NEW DSCC AD: Pat Toomey Looks Out for Big Banks, Not Pennsylvania

V/O: Imagine: the bank forces you out. No warning, no hearing. It’s a lending practice so outrageous…

GFX: Toomey’s Bank Used a

“Controversial Foreclosure Method”

to foreclose on Pennsylvania homes

[Politico, 10/07/16]

V/O: …most states banned it.

GFX: Controversial Process Toomey’s Bank Used

“is Banned in 35 Other States.”

[Politico, 10/07/16]

V/O: But at the bank owned by Pat Toomey, it was business as usual.

GFX: Toomey’s bank “Engaged in Predatory Practices”

Politico, 10/07/16

TOOMEY OWNED STOCK IN TEAM CAPITAL BANK, WHICH HE STARTED & SERVED AS CO-CHAIRMAN OF THE BOARD OF DIRECTORS

In 2005, Toomey Founded Team Capital And Served Co-Chairman Of The Board Of Directors. “Team Capital Bank was founded in the Lehigh Valley in 2005 with co-chairmen Martin D. Cohen, a Lehigh Valley attorney, and Pat Toomey, the former congressman and current U.S. senator. Cohen remains on the board of directors. The bank opened its first Lehigh Valley branch in 2006 at 2151 Emrick Blvd. in Bethlehem Township.” [Eastern Express Times, 12/21/13]

Citizens For Responsibility And Ethics In Washington: “Toomey Owns Stock In A Bank He Helped Co-Found, Team Capital Bank.” “Citizens for Responsibility and Ethics in Washington (CREW) today released a new report revealing that Sen. Pat Toomey (R-PA) used his position to financially benefit himself and members of his family. Sen. Toomey paid two of his businesses, his wife, and his former employer with funds from his campaign committee and leadership PAC, leading CREW to include him in Family Affair, a look at how senators and their family members profit from their official positions. “Sen’ Toomey seems to believe in fiscal austerity only for other people. You’d think someone who so zealously advocates for frugality would be more cautious about spending donors’ money,’ CREW Executive Director Melanie Sloan said. Sen. Toomey owns stock in a bank he helped co-found, Team Capital Bank, and in an airplane leasing company he owns called N-35727, INC.” [Citizens for Responsibility and Ethics in Washington, 2014]

• Candidate Filing: Toomey Owned Between $500,001 And $1,000,000 In Team Capital Bank Stock. [Toomey Candidate Financial Disclosure, Candidate Filing, Filed 4/16/10]

• 2010: Toomey Owned Between $500,000 And $1,000,000 In Team Capital Bank Stock. [Toomey Personal Financial Disclosure, CY2010, Amended 6/22/11]

• 2011: Toomey Owned Between $500,001 And $1,000,000 In Team Capital Bank Stock. [Toomey Personal Financial Disclosure, CY2011, Amended 5/1/14]

• 2012: Toomey Owned Between $500,001 And $1,000,000 In Team Capital Bank Stock. [Toomey Personal Financial Disclosure, CY2012, Filed 5/15/13]

• 2013: Toomey Owned Between $500,001 And $1,000,000 In Team Capital Bank Stock. [Toomey Personal Financial Disclosure, CY2013, Amended 8/18/15]

Scranton Times-Tribune: Toomey’s “Single Most Valuable Assets” Was His Stock In Team Capital Bank, Worth Between $500,001 And $1 Million And Earned A $6,300 Board Fee From The Bank. “The Toomeys’ portfolio includes several diversified individual retirement accounts, but the senator’s single most valuable assets are his stock in Bethlehem-based Team Capital Bank and a real estate partnership, Old Mill Partners. Old Mill owns undeveloped land on Block Island, a vacation hot spot in Rhode Island. Mr. Toomey is a native Rhode Islander. The partnership and the bank stock each are worth between $500,001 and $1 million, according to his disclosure form. Mr. Toomey also earned a $6,300 board fee from the bank and a $2,500 retainer from MJR Financial Group, an investment advice firm in Bethlehem that helped start the bank in 2005. The senator has an extensive background in finance.” [Scranton Times-Tribune, 7/1/11]

