The NAACP expressed tentative satisfaction with the preliminary details which are available of the proposed settlement between the federal government, the states’ Attorneys General and the major banks.
“While we still have concerns about the millions of families who have lost their homes or are currently facing foreclosure, we commend the U.S. Department of Justice, the Department of Housing and Urban Development and the states’ Attorneys General for their dogged pursuit to genuinely help American homeowners of all races and ethnicities and see that justice is served,” said Hilary O. Shelton, the Director of the NAACP Washington Bureau and the Senior VP for Advocacy and Policy. “We are especially pleased that there will be an immediate influx of $25 billion in relief for those families who lost their homes in the reckless rush to mass foreclosures, as well as $17 billion for principal reductions, which is an important first step toward helping people whose houses have gone ‘under water’ to stay in their homes which in turn is a clear benefit not only to families, but also to neighborhoods, the economy and the nation.”
The NAACP is also pleased to learn that the agreement contains key reforms to address unfair mortgage servicing practices, outlaws “robo-signing”, and that the agreement does not preclude homeowners from bringing individual claims against banks nor does it shield financial institutions from prosecution related to criminal activities, fair lending lawsuits or claims based on mortgage securities violations. Director Shelton has testified before the U.S. Congress several times on behalf of the NAACP on the need to reform the mortgage servicing industry and to prevent this type of predatory lending from devastating American families again.
“In light of the disproportionate number of racial and ethnic minorities who have been adversely affected by the foreclosure crisis, this settlement is clearly, from the perspective of the NAACP, a step in the right direction,” said Mr. Shelton. “It is the hope of the NAACP that this first step will lead to further investigations and compensation for people who were targeted by predatory lenders because of their race, age, gender or any other characteristic.”
Mr. Shelton concluded his remarks by saying, “There still is much to do, and we will continue to encourage the Administration and other government officials to take additional bold actions to help protect additional American families from losing their homes. As we continue to lift up the problems facing our communities, we hope that concerns of others who represent areas that have been particularly hard hit, such as Kamala Harris, the Attorney General for California, are fully addressed. The NAACP pledges to continue to work with all of those involved in the settlement to target the relief on the communities which have been especially hard hit by the foreclosure crisis.”
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