CONYERS Floor Statement In Opposition To H.R. 732, the "Stop Settlement Slush Funds Act of 2017"

Dean of the U.S. House
of Representatives
John Conyers, Jr.

H.R. 732, the “Stop Settlement Slush Funds Act of 2017,” would prohibit the federal government from entering into or enforcing any settlement agreement requiring donations to remediate harms that are not “directly and proximately” caused by a wrongdoer’s unlawful conduct.

I oppose H.R. 732 for several reasons.  

To begin with, the bill would prohibit these types of settlement agreements even though they have been successfully used to remedy various harms, particularly those caused by reckless corporate actors. 

For example, these settlement agreements helped facilitate an effective and comprehensive response to the predatory and fraudulent mortgage lending activities of financial institutions that nearly caused the economic collapse of our Nation and that led to the Great Recession. 

In fact, settlement agreements with two of these culpable financial institutions—Bank of America and Citigroup—required a donation of less than 1% of the overall settlement amount to fund foreclosure prevention and remediation programs to help harmed consumers.

Contrary to the Majority’s claim, the Justice Department did not use any of these settlement agreements to fund “activist groups.”

Notwithstanding the production of hundreds of pages of documents by the Justice Department, along with hundreds of pages of documents produced by private parties, we have not seen a shred of evidence that the government included unlawful or politically motivated terms in its settlement agreements with Bank of America or Citigroup.

The Majority also asserts that these settlement agreements are used by the Justice Department and other agencies to circumvent the congressional appropriations process. 

But, existing law already prevents agencies from augmenting their own funds. By law, donations included in settlement agreements must have a clear nexus to the prosecutorial objectives of the enforcement agency.

And, both the Government Accountability Office and the Congressional Research Service have concluded that settlement agreements providing for secondary remediation do not violate Congress’ constitutional power of the purse.

Finally, H.R. 732 would prevent the remediation of systemic harms in civil and criminal enforcement actions.

These settlement agreements allow parties to resolve their civil or criminal liability by voluntarily remediating the harms caused by their unlawful conduct. 

For some types of unlawful conduct—such as discrimination based on race or religion—secondary remediation of harms may be the only remedy available for systemic violations of the law.

The victims of such conduct are typically not themselves parties to the underlying action.

Therefore, secondary remediation in the form of voluntary compliance and training programs serves as an important tool in these cases to protect victims of discrimination. Yet, H.R. 732 would effectively prohibit such relief.

Given these serious problems and others presented by the bill, I strongly oppose H.R. 732, and I reserve the balance of my time.

H.R. 732, the “Stop Settlement Slush Funds Act of 2017” by Beverly Tran on Scribd

Voting is beautiful, be beautiful ~ vote.©

CONYERS Sensenbrenner, Goodlatte, Jackson Lee, Walberg, Roskam Unveil Bill to Protect Americans’ Property Rights

Civil asset forfeiture reform is part of the House Judiciary Committee’s criminal justice reform initiative

Washington, D.C. – As part of the House Judiciary Committee’s bipartisan criminal justice reform initiative, Crime, Terrorism, Homeland Security, and Investigations Subcommittee Chairman Jim Sensenbrenner (R-Wis.), House Judiciary Committee Chairman Bob Goodlatte (R-Va.), Ranking Member John Conyers (D-Mich.), Crime Terrorism, Homeland Security, and Investigations Subcommittee Ranking Member Sheila Jackson Lee (D-Texas), Representative Tim Walberg (R-Mich.), and Representative Peter Roskam (R-Ill.) today introduced bipartisan legislation to protect Americans’ property rights through civil asset forfeiture reform. 

In order to strengthen protections for Americans’ property, H.R. 5283, the Deterring Undue Enforcement by Protecting Rights of Citizens from Excessive Searches and Seizures Act of 2016 (Due Process Act),provides much needed reforms to federal civil asset forfeiture programs, increases accountability and oversight of seizures and forfeitures, and strengthens protections for Americans whose property has been seized by law enforcement agencies.

Ranking Member Conyers, Crime Subcommittee Chairman Sensenbrenner, Chairman Goodlatte, and Crime Subcommittee Ranking Member Jackson Lee praised the introduction of the Due Process Act in the statements below.

Dean of the U.S. House
of Representatives
John Conyers, Jr.

