We’re proud to collaborate with The Nation in sharing insightful journalism related to income inequality in America. The following is an excerpt from Nation contributor Greg Kaufmann’s “This Week in Poverty” column.
Gisele Mata of Whittier, California, never considered herself a political activist. Other than making some calls on behalf of President Obama during the 2012 campaign, her focus was on her work, family, church and volunteering as a Girl Scout troop leader.
But on Monday, May 20, 2013, at Freedom Plaza in Washington, D.C., she was ready to march to the Department of Justice, where she would risk arrest in order to save her family’s home and stand up for other people facing foreclosure.
“Banks are doing extreme things to get people out of their homes, so it requires extreme action,” Mata told me. “I wouldn’t be here except the banks are not being monitored so we have to stand up as citizens. They are getting away with acts of inhuman behavior and the Justice Department is not reacting.”
Mata was among 500 activists from across the country who came to the nation’s capital to “Bring Justice to Justice” — participating in three days of action organized by Home Defenders League and Occupy Our Homes. They were calling for the criminal prosecution of banks for ongoing illegal activity, including illegal foreclosures; and for resetting mortgages to a property’s fair market value for the more than 13 million homeowners still at risk of foreclosure.
Mata and her family have been in their home for more than ten years. Their struggle began in 2009 when she and her husband were laid off from their jobs in retail and engineering, respectively. They survived by cashing out on their 401(k)s and working in low-wage jobs.
“We didn’t have any problems until last year,” she said, when they no longer could afford both their home and food for their family of five. So Mata and her husband requested a mortgage modification from Bank of America.
“We asked them to tack on what we owed to the principal, and to give us the going interest rate because we still have a high rate,” she said. “We aren’t even asking for a principal reduction. Plus we’re both working, we have equity in our home—but they still refuse.”
Her eldest daughter is now working as a massage therapist. Her husband is again employed as an aircraft parts quality inspector — for $13 an hour, compared to the $19 hourly wage he previously earned — and Mata earns commissions as a sales representative for an energy company. But the high interest payments they are paying force them to choose between a roof over their head or food for the family.
“Right now we’re choosing the roof and getting food from our church in order to make payments on the mortgage,” she said. “And we go to the 99 cent store and buy Top Ramen [noodles] and tuna fish. That’s pretty much how we make it.”
But even as the Matas continue to make their payments, Bank of America continues to push for foreclosure. Her dealings with the bank in an effort to get a modification tell a story that is now all too familiar in this country.
“Negotiating means paperwork multiple times over and over again,” she said. “As soon as you get it in they switch your point-of-contact and then you have to start over again. And as many times as they ask is how many times you do it, or else they won’t consider you for the modification. No one is holding them accountable.”
Ann Haines of St. Paul, Minnesota, was also ready to get arrested after experiencing an even more extreme nightmare in dealing with U.S. Bank. She had lived in her home with her three sons for thirteen years, and was struggling to meet a monthly mortgage payment that had risen from $800 to $1,300.
“I work in intake at a methadone program,” she said. “I see people at their lowest and my nature is to help. So I was foolishly thinking that by asking the bank for help I would get it.”
Instead, what she got was U.S. Bank telling her to stop making payments for three months so she would be eligible for a modification, followed by the bank sending her the wrong modification application. She then arrived home one day to find her locks changed and a realtor going out her back door. The bank proceeded with a sheriff’s sale.
“It was terrifying and you don’t know what to do,” said Haines.
Legal Aid was able to stop the sale of her home, since the bank admitted it had sent her the wrong modification application and foreclosed while she was still in underwriting — a process known as “dual tracking.” (This is now barred under the California Homeowners’ Bill of Rights and the just-passed Minnesota Homeowners’ Bill of Rights.)
“But what really inspired me to fight was the attorney for U.S. Bank sitting across from me in court and saying, ‘The only negotiation U.S. Bank is willing to do right now is to get her out,’ ” said Haines. “He didn’t have enough courage to look at me, but he said it.”
“Two days later the eviction case was magically closed,” said Haines.
She described herself as “elated” that she no longer fears losing her home at any moment. But she still felt the need to be in Washington, D.C., to support other struggling homeowners.
“I don’t want to be arrested, jail is scary for me,” she said. “But I’m willing to do it to show that this is serious. There are too many people going through this, and the banks have to be held accountable. If I did something wrong they would hold me accountable.”
Cammy Dupuy of Gonzales, Louisiana, isn’t affiliated with any particular group — she had learned about the action in recent weeks on the Internet. She was also prepared for arrest, though not particularly looking forward to it.
“I’m really nervous and scared to go to jail,” said Dupuy. “But if that’s what it takes to let people know they’re not alone — the shame shouldn’t be put on people.”
Since 2006, Dupuy’s mortgage has had so many different banks and loan servicers attached to it that the trail is dizzying. As a result, she has had her paperwork lost as servicers change, not been provided new mailing addresses for payments, fought off two sheriff’s sales and even received modification “offers” that would have had her paying double-digit interest rates and waiving her right to sue for the mishandling of her note.
Throughout her struggle, Dupuy has found herself alone.
“The thing about Louisiana, nobody talks about foreclosures, and they don’t put signs out in people’s yards like in other states, so they really keep it from the public,” she said. “But I’ve been pulling up the sales on my local sheriff’s website and every month there are quite a bit just in my parish alone.”
