Middlesex County Decides Not to Honor Federal Detainers from ICE for Some Inmates
The Star-Ledger - July 10, 2014 by Sue Epstein - Middlesex County officials are no longer complying with a federal...
The Star-Ledger - July 10, 2014 by Sue Epstein - Middlesex County officials are no longer complying with a federal request to hold all immigrants suspected of being undocumented in the county jail for an additional 48 hours after their scheduled release.
In a policy change approved by Middlesex County freeholders last week and put into effect Tuesday, the detainee can be freed unless charged with a first- or second-degree crime, is identified as a known gang member and has been subject to a final order of removal by U.S. Immigration and Customs Enforcement.
Thomas Kelso, the Middlesex County counsel, said in a statement that people not meeting the serious offense criteria would continue to be released immediately after meeting the legal obligations.
"The policy was established after extensive review and consideration," Freeholder Director Ronald G. Rios said. "We need to be sensitive to the rights of individuals, but must protect our citizens from those with histories of violent crime. We believe that the policy that has been implemented in Middlesex County strikes a fair balance."
Although immigration rights groups applauded the change in policy, they contended that it did not go far enough.
Karina Wilkinson, co-founder of the Middlesex County Coalition for Immigrant Rights, said she wanted the county to stop honoring all 48-hour courtesy detainer requests from federal immigration authorities for county inmates.
"We are pleased to see Middlesex County moving in the right direction in ending their compliance with ICE detainers," Wilkinson said. "The county could still go further to respect the constitutional rights of everyone."
Wilkinson’s group began discussing the proposed policy change with county officials in December.
FIRST IN N.J.Wilkinson and Emily Tucker, an attorney for the Center for Popular Democracy, an advocacy group, said Middlesex County was the first county in the state to change its policy, joining more than 115 jurisdictions nationwide that have enacted similar changes. And of those 115, Wilkinson said, 90 have refused to honor any ICE detainers.
Tucker said the policy changes came on the heels of several federal court rulings that detainers are not legally binding, and that a federal court decision in Oregon said that honoring the detainers could open the jurisdiction to lawsuits.
"The courts have said ICE shows no probable cause to hold these inmates," Tucker said. "It is not the business of law enforcement to enforce immigration orders, it is the federal government’s job. The counties should not be holding anyone on behalf of ICE without a warrant."
Wilkinson said that in 2012, when a federal program known as Operation Secure Communities began in New Jersey, there were 330 detainers issued for inmates at the Middlesex County jail, making the county third in the state behind Essex and Hudson counties in the number of requests issued.
Tucker said the coalition of organizations that pushed Middlesex County to change its policy is working with Essex and Hudson counties in an effort to reach a similar outcome.
According to the ICE website, when a suspected undocumented immigrant is arrested the FBI forwards the fingerprints to the Department of Homeland Security to check against its immigration databases.
If the check shows that a person is undocumented or otherwise removable because of a criminal conviction, a 48-hour detainer is issued to the local jurisdiction.
Bryan Cox, a spokesman for ICE, said the agency remained "committed to working with our law enforcement partners and making our communities safer by protection public safety and national security, and the integrity of the immigration.
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Why Is My Bank Teller Trying to Sell Me a Credit Card I Don't Want?
Mother Jones - April 9, 2015, by Josh Harkinson - Until recently, your typical banker was someone whose main job was to...
Mother Jones - April 9, 2015, by Josh Harkinson - Until recently, your typical banker was someone whose main job was to accept deposits, cash checks, and dispense basic financial advice. But now that job hardly exists anymore—at least not as we once knew it. Today's front-line bank workers—tellers, loan interviewers, and customer-service reps—earn far too little money to be considered "bankers" in the traditional sense of the word. And though they still collect and dispense money, their main job involves hawking credit cards and loans you probably don't need.