Ranking Member Conyers: “It has increasingly become apparent that the procedures in federal law governing civil forfeiture are inadequate and unfair, and therefore I am proud to cosponsor the Due Process Act.  We must change federal law so that the burden is on the government to prove that a property owner is not innocent, to raise the burden of proof, to afford initial hearings to property owners to determine whether a seizure is legal or would pose an undue hardship, and to make other improvements consistent with due process. There will be more to consider in the future, but this bill is a significant step toward rebalancing the scales with regard to a process that is too-often abused.” 

Crime Subcommittee Chairman Sensenbrenner: “Forfeiture is a critical tool in the fight against crime, but it is also vulnerable to abuse. The Due Process Act, among other things, will increase transparency and add protections for innocent property owners, including the opportunity to contest seizures and regain illegally seized property immediately. Reform to the current federal forfeiture laws is necessary to curb abuse, restore confidence in law enforcement, and help citizens protect their property rights.”

Chairman Goodlatte: “In recent years, there have been several incidents in which innocent Americans have had their property or money improperly seized by law enforcement. While asset forfeiture is a useful law enforcement tool, abuses of it clearly show that reform is needed now to better protect Americans from having their property wrongfully seized.

“The Due Process Act rightfully reforms civil asset forfeiture to prevent incentives to wrongly seize Americans’ property. The bipartisan bill also strengthens protections for Americans who have had their property confiscated by law enforcement and increases the accountability and transparency of this law enforcement tool. I look forward to taking this bill up in Committee soon and thank the many members, including Representatives Sensenbrenner and Walberg, who have worked on and championed this important issue.” 

Crime Subcommittee Ranking Member Jackson Lee: “I am pleased to join with the Crime Subcommittee Chairman, Jim Sensenbrenner, the Chairman of the Judiciary Committee, Bob Goodlatte, and our Committee’s Ranking Member, John Conyers, Jr., in introducing bipartisan legislation to reform our federal civil forfeiture laws.  We must make important changes to the procedures and standards that determine when the government may take property from those not charged with a crime.  For instance, it is critical that we give greater opportunity to innocent property owners to successfully challenge unwarranted forfeiture and the burden should not be on them to prove their innocence.”

Key Components of the Due Process Act:

Reforms federal civil asset forfeiture programs

·         Enhances procedural protections of forfeiture proceedings in both civil and administrative settings and prevents government overreach

·         Increases the government’s burden of proof in civil asset forfeiture cases to help protect innocent victims

Strengthens protections for claimants

·         Creates a right to counsel for Americans in all civil asset forfeiture proceedings

·         Provides that a claimant may recover attorney’s fees in victorious cases against a government forfeiture

·         Speeds up the process for the government to notify the property owner of a seizure

·         Expands protections to innocent owners by requiring the government to prove the connection between the property and the offense and that the property was used intentionally in order to seize it

Increases accountability and oversight of seizures and forfeitures

·         Requires the Inspector General to conduct a yearly audit on a representative sample of federal civil forfeitures to ensure they are being conducted within the letter and spirit of the law

·         Requires the creation of two federal databases on forfeitures in order to make information more readily available to the public, including a catalog of federal forfeitures to assist those whose property has been seized and to provide broad details on the types of forfeiture, agencies involved, and the conduct that lead to forfeited property

Original cosponsors of the bill are Representatives Steve Chabot (R-Ohio), Doug Collins (R-Ga.), Darrell Issa (R-Calif.), J. Randy Forbes (R-Va.), Trent Franks (R-Ariz.), Steve Cohen (D-Tenn.), Hank Johnson (D-Ga.), Jim Jordan (R-Ohio), Raul Labrador (R-Idaho), David Trott (R-Mich.), Mimi Walters (R-Calif.), and Cedric Richmond (D-La.).

U.S. House Due Process Act of 2016 by Beverly Tran

Voting is beautiful, be beautiful ~ vote.©

REP. CONYERS CALLS FOR MORATORIUM ON PROPERTY TAX FORECLOSURES IN WAYNE COUNTY

DETROIT— Today, Congressman John Conyers, Jr. (MI-13) released the following statement urging a moratorium on property tax foreclosures and improved access to services for Detroiters facing today’s deadline:

“Today is the final day for anyone facing property tax foreclosure to get assistance.  I urge any Detroiter who thinks they might be facing foreclosure by Wayne County to visit the Wayne County Treasurer’s office at 400 Monroe Street in Detroit, call 313-224-5990 or email at taxinfo@waynecounty.com.  For more complex issues with property tax foreclosures, call the United Community Housing Coalition at 313-963-3310, or their emergency number at 313-405-7726.  Today may be your last chance.”

