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Foreclosure Face Off

Quoted

In an April 2010 lawsuit, the founder of Mortgage Electronic Registration Systems admitted that the untrained and non-certified “notaries” were allowed to illegally notarize hundreds of documents daily, as well as “robo-sign” up to 4,000 foreclosure documents daily.

Politics / After last week’s cover story on “Foreclosure Fraud,” distressed home loan borrowers are anxiously awaiting the reaction to Sen. Roz Baker’s 95-page legislative bill on mortgage foreclosures to be shared with the House committee on Wednesday.

Over one million homeowners in the nation will face foreclosure this year, with nearly 24,000 foreclosure actions already initiated in Hawaii, according to real-estate research firm RealTrac.

In March, a local nonprofit organization, Faith Action for Community Equity (FACE) completed their own three-month investigation into the local mortgage meltdown. “Facing Hawaii’s Foreclosure Crisis: How Mainland Lenders and Mortgage Servicers are Misleading Hawaii’s Families into Mortgage Default and Foreclosure.” After analyzing 16 local families throughout the state seeking modifications of their home loans–mostly due to injuries, job losses or unexpected loss of income–FACE staff found “a disturbing pattern of deception” on the part of large out-of-state mainland lenders and mortgage servicers.

The study tallied 1,059 foreclosure notices published in the Star Advertiser in November 2010. While local banks were responsible for only 2.5 percent of these notices, out-of-state banks and mortgage lenders accounted for a whopping 97.5 percent of the total.

Of the 42 lenders responsible for the local foreclosure proceedings, Bank of America (BofA), the nation’s largest bank, was the lender responsible for 353, or one-third of all foreclosure notices statewide.

BofA, Wells Fargo, Deutsche Bank, US Bank and One West were the top five off-island lenders driving the foreclosures against Hawaii homeowners. Many of these banks have come under criticism throughout the nation for unwarranted foreclosures related to improper, unethical, and in some cases fraudulent, procedures involving loan modifications.

The lenders’ intent appears to prevent families from taking advantage of the federal programs that pay banks to offer loan modifications to qualified borrowers.

These programs are a part of the Troubled Asset Relief Program (TARP), a federal program to purchase assets and equity from banks to strengthen their weakened financial condition as a result of the subprime mortgage crisis. “TARP legislation bailed out many of the same Wall Street banks that our families are now fighting,” says FACE State President Rev. Alan Mark.

Wall Street’s collapse and the sub-prime mortgage crisis in 2008 continue to place a heavy burden on the commercial banking industry. Nevertheless, during the first nine months of 2010, the banking industry spent more than $42 million on lobbying, according to the advocacy group Consumer Watchdog. During the 2010 campaign cycle, people and political action committees associated with banks throughout the nation gave more than $18.8 million to federal candidates, committees and parties. BofA, the nation’s fourth largest contributor, donated $1,607,728.

In February, corporate disclosures in the annual financial filings of the Securities and Exchange Commission (SEC) warned shareholders with BofA, Wells Fargo and Citigroup that those banks could face sizable financial penalties as a result of state and federal investigations into “abusive” mortgage practices. Until then, the banks had explained the foreclosure controversy to investors as merely “technical glitches” that could threaten their reputation but were not serious financial concerns.

A recent 60 Minutes segment investigated Mortgage Electronic Registration Systems (MERS), a private company that acts as an agent for institutions seeking to speed up the processing of their loan modifications. MERS, which claims to handle about 60 million loans (nearly half of all home loan modifications in the country) with fewer than 50 staff. In an April 2010 lawsuit, the founder of MERS admitted that the untrained and non-certified “notaries” were allowed to illegally notarize hundreds of documents daily, as well as “robo-sign” up to 4,000 foreclosure documents daily.

On April 13, federal government regulators ordered 16 of the nation’s largest mainland mortgage lenders to hire auditors to determine how many homeowners had been harmed by robo-signing and forged or lost documents, ordering them to reimburse homeowners who wrongly lost their homes through foreclosures.

Since then, a task force of federal bank regulators has been reviewing the foreclosure practices and internal controls of the 14 largest off-shore mortgage servicers, identifying careless practices such as inadequate staffing, lax oversight of outside law firms hired to assist with the foreclosure process and inadequate scrutiny of original loans and the modifications of existing loans. Some say the attorney general could order a settlement that could run into tens of billions of dollars.

In Hawaii, at least 30 bills were introduced in the Legislature to help resolve the foreclosure problem, including recommendations to impose a moratorium on repossessing homes and altering the state’s foreclosure law by allowing borrowers to choose judicial foreclosures, which allows their cases to be heard by a judge in court.

