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News & ArtsTuesday, January 31, 2012
Occupy / Olympia The Occupy Bills (Featuring Sen. Pam Roach Fighting Big Banks Over Shady Foreclosures!)
Posted by Eli Sanders on Tue, Jan 31, 2012 at 10:42 AM
- Roach gets one right.
For months, groups like Occupy Our Homes and OUR Washington have been calling out big banks for their shady home foreclosure practices in Washington State and around the country. Today the issue will get some attention in the Olympia, as a couple of bills that are very much in line with Occupy's foreclosure critique have their hearings—including one bill that's sponsored by uber-conservative State Senator Pam Roach (with ultra-liberal State Senator Adam Kline as co-sponsor).
What's bringing this very odd couple together, and putting them on the side of Occupy, is the simple matter of property ownership—which became not-so-simple with the advent of securitized mortgages.
Think way back to 2008 and you'll recall that Wall Street's bundling up of many mortgages into securities that were then sold, and re-sold, and hedged against, and so on... Well, that all helped build up the giant real estate bubble that burst and brought on the Great Recession that we're all still trudging through.
Part of this Great Recession involves banks now trying to foreclose on people who can't pay their mortgages, but wait: What if no one really knows who owns a particular mortgage anymore because it's been re-packaged and re-sold and securitized so many times over?
The Roach-Kline bill, SB 6199, would make it a Class C felony for a bank to foreclose on your home by engaging in "false swearing"—that is, claiming it's the owner of your mortgage when, in fact, it's not.
“Roach is right on this one," Kline told me this morning. "And it has a certain satisfaction—people in suits actually going to jail when they commit crimes.” (Roach's office hasn't yet made her available for an interview on this subject.)
Another bill, this one introduced Kline, would throw even more of a wrench into the big banks' foreclosure strategies, causing what he calls an "earthquake" and protecting struggling homeowners. Known as SB 6070, it would require all changes in ownership of a property—and its mortgage—to be recorded in the county in which the property is located.
"When the banks started slicing and dicing these mortgages that are the basis for these mortgage-backed securities, it became hazy as to who is the owner," Kline says. Banks wanting to foreclose on a property should be required to prove they're actually the ones holding the mortgage, he continued, and "the best way to do this is to make a bank show its cards—that it’s the owner of this mortgage. Not somebody else’s mortgage, not a mortgage backed security, but this mortgage.”
2
Both of these are simply awesome. Not only for mortgages but for basic record keeping and all the things that is useful for.
There is a property near me that is a one story hole. The construction company stopped digging when their checks stopped being cashed. Now the hole is a garbage pit. The last registered owner, who took out a mortgage, is a jailed felon. The bank listed as the owner says they foreclosed and sold it and are no longer responsible for it. The city, who wants to find an accountable owner to get it cleaned up or fine for not cleaning it up, actually cannot figure out who owns it. Sounds like SB6070 would solve that.
SB6199 sounds like due comeuppance to anyone who reads The Consumerist.
There is a property near me that is a one story hole. The construction company stopped digging when their checks stopped being cashed. Now the hole is a garbage pit. The last registered owner, who took out a mortgage, is a jailed felon. The bank listed as the owner says they foreclosed and sold it and are no longer responsible for it. The city, who wants to find an accountable owner to get it cleaned up or fine for not cleaning it up, actually cannot figure out who owns it. Sounds like SB6070 would solve that.
SB6199 sounds like due comeuppance to anyone who reads The Consumerist.
3
It's an interesting angle, but one that has been pretty well examined in the last couple years and found to have not a huge impact on the foreclosure process. It won't hurt to do this, but it won't help homeowners so much as be something voters can think of on election day, as the sponsors know very well. Overall, excellent grandstanding material, the specialty of every party mentioned in this post.
