Sunday, September 21, 2008

Paul Kanjorski supported Predatory Lending

The Hazleton Standard Speaker features an article in its Sunday edition- Barletta calls Kanjorski’s role into question . Paul Kanjorski's congressional office issued an eight page timeline of the congressman's record "to regulate Fannie Mae and Freddie Mac, curb predatory lending, improve the quality of real estate appraisals and otherwise help consumers seeking to buy homes." Did the rooster come home to roost or what?

Let's look at what this article states at the time Kanjorski proposed his main bill- Feds Propose Gutting State Protections Against Predatory Lending dated February 28, 2006. Quote- "But a proposed federal law sponsored by Reps. Bob Ney, an Ohio Republican, and Paul Kanjorski, a Pennsylvania Democrat, would override those state laws and gut consumer protections. Perhaps unsurprisingly, their campaign reports show close connections to the financial industry. Rep. Ney, of course, is infamous for his connections to Jack Abramoff and took just short of $570,000 from financial companies in 2003 and 2004. Rep. Kanjorski took almost $450,000 from the financial services industry in the 2004 election cycle, over half of the money he raised."

It is reported in the Standard Speaker article that Kanjorski took $2.7 million overall since 1989. That means he received 16% of his money in one election cycle out of 10 election cycles.

The Progessive States article goes on to state "Consumer rights advocates have come out in support of an alternative federal bill introduced last year by Rep. Brad Miller, a North Carolina Democrat, which would protect existing state predatory lending laws."

How did the latest mortgage crisis happen? Read this article 1.2 million home foreclosures: how did it happen? In part the writer states "Some crucial answers lie in a new report by Common Cause, titled, "Ask Yourself Why... Mortgage Foreclosure Rates Are So High." Several experts testified before Congress in 2000 to warn of lending abuses, persuasion of families to take out loans beyond their means, steering minority homeowners into subprime loans unnecessarily, and more. Yet Congress didn't act.

Over the next seven years, the mortgage lending industry spent $210 million in Washington lobbying and in campaign contributions as they worked to stave off regulation."

The Standard Speaker article tries to paint a rosy picture of Paul Kanjorski's efforts ignoring the information about the Ney-Kanjorski bill. There is one fact that can't be denied. Those that are singing his praise gave him millions in donations, something he claims did not influence him. Geez Paul, can you explain why the National Association of Realtors is running ads against Lou Barletta to the tune of over $234,000.00 for your benefit? No influence, complete balderdash.

The National Low Income Housing Coaltion has this appraisal of Ney-Kanjorski "Representatives Robert Ney (R-OH) and Paul Kanjorski (D-PA) introduced the Responsible Lending Act (H.R. 1295) on March 19, 2005. While at first glance the Ney-Kanjorski bill appears to offer useful consumer protections, its language is riddled with loopholes, making most of its provisions meaningless to borrowers. For example, while it also sets the points and fees trigger at 5%, the bill excludes prepayment penalties, yield spread premiums, discount points, SPCI and other fees in its calculation, significantly limiting the number of loans it covers. Ney-Kanjorski also prohibits prepayment penalties, but only after three years of the loan origination and even though most high cost loans have prepayment penalties two-three years after loan origination. Furthermore, loopholes in the bill would allow for flipping when a single reasonable tangible benefit is provided, even if the tangible net benefit would leave the borrower worse off. Ney-Kanjorski also does not ban mandatory arbitration on all home loans and would preempt state or local laws, including those that provided stronger consumer protections."

If my bddy Foghorn Leghorn were real and read Paul Kanjorski and Ed Mitchell's propaganda he would say "This is gonna cause more confusion than a mouse in a burlesque show!"

Of the money received by Paul Kanjorski from the financial and real estate industry-"They have plenty of Congressmen protecting them. Isn't it time we had someone who is protecting us? We cannot change Washington unless we change the people we send there. This November Lou Barletta will represent, in this election, the definition of change asked for by the voters, not the big corporations.

1 comment:

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As far as subprime mortgages the statistics agree that there was Predatory Lending and Mortgage fraud.