The same people who destroyed our economy, stole our homes, and created the Great Recession, are now buying up delinquent mortgages and foreclosed homes. With profits as their priority, they are pushing families into foreclosure, flipping homes, and raising rents.
And our own government is aiding and abetting Wall Street’s buy-up of our neighborhoods.
The Department of Housing and Urban Development (HUD) has a mission to “create strong, sustainable, inclusive communities and quality affordable homes for all”. But the agency is quietly selling off the mortgages of the hardest hit among us straight back to the sort of Wall Street speculators who caused this mess in the first place.
This is unacceptable. Tell HUD: Stop selling our neighborhoods to Wall Street and increase homeownership and affordable housing instead.
A HUD division called the Federal Housing Administration (FHA) insures millions of mortgages. In the wake of the housing crisis, FHA created a program called the Distressed Asset Stabilization Program, which is supposed to sell off seriously delinquent FHA insured loans in ways that “stabilize” neighborhoods. Instead, they are selling them off to the highest bidder. And often those highest bidders are Wall Street bankers and private equity firms. In fact, 40% of the loans sold since 2012 have gone to private equity corporations like Lone Star Capital and Bayview Asset Management, a division of Blackstone the world’s largest private-equity firm.
Tell HUD: Stop selling our neighborhoods to Wall Street bankers and uphold your mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
When these Wall Street corporations take over these mortgages, they are not interested in keeping people in their homes and creating affordable housing. They are interested in squeezing as much money as possible from struggling homeowners and communities.
We are not surprised to see Wall Street bankers profiting off the misery they caused in the first place. But it’s appalling that this pillaging of our communities is being advanced by the one department in our Federal government charged with stabilizing communities and creating affordable housing. This has to stop. Now.