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Op-Ed

As Loan Debts Rise, Foreclosures Dip

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Charlene Crowell

By Charlene Crowell
NNPA Columnist

 

 

A new economic analysis by the New York Federal Reserve Bank found fewer foreclosures, bankruptcies and credit card delinquencies. However the rates of delinquent auto and student loans are worse than before.

For most consumers, debt may seem like a constant companion – not a friend but somehow lurking near. How consumers manage their debts can also trigger financial stress. In December 2014, the nation’s consumers collectively carried $710 billion of debt. Of this amount, $570 billion was 90 days or more delinquent.

It should also be noted that from mortgages to car loans, credit cards, auto financing and more – the high costs of predatory lending unnecessarily raise the costs of a wide range of products. In two specific lending areas – student and auto loans – both the amount of debt and delinquencies are rising.

Both areas have also been under scrutiny by regulators and researcher alike as evidence mounts on predatory loan practices.

For the first time since before the recession started in 2007, the 90-day delinquency rate for auto loans (3.5 percent) is now greater than that of mortgages (3.1 percent). Auto loan balances continued to increase this quarter by $21 billion, and is larger than any time in history. That growth also comes with greater financial risk.

“Underwriting standards have steadily weakened in auto lending,” says Chris Kukla, senior vice-president with the Center for Responsible Lending (CRL). “Dealers are pushing borrowers into longer loans and routinely making loans that are more than the car is worth. When dealer interest rate markups are allowed, the interest rate for compensation and other risky practices are added on top of the loans. CRL is concerned that these losses will continue to mount.”

Student loan debts in this same period rose to a new total of $1.16 trillion. In comparing student loan balances between 2013 and 2014, the New York Fed found the yearly increase to be $77 billion.

Further, student loan delinquencies and defaults were even more than double that of auto lending at 11.3 percent and may actually understate the full delinquency rate due to deferments, grace periods, forbearance that are not included in the repayment cycle.

“Although we’ve seen an overall improvement in delinquency rates since the Great Recession, the increasing trend in student loan balances and delinquencies is concerning,” said Donghoon Lee, research officer at the New York Fed. “Student loan delinquencies and repayment problems appear to be reducing borrowers’ ability to form their own households.”

Maura Dundon, a CRL senior policy counsel, said: “Student loan debt can be a great financial tool for many borrowers to obtain a valuable college degree. Sharply rising balances coupled with slow repayment and high delinquency rates may indicate that student loan debt is beginning to drain Americans economically. A disproportionate share of defaulters attended for-profit colleges, which are in urgent need of reform.”

Lee’s observation on the slowdown of new households is also shared by a number of other policy experts who also view that growing student debts have delayed home purchases for many who are just beginning their careers. New mortgage loan originations totaled $355 billion, a historically low figure according to the New York Fed.

At the same time, mortgage delinquencies continued to decline, balances on home equity lines of credit dropped by $2 billion and fewer consumers are filing for bankruptcy. In the last quarter of 2014, nearly 20 percent fewer bankruptcies were filed than at the same time last year: 268,000.

Before making a decision on a major purchase or finance, try to learn as much as you can about the range of products and finance options available. The Internet offers a wealth of information from governmental office such as the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC) and the Department of Education.

CFPB offers the opportunity to file or check the status of formal complaints or blow the whistle on businesses suspected of violating laws. Similarly, the FTC’s web accepts consumer complaints, including identity theft or adding your phone number to the nation’s Do Not Call Registry. Consumers can also request free copies of their credit reports.

Additional consumer lending information is al so available on CRL’s web.

Remember: When it comes to lending, if a deal sounds too good to be true, it probably is.

 

Charlene Crowell is a communications manager with the Center for Responsible Lending. She can be reached at: Charlene.crowell@responsiblelending.org.

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Bay Area

In the City Attorney Race, Ryan Richardson Is Better for Oakland

It’s been two years since negotiations broke down between the City of Oakland and a developer who wants to build a coal terminal here, and the issue has reappeared, quietly, in the upcoming race for Oakland City attorney. Two candidates are running for the position of Oakland City Attorney in November: current Assistant Chief City Attorney Ryan Richardson and retired judge Brenda Harbin-Forte.

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Members of Oaklanders Defending Democracy political action committee with Oakland Mayor Sheng Thao, center. Courtesy photo.
Members of Oaklanders Defending Democracy political action committee with Oakland Mayor Sheng Thao, center. Courtesy photo.

