Thursday, April 30, 2009

Travesty! Mortgage Bankers Buy Senators - Foreclosure Amendment Dies

It was an amendment presented by Illinois Senator Dick Durban that would allow bankrupt homeowners to renegotiate their mortgage. The amendment would apply to homeowners who “are 60 days or more delinquent on payments for loans originated before January 1, 2009, and would set the maximum value of loans that qualify at $729,000.” Borrowers would also have to notify their lender 45 days before filing for bankruptcy and make an attempt to come to new terms before going to court.

In case you forgot, because I know we’re all more concerned with coughing into our elbows and washing our hands, there is still an economic crisis in this country. People are still losing jobs. As a consequence, folks can’t pay their bills, including their mortgage. This amendment would have helped people stay in their homes by making their terms and payments more manageable. The loan would still be in effect and the bank would get a monthly payment as opposed to expensive foreclosure costs and ultimate loss of income. The plan could have saved 1.69 million families and $300 billion in equity.

Sounds like a win for all, right? Well, the mortgage industry doesn’t see it that way because they bought enough Senators to kill the amendment 51-45. Per Ryan Grimm at the Huffington Post:

Earlier this week, Durbin concluded that banks that "frankly own the place."

How much did the Senate go for?

The banking and real estate industry has funneled roughly $2,000,000 into Landrieu's campaign coffers over her 12-year career, according to data from the Center for Responsive Politics. The financial sector is Nelson's biggest backer; he's taken $1.4 million from banks and real estate interests and another $1.2 million from insurance firms. Tester has fielded roughly half a million in his two years in office. Lincoln has taken $1.3 million from banking and real estate interests.

Carper has raked in more than $1.5 million. Baucus, chair of the finance committee, has been on the receiving end of $3.5 million over his career. Specter has hauled in more than $4.5 million and Johnson has gotten some $2.5 million.

As a public service, I offer the list of “No” votes. These folks care more about banks than they do about regular folks in a pinch:

Alexander (R-TN)

Barrasso (R-WY)

Baucus (D-MT)

Bennet (D-CO)

Bennett (R-UT)

Bond (R-MO)

Brownback (R-KS)

Bunning (R-KY)

Burr (R-NC)

Byrd (D-WV)

Carper (D-DE)

Chambliss (R-GA)

Coburn (R-OK)

Cochran (R-MS)

Collins (R-ME)

Corker (R-TN)

Cornyn (R-TX)

Crapo (R-ID)

DeMint (R-SC)

Dorgan (D-ND)

Ensign (R-NV)

Enzi (R-WY)

Graham (R-SC)

Grassley (R-IA)

Gregg (R-NH)

Hatch (R-UT)

Hutchison (R-TX)

Inhofe (R-OK)

Isakson (R-GA)

Johanns (R-NE)

Johnson (D-SD)

Kyl (R-AZ)

Landrieu (D-LA)

Lincoln (D-AR)

Lugar (R-IN)

Martinez (R-FL)

McCain (R-AZ)

McConnell (R-KY)

Murkowski (R-AK)

Nelson (D-NE)

Pryor (D-AR)

Risch (R-ID)

Roberts (R-KS)

Shelby (R-AL)

Snowe (R-ME)

Specter (D-PA)

Tester (D-MT)

Thune (R-SD)

Vitter (R-LA)

Voinovich (R-OH)

Wicker (R-MS)

If your Senator is on the list, please make note and fire their ass come next election.

Why? Because they voted in favor of these guys:

These guys care more about themselves than they do America. Their lack of vision and empathy is exactly why people are getting foreclosed on today. Until we are heard, they will continue to win in Congress.

Again, if your Senator is listed above, make note and remember when the next election rolls around. We hire them and we can fire them.


Scarecrow has a great analysis of this situation over at the Oxdown Gazette.

***UPDATE 2***

Bob Cesca offer’s this quality insight.


  1. Hmmm. I somehow always figured it would turn out this way. Well, I pay my mortgage before anything else, so dispite my troubles, it could not have helped me any anyway, but there are those who could have majorly benefitted from this. There they are with their expensive suits that would have fed a family for a couple of months, if not more. Sad really.

  2. Yes, I am extremely dismayed by this, as well as the rest of the bank bailout situation. I mean, we own them right? It's not only our tax dollars, but our deposits that keep them in business?