Dean of teh U.S. House
of Representatives
John Conyers, Jr.

“I remain gravely concerned over the fate of the tens of thousands of Wayne County residents that could lose their homes to property tax foreclosure.  While I greatly appreciate the hard work done by the Wayne County Treasurer’s office to keep people in their homes, including providing an extension, additional time is needed to protect our residents from being kicked out of their homes.  Detroiters already suffered through a foreclosure crisis caused by the discriminatory lending policies and incompetence of our nation’s biggest lending institutions.  We cannot tolerate another round of foreclosures and evictions – much less one carried out by our local government that has a duty to serve our citizens.”

“Despite the economic hardship faced by many Detroit families, too many Detroit homeowners are being obligated to pay taxes when they are eligible for a statutorily-mandated poverty exemption.  Furthermore, the City of Detroit has not carried out its duty under Michigan’s Constitution (Art.  IX, § 3.)  to assess the actual value of properties on an annual basis.  The failure of local authorities to fulfill these two legal requirements means that many homeowners owe inaccurate and unreasonable amounts in property taxes—in some cases, the owed taxes exceed the actual value of the home.”

“Finally, foreclosing on occupied homes actually hinders the goal of raising revenue.  Selling these homes at auction only gathers a tiny fraction of the revenues owed in taxes, while the eviction of families from their homes increases blight, depresses surrounding property values, and destabilizes neighborhoods.  For these reasons, I strongly urge Wayne County Treasurer Raymond Wojtowicz to immediately implement a moratorium on property tax foreclosures until there is an appropriate remedy for these families and our community.”

# # #

As of last month, 31,000 properties were facing property tax foreclosure in Wayne County, and about 9,000 of those properties are occupied, according to Wayne County Chief Deputy Treasurer David Szymanski.  Detroit’s Loveland Technologies estimated that, of the 58,000 blighted properties in Detroit, 50,000 of them were impacted by tax foreclosure.  An investigation by The Detroit News into area home sales and property value assessments found homes that were sold for under $100 were valued by local authorities at nearly $46,000.

On May 27, Congressman Conyers hosted a tele-town hall on the property tax foreclosure crisis featuring representatives of the County Treasurer’s office and other legal assistance organizations, in which over 8,600 Wayne County residents participated.

Those facing property tax foreclosure are urged to immediately seek help by visiting the County Treasurer’s Office at 400 Monroe Street in Detroit, calling 313-224-5990 or emailing taxinfo@waynecounty.com.  For more complex issues with property tax foreclosures, residents can call the United Community Housing Coalition at 313-963-3310, or their emergency number at 313-405-7726.

  Voting is beautiful, be beautiful ~ vote.©

After Failing to Renew Unemployment Insurance, Congress Is a Culprit in Foreclosure Crisis

By Reps. John Conyers Jr., Matt Cartwright and Steven Horsford

In the immediate aftermath of the nation’s 2008 foreclosure crisis, Congress played a constructive role in keeping Americans in their homes. Lawmakers supported loan modification programs and sweeping financial reforms, and — while many rightfully demanded more action — these efforts eased the effects of the crisis.

Today, the lingering effects of predatory lending and the Great Recession mean that foreclosures remain a serious problem in communities around the country. But, in the national fight to stop foreclosures, one crucial fact has changed: Congress is now a culprit.

By failing to extend emergency unemployment insurance benefits, House GOP leaders have unnecessarily thrust millions of Americans into financial hardship and many, in turn, into foreclosure.

Congress must again be part of the solution.

Lawmakers should immediately extend emergency UI benefits. But, if House GOP leaders continue their obstruction, the absolute least lawmakers can do is pass a measure to direct the Federal Housing Finance Agency to impose a six month moratorium on foreclosures for individuals who have lost UI due to congressional inaction.

Because of the GOP’s termination of the federal emergency UI program, more than 2.2 million Americans, including more than 200,000 veterans, have lost access to an essential lifeline that’s rightfully theirs. Unemployment insurance is not a hand-out. Americans who lost their jobs in one of the toughest job markets in memory have largely paid into the emergency compensation program through payroll taxes.

