Press Release | Outraged Homeowners, Clergy, Community Members make specific settlement demands and deliver report directly to 50 state-AG’s on how fixing foreclosure crisis will create one million jobs

The news that Iowa Attorney General Tom Miller has summarily dismissed New York Attorney General Eric Schneiderman from the executive committee of the 50 state Attorney General robo-signing and servicing settlement talks is just the latest example of the Obama Administration and their allied Attorneys General’s full court press for a settlement – any settlement – at the expense of real accountability for banks and real relief from homeowners.

The big banks’ dirty fingerprints are all over these latest actions. The Obama Administration and the Attorneys General cannot cave-in to the desire of Wall Street bankers to paper over their massive wrongdoing and throw homeowners under the bus.  Homeowners and former homeowners from Iowa, Illinois, Florida, New York and all 50 states must be put first.  For years homeowners have been the victims of systemic fraud and they have been waiting years for the banks to be held responsible.  As much as there is a need for relief, speed at the expense of quality cannot and will not be accepted.

“Scheiderman was the first AG to say that he wasn’t going to back down on the big banks, and he was the first AG kicked out of the investigation,” says Judy Lonning a member of Iowa Citizens for Community Improvement. “There’s no question who this decision favors.  It’s all about making life better for the big banks” Iowa CCI is an affiliate of National People’s Action and The New Bottom Line.

In order to for voters to believe that the Administration and the AG’s didn’t once again give in to bank pressure, The New Bottom Line has detailed the key component of a strong settlement that will hold big banks accountable, provide justice to millions of homeowners and get our economy working again, including:

  • not releasing any claims beyond the narrow scope of this limited investigation, including but not limited to origination, securitization and chain of title issues
  • widespread principal reduction for families, in particular low and moderate income families and people of color who have been disproportionately harmed
  • principal reductions that reach beyond banks’ portfolios of first and second lien mortgages
  • not requiring homeowners who obtain relief or damages from this settlement to give up their rights under other legal measures or settlements,
  • restitution for those who have already lost their homes due to the banks’ abusive and fraudulent practices
  • vigorous enforcement and accountability measures that ensures bank compliance and ensures that homeowners and former owners aren’t required to give up access to relief from any other settlements that may come in the future.

Starting this week, organizational members of The New Bottom Line are delivering copies of its recently released report, “The Win/Win Solution: How Fixing the Housing Crisis Will Create One Million Jobs.” The report details how by writing down all underwater mortgages to market value, the nation’s banks could pump $71 billion per year into the economy, create more than one million jobs annually, save families $6,500 per year on mortgage payments, and fix the housing crisis once and for all.  In addition to the report, The New Bottom Line will be delivering the thousands of petition signatures calling on the 50-state Attorney Generals to make widespread principal reduction part of any settlement with the big banks.   See a copy of the report here:

The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, labor unions, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, Alliance of Californians for Community Empowerment (ACCE), Industrial Areas Foundation of the Southeast (IAF-SE) and dozens of state and local organizations from around the country. Learn more at


Please everyone, we must support this man. He is our last hope on a national level.

Craft your own words or here’s a sample script to say when you call or to copy & paste when you email:

Thank you all at the NY AG’s office for standing up to predatory banks who are dispossessing, foreclosing, and evicting millions of American families by committing mortgage servicing fraud, securities fraud, modification fraud, felony land record fraud, property conveyance fraud, and fraud upon our courts across the nation.  The impact to our economy of tens of millions of American properties with clouded titles and defiled land records has not even begun.

Please continue this important work.  Please do not let the attacks and push back by the financial industry and their corrupt puppets in positions of power impede your office’s work aimed at protecting citizens from the criminal and predatory acts that have greatly harmed us all.

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