4
This is a good idea. Bank of America rampantly attempts foreclosure on houses with no mortgages or with mortgages in good standing that were originally administered by the dead Countrywide, It amazed me that so many Florida lawyers would turn down a suit by Florida homeowners who were completely correct to go after a Bank that wrongfully attempted to foreclosure on their house, when the homeowners never had a mortgage to begin with. If lawyers are too cowardly to attempt suits against a dysfunctional bank, it may take legislators from anywhere on the political spectrum to make wrongful foreclosures felonious and subject to criminal and financial penalties.
5
@2: I'm interested in hearing more about this. Please e-mail me at eli@thestranger.com if you're willing.
7
Go beyond grandstanding—check out Center for Community Progress (formerly the National Vacant Properties Campaign), a non-profit that helps municipalities enact ordinances to deal effectively with vacant properties. This includes properties that are being held vacant for speculative reasons, creating health or safety hazards and blighted neighborhoods that add to demands on police and fire departments.
With all due respect to unemployed people in the construction industry, it's deeply disturbing to me that there's so much emphasis on "getting construction moving again" when we have perhaps millions of vacant homes that are still perfectly habitable but will eventually become unrepairable due to neglect. If we don't address our absolute obsession with buying brand-new homes ever bigger than the ones we're leaving (not to mention needed banking regulation), we'll be in the next bubble before we know it.
With all due respect to unemployed people in the construction industry, it's deeply disturbing to me that there's so much emphasis on "getting construction moving again" when we have perhaps millions of vacant homes that are still perfectly habitable but will eventually become unrepairable due to neglect. If we don't address our absolute obsession with buying brand-new homes ever bigger than the ones we're leaving (not to mention needed banking regulation), we'll be in the next bubble before we know it.
9
@3: I dunno, the prospect of some bank suits finally going to jail over this bullshit makes me pretty happy.
10
STORY CORRECTION:
I am the citizen lobbyist that has been working these bills, getting them drafted, numbered and given the public hearing this morning. I am very upset that this article implies that Occupy has had ANYTHING to do with these bills. Not only could I NOT get Occupy to lift a finger to protest at ANY of the foreclosure auctions, two members of Occupy told me that the "true proletariat is propertyless." THIS EFFORT WAS NOT ACHIEVED BY OCCUPY. It has been done by members of Property Defense Network, the King County Association of Realtors and OUR Washington.
For those of you who need assistance with foreclosure, please visit www.propertydefensenetwork.com. And PLEASE call your Senators at 800-562-6000. It is very important, as I am facing high-paid lobbyists and I have no money with which to fight back with, only public outcry. Please call the members of the Financial Institution Committee, which you can find at www.leg.wa.gov and tell them to move this legislation forward. Thank you. Sincerely, Karen Pooley
I am the citizen lobbyist that has been working these bills, getting them drafted, numbered and given the public hearing this morning. I am very upset that this article implies that Occupy has had ANYTHING to do with these bills. Not only could I NOT get Occupy to lift a finger to protest at ANY of the foreclosure auctions, two members of Occupy told me that the "true proletariat is propertyless." THIS EFFORT WAS NOT ACHIEVED BY OCCUPY. It has been done by members of Property Defense Network, the King County Association of Realtors and OUR Washington.
For those of you who need assistance with foreclosure, please visit www.propertydefensenetwork.com. And PLEASE call your Senators at 800-562-6000. It is very important, as I am facing high-paid lobbyists and I have no money with which to fight back with, only public outcry. Please call the members of the Financial Institution Committee, which you can find at www.leg.wa.gov and tell them to move this legislation forward. Thank you. Sincerely, Karen Pooley
11
STORY CORRECTION:
I am the citizen lobbyist that has been working these bills, getting them drafted, numbered and given the public hearing this morning. I am very upset that this article implies that Occupy has had ANYTHING to do with these bills. Not only could I NOT get Occupy to lift a finger to protest at ANY of the foreclosure auctions, two members of Occupy told me that the "true proletariat is propertyless." THIS EFFORT WAS NOT ACHIEVED BY OCCUPY. It has been done by members of Property Defense Network, the King County Association of Realtors and OUR Washington.
