Top HUD official “disappointed” by Georgia’s handling of its $99 million share of National Mortgage Settlement

By David Pendered

The deputy secretary of the Department of Housing and Urban Development said Thursday in Atlanta that Georgia did not spend its $99.4 million share of the $25 billion National Mortgage Settlement as the federal government had intended.

HUD Deputy Secretary Maurice Jones

HUD Deputy Secretary Maurice Jones said during his remarks at the annual “Piece by Piece” meeting that he was “disappointed: by the way Georgia spent its share of the National Mortgage Settlement. Credit: Donita Pendered

Maurice Jones, who is HUD’s second most senior official, said he was “disappointed in what I’ve seen in Georgia.” Jones was the keynote speaker at a the annual meeting of, “Piece by Piece: A Regional Foreclosure Initiative,” which was held at the Carter Center.

Clayton County Commission Chairman Eldrin Bell asked Jones what the federal government was doing to respond to Georgia’s decision. Jones responded that the administration had three approaches to states that, like Georgia, had used the money for purposes other than for mortgage resolution.

Jones said the administration was alerting residents in Georgia and other states that officials in their state had spent money for purposes other than mortgage relief; sending letters to state officials saying the administration was disappointed; and talking with state officials around the country to ask them to reverse the action.

“Georgia leaders’ use of the state’s share of settlement funding for purposes other than settlement funding is not what we intended,” Jones said. “I don’t want to start preaching to the choir, but there is plenty of work to be done.”

The rub involves the $25 billion in relief for borrowers and government that was reached in February by the federal government and attorneys general in 49 states.

Click here to visit the web page maintained by the executive committee of the attorney’s general who reached the settlement.

The historic state-federal settlement involved the nation’s five largest lenders, who admitted that they routinely signed foreclosure documents outside the presence of a notary public (a practice known as robo-signing), and without knowing if the facts contained in the documents were correct. The settlement involved the following lenders:

In Georgia, instead of earmarking the settlement funds to resolve mortgage woes, as some say was the intent of the settlement, Gov. Nathan Deal and state lawmakers opted to use the funds to promote job creation. That’s the point Georgia’s commissioner of economic development, Chris Cumminsky, made in a recent guest column in SaportaReport.com.

“Employed people pay mortgages,” Cumminsky wrote in his guest column that appeared the week of July 2. “So rather than subsidize additional public dependencies, the state of Georgia will incent private investment that directly provides jobs for the unemployed.

But promoting jobs isn’t the use of fund that President Obama’s administration expected from the settlement, according to Jones. Rather, the idea was to help homeowners stay in their homes.

That was the point made in a June 17 guest column in SaportaReport.com by Kate Little, president of the Georgia State Trade Association of Nonprofit Developers.

Little noted in her column that the settlement directed the money be used to “fund housing counselors, provide legal aid, and other similar purposes determined by state attorneys general.” Georgia’s attorney general, Sam Olens, determined the state Constitution required the funds be deposited into the state’s general fund and spent according to the wishes of the Legislature and governor, Little wrote.

Click here to read Little’s guest column.

Click here to read Cumminsky’s response to Little’s guest column.

Piece by Piece is a regional effort to address the foreclosure problem in metro Atlanta. It has nearly 150 partners and sponsors include the Home Depot Foundation, Enterprise Community, NeighborWorks America, and financial institutions including Bank of America, Chase, PNC Bank, Regions, and Wells Fargo.

 

About David Pendered

David Pendered, Managing Editor, is an Atlanta journalist with nearly 30 years experience reporting on the region’s urban affairs, from Atlanta City Hall to the state Capitol. Since 2008, he has written for print and digital publications, and advised on media and governmental affairs. Previously, he spent more than 26 years with The Atlanta Journal-Constitution and won awards for his coverage of schools and urban development. David graduated from North Carolina State University and was a Western Knight Center Fellow. David was born in Pennsylvania, grew up in North Carolina and is married to a fifth-generation Atlantan.
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6 comments
CharlesReed1
CharlesReed1

Here is the deal while President Obama is on vacation AGAIN 50,000 military families across this country who were illegally at the hand of his wholly owned federal government Ginnie Mae. So as I am sure I'll get criticized for criticizing Obama but I don't care.

 

Ask yourself how do we have 800,000 federally insured loan that were all full income documented loans (no Stated Loans) and they not be modified by the Federal Government's own President's Making Home Affordable (HAMP)? Is America stupid?

 

FHA losses $70 billion in  loan losses and has a shortfall of $16 billion! So most all government insured loans are not modified....how the freak does that happen? It called crime. I can show where every single loan has a common thread and the loan where all illegally foreclosed, but the government does not want to listen to facts!

CharlesReed1
CharlesReed1

HUD and the State of Georgia, plus the Mayor of Atlanta should be ashamed of the way this foreclosure mess have been handle. HUD first is one of the main player who has fraudulently had thousand of homeowners in across this alleged Great Nation. Now as I have written Secretary Donovan on a weekly basis about the housing crime and that thousands of FHA & VA borrowers have been denied modification because Ginnie Mae has order/allowed that they not be modified so another Christmas is going to past and these victims are without there homes.

 

On top of being rip off in illegally foreclosures these pennies from the settlement is also stolen. Look black folks are just so happen that Obama got reelected they have lost all common sense and are not protecting themselves from just to see Michelle wear another designer dress.

