homeless."
The banks have had their handouts. Now it's time for struggling homeowners to be put first. Tell your Representative to support H.R. 1106.