Working
together as a community we have the power insist on viable solutions to end America’s
economic Crises!
Proposed solutions must involve at least
two different objectives:
1. We must Implement strategies to assist families in mortgage
foreclosure.
Our Workshop's primary goal is to implement a comprehensive non-conflict of interest resource program including educational classes and a self help web-site to provide education and information to families whose home are at risk regarding how to avoid being economically taken advantage of by those who seek to profit unfairly from their mortgage foreclosure situation.
2. Working together as a community we
have the power insist on viable solutions for homeowners at risk,
and strategies to create sanctions against predatory lending. Aggressive
political action is indicated in the face of the full court press lobbying
effort the financial industry is running-an effort that cuts homeowners out of
almost every recovery package.
Did you know that, the government recently raised the debt limits to 9 trillion plus?
Most of the financial disasters of the world have occurred, throughout history, due to excessive use of debt, and excessive use of leverage (people borrowing more than they'll ever be able to pay back.) The thinking of our government, as influenced by the Greenspan Economy, was to control the business cycle by artificially manipulating the interest rate in order to stimulate spending and therefore the economy. The flawed rational was that giving people freer access to increased debt would stimulate spending and increase the health of our economy. Motivated by potential profit making our major American financial and lending institutions had no incentive to play up the risks of borrowing to the consumer.
In the name of stimulating the American Economy our government facilitated anybody who wanted to borrow, by lowering interest rates, and lowering lending standards. This in turn facilitated a growing crop of greedy banks and sub-prime lenders who were willing to bend the rules and entice a multitude of American loan consumers into assuming more debt than they could ever possibly repay to meet their financial needs.
The immediate result of this facilitation was that in 2008 2.3 million families faced foreclosure proceedings, the highest number since the Great Depression. Though the cost to individual families is hard to measure, the cost to our economy is staggering: using the Joint Economic Committee estimate of $78,000 per foreclosure, the cost to the US economy was at least $156 billion in 2008
In the past bankers had to bear the consequences of any bad credit granting decision, but with the rise of securitization - came the introduction of what you might call a banking moral hazard. Lenders were longer being incentivized to produce responsible loans, but instead were focused on increasing the quantity of loans. The lender received a fee upfront, and then sold off the loan off to somebody else.
Bulk loans buyers repackaged the mortgage loans, which were then sliced and diced into securities. This allowed the lenders to concentrate on selling more mortgage loans. This entire process allowed our Financial Institutions to progressively abandon their financial responsibilities to the loan consumer. The final abandonment of fiduciary responsibility to the loan consumer usually included transferring of the mortgage loan relationship with the loan client from the bank to a company called a loan service provider .
Select Portfolio Loan Service, Litton Loan Service, HomEq of Barclays, Fairbanks Capital, OneWest, American Home Mortgage Servicing Inc, are a few of the major mortgage service companies who have refused to sign on to President Obama's program to stop foreclosures.
Together, these Loan Servicing companies are responsible for violating the lending and borrowing rights of many millions of American Loan Consumer families.
The above named Loan Service Providers are notorious for passing around responsibility for the consumer’s questionable sub-prime loan, from servicing company to servicing company, and thereby stonewalling any action by the loan client to find the true owner of their mortgage for the purpose of seeking their legal rights and remedies or to obtain their rightful legal protections .
Millions of American consumers are truly innocent victims who have lost their homes due to predatory sub-prime loans with multiple lending law violations.
The confused victim of illegal predatory lending tactics in too many cases later becomes a victim of fraud on the part of the crooked Loan Servicing Agency who siphon’s off the last of the families’ assets by starting a foreclosure proceeding and then offers the desperate family a phony loan modification to save their home, a negotiation which all too often requires a single substantial payment of the last of the family’s available assets and then shamelessly forecloses on the hapless victim’s home anyway.
Working together as a community we have the power insist on viable solutions for homeowners who have lost their homes due to illegal predatory lending practices, or crooked loan modification offers, and creating educational programs and other legal options for those homeowners who are currently in foreclosure.
Aggressive political action is indicated in the face of the full court press lobbying effort the financial industry is running-an effort that cuts homeowners out of almost every recovery package.
In 2008 2.3 million families faced foreclosure proceedings, the highest number since the Great Depression. Though the cost to individual families is hard to measure, the cost to our economy is staggering: using the Joint Economic Committee estimate of $78,000 per foreclosure, the cost to the US economy was at least $156 billion in 2008.
If we do not take any action, Credit Suisse predicts that there will be between 8 and 9 million foreclosures in the next four years, at a potential cost to the economy of $702 billion. Simply put, addressing the foreclosure crisis must be at the heart of any economic recovery plan.
The mortgage foreclosure crisis touches all aspects of our economic meltdown and as such requires a comprehensive solution.
We are escalating our efforts, both to help save individual families' homes, and also to win a foreclosure moratorium - some needed breathing room - while we push for a truly comprehensive solution to this crisis.
The goal of this action is to ensure that hard-hit families can stay in their homes until a common-sense solution to the crisis is put in place can use to join in. In the meantime, please sign our petition to the Obama Administration in order to fight back against Wall Street interests blocking the urgently needed reform from being enacted.
If American’s cannot implement sanctions and offer methods for consumers to take any action, Credit Suisse predicts that there will be between 8 and 9 million foreclosures in the next four years, at a potential cost to the economy of $702 billion. Simply put, addressing the foreclosure crisis must be at the heart of any economic recovery plan.
The mortgage foreclosure crisis touches all aspects of our economic meltdown and as such requires a comprehensive solution.
At Kokopelli Community Workshop we are escalating our efforts, both to help save individual families' homes, and also to win a mandatory foreclosure moratorium - some needed breathing room - while we strive to create political awareness and establish important legal precedents for truly comprehensive sanctions against these reprehensive tactics and overt violations of consumer rights by the Loan Service Providers.
In the meantime….. There is one solution that will help!
The creation of: The National Consumer Financial Protection Agency.
We need to make National Consumer Financial Protection Agency a reality –
And you can help!
Won't you read and sign our petition?
You can join We-Care and sign the petition on-line at the link below: http://www.thepetitionsite.com/1/StopTheCrises
& Kokopelli Community Workshop will pay the postage & mail it for you.
Or just call your member of Congress and ask them to support the creation of the Consumer Financial Protection Agency. Call 1 (202) 684-2469 now.
This new agency would set up some common-sense rules to protect consumers, and would be accountable to people, not the Banks. And while it's not surprising that the very same banks whose practices contributed to last year's economic meltdown are crying wolf about the proposed creation of the agency, it's no less upsetting to learn that they've received billions from taxpayers like you and me.
The fact is, Big Banks of Wall Street -- those same greedy companies that have been pushing unfair financial products like "exploding" mortgages and credit cards with incomprehensible and unfair terms and fees -- think creating an agency to protect consumers is an overreaction. And they're willing to spend hundreds of millions of dollars to make sure it doesn't happen.