For those of you who need assistance with foreclosure, please visit www.propertydefensenetwork.com. And PLEASE call your Senators at 800-562-6000. It is very important, as I am facing high-paid lobbyists and I have no money with which to fight back with, only public outcry. Please call the members of the Financial Institution Committee, which you can find at www.leg.wa.gov and tell them to move this legislation forward. Thank you. Sincerely, Karen Pooley
I am the citizen lobbyist that has been working these bills, getting them drafted, numbered and given the public hearing this morning. I am very upset that this article implies that Occupy has had ANYTHING to do with these bills. Not only could I NOT get Occupy to lift a finger to protest at ANY of the foreclosure auctions, two members of Occupy told me that the "true proletariat is propertyless." THIS EFFORT WAS NOT ACHIEVED BY OCCUPY. It has been done by members of Property Defense Network, the King County Association of Realtors and OUR Washington.
For those of you who need assistance with foreclosure, please visit www.propertydefensenetwork.com. And PLEASE call your Senators at 800-562-6000. It is very important, as I am facing high-paid lobbyists and I have no money with which to fight back with, only public outcry. Please call the members of the Financial Institution Committee, which you can find at www.leg.wa.gov and tell them to move this legislation forward. Thank you. Sincerely, Karen Pooley
12
STORY CORRECTION:
I am the citizen lobbyist that has been working these bills, getting them drafted, numbered and given the public hearing this morning. I am very upset that this article implies that Occupy has had ANYTHING to do with these bills. Not only could I NOT get Occupy to lift a finger to protest at ANY of the foreclosure auctions, two members of Occupy told me that the "true proletariat is propertyless." THIS EFFORT WAS NOT ACHIEVED BY OCCUPY. It has been done by members of Property Defense Network, the King County Association of Realtors and OUR Washington.
For those of you who need assistance with foreclosure, please visit www.propertydefensenetwork.com. And PLEASE call your Senators at 800-562-6000. It is very important, as I am facing high-paid lobbyists and I have no money with which to fight back with, only public outcry. Please call the members of the Financial Institution Committee, which you can find at www.leg.wa.gov and tell them to move this legislation forward. Thank you. Sincerely, Karen Pooley
I am the citizen lobbyist that has been working these bills, getting them drafted, numbered and given the public hearing this morning. I am very upset that this article implies that Occupy has had ANYTHING to do with these bills. Not only could I NOT get Occupy to lift a finger to protest at ANY of the foreclosure auctions, two members of Occupy told me that the "true proletariat is propertyless." THIS EFFORT WAS NOT ACHIEVED BY OCCUPY. It has been done by members of Property Defense Network, the King County Association of Realtors and OUR Washington.
For those of you who need assistance with foreclosure, please visit www.propertydefensenetwork.com. And PLEASE call your Senators at 800-562-6000. It is very important, as I am facing high-paid lobbyists and I have no money with which to fight back with, only public outcry. Please call the members of the Financial Institution Committee, which you can find at www.leg.wa.gov and tell them to move this legislation forward. Thank you. Sincerely, Karen Pooley
13
@ Gloomy Gus,
Your comments really offend me. I have spent countless hours volunteering my time for the citizens of Washington state who are facing foreclosure. Many will never know the hours, money, time, gas, etc that I have spent in pursuit of their protection.
Your off-hand comment like these Senators put forth these bills to "grand-stand" and get votes. That is simply not true. I lobbied them to write these bills. I lobbied them to get them numbered. I lobbied them to bring them to hearing. It takes massive work to accomplish this. I have researched this and consulted with foreclosure defense attorneys, all for free so that YOUR Washington economy might turn around. That is, if we can get the fraudulent foreclosures stopped.
So, the next time you casually say something as naive as what you just said, stop and think if you really know what you are saying.
