Pacific Progressive

GMAC’s ‘Robo-Signers’ Draw Concerns About Faulty Process, Mistaken Foreclosures

by Marian Wang ProPublica 

Several states have ordered a freeze on foreclosures by Ally Financial’s GMAC mortgage unit, which has come under fire in court for using “robo-signers” who signed off on thousands of foreclosures attesting to the accuracy of the documents without having much personal knowledge of what they contained.

Several other states are investigating GMAC after the company said last week it was suspending foreclosure evictions and sales in 23 states due to “a procedural error” that could require the servicer to “take corrective action in connection with some foreclosures.

One robo-signer, Jeffrey Stephan, has signed off on as many as 10,000 foreclosures a month, according to court records. The foreclosure affidavits, which established basic facts such as a bank’s ownership of a mortgage, were also required to be signed in the presence of a notary public. That didn’t always happen, either. (Since then, other GMAC employees have also been flagged as possible robo-signers.)

GMAC, however, seems to believe that this lack of review didn’t result in real consequences for homeowners. Its statement from Friday, as reported by the Charlotte Observer:

We are working to resolve the situation expeditiously, and we are confident that the processing errors did not result in any inappropriate foreclosures and that the substantive contents of the affidavits in question were factually accurate.

Defense Contractor Money Fueling Push to Militarize the US-Mexico Border

 

by: Mike Ludwig, t r u t h o u t | News Analysis

 

After months of prodding from anti-immigration politicians, the entire US-Mexico border is now being watched by the Predator B unmanned surveillance aircraft commonly known as Predator drones. The news may comfort residents of border states where the details of Mexico's brutal drug war continue to make headlines, but here's some more comforting news: violent crime in US border states has decreased during the past decade, and some big border cities are the safest in the nation.

Here's some uncomfortable news: several of the politicians who pushed to bring more Predator drones to the border have received campaign contributions from military contractors that make drone aircraft and parts.

But, on the bright side, the downward trend of violent crime in border states coupled with the $600 million President Barack Obama recently approved in spending on security technology like Predator drones and the deployment of 1,200 additional National Guard troops to the border indicates that the region is secure, really, really secure.

Even Homeland Security Secretary Jane Napolitano said the border is safer than ever as she briefed the press on the new Predator drones and the arrival of National Guard troops, according to The New York Times.

"Numbers don't lie," Napolitano added.

Grassroots Occupation: Chicago Parents Sit-In to Save Field House

by: Yana Kunichoff, t r u t h o u t | Report

Parents and students in Chicago occupying a school field house to protest its planned demolition have become a symbol of community resistance to blind budget cuts.

More than 50 parents have been staying overnight at the field house, nicknamed "La Casita," for more than a week, supported by donations of food by the community, and calling for the squat, peeling, two-room structure to be turned into a library instead.

The building currently houses after-school programs for Whittier Dual Language School and the neighborhood's community center, and has been targeted by Chicago Public Schools (CPS) administration for immediate demolition.

Wiping away tears, Whittier parent Araceli Gonzalez told Truthout the library was essential for the community and she was prepared to continue to fight for it.

"We are basically doing this for the children, to get them a library, space, activities after school," Gonzalez said. "Let's take them out of the streets. CPS is like throwing them to the streets." One of Gonzalez's children graduated eighth grade from Whittier, and another is in third grade at the school.

Parents at the school in Chicago's Pilsen neighborhood had been organizing for seven years, according to Teachers for Social Justice activist and Pilsen resident Gema Gaete, to divert some of the money in Chicago Mayor Richard M. Daley's Tax Increment Financing (TIF) fund to their school.

Health Law Requires Continued Coverage For Patients in Clinical Trials

This article was published by Kaiser Health News.

By Michelle Andrews

When Richard Crusoe was diagnosed with a rare form of soft tissue cancer called liposarcoma, the retired firefighter and his family pinned their hopes of slowing the cancer's advance on a drug that was being tested in a clinical trial.

