A few weeks ago our country celebrated Veterans Day, a day when the country remembers individuals' sacrifices, proudly gives away medals, and talks about the bravery and service of former military members.
What happens to many veterans and their families on any other given day in this country? Many veterans are homeless, and many are victims of foreclosure fraud, having lost their homes or engaged in the fight to prevent fraudulent foreclosure by the big banks. According to a report last year, over 700 foreclosures were conducted against active-duty service members by Bank of America, Wells Fargo, JPMorgan Chase and Citigroup.
But it gets worse, because not only are the veterans themselves at risk: so, too, are their widows.
Brenda Reed is a Vietnam War widow. Her husband, Eddie, was killed in action in 1968 while serving as a company commander in the U.S. Army’s 9th Infantry Division in the Mekong Delta. Eddie gave his life while helping to save the lives of 130 other men. He earned two Purple Hearts, a Silver Star, a Bronze Star and other commendations and medals honoring his bravery and his life.
Brenda's Foreclosure Crisis
After her husband’s death, Brenda raised their two children on her own; her boy was three-and-a-half at the time of his father’s death, and her daughter was born six days after he was killed. She now has four grandchildren. Her husband Eddie is considered a hero in their hometown of Kingsport, Tenn., where a bridge was recently named in his honor.
Brenda has owned her home for 44 years and currently runs a B&B. Brenda purchased her home in Oakland, CA in 1973. She refinanced several times over the years to meet the needs of her family and various medical situations. After she lost her home in a fire in 1991, Brenda rebuilt it despite many challenges. Additionally to managing it as a bed and breakfast, she was also able to become an EEO mediator.
I asked Brenda to describe what led her on the path of uncovering and then fighting mortgage and foreclosure fraud in her own case:
"In October 2007 I refinanced my mortgage. The lender was stated to be 'Washington Mutual Bank FA,' a federal savings bank. Shortly afterwards I suffered a back injury which impacted my ability to travel and do certain physical activities, resulting in a loss of income.
"By April 2009 I was unable to meet my already huge mortgage payments. In July 2009, JPMorgan Chase Bank filed a Notice of Default at the time I was consulting with their mortgage department. In August 2009 I entered into a three-month Trial Modification with Chase and successfully made five monthly payments.
"On the anniversary of my husband’s death (2/1/2010) a Chase rep informed me that I had been turned down for a permanent modification and that foreclosure was imminent. I declared Chapter 7 Bankruptcy which stopped further action till August 2010. I have been fighting with my entire being ever since. Recently I filed a lawsuit against JPMorgan Chase Bank and Antonelli Law (formerly California Reconveyance Company.) It may be my final option to save my home."
What follows is my interview with Brenda Reed:
Senka Huskic: When did you realize that your mortgage documents were infested with fraud?
Brenda Reed: As I met others like myself through friends, the Home Defenders League and NACA (Neighborhood Assistance Corporation of America), I became aware of incredible wrongful acts. There are many more, such as: falsification of my loan application, misstating my income and assets, deceptive lending practices including failure to identify the true lender, and robosigning.
SH: When you decided to challenge the servicer of your mortgage, what did you have in mind?
BR: I wanted to do a workout with the lender – get a modification, perhaps a principal reduction so I could hold on until an opportune market to sell my home so I could pay off the mortgage and move forward. Due to five and a half years of fighting to save my home, I want my home and justice. Realistically I may not have either.
SH: Did you think that this would be an easy fight since the fraud was obvious? Could you even comprehend the immensity of the uphill battle that was in front of you?
BR: I never had any illusions that the task would be anything but huge. I never dreamed I would be back to square one countless times. JP Morgan Chase’s antics early in the game prepared me that they would do anything to win – win at all costs.
SH: Did you contact any of the local, state, or federal politicians in regards to your mortgage fraud?
BR: I contacted U.S. Senator Diane Feinstein, Congresswoman Barbara Lee, Attorney General Kamala Harris and her staff. Lee did nothing for me. Feinstein appeared to help. I contacted the Gold Star Wives of America who contacted various Congressional leaders on my behalf. I filed complaints with the Office of the Comptroller of the Currency, over and over again, and recently the Consumer Financial Protection Bureau – all exercises in futility.
Exasperated, I personally organized a demonstration at a foreclosure auction on the Alameda County Courthouse steps where we subjected to taunts and verbal abuse. I then allied myself with Alliance of Californians for Community Empowerment (ACCE) and the Home Defenders League. We took our case to the banks with sit-ins, etc. Our first major action was Make Banks Pay, in San Francisco. Several of us occupied a Chase Bank branch where we were arrested and released. I felt like we were making a difference back then, but now it seems that the banks are more brutal than ever.
Through ACCE and HDL, I worked with AG Harris’ office on the mortgage bank settlement and the Homeowner’s Bill of Rights. I marched, lobbied and testified in Sacramento at the State House. I marched and occupied for a very long time. The stress caught up with me so I focused my activism on my legal case and my blog Victory Over Chase. I was exhausted but not defeated.
SH: Could you talk about your testimony in front of the California Legislative Conference Committee?
BR: Go here to see the video. What a challenge it was to sit in the audience and listen to hours of deception and lies from the bankers! Finally at the end of an exhausting day I had my opportunity to speak truth to the Legislature. I had to dig deep for the strength and energy to be present and accounted for on behalf of the thousands of borrowers defrauded and vilified by the banks. My voice was stressed and I was shaking. I spoke my truth and the Legislators listened. Shortly thereafter they passed the Homeowners Bill of Rights – a good first step. Sadly judges don’t always enforce it.
SH: Was there any follow up or action from this committee or its members after your testimony?
BR: I went with ACCE and HDL for the vote and sat in the balcony. Several members gave me a nod after casting a Yea vote. I continued to occupy the banks as my health permitted.
SH: How was your family affected by your activism and fight to bring justice not only to your own case but to others all around the country who were impacted by this massive fraud?
BR: My eight-year-old granddaughter occupied Chase Bank with me a couple of times. My son and daughter supported me but with some unease. They just want this to be successfully and harmoniously resolved. They’ve seen the impact on my health and they worry.
SH: What does the American Dream mean to you now?
BR: My American Dream is now an American nightmare. The bank criminals have walked away without any retribution or prosecutions. There is no one regulating the banks and the Consumer Financial Protection Bureau is a sham – banks are still investigating themselves. There is no justice.
SH: How can we, as a nation, recover from this fraud and bring back trust in our judicial system? How can we make sure that future generations are not exposed to the two-tiered justice system that we are witnessing now in our country?
BR: We must criminally prosecute the banksters for their crimes. We must reinstate Glass-Steagall. Hold every banker and broker accountable. Until a Jamie Dimon goes to prison, the criminals will multiply and escalate their evil acts against the consumers.
SH: How did Occupy change our society’s perspective on white collar fraud in your opinion?
BR: Our awareness of this evil force on society was heightened and magnified by Occupy. That being said, NOT ONE BANKER HAS GONE TO JAIL yet I was arrested for exercising my civil liberties. Our brothers and sisters were arrested, tear gassed, injured and jailed yet no banker has been treated likewise. We need to Occupy again. It is a daily challenge to keep up the fight but fight we must. Never give in. Never surrender. Hold your head high and march on!
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