I hate banks...yeah, I said it!

In 2006, I began working for a community development corporation, specializing in affordable housing development in East Los Angeles. At the time I was hired on as Housing Counselor, providing the typical information any first time homebuyer should use when purchasing their first home. For about a year I provided the typical budget counseling, reviewed and made recommendations on credit scores and helping families identify ways to prepare for the purchase of their first home. Mind you, I was working for a non-profit organization, which provided this counseling for free and about 98% of our clientèle was low to moderate income levels, furthermore...it was in 2005, the height of the housing market.

In East LA, you could easily find a 2bd/2ba home for $500k...easy. The problem though, which I encountered time and time again, was the constant self-defeating feeling I'd get each time I had to tell the family across the table from me that they were in absolutely no position financially to purchase a home. Now, usually this isn't a huge deal right? Most people can take advice and say, "oh well! better luck next time!" But for the families that I worked with, many of whom were incredibly hard working, had saved for so many years, who had decided to wait for the perfect moment, were being told that under the current market, it was almost impossible for them to buy.

This was part of my job for the entire year of 2006. But right before it ended, I was met with some unexpected events, that would change my professional career upside down. Around the holidays of that same year, I had a walk-in come by. It was a young family, monolingual...who were interested in having me read over their loan documents. Now, at this point my only real experience with loan documents were 30yr fixes, low interest rates...the usual decent loan. This young family however came in with a completely different document that I hadn't ever seen. They were loan documents from Bank of America, and to be frank, they were rather obscene. Yes, I'm an educated woman...I have a graduate degree with lots of work experience, however what I was seeing in front of me were documents that even your most skilled attorney would have trouble reading. Furthermore, I'm trying to explain these loan documents to this monolingual family, and while I did my best...I could tell that they were drawing a complete...blank. The loan documents in front of me were for the home they had purchased three years prior. What they did not understand however is that in just a few months, their current interest rate (which hovered at around 5%) was about to jump to close to 9%. In addition to this, they also had a 2nd...ok? Just trying to explain it right now is giving me a headache. The bottomline is that this family had no idea that for the last 3 years they had been paying on a loan which was not only "not fixed for 30 years" but that they were also paying on an additional loan, the 1st which covered 80% of the purchase price, fixed for three years and then adjustable thereafter, while the 2nd, was the down payment, a small payment at 10% for 15 yrs, amortized as a balloon payment.

You're confused right? Right?

Basically, this family at origination was told that they were locking in this 5% interest rate for 30 years, not knowing that it was only fixed for 3 years and that the reason they didn't have to put a down payment down was because they were sold a 2nd at a higher interest rate, which would have to be paid in full at the end of 15 years. Let's just say that it was soon after this meeting that I was introduced to adjustable rates and balloon loans, both of which had prepayment penalties attached to them.

I was officially introduced to the foreclosure/mortgage crisis. An issue I have unfortunately become an expert on, but also a staunch advocate, publicly opposing the lies of financial institutions and their inability to own up to this crisis and defending the rights of families facing foreclosure in Los Angeles.

My reasons for posting about this tonight is because after watching The Rachel Maddow Show tonight, and sitting through her interview with Elizabeth Warren, I got to thinking. Almost every question Rachel asked tonight was the same questions I, and countless other advocates all over the country, have asked time and time again for the last four years. The greatest question tonight being, "why can't we force the banks to work with families facing foreclosure?" Right Rachel?!? Right?!?

But no...

The numbers Elizabeth Warren provided tonight were both informative, yet discouraging. I recently left Los Angeles to pursue other opportunities, so I'm no longer on the front lines of the foreclosure crisis, but when I left I felt that I had done all I could for my community in Los Angeles and that things might improve. However, tonight showed a different perspective.

Why Banks Suck and Foreclosures are Never ENDING!

The financial institutions began to have their financial problems in the fall of 2008. At this time, the Treasury Department, under Paulson (remember his one pager?haha)recommended that we bail out the financial institutions and provide them with enough funds to prevent any meltdown, primarily in the housing market. So in the fall of 2008, the federal government approved TARP, Troubled Asset Relief Program. Under this program financial institutions would be provided with enough funds to stay afloat with the caveat of continuing business as usual. They were expected to continue lending to families who were interested in investing in small businesses or a home. Let me just be frank and say that this never happened. Through the end of 2008 and all of 2009, until my last day in Los Angeles, there was no financial institution interested in lending any money out. Not to any of our clients, and surely not to anyone else in LA County. That is the truth. Furthermore, financial institutions have and still make it impossible to find any solution for families facing foreclosure. While modifications are to be considered, they are not.

When President Obama took office in January of 2009, within months he introduced the Making Home Affordable Program, which would be implemented that Spring and financial institutions who received funds through TARP were expected to participate. I'll be frank...once again (My apologies for always being frank), and say that while this was a sigh of relief to many of us advocates, we soon realized that it was not going to work. You see, when the banks were failing and were going broke because of all the bad investments they made, you know? Like selling really bad loans like the ones I talked about in previous paragraphs? It was going to be a national...No! GLOBAL catastrophe! Something had to be done immediately in order to save our financial system right? Well, we did that. We gave you guys the money you needed to survive. But what you also did was pay obscene amounts of bonuses to your executives, and forgot (or dare say, didn't give a crap) about Juan and Maria, who are living around the corner and about to lose their home because you refuse to answer your phone and accept a modification packet that will not only help the family, but will help YOU TOO!!