By Margaret Rossoff

Special to The Post

OPINION

It’s been two years since negotiations broke down between the City of Oakland and a developer who wants to build a coal terminal here, and the issue has reappeared, quietly, in the upcoming race for Oakland City attorney.

Two candidates are running for the position of Oakland City Attorney in November: current Assistant Chief City Attorney Ryan Richardson and retired judge Brenda Harbin-Forte.

Richardson has worked in the Office of the City Attorney since 2014 and is likely to continue current City Attorney Barbara Parker’s policies managing the department. He has committed not to accept campaign contributions from developers who want to store and handle coal at a proposed marine terminal in Oakland.

Retired Judge Harbin-Forte launched and has played a leading role in the campaign to recall Mayor Sheng Thao, which is also on the November ballot.  She has stepped back from the recall campaign to focus on her candidacy. The East Bay Times noted, “Harbin-Forte’s decision to lead the recall campaign against a potential future client is … troubling — and is likely to undermine her ability, if she were to win, to work effectively.”

Harbin-Forte has refused to rule out accepting campaign support from coal terminal interests or their agents. Coal terminal lobbyist Greg McConnell’s Independent Expenditure Committee “SOS Oakland” is backing her campaign.

In the 2022 mayor’s race, parties hoping to build a coal terminal made $600,000 in contributions to another of McConnell’s Independent Expenditure Committees.

In a recent interview, Harbin-Forte said she is open to “listening to both sides” and will be “fair.” However, the City Attorney’s job is not to judge fairly between the City and its legal opponents – it is to represent the City against its opponents.

She thought that the 2022 settlement negotiations ended because the City “rejected a ‘no coal’ settlement.” This is lobbyist McConnell’s narrative, in contrast to the report by City Attorney Barbara Parker. Parker has explained that the City continued to negotiate in good faith for a settlement with no “loopholes” that could have allowed coal to ship through Oakland – until would-be coal developer Phil Tagami broke off negotiations.

One of Harbin-Forte’s main priorities, listed on her website, is “reducing reliance on outside law firms,” and instead use the lawyers working in the City Attorney’s office.

However, sometimes this office doesn’t have the extensive expertise available that outside firms can provide in major litigation. In the ongoing, high stakes coal litigation, the City has benefited from collaborating with experienced, specialized attorneys who could take on the nationally prominent firms representing the City’s opponents.

The City will continue to need this expertise as it pursues an appeal of the judge’s decision that restored the developer’s lease and defends against a billion-dollar lawsuit brought by the hedge fund operator who holds the sublease on the property.

Harbin-Forte’s unwillingness to refuse campaign contributions from coal terminal interests, her opposition to using outside resources when needed, as well as her uncritical repetition of coal lobbyist McConnell’s claim that the City sabotaged the settlement talks of 2022 all raise serious concerns about how well she would represent the best interests of Oakland and Oaklanders if she is elected City Attorney.

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Commentary

Opinion: “McDonald” Trump Goes Off (Color) on Arnold Palmer. Plus, Blacks and Filipinos Link at Jazzed-Up Buffalo Soldiers Tribute

After manning the fry station in Bucks County, what will “McDonald Trump” do next? The Palabok and Chicken Joy at the Philadelphia Jollibee for the Filipino vote? Unlikely.

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John Calloway, grandson of John W. Calloway, plays flute at the Oakland Museum event. Photo courtesy of Emil Guillermo.
John Calloway, grandson of John W. Calloway, plays flute at the Oakland Museum event. Photo courtesy of Emil Guillermo.

By Emil Guillermo

After manning the fry station in Bucks County, what will “McDonald Trump” do next? The Palabok and Chicken Joy at the Philadelphia Jollibee for the Filipino vote?

Unlikely.

But there’s a reason for everything the candidates do now. For example, Trump’s recent reference to Arnold Palmer’s manhood. I’ll explain.

We are in full campaign stunt mode. Candidates, it seems, would do anything to grab what’s left of the still-undecided-yet-persuadable voters.

The candidates are resorting to what I call “fracking” for votes. It’s where candidates inject hot liquid rhetoric deep down into the electorate at high pressure to create fissures, openings, hoping to loosen things up to allow extraction–not for oil or gas–but for those hard-to-get voters.

So, Trump went fast food for some fast votes, but Harris topped him, saying she’d work to change the federal minimum wage from $7.25 so that service workers could afford a decent life. What’s Trump offering? Extra ketchup?

