Foreclosures: A Crisis In Legal Representation

8/7/2019 Foreclosures: A Crisis In Legal Representation

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ExECUIVE SUMMARY

INRODUCION 4

I. HE CRISIS 6

A. T Ip Sp L P P 6

B. T C F C

C. T F C Dpp Ip A A 9

II. LAWYERS MAKE A DIFFERENCE

A. T N L A

B. S W Lw P F F

. Lw R C P Hw L S w Bk Lw

. Lw Hp Hw R L 8

3. Lw Hp E L P Fw Pp

4. Lw Hp Hw O P Bkp Lw 4

. Lw Hp W LPp F

6. Lw G T A F V P R

III. IMPEDIMENS O FORECLOSURE LEGAL REPRESENAION

A. W Rp Hw ? B. L S Oz Lk F

F Rp 8


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C. F F R U F Rp LSC-F P 3

. T R C A A IpLw-I A A J 3

. T R A F H A Lw-I A L P F 3

3. T R L A DIp Lw-I C A H 34

4. T P P R E F P E S, L P D 3

IV. RECOMMENDAIONS 36

. I F F L Rp 36

. R F R U E A Hw 3

3. Ep A C O Dp RM Hw F F P 38

4. Rz R C w H C,, W T R B F R L V, Lw 38

ENDNOES 4


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j , w, . C, 8 H E R A, p - w p , p p w .

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Recommendations

T B C w :

. Increase unding or oreclosure legal representation A , w p pp.

. Remove unding restrictions that undercut efective legal advocacy or

homeowners and tenants L LSC , - , - w p p .

3. Expand access to the courts and to other dispute resolution mechanisms orhomeowners acing oreclosure proceedings S w p w w . I , q pp w w p p.

4. Recognize a right to consult with a trained housing counselor and, as

necessary, a lawyer F p w w , , w p, w.


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i. tHe crisis

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A. Te Impact o Subprime Lending and Predatory Practices

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Homeowners at Risk

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source: U.S. Census Bureau, American Housing Survey or the United States:

2007, Pub. No. H150/0, 8 .- (8).

B. Te Costs o the Foreclosure Crisis

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B C J | 9

C. Te Foreclosure Crisis has had a Disproportionate Impact on Arican Americans

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Historical Home Ownership Rates by Race50


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1900s

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1944

19451959

1980s1990s

1990s

present

Discrimination in the Mortgage Lending Market A Brie History


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ii. LaWYers MaKe a Difference

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A. Te Need or Legal Assistance

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B C J | 3

Te Foreclosure Process

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(continued on page 14)


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(continued rom page 13)

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B C J |

Te above example o a typical summons ails to notiy the homeowner o whatavailable deenses might be to the action, where to go or help, or that the ailure to

respond could result in the sale o the home at auction.


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B. Six Ways Lawyers Protect Families in Foreclosure

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1. Lawyers Raise Claims that Protect Homeowners rom Lenders andServicers who Broke the Law

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2. Lawyers Help Homeowners Renegotiate their Loans

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Fighting or Homeowners

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Combating Foreclosure Rescue Scams

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3. Lawyers Help Ensure that the Foreclosure Legal Processis Followed Properly

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Negotiating Better Solutions

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4. Lawyers Help Homeowners Obtain Protection o the Bankruptcy Law

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5. Lawyers Help enants When a Landlords Property is Foreclosed

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6. Lawyers Give Tose Afected by Foreclosure a Voice in Policy Reorm

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p p .


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III. impediments to foreclosure representation

A. Who Represents Homeowners and enants?

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B. Legal Services Organizations Lack Funding or Foreclosure Representation

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LSC- p p, w ( w).

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C. Federal Funding Restrictions Undercut Foreclosure Representationby LSC-Funded Programs

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1. Te Restriction on Class Actions Adversely Impacts Low-Income AmericansAccess to Justice

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A pp, U H pp ,f w pp, w pp, , , k p p.66 T U H p k , p .6

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A U H , w w k . I k w p. Hw, U H , SBLS k wp w p k p.


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C p w w . I , k p w . M p, w , j -w, pp, , , , p p. T k p -w, , p, q w w w w p.

2. Te Restriction on Attorneys Fee Awards Hinders the Ability o Low-Income

Americans to Level the Playing Field

Pp p - w, C w z p p w p p .

I ppp 996, C, J, S Sppp w z L S Cp (LSC).69

S p w.

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p .

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U N-LSC F T p p p -p LSC- p, , , p, pp.


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T w p p , p. I , p p p pp p w w w

w.

T p p p p p p . I w pp , , p q , p

Restriction Prevents Client o Legal Aid Program rom Claiming $50,000in Attorneys Fees.

A C I 4 . O , M.C k w k p . W M. C j, w kp p w p kp w w . T , M. C w w p.

S w p, M. C p p w . A p p, M.C w , w p p p , M. C . I w p w p , M. C.

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w M. C . TC w M. C w j . S M. C, I w k w .



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34 | B C J

p , kw , , w p . A Nw Yk C App , w p qk w p p . Hw w w LSC- p k pw w .

A, w p

. A p , p w p. W kw w p , k p .

