Independent fact checker: Cortez Masto “played an important role in mortgage settlements totaling at least $1.9 billion that held banks accountable and helped Nevada homeowners hurt by the foreclosure crisis”
In contrast, Congressman Heck called the housing crisis a “blip on the radar” after sponsoring a tax cut for the Big Banks
For Immediate Release
October 6th, 2016
Las Vegas, NV – Another day, another ad from Congressman Joe Heck’s Washington allies that lies about Catherine Cortez Masto’s record as Attorney General. This time, Washington Republicans are lying about Cortez Masto’s record on the mortgage crisis. The truth is: as Attorney General, Catherine Cortez Masto took on the Big Banks and helped secure more than $1.9 billion in relief for Nevadans. An independent fact checker agreed: Cortez Masto “played an important role in mortgage settlements totaling at least $1.9 billion that held banks accountable and helped Nevada homeowners hurt by the foreclosure crisis.”
In contrast, Congressman Heck called the housing crisis a “blip on the radar” after sponsoring a tax cut for the Big Banks. Wall Street then returned the favor, funneling hundreds of thousands of dollars in contributions to Joe Heck’s campaign.
“Independent fact checkers agree that Catherine Cortez Masto took on the Big Banks as Attorney General and helped secure $1.9 billion in relief for Nevadans,” said Zach Hudson, spokesperson for Catherine Cortez Masto for Senate. “In contrast, Congressman Heck sponsored a tax cut for the Big Banks and then received hundreds of thousands of dollars in campaign contributions from Wall Street. Joe Heck’s Washington allies are trying to distract from Heck being in the pockets of the Big Banks that crashed our economy and his calling the housing crisis a ‘blip on the radar.’”
NRSC “BOTH SIDES” – AD PUSHBACK 10/6/16
CLAIM
RESPONSE
VOICEOVER: Catherine Cortez Masto brags about her deal with banks during the mortgage crisis.
CATHERINE CORTEZ MASTO: You know, we held them accountable.
TEXT: Typical Politician Masto Brags About Her Mortgage Deal
TEXT: “We Held Them Accountable” – Catherine Cortez Masto
REALITY: WASHINGTON REPUBLICANS ARE TRYING TO DISTRACT FROM JOE HECK’S RECORD OF DOWNPLAYING NEVADA’S MORTGAGE CRISIS & WORKING TO PROTECT THE BIG BANKS
Heck Called The Subprime Mortgage Crisis A “Blip On The Radar.” Q: “What issues are most critical to Nevada? Perhaps the recent subprime mortgage crisis and the recent state budget?” HECK: “Those things, while important and certainly critical to those that were affected, tend to be blips on the radar.” [Nevada NewsMakers Outreach questionnaire, 2/6/08]
Heck Agreed With Mitt Romney That The Foreclosure Process Needed To “Run Its Course And Hit The Bottom.” “In a state where the loss of a family home perhaps has been the most painful outcome of the stressed economy, Mitt Romney took hits Tuesday from Nevada leaders of both parties after commenting that the government should let the foreclosure process ‘run its course and hit the bottom.’ […] Rep. Joe Heck, R-Nev., has endorsed Romney. Heck thinks the housing market ‘does need to reach bottom,’ a spokesman said, but supports ‘a soft landing rather than a hard crash’ by having the government continue to offer refinancing help.” [Las Vegas Review-Journal, 10/18/11]
REALITY: JOE HECK TOOK OVER $650,000 IN CAMPAIGN CONTRIBUTIONS FROM WALL STREET AFTER HE SPONSORED A BILL TO CUT TAXES ON THE BIG BANKS – THE SAME BIG BANKS THAT GAVE OUT BAD LOANS AND CAUSED NEVADA’S FORECLOSURE CRISIS
Heck’s Campaigns Received $687,599 From The Securities & Investment Industry. [Open Secrets, Joe Heck Career Top Industries, Accessed 9/8/16]
Heck Was The Main Sponsor Of Bill To Cut Taxes On Banks By $44 Million. “Sen. Joseph Heck, R-Henderson, the main sponsor among 10 Republican senators who signed onto the repeal plan, SB233, said that singling out one industry for higher taxation sends the wrong message about Nevada’s pro-business climate. ‘This bill is not about banks,’ said Heck. ‘This could be a bill about basket weavers. This bill is about having an inequitable system of singling out a single industry for a tax, that the rest of business and industry does not pay.’ Nevada financial institutions which include banks and mortgage banks, but not credit unions now pay a 2 percent payroll tax, compared with a 0.65 percent rate paid by other businesses. They also pay a tax of $1,750 per branch office, beyond the first branch in each county. If passed, the tax repeal would do away with the per-branch tax and reduce the payroll levy to the 0.65 percent rate. The result would be a $44 million drop in revenue to the general fund over the next two years. That’s less than 1 percent of total income to the general fund, said Heck.” [Associated Press, 3/22/07]
