The $25 billion multi-state morgage servicing settlement announced today has been been heralded by many as a landmark deal, but faith leaders in Orlando called it “a drop in the bucket.”
The deal which provides an estimated $17 billion for principal reduction to a small group of home owners and a reported $2,000 restitution payment for those who already lost their homes, is just a tiny fraction of the wealth stripped from families, especially families of color, the Federation of Congregations United to Serve, (FOCUS) said.
The group also noted that the settlement is tiny when compared to the more than $700 billion in total negative equity faced by homeowners.
Founded in 1992 and composed of 17 interdenominational community organizations serving low and moderate income families, FOCUS also slammed Attorney General Pam Bondi for her failure to stand up to the banks on behalf of Floridians.
“For over a year, clergy and homeowners in Florida have been calling upon our Attorney General Pam Bondi to stand up to the banks on behalf of Florida families,” said Rev. Errol G. Thompson, chair of PICO United Florida, and pastor of New Life Fellowship Missionary Baptist Church in Orlando, part of FOCUS. “We are disappointed that she did not aggressively advocate for Florida homeowners. AG Bondi spent the first months of these negotiations opposed to the inclusion of any principal reduction in this deal, even though two million Floridians are underwater on their loans. We believe Florida homeowners could have received more relief if she had fought for our homeowners like AGs in other hardest-hit states.”
“Once again, we see Tallahassee out of touch with the reality of ordinary Floridians like myself,” said Booker Perry, a leader with FOCUS, who lost his home of 40 years to foreclosure three days before Christmas. “Not only do we see the disappointing actions of our Attorney General, but we see our state legislators trying to pass HB 213, which would expedite the foreclosure process, and limit the rights’ of homeowners to have their day in court. We need our policy makers to stand up for the people, not the big banks.”
FOCUS and PICO (People Improving Communities Through Organizing) Florida, plan on continuing their fight to ensure that the current deal is just a downpayment on a much larger settlement that does justice for American homeowners harmed by the big banks’ criminal activity, the groups said.