Dupuy said a lot of people are “just walking away because they don’t know what to do.”
“I’m tired of feeling alone. I want people in Louisiana to start talking about it, start standing up, start doing something,” said Dupuy. “The people in Louisiana fear the law. But if all of us come together and take a stand then fear shouldn’t be a problem.”
By the end of the day on Monday, Mata was arrested on the steps of the Department of Justice along with sixteen other nonviolent activists. (The nonviolence by activists didn’t translate to nonviolent arrests by Homeland Security officers, who used tasers.) The demonstrators had set up an encampment and also blocked traffic along a very busy Constitution Avenue. Mata and others didn’t give their names when booked — they didn’t want this to be just another routine booking and quick release — so she was held until Tuesday evening.
“I told them I was [Bank of America CEO] Brian Moynihan,” said Mata, and many of the other demonstrators who were arrested used the names of bank CEOs as well.
Dupuy was arrested along with six other homeowners Wednesday morning while blocking the lobby entrance to Covington & Burling — a prominent international law firm that has represented JP Morgan Chase, Bank of America, UBS and other major banks. Haines was one of the demonstrators blocking the entrance too, but because she was on the outside of the building, police just removed her from the space.
In addition to representing the large banks, organizers said the law firm epitomizes the “revolving door” between serving government and serving Wall Street’s interests, noting that Attorney General Eric Holder was a partner at Covington & Burling before coming to the DOJ, and former Assistant Attorney General Lanny Breuer left his post in March to become vice chair of the firm.
For three straight days, these homeowners and their supporters — mostly low-income people of color — demonstrated what it means to personally sacrifice for the good of others, to move beyond hopeful words to deeds and actions.
I hope that those of us who seek change feel their urgency, and will follow their lead to take more and greater action — together.
Victories in Minnesota: Progressive Budget and Homeowners Bill of Rights
According to Carol Nieters, executive director of SEIU Local 284, in 1971, Minnesota Governor Wendell Anderson called education equity — poor school districts that were struggling — and high property taxes “the issue of our time.”
The state legislature responded by creating a “general education levy” that equalized and created dedicated funding for schools, and also lowered property taxes.
“It went forward like that for like the next four decades,” said Nieters. “It put Minnesota in a place to be a premier state in education.”
But then along came Governor Jesse “The Body” Ventura who body-slammed the levy, and Governor Tim Pawlenty who presided over nearly a decade of disinvestment from schools and taking from school appropriations to plug other holes in the budget.
“As a result, we’ve now got ten or eleven four-day school districts, and other than core curriculum, everything else is cut out — arts, music, in some cases languages,” said Nieters.
But this week the state reaffirmed its commitment to education. At a time when so many states are opting to close schools that primarily serve low-income students, Minnesota passed a budget that closes corporate tax loopholes and increases education funding and equity.
The 2013 budget erases the state’s $627 million budget deficit, raises the income tax by 2 percent on the wealthiest 2 percent of Minnesotans, raises $424 million by closing corporate tax loopholes and reduces property taxes by $400 million.
The budget uses new revenues to make key investments in education, including: fully funding optional, all-day kindergarten; increasing special education funding by $236 million; and importantly, passing two levies that will make funding for all school districts more reliable, while also providing additional resources to local districts with the greatest need.
“This budget gets to equity in education and reduces property taxes,” said Nieters. “Over four decades later we are doing the same thing we did right in 1971.”
She said the budget was achieved by the union and its progressive allies reaching out to groups all across the state that were pursuing a “common interest of stronger communities [through] an educated society and workforce.” They began organizing prior to the 2012 election with a message that wealthy individuals and corporations must pay their fair share in order to strengthen education. Many Democrats ran on that platform, and the party picked up enough seats to win majorities in both the House and Senate.
After the election, the grassroots coalition kept the pressure on the newly elected legislators to follow through on their commitments. In the last few months alone, there were thousands of calls, visits, letters and e-mails to representatives, and a “Students’ Day” for parents and children at the Capitol, with students from kindergarten through high school attending.
The budget was passed last Monday night by the legislature, and Democratic Governor Mark Dayton signed it into law on Thursday.
“We engaged organizations all over the state — and we can make a difference if we do that,” said Nieters. “The voice of the people can be heard over the folks with the money. But you gotta get out there.”
* * *
On May 12, 2013, the Minnesota House of Representatives passed the Homeowners’ Bill of Rights by a bipartisan 123-0 vote. The Senate passed a companion bill two weeks ago, so now it just awaits Governor Dayton’s signature.
The bill protects homeowners through a number of provisions, including: requiring loan servicers to offer modifications to all eligible homeowners; banning “dual tracking,” which occurs when a bank forecloses on a homeowner before communicating a decision on a loan modification application; and allowing homeowners to take the servicer to court to stop foreclosure if the servicer fails to comply with any aspect of the Homeowners’ Bill of Rights. (Also important, lawyer’s fees and court costs would be covered if the homeowner proves his or her case.)
Ann Haines, the homeowner from St. Paul interviewed in the DOJ story above, testified along with other homeowners at a House hearing on the bill in January.
|Greg Kaufmann is a Nation contributor covering poverty in America. His work has also appeared on Common Dreams, Alternet, Tikkun.org, NPR.org, CBSNews.com and MichaelMoore.com. He serves as an adviser for the Economic Hardship Reporting Project.|