îlîe glorila nò (Observer
Page A4
O pinion
September 5, 2007
Opinion articles do not
necessarily reflect or represent the
views o f The Portland Observer
Reforming the Subprime Mortgage Industry
Focus on
struggling
homeowners
BY M a R< 11. MOKIAL
T he subprim e m ort­
gage m eltdow n that has
been going on finally
appears to be spurring
serious efforts to reform
the industry. It only took
the im plosion o f a prom i­
nent hedge fund, a wildly
erratic Dow Jones Industrial A ver­
age and the specter o f low er holi­
day bonuses for Wall Streeters to
grab headlines worldwide.
D on't forget about the nearly
one in every 134 Am erican house­
holds that entered into foreclosure
in the first six months o f 2007, up 56
percent from the same period in
2006. O r the 180,(XX) new properties
that w ent into foreclosure in July,
up 93 percent from the same month
in 2006.
Back in March, the N ational U r­
ban League attem pted to address
the im pending disaster through our
Homebuyer's Bill o f Rights before it
s ta rte d
to
trig g e r
sh o c k w av es in in te rn a­
tional credit m arkets and to
send hedge fund analysts
to the unem ploym ent line.
A tthe time, policy mak­
ers and governm ent offi­
cials were reluctant to sup­
port greater regulation to
give the market a chance to correct
itself. G uess w hat? It didn't hap­
pen. So far this year, nearly one
million properties are under the
threat o f foreclosure.
As the sub p rim e fiasco has
played out, the powers that be carted
out to quell investors' fears seemed
to be increasingly hedging their
bets regarding the fallout's ultimate
impact even before the m arket’s
recent rol lercoaster ride, as The New
York Tim es' Gretchen M orgenson
observed back in early July.
In early A ugust, the Federal
Reserve revealed that it was "watch­
ing the bousing m eltdow n" but
"that it b e lie v e d th e b ro a d e r
Let's ju st hope that Wall Streeters
left jobless by bankrupt hedge funds
don't hold subprim e mortgages.
The lack o f federal action, the New
York Tim es recently reported, has
prompted legislators in more than 30
states to introduce nearly I (X) bills to
Our leaders owe it to the
hundreds o f thousands of
Americans struggling with their
mortgages to reform the
lending process.
econom y w as on a steady path of
growth."But by mid-month, the Fed
had lowered its discount rate and
expressed "concern about the mar­
kets and the possibility o f a dow n­
turn in the econom y."
G lad to see they’re gradually
com ing around to our point o f view.
crack down on predatory lending
practices and stave o ff foreclosures.
Maryland, Massachusetts, New Jer­
sey, New York, Ohio and Pennsylva­
nia have sought to help struggling
homeowners refinance their mort­
gages.
North Carolina Gov. Michael F.
Easley recently enacted legislation
designed to protect subprime bor­
rowers from mortgages with risky
interest rates. "If W ashington isn't
going to act, the states are," he said.
But if the regulation is left up to
the states, we'll be left with a com ­
plicated patchw ork of regulations
that'll m ake com pliance maddening
for m ortgage lenders who operate
nationw ide. This is where our fed­
eral governm ent needs to take re­
sponsibility.
Fortunately, lawm akers on Capi­
tol Hill are pushingfortougherregu-
lation with stricter rules against and
harsh penalties for deceptive and
unfair practices, am ong other re­
form s. Rep. Barney Frank, chair­
man of the House Financial S er­
vices Com m ittee, holds achairm an-
ship and is a sponsor o f anti-preda­
tory lending legislation. T hat bodes
well for som ething getting done
sooner rather than later.
President G eorge W. Bush has
instructed the U.S. Treasury D e­
partm ent to consider all the options
to help stressed borrow ers. During
a recent CN B C interview . Senate
BankingCommittee Chairman Chris­
topher Dodd said he would be pro­
moting legislation establishing low-
interest rate low-risk mortgages.
If there’s a "silver lining" to the
subprim e lending crisis, Frank o b ­
served to the Tim es, it is that it
proves that absence o f regulation
can be bad for business. "Anyone
opposing more regulation can no
longer say, 'if it ain't broke, don't fix
it,"' he said.
O ur leaders ow e it to the hun­
dreds o f thousands o f Am ericans
struggling with their m ortgages to
reform the lending process before
the risin g tide o f fo re clo su re s
d ro w n s us all as w ell as o u r
econom y.
MarcH. Morial is president and
chief executive officer o f the Na­
tional Urban League.
Helping Each Other
I was so pleased to see my friends batteries for a month.
We were lucky. W e had 20 min­
in the Portland O bserver (Katrina
Evacuees Still Hurting, Aug. 22 is­ utes to gather things before friends
sue). The story was a true and valu­ had returned to evacuate us. So we
have a few basic things like medical
able assessm ent o f our situation.