F, p w p . T C L SC p , w p LSC .3 P , LSC- z C pp $. w ( ),

p LSC w .4

3. Te Restriction on Legislative Advocacy has a Deleterious Impact onLow-Income Clients Ability to be Heard

A , w p p . S LSC- p w w


M. C w LAFMC w $4, ; w, LSC- z, k . A p

IL A, p p p p p . T M. C w wk w $,.

I, M. C, w w k p p , k p LAFMC. U, LAFMC, q p , w M. C w. I LSC- z k LAFMC w k , w w , w p. I , w LSC- p k w w p, w , p w pp w p .


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p p p p , p p . P, k their

w ppp p.

A w , k w p w p p. T p; p p w p.

F j , w p , . A M L A B p , W L A w p, p . L w p w-

p p p p p w.

B, LSC , w LSC- p p. T p pp . T p f w .

4. Te Poison Pill Restriction Extends Federal Prohibitions to EncumberState, Local and Private Dollars

M , p p , C all LSC p p, . I w, LSC-p p -LSC ( p , , , ) w w LSC . I p w p p w p , p p w p qp. I O , p $3, p p pp q. B ,k ARP w other C.

T , p .L p - , - z ARP p. Mp , p , p p , p .


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36 | B C J

iV. recoMMenDations

T kw : wk k, kw w z p -

p. T p p q , , , pp kp .6

T p w -qpp p w- pp p . W p q . W w w, p w pp k w, w.

W , w w w . W , pw k w A .

T : w w k p w, w p . A w , p p w, w.

A - pp A-A L , w k p

p p k. T p .I p w w ,8 j w j, pp w , p.

p, w w :

1. Increase Funding or Foreclosure Legal Representation

M w- pp p . T p , w w , . , A w q , w p .9 A pp p , pp w . C , , , IOLA p


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B C J | 3

p w .

A , ,

w .F, ppp L S Cp (LSC) FY . A , C $48 LSC w w .

2. Remove Funding Restrictions that Undercut Efective Advocacy or Homeownersand enants

p p, j w p p w w p. P, p . W LSC p p w ,

wk, .

Spp w , LSC- p w . T , , p w.E q p p . I j .

R LSC w p p p. T C A J A, U.S. S M 9,w p w -LSC , w

w p, p LSC- -LSC- .

P O C LSC: -LSC , p LSC pp , w.8O J 8, 9, H p ppp , LSC .8 O J , 9, S Appp C p ppp w , w p LSC - . I p S, w

w H w. T w j p w, w p j w .


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38 | B C J

3. Expand Access to the Courts and to Other Dispute Resolution Mechanisms orHomeowners Facing Foreclosure Proceedings

A , w

p p w, w p p w .

A , p pw (-j ) p j w .

F, q pp w w p p. O p p M F D P P (MFDPP) Pp, p p , w-p, .8

T p, , q w . A q C C -pp p, w q w w p p.83 I 8, , w MFDPP w pp . , p 6 Pp kp .84

W pp , z, p q , w .8 L

w .

4. Recognize a Right to Consult with a rained Housing Counselor, and, WhenTere is Reason to Believe the Foreclosure Results rom Lending Violations,a Lawyer

Hw w w, , w p . F w , w .B w , w w

.

U p w p p w , w p w pp w p w w j p. 86 U , w w p. S


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, w p w .

T pp w

p w w q . I , p w w , w , w.


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4 | B C J

d

H. D R. J, Te Legal Needs o the Poor as a Starting Point or Systemic Reorm , Yale L. & Poly Rev. 49,484 (998).

SeeE S. Bk, Housing Wealth Eects and the Course o the U.S. Economy: Teory, Evidence, and Policy Implications 3(J C. H. S H U., Wk Pp N. W8-, 8), available atp://www.j../p//w8-_k.p. O % A w . G S.Mk, Z x D, E S. Bk, Emerging Cohort rends in Housing Debt and Home Equity (J C. H.S H U., Wk Pp N. W-, ), available atp://www.j../p//

w-.p.

3 he Pe Charitable rusts, Deaulting on the Dream: States Resond to Americas Foreclosure Crisis , (8), available at p://www.pw./pF/wwwpw/Rp/Sp_/___.p.

4HOPENOW., Worout Plans (Reayment Plans + Modiications) and Foreclosure Sales, July 2007-November200, available atp://www.pw./p///HOPE%NOW%L%M%N%D%J%%%N%8.p.

Sp A,2008 Foreclosure Filings Set Record, U.S.A. , J. , 9, B. T C Ck C C,F, p , p M 9 9 p 6 w w 33. p Iw w C C C Ck (Ap. 4, 9).

6 P R, R, Foreclosure Activity Remains Near Record Level In August(Sp. , 9), p://www..//p.p?=9==38.

Congressional Oversight Panel, Foreclosure Crisis: Woring oard a Solution 7 (M. 6, 9), available atp://p..//p-369-p.p.

8 Credit Suisse Fied Income Research, Foreclosure Udate: Over Million Foreclosures Eected 3 (D. 4,8), available atp://www.p./p/FUpCS.p.

9 P R, M Bk A, Delinquencies Increase, Foreclosure Starts Flat in Latest MBA National DelinquencySurvey(D. , 8), www../NwM/PC/6666..

P R, R, 1.9 Million Foreclosure Filings Reported On More Tan 1.5 Million U.S. Properties In First HalO 2009( J. 6, 9), p://www..//p.p?=9==68 (I p -w , w , , .).

