Joining the Corporate Bail-Out Receiving Line
by Carolyn Patmon
This article previously appeared in New American Media.
"Of the million homeowners foreclosed on last year, this
program will only help
400,000 at best."
I'm changing my name to Fannie Mack.
I figure when the federal government is handing out all those billions to
Freddie Mac and Fannie Mae to solve the mortgage crisis, I'll just slide in
line and get a few dollars for my own mortgage crisis. Luckily for me, my
maiden name is Mack, and my grandmother's name was Fannie, so the paperwork
should be easy.
That's about the only way that I - or any other victim of predatory lenders --
can expect to get much public aid. Since my home went into foreclosure, I've
been helped by ACORN, I've been helped by
my family and friends, but I haven't been helped by the government yet.
I appreciate the president for signing the "American Housing Rescue and
Foreclosure Prevention Act" into law last week. It's better than nothing.
"Luckily for me, my
maiden name is Mack, and my grandmother's name was Fannie."
But I learned from my experience with a deceptive lender to always read the
fine print. And the fine print of this bill sounds more like an "American
Corporate Rescue Act" for Freddie Mac and Fannie Mae than much help for an
ordinary homeowner like me. You can bet Congress didn't make the CEO of Freddie
Mac give up any of his almost $20 million in pay as part of this $300 billion
sweet deal.
For us, of course, there are strings attached. If you've already gotten a
60-day notice, tough luck for you, because the refinancing program doesn't
start until Oct. 1. You'll have to pay a fee to refinance. Lenders don't have
to agree to easier terms. Many won't qualify because their incomes are too low
or their debt is too high.
Of the million homeowners foreclosed on last year, or the
2 million expected to face foreclosure by the end of the year, this program
will only help 400,000 at best. And I bet a lot of those 400,000 still won't be
able to afford their so-called re-financed loans.
Sometimes I blame myself and think I should have been smart enough to avoid
IndyMac's slick marketing. But state and federal regulators should have been
smart enough to see the subprime crash coming and smart enough to put
regulations in place to stop it. Like how about a rule that bank robbers and
embezzlers can't be mortgage brokers? ACORN and other community groups saw the
crisis coming as early as 2002.
"The federal government
continues to bail out industry after industry, but the buck always stops with the taxpayer who ends up
footing the bill."
We didn't make those banks and mortgage companies cook their books, or hire
felons, or hand out mortgages like church bulletins to everyone who walked
through the door. In fact, for years ACORN has been doing everything in its
power to stop predatory lending. Last week hundreds of us rallied at National
City Bank offices in 30 cities and persuaded the company to negotiate their
loan practices - good news for future borrowers, but little help for those who
have already lost their homes.
The federal government continues to bail out industry after industry, but the
buck always stops with the taxpayer who ends up footing the bill for every
corporate crash. Our country is like a dysfunctional family with one spoiled
kid rescued every time he messes up and the other given tough love even without
doing anything wrong.
So I'm changing my name to Mrs. Fannie Mack.
As Tom Paxton said in his 1980 song about the infamous Chrysler bailout: "I'm
changing my name to Chrysler. When they hand a million grand out; I'll be
standing with my hand out; Yes sir, I'll get mine."
Carolyn Patmon is the head of Anti-Foreclosure Committee for Orlando ACORN
and a family delegate for the Equal
Voice for America's Families Campaign of the Marguerite Casey Foundation.
She can be contacted at [email protected].
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