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Economy

NYC Court Official Slams Lenders For Failing To Modify Mortgages: ‘What’s The Holdup?’

ap070814048602Recently, the Obama administration has increased its verbal assault on banks and mortgage lenders that are failing to get troubled borrowers into sustainable modified mortgages. The banks have been firing back that borrowers themselves are to blame for the lack of progress, with the favorite claim being that borrowers aren’t doing their part in getting the appropriate documents together.

New York City is one of a handful of states and cities that force lenders to come to court and meet with borrowers before finalizing a foreclosure. And according to one court official helping to oversee the program, it’s not the borrowers who come to the mediation sessions lacking sufficient documentation, but the lenders:

Leonard N. Florio, a court-appointed referee, oversees such sessions in that dusty room in Queens. He is a chatty man and punctilious about not taking sides. But as he watched Mr. Ali, the Ozone Park homeowner, load his piles of bills and receipts back into his shopping bags, he could not help noting a pattern. “I have yet to see an attorney for a servicer cut a deal,” he said. “Update this, update that. I mean, what’s the holdup?”

This fits with a new study from The Center for New York City Neighborhoods (CNYCN), which found that lenders, not borrowers, routinely show up for mediation sessions woefully unprepared. In fact, “in spite of the law’s explicit obligation that attorneys for the lenders attend conferences with appropriate documentation and authorization to negotiate, lenders frequently send attorneys who know little about the case, have little or no documentation pertaining to its history or status, and lack authority to reach a deal on the lender’s behalf.” Here are some of CNYCN’s findings regarding the lenders’ efforts:

- Only 3% of the time was a copy of an offer already made by the homeowner actually in the attorney’s file;

- The attorney knew the status of an offer with the lender a mere 6% of the time;

-In only 13% of the conferences did the attorney have a phone number to call to reach a person with actual authority to settle.

And of course, “court orders to penalize lack of compliance with the law are scarce.”

As with many foreclosure prevention efforts, this one is suffering from a lack of real consequences for a bank that violates the law, and there’s no mechanism for holding lenders accountable for their inaction. Mediation programs like the one with which New York City is experimenting have been successful elsewhere, but only when the lenders take them seriously. Lenders in New York seem to be blowing off the program, and with foreclosures piling up, a stick with which to prod them needs to be created, sooner rather than later.

Politics

Madden defends GOP’s hypocritical attacks: Obama’s in Hawaii, which ‘seems like a foreign place.’

On CNN this morning, host John Roberts asked former Romney spokesman Kevin Madden about the hypocritical “heat for this president from the Republicans” regarding the Obama administration’s response to the attempted Christmas day terrorist attack. Madden claimed that the two reasons Republicans were launching attacks were that Obama “has very little political capital” on terrorism and that he is “on vacation in Hawaii” at the moment. Madden added that “Hawaii to many Americans seems like a foreign place“:

MADDEN: President Obama right now has suffered very greatly in the last few months because of the fight over health care, and he has very little political capital right now. So Republicans feel it is in vogue to criticize this president.

And then lastly, you have to also remember the fact that the president being on vacation in Hawaii, it’s much different than being in Texas. Hawaii to many Americans seems like a foreign place. And I think those images, the optics, hurt President Obama very badly.

Madden backtracked in his criticism when both Roberts and guest James Carville ridiculed his comment by pointing out that Hawaii is not only a state, but Obama’s home state. “I absolutely agree he’s entitled to a vacation,” said Madden. “But to many Americans, Hawaii seems like this very tropical place, and the optics of many of these reporters reporting about the president’s response with surfers behind them is much different.” Watch it:

Yglesias

Sausage is Delicious, Mediocre Legislation is Problematic

Various analogies between the legislative process and sausage-making are always in the air. A hardy perennial of the American political discourse. But when considering the prospects for legislative reform, it’s worth considering some serious differences between the two.

File:Sausage making-H-1 1

The crux of the difference, I would say, is that comparing the operations of the US Congress to those of a sausage-maker is a huge insult to the sausage industry. You may or may not think that the sausage-making process looks “gross” in some sense, but the fact of the matter is that sausage is delicious. The other day, I made some pesto from scratch. It was good. I served it over pasta with some sausage braised in cider vinegar, and that made it better. Because sausage is delicious. Sausage-making, whether you want to make it or not, is the way you make delicious sausage. If there were some better way to do it, people would do it that way instead.

