Foreclosures and Land Justice
Detroit People's Platform and Convention
Marygrove College, June 1, 2013
Moratorium NOW! Coalition to Stop Foreclosures, Evictions, and Utility Shutoffs
moratorium-mi.org
Housing is a Fundamental Human Right
Universal Declaration of Human Rights
Proclaimed by the United Nations General Assembly in Paris on 10
December 1948 in General Assembly resolution 217
Article 25, para 1
Everyone has the right to a standard of living adequate for the health
and well-being of himself and of his family, including food, clothing,
housing and medical care and necessary social services, and the right
to security in the event of unemployment, sickness, disability,
widowhood, old age or other lack of livelihood in circumstances
beyond his control.
Foreclosures destroy Detroit neighborhoods
Detroit’s Housing Crisis triggered by the
collapse of subprime loans
Characteristics of subprime loans:
 Interest rates 3% or more than conventional loans
 Variable interest rate that rests to a higher rate after a short
period
 Up to 8 times more profitable than conventional loans
 Massive fraud and deception in underwriting these loans
 Racist targeting of African American and Latino communities
by the banking industry
Subprime Loans – Racist & Predatory
 In metro Detroit, in 2005-2007, 62% of African
Amercans got subprime loans, compared to
28% for whites
 In Detroit, from 2004-2006, roughly 75% of
loans to African Americans were subprime
 From 2005 to 2009, Detroit had more than
67,000 foreclosures (1 in 5 Detroit homes)
 Detroit, in 1996, had the lowest foreclosure rate
of any major metroplolitan area in the US
Detroit’s Storm Surge of Foreclosures
Underwater Homes:
Metro Detroit is 50% higher than nation. Almost half of
Metro Detroit homeowners (43%) owe more on their mortgage than the house is
worth — higher by half than the national rate of 28% (Zillow Real Estate, Feb.
2013).
Foreclosure Rate:
Metro Detroit triples the national average HUD’s
“Spotlight” on Metro Detroit in January, 2013, reports 131,400 foreclosures since
April of 2009, or 7% of all units compared to a national rate of 2.4%.
Empty Homes:
45,000 foreclosed homes in Detroit are vacant. Of 70,000
foreclosed homes in Detroit, 65% are still vacant according to HUD. Empty houses
lead to blight and a downward spiral in home values and tax base.
It was not just Detroit
Wealth was lost across the board from the
Great Recession, but significantly more so
for people of color.
From 2005 to 2009, white median net
worth fell 16% to $113,149.
But net worth fell by
66% for Latinos to $18,359, and
53% for Blacks to $12,124.
- Wasted Wealth: How the Wall Street Crash Continues to Stall Economic Recovery and Deepen Racial Inequity in America
by the Home Defenders League, Alliance for a Just Society, and New Bottom Line
RATIO OF WHITE TO
BLACK WEALTH
1995. . . . . . . . . . . . 7-to-1
2004. . . . . . . . . . . 11-to-1
2009 . . . . . . . . . . . 19-to-1
RATIO OF WHITE TO
LATINO WEALTH
1995. . . . . . . . . . . . 7-to-1
2004. . . . . . . . . . . . 7-to-1
2009 . . . . . . . . . . . 15-to-1
Source: Pew Research Center, 2011
“Wells
Fargo Mortgage had an
emerging-markets unit that specifically
targeted Black churches, because it
figured church leaders had a lot of
influence
and
could
convince
congregants to take out subprime
loans.”
BETH JACOBSON, FORMER WELLS FARGO
LOAN OFFICER
- Wasted Wealth: How the Wall Street Crash Continues to Stall Economic Recovery and Deepen Racial Inequity in
America by the Home Defenders League, Alliance for a Just Society, and New Bottom Line
Banks Destroyed
Detroit's Tax Base
 From 2000-2010, Detroit
lost 237,500 people (New
Orleans lost 140,000 after
Katrina)
 From 2008 – 2011, the
State Equalized Value
(SEV) on Detroit real
estate declined by 29%
Banks & Ratings Agencies Role in Detroit
Own or Rate City of Detroit Debt
Foreclose on Detroit Homes or Rate Mortgages
Bank of America Merrill Lynch
Bank of America
JP Morgan Chase
JP Morgan Chase
Deutsche Bank
Deutsche Bank
US Bank
US Bank
Bank One
Bank One
Citigroup
CitiMortgage
SBS Financial
UBS Financial
UBS
Goldman Sachs
Goldman Sachs
Morgan Stanley
Morgan Stanley
Standard & Poor’s
Standard & Poor’s
Moody’s
Moody’s
Fitch
Fitch
Banks Engaged in a Criminal Conspiracy
According to a report issued by the Senate Permanent Subcommittee on
Investigations and chaired by Senator Carl Levin, the Wall Street banks
engaged in essentially a criminal conspiracy.