I'm a huge fan of President Obama. I'm a huge fan of Elizabeth Warren. I'm also a very huge fan of others in the federal government try to do what is right to help families stay in their homes, but I have to be honest. I'm so tired of hearing some of the solutions, when in fact they are not working and are only recommendations made by those in the banking business. With Making Home Affordable for example, banks were incentivized if and when they worked with a family to get a loan modification, however this participation was "optional." The federal government was not mandating that they participate. So the numbers Elizabeth Warren provided tonight on Rachel Maddow should be indicative of how irresponsible financial institutions have been all along and how advocates like myself and others, have not been fully utilized to provide the solutions necessary to prevent a continual up tick in the foreclosure crisis.

To hear Elizabeth Warren tonight, talk about how only about 150,000 families have been helped by the Making Home Affordable Program, while on average of 200,000 families are being foreclosed on per month, that tells you something. It also tells you something when Bank of America and Citi are both sitting in front of lawmakers today, explaining how they are apologetic about what has occurred but that they are unable to do what is necessary to help families. If this isn't infuriating enough to people, I don't know what is. The banks can put the blame on the families, stating that they bought "too much" house, but at the end of the day, the banks should be held accountable for this travesty of a financial meltdown. It is obvious to every single American that they have done nothing but squander our tax payer money, and for the federal government to not hold them accountable and mandate that they do help families remain in their home is indecent.

For years I have been requesting that advocates like myself be included in discussions being held at the national level. We have the solutions, we just haven't been asked. But when will we finally be invited? We are the people on the front lines working with families directly, one on one, every single day for the last 5 years, so shouldn't we be the one's helping to make the decisions on how to move forward? Shouldn't we be the experts in identifying what the best remedy is for this foreclosure crisis?

So thank you Rachel Maddow! You finally asked the one question we all have been dying to ask. It's just a matter of time now in which advocates like myself will be called upon to meet with the President. So I'm here, waiting...we're ready... waiting for that call.

March Madness...

I missed a huge opportunity to blog in March and I'm so bummed. So much political activity has taken place over the last month, but what can you do? I'll try to make up for it now and in the coming days. I've recently returned to my hometown of Lake Arthur, New Mexico, so I'll be honest and say I have a lot of time on my hands. Hopefully for just awhile, but who knows. Time will tell.

One thing that I have gained from moving back temporarily is an ever growing motivation to stay involved politically, even if just through social media outlets. Coming home, while a great opportunity to connect with family and friends, has also lead to an incredible feeling of political isolation. Let's be clear, I'm surrounded by two types of people. 1) People who just don't give a f*** about politics and its ever growing polarization and toying with our political system and 2) People who do care about politics, but are mostly if not all ill-informed about the current political climate. Most if not all Republicans in this overwhelmingly, conservative region receive most, if not all their political information from Glen Beck at Fox News and radio talk show host Rush Limbaugh. (I know I'm repeating "mostly if not all", so I guess I should be just say all, but trying not to generalize" Listen, I am not gonna lie as I too engage and frequent in my own leftist indulgences such as Keith Olberman and of course, the very objective and wonderful Rachel Maddow. However, with my obvious leftist leaning, I do still try to remain as objective as possible, reaching my own conclusions and furthering my personal research on political and policy topics of the day, outside of Keith and Rachel. I mean, you kind of have to be objective...right?

Well, I'll be frank and say, from what I have seen in 2009 and since relocating to southeastern New Mexico, this has not been the case with group #2 (or the GOP in general for that matter) They have earned the name "the party of No" for a reason and it may get worse. What I will say about group #2 though is unlike the non-doers of group #1, they are involved in some form of the political debate, regardless if I find them crazy or not (and let's be honest, most of the time they are crazy) Nonetheless they are participating in the civic life of this country and while my concerns are growing with this particular group, I will say that my greatest concern is by far group #1. (I'll get to #2 in a few)

Group #2 had me extremely worried early on in 2008, election year. I think we all know why and it's simple, would they go out and vote come November 4? Fortunately, many of those whom I felt belonged under group #1 came out in overwhelming numbers and voted for our current president, Barack Obama. What was even more impressive is in the way in which they represented the vote. We gained so many new and young voters, I was confident that after election night we could finally begin the work necessary to definitely take on the campaign motto of "Yes We Can!"

Well, then came January 20, 2009. President Barack H. Obama was inaugurated as the 44th President of the United States. Despite the fact I was one of thousands holding on to the infamous "purple ticket," unable to make it out of the tunnel and watch the most historic day in the country's lifetime, the country did in fact enter into a new era and there was a hint of change in the air. An era I hoped would be incredibly productive and one that many of us would be a part of, bringing change to a country that had been beaten down for eight long years.