The US Congress isn’t like that at all. The idea that it’s some kind of gross-looking sausage-making process is, at heart, part of the culture of flattery and egomania that’s made the place so dysfunctional. The implicit moral of the sausage analogy, after all, is that like sausage-making it looks bizarre but is actually the best way to make the product. Actual congressional legislation-writing, by contrast, looks like things like the President proposing to cut agricultural subsidies to the wealthiest farmer, that idea being dead-on-arrival, and nobody being even slightly surprised because everyone knows that the committee system and the over-representation of rural areas make it impossible to contemplate an even vaguely rational approach to this. And farm subsidies aside, whenever members of congress want to signal that they take something very seriously, they do that by proposing that the issue be addressed outside the regular congressional process.

This is often a good idea. But that’s precisely because the regular congressional process is not a good way of making laws. It’s not the only way to make laws. Different models exist abroad. Models exist in US state legislators. Models exist in different ad hoc procedures congress has created to deal with specific problems. The members of congress and their staffs simply choose not to change and improve the process. Because the status quo happens to serve them well.

Alyssa

The Dominance of the USA Network

Vulture is surprised that the USA Network rolled over the basic cable competition this year with a bunch of quirky shows that aren’t high-profile, aren’t heavily reviewed, and aren’t aggressively advertised on other networks.  The network’s done something that I’ve rarely see another channel attempt, and never really thought was successful elsewhere: made watching its shows a matter not just of entertainment but of values.

Branding around “Character,” the network’s buzzword is brilliant, because it encapsulates both the network’s character-driven approach to shows like Psych, about a two-man detective agency touting a fake psychic, White Collar, about a forger working for the FBI, Burn Notice, about a double-crossed spy and Royal Pains, about a doctor who becomes a private physician to the wealthy.  These shows all have plots, some of them even episode-long.  But the protagonists and supporting actors are the selling points for every single original show on the network.  The network also does high-minded programming, like Tom Brokaw’s American Character Along Highway 50 documentary series.  And it sells very aggressively the idea that individual character, both in terms of values and personality, is both more important than race, age, religion, or any other attribute in defining a person, and that the network is a place that respects and embraces that.  (The network doesn’t feature more noticeably diverse protagonists in its original programming than other channels do, though I’m fond of In Plain Sight, which stars a female U.S. Marshal dating a Latino minor league baseball player.)

The “Characters Welcome” slogan is great.  The whole campaign has managed to suggest that there’s something nifty and individualist about slick and slickly advertised television programming.  It’s bunk, of course.  But it’s effective bunk.

Security

Israeli Deputy Foreign Minister: The West Bank Isn’t Occupied

Israel’s Deputy Foreign Minister Danny Ayalon takes to the Wall Street Journal op-ed page to argue that the West Bank, where numerous aspects of Palestinian life continue to be proscribed by Israeli military law, as they have been for over forty years, is not really occupied. Ayalon complains that “little appears to be truly understood about Israel’s rights to what are generally called the ‘occupied territories’ but what really are ‘disputed territories.’”

That’s because the land now known as the West Bank cannot be considered “occupied” in the legal sense of the word as it had not attained recognized sovereignty before Israel’s conquest. [...]

After the war in 1967, when Jews started returning to their historic heartland in the West Bank, or Judea and Samaria, as the territory had been known around the world for 2,000 years until the Jordanians renamed it, the issue of settlements arose. However, [U.S. Undersecretary of State for Political Affairs Eugene V.] Rostow found no legal impediment to Jewish settlement in these territories. He maintained that the original British Mandate of Palestine still applies to the West Bank. He said “the Jewish right of settlement in Palestine west of the Jordan River, that is, in Israel, the West Bank, Jerusalem, was made unassailable. That right has never been terminated and cannot be terminated except by a recognized peace between Israel and its neighbors.” There is no internationally binding document pertaining to this territory that has nullified this right of Jewish settlement since.

And yet, there is this perception that Israel is occupying stolen land and that the Palestinians are the only party with national, legal and historic rights to it.

On it’s face, this is a laughably tendentious argument, the sort that one would find in the pages of Commentary but that’s not taken particularly seriously by actual legal scholars or historians. Unfortunately, given that the Deputy Foreign Minister of Israel has taken it up, it has to be taken seriously, at least in as much as it indicates the extreme irredentist views of the current Israeli government.

Leaving aside the appeals to the authority of the British Mandate — the right of European colonial powers to carve up and give away their subjects’ land in the first place is, let’s just say, not uncontroversial — Ayalon’s quoting of Rostow is very selective. Rostow recognized in no uncertain terms (in the very same piece that Ayalon references, in fact) that the West Bank was occupied territory.