F p wp see generallyR D. Dz D R. H, Te Socialand Private Micro-Level Consequences o Homeownership, 4 J. Urb. Econ. 4 (3) (p p w w , k , p wp .); R D. G D V. S, Protecting Status: Te Mortgage Crisis, Eminent Domain, and the Ethico Homeownership, Ford. L. Rev. 949, 9 (8) ( [] w - p . Pp wp

w. Hw w , , p k k .).

Bk, supra , 4.

3 J. Zwk Jp D. A, Te Law And Economics O Subprime Lending, 8 U. Colo. L. Rev. , ()( Z x D, Housing Wealth and Household Net Wealth in the United States: A New Profle Based on the Recently Released


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B C J | 4

2001 SCF Data (J C. H. S H U., Wk Pp N. W3-8, 3)).

4 Dan Immergluc & Geo Smith, Risy BusinessAn Econometric Analysis o the Relationshi Beteen SubrimeLending and Neighborhood Foreclosures, (4), available atp://www.wk./p/-p//3//DESC/.

Deaulting on the Dream, supra 3, 4.

6 National Community Reinvestment Coalition, Income is No Shield Against Racial Dierences in Lending II:A Comarison o High-Cost Lending in Americas Metroolitan and Rural Areas (8), available atp://www..///p//%%%%.p.

SeeAllen J. Fishbein & Patric Woodall, Consumer Federation o America, Subrime Locations: Patterns oGeograhic Disarity in Subrime Lending 4 (6), available atp://www../p/SpLS96.p ( p q p ).

8 U.S. Census Bureau, U.S. Det o Commerce & Oice o Policy Dev. and Research, U.S. Det o Hous. andUrban Dev., American Housing Survey or the United States: 2007, Pub. No. H150/0, 8 .- (8),available at p://www../p/8p/-.p ( .64 w, .66

w w p , 6. w w % p ).

9SeeJ D. G,Another Hurdle or Jobless: Credit Inquiries, N.Y. imes, A. 6, 9, A (p 4p p k j).

J Sz, Vk B I G E, Neighborhood Eects o Concentrated Mortgage Foreclosures (NYUC Lw E., Lw E. R Pp S, Wk Pp N. 8-4, 8), available atp://pp../3/pp.?_= ( p w [] p p, p w pp w w ).

Center or Resonsible Lending, supra , .. T p[] . . . , [ ] w [p] k. Id. .

See generallyWilliam C. Agar & Mar Duda, Collateral Damage: he Municial Imact o odays MortgageForeclosure Boom (), available at p://www.99p.//p/Ap_D_S_S_V.p( p).

3 Joint Econ. Comm., 110th Cong., Sheltering Neighborhoods rom the Subrime Foreclosure Storm, (), available at p://j../.?FA=F.VwFS_=83884-64-48-8-6868.

4SeeU.S. Conerence o Mayors & Council or a Ne Am. City, U.S. Metro Economies: he Mortgage Crisis-6 (), available at p://.///p.p ( N p p pp , , p ).

Maority Sta o Joint Econ. Comm., 110th Cong., he Subrime Lending Crisis: he Economic Imact on

Wealth, Proerty Values and a Revenues, and Ho We Got Here 3 (), available atp://j../.?FA=F.VwFS_=48-6-4--666.

6 E S, Atlanta Might Sue Mortgage Lenders, Atlanta J.-Const., Ap. , 9, B, available atp://www.j.//////9/4//___..

D Ik G S, Te Impact o Single-amily Mortgage Foreclosures on Neighborhood Crime, HousingStud. 8, 86 (6), available atp://www.p../~/HS.p.


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4 | B C J

8 Vk Bjj, A Grim Season is Forecast or Home Sales in the U.S., Int. Herald rib. (M 8, 9), p://www.k.//wSkNw//39964.

9 Deaulting on the Dream, supra 3, 4.

3

See Hwp P F, About Foreclosure, Common Myths, p://www.99p./-/-/ ( M. , 9).

3 Congressional Oversight Panel, supra , 3.

3 M w z. Id. 4-4.

33Id. 4; P S. G, Lucrative Fees may Deter Eorts to Alter Loans, N.Y. imes, J. 9, 9 A.

34SeeMelvin L. Oliver & homas M. Shairo, Blac Wealth/White Wealth: A Ne Persective on Racial Ineuality66 (6).

3 S Raesh Kochhar, Ana Gonale-Berrera, & Daniel Docterman, Pe Hisanic Center, hroughBoom and Bust: Minorities, Immigrants and Homeonershi , (M 9), available atp://pwp./

/p/9.p (p w );Janis Bodler, National Council o La Raa, Jeoardiing Hisanic Homeonershi: Predatory Practices in theHomebuying Maret 4- (M ), available atp://www..//p//396/ (p p p Hp p ).

36SeeFishbein & Woodall, supra , 4 (p A A w p (p, p ) p . M L p . I p, w w

A w p .); Calvin Bradord, Ctr. or Cmty. Change, Ris or Race Racial Disaritiesand the Subrime Reinance Maret 6 (M ), available atwww.-w./-p//Bk-Rp/C%%C%C%Rp.p (Lw- A-A .4 p w- w, w pp- A-A 3. p w w p . Lw- Hp .4 p w- w, w pp- Hp . .).

