Foreclosures and Land Justice

Detroit People's Platform and ConventionMarygrove College, June 1, 2013

Moratorium NOW! Coalition to Stop Foreclosures, Evictions, and Utility Shutoffsmoratorium-mi.org

Housing is a Fundamental Human RightUniversal Declaration of Human Rights

Proclaimed by the United Nations General Assembly in Paris on 10 December 1948 in General Assembly resolution 217

Article 25, para 1 Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.

Foreclosures destroy Detroit neighborhoods

Detroit’s Housing Crisis triggered by the collapse of subprime loans

Characteristics of subprime loans:

Interest rates 3% or more than conventional loansVariable interest rate that rests to a higher rate after a short

periodUp to 8 times more profitable than conventional loansMassive fraud and deception in underwriting these loansRacist targeting of African American and Latino communities

by the banking industry

Subprime Loans – Racist & Predatory

In metro Detroit, in 2005-2007, 62% of African Amercans got subprime loans, compared to 28% for whites

In Detroit, from 2004-2006, roughly 75% of loans to African Americans were subprime

From 2005 to 2009, Detroit had more than 67,000 foreclosures (1 in 5 Detroit homes)

Detroit, in 1996, had the lowest foreclosure rate of any major metroplolitan area in the US

Detroit’s Storm Surge of Foreclosures

Underwater Homes: Metro Detroit is 50% higher than nation. Almost half of Metro Detroit homeowners (43%) owe more on their mortgage than the house is worth — higher by half than the national rate of 28% (Zillow Real Estate, Feb. 2013).

Foreclosure Rate: Metro Detroit triples the national average HUD’s “Spotlight” on Metro Detroit in January, 2013, reports 131,400 foreclosures since April of 2009, or 7% of all units compared to a national rate of 2.4%.

Empty Homes: 45,000 foreclosed homes in Detroit are vacant. Of 70,000 foreclosed homes in Detroit, 65% are still vacant according to HUD. Empty houses lead to blight and a downward spiral in home values and tax base.

It was not just Detroit

Wealth was lost across the board from the Great Recession, but significantly more so for people of color.

From 2005 to 2009, white median net worth fell 16% to $113,149.

But net worth fell by 66% for Latinos to $18,359, and 53% for Blacks to $12,124.

- Wasted Wealth: How the Wall Street Crash Continues to Stall Economic Recovery and Deepen Racial Inequity in America by the Home Defenders League, Alliance for a Just Society, and New Bottom Line

RATIO OF WHITE TO BLACK WEALTH1995. . . . . . . . . . . . 7-to-12004. . . . . . . . . . . 11-to-12009 . . . . . . . . . . . 19-to-1 RATIO OF WHITE TO LATINO WEALTH1995. . . . . . . . . . . . 7-to-12004. . . . . . . . . . . . 7-to-12009 . . . . . . . . . . . 15-to-1

Source: Pew Research Center, 2011

“Wells Fargo Mortgage had an emerging-markets unit that specifically targeted Black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”BETH JACOBSON, FORMER WELLS FARGO LOAN OFFICER

- Wasted Wealth: How the Wall Street Crash Continues to Stall Economic Recovery and Deepen Racial Inequity in America by the Home Defenders League, Alliance for a Just Society, and New Bottom Line

Banks Destroyed Detroit's Tax Base

From 2000-2010, Detroit lost 237,500 people (New Orleans lost 140,000 after Katrina)

From 2008 – 2011, the State Equalized Value (SEV) on Detroit real estate declined by 29%

Banks & Ratings Agencies Role in DetroitOwn or Rate City of Detroit Debt Foreclose on Detroit Homes or Rate Mortgages

Bank of America Merrill Lynch Bank of America

JP Morgan Chase JP Morgan Chase

Deutsche Bank Deutsche Bank

US Bank US Bank

Bank One Bank One

Citigroup CitiMortgage

SBS Financial

UBS Financial UBS

Goldman Sachs Goldman Sachs

Morgan Stanley Morgan Stanley

Standard & Poor’s Standard & Poor’s

Moody’s Moody’s

Fitch Fitch

Banks Engaged in a Criminal ConspiracyAccording to a report issued by the Senate Permanent Subcommittee on Investigations and chaired by Senator Carl Levin, the Wall Street banks engaged in essentially a criminal conspiracy. "Our investigation found a financial snake pit rife with greed, conflicts of interest, and wrongdoing." The crisis created by Wall Street destroyed communities and triggered massive loss of jobs, erosion of the property tax base, the reduction in services provided by cities and states, and many other problems.

