Constituents of Rep. Dennis Cardoza, Shrimp Slayer-Merced, received on Friday a newsletter titled "Foreclosure Event," announcing a foreclosure-counseling session in Stockton for Saturday, co-hosted by Rep. Jerry "HighTek" McNerney, Pombo's Replacement-Pleasanton. On the surface, this is one more episode in the Denny Show in which the ol' slayer demonstrates his compassion for constituents (on one day's notice).
If only it were so. Some of the Shrimp Slayer's constituents, however, found an article on the Blue Dog Coalition published the same day, "Blue Dog Democrats: Conservative, Or Just Plain Corrupt?" by David Sirota. Cardoza is a co-chairman of the Blue Dog Coalition, a group of Democrats that votes with Republicans most of the time. He is one of three congressmen who lead the coalition. As Sirota explains, the Blue Dog opposition to H.R. 3609, the Emergency Ownership and Mortgage Equity Protection Act, reeks of one more Blue Dog sellout to finance, insurance and real estate special interests. Cardoza, one of the most mindless pro-growth congressmen in the nation during the real estate bubble, represents a district that now contains the highest foreclosure rates in the nation. In the backroom, he sells out to special interests; in public he twists the knife into the victims of mortgage fraud that has caused a global credit crisis by offering "counseling." McNerney trots along as liberal window dressing.
The juxtaposition of the Cardoza flak and the article on Blue Dog corruption reveals the pattern of behavior we have come to expect from the Shrimp Slayer. Cardoza always claimed to be in favor of the Endangered Species Act at the same time as he introduced three bills to gut it. Presumably, even now he is working behind the scenes on the latest, administrative, attempt to accomplish what Congress refused to do. Whoever is vulnerable -- from victim of predatory lending to little beastie -- you can be sure to find Cardoza nearly weeping in public and stomping in the backroom. This combination of sentimentality and brutality is the essence of this politician's corrupt career. Whenever the Denny Show comes to town oozing compassion, look in the backroom for what he's covering up. This is a guy who acts as if he believes the US Congress exists solely to enhance his personal power and wealth. He does not appear to have any other goal or any shame at all.
However, on Nov 15, 2007, Cardoza voted for H.R. 3915: Mortgage Reform and Anti-Predatory Lending Act of 2007. All Democrats who voted voted for H.R. 3915, joined by 64 Republicans. Everything about this bill looks good except the date. It should have been the Mortgage Reform and Anti-Predatory Lending Act of 2004. But there is just nothing like Congress for slamming doors shut on empty barns. And for that you can't blame Cardoza. It's the company he keeps. The Associated Press-Ipsos poll showed Congress got a 25-percent approval rating on November 5--eight points lower than the president.
Finally, Mercedians received an editorial from Sonny Star, Mama McClatchy's local gigolo press, complaining about the dangers to the community of foreclosed, empty houses, "Foreclosure is not a superficial problem -- it creates unsafe and unhealthy conditions in our community...Our View." Sonny Star never saw a development it didn't like, including the Riverside Motorsports Park project (until after it was approved by the board of supervisors). Sonny suggests an "emergency law" to deal with the growing problem.
Badlands Journal suggests that those responsible for this growing problem, the members of the Merced City Council and the Merced County Board of Supervisors, be held personally liable because -- as the local land-use authorities -- they approved the projects that are now stinking up the town. Five of the seven city council members were realtors when these projects were approved and they profited from them. They knew the game and have absolutely no claim of innocence. Developers and large landowners dictated every land-use decision the supervisors made throughout the speculative real estate boom. Personal liability, in our view, would include sending out the elected officials who made the land-use decisions in work crews in color-coded overalls to maintain those empty houses. The idea that those who made such stupid decisions, driven by such open greed, should now open the public trough with an "emergency law" to maintain homes built for a speculator-driven bubble, is vintage Sonny Star. It works on the principle that if the public is dumb enough to pay to clean up a mess made by the land-use authorities elected to serve the public and by the gigolo press, another boom will start and real estate advertising revenues are sure to return to the coffers of McClatchy Co.'s local outlet.
Badlands Journal editorial board
Vision Credit Education, Inc.
Emergency Ownership and Mortgage Equity Protection Act--11-1-07
Congress may soon vote on H.R. 3609, which is titled the Emergency Ownership and Mortgage Equity Protection Act. The idea is to provide bankruptcy judges the authority to modify mortgage loans to help families afford the payments.
The bill proposes allowing distressed homeowners to include their mortgage in a Chapter 13 bankruptcy filing. There are some other important proposed changes also.