Many rank and file bank workers are seeing lower wages and more pressure to hawk financial products.Rank-and-file bank workers are both causes and symptoms of America's widening economic divide, says Aditi Sen, the author of Big Banks and the Dismantling of the Middle Class, a report released today by the Center for Popular Democracy. Based on union organizer interviews with hundreds of workers in the industry, Sen found that front-line bank workers often face quotas for hawking potentially exploitive financial products, often to low-income customers, even though the workers themselves barely qualify as middle class. "We can definitely see bank workers as part of the same continuum of issues facing all low-wage workers," she says.
Banks are, of course, notorious for squeezing profits from their employees and customers. In 2011, the Federal Reserve Board fined Wells Fargo $85 million for forcing workers to sell expensive subprime mortgages to prime borrowers. And in late 2013, a judge slapped Bank of America with a $1.27 billion penalty for its "Hustle Program," which rewarded employees for producing more loans and eliminating controls on the loans' quality.
Yet, by some accounts, these sorts of practices are getting worse. In a 2013 study by the union-backed Committee for Better Banks, 35 percent of low-level bank workers surveyed reported increased sales pressure since 2008, and nearly 38 percent stated that there was no real avenue in the workplace to oppose such practices. One HSBC bank employee, according to the study, reported that workers who failed to meet their sales goals had the difference taken out of their paychecks.
The increasing sales pressure comes at a time when the fortunes of the banks and their low-level workers have diverged widely. Bank profits and CEO pay have rebounded to near record levels while wages for front-line workers are stuck in the gutter.
And that's not all. Nearly a quarter of bank workers surveyed in 2013 reported that their benefits had been cut since 2008, and 44 percent reported that their medical and life insurance was inadequate. A recent University of California-Berkeley study found that 31 percent of bank tellers' families rely on public assistance at an annual cost of $900 million to taxpayers.
There are several factors in all of these woes. Mergers and consolidation have led some retail banks to shutter branches and lay people off. Many banks have outsourced customer-service jobs to overseas call centers, and the rise of internet and smartphone banking has further slashed demand for flesh-and-blood tellers. In other words, it's basically the same mix of foreign and technological competition that has concentrated wealth and depressed middle-class wages throughout the economy. And it means that banks can get away with paying people less, and demanding more in return.
But now the Committee for Better Banks is trying to cultivate common cause between low-level bank workers and the customers they're forced to target. The interviews featured in the new report show that many bank workers strongly oppose the sales quotas as unfair and exploitive. For instance:
A teller at a top-five bank reports that she is subject to stringent individual goals on a daily basis: If she does not make three sales-points (selling someone a new checking, savings, or debit card account) each day in a month, she gets written up.
Customer service representatives at a call center for another major bank report that each individual has to make 40 percent of the sales of the top seller to avoid being written up. Selling credit cards counts more towards sales goals than helping someone open up a checking account or savings account, thereby crafting skewed incentives based on the profitability of a product sold, not on how well it matched the needs of a customer.
"There was one guy who had three credit cards and I ended up pushing a fourth on him, even though I knew that was not good for him.""A lot of time people would call and already have one, two, or three credit cards with us," says Liz, a member of the Committee for Better Banks who worked in a Bank of America call center for five years and did not want to give her last name. "They might have a situation where they are low on funds and we end up pushing another credit card on them. There was one guy who had three credit cards and I ended up pushing a fourth on him, even though I knew that was not good for him; he would just be in more debt. But if didn't, I would end up being put in a reprimand."
On Monday, members of the Committee for Better Banks will converge in Minnesota's Twin Cities to deliver a petition to bank offices demanding better pay and more stable work hours for rank-and-file workers, and an end to sales goals that "push unnecessary products on our customers."
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La campaña anti-Trump señala a empresas que apoyan su política
La campaña anti-Trump señala a empresas que apoyan su política
La protesta popular contra las políticas antiinmigrantes y antitrabajadores de Donald Trump se amplía y desde ayer ha...
La protesta popular contra las políticas antiinmigrantes y antitrabajadores de Donald Trump se amplía y desde ayer ha empezado a tener en su objetivo a empresas que hacen posible su agenda con sus inversiones o alineándose con la Administración.