My efforts are all because it is my belief that someone has to pick up the ball. And I saw no one doing it.
Your comments really offend me. I have spent countless hours volunteering my time for the citizens of Washington state who are facing foreclosure. Many will never know the hours, money, time, gas, etc that I have spent in pursuit of their protection.
Your off-hand comment like these Senators put forth these bills to "grand-stand" and get votes. That is simply not true. I lobbied them to write these bills. I lobbied them to get them numbered. I lobbied them to bring them to hearing. It takes massive work to accomplish this. I have researched this and consulted with foreclosure defense attorneys, all for free so that YOUR Washington economy might turn around. That is, if we can get the fraudulent foreclosures stopped.
So, the next time you casually say something as naive as what you just said, stop and think if you really know what you are saying.
My efforts are all because it is my belief that someone has to pick up the ball. And I saw no one doing it.
14
Karen Pooley @10, 11, 12 and 13, you seem quite proud of a mighty effort you've made, and I'm happy you have a sense of purpose. But mildly increasing the robosigning penalty and enacting slightly more stringent recording standards from here on simply won't have the effects you seem to think.
15
A similar law to SB 6199 was enacted in Nevada and virtually stopped foreclosures. Where they had been averaging 1000/month; now they're averaging 5. It may not be a perfect bill, but it is a significant step in the right direction.
16
@Gloomy Gus,
Just an FYI, I have never "posted" here before. I didn't see my posts. So I kept posting.
But, just what do you know about this foreclosure mess?
BTW, this is not a "robo-signing" penalty. Do you know what the "Declaration of Ownership" does? What it is?
We have simply been asking for it with the current penalty and it stops the foreclosure auction sale. So just imagine if we could prosecute. Just imagine.
And the way the legislature works is incremental change.
And "slightly more stingent recording records"?? If you think this isn't worthy of a fight, please share with us why the banking lobbyist, the MERS lobbyist and the Trustee lobbyist were they fighting against us?
Just an FYI, I have never "posted" here before. I didn't see my posts. So I kept posting.
But, just what do you know about this foreclosure mess?
BTW, this is not a "robo-signing" penalty. Do you know what the "Declaration of Ownership" does? What it is?
We have simply been asking for it with the current penalty and it stops the foreclosure auction sale. So just imagine if we could prosecute. Just imagine.
And the way the legislature works is incremental change.
And "slightly more stingent recording records"?? If you think this isn't worthy of a fight, please share with us why the banking lobbyist, the MERS lobbyist and the Trustee lobbyist were they fighting against us?
17
@15, you exagerrate how much the proposed bills here resembles Nevada's - ours aren't nearly as tough. And you also exaggerate the dropoff in Nevada, and the extent to which it mirrored a national dropoff.
@16, I'm not saying the bills are bad, or that they'll hurt anything. What I'm criticizing are the overblown claims of efficacy being made for them. Of course the lobbyists wouldn't want any changes, but that doesn't mean these bills are going to do what you are hoping. It is nice to see you now saying, ooh, incremental, acknowledging that in and of themselves they'll be about as efffective as, for example, I was saying.
@16, I'm not saying the bills are bad, or that they'll hurt anything. What I'm criticizing are the overblown claims of efficacy being made for them. Of course the lobbyists wouldn't want any changes, but that doesn't mean these bills are going to do what you are hoping. It is nice to see you now saying, ooh, incremental, acknowledging that in and of themselves they'll be about as efffective as, for example, I was saying.
19
"Guy Fawkes" is very upset at the suggestion that Occupy had anything to do with these bills??
And, re: 16, "I have never 'posted' here before"?? Except for Apr 7, 2011, you mean.
And, re: 16, "I have never 'posted' here before"?? Except for Apr 7, 2011, you mean.
