I knew there was a reason I like Mike!

Supervisor Antonovich,

A few weeks ago I wrote to you about a problem with the Los Angeles County Sheriff’s Department which has now contacted me in response to your communications to Sheriff Baca.  I thank you, very much, for your assistance.

Today I am writing to ask for your help in a much more tragic and troubling matter, the de facto theft of literally thousands of homes from Los Angeles County residents, a substantial number of whom reside in your district.  I was a banker for over 25 years and can personally attest to the fact countless thousands of homeowners were duped by lenders and their agents into entering into loan transactions the homeowners were assured they could afford.  In fact many of these loans ultimately called for mortgage payments in some cases exceeding the homeowner’s gross monthly income and in most cases far in excess of half of the homeowner’s gross monthly income.  This fact was never disclosed to the homeowners and was routinely concealed from them to ensure they executed loan documents in a highly orchestrated “loan closing” in which the homeowners were simply directed to “sign here” without being given ANY opportunity to read what they were being asked to sign. 

I am proposing the formation of a County-wide task force charged with 3 primary goals.  First, to immediately begin assisting homeowners whose homes have been or are being foreclosed on by, among other things, demanding lenders cease and desist all actions aimed at dispossessing homeowners of their homes or concluding pending foreclosures.  Second, identify mortgage brokers and lenders who engaged in fraudulent activities as evidenced by both homeowner testimony and review of actual loan documents and recommend criminal prosecution of those who engaged in a pattern and practice of fraudulent activities.  Third, introduce a county measure similar to that enacted in the city of Oakland, deeming any loan in which lenders pay mortgage brokers a “Yield Spread Premium” or other payment, directly or indirectly, totaling in excess of 2% of the total loan amount to be a “Predatory Loan” and providing a basis for legal action by the District Attorney requiring lenders and brokers to disgorge any such amounts and return them to homeowners as well as pay fines to the County for having engaged in predatory practices. 

I would also suggest the group propose statewide legislation to modify current Unlawful Detainer legislation,  eliminating the right to conduct a non-judicial foreclosure by ANY party other than the original or actual lender and requiring that EVERY sale of a real estate secured loan be reported to the property owner together with the complete name, address and contact information for the purchase of the loan.

These steps would provide both short term and long term solutions to help ensure the mortgage crisis now crippling our community and the nation at large would not be repeated as it would remove much of the incentive mortgage brokers and lenders had to steer homeowners into loans the homeowners could have never afforded. 

I would be more than happy to provide any support and assistance I might to aid in this effort including, of course, explaining in detail the processes by which homeowners were steered into entering into these impossible transactions by people the law expressly provides had a fiduciary duty to the homeowners.

Best Regards,