FACE is calling for state officials to help in the ongoing struggle with out-of-state lenders that borrowers are unable to speak with face to face. “At the minimum, local residents who are turned down for a loan modification, deserve to see the reason for the denial in writing; and if they feel the denial is incorrect, they should be able to request that the borrower and lender participate in a binding arbitration process,” says FACE Policy Director Kim Harman.

In his first speech before the Supreme Court, Chief Justice Mark Recktenwald said, “Many of Hawaii’s low and moderate income families are unable to obtain the legal services that they need…There are increasing numbers of families in Hawaii facing foreclosures and other economic crises.” Yet, at the same time, he added, state funding for legal service organizations has been sharply reduced.

“There are increasing reports around the country of wrongful foreclosures,” said Recktenwald. “It is especially important to protect our citizens from fraudulent practices.” Recktenwald referred to states that have passed comprehensive legislation and seen dramatic reductions in foreclosures. “I want to express that this is personal for me. Our home is a sacred meeting place for friends, family and community–not a game piece on a Monopoly board. Why I’ve chosen to make Hawaii my home is that I am joined with fellow stewards of the land. Our love of this land is greater than the greed of Wall Street.”

In the meantime, FACE organizers and nervous homeowners await the reaction to the 95-page draft initiated last week by Baker, who is a strong supporter (along with Rep. Robert Herkes) for unfairly treated homeowners.

Her bill includes mandatory mediation for local borrowers and lenders in a mortgage dispute. “It is fantastic,” says Harman. “Sen. Baker closed all of the loopholes we were worried about. I would be interested to know what Bank of America has promised or offered the legislators over the last few months, since they have been hanging around the capitol so much.”

The real test is going to be at 10am on Wednesday morning when the conference committee resumes and Baker’s draft gets its first public discussion. “If Rep. Herkes is OK with it, then it looks like Hawaii will get one of the best foreclosure mediation laws in the country.” On the other hand, says Harman, “Maybe her draft won’t even make it out of conference.”

Get Involved: Call Kim Harman, Policy Director at FACE Hawaii, 375-9560


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This week

2013 Summer Books

On a breezy May evening, in the courtyard of the state library, local publishers, writers and book designers gathered to celebrate the 2013 Ka Palapala Pookela Awards, sponsored by the Hawaii Book Publishers Association. The place was packed, and I was struck by such a healthy showing for an industry whose demise has been predicted since before the advent of Amazon.

Unlikely Pairings

I was intrigued recently to channel surf upon a deft interview of Susanna Moore on PBS Hawaii. Moore is the nationally acclaimed author of nine books, perhaps best known for her luminous My Old Sweetheart and other Hawaii novels, as well as the rough-sex 2004 noir In the Cut.

A Long Lost Era

Kabuki Boy, a novel, reads almost like an autobiography filled with vivid details that transport us to 19th-century Japan during the “Tokugawa Era.” Fast-paced and humorous, it aptly dramatizes an ancient dramatic art. The hierarchy between the social classes of samurai, geisha, peasants and monks comes alive from the page, seen through the eyes of Myo, a young boy aspiring to become a kabuki actor.

Panek Point

Calling this big fat novel Hawaii was bound to raise eyebrows. Hey, come run to the schoolyard to watch Mark Panek throw down!

Inward Journey

Beautifully designed, with outstanding photography of India and Tibet by Linda Connor, the newest edition of Manoa is especially ambitious in its choice of subject/theme. It attempts to present diverse interpretations of the meanings and implications of the term “freedom,” doing so in the forms of fiction, essays, poetry, memoir and drama.

Gardens

This new book of poetry is easy to read, yet I had all kinds of strange dreams after reading it. The poems are short but poignant–a lot of thought and crafting went into every well-placed word.

Brotherly Tears

When the young narrator, Landon DeSilva, of Tyler Miranda’s novel Ewa Which Way, watches an episode of “Leave It To Beaver,” he sees a family whose idea of discipline is a father and son discussion without “head cracks” or “cuss words.” In the episode, Eddie Haskell and Wally Cleaver talk about the Beaver’s highjinks, and Landon’s friend says, “just like your brudda . .

Community

In a poetry class I teach at Windward Community College, a student recently did a presentation on coming-out poems and presented her own. One of her peers asked a thoughtful question: “If you are a gay, are you automatically part of the gay community?” It’s a question I’ve had about being Asian American–and a poet.

Cruelty

In Wing Tek Lum’s poem “The Red Circle,” a sergeant teaches his soldiers how to use a bayonet during Japan’s infamous occupation of Nanjing, China in 1937: “With a nub of red chalk / our sergeant marks off / a crude circle in the center / of the chest.” The men are instructed to stab everywhere, except the heart. A quick death would be too kind–too merciful.