H.R. 3609 would eliminate the credit counseling requirement that was put in place by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. A distressed homeowner would merely have to prove to the court that a foreclosure action has commenced. It is unknown if this provision will remain in the final version of the bill.
These are the major points of the bill:
Eliminates taxpayer bailout of subprime mortgage industry
Helps some families avoid foreclosure
Helps surrounding property values by reducing overall foreclosure rates
Lenders could avoid expensive foreclosure costs
Eliminates requirement for credit counseling to file Chapter 13 bankruptcy (assume foreclosure action has commenced)...
MBA Not Fond of Proposed Bankruptcy Legislation...Kerri Panchuk...10-5-07
The Mortgage Bankers Association (MBA) released a statement this week signaling its concerns about proposed legislation that, if passed, would allow bankruptcy judges to modify the terms of a mortgage contract during bankruptcy proceedings. The house bill, HR 3609, passed the House Judiciary Committee's Subcommittee on Commercial and Administrative Law by a 5-4 vote.
“Giving judges free rein to rewrite the terms of a mortgage would further destabilize the mortgage backed securities market and will exacerbate the serious credit crunch that is currently hindering the ability of thousands of Americans to get an affordable mortgage,” said Kurt Pfotenhauer, senior vice president for government affairs and public policy at the MBA. “The current legislation gives no guidance as to the proper parameters for judges to modify existing loan contracts.”
Pfotenhauer says judges with more authority to decrease a loan's value also have the ability to hit all consumers in the pocketbook.
“The reason you only pay six percent on a mortgage loan, where another type of consumer loan may cost ten percent or more, is that the mortgage loan is secured by an asset—the home,” explained Pfotenhauer. “When a judge can unilaterally reduce the amount that the lender can get when the home is sold, it devalues the asset securing the loan and the lender and investor will either not fund a loan, or will increase the cost of the loan. Either way, consumers are the ones who pay the price.”
Blue Dog Democrats: Conservative, Or Just Plain Corrupt?...David Sirota
Through their ethics scandals, Republicans in Washington long ago began making the word “conservative” synonymous with the term “corrupt.” Surprisingly, though, it is a group of Democrats that is cementing this definitional conversion for good.
In the midst of the housing crisis, a cadre of self-described “conservative” Democrats called the Blue Dog Coalition is demanding congressional leaders delay legislation designed to help people trapped in high-interest loans stay in their homes and avoid foreclosure. The bill, House Resolution 3609, allows judges to ameliorate the terms of abusive “subprime” mortgages. Rep. Brad Miller, D-N.C., is championing it-a gutsy move for a lawmaker whose state domiciles major lenders.
The Blue Dogs say they oppose Miller’s initiative out of concern for the integrity of the 2005 Bankruptcy Bill-a telling justification. Under that odious law, millionaires can shield their mansions from creditors, and corporate executives (think: Enron guys) can prevent ripped-off shareholders and employees from seizing their holdings. Harvard’s Elizabeth Warren notes that the law also “permits people with vacation homes and investment property to rework their mortgages in bankruptcy.”
But regular homeowners? Sorry-without Miller’s legislation, judges are barred from defending you against the vultures.
Blue Dog Democrats cite the social conservatism of their rural and exurban districts as the reason for such high-profile stands against their party. Somehow, we are expected to believe that their constituents’ anti-abortion or pro-gun views mean those same constituents want Congress to help banks throw people out of their homes. But since when did any voters-conservative or otherwise-support that kind of thing?
Since never, of course. “Conservatism” is being used as the cover for corruption.
As National Journal reports, corporate lobbyists “knew exactly who to go to in order to stop the [foreclosure relief] bill in its tracks: the Blue Dog Coalition.” These lawmakers are the mercenaries’ go-to crew not because of any principled ideology, but because they have been big recipients of campaign cash from the finance and real estate industries.
Of course, this is only the most recent example of pay-to-play shenanigans on banking issues.
In 2005, 20 “New” Democrats-another group billed as “conservative”-signed a letter demanding the passage of the original Bankruptcy Bill. Those Democrats had pocketed a combined $750,000 from the financial industry.
That same year, the Senate cast a “conservative” vote defeating a bill limiting credit card interest rates to a whopping 30 percent-a modest measure to say the least. Eighteen Republican and Democratic lawmakers voting against the measure had previously voted for a tougher interest cap. What changed? They received about $2 million from the credit card and banking industries in the interim.
Still, this new Blue Dog letter takes the cake for sheer brazenness. Why? Because the current mortgage crisis is especially hitting the kinds of exurban and rural districts these “conservative” Democrats purport to speak for.
The Atlantic Monthly’s Matthew Yglesias recently reviewed foreclosure data and found that “the hardest-hit areas are the high-growth fringes of vibrant metro areas”-the exurbs that Blue Dog signatories like Illinois Rep. Melissa Bean (D) represent.