3 Board o Governors o the Fed. Reserve Sys., 2nd Annual Reort 99 (), available atp://www..//p//p/.p; see also R B. A, K P. B, G B. C,H-P H L HMDA D, Fed. Reserve Bull. A4, A9 (6) ( p p.); R B. A, G B.C R E. Ck, New Inormation Reported Under HMDA and Its Application in Fair Lending Enorcement, 9 Fed.Reserve Bull. 344 (); Fishbein & Woodall, supra .

38 A, B, C, supra 3, A, A39 ( HMDA , k , k Hp w w k, A w k, w p HMDA p-p -Hp w w.).

39 Cal. Reinv. Coal., et al., Paying More or the American Dream, he Subrime Shaeout and Its Imact onLoer-Income and Minority Communities (M 8), available at p://www.wk./p/

w/p------%--p-k---p--w%---/.

4 National Community Reinvestment Coalition, p 6, 9. O p p - p , p pp-. SeeK Dw, High Cost Loans More Common in Prince Georges County, Wash. Post, M. , , A;Congressional Oversight Panel, supra , .

4 See, e.g., Joint U.S. Det o Hous. & Urban Aairs & Det o reasury as Force on Predatory Lending,


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B C J | 43

Curbing Predatory Home Mortgage Lending (J ), available at p://www../p.p?=/P/p/p.p (Up k p p - , , w w w p -p .); M Pw,Bank Accused o Pushing Mortgage Deals on Blacks, N.Y. imes, J 6, 9, A6 (p W F k p

, w w w q p p ); Mk W D H, Color o Money; Lenders More Likely to Give Minorities Costly Loans, ColumbusDisatch, J 3, 8, available atp://www.p.///_w//8/6/3/M.AR_

AR_6-3-8_A_HVACNFV.?= ( k w O w k w w w); S K, More U.S. Home Buyers FallPrey to Predatory Lenders, USA oday (D. 6, 4) (R , w w k p k w - , k w k p pp k z p .). A w p. See, e.g.,Bk . Op M C., N. 4 CV 8(RJD)(KAM) WL438 (E.D.N.Y. A. , ) ( U H .); Rz . Gp M F, I., N. C8-369, 8 WL 8(N.D.C. M 3, 8) ( z k j kp Gp p -w w p

w w w w w.); M . Cw Bk, N.A., F. Spp. (D. M. 8) ( p p wp p k pp , Eq C Opp A F H A.); NAACP . W F, CV 9-8 (C.D. C.)( W F w pp p q .).

4SeeJoint U.S. Det o Hous. & Urban Aairs & Det o reasury as Force on Predatory Lending, CurbingPredatory Home Mortgage Lending (J ), available atp://www../p.p?=/P/p/p.p ( [] w p k : p , p , , k w p . Hw, w , k p p w.).

43 Amaad Rivera, et al., United or a Fair Economy, Foreclosed: State o the Dream 200 (J. , 8),available atp://www..//SOD__6_8_W.p.

44Id.

4 D Ik G S, Te Impact o Single-Family Mortgage Foreclosures on Neighborhood Crime, Hous.Poly Debate 51, 5 (200).

46 D Ik G S, Te External Costs o Foreclosure: Te Impact o Single-Family Mortgage Foreclosures onNeighborhood Crime, Hous. Poly Debate 57, 70 (200).

4 Furman Ctr. or Real Estate and Urb. Poly, S Nw Yk C H N (8), 8,available atp://.//8/S___C_8.p.

48 See J P. R, Foreclosures, Integration, and the Future o the Fair Housing Act, 4 Ind. L. Rev. 69, 6 (8)( q w p

w p w p w p ).

49SeeT M. Sp, Race Homeownership and Wealth, J.L. & Poly 3 (6) available atp://w.w./J//p3Spkp.p ( p w w A A w


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44 | B C J

wp A A ppp p).

W J. C R A. M, N B E. R, Race and Home Ownership: A Century-Long View,38 Elorations in Econ. History 68, 3 () ( 9 9 , w wp ); U.S. Census Bureau & U.S. Det o Hous. & Urb. Dev., American Housing Survey, Annual Statistics (8)

, available at http://www.census.gov/hhes/www/housing/hvs/annual08/ann08ind.html (w Hwp R R E H pk) ( 8 ).

George Masnic, Joint Ctr. or Hous. Studies, Home Onershi rends and Racial Ineuality in the UnitedStates in the 20th Century 3 (F. ), available at p://www.j../p/wp/k_w-4.p.

Christoher L. Peterson, Kiran Inst. For the Study o Race and Ethnicity, Subrime Lending, Foreclosure and Race: An Introduction to the Role o Securitiation in Residential Mortgage Finance 3 (D. 8),available atp://49999363443334.p./p/P_Sz_P.p ( Christoher L. Peterson, aming the Shars: oards a Cure or the High-Cost Credit Maret 8(4) ( A )).

3 M S. C, Development o Federal Homeownership Policy,9 Hous. Poly Debate 99, 3-8 (998).

4 T W. H, Te Other Subsidized Housing: Federal Aid to Suburbanization, 1940s-1960s, in From enementsto the aylor Homes: In Search o an Urban Housing Policy in entieth-Century America 66-68 (J F.B, R B, K M. Sz ., ).