Toomey’s Most Valuable Private Holding Was Stock In Team Capital Bank. “Toomey disclosed a net worth of between $1,750,070 and $4,750,999 in 2010. Some of his bigger public holdings include iShares Silver Trust Index and JPMorgan Alerian MLP Index, which invests in energy limited partnerships.  Toomey’s private holdings included an airplane-leasing company (worth $101,002 to $265,000) and a real estate deal called Old Mill Partners (worth $500,001 to $1,000,000). His most valuable assets include stock in Bethlehem-based Team Capital Bank.” [Philadelphia Inquirer, 11/22/11]

TOOMEY’S BANK UTILIZED CONFESSION OF JUDGMENT, A PRACTICE BANNED IN 35 STATES…

Politico: Team Capital Bank “Used A Controversial Foreclosure Method Called A ‘Confession of Judgement’ To Foreclose On At Least 21 Homes In The State.” “While sitting on the Senate Banking Committee, Toomey owned between $500,001 and $1 million in stock in Team Capital Bank, from 2010 to 2014. His ownership of the bank, while little discussed so far, looks set to become a focal point of Democratic attacks in the final weeks of his reelection run.  The bank also used a controversial foreclosure method called a ‘confession of judgment’ to foreclose on at least 21 homes in the state that were used as collateral by small business owners, even as Toomey fought against consumer protections for mortgages in the Senate, repeatedly opposing the Consumer Financial Protection Bureau.” [Politico, 10/7/16]

• Politico: “In More Than 20 Cases, Team Capital Bank Used The Process To Foreclose On Business Owners Who Put Up Residences As Collateral.” “Toomey’s campaign argued the CFPB’s impact on Team Capital would be limited because the agency deals exclusively with retail mortgages, which made up just one-third of the bank’s total loan portfolio. But in more than 20 cases, Team Capital used the process to foreclose on business owners who put residences up as collateral, according to court documents.” [Politico, 10/7/16]

Politico: Confession Of Judgment Was “Banned In 35 Other States Because Of Due Process Concerns.” “So while a standard process gives a homeowner or business owner more time to negotiate with a bank or pay up on the mortgage, a confession of judgement is an ‘end around’ that ‘moves very, very quickly,’ said Debbie Goldstein, the executive vice president at the Center for Responsible Lending.” The practice is only allowed for commercial mortgages in Pennsylvania and is banned in 35 other states because of due process concerns. State law also requires the language to be conspicuous, meaning it must be in large font and clearly labeled on legal documents. Commercial mortgages also traditionally have more involved and detailed negotiations processes, so it’s likely the mortgage holders knew they were agreeing to an expedited foreclosure process.  ‘The CFPB was created because individual consumers needed help defending themselves against practices like that,’ Goldstein said. ‘Confessions of judgement are intended to undermine the foreclosure process.’” [Politico, 10/7/16]

Consumer Finance Advocate: “We Should Be Concerned About Elected Officials Whose Outside Interests Were Engaged In Predatory Practices.” “The CFPB deals exclusively with retail mortgages, while Toomey’s bank only used confessions of judgment in commercial mortgage cases. But advocates warned the spread of such practices was exactly the type of thing the CFPB was designed to prevent. ‘In the wake of the financial crisis, we should be concerned about elected officials whose outside interests were engaged in predatory practices,’ said Joe Valenti, the director of consumer finance at the liberal Center for American Progress Action Fund, adding: ‘Proposing to weaken the Consumer Financial Protection Bureau and to export anti-consumer state laws to the entire country only moves us farther away from improving families’ financial stability.’” [Politico, 10/7/16]