Bank Lobbyists Pushed Heck’s Bill To Repeal Nevada’s Excise Taxes On Banks. “Nevada bankers asked lawmakers on Thursday to back a bill repealing two excise taxes imposed on banks in 2003, calling them unfair levies that single out their industry. Bill Uffelman, president of the Nevada Bankers Association, said the taxes have caused a severe drop in some small rural banks’ earnings. That’s particularly difficult when banks are facing competition from credit unions that don’t pay the extra taxes, he said. […] John Sande, a lobbyist with the Nevada Bankers Association, said the bill emphasizes the discrimination in the excise tax and reiterated that financial institutions should be charged the same taxes as any other business. He was not opposed to AB290, but said, ‘It just goes to show you how unfair the existing law is.’” [Associated Press, 3/22/07]
2010: Heck Defended Bill To Cut Taxes On Banks. “Heck said that he didn’t remember the vote on the tax rebate for seniors and that the tax cut for banks was meant to put them on equal footing with other businesses. ‘I have no recollection of that vote,’ he said of the tax rebate vote. The bank vote, he said, corrected a two-tier system Titus supported in 2003. ‘It didn’t make a difference if it was banks,’ Heck said. ‘It could have been somebody who was making widgets or baskets.’” [Las Vegas Review-Journal, 10/15/10]
REALITY: CONGRESSMAN HECK PROPOSED PRIVATE SOCIAL SECURITY ACCOUNTS THAT WOULD PROVIDE BILLIONS IN FEES FOR WALL STREET
Heck Proposed Allowing Workers To Invest Retirement Funds In Private Accounts, Instead Of Social Security. “The two candidates also got into an angry back-and-forth in discussing veterans benefits, Medicare and Social Security. Bilbray said Heck wants to privatize Social Security, and she said he’s done nothing to raise Medicare reimbursement rates so doctors won’t drop patients. Congress had boosted reimbursement rates, but on a year-to-year basis instead of a permanent fix. Heck, sounding exasperated, said he introduced the first bill to ‘repair Medicare’ and reintroduced it this year. He said it passed the House. As for Social Security, Heck said he has proposed allowing younger workers to invest retirement funds as they like, instead of with the government.” [Las Vegas Review-Journal, 10/20/14]
Heck’s Social Security Privatization Plan Would Create A “Major Problem,” The Government Would Be Left With “Less Money To Pay Retirees’ Benefits.” “‘But Heck’s proposal would create a major problem. If people take money out of Social Security to invest it privately, the government will be left with even less money to pay retirees’ benefits.” [Las Vegas Sun, 9/10/10]
Privatizing Social Security Could Be A Windfall For Wall Street, Generating Billions In Fees. “President Bush’s plan to partly privatize Social Security could be a windfall for Wall Street, generating billions of dollars in management fees for brokerages and mutual fund companies.” [NBC News, 12/28/04]
Wall Street Firms Could Reap Billions In Management Fees If Social Security Taxes Were Funneled Into Private Accounts. “The nation’s brokerages and mutual fund companies could be big winners if the government were to allow Americans to funnel some of their Social Security taxes into private investment accounts each year. Firms such as Fidelity Investments, Vanguard Group, Merrill Lynch & Co. and Schwab collectively could reap billions of dollars in management fees and commissions over the long term.” [Los Angeles Times, 1/18/05]
REALITY: HECK OPPOSED WALL STREET REFORMS ON BIG BANKS INTENDED TO PREVENT ANOTHER FORECLOSURE CRISIS
Heck Voted To Create A Safe Harbor From The Penalties Under Wall Street Reform For Banks That Originate Non-Qualified Mortgages That Do Not Comply With The Ability-To-Repay Requirements. In November 2015, Heck voted for: “Passage of the bill that would create a safe harbor from the penalties under the Dodd-Frank Act for banks that originate non-qualified mortgages that do not comply with the ability-to-repay requirements, as long as the bank retains the mortgage in its own portfolio. The bill would also create safe harbor for mortgage originators (brokers) if the mortgage lender is a depository institution and intends to hold the mortgage for the life of the loan, and the originator tells the consumer that the lender will hold the mortgage for the life of the loan. The bill would also require that prepayment penalties comply with current statutory requirements. Further, the bill would provide safe harbor to balloon payment loans, as long as these loans meet all other qualified mortgage requirements. As amended, the bill would clarify that systemically important financial institutions (SIFIs) are excluded from the safe harbor provisions under the bill.” The bill passed 255-174. [CQ, 11/18/15; HR 1210, Vote 636, 11/18/15]