Last week, Trump was in Latrobe, the birthplace of the great golfer Arnold Palmer. At a campaign event, he elevated Palmer and the girth of his manhood into the 2024 campaign rhetoric.

It was crude and unpresidential. But Trump’s a convicted felon, who has been found liable of sexual assault and defamation in a civil court and has lied repeatedly on just about everything. After the Access Hollywood tape of 2016 where he crudely talked about grabbing women by their p—y, how would he top it in 2024? Trump used Palmer to “frack” for votes among undecided men, suburban women, Blacks, and Latinos.

OAKLAND MUSEUM’S FILIPINO AMERICAN HISTORY TRIBUTE

I went to a unique celebration at the Oakland Museum last weekend.

John Calloway, jazz musician and San Francisco State music lecturer, presented his live multi-media experience on Buffalo Soldiers and the Philippine American War to a packed theater.

Calloway’s grandfather John W. Calloway was a Buffalo Soldier, the Army’s regiment of Black soldiers who served in the Philippines in the 1890s.  He also reported on the war for the Black press, notably the Richmond Planet.  While the mainstream press insisted on the colonization of the Philippines and its savage people, John W. Calloway’s compassionate writings showed how Filipinos were anything but savages.

It was a two-way street. Through the Buffalo Soldiers, Filipinos learned about American culture and the difference between white and Blacks. “The colored soldiers do not push us off the streets, spit on us, call us damn niggers, abuse us in all manner of ways, and connect race hatred with duty,” a Filipino interviewee told John W. Calloway.

He concluded, “The future of the Filipino I fear, is that of the Negro of the South.”

He said no one has any scruples regarding the rights of the Filipino, who is kicked. cuffed at will, drawn up and degraded before their eyes, cast into prison after prison, stripped and searched time and again, humiliated, brutalized.

It was one of the best Filipino American History Month celebrations I have ever attended. Enough facts and all the feels.

Get tickets to the show here: https://themarsh.org/monday-night-marsh-stream/

About the Author

Emil Guillermo is a journalist and commentator. See his micro-talk show on www.patreon.com/emilamok. He performs an excerpt from his Emil Amok Monologues, “Transdad,”  Nov. 4 and 18th at the Marsh, 1062 Valencia St,  San Francisco.

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Activism

OP-ED: Slogans Over Solutions: The Real Cost of Defunding the Police

Let’s be blunt: Defund the Police is not just a failure—it’s a farce. Consider Oakland’s much-hyped MACRO program, designed to respond to 911 calls without armed officers. In theory, it was supposed to lighten the police’s load and ensure that non-violent incidents were handled by social workers. In practice, it’s a bureaucratic disaster. Nearly all of its service recipients are homeless, and a mere 6% of calls result in meaningful help. The cost to taxpayers? Nearly $3,000 per referral.

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Dr. Jennifer Tran is a Professor of Ethnic Studies at California State University.

By Dr. Jennifer Tran

It’s time to cut through the slogans and set the record straight on the “Defund the Police” movement. What started as a rallying cry, borne out of real pain and injustice, has become a case study in misguided policy, political opportunism, and unintended consequences. It is, in fact, a lesson in the tragic comedy of American politics, where grand gestures replace practical solutions, and the impulsive dreams of self-serving politicians only succeed in plunging cities into chaos. And the communities that were supposed to benefit from these reforms? They’re the ones paying the steepest price.

To understand how we got here, let’s rewind the tape to 2013, when the Black Lives Matter (BLM) movement emerged in response to horrific instances of police brutality. The deaths of Black men and women at the hands of law enforcement rightly shocked the public, and for once, there was a reckoning with the systemic inequities that had long plagued the American criminal justice system. It wasn’t just theory anymore, buried in the pages of university texts. Viral videos of police brutality turned those academic arguments into raw, painful reality for millions. People were outraged, and rightly so. We demanded change.

Then came 2016, when Oakland’s Anti-Police Terror Project decided the solution to police violence was to cut the police budget by 50%. In a utopia where crime doesn’t exist, maybe that could work. But on the streets of America, where real people face real threats, the idea was nothing short of delusional. The group, bankrolled by millions from the Akonadi Foundation and its president Lateefah Simon, pushed to slash Oakland’s police budget in half and divert the funds to social services. Sounds noble in theory. A better society, they promised, lay just beyond the horizon—one where cops were obsolete and violence simply evaporated once social workers entered the scene. But there’s a reason serious policy experts dismissed this as fringe from the start—it was.