El Center for Popular Democracy y Make the Road New York han lanzado una campaña contra nueve empresas entre las que están JP Morgan Chase, Wells Fargo, Disney, Goldman Sachs, IBM, Uber, Blackstone y Boeing. Algunas están en la lista por hacer donaciones a la inauguración de la actual presidencia o estrechar relaciones con la Administración. Otras por ser inversores en las empresas que construyen y operan cárceles privadas para inmigrantes.
Lea el artículo completo aquí.
Arpaio Meets Virtually No DOJ Criteria for a Pardon
Arpaio Meets Virtually No DOJ Criteria for a Pardon
President Donald Trump’s unorthodox, dysfunctional behavior and decision-making may lead him to violate a whole slew of...
President Donald Trump’s unorthodox, dysfunctional behavior and decision-making may lead him to violate a whole slew of new norms if he announces a pardon Tuesday night, as he has said he might, for former Arizona Sheriff Joe Arpaio. Legal analysts and Dept. of Justice guidelines reviewed by TYT suggest that granting a presidential pardon to the controversial former sheriff would go against virtually every recommended criteria the DOJ has for appropriate pardon candidates.
Read the full article here.
New York City Increases Its Resistance to Federal Entreaties on Foreign-Born Detainees
The New York Times - December 5, 2013, by Kirk Semple - For years, New York City correction officials routinely...
The New York Times - December 5, 2013, by Kirk Semple - For years, New York City correction officials routinely provided federal immigration authorities with information about foreign-born detainees in their custody. The city, in response to federal requests, would transfer many of those detainees into federal custody, often leading to their deportation.
But a series of laws passed by the City Council over the past two years sought to restrict this cooperative agreement.
And according to new city statistics, the laws appear to be achieving their goal, prompting celebration — albeit guarded — among immigrants’ advocates.
From July, when the most recent of the restrictive laws went into effect, to September, city officials responded to 904 federal hold requests, known as detainers, according to the statistics. Of those detainers, the city declined to honor 331, or 37 percent.
In contrast, until the laws were passed, the city customarily honored every detainer, according to city officials.
“We feel good about the impact that this legislation has had because it has stopped the deportation of a lot of New Yorkers,” Javier H. Valdes, co-executive director of Make the Road New York, an advocacy group, said on Thursday.
“Our hope,” he said, “is that with the new administration we can increase the number of New Yorkers who will not be turned over to immigration.”
Even with the new city laws, New York’s restrictions are still not as tight as those of other major cities, like Chicago and Washington, advocates said.
Cooperation between local governments and federal immigration authorities has been a deeply contentious issue around the United States.
Some jurisdictions, convinced that the federal government has not done enough to enforce immigration laws, have increased their role in immigration enforcement. But others, concerned about the impact of deportations on their communities, have tried to put distance between themselves and the immigration machinery of the federal government.
Much of the recent debate has surrounded the federal Secure Communities program. The initiative allows Homeland Security officials to more easily compare the fingerprints of every suspect booked at a local jail with those in its files. If they find that a suspect is a noncitizen who is in the country illegally or has a criminal record, they may issue a detainer.
The Secure Communities program, a cornerstone of the Obama administration’s immigration enforcement strategy, has been vehemently opposed by some elected officials around the country, who have sought to limit their jurisdictions’ participation.
In November 2011, the City Council passed a law that narrowed the range of detainers the city would honor. Among other terms, the law prevented correction officers from transferring immigrants to federal custody if the inmates had no convictions or outstanding warrants, had not previously been deported, were not suspected gang members or did not appear on a terrorist watch list.
The effect on the detainer system was immediate: Correction officials went from routinely honoring all detainers to, according to the recently released statistics, about 75 percent of them.
In February, the Council imposed additional restrictions, including blocking detainers for immigrants facing all but the most serious misdemeanor charges, like sexual abuse, assault and gun possession.