Real Estate magazine reports, “In 500 rural counties, one-third or more of mortgage originations involved high-interest loans.” That could spell trouble for districts like the one represented by Rep. Jim Marshall, D-Ga.-another signer. His state has almost 30,000 homes financed by subprime loans.
So, will these faux “conservatives” win? Maybe in this battle over mortgage reform, and in some other upcoming skirmishes like the brouhaha over taxes. National Journal reports that this same group of Democrats is intent on “limiting the scope” of proposals to close the loophole letting billionaire hedge fund managers pay a lower tax rate than the janitors who clean their offices. Apparently, the Blue Dogs would have us believe conservative, working-class constituents are insisting their congressional representatives not only support bank foreclosures, but also help Wall Street barons rob the federal treasury.
Nonetheless, over the long term, those like the Blue Dogs will have an increasingly difficult time succeeding-both legislatively and electorally. The more they attach their “conservative” label to such obscene corruption, the more that label will be indelibly tarnished. Aiding loan sharks and tax cheats may elicit campaign donations and smiles in Washington, but it is no way to win hearts and minds in the rest of America.
David Sirota is the bestselling author of “Hostile Takeover” (Crown, 2006). He is a senior fellow at the Campaign for America’s Future and a board member of the Progressive States Network-both nonpartisan research organizations. His daily blog can be found at www.credoaction.com/sirota.Foreclosure Event
From: Dennis Cardoza (email@example.com)
Sent: Fri 11/30/07 10:36 AM
Dear Bill ,
We all know from news reports and personal experiences that the foreclosure crisis sweeping the country is having a particularly severe effect here in the Valley. My last e-newsletter addressed this issue and included a survey asking you to tell me how the foreclosure crisis has affected you personally. The responses that I received were overwhelming; almost 70% of those answering were affected by the crisis in some way.
In response I, along with my colleague Congressman Jerry McNerney, have organized a comprehensive foreclosure workshop at 10am on Saturday December 1st to offer free, confidential advice to families facing foreclosure or worried about making their mortgage payments. Counselors will be available from government agencies such as the Department of Housing and Urban Development (HUD), the California Housing Finance Authority, and the Stockton Housing Department, as well as non-profits such as NeighborWorks and Consumer Credit Counseling. To make the most of the time with counselors, participants are asked to bring all relevant mortgage and financial paperwork. Details on the event are below. I strongly encourage anyone facing foreclosure problems to attend this workshop.
Please RSVP so we can ensure there are enough counselors on hand to offer assistance. To RSVP, or to ask any other questions you may have, please call Erica Rodriguez at (209) 476-8552 or email McNerney.RSVP@mail.house.gov.
Foreclosure workshop – free, confidential counseling for families facing or concerned about facing foreclosure.
Saturday, December 1, 2007
10 a.m. to Noon
Note: this event is workshop format so those seeking help are encouraged to stop by at any point during the event.
Stockton Arena Conference Room
248 West Fremont St.
Member of Congress
Cardoza has received $43,395 from the finance, insurance and real estate sector in the 2007-2008 campaign cycle. This is second only to his contributions from agribusiness, which total $117,440 in a Farm Bill year. In this period Cardoza has received:
$5,000 from American Bankers Association
$5,000 from National Association of Home Builders
$4,000 from Granite Construction
$4,000 from Farm Credit Council
$3,300 from Financial Center credit uNION
$2,000 from Fannie Mae
$1,000 from Mortgage Bankers Association
Foreclosure is not a superficial problem -- it creates unsafe and unhealthy conditions in our community...Our View
Take a stroll through some of the relatively new subdivisions in Merced and you'll notice something ugly: There are a lot of foreclosed homes descending into neglect.
The telltale signs begin in the front yards, where an overgrown, weed-infested mess of a lawn signals to everyone: This property has been foreclosed!
In extreme cases, some of the homes have been broken into, and others are infested with pigeons or other vermin. We're talking about dwellings that are in some instances less than a year old.
These eyesores are smack in the middle of some of the city's nicest addresses. They're a black eye for all of us...
We think the council's best option is to pass an emergency law to deal with the blight.
Doing so may send shivers up the city attorney's spine (he'd have to help craft something that doesn't trample on the rights of property owners), but it likely would be the most proactive measure the city could take because it actually would have teeth.
The city's code currently requires a lengthy review process prior to inserting itself to fix blighted properties. This process routinely takes months -- and that's just too long.
An emergency law could shorten that review process to a more responsive level -- say, a month or less...
That may be an extreme step -- but at least something gets done.