 

Look this country is so divided that black and white are not looking at the housing crisis for what it is and it one big crime scene that Washington is telling us even that we watched the video with or own two eyes that a crime has occurred. HUD has under it Ginnie Mae & FHA and under Ginnie Mae is what is called Mortgage Backed Securities (MBS) in which most all FHA & VA loan are bundled and placed into Ginnie Mae pools. Now once these loans are placed into these pools they can never be sold as they are not purchase but are relinquish to Ginnie Mae, by way of UCC 3 when a Note is signed in blank and is conveyed to whoever, the blank Note is the property of the possessor.

 

However what happen is that because the Note is not purchase, which Ginnie Mae by law cannot do, then the Note becomes a non-negotiable document....in other words the Notes are worthless. Under UCC 9 the burden of proof of purchase of the Note is placed on Ginnie Mae who cannot and does not purchase the Notes.

 

So we got families of all races that have been abused by our own Federal Government and HUD talking about they are not please! However every single government insured loan that was in a Ginnie Mae pool which is about 95% of government loans, has been illegally foreclosed and HUD had a hand in the foreclosures! 

JanetMcDonald
JanetMcDonald

No wonder Deal's pick for Superior Court Judge Fulton County in Markel was such a crock.  Heaven help the foreclosure victims that are forced to appear before that man's Court!

KeithAnderson
KeithAnderson

It's time time to consider IMPEACHMENT of Governor Nathan Deal for 1)fraudulently using homeowners HUD settlement money to BID on attracting new companies to GA, 2) Incompetence in leadership, and failure to properly inform the citizens on the cost -benefits of theTransportation Initiative for Atlanta, failure to understand the details (cost and ownership) of the Cobb Cherokee 675(?) initiate which had to be canceled at the very last minute and still to be determined outcome of the Savannah River deepening project which would ALL provide 1000's of good paying jobs and taxes to cover Medicaid enrollment which he has plans to ask the federal government to hand over block grants to the state so we can do medicaid improvements with some untried, unprovemen method! I sense another FAILURE ON THE WAY! Citizens and Business Leaders it 's time to replace Governor Nathan Deal before he has the chance to bankrupt Georgia's the way he bankrupted his former business ventures! K. Anderson Atlanta, GA

CharlesReed1
CharlesReed1

Docx out of Atlanta GA created hoax around the Nation and fraudulent assignment were generated by the Governor does not spend that money on helping victims of the crime but so other purpose and you wonder why in just this latest round that property values a below 50%. If you thought the North had burned Atlanta just wait until after Nov 6 and not matter who is in office it time to further steal properties that bank cannot prove that they own.

 

As foreclosure notices are on the raise again that million dollar home that worth less than $500,000 today will be worth $250,000 maybe next year or so after that. Mayor Reed is to business on Sunday shows trying to get Obama reelected instead of saving his citizens properties. Like Obama these guy skipped math and finance classes for political BS class to get elected without actually making a budget. How the property taxes doing in Atlanta when your freaking properties are like 48% of what they were?

 

So what must you do is raise the taxes on the now lower price homes or cut teacher, police and firefighter as government worker are off a couple days a week.

 

How many black children are on welfare in Atlanta? Up to 90% because there parents are out of work or working part time waiting on Obama to bring the kind of stimulus the GAO report said the banks and Wall Street received in secret of $16 trillion from the Federal Reserve while the government spend the few million to help out victims of the settlement. However the Governor must feel as Obama once did before the 50th State Atty Gen investigated and let not forget 60 Minutes show on robo signing and Docx!

 

Racism is allowing white to suffer to kill out the black families, as many white mid class, poor and military have lost there homes due to already settled crimes agreed upon! 

CharlesReed1
CharlesReed1

Let understand that Atlanta home values are 54% of what there were at the height of the boom and by the State not spending the money to help out the victims (they are victims as there was a settlement), Atlanta will continue to have price decreases because there is not a correcting of the policies.

 

There just been the decision in Georgia where "duh" the party requesting to foreclose must have a financial interest in the home mortgage loan, and they must be on title as the owner of the debt in order to carry it out. Real racism is not help out the other race even as it hurts your own who have also been victims to these banks/lenders crimes.

 

Now HUD is in no position to talk as Ginnie Mae has cause as much damage in the State as any of the lender/servicer as they are in cahoots with MERS and Wells Fargo Bank illegally foreclosing on every single Washington Mutual Bank government insured loan (FHA, VA) , that neither of the three are the owners of the debt yet the have provided the local land recording assignment document claiming MERS or Wells Fargo is the "holder in due course" when in fact the Notes are to this day blank because the loan were not purchase.

 

You must either originate a loan or purchase that as a regulated lender which MERS & Ginnie Mae are not, in order to be the "holder in due course".  Mayor Reed like President Obama are not concern about the crimes that happen to blacks thinking it will lose them votes of the corporate world however they do greater damage to America because the rules & laws are not observed which create for all more criminal financial activity that caused $13 trillion in worldwide losses.

 

Georgia which has a high military veteran population were I would imagine that 20,000 foreclosure (FHA & VA),  that were in Ginnie Mae Mortgage Backed Securities (MBS) are all fraudulent because they never purchase the loan and were only given the Notes.

 

So now Mayor Reed got million dollar homes only 4years ago selling for under $500,000 and they already got an education problem, so here go the tax revenue.

 

"Mama always said life was like a box of chocolate. You never know what your going to get." And blacks are being let down in their leadership, which hurt white also because neither is being provided the proper enforcement of law, which prolong the housing crisis.

 

HUD must stop providing cover for their criminal organization in Ginnie Mae!

 

 

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