"Our investigation found a financial snake pit rife with greed,
conflicts of interest, and wrongdoing."
The crisis created by Wall Street destroyed communities and
triggered massive loss of jobs, erosion of the property tax base,
the reduction in services provided by cities and states, and many
other problems.
So what do We do?
We organize and fight!
What do We fight for?
• A moratorium on foreclosures and evictions
• A halt to individual homeowner evictions
• Unity with other struggles of the 99%
Tactics We use
Legislative action
• Push for ordinances, local, state and national laws supporting
a moratorium of foreclosures and evictions
• Campaign using rallies, marches and demonstrations,
educational forums, petition drives, social media, leafleting
Demand that President Obama and state Governors declare a
moratorium on foreclosures and evictions in the aftermath of
Hurricane Wall Street
Legal
• Packing the courtroom at eviction hearings
• Lawsuits
More tactics
Direct action
• Door-to-door canvassing and sound cars in the neighborhood
of the threatened eviction
• Demonstrations at banks, homes, government bodies,
landlords
Eviction defense - Vigils and creative tactics at the threatened home
Social media and phone calling campaign
Moratorium?
As a result of mass struggles during the Great Depression of the 1930s,
Michigan and 26 other states enacted moratoriums (moratoria) on all
home foreclosures, making it illegal for the banks to kick families out of
their homes when they couldn't pay the mortgage. The courts adjusted
loan payment terms to a fair rate for homeowners in hard economic
times.
Moratorium legislation introduced during this crisis
HR 4848 (Federal)- "The Save Our Neighborhoods Act of 2012"
• SB 1306 (Michigan), introduced in 2008
• SB29 (Michigan), introduced in 2009
• SF 1521 and HF 1886 in Minnesota
Moratorium legislation has yet to be passed
Moratorium NOW! demonstrated in Lansing at Democratic Governor Jennifer
Granholm’s State of the State address in 2007, 2008, 2009, and 2010,
demanding that she use her emergency powers to declare a moratorium on
foreclosures.
When asked why she would not support a moratorium on foreclosures,
Democratic Governor Jennifer Granholm said, “The banks won’t like it.”
Republican Senator Randy Richardville, in response to a demonstration at his
home in Monroe, called us terrorists!
Only a mass movement will win a moratorium
March on the State Capitol in Lansing, on Sept. 15, 2008, demanding passage of
SB 1306, which would enact a two-year moratorium on foreclosures
Many homeowners facing eviction have disabilities or
family members with disabilities
In December 2012, Detroit Eviction Defense, Moratorium NOW! Coalition, Jobs with
Justice, Wayne County Commissioner Martha Scott, and Warriors on Wheels joined
together to hold A People’s Hearing to Demand Housing Rights for People With
Disabilities and to expose the policies of Wayne County, Fannie Mae, PNC Bank,
Community Living Services in the attempt to evict Jerome Jackson
Detroit Eviction Defense helps Paramount Homeowners keep their homes
Eviction defense: In Detroit, stopping the dumpster stops the
eviction. Here, the Garrett home was saved when the
dumpster was turned back.
Unions members from UAW Local 600 participate in
eviction defense – January 2012
UAW Vice President Cindy Estrada joins anti-eviction rally in front
the home of Alma Counts, an elderly homeowner with disabilities
Rev. Rowe speaks at an anti-eviction rally in front of a banner demanding that President
Obama issue an executive order declaring a two-year moratorium on foreclosures and
evictions.
Detroiters at the demonstration at the 2012
Democratic National Convention in Charlotte, NC,
the Wall Street of the South
Fannie Mae and Freddie Mac
were seized by the U.S.
Government in 2008, in order
to prevent the complete
collapse of Wall Street.
Under the control of the
Federal Housing Finance
Agency, Fannie and Freddie
do most of the foreclosures
and evictions in Detroit
today, using our money!
After promising to attend the hearing, Fannie and Freddie officials
backed out at the last minute!
Homeowners demonstrate at the Department of Justice on May 20, 2013,
demanding an end to foreclosures, principal reduction on “underwater”
loans, and the prosecution of the banks “too big to fail, too big to jail.”
On May 20, 17 people were arrested, on May 21, 10 more were arrested, and
on May 22, another 7 activists were arrested. Not one bankster has been
arrested for destroying our neighborhoods and our jobs through fraud and
deceit, despite overwhelming evidence of crimes against the 99%.
