Banking and Finance
By Paulina Gonzalez and Kevin Stein
California Reinvestment Coalition
Last week, new rules created by the Consumer Financial Protection Bureau went into effect to stop predatory mortgage lending and to implement common-sense requirements for loan servicing companies that process mortgage payments and who are supposed to assist homeowners who are facing foreclosure.
By Richard Eskow
Scandal-tainted megabank JPMorgan Chase is losing legal ground in the wake of its multi-year crime wave (if the term “crime wave” seems harsh, we invite you to review the evidence here, here, and here.) But in the wake of its tentative $13 billion settlement with the federal government, it may be on the verge of winning at least one battle – in the court of public opinion.
By Liana Molina and Kyra Kazantzis
Coalition Against Payday Predators
In the face of the state legislature’s inaction on payday reform and growing national visibility on the issue, cities across California are taking steps to rein in payday and other high cost lenders. Earlier this week, the City Council of Sunnyvale voted to restrict the growth of payday lenders by enacting a “cap” on the number of lenders, creating “buffer zones” between lenders, allowing payday lending only in designated areas, and establishing operational standards.
By Peter Dreier
Eric Garcetti has enormous potential to be one of L.A.'s great mayors. He is young (just 42), full of energy, experienced in politics and government, passionate about L.A., brimming with policy ideas, compassionate toward the disadvantaged and a great communicator and explainer. I saw many of these traits up-close when I co-taught a course with him at Occidental College in 2000, and have watched him blossom as he joined the City Council and served as its president.
Now he faces the daunting challenges of running America's second-biggest, and most diverse, city.
By Robert Reich
"This systematic abuse cannot be fixed with just one resignation, or two," said David Camp, the Republican chairman of the House tax-writing committee, at an oversight hearing dealing with the IRS. "This is not a personnel problem. This is a problem of the IRS being too large, too intrusive, too abusive."
By Chuck Idelson
National Nurses United
They came, they danced, they marched, 2,000 people spirited and strong, Robin Hood's merry band of men and women, through the streets of Washington April 20.
Ending up astride a prominent government building, christened with a new name and a naming ceremony. No more U.S. Treasury, now, the banner declared, "The U.S. Treasury. A Citigroup Subsidiary. Jack Lew, Inc., CEO."
"We could end AIDS, reverse climate change, fund jobs and health care. Who do you work for Secretary Lew?" asked Jennifer Flynn, managing director of Health GAP (Global Action Project). "You work for the people, not Wall Street."
By Rebecca Band
This time last year, hundreds of California families were losing their homes to foreclosure every day. 700,000 families were on the brink of foreclosure, and one-third were underwater in their mortgages, due in large part to shady lending practices that Big Banks employed to rob families of their homes.
But a lot can change in a year, and a new report released this week has found the number of foreclosures in California has dropped dramatically.
By Robert Reich
I wish President Obama and the Democrats would explain to the nation that the federal budget deficit isn't the nation's major economic problem and deficit reduction shouldn't be our major goal. Our problem is lack of good jobs and sufficient growth, and our goal must be to revive both.
Deficit reduction leads us in the opposite direction - away from jobs and growth. The reason the "fiscal cliff" is dangerous (and, yes, I know - it's not really a "cliff" but more like a hill) is because it's too much deficit reduction, too quickly. It would suck too much demand out of the economy.
By David Dayen
The ACLU plans to sue Morgan Stanley on behalf of five named plaintiffs (they will seek class action status), for the investment bank's role in fueling what they view as a discriminatory subprime bubble. In doing so, the ACLU will try to pioneer a new legal strategy, by going after the securitizer of the loans instead of the now-defunct originator.
By David Dayen
Tuesday was the first day that the servicing standards for the foreclosure fraud settlement went into effect. The standards, 304 in all, include large changes to the servicer business model, like banning robo-signing, mandating quick decision making on loan modification, providing borrowers with options to foreclosure, establishing a single point of contact and ending "dual tracking" (negotiating a loan modification with a homeowner and starting the foreclosure process on them at the same time). In a negotiated process, the big five servicers had a choice of taking 60, 90 or 180 days to implement the standards. The servicers took the full 180 days. But that ended October 3.