There’s simply no valid economic argument for failing to renew UI. The Census Bureau estimates that these benefits enabled 2.5 million people to get out of poverty in 2012 and enabled more than 11 million to do so since 2008. According to the nonpartisan Congressional Budget Office, restoring benefits would result in 200,000 additional jobs this year by increasing consumer demand. The logic is simple: When unemployed Americans receive income, they spend it. When they can go out and purchase their necessities, they boost the economy and promote job-creation. All this boosts tax revenue and reduces deficits.

When you factor in the foreclosures that result from people unexpectedly losing their basic UI income, the social and economic impacts are immeasurably greater. Foreclosure and evictions are not only responsible for massive anxiety and suffering but also downward spirals in property values and tax revenue.

Restoring UI is not just a matter of sound policy making. It’s a matter of basic decency.

While the Senate has done what’s right by passing legislation to extend UI, House GOP leaders refuse to even allow a vote. If this intransigence continues, the newly-confirmed director of the FHFA, Melvin Watt, can take matters into his own hands and impose a moratorium on foreclosures for Americans affected by the cutoff. Earlier this year, we, along with 74 of our colleagues, sent a letter requesting that he use his authority to do so.

Half a decade after the onset of the financial crisis, it’s unacceptable that tens of millions of Americans are still unemployed or desperately underemployed. Congress must — at the absolute least — keep these Americans from losing their homes.

Reps. John Conyers Jr. of Michigan, Matt Cartwright of Pennsylvania and Steven Horsfordof Nevada are Democratic members of the House of Representatives.

Voting is beautiful, be beautiful ~ vote.©

House Passes Conyers Amendment to Fully Fund Center to Combat Homelessness

(WASHINGTON) – Late yesterday evening, the U.S. House of Representatives considered H.R. 4745, the “Transportation, Housing, and Urban Development Appropriations Act of 2015.” During consideration of the legislation, Congressman John Conyers, Jr. (D-Mich.) offered an amendment to fully fund the Homeless Data Analysis Project (HDAP). The HDAP is the federal government’s leading center for data collection and dissemination of best practices for combating homelessness. This program has been located within the U.S. Department of Housing and Urban Development (HUD) since 2001. Despite initial reservations by conservative Members, the U.S. House of Representatives approved the amendment unanimously. After the amendment was adopted, Representative Conyers issued the following statement:

U.S. Representative
John Conyers, Jr.

“In the aftermath of the nationwide housing crisis of 2008, millions of Americans lost their homes through no fault of their own. In the worst cases - yet regrettably all too often - these struggling individuals wound up in shelters or found themselves living on the streets. It is unthinkable that more than a million people struggle with the scourge of homelessness in the world’s most prosperous nation. In an effort to help repair this shameful state, I offered an amendment - unanimously approved by the House of Representatives - that fully funds the Homeless Data Analysis Project (HDAP). This vote was a win for America’s most vulnerable people, and an acknowledgment by Congress that homelessness is not only corrosive to individual lives but also to our national character,” said Conyers.

“In 2001, Congress directed the Department of Housing and Urban Development (HUD) to ‘take the lead on data collection’ on homelessness, the result of which was the HDAP. This program provides critical resources to communities to improve data collection, reporting, and integration of data collection efforts with other federal funding streams. Over the past decade, this project has allowed HUD and other agencies to move away from using largely anecdotal and often inconsistent evidence to using quality data for policy decisions. Better data means better outcomes for the most vulnerable Americans.

“With more than 19,000 individuals - including nearly 4,000 children - homeless in the Detroit area at some point over the course of a year, we have a moral obligation to act. By fully funding homeless assistance grants, and data coordination programs to wisely administer such funding, we can help make the dream of ending homelessness a reality.”

Voting is beautiful, be beautiful ~ vote.©

Michigan Radio: Rep. Conyers requests moratorium on foreclosures in Detroit

m Voting is beautiful, be beautiful ~ vote.©

Conyers Proposes New Federal Foreclosure Assistance for Detroit

In Letter to Federal Housing Director Mel Watt, Rep. Conyers Applauds Newly-Announced Neighborhood Stabilization Initiative, Proposes 6-Month Foreclosure Moratorium on Federally Guaranteed Mortgages

U.S. Representative
John Conyers, Jr.