M B. Lw ., Te Current State o Residential Segregation and Housing Discrimination: Te United StatesObligations Under the International Convention on the Elimination o all Forms o Racial Discrimination, 3 Mich. J. Race &L. 33, 36- (8) ( D M.P. F,Marketing the Free Market: State Intervention and the Politics o Prosperity in

Metropolitan America , in he Ne Suburban History , 6 (K M. K T J. S ., 6)).

6SeeW B. S J P. R, Rf A C, R A Uw Ep M Hwp: C P 9, -, 6 (F M ., ); see also SB C W, Financial Literacy: An Overview o Practice, Research, and Policy, 88 Fed. Res. Bull. 44, 446() ( ... p k , w

k p p w p . Tpp p p p . Hw, p . Q k q p ppp .).

SeeCongressional Oversight Panel, supra , 3-48.

8 p Iw w M A, E D, L A S G C (F. , 9).

9 B B C k F, O, I, N, C, Az, I,M, G O. D w R, p://www../MpS/ ( J , 9). See also Mk Sk, Te Home You Save Could be Your Own: In Foreclosure Crisis MoreHomeowners Representing Temselves in Court, MSNBC, J. 8, 9, p://www...//883/ (T w kw w pro se U.S. ,

w w w , w ppp.).

6 B B C w w 69 k p p 68 Sk C, O 8, - p://www.kj./k/.. Dk 8 w p B C Sk C Ck C O. N p p, p p pp w ( p pp p). A w p w k


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B C J | 4

pp , w w , w w p. D k p pro sew p w, w 69 B C w. C -w p pp w .

6

D C J B C Op ( w B C) F Y 8. N p pp w ( p pp p). C -w p pp , C JB p p. p Iw, G P, j , C J B, Sp , 9.

6 p Iw w B H, C C, Ep J C (F. , 9).

63 R, Foreclosure Laws and Procedures by State, p://www../-w/-w-p.p ( J , 9).

64 F p wk , seeJohn Rao & GeoWalsh, National Consumer La Center, Foreclosing a Dream, State Las Derive Homeoners Basic Protections

(F 9).

6In reF C, N. :CV8, q., WL 3343 (N.D.O O. 3, ).

66 D Nw Yk S U C S, O C A, D p, -, - w Rq J I w w N , 8 M , 9 ( w B C). I Nw Yk, p, -, - , w J , 3 Sp, 8, w / p . SeeF P Rp L A, 8 N.YLw . 4; N.Y. Bk L. 6- (9). Rp w p w p w . Ck R (S I), Q, N C p w p , .., p pp. L p w p , q

. I w w , p w w p . p Iw, Jp C, C Ck, R C Sp C; M Dq, FDp C Ck, Q C Ck O; K D Hpk, C Ck, N C Sp C;S Dk, Pp M A, Nw Yk S U C S, O C A,D (Sp. 4 - 8, 9). D Nw Yk w R,Nw Yk F R, p://www../MpS/Nw%Yk. ( Sp. 8, 9).

6 I Sk C, O, p 38 , w p 8. SeeL H, Help Available to Avoid Foreclosure, Ap. ,9, he Revie, available atp://www.-w./w//443. C - p p J 9. , 34 p w ( w-p , w, pp) k p. SeeDS. M, Foreclosure Mediation Becomes Mandatory, Conn. La rib., J. 8, 9, available atp://www.w./.p?ID=33993. Nw Yk - p w w

p, , - , . A Nw YkS S w p -p . SeeJ Pkk, US Mayors Urge Statesto Require Mortgage Mediation, Reuters, J. , 9, available atp://www..//pNwAPR/USN896. O j p p p.See Id. M p w w w w p. T w w p p . Hw, q p w , w j p w , Nw Yk C. T p w w


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46 | B C J

, w w , p , . pIw, M F, S Bk L S; Mk Lw, L A S G C; JL, L S NYC-B; Aw Pz, N C Lw C; M G, B NO L A S (Sp. 4 - 8, 9). F w p p , seeG W, National Consumer La Center, State and Local Foreclosure

Mediation Programs: Can Tey Save Homes?(Sp 9).68 B Rwz,Mortgage Woes in Massachusetts Lead to Spike in Pro Se Debtors Under Chapter 13, Mass. L. Wly.,O. 8, .

69 L C J R M. B, M. C. App., M Lw (J , ) ( w B C).

SeeJ D. G, In A Downturn, More Act as Teir Own Lawyers, N.Y. imes, Ap. , 9, B.

R S, Bankruptcies, Foreclosures Send Folks in Search o Free Legal Help, Orange County Register, Ap. ,9, available atp://www..//-p--366--.

Id.

3

Legal Servs. Cor., Legal. Servs. Cor. Budget Reuest, Fiscal Year 2010 (9), available atp://www../p/.p.

4SeeH M. B, P Legal Servs. Cor., Documenting the Justice Ga in America: he CurrentUnmet Civil Legal Needs o Lo-Income Americans (. . ).

See generally, W H J M. S, Te Right to Counsel and Civil Rights: An Opportunity to Broaden theDebate, 4 Clearinghouse Rev. , (J-A. 6) ( w k p w).

6 B, supra 4.

Id.

8

G, supra , B.