Under these new guidelines, the percentage of detainers the city rebuffed rose to about 37 percent from about 25 percent. The rates may have even been higher had the federal government not concurrently altered its own detainer policy, limiting the range of immigrants it would seek custody of.
Still, immigrant advocates said they would press for more restrictions and have reoriented their lobby toward Mayor-elect Bill de Blasio, who has vowed to end the city’s cooperation with federal immigration detainers except for detainees convicted of “violent or serious felonies.”
Newark, San Francisco and Santa Clara, Calif., are also among the cities that have more restrictive detainer policies than New York, according to Emily Tucker, staff attorney at the Center for Popular Democracy, an advocacy group in New York.
“New York City can do much better than these numbers show we are doing at the moment,” she said.
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Walter Isaacson to sit on City Planning Commission, and other area political news
Walter Isaacson to sit on City Planning Commission, and other area political news
Isaacson to sit on City Planning Commission Author and former CNN CEO Walter Isaacson may be only a part-time resident...
Isaacson to sit on City Planning Commission
Author and former CNN CEO Walter Isaacson may be only a part-time resident of New Orleans, but Mayor Mitch Landrieu has appointed him to the City Planning Commission.
Isaacson, 64, who now heads the Aspen Institute in Washington, D.C., will replace lawyer Alexandra Mora in January.
The City Council approved the appointment Thursday.
“I'm deeply honored and excited about the prospect of helping to protect the city and plan for its future,” said Isaacson, who splits his time between New Orleans and Washington.
Isaacson, a New Orleans native, is also a former editor of Time magazine and the author of books about Steve Jobs, Albert Einstein, Benjamin Franklin, Henry Kissinger and the "group of hackers, geniuses and geeks (who) created the digital revolution."
He was vice chairman of the Louisiana Recovery Authority, the agency that oversaw the state’s rebuilding after Hurricane Katrina. He is also on the boards of Tulane University and the New Orleans Tricentennial Commission.
Landrieu also appointed Jason Hughes to the commission to fill the unexpired term of Nolan Marshall III, who left New Orleans in October for a job in Dallas.
Hughes’ tenure will end in 2021, while Isaacson's will end in 2023.
City Council condemns anti-Muslim rhetoric
At the end of a heated election season that has included calls from Republican presidential nominee Donald Trump to ban Muslims from entering the country, the New Orleans City Council approved a resolution Thursday condemning anti-Muslim rhetoric.
The resolution is part of a national effort by the liberal group Local Progress to get similar measures passed across the country
"We have seen dangerous levels of anti-Muslim and racist rhetoric as well as a rise in hate crimes," said Councilwoman LaToya Cantrell, a board member of Local Progress. "This rhetoric and violence is not only a threat to our communities but also a direct threat to us as U.S. citizens."
The resolution passed 6-0, with Councilman Jason Williams absent.
"Love really does trump hate," Cantrell said, echoing a slogan used by Democratic presidential nominee Hillary Clinton.
The resolution says the council "condemns all hateful speech and violent action directed at Muslims, those perceived to be Muslims, immigrants and people of color," "categorically rejects political tactics that use fear to manipulate voters or to gain power or influence" and "reaffirms the value of a pluralistic society, the beauty of a culture composed of multiple cultures, and the inalienable right of every person to live and practice their faith without fear."
Clinton is expected to easily carry New Orleans in Tuesday's election.
Jeff council backtracks, OKs disputed contract
The Jefferson Parish Council on Wednesday suspended a disputed ordinance in order to keep the parish's Carnival parades rolling in 2017, hiring a company owned by a local political consultant to build the grandstands from which revelers will cheer on the annual spectacle.
The council voted 7-0 to suspend a ban passed a year ago that would prevent parish contracts from being awarded to any firm partially owned by a consultant who had represented an elected official during a prior election.
That ordinance, which was proposed by Councilman Chris Roberts last November, is under challenge in federal court.
Buisson Creative, a firm owned by political consultant Greg Buisson, was the only firm to respond to the most recent request for proposals to provide the grandstands for the upcoming Carnival season.