The Bill Would Roll Back Regulations For Mortgages That Were Created To Prevent The Bad Lending Practices That Led To The 2008 Financial Crisis – It Would Extend An Exemption To A Rule From Just Small And Rural Banks To All Banks. “The House passed legislation Wednesday that critics argue rolls back regulations for mortgages that were created to prevent the bad lending practices responsible for the financial crisis of 2008. The Portfolio Lending and Mortgage Access Act, which was introduced by Rep. Andy Barr (R-Ky.), passed by a 255-174 vote. The bill extends a federal exemption meant for small and rural banks to all banking institutions. The Consumer Financial Protection Bureau (CFPB) issued regulations last year that require lenders to ensure a borrower’s ability to repay a loan in order to obtain a qualified mortgage status, which provides lenders a ‘safe harbor’ protection from federal penalties and lawsuits brought by borrowers who have defaulted on their loans. But the bureau created an exemption to allow small and rural banks to achieve that qualified mortgage status without following the ability-to-repay rule, which requires a borrower’s debt-to-income ratio to be 43 percent or less. Banking organizations, which support extending the exemption, argued that the rule was too restrictive and caused mid-size community bankers to decrease or eliminate their mortgage businesses.” [The Hill, 11/18/15]
Heck Voted To Exempt From The Prohibition Any Covered Depository Institution That Limits Its Security-Based And Other Swap Activities To Hedging And Other Similar Risk-Mitigation Activities. In October 2013, Heck voted for: “Passage of the bill that would amend a provision of the 2010 financial regulatory overhaul law that prohibits the federal bailout of swaps dealers or participants. The bill would exempt from the prohibition any covered depository institution that limits its security-based and other swap activities to hedging and other similar risk-mitigation activities. Non-structured and certain structured finance swap activities also would be exempt. Under the bill, insured depository institutions and uninsured U.S. branches of a foreign bank would be considered covered depository institutions.” The bill passed 292-122. [CQ, 10/30/13; HR992, Vote 569, 10/30/13]
Bill Rolled Back Major Elements Of The Dodd-Frank Financial Regulatory Bill. “The House of Representatives, with bipartisan support, passed legislation on Wednesday that would roll back a major element of the 2010 law intended to strengthen the nation’s financial regulations by allowing big banks like Citigroup and JPMorgan Chase to continue to handle most types of derivatives trades in house. The bill, which passed by a 292-122 vote, would repeal a requirement in the Dodd-Frank law that big banks ‘push out’ some derivatives trading into separate units that are not backed by the government’s insurance fund.” [New York Times, 10/30/13]
A Swap Was A Type Of Securities Exchange, One Type, A Credit Default Swap, Transferred Risk From The Owner Of A Stock To The Buyer Of A Swap In Exchange For Period Payments. “Credit default swap: A swap designed to transfer credit risk, in effect a form of financial insurance. The buyer of the swap makes periodic payments to the seller in return for protection in the event of a default on a loan. […] Swap: An exchange of securities between two parties. For example, if a firm in one country has a lower fixed interest rate and one in another country has a lower floating interest rate, an interest rate swap could be mutually beneficial.” [BBC Magazine, 8/4/09]
Fortune Magazine: Credit Default Swaps “Played A Critical Role In The Unfolding Financial Crisis.” “As Congress wrestles with another bailout bill to try to contain the financial contagion, there’s a potential killer bug out there whose next movement can’t be predicted: the Credit Default Swap. In just over a decade these privately traded derivatives contracts have ballooned from nothing into a $54.6 trillion market. CDS are the fastest-growing major type of financial derivatives. More important, they’ve played a critical role in the unfolding financial crisis. First, by ostensibly providing ‘insurance’ on risky mortgage bonds, they encouraged and enabled reckless behavior during the housing bubble.” [Fortune Magazine, 9/30/08]
VOICEOVER: But when it wasn’t so popular, Masto was quick to bail.
CORTEZ MASTO: Let me just say, I didn’t help broker this–I didn’t help broker this.