The result was instead this:
Group #1 somehow forgot that there was more to do then just elect a new president. In fact, they completely forgot how to maintain their civic duty and remain as involved as possible in the political process, in particular to reform and help make the big political decisions facing this country, then and now. How could a movement so big and involved during the 2008 elections, just disappear? It's simple. Many just assumed that with a new administration in the White House, all would be fixed come January 21, 2009. It's obvious to many of us that this would not be the case, not at all, but I don't think the rest got the memo.

But like I've said time and time again, and something that many would definitely back me up on, we are a country that thrive on instant gratification. Already, within the first few months of 2009, we were already looking for an end to two wars, the economy reaching 1990s heights and living happily ever after, the end! What they didn't realize however was that in fact, the work had just begun!

2009 was a year in which we met our first real challenge and it was to reform our health care system. This was the greatest fight for America, attempting to make a significant stride to get millions of families insured. This was a challenge in which the country had debated for close to 100 years, but never ever succeeded. This was the time to get the job done, we had the President and the majority in Congress to do it. However, what occurred instead was the greatest hijacking in politics I have ever seen in my thirty years of life. (I know it's not long, but c'mon? I remember the Reagan/Bush years) Now, I'm not going to give the hijackers that much credit as I'm not convinced that they're that influential, but instead the blame goes to the one and only...group #1. Where the hell were the millions of voters who came out enthusiastically in 2008? Where was their attendance during the lengthy month of August where town halls were held all over the country? THEY WERE NOWHERE!!...instead...the entire healthcare reform debate was hijacked beyond anything I could have ever imagined.

Group #2 are a collection of people, both bitter and I'll be honest and say led by a lot of angry white men. They are a mixture of people who voted against President Obama and/or voted for Obama but became dissatisfied with his politics the minute he set foot into the White House. They are committed to "taking back" America (from whom, I have no idea) Furthermore, this small group of people represent a very small minority, yet have taken over the entire political conversation, healthcare and everything else the President attempts to accomplish. This group has evolved into the infamous "Tea Party Movement." Their mission: "A community committed to standing together, shoulder to shoulder, to protect our country and the Constitution upon which we were founded!" Hmm. Really? Where were you guys during the Bush years when civil liberties were taken from American's and decisions were made bypassing Congress? Oh yeah, it didn't matter then right? It matters now because...

Group #2 is destroying our country. They have retreated to protesting every aspect of the presidents policy platform, questioning his every move and authority and have gone as far as questioning his "American" authenticity. They have done nothing but divide a country and create a movement that has not proven to take a step forward, but has instead retreated back to a time in which this country faced the greatest of challenges. This "tea party" movement, has brought out a bigotry which I thought was long gone, but instead it was just hidden, under a very thin surface, waiting for the appropriate time to uproot itself and show its disgusting face. It appears, according to the Tea Party movement, that that time is now.

Rather than make an educated attempt to understand the logic behind President Obama's policies and how in fact they do help stimulate our economy and put us back on the right track, with inclusion of debate of course, the decisions by this movement are obvious. They don't care what the President proposes. Even if he were to negotiate peace on earth, in the eyes of this movement, they would still not be satisfied. The Tea Party has hijacked our political conversation, boldly objecting to our political system and informally implementing a backwards ideology which has thus been embraced by most if not all of the conservative movement, all for political gain and in an effort to "physically" take back this country. They are a group of people that are in fact scared of diversity and are freaked out that this country's fabric is no longer what they are used to. They are racists, plain and simple. When they chant "Take back America" they are not talking about taking Dems out and replacing the majority with Repubs, they are proclaiming their dissatisfaction with the current makeup of this government.

As a Latina woman, I am scared. I am scared that this group of people have been legitimized by the public, by the media and by the GOP Senators and Congressional representatives who stand behind them. I am utterly disgusted by this show of apparent "tea party" solidarity, which in my opinion is nothing more than a disgusting example of fundamental racism. Anyone who says otherwise is insane to assume that this group should be taken seriously. I have never sided with an anarchist and I will never side with the likes who side with treason.

Despite all this however, after almost a year of debate, back and forth, death panels and all...health care reform was passed and the last of the health care bill was signed into law on March 30, 2010. FINALLY! (take that tea party!)

So now, April 11, 2010...what is next? Well, the week the President signed healthcare reform, he also met with the Russians begin to take steps to put an end to nuclear proliferation, furthermore he made some decisions on offshore drilling and there appears to be a goal to get financial reform done before Memorial Day. Will it happen? Will we be able to accomplish financial reform before then or will it be another year-long fight like healthcare? Will we ever get to immigration reform?

There are so many things that we need to accomplish and I hope that with the momentum we have gained with the healthcare reform victory, we will lead many from group #1 to finally come to the realization that this does take work and that they will finally join us and keep our mission in tact.

In the meantime, I am here...in Lake Arthur, trying to survive a political undertaking of the conservative persuasion, and do my part in helping the Progressive movement...progress.