WASHINGTON, Feb. 9, 2012 /PRNewswire-USNewswire/ -- The mortgage fraud settlement being announced today is a tiny drop in a big bucket. It does not do justice for the millions of homeowners who lost their homes or hold the banks fully accountable for their crimes. For homeowners who were defrauded and lost their homes, $2,000 is too little, too late. It is a paltry down payment toward full relief for homeowners.
Despite its flaws, the settlement announced today is stronger than it would have otherwise been because of grassroots groups and the courageous stance of Attorneys General from California, New York, Nevada, Delaware, and Massachusetts, who fought hard to bring more relief to homeowners and make sure that any settlement does not allow the banks to avoid accountability for fraudulent activity not yet investigated. Due to their work and the work of many allies, momentum is building toward broad-scale relief for homeowners.
This fight is not over. The Obama Administration needs to make sure that its task force goes the distance and delivers at least $336 billion in principal reduction on underwater mortgages and $50 billion in restitution for affected homeowners.
What happens next is critical. This is the President's chance to show he is a champion for the 99%.
Two leaders of The New Bottom Line are available for comment: George Goehl, Executive Director, National People's Action; and Gordon Whitman, Policy Director, PICO National Network.
The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, 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, and dozens of state and local organizations from around the country.
SOURCE The New Bottom Line