20
Rob. I am terribly sorry. I posted here once. In April. Of last year. That means I know exactly how this site works. I know that if you post as an "anonymous" poster that it would not show up in the normal view. I know that if you post as "anonymous" it would not post links. And when I did "sign in" to have a "registered" posting......I had no idea that I *had* a registered posting. Please offer me some slack. Working as a volunteer for the citizens of this state, working a full time job.....but I am supposed to know everything about posting on "The Stranger" too?
And yes, I am upset that this article would imply this was Occupy. You see, I have been trying to garner their support for policy changes for a long long time AND begged them to help by protesting at foreclosure auctions. I have received neither. Then I was told by OS that homeowners should lose their home as the "true proletariat is propertyless." Which means to me that OS doesn't really understand the massive impact of what really is going on regarding Wall Street. It IS all about the homeowners AND the investors to these loans that were BOTH misled and scammed out of money. OS should be protesting this. But, they haven't come on board in the least to help my efforts. So, yes, I do resent this implication that somehow Occupy Seattle "gets it." Should they change their attitude and come on board, I would be grateful, but they continue to believe that shutting down ports is more in line with what they think will help. That's their opinion, they are welcome to it.
And yes, I am upset that this article would imply this was Occupy. You see, I have been trying to garner their support for policy changes for a long long time AND begged them to help by protesting at foreclosure auctions. I have received neither. Then I was told by OS that homeowners should lose their home as the "true proletariat is propertyless." Which means to me that OS doesn't really understand the massive impact of what really is going on regarding Wall Street. It IS all about the homeowners AND the investors to these loans that were BOTH misled and scammed out of money. OS should be protesting this. But, they haven't come on board in the least to help my efforts. So, yes, I do resent this implication that somehow Occupy Seattle "gets it." Should they change their attitude and come on board, I would be grateful, but they continue to believe that shutting down ports is more in line with what they think will help. That's their opinion, they are welcome to it.
21
@Gloomy Gus,
I never said that this legislation is exactly what Nevada did. Just an FYI, Washington is the most bank-friendly state regarding our Deed of Trust Act, and this is confusing as we have been a fully Democratic state for quite some time.
But, if you would think about what this would provide for....transparency in the land records, it would literally cut MERS off at the knees. You see, they do massive transfers that are hidden from the homeowner unless you sue. That is the only way a homeowner can obtain who their loan went to and when. Why should this be hidden? Why should a homeowner not be allowed to know who owns their property and who is the true lien holder?
And add that to if the beneficiary signs a false declaration it is a felony? It would literally begin to restore our system here. Yes, we will need to come back next session with more bills, but why not fully support what we've done thus far? I urge you to call your Senators today. Tomorrow is the cut off day for these bills moving forward. Rather than criticize, I urge you to call. 800-562-6000 is the toll-free number to let them know you support this legislation.
I never said that this legislation is exactly what Nevada did. Just an FYI, Washington is the most bank-friendly state regarding our Deed of Trust Act, and this is confusing as we have been a fully Democratic state for quite some time.
But, if you would think about what this would provide for....transparency in the land records, it would literally cut MERS off at the knees. You see, they do massive transfers that are hidden from the homeowner unless you sue. That is the only way a homeowner can obtain who their loan went to and when. Why should this be hidden? Why should a homeowner not be allowed to know who owns their property and who is the true lien holder?
And add that to if the beneficiary signs a false declaration it is a felony? It would literally begin to restore our system here. Yes, we will need to come back next session with more bills, but why not fully support what we've done thus far? I urge you to call your Senators today. Tomorrow is the cut off day for these bills moving forward. Rather than criticize, I urge you to call. 800-562-6000 is the toll-free number to let them know you support this legislation.
22
@21, my Nevada remark was directed to @17, not you. Tried to be clear about that.
As for MERS, I think you're way optimistic about how much this will stymie proper foreclosures, or about how many foreclosures are actually invalid. Many lenders have stopped filing in the name of MERS, and are getting MERS to assign to the correct entity before filing. Not a huge problem for them.