So what do We do?We organize and fight!

What do We fight for?• A moratorium on foreclosures and evictions• A halt to individual homeowner evictions

• Unity with other struggles of the 99%

Tactics We useLegislative action

• Push for ordinances, local, state and national laws supporting a moratorium of foreclosures and evictions

• Campaign using rallies, marches and demonstrations, educational forums, petition drives, social media, leafleting

Demand that President Obama and state Governors declare a moratorium on foreclosures and evictions in the aftermath of Hurricane Wall Street

Legal• Packing the courtroom at eviction hearings• Lawsuits

More tacticsDirect action

• Door-to-door canvassing and sound cars in the neighborhood of the threatened eviction

• Demonstrations at banks, homes, government bodies, landlords

Eviction defense - Vigils and creative tactics at the threatened home

Social media and phone calling campaign

Moratorium?As a result of mass struggles during the Great Depression of the 1930s, Michigan and 26 other states enacted moratoriums (moratoria) on all home foreclosures, making it illegal for the banks to kick families out of their homes when they couldn't pay the mortgage. The courts adjusted loan payment terms to a fair rate for homeowners in hard economic times.

Moratorium legislation introduced during this crisis

HR 4848 (Federal)- "The Save Our Neighborhoods Act of 2012"

• SB 1306 (Michigan), introduced in 2008• SB29 (Michigan), introduced in 2009• SF 1521 and HF 1886 in Minnesota

Moratorium legislation has yet to be passed

Moratorium NOW! demonstrated in Lansing at Democratic Governor Jennifer Granholm’s State of the State address in 2007, 2008, 2009, and 2010, demanding that she use her emergency powers to declare a moratorium on foreclosures.

When asked why she would not support a moratorium on foreclosures, Democratic Governor Jennifer Granholm said, “The banks won’t like it.”

Republican Senator Randy Richardville, in response to a demonstration at his home in Monroe, called us terrorists!

Only a mass movement will win a moratorium

March on the State Capitol in Lansing, on Sept. 15, 2008, demanding passage of SB 1306, which would enact a two-year moratorium on foreclosures

Many homeowners facing eviction have disabilities or family members with

disabilities

In December 2012, Detroit Eviction Defense, Moratorium NOW! Coalition, Jobs with Justice, Wayne County Commissioner Martha Scott, and Warriors on Wheels joined together to hold A People’s Hearing to Demand Housing Rights for People With Disabilities and to expose the policies of Wayne County, Fannie Mae, PNC Bank, Community Living Services in the attempt to evict Jerome Jackson

Detroit Eviction Defense helps Paramount Homeowners keep their homes

Eviction defense: In Detroit, stopping the dumpster stops the eviction. Here, the Garrett home was saved when the

dumpster was turned back.

Unions members from UAW Local 600 participate in eviction defense – January 2012

UAW Vice President Cindy Estrada joins anti-eviction rally in front the home of Alma Counts, an elderly homeowner with disabilities

Rev. Rowe speaks at an anti-eviction rally in front of a banner demanding that President Obama issue an executive order declaring a two-year moratorium on foreclosures and evictions.

Detroiters at the demonstration at the 2012 Democratic National Convention in Charlotte, NC,

the Wall Street of the South

Fannie Mae and Freddie Mac were seized by the U.S. Government in 2008, in order to prevent the complete collapse of Wall Street.

Under the control of the Federal Housing Finance Agency, Fannie and Freddie do most of the foreclosures and evictions in Detroit today, using our money!

After promising to attend the hearing, Fannie and Freddie officials backed out at the last minute!

Homeowners demonstrate at the Department of Justice on May 20, 2013, demanding an end to foreclosures, principal reduction on “underwater” loans, and the prosecution of the banks “too big to fail, too big to jail.”

On May 20, 17 people were arrested, on May 21, 10 more were arrested, and on May 22, another 7 activists were arrested. Not one bankster has been arrested for destroying our neighborhoods and our jobs through fraud and deceit, despite overwhelming evidence of crimes against the 99%.

Criminal Conduct of Banks & Rating Agencies• The Banks engaged in fraudulent and illegal activities

when they made predatory loans to Detroiters, often misrepresenting and lying about the loans that they underwrote.