…AND THAT ALLOWED BANKS TO FORECLOSE WITHOUT NOTICE TO HOMEOWNERS & AFTER JUST ONE MISSED PAYMENT

Pittsburgh Post-Gazette: Confession Of Judgment Allowed Lenders “To Enter Judgements Against Them For Nonpayment” After “A Single Missed Payment Without Giving Notice Or A Chance To Contest It.” “The confession of judgment is outlawed in many states but it is legal in Pennsylvania for commercial mortgages. The term refers to a contract clause in which borrowers essentially waive due process and allow lenders to enter judgments against them for nonpayment. It allows banks to begin foreclosing after a single missed payment without giving the borrower notice or a chance to contest it.” [Pittsburgh Post-Gazette, 10/8/16]

Politico: In Pennsylvania, Most Foreclosures Require Appearance Before A Judge, But The “Confession Of Judgement Process Allows A Bank To Start The Foreclosure Process Almost As Soon As A Borrower Misses A Payment.” “Pennsylvania is a judicial foreclosure state, meaning most foreclosures are lengthy processes requiring appearances before a judge. This stretches out the average length of a foreclosure to about 270 days, compared to about two months in non-judicial foreclosure states.  The confession of judgment process allows a bank to start the foreclosure process almost as soon as a borrower misses a payment, without notifying the owner.” [Politico, 10/7/16]

• Executive Director Of The Center For Responsible Lending Said Confession Of Judge Was An “End Around” That “Moves Very, Very Quickly” Instead Of Allowing A Homeowner To Negotiate With A Bank. “So while a standard process gives a homeowner or business owner more time to negotiate with a bank or pay up on the mortgage, a confession of judgement is an ‘end around’ that ‘moves very, very quickly,’ said Debbie Goldstein, the executive vice president at the Center for Responsible Lending.” [Politico, 10/7/16]

• Politico: The Executive Director Of The Center For Responsible Lending Said “Confessions Of Judgement Are Intended To Undermine The Foreclosure Process.”  “Commercial mortgages also traditionally have more involved and detailed negotiations processes, so it’s likely the mortgage holders knew they were agreeing to an expedited foreclosure process.  ‘The CFPB was created because individual consumers needed help defending themselves against practices like that,’ Goldstein said. ‘Confessions of judgement are intended to undermine the foreclosure process.’” [Politico, 10/7/16]

V/O: Forcing 21 small business owners out of their homes.

TOOMEY’S BANK USED CONFESSION OF JUDGEMENT TO FORECLOSE ON AT LEAST 21 HOMES USED AS COLLATERAL BY SMALL BUSINESS OWNERS

Politico: Team Capital Bank “Used A Controversial Foreclosure Method Called A ‘Confession of Judgement’ To Foreclose On At Least 21 Homes In The State That Were Used As Collateral By Small Business Owners” “While sitting on the Senate Banking Committee, Toomey owned between $500,001 and $1 million in stock in Team Capital Bank, from 2010 to 2014. His ownership of the bank, while little discussed so far, looks set to become a focal point of Democratic attacks in the final weeks of his reelection run.  The bank also used a controversial foreclosure method called a ‘confession of judgment’ to foreclose on at least 21 homes in the state that were used as collateral by small business owners, even as Toomey fought against consumer protections for mortgages in the Senate, repeatedly opposing the Consumer Financial Protection Bureau.” [Politico, 10/7/16]

CONFESSION OF JUDGMENT ALLOWED BANKS TO FORECLOSE WITHOUT NOTICE TO HOMEOWNERS & AFTER JUST ONE MISSED PAYMENT

Pittsburgh Post-Gazette: Confession Of Judgment Allowed Lenders “To Enter Judgments Against Them For Nonpayment” After “A Single Missed Payment Without Giving Notice Or A Chance To Contest It.” “The confession of judgment is outlawed in many states but it is legal in Pennsylvania for commercial mortgages. The term refers to a contract clause in which borrowers essentially waive due process and allow lenders to enter judgments against them for nonpayment. It allows banks to begin foreclosing after a single missed payment without giving the borrower notice or a chance to contest it.” [Pittsburgh Post-Gazette, 10/8/16]