Crusoe, then 57, was approved for the trial, and he and his wife flew from their home in Pembroke Pines, Fla., to the MD Anderson Cancer Center in Houston to get the treatment last September. But the day before he was supposed to begin the trial, researchers told the Crusoes that he wouldn't be able to participate after all. The reason: His health plan was refusing to cover his routine medical care during the trial.

More From This Series:Insuring Your Health

The problem wasn't the costs of the clinical trial itself: The cancer center would pay to administer the drug and analyze the results. But if Crusoe participated in the trial, his health plan would stop covering all the other doctor visits, hospital stays, tests and treatment related to treating his cancer.

Public Opinion Snapshot: How Conservative Are Americans Becoming About Government?

This article was published by the Center for American Progress.

By Ruy Teixeira 

There’s no question that Americans are unsatisfied with the way things are going in the country today. According to conservatives, this has led the public to take a sharp right turn toward embracing conservative ideology about government. But several recent poll findings suggest this claim is vastly exaggerated.

Just 37 percent of respondents in a recent CBS/New York Times poll said they believe President Barack Obama has expanded the role of the government “too much” in trying to solve the country’s economic problems. The others said either “about right” (34 percent) or “not enough” (22 percent). This hardly sounds like a conservative tidal wave.

Another finding comes from a recent Allstate/National Journal/Heartland poll, which asked people directly about their views of the proper role of government in the economy. Just 35 percent said they subscribe to the fundamental conservative ideological position on government that “government is not the solution to our economic problems, government is the problem.” Another 28 percent said that government must play an active role in regulation and ensuring that the economy benefits “people like me.” And 33 percent said they would like to see government play an active role in the economy to benefit people like themselves, but they were not sure that they could trust the government to be effective in doing so.

The conclusion is clear. The American public’s dissatisfaction with government is primarily performance-based and does not reflect a sudden ideological conversion to the conservative cause, no matter what conservative pundits and politicians say.

Ruy Teixeira is a Senior Fellow at the Center for American Progress. To learn more about his public opinion analysis go to the Media and Progressive Values page and theProgressive Studies program page of our website.

 

Child Poverty by the Numbers: New Data Shows Largest Number of People in Poverty on Record

This article was published by the Center for American Progress.

The Census Bureau released the 2009 poverty data September 16, revealing the largest number of people in poverty on record.

Poverty impairs children’s emotional, intellectual, and physical development, and ends up costing our nation billions a year in lost productivity and increased health care costs. But poverty is also a problem we can solve. We must be certain to tackle poverty’s root causes as we rebuild our economy, creating more decent-wage jobs, strengthening work supports, and investing in children early so that everyone can participate in the economy.

As the numbers will show, we cannot afford inaction.

Child poverty in the U.S. is going up

20.7 percent: U.S. overall child poverty rate in 2009.

1.4 million: Number of children who fell into poverty last year.

35.7 percent: Percentage of African-American children living in poverty.

33.1 percent: Percentage of Hispanic children living in poverty.

17.7 percent: Percentage of white children living in poverty.

14 percent: Percentage of Asian children living in poverty.

Loan Mod Profiles: Delayed Then Denied, Often Mistakenly

by Karen Weise, ProPublica

Download the audio.

Listen to David Moe talk about trying to get a loan mod.

Retired pastor David Moe describes the process of trying to get a loan modification -- only to be denied after more than a year -- as nothing short of "The Twilight Zone."

"I keep waiting for Rod Serling to walk out and sit down in my living room," he says.

Have you worked for a servicer in a loan modification call center? We want to hear from you.

Are you a homeowner who's struggling to pay your mortgage? Are you seeking a loan modification through the government program? We want to hear from you.

Moe is one of more than 520,000 homeowners who have had trial modifications through the government's foreclosure relief program but have eventually been denied permanent modifications, according to Treasury Department data [PDF]. The program puts eligible homeowners in three-month trials, at which point their mortgage servicer determines if they qualify for a permanent modification.

