Rep. Laura Richardson tried to bail herself out
In recent weeks, Daily Breeze political reporter Gene Maddaus has followed the saga of Rep. Laura Richardson's mortgage woes. Here, Gene guest blogs about how the rising political star advocated for changes in laws that, we now know, would've helped her. Gene writes:
Last November, Rep. Laura Richardson attended a Congressional subcommittee hearing on the mortgage crisis.
Now that we know she had already defaulted on two of her homes, and was about to default on a third, some of her comments at the hearing take on a different meaning than they had at the time.
Richardson criticized Gov. Arnold Schwarzenegger for failing to do more to stop the crisis, and made specific requests for changes in state law.
In particular, Richardson said that the time period for a notice of default should be extended from 90 days to 150 days. She also said the time periods should be extended for notices of trustee sales.
As we now know, Richardson had a personal familiarity with default time periods. She had already established a pattern of defaulting on a loan, then making a single payment to get the notice rescinded, and then defaulting again a few months later.
An extension of the notice period would essentially have given Richardson more time to stall on her loan payments.
Coincidentally, a representative from one of Richardson's lenders -- Washington Mutual -- testified at the hearing, which was held at the California Science Center on Nov. 30. She urged delinquent borrowers to get in touch with the bank before it's too late.
"We view foreclosure as a last resort and work very hard to keep our customers in their homes and keep them as customers," said the representative, Michaela Albon. "Our firm belief is that early intervention combined with expanded options is instrumental to helping our customers avoid foreclosure."
For whatever reason, Richardson apparently didn't get the message. WaMu sold Richardson's Sacramento house at auction last month.
Gene's previous coverage can be found by clicking here, here and here.
About the Blogger
Larry Altman has covered crime in the South Bay since 1990. He's seen it all - the missing model who turned up dead in the desert, the wives found dead in trunks, the high-school coaches who get a little too close to their players. He drives his young colleagues nuts with his "I remember when" stories. He welcomes your tips and observations about the present, and you can mix in a little Lakers basketball talk if you like.
E-mail Larry at larry.altman@dailybreeze.com.
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