Criminal Conduct of Banks & Rating Agencies
• The Banks engaged in fraudulent and illegal activities
when they made predatory loans to Detroiters, often
misrepresenting and lying about the loans that they
underwrote.
• The ratings agencies, which are tools of the Banks, lied
about the quality of mortgage-backed securities.
• Ratings agencies manipulate bond ratings, generating
huge profits for the Banks
• The Banks engaged in a criminal conspiracy by
manipulating the LIBOR rate.
• The Banks misrepresented (lied) the interest-rate swaps
to Detroit and other public entities.
Prosecute the Banks!
The banks have engaged in criminal conduct. They must be held
accountable for the destruction of our neighborhoods and the
City.
Public Act 436 provides for this:
141.1556 Criminal conduct contributing to receivership status.
Sec. 16:
An emergency manager shall, on his or her own or upon the
advice of the local inspector if a local inspector has been
retained, make a determination as to whether possible criminal
conduct contributed to the financial situation resulting in the local
government's receivership status. If the emergency manager
determines that there is reason to believe that criminal conduct
has occurred, the manager shall refer the matter to the attorney
general and the local prosecuting attorney for investigation.
Demand a Moratorium
on Debt Payments
While the banks and rating agencies are
investigated for their criminal conduct and while
the economic crisis for poor and working people
continues – STOP PAYING THE BANKS
Ultimately, the municipal debt must be cancelled
because the banks and ratings agencies
engaged in misrepresentation or fraud in the
sale of the bonds and other debt instruments.
Demand Billions in Reparations or
Restitution from the Banks
The Banks owe us tens of billions of
dollars in damages due to their illegal
activities. Look around the great City of
Detroit at the devastation that the Banks
have caused.
The poor and working people of Detroit
have been hit by Hurricane Wall Street.
We demand restitution!
Organize!
Mobilize!
Upcoming actions
• Saturday, June 1 - Demonstration at Chase Bank, March to Chase Bank to stop
eviction of Gregorio Martinez, gather at Patton Park
• Monday, June 3, 9 am - Pack the court, Jury Trial for homeowner Angela Crockett,
36th District Court, Room 432, Judge Patricia Jefferson
• Wednesday, June 5, Noon, Room 326, House Office Building, Lansing. Pack the
hearing on a package of bills to shorten the redemption period from 6 months to
60 days
• Thursday, June 6, 5:30 pm - Demonstration against Emergency Manager Kevyn
Orr, Greater Grace Temple, 23500 West Seven Mile at Telegraph
• Sunday, June 9, 10:30 am – Motor City PrideMarch, March with the Moratorium
NOW! / MECAWI contingent
• Monday, June 10, 5:30 pm - Demonstration against Emergency Manager Kevyn
Orr, MLK King High School, 3200 E. Lafayette
References
Websites:
moratorium-mi.org
DetroitEvictionDefense.net
DetroitDebtMoratorium.org
A Hurricane Without Water - Fannie Mae, Freddie Mac, and the
Foreclosure Crisis in Metro Detroit, a report by Detroit Evcition Defense,
detroitevictiondefense.net/website/flyers/Hurricane-Without-Water-5-2013.pdf
Wasted Wealth - How the Wall Street Crash Continues to Stall Economic
Recovery and Deepen Racial Inequity in America,
homedefendersleague.org/2013/05/16/wasted_wealth/
Breakout
• How can we grow the movement against foreclosures and evictions
and win housing as a human right in this country?
• How do we win a moratorium on foreclosures and evictions?
• How do rapidly engage the people of Detroit in the struggle to save
our great city from the Emergency Manager and make the banks pay
for the destruction of Detroit?
Then…
1930s Detroit, registering for benefits
…Now
2009 Detroit, registering for jobs fair
Hurricane Wall Street
After Hurricane Sandy devastated the East Coast, both the Federal Housing Finance Agency and
the Department of Housing and Urban Development (HUD) declared a moratorium on
foreclosures and evictions in the nine states where Sandy struck. “It's all too clear that families
need more time to get back on their feet without having a foreclosure or eviction hanging over
their heads,” said HUD Secretary Shaun Donovan.
Metro Detroit has also been devastated — by an “unnatural disaster” of mass
unemployment, predatory lending, and mortgage banking fraud. We also need a
moratorium on foreclosures!
Mass Unemployment:
Detroit
Metro Detroit
Official Rate Real Rate
18%
30%
10%
15%
Counting workers who can only find part-time jobs and those who have given up looking,
Detroit’s real unemployment is at Depression levels. According to the Bureau of Labor Statistics,
in May, 2013, the number of people with jobs in Metro Detroit actually fell over the last year,
recording the largest decline of any major metro division in the country.