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Corrupt banking and lending practices are tormenting homeowners in both states at rates unmatched elsewhere, but only one state’s elected officials actually give a damn.

 

Delany Rohan

Delaney Rohan
March 8, 2012

 

In recent weeks, CA Attorney General Kamala Harris began pressuring state lawmakers to pass a “Homeowner Bill of Rights.” The move is not only a strong signal of caution for banks hoping move forward with their predatory foreclosing schemes, but makes resoundingly clear Harris’s ongoing commitment to protect California’s 2.2 million underwater homeowners from further injustices.

 

According to the LA Times, the Homeowners Bill of Rights, which spans six pieces of legislation, would:

  • Prohibit “dual-track foreclosures that allow mortgage holders to simultaneously negotiate loan modifications to lower homeowners’ interest payments while taking legal steps to foreclose on the same properties;”
  • Slap banks with a “$10,000 civil penalty for ‘robo-signed’ mortgage documents containing unverified information;”
  • Require banks to provide “a single point of contact for homeowners with their loan service providers;”
  • Enable local governments to “force banks and property owners to maintain blighted, foreclosed homes,” give “renters more time to stay in foreclosed residences;”
  • Solicit “fees from banks to pay for enhanced law enforcement actions to defend homeowners;”
  • And – perhaps most importantly – form “a statewide grand jury to investigate alleged financial and real estate foreclosure crimes.”

The bills are part of a much larger strategy to correct and punish the banking industry for willfully deceptive foreclosure practices – practices that drove the country into economic turmoil and continue to be used to illegally impoverish homeowners and unjustifiably enrich predatory banksters. In this regard, Harris has proven to be a fundamental ally for homeowners in their struggles to fight the banking and lending industry’s systemic corruption.

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-acts-in-foreclosure-cases-foreclosure-front">Elsewhere, Bondi and her colleagues have expressed hesitation and doubt over the possibility and likelihood of taking an even remotely aggressive approach when investigating offenses against homeowners. According to Richard Lawson, who heads FL AG’s Economic Crimes Division, the Office of Attorney General would rather work to change the “culture” of the banking and lending industry than prosecute and litigate on behalf of struggling Floridians.

But if this industry has a “culture,” it’s a culture that involves contracts, loans, and filing paperwork with public institutions. It’s a “culture” government by law, government administrations, and transparent certification processes. If we are ever going to change the “culture” of the banking and lending industry, a strategy that includes prosecutorial litigation, civil legal reform, and administrative reform is not just desirably – it’s fundamental.

The clock is ticking. As of this week, the FL legislature is poised to pass SB1890, a bill that, to the detriment of potentially defrauded homeowners, aims to move foreclosure proceedings much more quickly than current law permits.

Thus, despite the fact that Californians and Floridians suffer from the same economic turmoil, that their insecurities are governed by the same fraudulent organizations, and that their situations are enclosed within the same web of corrupt and deceptive practices, they are indeed on opposite ends of the spectrum when it comes to the intensity of their experiences. In Florida, the lack of government protection and assistance will undoubtedly exacerbate the intensity of residents’ suffering, and although Californians are by no means entirely protected from danger, Florida’s elected and appointed officials appear to be predators.

Tags: Kamala Harris, National Mortgage Settlement Agreement, Pam Bondi, Foreclosure, Robo-Signing, Fraud

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