An additional 538,000 homeowners have been rejected for even trial modifications by the eight largest mortgage companies participating in the program. (The Treasury Department has not released program-wide data.)

Labor Fights Back for Living Wages and Jobs for All

by: Shamus Cooke, t r u t h o u t | Op-Ed

 

 

If the U.S. economy eventually recovers and current trends continue, U.S. workers won't be celebrating in the streets. The corporate establishment has made it clear that a "strong recovery" depends on U.S. workers making "great sacrifices" in the areas of wages, health care, pensions, and more ominously, reductions in so-called "entitlement programs" - Social Security, Medicare, and other social services. 

These plans have been discussed at length in corporate think tanks for years, and only recently has the mainstream media begun a coordinated attack to convince American workers of the "necessity" of adopting these policies. The New York Times speaks for the corporate establishment as a whole when it writes:

"American workers are overpaid, relative to equally productive employees elsewhere doing the same work [China for example]. If the global economy is to get into balance, that gap must close."

and: 

"The recession shows that many workers are paid more than they're worth...The global wage gap has been narrowing [because U.S. workers' wages are shrinking], but recent labor market statistics in the United States suggest the adjustment has not gone far enough."

Assimilation Today: New Evidence Shows the Latest Immigrants to America Are Following in Our History's Footsteps

This article was published by the Center for American Progress.

By Dowell Myers, John Pitkin

Read the report (pdf)

Download the executive summary (pdf)

Download "fast facts" on America's lastest immigrants (pdf)

Descargue los “datos rápidos” en español (pdf)

Download the report to mobile devices and e-readers

The story of immigrants in our nation is about newcomers integrating into our society and then strengthening our culture and especially our economy. The longer immigrants have lived in the United States, the more “they” become “us.” Pasta, salsa, sausage, and egg rolls are now as common place on American dinner tables as corn, pumpkin, and turkey. Soccer is now a national pastime, at least among youth, and millions of sports fans cheer the hundreds of immigrants who are members of Major League Baseball.

Nonetheless, opposition to immigration today is whipped up by conservatives who claim that assimilation is not occurring and that instead most immigrants are a burden on our society. But our history tells us otherwise. Immigrants to our shores today are following closely in the path of their predecessors, assimilating rapidly just like they did in the past—as most Americans witness every day in one way or another.

In this paper we use the most comprehensive U.S. Census Bureau survey data to investigate how well the process is working for today’s immigrants. Replacing the misleading rhetoric of immigration opponents with firm data, this study shows that assimilation is happening across our nation. The illusion of nonassimilation is created by looking only at newcomers who have not had time yet to assimilate as fully as earlier arrivers. But once we examine immigrants’ advancement over time—in this study from 1990 to the present—we discover that the longer immigrants are here the more they advance and the better they are integrated into our society.

Golden Years for the Gilded: Under President Bush, the Rich Got Richer but Paid Lower Taxes

This article was published by the Center for American Progress.

By Michael Linden 

The many economic failures of the Bush administration are well known—disappointing economic growth, poor job creation, stagnant and falling wages, fiscal mismanagement—all of which culminated in the worst financial and economic crisis since the Great Depression. Almost no one came out of the Bush years much better off than they went in.

Almost no one. The rich, it turns out, did fine. Their incomes soared, and their taxes plummeted. These indisputable facts from the last decade are important to keep in mind as we debate the expiration of the high-end Bush tax cuts and whether it makes sense now to borrow another $830 billion over the next ten years to give more tax breaks to the only group of Americans who actually fared well under the economic policies of George W. Bush.

The rich, and especially the super rich, did very well under President Bush. From 2000 to 2007 (the last year for which comprehensive data is available), the average income among the richest 20 percent of Americans increased by almost 12 percent, after accounting for inflation. Among just the richest 1 percent, however, average income grew by more than 20 percent. Compare this to the median household, whose real income actually fell slightly over the same period (Figure 1).