As did former Israeli Prime Minister Ariel Sharon, decidedly not a Palestinian nationalist, who admirably cut through the bull in 2003 and acknowledged the bare fact: “You cannot like the word, but what is happening is an occupation — to hold 3.5 million Palestinians under occupation. I believe that is a terrible thing for Israel and for the Palestinians.” Sharon’s successor, Ehud Olmert, also affirmed this view, noting in reference to the resentment and hatred created by Israel’s military control of over 3 million Palestinians that “We see the occupation as problematic.”

As to the notion that the previous status of the territories as Jordanian-administered somehow absolved Israel from its commitments under the Geneva Conventions, this argument was actually made and rejected by the Israeli foreign ministry’s own legal counsel before the first settlement brick was even laid. As recounted by Israeli journalist and historian Gershom Gorenberg — whose history of the settlements “The Accidental Empire” is well worth reading — “the legal counsel of the Foreign Ministry, Theodor Meron, was asked whether international law allowed settlement in the newly conquered land.”

In a memo marked “Top Secret,” Mr. Meron wrote unequivocally, “My conclusion is that civilian settlement in the administered territories contravenes the explicit provisions of the Fourth Geneva Convention.”

In the detailed opinion that accompanied that note, Mr. Meron explained that the Convention — to which Israel was a signatory — forbade an occupying power from moving part of its population to occupied territory. [...]

Mr. Meron took note of Israel’s diplomatic argument that the West Bank was not “normal” occupied territory, because the land’s status was uncertain. The prewar border with Jordan had been a mere armistice line, and Jordan had annexed the West Bank unilaterally.

But he rejected that argument for two reasons. The first was diplomatic: the international community would not accept it and would regard settlement as showing “intent to annex the West Bank to Israel.” The second was legal, he wrote: “In truth, certain Israeli actions are inconsistent with the claim that the West Bank is not occupied territory.” For instance, he noted, a military decree issued on the third day of the war in June said that military courts must apply the Geneva Conventions in the West Bank.

Unfortunately, the Israeli government ignored Meron’s legal advice, and developed a series of shifting legal rationales to justify the annexation and colonization of the occupied land, which has helped to create the exceedingly difficult and volatile situation we have today.

Attempts at arriving at an internationally recognized legal dispensation for the land of Israel-Palestine have been based on the understanding that the land is legitimately claimed by two peoples, and that neither of those two peoples are going to get all of what they want. Mr. Ayalon’s argument turns this understanding on its head. Israel currently controls around 75% of what was Palestine — land on which Israel recognizes no Palestinian claim, and indeed which the current Israeli government insists the Palestinians must relinquish any claim even before negotiations.

At the same time, the current Israeli government now also insists that Israel’s own claims on the remaining 25% must be taken into account. Yet, in rejecting this frame-up, we’re apparently supposed to believe that it’s the Palestinians who aren’t being reasonable.

Politics

Cheney Joins Hypocritical Attacks On Obama’s ‘Low Key Response’ To Failed Terrorist Attack

cheney-webFor the past few days, Republicans such as Rep. Peter Hoekstra (R-MI), Rep. Peter King (R-NY) and former Bush adviser Karl Rove have been aggressively criticizing the Obama administration’s response to the failed terrorist attack on Christmas Day. “I’m disappointed it’s taken the president 72 hours to even address this issue,” said King on Monday. As ThinkProgress and others have noted, such attacks are supremely hypocritical considering that no Republicans complained when it took President Bush six days to comment on the similarly failed shoe bomber attack. But according to Politico, King and Hoekstra won’t concede that they’re holding Obama to a double standard:

The Democrats’ counterattack is aimed largely at two Republican congressmen who have been particularly critical of Obama, Reps. Pete Hoekstra (R-Mich.) and Peter King (R-N.Y.). But neither GOP lawmaker will concede applying a double standard to Obama. [...]

Asked Tuesday about how Obama’s response differed from Bush’s, King said it was his “recollection” that senior Bush Administration officials such as Attorney General John Ashcroft did speak out about Reid’s case soon after he was arrested. However, POLITICO could not locate any public comment from Ashcroft before he held a press conference when Reid was indicted nearly a month later.

“My point was there was no word coming from anyone except a press handout,” King told POLITICO Tuesday. “It didn’t have to be the president. I’d have been fine if it were Eric Holder or for that matter [Homeland Security Secretary Janet] Napolitano….There should be a face for the administration. For the first 48 hours, nobody said a word.”