(DETROIT) – Today, Congressman John Conyers, Jr. (D-Mich.) sent a letter to Federal Housing Finance Agency (FHFA) Director Mel Watt requesting immediate action to assist distressed homeowners in Detroit as the City works its way through Chapter 9 bankruptcy proceedings. Specifically, the letter calls for the FHFA – which regulates the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), Government Sponsored Enterprises (GSEs) which provide housing financing options to millions of Americans – to, “impose a 6-month moratorium on foreclosures of GSE-guaranteed mortgages for struggling borrowers who were current on their payments before the start of Chapter 9 proceedings in 2013.” In addition, Rep. Conyers called on the GSE’s to provide local borrowers with alternatives to foreclosures, such as efforts to make mortgages more affordable, to avert future evictions and foreclosures.

Rep Conyers Letter to Director Watt Proposing New Federal Foreclosure Assistance for Detroit May 13, 2014 by Beverly Tran

Voting is beautiful, be beautiful ~ vote.©

Conyers Encourages HUD Secretary Donovan to Expand Funding Streams for Housing Development & Stemming the Tide of Foreclosures

(DETROIT) – Tomorrow, Representative John Conyers, Jr. (D-Mich.) will meet with Housing and Urban Development Secretary Shaun Donovan and other Members of Michigan’s congressional delegation to discuss federal efforts to strengthen Southeast Michigan’s housing market and assist Detroit as it faces chapter 9 municipal bankruptcy. Prior to the meeting, Rep. Conyers issued the following statement:

U.S. Representative
John Conyers, Jr.

“I look forward to engaging Secretary Donovan about ways the federal government can work hand-in-hand with local housing agencies and housing advocates here on the ground in Southeast Michigan to stem the tide of foreclosures, expand access to affordable housing, and eliminate blighted properties that harm our community,” said Conyers.

“I am pleased that HUD recently announced an $8.5 million grant to the Detroit Housing Commission that will facilitate large-scale improvement projects in our city.  In conjunction with the recent release of federal funds for targeted blight remediation throughout the state, it is clear that there are significant new federal resources that can be leveraged to improve the safety of our community.  

“As we come together to discuss ways to buoy Detroit, I also support considering NAACP-Detroit President Reverend Wendell Anthony’s idea to make more federal funding programs available to Detroit to help it meet its financial challenges. All options are on the table as we work to strengthen Detroit, and I look forwarding to collaborating with Secretary Donovan to discuss a meaningful path forward.”

Voting is beautiful, be beautiful ~ vote.©

Conyers: Mortgage Settlement Agreement is First Step Toward Recovering Losses for Victims of Reckless and Abusive Mortgage Practices; But Much More Needs To Be Done

**Follow Me On Twitter @HouseJudDems**

For Immediate Release

Date: Thursday, February 9, 2012

Contact: Matthew Morgan – 202-226-5543

Conyers: Mortgage Settlement Agreement is First Step Toward Recovering Losses for Victims of Reckless and Abusive Mortgage Practices; But Much More Needs To Be Done

(WASHINGTON) – House Judiciary Committee Ranking Member John Conyers, Jr. (D-Mich.) commented on today’s announcement that the federal government and 49 state attorneys general have reached a $25 billion settlement agreement with the Nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. 

U.S. Representative
John Conyers, Jr.

“Today’s announcement is a first step towards providing homeowners mortgage relief,” said Conyers.  “While I did not support the initial terms of the settlement on the ground that it did not go far enough, based on available reports, the final deal represents a starting point whereby those who engaged in fraudulent mortgage servicing practices will now be held accountable and subject to stiff penalties if they violate the servicing standards required under this settlement.  It also offers some financial relief to homeowners in the form of principal reduction, lower interest rates, and greater incentives that will hopefully lead to more mortgage modifications.  The most important aspect of this settlement is that mortgage servicers – before they can pursue foreclosure – must first evaluate homeowners for other loan mitigation options.  As a result, foreclosure should be a last resort, rather than a first resort.  Another critical aspect of the settlement is that it preserves the ability of the Justice Department and state attorneys general to pursue criminal enforcement actions against these servicers.  

 “However, much more must still be done.  In particular, the Nation’s largest mortgage holders and guarantors – Fannie Mae and Freddie Mac – should temporarily cease all foreclosure actions and actively seek alternatives to foreclosure.  I continue to hear report after report that these entities refuse to negotiate in good faith.  All American taxpayers would benefit if unnecessary foreclosures were avoided and struggling homeowners were given a viable opportunity to modify their mortgages.