Politico: In Pennsylvania, Most Foreclosures Require Appearance Before A Judge, But The “Confession Of Judgement Process Allows A Bank To Start The Foreclosure Process Almost As Soon As A Borrower Misses A Payment.” “Pennsylvania is a judicial foreclosure state, meaning most foreclosures are lengthy processes requiring appearances before a judge. This stretches out the average length of a foreclosure to about 270 days, compared to about two months in non-judicial foreclosure states.  The confession of judgment process allows a bank to start the foreclosure process almost as soon as a borrower misses a payment, without notifying the owner.” [Politico, 10/7/16]

• Executive Director Of The Center For Responsible Lending Said Confession Of Judge Was An “End Around” That “Moves Very, Very Quickly” Instead Of Allowing A Homeowner To Negotiate With A Bank. “So while a standard process gives a homeowner or business owner more time to negotiate with a bank or pay up on the mortgage, a confession of judgement is an ‘end around’ that ‘moves very, very quickly,’ said Debbie Goldstein, the executive vice president at the Center for Responsible Lending.” [Politico, 10/7/16]

• Politico: The Executive Director Of The Center For Responsible Lending Said “Confessions Of Judgement Are Intended To Undermine The Foreclosure Process.”  “Commercial mortgages also traditionally have more involved and detailed negotiations processes, so it’s likely the mortgage holders knew they were agreeing to an expedited foreclosure process.  ‘The CFPB was created because individual consumers needed help defending themselves against practices like that,’ Goldstein said. ‘Confessions of judgement are intended to undermine the foreclosure process.’” [Politico, 10/7/16]

V/O: Now, Toomey’s using his power in the Senate to help himself.

GFX: Senate Banking Committee

Toomey’s Using His Power Here

V/O: Voting to gut rules that protect us and crack down on big banks.

GFX: Toomey voted to gut consumer protections

Vote 46, 3/21/13; Vote 98, 5/16/12

V/O: Pat Toomey. Out for himself, not us.

GFX: Pat Toomey

Out for himself. Not Us..

TOOMEY VOTED TO BENEFIT BANKS WHILE HE OWNED & HELD STOCK IN THEM

FROM THE TIME HE JOINED THE SENATE THROUGH TODAY, TOOMEY HELD FINANCIAL INTERESTS IN MULTIPLE BANKS, INCLUDING ONE HE OWNED

Politico: “While Sitting On The Senate Banking Committee, Toomey Owned Between $500,001 And $1 Million In Stock In Team Capital Bank From 2010 To 2014.” “Wall Street ties have become a potentially poisonous issue for many politicians on the campaign trail in 2016. It has played an especially big role in Pennsylvania’s key Senate race, where Democrats have portrayed GOP Sen. Pat Toomey as too close an ally of banks and Wall Street — and where Toomey’s ties to the industry also include a major financial stake in a small bank he cofounded. While sitting on the Senate Banking Committee, Toomey owned between $500,001 and $1 million in stock in Team Capital Bank, from 2010 to 2014.” [Politico, 10/7/16]

• In 2005, Toomey Founded Team Capital And Served Co-Chairman Of The Board Of Directors. “Team Capital Bank was founded in the Lehigh Valley in 2005 with co-chairmen Martin D. Cohen, a Lehigh Valley attorney, and Pat Toomey, the former congressman and current U.S. senator. Cohen remains on the board of directors. The bank opened its first Lehigh Valley branch in 2006 at 2151 Emrick Blvd. in Bethlehem Township.” [Eastern Express Times, 12/21/13]

• Citizens For Responsibility And Ethics In Washington: “Toomey Owns Stock In A Bank He Helped Co-Found, Team Capital Bank.” “Citizens for Responsibility and Ethics in Washington (CREW) today released a new report revealing that Sen. Pat Toomey (R-PA) used his position to financially benefit himself and members of his family. Sen. Toomey paid two of his businesses, his wife, and his former employer with funds from his campaign committee and leadership PAC, leading CREW to include him in Family Affair, a look at how senators and their family members profit from their official positions. “Sen’ Toomey seems to believe in fiscal austerity only for other people. You’d think someone who so zealously advocates for frugality would be more cautious about spending donors’ money,’ CREW Executive Director Melanie Sloan said. Sen. Toomey owns stock in a bank he helped co-found, Team Capital Bank, and in an airplane leasing company he owns called N-35727, INC.” [Citizens for Responsibility and Ethics in Washington, 2014]