Wit

“We are selves in a world because we have words,” writes the late poet Tony Quagliano in the preface of his book, Language Matters. In this masterful collection, every line absorbs the reader into the writer’s world, revealing his intimate thoughts on politics, writing, Hawaii and life.

The Romance of Sunset

A sort of team anthology, Sunset Inn: Tales from the North Shore is a collection of fiction, poetry and a play published by the Aloha Romance Writers, who admittedly chose–over margaritas and Mexican food–the conceit of a colonial-style seaside inn, described in Patrice Wilson’s poem “This Haven” as “white as salt” and “bleached coral in the sea,” as a central setting for their book. Like the landscape and the building, the collection holds stories of love found, lost and always remembered, some of which are based in Hawaii history and some from a contemporary eye, but all adhering to the familiar elements of the romance genre and the romantic.

Love Lore

In Huna Magic: The Hawaiian Odyssey, Dawn Star puts on a modern spin on Hawaiian mythology and folklore. Set in ancient Hawaii, the book starts off with the classic forbidden love story between a young woman, Kuulei ke Anuenue and a handsome man, Kai, who happens to be the chiefess’s love slave.

Reassembling

The reader weary of cutesy novels with multiple story lines that are obviously going to be inextricably tied together, somehow, might not want to venture too far into Darien Gee’s The Avalon Ladies Scrapbooking Society. But if it’s comfort food for the brain you’re after, you’d be missing out.

Green Noir

Set in Hawaii, Saving Paradise, Mike Bond’s sixth detective novel, tells a passable if unevenly written story featuring one Pono Hawkins, a Special Forces vet (Afghanistan), celebrated international surfer and correspondent for ocean magazines. He also insinuates himself into the woes of others, in this case a beautiful young thing whose lifeless body bumps into Hawkins as he goes surfing at dawn.

Decolonizing Our Future

Confucius said, “If your plan is for one year, plant rice; if your plan is for 10 years, plant trees; if your plan is for 100 years, educate children.” The philosopher’s sagacious message seems to align with the alternative approach to education seen in Hawaii’s charter school system. Noelani Goodyear-Kaopua’s The Seeds We Planted is an ethnography articulating the establishment, growth, and success of Halau Ku Mana, one of the few Hawaiian culture-based charter schools in Honolulu.

Navigating Selves

Leilani Holmes’s richly chronicled journey toward a reconnection with her Kanaka Maoli culture opens with the epigraph: “For those who came before us. In hopes that we act on behalf of your bones.” Ancestry of Experience is a thoroughly researched and deeply genealogical journey.

Think Pink

There’s something foreboding about the cover of Pink Globalization. It’s a dark, monochromatic picture of an enormous grey Hello Kitty gazing ominously into the night in front of a corporate-looking building. The picture is certainly intriguing and symbolic–Hello Kitty is taking over the world.

Hardships, Loneliness, Triumphs

A deeply researched and careful weaving of previously unheard voices can be found in Mai Lepera, adding another layer about leprosy patients exiled to settlements at Makanalua peninsula in the 19th century. Keri A.

Transcending Prejudice

If resiliency spoke of a group of people, the Japanese population of the then-Territory of Hawaii during World War II claims the description. With one specific attack on December 7, 1941, an island-wide prejudice against all immigrant Japanese was born, painting a picture of angry nationals who plotted Hawaii’s demise.

Mano

An ambitious, immensely rewarding product of nearly five decades’ research and teaching (beginning when the author was l3 years old), Patrick Vinton Kirch’s A Shark Going Inland is my Chief bids fair to be a definitive, almost exhaustive look at “the island civilization of ancient Hawaii.” Divided into three major parts, Shark starts with Cook’s arrival when Hawaii was four major kingdoms in the midst of creating stratified societies.Kirch deals with religion, evolving social structures and belief systems to make ancient Hawaii come alive. Especially noteworthy are beautiful descriptions of the making of canoes, particularly the vaka moana, capable of transporting families.

Charts for the Band

Music stores abound with compilations of “50 Favorite Songs” for everything from jazz to the Beatles to Bach. Now it’s time for the mid-20th century music of Hawaii.

Racism of Record

Compiled by Christopher LaVoie, Annexation! presents the imperialist agendas of the U.S.

Charting Our Ancestral Past

Hawaiki Rising by Sam Low tells the epic saga of voyaging on the Hokulea, which, as every Island schoolchild should know, is a traditionally constructed Hawaiian sailing vessel that is steered by observing natural elements, without instruments or maps. Low, a part-Hawaiian anthropologist who participated in three voyages, follows the Hokulea through conception, construction, and navigation.