And then, the murder of George Floyd in 2020 gave this once-fringe movement a national megaphone. “Defund the Police” became the rallying cry for protests that swept across the country. City councils from Oakland to New York City fell over themselves to slash police budgets in response to activist pressure. Progressive politicians saw an opportunity to appease their activist base by passing “bold” policies, irrespective of the practical consequences.

But herein lies the rub. Defunding the police is not a policy—it’s a moral pose, an empty chant masquerading as a solution. What exactly did anyone think would happen when cities with already strained police forces began gutting their budgets? Did they think crime would simply cease? That communities terrorized by violence would find comfort in knowing that more mental health workers were on call while fewer officers patrolled their neighborhoods?

The reality struck like a hammer. When police officers, demoralized by public scorn and abandoned by their city leaders, began resigning in droves, crime spiked. Homicides, carjackings, and robberies surged in cities like Oakland, while the communities that supposedly stood to benefit from defunding were left more vulnerable than ever. In fact, it became clear that the only people who thrived in this brave new world were the criminals.

What’s worse, the political damage was catastrophic. Not only did the Defund movement fail to deliver on its promises, but it handed Republicans a golden opportunity to paint Democrats as reckless and soft on crime. In the 2020 elections, the backlash was evident as Democrats struggled to shake off the taint of these disastrous policies. What could have been a serious conversation about police reform—about how to make law enforcement both effective and accountable—was hijacked by the extremists who would rather tear it all down.

Let’s be blunt: Defund the Police is not just a failure—it’s a farce. Consider Oakland’s much-hyped MACRO program, designed to respond to 911 calls without armed officers. In theory, it was supposed to lighten the police’s load and ensure that non-violent incidents were handled by social workers. In practice, it’s a bureaucratic disaster. Nearly all of its service recipients are homeless, and a mere 6% of calls result in meaningful help. The cost to taxpayers? Nearly $3,000 per referral.

Meanwhile, Oakland’s police force remains understaffed, overburdened, and demoralized. Despite budget reversals in 2022, the damage was done. Many officers, tired of being vilified, left the force altogether. And now, the city is struggling to recruit replacements while crime rates continue to climb.

But rather than learn from failure, the Defund movement doubled down. When reducing police numbers didn’t deliver the utopia they’d promised, they shifted their focus to local district attorneys, funding campaigns for candidates who promised to stop prosecuting crimes altogether. The result? A crime wave unlike anything we’ve seen in years. Retail theft, carjackings, burglaries—if there’s a crime to commit, it’s being committed in cities where these “progressive” prosecutors are in charge.

And in Oakland, the epicenter of this failed experiment, District Attorney Pamela Price is now facing a recall. Why? Because the voters who once supported her are now living with the consequences of her policies. They know what happens when ideology collides with reality—and reality always wins.

Yet despite all of this, the architects of this movement are still trying to sell us their snake oil. Lateefah Simon, the financier and architect behind the entire movement to Defund the Police, is now running for Congress. Backed by the same billionaire funders who helped launch the Defund debacle, she’s hoping to take her failed ideas to Washington, D.C. And if we’re not careful, she just might succeed.

But there is a better way. I support a new and bold piece of legislation called the Modern Cities Act, which offers a sensible alternative. Instead of gutting the police, we need to invest in police departments to reform them. Under this plan, we can have both public safety and justice. This approach recognizes that we need mental health services, housing solutions, and job programs to address the root causes of crime, but we also know that without police, those programs won’t have a chance to succeed. Reforming police practices doesn’t mean getting rid of police—it means holding them accountable while making sure they have the resources and training to protect our communities while never endangering community members.

The truth is, we don’t need fewer cops. We need better cops. We need training, transparency, and yes, accountability. But the notion that we can simply defund the police into oblivion and expect society to flourish is not just naive—it’s dangerous. We should be questioning the judgment of any politician who ever supported this harmful experiment, and they should never be allowed in public office again.

So, the next time someone tells you that defunding the police is the path to progress, ask them this: who’s going to keep your family safe when the police are gone? And then ask them if they’ve learned anything from Oakland. Because the rest of us certainly have.

Dr. Jennifer Tran is a Professor of Ethnic Studies at California State University. She is also the President of the Oakland Vietnamese Chamber of Commerce, and Democratic Party candidate for US Congress in Oakland’s District 12. This article was sponsored by the campaign of Dr. Jennifer Tran for Congress.

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