• Scranton Times-Tribune: Toomey’s “Single Most Valuable Assets” Was His Stock In Team Capital Bank, Worth Between $500,001 And $1 Million And Earned A $6,300 Board Fee From The Bank. “The Toomeys’ portfolio includes several diversified individual retirement accounts, but the senator’s single most valuable assets are his stock in Bethlehem-based Team Capital Bank and a real estate partnership, Old Mill Partners. Old Mill owns undeveloped land on Block Island, a vacation hot spot in Rhode Island. Mr. Toomey is a native Rhode Islander. The partnership and the bank stock each are worth between $500,001 and $1 million, according to his disclosure form. Mr. Toomey also earned a $6,300 board fee from the bank and a $2,500 retainer from MJR Financial Group, an investment advice firm in Bethlehem that helped start the bank in 2005. The senator has an extensive background in finance.” [Scranton Times-Tribune, 7/1/11]

• Toomey’s Most Valuable Private Holding Was Stock In Team Capital Bank. “Toomey disclosed a net worth of between $1,750,070 and $4,750,999 in 2010. Some of his bigger public holdings include iShares Silver Trust Index and JPMorgan Alerian MLP Index, which invests in energy limited partnerships.  Toomey’s private holdings included an airplane-leasing company (worth $101,002 to $265,000) and a real estate deal called Old Mill Partners (worth $500,001 to $1,000,000). His most valuable assets include stock in Bethlehem-based Team Capital Bank.” [Philadelphia Inquirer, 11/22/11]

Pittsburgh Post-Gazette: Toomey “Supported” Overhauling Consumer Protections To Exempt “Smaller Banks Like Provident From Being Subject To Routine Investigations.” “She tied his involvement in the bank — he still owns shares in Provident — to his legislative fight to dismantle the Consumer Financial Protection Bureau, which was created to protect people from abusive banking practices. […] Still, Toomey has supported an overhaul of the CFPB that would have exempted smaller banks like Provident from being subject to routine investigations by the agency.” [Pittsburgh Post-Gazette, 10/8/16]

• Toomey Held Stock In Provident Bank, Which He Acquired When The Bank Purchased Team Capital Bank In December 2013. “The senator’s personal financial disclosures from 2010 to 2014 showed he owned stock in the bank worth between $500,001 and $1 million. In December 2013, Provident Bank — a larger bank operating in New Jersey and Pennsylvania — announced it was purchasing Team Capital for $122 million. Toomey still owns shares in Provident Bank, which is publicly traded.” [Politico, 10/7/16]

TOOMEY VOTED TO REPEAL BANK REFORM LEGISLATION THAT WAS PUT IN PLACE TO PROTECT CONSUMERS FROM “ABUSIVE” PRACTICES BY BANKS…

CNBC: Wall Street Reform Was “Geared Toward Protecting Consumers” With Regulations To Keep Borrowers From “Abusive” Practices By Banks. “The full name of the bill is the Dodd-Frank Wall Street Reform and Consumer Protection Act, but it is better known and most often referred to as Dodd-Frank. In simple terms, Dodd-Frank is a law that places major regulations on the financial industry. It grew out of the Great Recession with the intention of preventing another collapse of a major financial institution like Lehman Brothers. Dodd-Frank is also geared toward protecting consumers with rules like keeping borrowers from abusive lending and mortgage practices by banks.” [CNBC, 5/11/12]

