Events in Miami & Orlando Call for Federal Investigation of Mortgage Fraud by Big Banks, Accountability for Housing Crisis
On Wednesday, December 21, a new coalition of faith leaders, homeowners, workers and state and local officials will hold events in Orlando and Miami to launch an effort calling for a full investigation into the mortgage crisis that has devastated the state. The new coalition – “Floridians for a Fair Settlement” – includes Florida New Majority, PICO Florida, FOCUS Orlando, Miami Workers Center, ForeclosureHamlet.org, 4closurefraud.org, Organize Now and a growing number of groups. Calling the current multi-state Attorneys General settlement talks with the nation’s five largest mortgage servicers “deeply flawed,” the group will be calling on President Obama to undertake a full federal investigation of the mortgage crisis and provide real relief for Florida homeowners.
WHO: Clergy, underwater and foreclosed homeowners, workers, policy experts and state officials including Senator Oscar Braynon
WHAT: Press conference to launch new coalition “Floridians for a Fair Settlement”
WHEN: Wednesday, December 21 at 11:15 am
WHERE: Foreclosed Apartment Building at 1459 NW 60th St
VISUALS: Homeowners, displaced tenants & clergy standing outside a foreclosed apartment building, displaced tenants, clergy in vestments, people holding signs.
According to published reports, the Obama Administration and state Attorneys General across the U.S. are considering a deeply flawed settlement proposal with the banks at the heart of the nation’s housing woes. This settlement as reported would:
- Give the nation’s largest banks immunity for fraudulent behavior that still has not been fully investigated;
- Force homeowners to continue to foot the bill for 98% of underwater mortgage debt while requiring very little from the banks that caused the crisis; and,
- Do nothing to reduce underwater mortgage debt for the 60% of borrowers whose loans are owned or guaranteed by Fannie Mae, Freddie Mac or the Federal Housing Administration.
Floridians for a Fair Settlement is coming together to call for an investigation into the mortgage fraud responsible for the crisis, and a fair settlement that includes:
- Accountability. The banks should not be granted broad release of liability for conduct that still has not been fully investigated.
- Fairness. The banks should be required to do widespread and fairly applied principal reduction, especially in communities hardest-hit by the crisis.
- Meaningful Relief. The settlement amount must reflect the scale of the crisis. The current estimate of just $20 billion is not nearly enough. We believe that a settlement amount of at least $250 billion would begin to put a meaningful dent in the problem.
- Restitution. The banks must be required to provide real restitution for families who have already lost their homes in this abusive, fraudulent system.