9SeeR L. S, Elements o Expertise: Lawyers Impact on Civil rial and Hearing Outcomes4 (M. 6, 8) ( w B C).

8 Sp, % p j p w % w p. C S, G V Rz, M Fk J K, Te Impact o Legal Counsel on Outcomes

or Poor enants in New York Citys Housing Court: Results rom a Randomized Experiment, 3 La & Socy Rev. 49, 43-6 (). S, B, M, p p p w p p 83% p w p p p 3% p w . SeeJ Mp, Engaging with the State:Te Growing Reliance on Lawyers and Judges to Protect Battered Women, AM. U.J. Gender Soc. Poly & L. 499, -(3). A B w w w w k w w, w w k w z. See

D L. C ., Do Attorneys Really Matter?TeEmpirical and Legal Case or the Right o Counsel at Bail, 3 CardooL. Rev. 9, -6 ().8 R L. S, Elements o Expertise: Lawyers Impact on Civil rial and Hearing Outcomes8-9 (M. 6, 8) ( w B C).

8 O W, Foreclosures Final Act; Areas Homeowners Fears Unold in High-Stakes Courtroom Dramas, Wash. Post, J.3, 9, A (M [w ] k pzz, w wk. T w j ppp w q


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B C J | 4

p w k w . Fw pp .).

83 S Pk L. C, S J C., S I F E R A 9 (F , 9), available atp://../p/9/9.); see also Financial CrimesEnorcement Netor, Filing rends in Mortgage Loan Fraud: A Revie o Susicious Activity Reorts Filed

July 1, 2007 through June 0, 200 (F. 9); Merle Sharic, Erin E. Omba, Nic Larson, & D. James Crot,Mortgage Asset Research Institute, Eight Periodic Mortgage Fraud Case Reort to Mortgage BanersAssociation (Ap. 6).

84 M Pw, Prosecutions Lag as N.Y. Foreclosure Frauds Surge, N.Y. imes, Ap. 4, 9, A.

8Id.

86 U.S.C. 6 (9). A, , , p, p , . T F H Owp Eq P A(HOEPA) U.S.C. 6(), 639, 64()() (9) L A, q p w p .M p p p.

8

U.S.C. 69 (9). T A w w, q p , w p . V A w w .

88 U.S.C. 6 (9). U F R E S P A, p k p. T A p kkk . T A p w w p.

89 4 U.S.C. 36 (9). S , - , w , A. See e.g., Mz .I H Cp Cp., N. C 3-99 RS, 4 (H, p p 36.); J . Eq Cp. A., N. C 9, U.S. D. LExIS 48, 8 (N.D. I.M. , ) (B p 4 U.S.C. 36,

.); Mw . Nw C M Cp., 8 F. Spp. 84, 886-8 (S.D. O );NAACP . A. F M. I. C., 98 F. 8, 3 ( C. 99); H . Cp C M Cp., 4 F.Spp. , (D.D.C. ).

9 D , p, w p w wk w w . I , ( p, Cp C, O T Sp) w pp p w. F p, O Cp C w Nw Yk A G E Spz p k p w. T Sp C p p k . SeeC H A .C, --S. C.--, (9) WL 8348 (J 9, 9). See alsoFederal Deposit Insurance Corporation on Modernizing BankSupervision and Regulation Beore the Comm. on Banking, Hous., & Urban Aairs., C.(M 9, 9) ( S B, C, FDIC) (F pp p w p

k w W , w w, p p w, pp k --- ).

9 Sk, supra 9.

9 M Pw, Prosecutions Lag as N.Y. Foreclosure Frauds Surge, N.Y. imes, Ap. , 9, A.

93M Pw, Schumer Seeks Grants to Battle Mortgage Fraud, N.Y. imes, Ap. , 9, A.


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48 | B C J

94 he National Fair Housing Alliance, Dr. Kings Dream Denied: Forty Years o Failed Federal Enorcement:200 Fair Housing rends Reort (Ap. 8, 8).

9 L , w, k . C S % -k ,

w p 8 9 6.3 . SeeCredit Suisse Fied IncomeResearch, supra 8, . A Dp, k pp pp p. See U.S. Det. o reasury, Homeoner Aordability and Stability Plan:Eecutive Summary (F. 9, 9), available at p://www../p//33..

96SeeA M. W, Deleveraging the American Homeowner: Te Failure o 2008 Voluntary Mortgage Contract Modifcations,Conn L. Rev. ( 9) ( 3. p -A ,68% p pp, pz p z . Fw J 8 w p N , 8).

9 p Iw w N C, M A, C R U, G B L S (M.8, 9).

98

T M. A .

99 Oice o the Comtroller o the Currency and Oice o hrit Suervision, Mortgage Metrics Reort:Disclosure o National Ban and Federal hrit Mortgage Loan Data, Fourth Quarter 200 (Ap 9),available atp://.../4836.p.

p Iw w M A, E D, L A S G C (F. , 9).

F R B, Five ips or Avoiding Foreclosure Scams, p://www../p/p/. ( J , 9); see also National Consumer La Center, Dreams Foreclosed: he Ramanthet o Americans Homes hrough Euity-Striing Foreclosure Rescue Scams (J ), available atp://

www.w./w/FRpF.p ( p ).

F p W , seePp Sk, When Rescue Means Eviction, Wall St. J., F. , 9, available at

p://.wj.//SB36896434..