Again, I am not critical of your actions, I am critical of claims their passage will guarantee or even lead to some sort of panacea for either underwater mortgagees or the economy. I would also caution against expecting Roach and Kline to sail the bills through - Kline in particular is famous for failing to muster legislative support for legislation, though that may not be the case here.
As for MERS, I think you're way optimistic about how much this will stymie proper foreclosures, or about how many foreclosures are actually invalid. Many lenders have stopped filing in the name of MERS, and are getting MERS to assign to the correct entity before filing. Not a huge problem for them.
Again, I am not critical of your actions, I am critical of claims their passage will guarantee or even lead to some sort of panacea for either underwater mortgagees or the economy. I would also caution against expecting Roach and Kline to sail the bills through - Kline in particular is famous for failing to muster legislative support for legislation, though that may not be the case here.
23
(And in @22 I wrote @17 when I meant @15. Honestly, just once I'd like to write something correctly the first time...)
24
GuyFawkes/Karen and Gus - I think every little bit will help and we have to start somewhere. Karen, thank you for your work here and what you've done. Lobbying the legislature without the backing of a well funded corporation is difficult at best and nigh-impossible at worst.
To Gus' fatalistic point, yes, I doubt that these bills are going to fix everything that went wrong with the housing crisis in Washington State, but they're a start and I'm proud that we have someone willing to stand up and do that. Undoubtedly there's more to do, but given the resources, this is great. And who gives a fuck if it's actually "grandstanding" or not, if it gets progress then go for it. One could argue that the Governor was grandstanding by pushing Marriage Equality at the end of her final term, but I don't give a crap if it was grandstanding - it's got a direct benefit to not only me, but the state as well.
Also, assuming that Occupy really didn't get on board with this, fuck them with something hard and sandpapery. If they really aren't supporting this for the reasons Karen stated, then this is definitely NOT Occupy-related.
To Gus' fatalistic point, yes, I doubt that these bills are going to fix everything that went wrong with the housing crisis in Washington State, but they're a start and I'm proud that we have someone willing to stand up and do that. Undoubtedly there's more to do, but given the resources, this is great. And who gives a fuck if it's actually "grandstanding" or not, if it gets progress then go for it. One could argue that the Governor was grandstanding by pushing Marriage Equality at the end of her final term, but I don't give a crap if it was grandstanding - it's got a direct benefit to not only me, but the state as well.
Also, assuming that Occupy really didn't get on board with this, fuck them with something hard and sandpapery. If they really aren't supporting this for the reasons Karen stated, then this is definitely NOT Occupy-related.
25
Thank you Senators
It's about time someone addressed the too big to fail bank abuse of the foreclosure system. Please do take the time to read about the unlawful abuses of families in foreclosure and become part of the fight to bring reform at piggybankblog.com
Respectfully,
Gregory Dean Lemke
Past Candidate for State Representative 38th District Washington State 2002 ending returns 41%
P.S.
Meet me at facebook.com under the name Gregory Dean Lemke and follow the issues affecting the American dream today, your friendship is welcome anytime.
It's about time someone addressed the too big to fail bank abuse of the foreclosure system. Please do take the time to read about the unlawful abuses of families in foreclosure and become part of the fight to bring reform at piggybankblog.com
Respectfully,
Gregory Dean Lemke
Past Candidate for State Representative 38th District Washington State 2002 ending returns 41%
P.S.
Meet me at facebook.com under the name Gregory Dean Lemke and follow the issues affecting the American dream today, your friendship is welcome anytime.
26
Hey, I just thought of a great challenge for Occupiers. I will gladly provide $100 for anyone who can gain 10% of the 30,000 supporters to Occupy Seattle Facebook page. Can anyone tell me that we can get 3,000 Occupiers calling their Senators at 800-562-6000 tomorrow? We are hanging on a thread for SB 6070. I would gladly pay this "Benjamin" for someone going the mile to gain OS support. Please help and make money NOW.
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