Baldwin Seeks Justice for Middle Class Homeowners

Statement

Congresswoman Baldwin will introduce in the House this week a resolution regarding the proposed settlement between the Department of Justice, state attorneys general, and mortgage servicers whose fraudulent practices devastated millions of American families.

Baldwin has heard from homeowners throughout Wisconsin who were victimized by unscrupulous and illegal activities by big banks and mortgage companies including robo-signing of foreclosure documents, charging illegal fees, and other deceptive practices. She believes these families deserve to be made whole and that a full investigation into these crimes must occur.

"I'm extremely concerned that a settlement between state attorneys general, federal regulators, and large mortgage service providers could let big banks off the hook and leave homeowners holding the bag, once again," Baldwin said.

Baldwin said rumors of a proposed $20-25 billion settlement between the state attorneys general, federal regulators, and large mortgage servicers is "a slap in the face" to the nearly one in four homeowners whose homes are no longer worth what they are paying for their mortgage. It's estimated that the total value lost is roughly $750 billion.

In a letter sent to Attorney General Eric Holder earlier this week, Baldwin, joined by 24 House colleagues, said she is angered that big banks deemed "too big to fail" are now seen as "too big to prosecute." She wants the banks to be held accountable for their wrongdoing and the harm they knowingly caused so many families.

Baldwin reminded Holder that homeowners are not the only financial victims of the mortgage servicers' fraudulent behavior. "State pension beneficiaries, including teachers, firefighters, and police, were also cheated out of critical investments due to fraudulent sales of mortgage-backed securities," she wrote.

To amplify and expand her appeal to Holder, Baldwin's legislation expresses that it is the sense of the House of Representatives that any action taken by the Department of Justice should be consistent with the following goals:

(1) The mortgage servicers who engaged in fraudulent behavior should not be granted criminal or civil immunity for potential wrongdoing related to illegal mortgage and foreclosure practices.

(2) The Federal Government and State attorneys general should proceed with full investigations into claims of fraudulent behavior by mortgage servicers.

(3) Any financial settlement reached with mortgage servicers should appropriately compensate for, and accurately reflect, the extent of harm to all victims, including homeowners and State pension beneficiaries, caused by the mortgage servicers' fraudulent behavior.

The Congresswoman's concerns are shared by many Americans who feel the deck is stacked against them. "I've spoken with homeowners throughout Wisconsin who are financially and emotionally devastated by the collapse of the housing market. Yet, no Wall Street executives have faced prosecution for their part in intentionally causing that collapse and that suffering. The message this sends is that average Americans play by one set of rules and everyone on Wall Street plays by another; and Wall Street always wins. The American principle of equal justice under the law must apply to all, not just some." Baldwin said.

Source