From the Outside

The feeling of being an outsider in one’s beloved homeland is the theme underpinning Pamela Frierson’s fluid and honest nature writing. In her books, The Last Atoll: Exploring Hawaii’s Endangered Ecosystems and The Burning Island: Myth and History in Volcano Country, Hawaii, Frierson explores Hawaii’s unique ecosystems, while also searching for personal relevance where she grew up very aware of being merely a “second-generation colonist.” The shadows of a world unknown drive the writer, teacher and homesteader to attach to the landscape, pursuing a deeper understanding of Hawaii’s natural order, and, through those experiences, a sense of belonging.

Bearded beauties

Donald Hodel’s Loulu: The Hawaiian Palm is winner of this year’s Ka Palapala Award for Excellence in Natural Science. Loulu the Hawaiian Palm Donald R.

Missed Connections

Charlotte A. Tomaino, neuropsychologist and former nun, started with the intriguing concept of explaining how grace and spirituality can “awaken” the brain to a fuller potential through expanded consciousness.

The Naked Truth

Sharon Hicks’ How Do You Grab a Naked Lady recounts the relationship between Hicks, her mentally ill mother and idealist father. We meet Hicks at age 16 as she witnesses her mother parading around a mall in the buff, yelling and cursing–one of many manic episodes we’ll see during the book.

Last Train to Ho’opili?

One paradox of TheLast Train to Zona Verde, Paul Theroux’s 46th book and his latest about Africa, is that it’s also one of the best meditations on Hawaii you’ll ever read. But first, why Africa?

Every Reader for Himself

Confirming rumors, Barnes & Noble’s (B&N) Kahala Mall bookstore will close when its lease expires in January 2014. There are no current reports concerning B&N’s Ala Moana location, but it’s probably a matter of when, not if, management installs a T-shirt store.

Island Girl

Last weekend, Susanna Moore was in town to read from her new novel, The Life of Objects. A striking beauty–high cheekbones, fine features, long white hair with an inky streak that matches her brilliant black eyes–she wore a sleeveless blouse, full cotton skirt and rubber slippers.

A Traveling Light

We were out at Tongg’s surf break when the world’s best-traveled writer paddled past in a kayak. I said, “Paul Theroux?” Mindy nodded.

CIVIX

KAKAAKO MEETINGS The HCDA will host a series of meetings to discuss the Kakaako redevelopment plan and how rail will fit in with those plans. The meetings are open to the public.

Make Our Day

On May 13, Common Cause Hawaii assembled a panel, titled “The Good, the Bad and the Ugly,” to deconstruct lessons from the recently ended 2013 Legislative Session. Commentators included Rep.

Homeless Plan

Mayor Caldwell is winding down his public town-hall meetings campaign. The meetings are designed to update the public on the progress of the Mayor’s major first-year initiatives: repaving the roads, getting TheBus routes restored, making the city’s parks beautiful, fixing Honolulu’s sewer infrastructure, building rail better and, most recently, solving homelessness.

Pacific Pivot

During a 2011 speech to the Australian Parliament, President Obama declared: “The United States will play a larger and long term role in shaping [the Pacific] region and its future.” On May 10, the Center for Strategic and International Studies (CSIS) Pacific Forum hosted a panel discussion that sought to determine what a U.S. “pivot” toward the region would look like and what the reaction to increased U.S.

The homeless experience

I picked up your May 15 issue with great anticipation because on the cover was a photo of a person experiencing homelessness who I have had numerous interactions with (“Derelict Downtown,” May 15). He is someone I have always found to be articulate and friendly–an ideal person to talk to if one wishes to learn about experiencing homelessness.

Hawaiian rights

The puppetmasters controlling the creation of the Hawaiian Nation have manipulated Hawaiians who have signed up for any Hawaiian registry to become captive members of Kanaiolowalu, the Native Hawaiian Roll Commission. Those bills were heard this session and were passed by the Senate in the Tourism and Hawaiian Affairs Committee chaired by Brickwood Galuteria and the Judiciary and Labor Committe chaired by Clayton Hee, although the forced enrollment is unconstitutional.

Money over land

The Land Use Commission, the Honolulu Planning Commission, the Zoning Variance Commissions and all the other BS commissions are hijacked by big business (“Hoopili Miss,” May 15). Judge Rhonda Nishimura’s head is buried in the sand if she doesn’t recognize the votes were bought.

Cinema for all

I try to not miss a Redford film, and, of course, I can relate to events of the ’60s (“Last Round-Up,” May 8). It is disappointing that The Company You Keep is being shown only at Kahala Theatre.

Tea time

Aloha, I am Elyse. Please let me know if you have any questions, I would love to answer them (“Just Our Cup of Tea,” May 15).

Corrections

In last week’s “Derelict Downtown” (May 15), we mistakenly listed Kirk Caldwell’s campaign phone number. To contact the Mayor, please call 768-4141.