3 p Iw w C Q. L, P R, U Rz Pj, C S J,S H Lw S (Ap. 6, 9).

4 B R A P, On Hold: Even Congresswoman Gets the Runaround on Bank Help Lines, ABC Nes, J. , 9,available at p://w../B/S?=63p=; see also Neighborhood Housing Services OChicago, Inc., Lessons From he Front Lines: Counselor Persectives On Deault Interventions (O. 9, ),available atp://www../w/8366LFLO.p ( w ).

E,Mr. Obamas Foreclosure Plan, N.Y. imes, F. 8, 9, A6.

6 A Z, US Unveils More Help or Homeowners, AOL Mon. & Fin., M. 4, 9, available atp://..

//---p-/44996; see also E Y,Mixed reviews on LI or Obamas AordableHousing Plan, Nesday, M 4, 9, available at p://www.w.//-z68644,,3438. (p , w p w p, w , p, w j O p, .).

H E. C, Lawyers Sought or Foreclosure Prevention, Wash. Post, D. 4, 8, PG.


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B C J | 49

8 Congressional Oversight Panel, supra , 39.

9SeeAndre Jaabovics, Center or American Progress, HOPE NOW Needs Hel: Housing Crisis ReuiresFederal Action, M 4, 8, available atp://www.p.//8/3/p_w. ( , wk , wk p p

p . M , p p - w.).

p Iw w S B, A, A L A S (Ap. , 9).

p Iw w J MC (Ap. 9, 9).

A Good Day in the Home Deense Program, F C D Rp, A L A Dk, D , 8.

3See generallyKiran Inst. supra , - ( p z).

4 B I, Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish, B., F. , 8, available atp://www../pp/w?p=69=jJZqCM=.

Congressional Oversight Panel, supra , 1-2.

6SeeB I,Mortgage Note Issues Help Debtors Avoid Foreclosure, B Nw (F. 3, 8), available atp://www..//8//3/33/z----p---/_3/#.

K M. P,Misbehavior and Mistake in Bankruptcy, 8 e. L. Rev. (8).

8Mortgage Note Issues Help Debtors Avoid Foreclosure, supra 6. O j, , , Uk , kp, w q w p . C w pp p, w j p , j . T p , , p q w p. F p , wk p C p . In reF C, N. :CV8,

q., WL 3343, *3 (N.D.O O. 3, ).

9See generallyM S, Sliced, Diced Mortgages Buy Owners ime, Orlando Sent., F. 8, 9, available atp://www..//wpp/p/w/-898,,9338.; MortgageNote Issues Help Debtors Avoid Foreclosure, supra 6; J C, Homeowners Facing Foreclosure Demand Proo o

Mortgage Ownership, Real Est. Pro Art., F. , 9, available atp://www.p./A/68/6/Hw-F-F-D-P--M-Owp.; M B A Kw, DeutscheBank Foreclosures ossed Out o Ohio Federal Court Tey Own Nothing!, IamFacingForeclosure.com, N. , ,available at p://./////-k---------w-/.

P, supra , .

Iw w A B N, D, S. A F P Pj, (F. , 9).

P, supra , 36.

3 A w kp w j p w S. SeeSp L, Senate Reuses to Let Judges Fix Mortgages in Bankruptcy, N.Y. imes,

Ap. 3, 9, B3.

4 Danilo Pelletiere, National Lo Income Housing Coalition, Recogniing Renters in the Foreclosure Crisis (200), available atp://www..//NLIHC-R--F-UCLA--9.p; see also Rhode Island


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| B C J

Legal Services, Moving Out Rhode Island:An Analysis o 200 Foreclosure Related Evictions (J 9), availableatp://www../P//Up/D/P/E%Rp.p ( R I w ).

SeeC Dp, States Move to Help enants Stung by Foreclosure, NPR.com, M 9, 9, p://www.p./

p//.pp?I=49 (p w p q ); A S, Foreclosures Reach Renters: enants FrequentlyEvicted i Landlord Loses Property, he Atlanta Journal-Const., D. , 8, p://www.j.///p/8///. (p G w pp p ).

6SeeR J. R, Foreclosure Crisis: Both Owners, Many enants to Be Homeless, N.Y.L.J., J 6, 9, availableatp://www..///PDF/.p ( p pp).

See, e.g., E E Sz A 8, P. L. N. -343, 9, S. 36, 3 (8)(p T S w Cp, B [ F G ] p pp q w p S,w p, p w

.).

8 Pp Rk, Sweeping Bills Passed to Help Homeowners, Wash. Post, Ap 3, 8, A.

9SeeEz B, Loan Servicers Meet Over Ordinance on Foreclosed Homes, Ne Haven Reg., Ap 9, 9.

3SeeH.B. 643, 9 G. A., R. S. (C. 9).

3See9- Appp B (SA AA): L J, N.Y. A. (N.Y. 9), available atp://www../p/---9----j.

3 W p L A S Sw O, z LS Cp .

33

T , I Lw A (IOLA) p, p , I F L A, pj C Rp L, -LSC p. SeeLegal Servs. Cor., Legal Services Cororation Fact Boo 2007, -8(8), available atp://www../p/k.p.

34 p Iw w K Sp, E D, F L S (Ap. , 9).

