Baldwin Stands Up for Middle Class Homeowners

Tells Attorney General Consumers Must Have Path to Recover Losses

Congresswoman Tammy Baldwin (D-WI) today led colleagues in standing up for millions of homeowners across the nation who were victims of fraudulent practices by the nation’s biggest banks. In a letter to U.S. Attorney General Eric Holder concerning the ongoing settlement talks between state attorneys general, federal regulators, and large mortgage servicers, Baldwin, joined by 24 colleagues, opposed any settlement to grant mortgage servicers blanket immunity for wrongdoing related to illegal mortgage and foreclosure practices.

“It is simply wrong that Wall Street was allowed to recklessly endanger our economy and has had no required recompense while millions of Americans have lost homes and savings and our national economy was brought to virtual collapse,” said Congresswoman Baldwin. “Those families who were victimized by unscrupulous and illegal activities by banks and mortgage companies must be allowed to sue to recover their losses,” she said.

Due to wrongdoing on the part of mortgage lenders, millions of homeowners now find that the mortgage on their homes is greater than the assessed value of those homes. Consequently, many of these homeowners now find themselves in greater debt, bankruptcy, or foreclosure. In her letter to Holder, Baldwin wrote, “We believe that the American public deserves a full investigation into these claims and that those responsible are held to account for their actions.”

Baldwin is angered by the stark contrast between the status of Main Street Americans and Wall Street executives. “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,” she said.

“It’s outrageous that while banks and other financial institutions were rescued on the premise that they were ‘too big to fail,’ they are now being rewarded as being ‘too big to prosecute,’” Baldwin said.

The $20 billion proposed settlement between the state attorneys general, federal regulators, and large mortgage servicers pales in comparison to the roughly $750 billion in total losses nearly 15 million mortgage holders now face. “And homeowners are not the only financial victims of the mortgage servicers’ fraudulent behavior;” Baldwin said, “state pension beneficiaries, including teachers, firefighters, and police, were also cheated out of critical investments due to fraudulent sales of mortgage-backed securities.”

Baldwin told Holder that, “If blanket immunity is granted to mortgage servicers their appalling behavior goes unpunished and they will continue to behave as if they are above the law…The American principle of equal justice under the law must apply to all, not just some.”

SOURCE: http://tammybaldwin.house.gov/

Copy of letter below…

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4closureFraud.org

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Mortgage Fraud Proposed Settlement Letter to AG Holder 11.1.11