Because of the pending legal challenge and the fact that no other proposals for the work were submitted, the council suspended the ban and also voted 6-0 to negotiate a contract with Buisson Creative. Roberts abstained from that vote.
The ordinance was controversial because some saw it as being aimed specifically at Buisson, who had just worked for Roberts’ political opponent in the prior election cycle.
Roberts dismissed the criticism, saying the ordinance was a good-government measure designed to prevent conflicts of interest by making sure those who worked on political campaigns did not then get contracts with parish government.
BGR: Its report to save taxpayers millions
The Bureau of Governmental Research put out a release last week taking credit for uncovering an issue that it said is "expected to yield millions in savings to taxpayers."
On Oct. 27, an Orleans Parish Civil District Court judge ruled in the city's favor on how to apply the formula for calculating pension benefits for city firefighters. The BGR release said the "matter stemmed from a 2013 report in which BGR revealed that the New Orleans Firefighters' Pension and Relief Fund was applying the benefits formula on more generous terms than those spelled out in state law."
The court order directs the fund "to apply the formula as set forth in law," the research group said.
"According to a pension consultant's estimate, if the formula were properly applied to current employees alone, taxpayers would save roughly $1.3 million per year. But under the judgment, the formula is to apply to current retirees as well, increasing the potential savings," BGR said.
By Jessica Williams, Jeff Adelson, Chad Calder and Bruce Eggler
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Fed official explains why he stopped trying to predict the future
Fed official explains why he stopped trying to predict the future
JACKSON HOLE, WYO. -- The world's economic elite gathered here for an annual symposium sponsored by the Federal Reserve...
JACKSON HOLE, WYO. -- The world's economic elite gathered here for an annual symposium sponsored by the Federal Reserve Bank of Kansas City last week to debate the strategies central banks should employ to safeguard the global economy. We sat down with St. Louis Fed President James Bullard to chat about when he might be ready for a rate hike, the limits of his powers and why predicting the future is futile.
The transcript below has been edited for length and clarity.
Wonkblog: Let’s start with the question of the day: Which month looks good to you for a rate hike?
Bullard: Actually, I’m agnostic on this. Our new framework calls for one, and only one, and then we go on pause for a bit. It’s not critical to me exactly when we make that move, so we wouldn’t have to go at any particular meeting.
I do like to move on good news, so if we have good information, and we’re at a meeting, it might be a good opportunity to go ahead and make that move. But what’s different about what I’m saying is I’ve got a real flat interest rate path — much closer to the markets’ interest rate path. I don’t have this march upward of 200 or 250 basis points.
If only one more rate hike is really needed to get to the Fed’s neutral stance, why does it matter if you move in September, December or next year? You would be willing to wait until 2017?
Certainly, I just don’t feel that there’s any urgency when you’ve got the framework I’m talking about.
[The Federal Reserve is debating how to fight the next recession]
So explain your framework for us.
What we wanted to do is break down this idea that we’re really certain about where the economy is going in the medium- and long-run. What most models do is they have something called a steady state, which is really an average of all the variables in the past: You look at the unemployment rate, and you take the average unemployment rate. You look at interest rates and take the average past interest rate. You look at inflation, growth — you take averages of the past, and you call those your normal values.
As you go along, you expect all your variables to go back to their normal values. That’s what we’ve been doing. That’s the old framework. And what we’re saying is we don’t like that framework anymore because it suggests we have a lot more certainty about where the economy is going than we really do.
These averages of these variables from the past — they can sometimes be high and sometime be low. You can be in a configuration where these things are low, and then you can switch to another configuration when they’re high. Then they’re high for a while, and you switch back to low. What you have to do is make policy given whatever regime you’re in.
We think that the regime that is dominant right now is a slow-growth regime that is characterized by low productivity growth and very low real returns on short-term government debt around the world. We think these regimes are persistent. These things aren’t changing any time soon. And because of that, we just have to take them as given, for now anyway.
