Coleman Voted with George Bush and Mortgage Industry – Against Foreclosure Relief, Stronger Community Development Block Grants
Coleman Voted Against Foreclosure Prevention Act of 2008. In February of 2008, Norm Coleman lined up with Senate Republicans, George Bush and the Mortgage Bankers Association in his vote to block the Foreclosure Prevention Act of 2008 from being considered in the Senate. The Democratic bill would have provided more money for homeowner counseling programs and allowed bankruptcy judges to reduce the terms of a mortgage for people about to lose their houses through foreclosure. The Foreclosure Prevention Act would have directly prevented a quarter of the expected Minnesota foreclosures and the resulting lost value to surrounding homeowners. It would have also helped communities turn over foreclosed properties so that they don’t sit unoccupied, attracting crime and blight and further hurting homeowners. Coleman was not even willing to debate the merits of the bill or try to change the provisions he didn’t like – he voted to block the bill from being considered. [Senate Vote 35, 2/28/08; DSCC Press Release, 2/28/08; New York Times, 2/29/08; DSNews.com]
Bill Included Increase to Community Development Block Grants (CDBG). The Foreclosure Prevention Act would have authorized a $4 billion increase in community development block grants for local governments to buy and recondition foreclosed homes in distressed areas. In a 2007 press release, Coleman claimed to be a champion for the CDBG program: “Coleman has been a champion of the CDBG program and has fought in recent years to prevent harmful cuts to the program. This year, Coleman lead a bipartisan effort to reject the Administration’s proposed 20% cut in funding and instead provide level funding. In 2005, the Senate adopted by a vote of 68-31 a Coleman amendment to Fiscal Year 2006 budget resolution to maintain funding for CDBG and keep CDBG within the Department of Housing and Urban Development.” [Las Vegas Review-Journal, 2/28/08; Office of Senator Coleman, Press Release, 12/12/07; Democratic Policy Committee, 2/28/08]
Increase in Community Development Block Grants Would Have Helped Localities Hit Hard by Foreclosures. The increase in CDBG would have provided $4 billion in funding for communities to purchase and redevelop foreclosed-upon properties. Homes that have been foreclosed-upon and are sitting unoccupied on the market can sap neighboring homes of their value, and lead to a cycle of community distress. Title II of S. 2636 allows localities with the highest foreclosure numbers and rates access to Community Development Block Grant (CDBG) funds to use toward purchasing these properties, rehabilitate them if necessary and rent, re-sell or otherwise redevelop them. Productive occupancy of foreclosed homes will help stimulate economic activity and help prevent further loss of home equity in struggling neighborhoods. [Democratic Policy Committee, 2/28/08]
Coleman Voted Against Protecting Debtors from Lenders Who Violate the Truth in Lending Act. In March 2005, Coleman voted against an amendment that would have prohibited high cost mortgage lenders from collecting on their claims in bankruptcy court if they extended credit in violation of the Truth in Lending Act, which requires for lenders to fully disclose terms and conditions in writing. The amendment was rejected 40-58. [S 256, Vote #22, Rejected 40-58 (R1-54; D38-4), 3/3/05]
Coleman in Top Ten Recipients of Campaign Cash from Mortgage Banking Industry Coleman Has Taken $40,540 from the Mortgage Banking Industry Since Running for US Senate:
Coleman Took $16,700 from Mortgage Banking Industry; 8th Most of All Senators in ’08 Cycle. According to campaign finance reports, Norm Coleman took $16,700 from the mortgage banking industry during the 2008 election cycle. This places Coleman as the 8th highest recipient of contributions to Senators from the mortgage banking industry during the ’08 election cycle. [Center for Responsive Politics]
Coleman Took $23,840 from Mortgage Banking Industry in ’02; 8th Most of All Senate Candidates in ‘02. According to campaign finance reports, Norm Coleman took $23,840 from the mortgage banking industry during the 2002 election cycle. This placed Coleman as the 8th highest recipient of contributions to Senate candidate from the mortgage banking industry during the ’02 election cycle. [Center for Responsive Politics]
Coleman Took Over $389,000 from the Real Estate Industry. According to campaign finance reports, Norm Coleman took $389,902 in individual, PAC and member donations from the real estate industry since 2003. [Campaign for Responsive Politics]
Coleman Took Over $23,000 from Groups Opposed to Foreclosure Prevention Act
Coleman Took Over $23,000 from Two Special Interest Groups that Strongly Opposed the Foreclosure Prevention Act. Since his first run for the Senate in 2002, Norm Coleman has taken $23,500 from two groups who recently banded together with other mortgage banking institutions to fight the proposed Foreclosure Prevention Act of 2008:
Coleman Took $13,500 from the American Bankers Association, who Vowed to “Lobby Very, Very Strongly” Against the Foreclosure Prevention Act. According to campaign finance reports, Norm Coleman took a total $13,500 from the American Bankers Association: $3,500 during the ’08 election cycle and $10,000 in his ’02 Senate run. When speaking of their opposition to the Foreclosure Prevention Act of 2008, the president of the American Bankers Association, Edward L. Yingling, said: “We will lobby very, very strongly against it.” [Center for Responsive Politics ’08; Center for Responsive Politics ‘02; Washington Post, 2/22/08]
Coleman Took $10,000 from the Financial Services Roundtable PAC. According to campaign finance reports, Norm Coleman took $2,000 during the ’08 cycle; $2,000 in ’04 and; $6,000 in ’02. [Center for Responsive Politics ’08; Center for Responsive Politics ’04; Center for Responsive Politics ’02]