Protest Against DGS Sale of Fairgrounds Filed - Alleges Bid Process Favors One Bidder

Download Orange County Fairgrounds Protest

A protest against the bid process being used by DGS to sell the Orange County Fairgrounds has been filed.  The protest alleges that the RFP favors one bidder over all others.  Additionally, the protest alleges that the Fairgrounds cannot be sold due to cloudy title and not being classified as "surplus property".   Also alleged is that the proceeds of the sale of the Fairgrounds cannot be used for the General Fund as desired by the Governor.  

The allegation that the bidding process has been rigged to favor one bidder over all others does not surprise those who have been watching what is playing out in Costa Mesa's negotiations with Facilities Management West (FMW.)  To further their chances of actually getting control of the property, FMW hired Gary Hunt, Gov. Schwarzenegger's campaign finance chair who works for California Strategies. Another insider was also brought into the FMW fold.  Becky Bailey-Findley, the former OC Fair CEO, was retained by Costa Mesa as their consultant on the purchase of the property until it was found out she was also talking with FMW about potential employment with them. 

The bid protest outlines how the terms of the new RFP are the same or nearly the same as the deal FMW is negotiating with Costa Mesa:

• Both allow a secured promissory note (RFP, pg. 8; Agreement, section 2.2 A);
• Both have a $96.0 million sale price (Agreement, section 23.1, RFP II, pg.1);
• The RFP II has a minimum down payment of $20.0 million (RFP, pg. 8); the Agreement has an initial principal payment of $19.2 million (Agreement, section 2.2);
• The RFP has a term not to exceed 40-years with fixed annual payments determined by the bidder, and a fixed payment schedule not based on Property operation; the Agreement allows for staggered payments (RFP, pg.8; Agreement, Purchase Price, Sections 2, 2.1, 2.2); and
• Both recite the property is being sold "as is", with the Agreements including personal property.  (RFP II, pg. 10; Agreement, Recitals A and Sections 1.1, 4.1)

Another issue that is raised is the short time frame to do due-diligence on the deal.  The prior RFP had over 90 days for due diligence, the current RFP has 30 days.  Due diligence includes inspecting buildings and grounds, determining the condition of any other property being purchased, performing a title search  to find out title is clear enough to be transferred, pulling together financing, putting together an operating plan for the property (even if for internal use, this is needed to determine the highest bid the bidder will go to.)  Inspecting the buildings, grounds, and other property requires permission of the State to enter the property for inspection - you just can't go on the property with your inspector and start going over buildings with a fine tooth comb.  The short time frame of the new RFP, along with the terms, look like the RFP was written to favor a bidder who already has inspected the property and has financing in place.

It's time to stop this nonsense.  Call the Governor and the leaders of the Assembly and tell them enough is enough.

Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814
Phone: 916-445-2841
Fax: 916-558-3160 

Senate President pro Tempore Darrell Steinberg

Phone:  (916) 651-4006 

Fax:  (916) 323-2263

State Capitol, Room 205,  Sacramento,  CA  95814 

 

Senator Dennis Hollingsworth

Phone: (916) 651-4036

Fax: (916) 447-9008

State Capitol, Room 305 , Sacramento, CA 95814

 

Assembly Speaker John Perez

Tel: (916) 319-2046

Fax: (916) 319-2146State Capitol,  P.O. Box 942849,  Sacramento, CA 94249-0046<

 

Assembly Member Martin Garrick

Phone 916-319-2074
Fax 916-319-2174

State Capitol, Sacramento, CA 95814

 

 

New Plans for Uninsured Off to Slow Start

This article was published by Kaiser Health News.

By Phil Galewitz

KHN Staff Writer 

Ruth Titus, a 59-year-old cook from Taos, N.M., leaped at the opportunity in July to sign up for health insurance under a new federally subsidized program for uninsured people with health problems. With her history of bladder cancer, she said "it was hopeless to even look" for private coverage because she’d be turned down.

