SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Investigating the Mortgage Crisis
In a press release last week, Chairman Edolphus Towns of the House Committee for Oversight and Government Reform announced a major investigation "into whether mortgage companies employed deceptive and predatory lending practices, or improper tactics to thwart regulation, and the impact of those activities on the current crisis."
This investigation is much needed, and frankly, overdue, as the https://money.cnn.com/2009/10/15/real_estate/foreclosure_crisis_deepens/...
Oct 29, 2009
In a press release last week, Chairman Edolphus Towns of the House Committee for Oversight and Government Reform announced a major investigation "into whether mortgage companies employed deceptive and predatory lending practices, or improper tactics to thwart regulation, and the impact of those activities on the current crisis."
This investigation is much needed, and frankly, overdue, as the foreclosure crisis has now hit record levels.
The Committee has requested--and will subpoena if necessary--records from Wells Fargo, Bank of America (including Countrywide), JP Morgan Chase, Citigroup, Residential Capital (GMAC), and US Bank Home Mortgage. It is also issuing a subpoena for records on Countrywide Financial's VIP program.
While the media seems focused on the Countrywide VIP program and questions of whether Towns himself benefited from it (he has denied doing so but will forward the documents to the House Committee on Standards of Official Conduct), I think the far more significant development here is the breadth of information the Committee is demanding from Big Banking.
The records in question cover 2000 to 2008, and include: the number and types of mortgages issued (whether fixed rate, adjustable, subprime, etc.); number of foreclosures and on which types of mortgages for every month during that time period; any marketing strategies and target audiences for residential mortgages, home equity loans, or similar products; special benefits provided to officials with a regulatory relationship with the banks; any draft legislation pertaining to mortgage lending that was offered to legislators; and any coordinated campaigns with other banks to fight mortgage regulation.
The Nation's national affairs correspondent William Greider recently wrote of the financial crisis: "We may know the broad outlines, but the landscape remains littered with unanswered questions and informed suspicions about who did what to produce the breakdown. The relevant facts are still buried in the files of Wall Street firms and the regulatory agencies that utterly failed as watchdogs.... Asking deeper questions about the true sources of the calamity is a first step toward developing authentic answers to the nation's predicament."
Here's hoping the Towns' investigation helps bring responses, finally, towards some of those crucial authentic answers.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
© 2023 The Nation
Katrina Vanden Heuvel
Katrina vanden Heuvel is an American editor and publisher. She is the editor, publisher, and part-owner of the magazine The Nation. She has been the magazine's editor since 1995.
In a press release last week, Chairman Edolphus Towns of the House Committee for Oversight and Government Reform announced a major investigation "into whether mortgage companies employed deceptive and predatory lending practices, or improper tactics to thwart regulation, and the impact of those activities on the current crisis."
This investigation is much needed, and frankly, overdue, as the foreclosure crisis has now hit record levels.
The Committee has requested--and will subpoena if necessary--records from Wells Fargo, Bank of America (including Countrywide), JP Morgan Chase, Citigroup, Residential Capital (GMAC), and US Bank Home Mortgage. It is also issuing a subpoena for records on Countrywide Financial's VIP program.
While the media seems focused on the Countrywide VIP program and questions of whether Towns himself benefited from it (he has denied doing so but will forward the documents to the House Committee on Standards of Official Conduct), I think the far more significant development here is the breadth of information the Committee is demanding from Big Banking.
The records in question cover 2000 to 2008, and include: the number and types of mortgages issued (whether fixed rate, adjustable, subprime, etc.); number of foreclosures and on which types of mortgages for every month during that time period; any marketing strategies and target audiences for residential mortgages, home equity loans, or similar products; special benefits provided to officials with a regulatory relationship with the banks; any draft legislation pertaining to mortgage lending that was offered to legislators; and any coordinated campaigns with other banks to fight mortgage regulation.
The Nation's national affairs correspondent William Greider recently wrote of the financial crisis: "We may know the broad outlines, but the landscape remains littered with unanswered questions and informed suspicions about who did what to produce the breakdown. The relevant facts are still buried in the files of Wall Street firms and the regulatory agencies that utterly failed as watchdogs.... Asking deeper questions about the true sources of the calamity is a first step toward developing authentic answers to the nation's predicament."
Here's hoping the Towns' investigation helps bring responses, finally, towards some of those crucial authentic answers.
Katrina Vanden Heuvel
Katrina vanden Heuvel is an American editor and publisher. She is the editor, publisher, and part-owner of the magazine The Nation. She has been the magazine's editor since 1995.
In a press release last week, Chairman Edolphus Towns of the House Committee for Oversight and Government Reform announced a major investigation "into whether mortgage companies employed deceptive and predatory lending practices, or improper tactics to thwart regulation, and the impact of those activities on the current crisis."
This investigation is much needed, and frankly, overdue, as the foreclosure crisis has now hit record levels.
The Committee has requested--and will subpoena if necessary--records from Wells Fargo, Bank of America (including Countrywide), JP Morgan Chase, Citigroup, Residential Capital (GMAC), and US Bank Home Mortgage. It is also issuing a subpoena for records on Countrywide Financial's VIP program.
While the media seems focused on the Countrywide VIP program and questions of whether Towns himself benefited from it (he has denied doing so but will forward the documents to the House Committee on Standards of Official Conduct), I think the far more significant development here is the breadth of information the Committee is demanding from Big Banking.
The records in question cover 2000 to 2008, and include: the number and types of mortgages issued (whether fixed rate, adjustable, subprime, etc.); number of foreclosures and on which types of mortgages for every month during that time period; any marketing strategies and target audiences for residential mortgages, home equity loans, or similar products; special benefits provided to officials with a regulatory relationship with the banks; any draft legislation pertaining to mortgage lending that was offered to legislators; and any coordinated campaigns with other banks to fight mortgage regulation.
The Nation's national affairs correspondent William Greider recently wrote of the financial crisis: "We may know the broad outlines, but the landscape remains littered with unanswered questions and informed suspicions about who did what to produce the breakdown. The relevant facts are still buried in the files of Wall Street firms and the regulatory agencies that utterly failed as watchdogs.... Asking deeper questions about the true sources of the calamity is a first step toward developing authentic answers to the nation's predicament."
Here's hoping the Towns' investigation helps bring responses, finally, towards some of those crucial authentic answers.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.