Mr. W illie Brown o f the Black records, legal docum ents and pho­
C itizens Coalition o f Portland was tos. Practically every female friend
exactly right. How do you rebuild of m ine now has D iabetes Type II
from the stress o f it all.
your entire life in 2 years?
The main point is we all have to
TV viewers really didn't get the
help
each other. The feds ju st have
exact picture o f K atrina’s devasta­
enough
money for each other, not
tion. Spike Lee was very close,
though. You see, "the levees break­ poor people! So please, reach out
ing, dynam ited, etc." was an urban and help individually any Katrina
myth that's been around since Hur- survivor you can. W e still need
ricaneCamille. The levees w ereour help with health coverage, cloth­
security blankets. Even when the ing, stable long-term em ploym ent
w eather was at its worst, we knew and church involvement.
There is zero left in New Orleans
we'd be all right. W e had faith in the
Corps o f Engineers. I mean, that's for us to return to. C harity Hospital
the federal governm ent. T hey is closed. 70 percent o f the medical
w ouldn't let us dow n, would they? professionals left town and the state
And that's w hat is so hard, we mental health system is com pletely
were letdow n. President Bush flew overloaded.
Since the Black C itizens Coali­
low over our house on Tuesday
m orning after the disaster... black tion was kind enough to “take the
haw k helicopters and jets Hanking rest o f us in,” please call Mr. Brown
and all. We thought hooray! Help at 503-288-8123 with your offers of
is here! W rong... even the poorest help.
Kristin Dickerson
o f us had enough for 3 days...but
Southeast Portland resident
that's not enough folks. You need
food, medicine, toilet paper, and and Katrina survivor
This Debate is about Justice
Hate crime law should include gays
G reg M athis
get a victim because o f his or mem-
Hate crim es are legally defined bership in a certain group, usually
as crim es, usually violent, that tar- defined by race, religion or ethnicity.
by J udge
<
? r -
[NEW S E A S O N S
MARKET
N O W D E L IV E R IN G
Y o u r f a v o r it e n e i g h b o r h o o d g r o c e r y s t o r e n o w d e l iv e r s
g r o c e r i e s r i g h t t o y o u r h o m e o r o f f ic e .
A ccording to the FBI, m ore than 15
percent o f hate crim es reported to
police in 2004, the lastyearfor which
data is available, were com m itted
against hom osexuals. O ver 60 per­
cent o f these attacks w ere against
gay men and 14 percent against
lesbians. These num bers are sig­
nificant and clearly illustrate that a
gay person’s very being is threat­
ened. Yet, there are many, includ­
ing large sections o f the religious
com m unity, w ho d o n 't think the
pending hate crim e bill should be
expanded to protect gays.
Currently, federal law increases
the sentences - extending to life in
prison - for violent crim es
m otivated for no other rea­
son than the attacker d id n ’t
like the victim ’s racial, reli­
gious or ethnic group.
The new hate crim e bill,
w hich just passed the House
fear, how ever, is unfounded.
The law would crim inalize vio­
lent acts against gays. It does not
lim it free speech. There are m inis­
ters w ho support the bill, recogniz­
ing the basic human right to live a
life free o f persecution. In fact, many
o f these ministers, along with promi­
nent civil rights leaders, have com e
forw ard in support o f the extended
law.
This debate is not about sexual
orientation. It’s about justice. And
making sure all groups receive it.
The Leadership C onference on
Civil Rights calls theexpanded hate
crim e law "one o f the most im por­
tant civil rights issues cu r­
rently facing the country."
For those w ho protest
hom osexuality on the ba­
sis o f religious beliefs, it is
important to rem em ber that
the bible also teaches us to
It is time we move beyond
our personal feelings on this
issue and acknowledge and
accept that no American
should live in fear.
w w w .n e w s e a s o n s m a r k e t.c o m
you click, we deliver, (or pull up for pick up)
and is pending in the Senate, would
extend the law to protect gay and
transgender victim s and expand the
circum stances under w hich local
authorities could ask for assistance
from federal agencies.
T h elaw ’scritics, many o f whom
are conservative religious leaders,
say this expansion will limit their
ability to speak out against hom o­
s e x u a lity fro m th e p u lp it,
crim inalizing their serm ons. This
lift up and protect our fellow man.
The Book also teaches us that all
man is worthy o f love and protec­
tion. It is time we m ove beyond our
personal feelings on this issue and
acknow ledge and accept that no
A m erican should live in fear.
Judge Greg Mathis is national
vice president o f Rainbow PUSH
and a national board member of
the Southern Christian Leadership
Conference.