To: Rob McKenna, WA State Attorney General
Holding Banks Accountable for Foreclosure Impact
We, the 99%, urge the WA State Attorney General to fight to hold the banks accountable for their misconduct and the damage done to the economy. Any settlement must reflect the harm done to homeowners, with restitution by the banks.
1. Require banks to rent vacant bank-owned single family properties as affordable housing at a rent-controlled amount of 31% of the Area Median Income on a month to month lease with all legal protections of tenants that such a lease affords.
2. Provide large-scale relief for underwater homeowners. Mortgage payments must be modified to 1/3 of the current income of the borrower, even if that income is derived from unemployment or Social Security or other such sources. This may be accomplished by reducing the principle, reducing the interest rate, and extending the term of the loan.
3. Before the WA Attorney General may agree to any further settlement, there must be a full investigation into misconduct and fraud by the banks.
Why is this important?
Foreclosures and abuses by the Big Banks are crippling our economy. In many cases the Big Banks broke rules, falsified paperwork or defrauded home buyers—and gambled with our homes to enrich themselves. They have yet to be held responsible.
Our attorney general has the power to hold the big banks accountable and to provide restitution to homeowners who have lost their homes or whose mortgages are "underwater."