Congressional Representative Ellen Tauscher, who represents the 10th district on California, seems more concerned with protecting the bankers and loan companies that duped people into the high-risk home loans that brought on this economic crisis than in helping the affected home owners in her district and throughout the rest of California.
The 10th district includes some of the areas most hurt in the housing bubble collapse: parts of Solano, Contra Costa, Alameda and Sacramento counties. You might think that Tauscher has a responsibility to represent the needs of her constituents, but she has been working to gut legislation that would allow bankruptcy judges to write down mortgages, something that would stop 20% of foreclosures at no cost to taxpayers.
Who would take the hit for the mortgage "cramdowns"? The mortgage companies originally responsible for issuing the high-risk loans in the first place, and who have benefited from the ballooning payments that have thrown so many families into bankruptcy and out of their homes. This legislation, HR 200 and HR 1106 would only affect families in bankruptcy, those who have been hardest hit in the economic collapse. Since cramdowns are already allowed for second homes, investment homes, and vacation homes, it's even more ludicrous to try to block them for a family's actual residence.
This isn't Tauscher's first time fighting against protection from predatory companies. In 2004 the Pentagon attempted to stop insurance companies from using deceptive sales practices to sell insurance to armed service members. Tauscher not only opposed the Pentagon's attempt, but drafted legislative language to further restrict the Pentagon's ability to protect soldiers. It may not be coincidental that she was also the recipient of at least $31,000 in donations from insurance companies.
No word yet on how much she's taken from mortgage and loan companies, but it's possible her 14 years on Wall Street color her economic views.
Here's how to take action:
Write a letter to the editor of your local papers (just enter your zip code) saying you expect your Member of Congress to represent you, not the banks, and you'll be watching to see if they oppose Tauscher and her bank lobbyist cronies.
Sign a petition to Nancy Pelosi telling her not to "buckle" to pressure from bank lobbyists working through Members of Congress, and to act swiftly to give judges the authority they need to write down mortgages. The banks must take responsibility for their own bad judgment; taxpayers shouldn't be expected to pick up the tab.
Thanks to Firedoglake for the info on Tauscher, and the action links.
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