• The ratings agencies, which are tools of the Banks, lied about the quality of mortgage-backed securities.

• Ratings agencies manipulate bond ratings, generating huge profits for the Banks

• The Banks engaged in a criminal conspiracy by manipulating the LIBOR rate.

• The Banks misrepresented (lied) the interest-rate swaps to Detroit and other public entities.

The banks have engaged in criminal conduct. They must be held accountable for the destruction of our neighborhoods and the City.

Public Act 436 provides for this:

141.1556 Criminal conduct contributing to receivership status. Sec. 16:

An emergency manager shall, on his or her own or upon the advice of the local inspector if a local inspector has been retained, make a determination as to whether possible criminal conduct contributed to the financial situation resulting in the local government's receivership status. If the emergency manager determines that there is reason to believe that criminal conduct has occurred, the manager shall refer the matter to the attorney general and the local prosecuting attorney for investigation.

Prosecute the Banks!

Demand a Moratorium on Debt Payments

While the banks and rating agencies are investigated for their criminal conduct and while the economic crisis for poor and working people continues – STOP PAYING THE BANKS

Ultimately, the municipal debt must be cancelled because the banks and ratings agencies engaged in misrepresentation or fraud in the sale of the bonds and other debt instruments.

Demand Billions in Reparations or Restitution from the Banks

The Banks owe us tens of billions of dollars in damages due to their illegal activities. Look around the great City of Detroit at the devastation that the Banks have caused.

The poor and working people of Detroit have been hit by Hurricane Wall Street. We demand restitution!

Organize!

Mobilize!

Upcoming actions• Saturday, June 1 - Demonstration at Chase Bank, March to Chase Bank to stop

eviction of Gregorio Martinez, gather at Patton Park• Monday, June 3, 9 am - Pack the court, Jury Trial for homeowner Angela Crockett,

36th District Court, Room 432, Judge Patricia Jefferson• Wednesday, June 5, Noon, Room 326, House Office Building, Lansing. Pack the

hearing on a package of bills to shorten the redemption period from 6 months to 60 days

• Thursday, June 6, 5:30 pm - Demonstration against Emergency Manager Kevyn Orr, Greater Grace Temple, 23500 West Seven Mile at Telegraph

• Sunday, June 9, 10:30 am – Motor City PrideMarch, March with the Moratorium NOW! / MECAWI contingent

• Monday, June 10, 5:30 pm - Demonstration against Emergency Manager Kevyn Orr, MLK King High School, 3200 E. Lafayette

ReferencesWebsites:

moratorium-mi.orgDetroitEvictionDefense.netDetroitDebtMoratorium.org

A Hurricane Without Water - Fannie Mae, Freddie Mac, and the Foreclosure Crisis in Metro Detroit, a report by Detroit Evcition Defense,

detroitevictiondefense.net/website/flyers/Hurricane-Without-Water-5-2013.pdf

Wasted Wealth - How the Wall Street Crash Continues to Stall Economic Recovery and Deepen Racial Inequity in America, homedefendersleague.org/2013/05/16/wasted_wealth/

Breakout• How can we grow the movement against foreclosures and evictions

and win housing as a human right in this country?

• How do we win a moratorium on foreclosures and evictions?

• How do rapidly engage the people of Detroit in the struggle to save our great city from the Emergency Manager and make the banks pay for the destruction of Detroit?

Then…

1930s Detroit, registering for benefits

…Now

2009 Detroit, registering for jobs fair

Hurricane Wall StreetAfter Hurricane Sandy devastated the East Coast, both the Federal Housing Finance Agency and the Department of Housing and Urban Development (HUD) declared a moratorium on foreclosures and evictions in the nine states where Sandy struck. “It's all too clear that families need more time to get back on their feet without having a foreclosure or eviction hanging overtheir heads,” said HUD Secretary Shaun Donovan.

Counting workers who can only find part-time jobs and those who have given up looking, Detroit’s real unemployment is at Depression levels. According to the Bureau of Labor Statistics, in May, 2013, the number of people with jobs in Metro Detroit actually fell over the last year, recording the largest decline of any major metro division in the country.

Mass Unemployment: Official Rate Real RateDetroit 18% 30%

Metro Detroit 10% 15%

Metro Detroit has also been devastated — by an “unnatural disaster” of mass unemployment, predatory lending, and mortgage banking fraud. We also need a moratorium on foreclosures!