Given that in this framework, it’s difficult to tell when the regime is shifted, how do you know that you’re not setting monetary policy for a regime that’s already expired?
You’re gonna know when the regime switches. These very low real rates of return on government debt, if you look at the ex-post return on one-year Treasurys, it’s about -135 basis points right now. If that starts to go up rapidly, we’re gonna know and we’re going to take note of it. We’re gonna say, “Aha! Our regime has changed, and we’re going to have to change monetary policy accordingly.”
But for forecasting purposes, I wouldn’t say that I’m expecting that to happen all of a sudden. It’s been that way for at least the last three years, and if you look at real rates of return, they’ve declined for the last 30 years. It’s also very clear that we’re in a very low productivity environment.
It’s not that you go to sleep. You stay alert to the possibility that the regime can change in the future, and probably will change at some point in the future. It’s just not good to be predicting that it’s going to change.
Federal Reserve Chair Janet Yellen's speech here laid out the argument that the Fed is not out of ammunition to fight the next recession. Do you agree with that?
I loved the speech. She made the case that we still have quite a bit of bandwidth to handle problems if they arise in the next couple of years, and I very much agree with that. But at the same time, it’s always good to be studying other possibilities. I actually have papers on nominal GDP targeting, so I think that’s an interesting topic. It's probably not ready for prime time, but I’m a believer in research.
What led you to the support for this regime-based framework. Can you talk about the evolution of your thinking?
Maybe some frustration with the dot plot. We were saying we were going to have to raise rates fairly aggressively over the forecast horizon in order to keep the economy on track, and that wasn’t materializing. We had that forecast for several years, and it wasn’t really working. For that reason, I wanted to get a different way to think about what we were doing.
We’ve only moved once on the policy rate, and markets are saying maybe one more move this year. That would only be one move per year — that’s really not normalization. If you’re going to say it’s going to take 10 years to get back to a normal value, you’re really saying we’re not going back there. That’s way longer than any sort of business cycle than you can reasonably talk about.
How do you feel about the division between monetary and fiscal policy currently? Do you feel it’s time to pass the baton here?
I do think that. And I think the regime framework is good for laying that out for people. Part of the story is that the recession has been over for seven years. The unemployment rate has gone down below 5 percent. Inflation is low, but we don’t think it’s that low, and it’s kind of coming up to target.
So the cyclical dynamics are all done. The dust has settled, I guess is the way I would put it.
You might say the dust has settled, and I don’t like what I see. But for that, you can’t solve that with monetary policy. You’ve got to have things that are going to increase productivity in the economy. You’ve got to make the economy more efficient. New ideas, better technology, better diffusion of technology, better human capital, better skills match — I think it’s a lot of small things that you have to do right to get an economy humming. The story of let’s keep interest rates low and that will help us, that’s kind of over for now.
Related to that are the demonstrations by Fed Up and the Center for Popular Democracy that were held Thursday. Any additional thoughts on their point of view, that there’s still more that the Fed can do?
I love the people that come here. I think they’re a really great slice of the American workforce. It’s really nice that they’re willing to take time out of their lives to come out here and talk to us boring central bankers.
They want to talk about low nominal interest rates as solving difficult problems of how our labor markets operate and how our labor markets are unfair to many people. I would like them to think about the German labor market reforms that were done over the last decade. Germany had very high unemployment for a long time. It was an endemic problem, and then they did these reforms and got their unemployment rate cut in half — even though Europe went through a double-dip recession during that period.
It showed to me that there are ways to attack these problems, and I think we could do that in the U.S. I think they should refocus their efforts on the labor secretary, so we could get those kinds of reforms going. People aren’t even talking about that.
By Ylan Q. Mui
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Veepstakes: Julian Castro moves to shore up a potential weakness
Veepstakes: Julian Castro moves to shore up a potential weakness
The controversial federal program that clouded the HUD secretary's VP prospects gets a timely overhaul. Julian Castro’s...
The controversial federal program that clouded the HUD secretary's VP prospects gets a timely overhaul.
