Crowd applauds testimony from S. Baxter Jones at Metro Detroit hearing against foreclosures May 20, 2013. Photo by Jim West
BY DETROIT EVICTION DEFENSE
May 24, 2013
Website: http://detroitevictiondefense.net/
- 200+ people came out to hear testimony May 20
- Homeowners determined to stay and fight
- (l-r) S. Baxter Jones and Dave Sole were among the 22 people who testified at hearing.
‘I really wanted you to view me and acknowledge me as a living, breathing, human being and not just another statistical casualty. I guess because you’re not represented here today, I can’t accomplish that. I guess when you don’t have to face me it makes it easier for you to not feel compassion for me or to account for your actions towards me.
“You can just continue business as usual, taking away my home and pushing another faceless person out into the streets.” — S. Baxter Jones, at May 20 hearing on federal agencies evicting homeowners
UAW VP Cinda Estrada. Photo by Jim West.
DETROIT– After months of negotiations with UAW Vice President Cindy Estrada and some stalling, the government-owned Fannie Mae/ Freddie Mac agencies had agreed to send 20 officials to town on May 20 and see first-hand how their hard-hearted policies are devasting our communities.
“Fannie and Freddie, which own or insure more than half of all residential mortgages in the country, have foreclosed on more than 15,000 families in Wayne County since the government takeover by the Federal Housing and Finance Agency [in 2008],” UAW V.P. Cindy Estrada told the Metro Times. “Thousands more have lost their homes in Oakland and Macomb.”
Fannie and Freddie’s empty seats at May 20 hearing.
But after months of planning, just days before the hearing, the officials from our government backed out, saying it would be “awkward” for them to be in the same room with homeowners who are battling them in court to save their homes from eviction. The hearing went on without them.
They can’t hide from the truth — the powerful testimony was being taped, and we’ll make sure it gets to the Feds. Stay tuned for more on that, & more powerful messages from the hearing.
More information:
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During the bank crisis, the U.S. government took over Fannie Mae and Freddie Mac, which insure and buy mortgages from banks.
- At the hearing, 22 homeowners, neighborhood activists, and members of the legal defense team gave powerful testimony on how Fannie and Freddie are relentlessly evicting families who have trouble paying inflated mortgages. The testimony was broadcast live-to-tape by Tony Trupiano that evening on his “Night Shift” program (WDFN, AM radio, 1130, 7pm). Our new report, “A Hurricane Without Water: Fannie Mae, Freddie Mac, and the Foreclosure Crisis in Metro Detroit” was distributed at the hearing and can be downloaded from this site at
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Check out Curt Guyette’s story in Metro Times, and be sure to add your comments, at http://metrotimes.com/news/news-hits/news-hits-1.1493699.
We are fighting for three things the federal government can do:
1) Halt Foreclosures & Evictions: Fannie Mae has declared moratoriums for hurricane victims. The 75,000 Michigan families foreclosed on in the last year are also victims— of mass unemployment and mortgage banking fraud.
2) Principal Reduction: Fannie and Freddie should help families in need by by reducing mortgage principal to reflect current market values. Families facing foreclosure can hear from homeowners at the rally who have successfully resisted.
3) Due Process for All: As government agencies, Fannie Mae and Freddie Mac are now governed by the 5th Amendment to the U.S. Constitution, which says that no person shall be “deprived of life, liberty, or property without due process of law.” The case opened Feb. 20 in Detroit.
(VIDEO ABOVE, EXPLAINING ROLE OF FANNIE MAE AND FREDDIE MAC IN FORECLOSURE HURRICANE, IS FROM MORATORIUM NOW! WEBSITE at http://moratorium-mi.org/ )
Fannie Mae, Freddie Mac Cancel Appearance At Metro Detroit Foreclosure Hearing
By David Sands
May 18, 2013
DETROIT – Officials from the mortgage financing giants Fannie Mae and Freddie Mac have withdrawn from a Detroit event where homeowners are set to talk about the impact foreclosures have had on their lives and communities.
The group Detroit Eviction Defense claims the last-minute cancellation of the May 20 hearing comes after officials for the government-backed agencies told organizers it would be “awkward” to hear testimony from homeowners who are currently litigating against them.
Steve Babson, a spokesman for Detroit Eviction Defense, said organizers received word of the cancellation through a series of phone calls with employees of the Federal Housing Finance Agency (FHFA), which oversees Fannie and Freddie.
“They said, ‘Well, we’ve decided it would be pretty awkward for us to be in the same room in a public event with homeowners who are in litigation against Fannie Mae and Freddie Mac over potential evictions,'” Babson told The Huffington Post. “This was a phone conversation, as it had been for several months, but this was unfortunately at the 11th hour saying they were pulling out.”
Meg Burns, senior associate director of the Office of Housing and Regulatory Policy, sent a statement to The Huffington Post confirming that officials from FHFA, Fannie Mae and Freddie Mac had earlier committed to attending the hearing but now would be unable to do so.
“We are disappointed we can’t be at the event but we look forward to hearing the concerns of the homeowners and seeing the impact the housing crisis has had on the affected residents,” she wrote. “This information will serve as the basis for the follow-up policy discussion that we remain committed to having with the UAW and other interested parties.”
A spokesperson for Burns said that FHFA would hold a policy discussion with the United Auto Workers and other groups after the event, though no official date has been set.
The UAW helped Detroit Eviction Defense organize the event, along with the Metro Detroit AFL-CIO. Supporters had hoped FHFA officials would get a first-hand view of the heavy impact of the housing crisis in the city.
In 2007, Metro Detroit led the nation with nearly 5 percent of properties in some stage of foreclosure. Although those rates are declining, 20,000 foreclosed properties in the city of Detroit were auctioned off by Wayne County last year.
About 20 homeowners are expected to speak to an audience of community activists, housing advocates and others. There will also be an open mic session for others who wish to comment. Organizers plan to videotape the testimony and deliver it to Fannie Mae at a later date.
Babson called the mortgage giants’ concerns that testimony at the event would compromise ongoing legal cases a “phony argument,” noting that officials were invited to listen, not to speak, and knew of the event’s format ahead of time.
“I think it’s outrageous,” Babson said. “We find it very insulting and we think it’s pretty transparent that what they find ‘awkward’ is the prospect of being with people who are victims of a foreclosure policy that we think is doing serious damage to Metro Detroit.”
The Detroit Eviction Defense coalition has been working with the UAW and the AFL-CIO on foreclosure issues for about two years. The group defends homeowners against foreclosure and eviction through a variety of methods, including non-violent direct action. The organization is calling for a moratorium on foreclosures by Fannie Mae and Freddie Mac in Metro Detroit, similar to the one instituted for regions affected by Hurricane Sandy, and a reduction of principal for “underwater” loans that have balances higher than a home’s market value.
Fannie Mae and Freddie Mac were taken over by the government during the 2008 subprime mortgage crisis. They have received more than $187 billion in taxpayer funds and have paid $58 billion in dividends to the U.S. Treasury. The two government-sponsored enterprises provide a secondary market for mortgages, purchasing them from originating lenders, and sometimes selling them as guaranteed securities.
After two recent court decisions, the two lenders may be forced to pay real estate taxes and extend due process to foreclosed homeowners in Michigan.