3 p Iw w J L, P M, F P P B Pj, P BR C M (F. 9, 9).

36 W w p , p p p w , . SeeModel Code o Prol Conduct R. . ().

3 p Iw w K Sp, E D, F L S (Ap. , 9).

38 T p Ap, F R E F A 9 w C. T A w p p Dp J D A . T z $ FY FY 3. See also M Pw, Schumer Seeks Grantsto Battle Mortgage Fraud, N.Y. imes, Ap. , 9, A.

39SeeG M, Baltimore is Suing Bank Over Foreclosure Crisis, N.Y. imes, J. 8, 8, A; Bank Accusedo Pushing Mortgage Deals on Blacks, supra 4, A6.


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56/59

| B C J

M R A-P L A, H.R. 8, C. 6 (9).

8Id.

9 he Brennan Center or Justice, he Economy and Civil Legal Services,(F. ,9),p://www..

///_____/.6 M V, Legal-Aid Groups or the Poor Endure Severe Budget Reductions, AP/ Seattle Post-Intelligencer (N. ,8), p://p.w.//38989_8..

6Aid or Legal Aid, he Hartord Courant, D. 9, 8, A9.

6 J H ON, Legal Aid Funding Vital to At-Risk exans, San Antonio Eress-Nes, M , 9, p:// www../p/L_____-k_.. T , w w p p p , p w- w p.

63Dayton Foreclosures Rank 5th in Ohio, Dayton Business Journal, Ap. , 9, p://www.zj.///9/4//4..

64 Legal Serv. Cor., Background Legal Services Cororation Budget Reuest, Fiscal Year 2010 (9), availableatp://www../p/.p.

6 P R, I F L A, Hp A Kp T H: I A $.4 MM G Hp F F F (F. , 9) available atp://www../.

66 Bk . Op M C., WL 438 (E.D.N.Y. A. , ).

6Id. *.

68 North Carolina Legal Services Planning Council, North Carolina Stateide Legal Needs Assessment 49(3), available atp://www../P/Pp/L_S_C/EqJA/NC%Sw%N%A%3%4%3.p.

69 O C R Appp A 996, P. L. N. 4-34, 4(), S. 3,3-3-3-6 (996). C w p ppp LSC.

See Closing the Justice Gap: Providing Civil Legal Assistance to Low-Income Americans: Hearing Beore the S. Comm. on theJudiciary, C. 4 (8) ( Rk D, Dp D, J P, B C J Nw Yk U S Lw).

SeeCarolyn L. Carter, Natl Consumer La Ctr., Consumer Protection in the States: A 50-State Reort on Unairand Decetive Acts and Practices Statutes (F 9), available atp://www..//p//UDAP_Rp_F9.p. U Dp A P S (F 9) p://www..//p//UDAP_Rp_F9.p

D . C, 84 N.Y. 3, 8 (99) ( Nw Yk R Pp Lw 34 w p w p ).

3 See Cal. Legal Servs. Coordinating Comm., Caliornia State Justice Plan 2001: Resonse to LSC ProgramLetter 2000-1 3 (), available atp://www.../_p//__.p.

4Id.

SeeD, supra .


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B C J | 3

6See e.g.,Monetary Policy and the State o the Economy: Hearings on the Conduct o Monetary Policy Beore the H. Comm. onFinancial Services, C. 9 (9) ( J G, L M. B, J. C G/BR, L B. J S P A, T U A S S, L EI) ([] w z k. w [z

p], p p kk w, p w ,, - w .).

See generally, Northeastern Univ. Sch. o La, Program on Human Rights & the Global Econ., Access to CivilJustice: Racial Disarities and Discriminatory Imacts Arising rom Lac o Access to Counsel in Civil Cases8 (D. , )([] k k pp j U.S.), available atp://www.wk.////k/CERD/4_A__C_J.p;M Pw J R,Minorities Aected Most as New York Foreclosures Rise, N.Y. imes, M 6, 9, A.

8SeeSp, supra 49.

9SeeClosing the Justice Gap: Providing Civil Legal Assistance to Low-Income Americans?: Hearing Beore the S. Comm. on theJudiciary, 110th Cong. (M , 8) ( L J. L, J., 6 D C , M,S C L A I D, A B A).

8SeeB U.S. G, F Y App, 43 (M 8, 9), available atp://www.w./////.p .

8Appp Dp C J, S, R A F Y ,H.R. 84, C. ( p H.R., J 8, 9).

8 T p , p, C L S Pp.

83 R M F D P P, J G C R N. 8-, F JD Pp C C P Pp C (Ap 6, 8), available atp://.p./p//8/pj-8-.p

84 Mk Sk, Hyde Crating Foreclosure Mediation Legislation, Fin. Nes & Daily Rec., M 9, 9, p://www.

j./w.pp?S_=9.

8SeeRao & Walsh, supra 64, 49.

86 T ABA p p w- -k , w . Am. Bar Assn, Reort to the House o Delegates No. A(6), available atp://www..///w /6AA.p. I Nw Yk, p Nw Yk C C w w- .I Ok, w wpro se pp , w p w. I C, w z - S A. See also P M L K A, Current Developments In Advocacy o Expand Te Civil

Right o Counsel, ouro L. Rev. 3 (9) ( p ).


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Foreclosures: A Crisis In Legal Representation