Toomey Voted For FY 2014 Ryan Budget. In March 2013, Toomey voted for: “Murray, D-Wash., amendment no. 433 that would replace the text of the resolution with language to provide $2.769 trillion in new budget authority in fiscal 2014, not including off-budget accounts. It would assume that the spending levels required by the sequester remain in place and that non-war discretionary spending for all future years will be at post-sequester levels. It would assume that all discretionary savings from the sequester beginning in fiscal 2014 will come from non-defense programs. It would assume $4.6 trillion in reductions over the next 10 years in both discretionary and mandatory spending. It would assume repeal of the 2010 health care overhaul and a restructuring of Medicare into a ‘premium support’ system beginning in 2024.” The amendment was rejected 40-59. [CQ, 3/21/13; S.Amdt. 433 to S.Con.Res. 8, Vote 46, 3/21/13]

• Seattle Post-Intelligencer: FY 2014 Ryan Budget Would “Roll Back 2010 Wall Street Reform Legislation.” “Ryan, chairman of the House Budget Committee, rolled out his new budget on Tuesday, a document reminiscent of his old budget that Democrats ran against in the 2012 election. It would partially privatize Medicare, slash Medicaid and food stamps by turning them into block grants, abolish the Affordable Care Act (‘Obamacare’), roll back the 2010 Wall Street reform legislation, and throw open federal lands in all places to all kinds of drilling and gouging proposed by Big Oil and Big Coal.” [Seattle Post-Intelligencer, 3/12/13]

Toomey Voted For FY 2013 Ryan Budget. In May 2012, Toomey voted for a: “Conrad, D-N.D., motion to proceed to the concurrent resolution that would allow $2.794 trillion in new budget authority for fiscal 2013, not including off-budget accounts.” The motion failed 41-58. [CQ, 5/16/12, H.Con.Res. 112, Vote 98, 5/16/12]

• Los Angeles Times Editorial: Ryan Budget Would Repeal “New Federal Restrictions On Wall Street.” “For the second time in as many years, the House Republican leadership has put forward a deficit-cutting budget plan that’s more of a political statement than a governing blueprint. The proposed budget for fiscal 2013 promotes a long list of conservative policies that are only tangentially related to the federal fisc — for example, repealing new federal restrictions on Wall Street and ending the moratorium on offshore oil drilling. Even the proposals that are purely fiscal in nature rely on changes in law that Senate Democrats won’t support, such as repealing the 2010 healthcare reform law.” [Los Angeles Times, Editorial, 3/21/12]

…AND “PUSHED THROUGH A WALL STREET-SUPPORTED” AMENDMENT “ATTACKING” THE CFPB TO LET REPUBLICANS “SLASH” ITS FUNDING…

Huffington Post: Toomey Sponsored And “Pushed Through A Wall Street-Supported Amendment Attacking The Consumer Financial Protection Bureau” Which Would Let Republicans “Slash The Bureau’s Funding.” “In just their first legislative session since taking control of the Senate, Republicans on the Budget Committee pushed through a Wall Street-supported amendment attacking the Consumer Financial Protection Bureau. The amendment, offered by Sens. David Perdue (R-Ga.) and Pat Toomey (R-Pa.), is a resolution to move the CFPB’s funding away from the Federal Reserve and put it under the direct control of Congress through the appropriations process. This would not only give Republicans an opportunity to slash the bureau’s funding, but to leverage its budgeting control to pressure the agency against cracking down on lenders.  […] Three of the Republicans who voted for the bill are up for re-election in 2016 in swing states, including Toomey and Sens. Kelly Ayotte (R-N.H.) and Rob Portman (R-Ohio).” [Huffington Post, 3/20/15]

• Huffington Post: Giving Congress Direct Control Of CFPB’s Budget Would “Give Republicans Opportunity To Slash” It’s Funding And Allow It “To Pressure The Agency Against Cracking Down On Lenders.” “The amendment, offered by Sens. David Perdue (R-Ga.) and Pat Toomey (R-Pa.), is a resolution to move the CFPB’s funding away from the Federal Reserve and put it under the direct control of Congress through the appropriations process. This would not only give Republicans an opportunity to slash the bureau’s funding, but to leverage its budgeting control to pressure the agency against cracking down on lenders.” [Huffington Post, 3/20/15]

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