Julian Castro’s Housing and Urban Development Department announced significant changes Thursday to a federal program that sold delinquent mortgages to private investors — a move that mollified progressive critics who threatened to undermine his vice presidential prospects.
With three weeks remaining until the Democratic convention and Hillary Clinton’s campaign narrowing down its list of potential ticket mates, the U.S. housing agency said it is changing a controversial program to give delinquent homeowners a new chance to reduce the principal they owe on their mortgage. The changes also prohibit financial firms from giving up on trying to sell or recuperate decrepit properties the businesses would rather walk away from.
As HUD secretary since 2014, Castro had been under attack from by at least 11 Latino and populist groups for his oversight of the department’s “distressed asset stabilization program,” which sold struggling homeowners’ mortgages to hedge funds. Castro, they alleged, failed to deliver on a HUD promise to sell more mortgages to non-profit community groups instead of financial firms.
Started in 2012, the program’s two stated objectives are to help struggling residents while also clearing billions of dollars of bad debt off the agency’s books. But liberals have argued the program undermines homeowner protections, especially for people in low-income neighborhoods, as HUD sold mortgages to the same financial firms that exploited borrowers in the lead-up to the 2008-2009 recession.
The changes came not long after Castro surfaced on Clinton's short list of vice presidential candidates — along with Sens. Tim Kaine and Elizabeth Warren — leading to immediate speculation about the HUD secretary’s political motivations.
Warren was among those calling for major reforms to the program.
“Given that Secretary Castro has only spent a brief time on the national stage, the black mark caused by the distressed asset issue stands out prominently on his record,” said Isaac Boltansky, director of policy research for Compass Point Research & Trading in Washington. He covers housing policy.
“There is no question that the left’s attack of this program generally — and Secretary Castro specifically — lowered the odds of him being tapped,” he said.
As severely-delinquent mortgages accumulated after the recession, the Federal Housing Administration, a division of HUD, needed to reduce debt liabilities to the government.
Under the program, delinquent loans held by banks but insured by the FHA are sold to new buyers, including hedge funds, private-equity firms and non-profit community groups. Through May 2016, HUD sold more than 105,000 FHA-insured loans valued at $17 billion, according to a report by the National Consumer Law Center.
Castro has not said much publicly about the program, which in recent weeks erupted into a politically-charged issue for the Obama administration, said sources with familiar with the situation.
The program was supposed to give struggling homeowners another chance to avoid foreclosure. But researchers following the program said that financial companies have used it to circumvent homeowner safeguards.
“If you have an option of selling your loan through [the] DASP, then you don’t have to go through state foreclosure procedures that have the consumer protections in them and actually help enforce FHA rules,” said Geoff Walsh, author of NCLC’s report. He previously worked as an attorney with Vermont Legal Aid, Inc. and specialized in housing, consumer and bankruptcy areas. “A lot of damage has been done,” he said.
The liberal groups held Castro responsible for the program’s flaws, even though it started before his tenure at HUD. But the groups immediately applauded HUD’s new changes to the program that they had advocated for.
Their website attacking Castro was still live on Friday, though it will be updated to reflect HUD’s changes, said Matt Nelson, managing director of Presente.org, which claims to be the largest U.S. online Latino organizing group.
Housing experts acknowledged that pressure from advocacy groups — which used the issue to question Castro’s progressive credentials — played a role in the revisions.
“But for his potential to be vice president, these changes probably don’t get made,” said Edward Gorman, head of community development for the National Community Reinvestment Coalition, whose members include nonprofits that buy DASP loans.
“It was the specific targeting of the secretary on this issue and the gathering of liberal senators in support that caused the [Obama] administration and the secretary particularly to take another look at this issue,” he said. “This will be fodder for Republicans. This will become a political issue.”
For Castro, it had already metastasized into an issue that clouded his vice presidential prospects. Widely regarded as one of the Democratic Party’s rising Latino stars, the former San Antonio mayor was targeted by a coalition of activist groups that recognized the leverage afforded to them by a presidential primary fight colored by questions about Clinton’s ties to Wall Street and Bernie Sanders’ populist, anti-Wall Street rhetoric.
