by Jeremy Leaming
The Department of Justice’s handing of foreclosure abuses, which disproportionately affected African Americans and Latinos, came under intense, if not overblown, scrutiny during a Senate hearing today.
As The Blog of Legal Times reports, Sen. Charles Grassley (R-Iowa) “led a wave of criticism of the Justice Department’s response to home loan discrimination and foreclosure abuses,” during th
e Senate Judiciary Committee hearing.
Grassley groused about the DOJ’s settlement with Countrywide Financial Corporation, which the Assistant Attorney General for the Civil Rights Division Thomas Perez (pictured) described in written testimony before the committee as “the largest lending discrimination case ever brought by the U.S. Department of Justice ….”
In a prepared statement, Grassley said the Countrywide settlement was inadequate. “Although the complaint asked for the victims to be put in the same position they would have been absent the discrimination, for civil penalties, and for consequential damages, the consent decree provides only $1700 per victim,” he said.
During the hearing, and his testimony, Grassley claimed that Countrywide and other financial institutions involved in the discriminatory lending practices should have faced investigations for criminal wrongdoing. “We do not know what individuals took the unlawful actions. They face no punishment. And they can keep their jobs. Countrywide admits nothing. The government has proven nothing in court.”
Democratic Sens. Al Franken (Minn.) and Sheldon Whitehouse (R.I.) joined Grassley in criticizing the DOJ for alledgedly not taking stronger action against the financial institutions. As Todd Ruger reported The Blog of Legal Times, toward the end of the hearing, Perez conceded, albeit not before defending his Division’s work, that more could be done to address the financial industry’s practices.
Several of the senators and witnesses sharply focused on the fact that banks and other financial institutions discriminated against African Americans and Latinos during the mortgage crisis. (As James H. Carr noted in this ACSblog post, research has revealed “that in 2004 African Americans were more likely to receive subprime loans than white borrowers, even when risk factors such as credit scores were taken into consideration. Not only did that excessive peddling of reckless mortgage products to blacks result in their having experience foreclosures at a disproportionately higher rate than white borrowers, but also, blacks are over-represented in the ranks of the long-term unemployed which has also grown as a result of the financial crisis.”)

National Law Journal, Sen. Whitehouse (pictured) writes that for many years the term "judicial activism" has been lobbed by conservatives "so repeatedly that it is now in the common parlance, but without any clear meaning." He continues, "For some, ‘judicial activism' applies to any decision that fails to meet conservatives political purposes, but never to a decision that meets conservative goals, no matter how many acts of Congress it strikes down, how many prior decisions it overturns or how recklessly it strains to decide broad questions of constitutional law."
ts have limited plaintiffs' rights to challenge corporations before juries by restricting the right to sue and on the evidence that can be brought into play."
well qualified" nominee to head the Office of Legal Counsel (OLC), top Senate Judiciary Committee members maintain in a
The Senate Judiciary Committee, with only Senators Sheldon Whitehouse and Al Franken present, held a hearing on the nomination of Rhode Island Superior Court Justice