“As Mark Zandi, one of the Nation’s leading economists testified today before the Senate Banking Committee, more mortgage modifications ‘particularly those involving substantial principal write-downs’  have the ‘best odds of ending the housing crash more quickly and definitively.’  Since 2008, I have proposed legislation that would facilitate meaningful mortgage modifications, especially principal write-downs. This Congress the bill was reintroduced as H.R. 1587, the Home Foreclosure Reduction Act of 2011.

“I look forward to continuing to work with the Administration and my colleagues in Congress to promote alternatives to foreclosure, such as ways that would facilitate the writing down of mortgages to their actual market value to deal with the pervasive problem of underwater mortgages.”

###

Voting is beautiful, be beautiful ~ vote.©

Conyers Encourages Michigan Attorney General to Reject Flawed Nationwide Mortgage Settlement

**Follow Me On Twitter @RepJohnConyers**

For Immediate Release

Date: Friday, February 3, 2012

Contact: Matthew Morgan – 202-226-5543

Conyers Encourages Michigan Attorney General to Reject Flawed Nationwide Mortgage Settlement

(WASHINGTON) – Today, Representative John Conyers, Jr. (D-MI) sent a letter to Michigan Attorney General Bill Schutte encouraging him to reject a proposed nationwide settlement between state attorneys general and the Nation’s five largest banks concerning possible fraudulent mortgage origination and servicing practices detrimental to homeowners across the country.  The deadline for the attorneys general to accept the terms of the settlement on behalf of the states is this Monday. 

U.S. Representative John Conyers, Jr. Letter to Michigan Attorney General Bill Schuette on Foreclosure Sett...

Voting is beautiful, be beautiful ~ vote.©

Conyers Calls on Congress to Pass Obama Housing Assistance Plan that Includes Principal Reduction for Underwater Homeowners

**Follow Me On Twitter @HouseJudDems**

For Immediate Release

Date: Wednesday, February 1, 2012

Contact: Matthew Morgan – 202-226-5543

Conyers Calls on Congress to Pass Obama Housing Assistance Plan that Includes Principal Reduction for Underwater Homeowners

(WASHINGTON) – Today, House Judiciary Committee Ranking Member John Conyers, Jr. (D-Mich.) released the following statement applauding the Obama Administration’s plan to help make it easier for underwater homeowners to refinance their mortgages to take advantage of historically low interest rates.  The Obama Administration estimates that the plan could help nearly 11 million underwater Americans save approximately $3,000 a year on their housing payments.  U.S. homeowners owe approximately $700 billion in underwater debt as a result of the financial crisis of 2008.  

U.S. Representative
John Conyers, Jr.

“The plan the Obama Administration sent to Congress today will help bolster the housing market and provide much needed relief to homeowners who owe more on their mortgages than the value of their homes,” said Conyers.  “Congress should put the well-being of the American people above political posturing and pass this deficit neutral, common sense plan immediately.

“I also call on my colleagues in the House and Senate to take the opportunity to build on the President’s plan by including legislation in this package that requires some form of principal reduction for underwater homeowners.  Economists, housing policy advocates, and analysts at the Federal Reserve all agree that reducing the amount of underwater principal owed by homeowners is the most effective way to prevent foreclosures and stabilize our communities.

“A good place to start would be for Congress to require government-backed lenders Fannie Mae and Freddie Mac to write down the principal of the mortgages they own.  As I have argued for many years, such an action would provide immediate assistance to homeowners, provide a positive jolt to the economy, and lower taxpayers’ liability by helping keep homeowners current on their mortgage payments. 

“Fannie and Freddie’s regulator, the Federal Housing Financing Agency (FHFA), has the power to implement a principal reduction program.  However, up until now its Director has failed to implement such a program.  If FHFA refuses to act to stem the tide of foreclosures destroying communities in Southeast Michigan and across the country, Congress must provide the leadership that FHFA has failed to exercise.”

For additional information regarding President Obama’s proposal go to: http://www.whitehouse.gov/the-press-office/2012/02/01/fact-sheet-president-obama-s-plan-help-responsible-homeowners-and-heal-h

Voting is beautiful, be beautiful ~ vote.©

From Rep. John Conyers: Easing Homeowners’ Debt

To the Editor:

Re “Homeowners Need Help” (editorial, Aug. 22):

You are right that the federal government could do much more to help homeowners climb out from underwater mortgages, and that banks have done far less than they can for homeowners seeking relief.

John Conyers, Jr.