“HUD has continually enhanced the DASP program by making improvements before every sale since 2014,” an agency spokeswoman said in a statement. “As a result, tens of thousands of families have been able to remain in their home or avoid foreclosure through the program.”
Maurice Weeks, a housing staffer at the Center for Popular Democracy, one of the groups supporting the attack on Castro’s handling of the DASP, said he is grateful to see the changes HUD announced. But his group will want to make sure the changes actually result in better conditions for communities.
“It became a political problem for Castro since he’s the head of that department,” Weeks said. “We didn’t set out to determine if Castro was a good VP candidate or not. Our focus was on homeowners across the country.”
By PATRICK TEMPLE-WEST
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It’s Time to Put the Brakes on Runaway Drug Prices
It’s Time to Put the Brakes on Runaway Drug Prices
The movement against ICE is born at the grassroots. Groups like Indivisible Project and the Center for Popular...
The movement against ICE is born at the grassroots. Groups like Indivisible Project and the Center for Popular Democracy have also called for defunding ICE.
Read the full article here.
School Voucher Opponents Ready for Fight as Bill Advances
The Tennessean - March 3, 2015, bt Jason Gonzales - Anti-voucher groups are digging in for a fight as the second of two...
The Tennessean - March 3, 2015, bt Jason Gonzales - Anti-voucher groups are digging in for a fight as the second of two almost identical voucher bills easily passed the House Education and Planning Subcommittee by a 7-1 vote. State Rep. Kevin Dunlap, D-Rock Hill, was the lone dissenter.
The proposed legislation that passed Tuesday is sponsored in the House by state Rep. Bill Dunn, R-Knoxville, and has considerable backing from pro-voucher groups and legislators alike. A separate bill sponsored by state Sen. Brian Kelsey, R-Germantown, narrowly passed the Senate Education Committee.
The legislators hope to provide low-income students a voucher program to pay for private school tuition with a state-funded scholarship. The program targets students eligible for free and reduced-price lunch who attend a public school ranked in the bottom 5 percent of the state in academic achievement.
Several groups have publicly voiced opposition to the bills, including the Tennessee Education Association. The teacher's union has been against proposed voucher legislation for years. In past years, opponents have been successful in their fight, as bills have continually struggled in the House and Senate finance committees.
Between the two bills, Haslam said the administration agreed to fund the measure from Dunn and state Sen. Todd Gardenhire, R-Chattanooga. On supporting the Dunn-Gardenhire bill versus Kelsey's, Haslam said Tuesday morning the bill most resembles the one he supported last year.
Kelsey is a sponsor of both bills, and House Majority Leader Gerald McCormick, R-Chattanooga, recently told The Associated Press the plan could survive in the House this year.
Volunteers with Tennesseans Reclaiming Educational Excellence were the visible face Tuesday of the anti-voucher group at Legislative Plaza. They were there to pass out brochures and stickers that said, "No School Vouchers."
Anne Marie Farmer, a volunteer with the public education advocacy group, said the group argues vouchers don't have the desired effect in a time when schools need more resources. The group also contends vouchers only give private schools a choice, not parents.
"We don't believe it is an effective way to raise student achievement," she said
Americans United for Separation of Church and State and Tennessee Transgender Political Coalition have also voiced opposition to the bill.
A recent poll by the Public Interest and the Center for Popular Democracy, however, says Tennesseans are not concerned with school choice. The TEA sent out a Tuesday media release weighing in on the poll.
"When Tennesseans were asked to rank important issues facing the state's public schools, school choice came in dead last," said Barbara Gray, Arlington Community Schools administrator and TEA president, in the release. "This poll shows that legislators need to redirect their attention to the issues that really matter to Tennesseans, like parental involvement, over-emphasis on standardized testing and cuts to programs like physical education and music."
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4 days ago
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