Titus is one of what some officials say has been an unexpectedly small number of people to sign up for the program, which was touted by the Obama administration as an early benefit of the new health overhaul law. It began last month in 30 states with the expectation that many thousands of uninsured people would apply for the opportunity to get comprehensive coverage regardless of their health status. But that hasn’t been the case.

Race and Beyond: Whistling Dixie

This article was published by the Center for American Progress.

By Sam Fulwood III

Mississippi Gov. Haley Barbour just can’t let his old South memories wither and die without a fight for redemption.

Barbour, who is considered a leading contender for the Republican Party’s 2012 presidential nomination, said in a recent interview with the conservative magazine and website Human Events that it wasn’t people like him who fostered opposition to school desegregation. No, it was all those “old Democrats” in the South who stood in the door to prevent blacks from attending public schools across Dixie.

“By my time, people realized that was the past, it was indefensible, it wasn’t going to be that way anymore,” said Barbour, who at 62 is old and politically astute enough to know better than to say something so clearly inaccurate. “And so the people who really changed the South from Democrat to Republican was a different generation from those who fought integration.”

Horsefeathers! They were the same people. Conservative white Southerners began fleeing the Democratic Party in 1948 with Strom Thurmond’s short-lived Dixiecrat Party to eventually find a warm embrace within the GOP some two decades later, just as legal segregation began to lose its grip on the South’s throat. This political evolution is well-established history. So well documented, in fact, that it has its own moniker: The “Southern Strategy,” which inflamed racial fears to persuade a majority of white Southerners to vote for Republican presidents Nixon, Reagan, and Bush I and II.

Still Making Things Worse: An Updated Critique of Conservative Health Policy Proposals

This article was published by the Center for American Progress.

By Karen Davenport, Igor Volsky 

Download the memo (pdf)

Introduction

Less than six months after passage of the Affordable Care Act—landmark legislation that will expand coverage to 31 million Americans, reduce the growth of health care spending, and reduce the federal deficit over the coming decade— conservative think tanks, pundits, and politicians are urging Congress to repeal, or repeal and replace, the new law. But how would these pundits and policymakers address the problems of cost, coverage, and access that have festered in our health care system for decades? Would their proposals solve this puzzle?

A careful look makes clear they would not. Most of those who advocate repeal of the Affordable Care Act, or ACA, are really calling for a “do-nothing” approach. Their “solution” is for today’s myriad health care problems to continue to fester and grow, saddling future generations of Americans with unsustainable federal budget deficits and leaving the American people paying more each year for health insurance—if they are fortunate enough to have health insurance at all.

Even worse, though, are proposals offered by some conservatives. Whether small or large in scope, these approaches would exacerbate already existing problems in our health care system while failing to rein in ever-rising health care costs. These conservative “solutions” would hurt the average family budget and those left out of our health care system altogether. But let’s look at both of these conservative options—simply returning to the status quo of 2009, or doing even more harm—in more detail. Neither approach offers the health care prescription our nation needs.

Loan Mod Profiles: In Trial Limbo

by Karen Weise, ProPublica

Download the audio.

Listen to Michael and Concetta talk about the loan mod process.

Last fall, Wells Fargo told Michael and Concetta Acevedo that after a three-month trial, they could get a permanent mortgage modification that would allow them to keep their Staten Island townhouse.

Instead, 10 months later, the Acevedos are still making trial payments and fighting to save their home. The delays have dragged on even though a judge penalized Wells Fargo for errors processing their case. The Acevedos' trust in the bank -- and the modification process -- has run dry.

Have you worked for a servicer in a loan modification call center? We want to hear from you.

Are you a homeowner who's struggling to pay your mortgage? Are you seeking a loan modification through the government program? We want to hear from you.

"I wonder if they have a little cube, and they throw it up in the air to see what decision they are going to make," said Michael Acevedo.