The key to unlocking the mortgage foreclosure crisis is the passage of a federal law allowing homeowners to reduce their mortgage debt to no more than the current value of their property.

Homeowners and the federal government have not had much leverage to get banks to stop the mortgage crisis. Current law discourages banks from voluntarily making loan adjustments that homeowners need. Giving homeowners the right to reduce their debt through recognized legal processes would no doubt provide additional incentives for lenders to work with borrowers.

This is neither a new nor a radical proposal. In 1986, Congress passed a law that allowed family farmers to modify their mortgages in response to a similar foreclosure crisis. It was so successful that in 2005, with bipartisan support, it was made permanent law. If only we could do for struggling homeowners today what we did for family farmers 25 years ago.

Last Congress, legislation that would have provided such a remedy to homeowners passed the House but died in the Senate. The bill was reintroduced, and it is my hope that Congress will take up this essential legislation soon.

JOHN CONYERS Jr.
Washington, Aug. 29, 2011

The writer is the ranking Democrat on the House Judiciary Committee.

Reps. Conyers, Gutierrez, Capuano and Sens. Franken, Menendez Release GAO Report Investigating Foreclosure “Robo-signing”

Contacts: Nicole Triplett, 202-226-5543                                                                                             Date: Thursday, May 5, 2011                   

Ed Shelleby (Franken) (202)-224-1868
Menendez Press Office (202) 224-4744
Nicole Triplett (Conyers) (202) 226-5543
Douglas Rivlin (Gutierrez): (202) 225-8203
Alison Mills (Capuano) (617) 621-6208

Reps. Conyers, Gutierrez, Capuano and Sens. Franken, Menendez Release GAO Report Investigating Foreclosure “Robo-signing”

Legislators Push for Nat’l Standards to Avoid Unfair Treatment and Wrongful Foreclosure on Homeowners

(Washington)—Today, Reps. John Conyers, Jr. (D-Mich.), Luis Gutierrez (D-Ill.), Mike Capuano (D-Mass.) and Sens. Al Franken (D-Minn.) and Robert Menendez (D-N.J.) released a GAO report confirming reports that mortgage servicers had been fraudulently signing or notarizing affidavits allowing the completion of foreclosures without any personal knowledge of the cases, a process more commonly referred to as "robo-signing." 

The legislators commissioned the report, entitled Mortgage Foreclosures: Documentation Problems Reveal Need for Ongoing Regulatory Oversight, to investigate news accounts that homeowners were being improperly foreclosed on.  In an effort to prevent future wrongdoings by mortgage servicers, the legislators today pressed banking regulators to implement safeguards recommended by the report that would ensure homeowners do not wrongfully lose their homes.

“We write today to urge you to develop a coordinated plan to ensure comprehensive oversight of federally regulated mortgage servicers and to reiterate our calls for national servicing standards that specifically address the foreclosure process,” the legislators wrote in a letter to banking regulators. “We have seen countless examples of servicers giving borrowers the run-around and continuing the foreclosure process when a loan modification has already been obtained.  Perhaps the most egregious cases of servicer wrongdoing have been violations of the Servicemembers Civil Relief Act by wrongly foreclosing on active-duty servicemembers.  Correcting these problems and ensuring they do not reoccur should be a priority for all of your agencies."

The GAO report concluded that:

• Despite various federal agencies’ having the authority to oversee mortgage servicers, past oversight of mortgage servicers’ foreclosure activities has been limited and fragmented;
• It remains unclear how regulators and the new Consumer Financial Protection Bureau will share the responsibility of overseeing servicers, continuing the potential for poor and inconsistent oversight; and
• National standards for mortgage servicers that address expectations for the foreclosure process could improve the ways servicers do business.

GAO recommends that banking regulators and the Consumer Financial Protection Bureau:

·         Develop plans for overseeing mortgage servicers; and

·         Include foreclosure practices in any servicing standards that are developed.

The letter from the legislators to Ben S. Bernanke, Chairman of the Board of Governors of the Federal Reserve System; John G. Walsh, Acting Comptroller of the Currency Office of the Comptroller of the Currency; Sheila C. Bair, Chairman of the Federal Deposit Insurance Corporation; John E. Bowman, Acting Director of the Office of Thrift Supervision, and Elizabeth Warren, Special Advisor for the Consumer Financial Protection Bureau can be read here.

GAO Letter Banking Regulators

GAO Mortgage Foreclosure Report