Though he pointed out Hoekstra and King’s hypocrisy, Politico’s Josh Gerstein claimed that “former Bush aides and advisers have sidestepped the issue or endorsed Obama’s approach.” But in a statement given to a different Politico reporter, former Vice President Dick Cheney harshly criticized Obama’s “low key response“:

As I’ve watched the events of the last few days it is clear once again that President Obama is trying to pretend we are not at war. He seems to think if he has a low key response to an attempt to blow up an airliner and kill hundreds of people, we won’t be at war. He seems to think if he gives terrorists the rights of Americans, lets them lawyer up and reads them their Miranda rights, we won’t be at war. He seems to think if we bring the mastermind of 9/11 to New York, give him a lawyer and trial in civilian court, we won’t be at war.

Cheney’s claim that the Obama administration’s response to the attempted airline bombing is “trying to pretend we are not at war” is especially hypocritical because one of the Bush administration’s first public comments on the 2001 attempted shoe bombing specifically called it a “law enforcement” issue. At a press conference five days after the incident, then-Secretary of Defense Donald Rumsfeld brushed off questions about Richard Reid’s failed bombing by saying, “That’s a matter that’s in the hands of the law enforcement people and not the Department of Defense.” “And I don’t have anything I would want to add,” said Rumsfeld.

Update

Rep. Eric Massa (D-NY) blasted Cheney today, saying “that the apparent leaders of the al Qaeda cell in Yemen were 2 terrorists who were released by Vice President Cheney in secret.” “I think there’s a level of accountability that has to be levied personally on the vice president,” said Massa.


Update

,White House Communications Director Dan Pfeiffer responds to Cheney on the White House blog, saying that “this President is not interested in bellicose rhetoric, he is focused on action. Seven years of bellicose rhetoric failed to reduce the threat from al Qaeda and succeeded in dividing this country.”

Alyssa

Soundtrack of the Year

This DJ Earworm mix of the year’s biggest songs is, typically, pretty great and catchy:

The fact that he’s able to fit all this stuff together does make me wonder, though, if across pop genres, our music is starting to sound more alike?  Probably not, since it’s so snippetty, but it does suggest that certain shimmery vocal and production styles are in vogue (I’d describe both Taylor Swift’s and Lady Gaga’s vocals as shimmery, so it may be a quality that makes sense only to me, though).  The mix also inspired me to actually listen to Jay Sean’s “Down” in full for the first time, though, and I liked it quite a bit:

Actually reminds me of a No Mercy, though Jay’s Desi and British.  Remember those guys?

Culture

Pat Riley Knows a Lot About Basketball

File-Pat_Riley

John Hollinger hails the “de-Rileyization of the game” as one of the best NBA trends of the decade:

In a response to the increasingly rough tactics of the 1990s, personified by the brutish style that Pat Riley’s teams employed in New York and Miami, the league enforced handchecking rules and made other modifications to open up the floor. The result was a much-more-entertaining style of play and a rebound for the post-Jordan NBA in the second half of the decade. Ironically, Riley stumbled upon the one player best suited for the new rules (Dwyane Wade) and won a championship with him in 2006.

I basically agree, but I don’t think “ironically” is really the best way to look at this. One thing that’s noteworthy about Riley is that while he adopted a very distinctive and much-loathed style in the 1990s, he’s not at all dogmatic about it. That’s not how he coached the Lakers in the 1980s and when the rules changed and it ceased to be the most effective way to run a basketball team he swiftly built a team around a perimeter slasher who thrives in the current system. Some guys, like Don Nelson or Larry Brown, seem monomaniacal about their particular basketball concept. Riley, by contrast, seems to have a very realistic view of the landscape and adapts what he’s doing to the situation.

Climate Progress

Governor of Katrina-Ravaged Louisiana Tries to Block Climate Change Regulation

Louisiana

It’s official.  The state that stands to suffer the most from human-caused global warming has elected leaders who want to stop efforts to avoid its inundation (see “Sea levels may rise 3 times faster than IPCC estimated, could hit 6 feet by 2100“).  That’s true of both Senators — see Senator Vitter of Katrina-ravaged Louisiana tries to block climate change response centers and Sen. Vitter opposes Lieberman-Warner and Landrieu wants to jettison cap-and-trade.  And it’s true of the Governor (and presidential hopeful), as Think Progress explains:

The Environmental Protection Agency (EPA) is finally moving to regulate global warming pollution. One of the leading opponents to the EPA’s proposed regulations, slated to go into effect in March, 2010, is Louisiana governor Bobby Jindal (R-LA). On Monday, Jindal “and the secretaries of the Louisiana Department of Natural Resources and Louisiana Economic Development filed objections with EPA Administrator Lisa Jackson,” claiming the Supreme-Court-mandated standards “will certainly have profound negative economic impacts“:

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