TEXT: Masto Bailed On Mortgage Deal
TEXT: “I Didn’t Help Broker This Settlement” – Catherine Cortez Masto KRNV, 2/18/2012
THE TRUTH: INDEPENDENT FACT-CHECKER CONCLUDED CORTEZ MASTO PLAYED AN IMPORTANT ROLE IN SECURING $1.9 BILLION SETTLEMENT FOR NEVADA
Cortez Masto Played An Important Role In Mortgage Settlements Totaling At Least $1.9 Billion Helping Nevada Homeowners Hurt By The Foreclosure Crisis. “The process of fact checking involves reporting the facts as best known at the time. When new facts arise, verdicts can change. That happened here. Regarding Cortez Masto’s campaign video, the claim is correct that she played an important role in mortgage settlements totaling at least $1.9 billion that held banks accountable and helped Nevada homeowners hurt by the foreclosure crisis. Truth meter: 9 (out of 10).” [Reno Gazette-Journal, 3/23/16]
Reno Gazette Journal’s Fact Checker Change: Following New Information, Changed Verdict Regarding Cortez Masto Ad On Mortgage Settlement To True. “Catherine Cortez Masto, who is running as a Democrat for Harry Reid’s U.S. Senate seat, disagreed with the finding of a recent online Fact Checker column that found a major statement in a campaign ad to be false. After much back and forth by email and a phone interview with Cortez Masto herself, her campaign today delivered a new piece of information that makes Fact Checker change its verdict to true. [Reno Gazette-Journal, 3/23/16]
Fact Checker Changed Verdict After Strong Independent Evidence That She Improved The National Mortgage Settlement, Held Banks More Fully Accountable, And Due To Her Efforts Nevada Homeowners Received $1.9 Billion In Relief For Struggling Homeowners. “Strong independent evidence came today. Her campaign emailed a quote about her role in the national settlement from attorney Rob McKenna. He wrote, ‘As Attorney General of Washington, I served on the National Mortgage Settlement Executive Committee. I saw firsthand Catherine Cortez Masto’s successful efforts to improve the settlement for Nevada residents and hold the banks more fully accountable. Catherine helped improve the settlement’s initial terms, such as: allowing states to seek additional litigation against the banks. Catherine also secured a separate agreement for Nevada with Bank of America. Due to Catherine’s efforts on the National Mortgage Settlement, as well as other litigation she pursued against the banks, Nevada received more than $1.9 billion in relief for struggling homeowners.‘ It is obviously key that he was part of the executive committee behind the ultimate terms of the national settlement. Also significant is the fact that McKenna is a Republican.” [Reno Gazette-Journal, 3/23/16]
Jon Ralston: Wow. Cortez Masto Gets Adverse Reno Gazette-Journal Fact Check Changed, And It Works. Sorry NRSC. In March 2016, political reporter Jon Ralston tweeted: “Wow. @CatherineForNV campaigns to get adverse @RGJ fact-check changed, and it works. Sorry, @NRSC.” [Twitter, Jon Ralston, 3/23/16]
Steve Sebelius: Reno Gazette-Journal Reverses Verdict That @Catherinefornv Ad Was False, Now Says Evidence Shows It’s True. In March 2016, Las Vegas Review-Journal’s Steve Sebelius tweeted: “Reno Gazette-Journal reverses verdict that @CatherineForNV ad was false, now says evidence shows it’s true.” [Twitter, Steve Sebelius, 3/23/16]
Michelle Rindels: After Much Back And Forth, Her Campaign Delivered New Evidence That Makes Fact Checker Change Its Verdict. In March 2016, Associated Press’s Michelle Rindels tweeted: “RGJ: After much back and forth, her campaign delivered new evidence that makes Fact Checker change its verdict.’ [Twitter, Michelle Rindels, 3/23/16]
THE TRUTH: CORTEZ MASTO MADE IT A PRIORITY TO STOP FORECLOSURE FRAUD WHEN HER INVESTIGATIONS FOUND BROAD PROBLEMS WITH BANK PRACTICES
Cortez Masto Mortgage Fraud Task Force Kept Busy With So Many Shady Real Estate Players. “Nevada Attorney General Catherine Cortez Masto asked Kelleher, a chief deputy, to head a mortgage fraud task force in early 2007. With so many shady real estate players and dicey mortgages, the new task force kept him busy. Then the foreclosure wave started, and the task force shifted its focus to scam artists falsely promising to keep Nevadans in their homes for a steep fee.” [Las Vegas Sun, 9/25/09]
2009: Cortez Masto Investigated And Found Broad Problems With The Bank Of America’s Interactions With Imperiled Borrowers. “In a complaint filed Tuesday in United States District Court in Reno, Catherine Cortez Masto, the Nevada attorney general, asked a judge for permission to end Nevada’s participation in the settlement agreement. This would allow her to sue the bank over what the complaint says were dubious practices uncovered by her office in an investigation that began in 2009. […] The breadth of the new Nevada complaint indicates that Bank of America’s problems extend throughout its mortgage operations, including origination, loan servicing and securitization. Nevada officials also found broad problems in the bank’s interactions with imperiled borrowers.” [New York Times, 8/30/11]
CBS Local News: “Putting Fraudulent Loan Modification Companies Out Of Business Is Priority One For The State’s Attorney General.” In September 2009, CBS Eyewitness News at 5pm reported, “With Las Vegas number one in the nation for foreclosures… Scammers are finding easy victims to prey on. Putting fraudulent loan modification companies out of business is priority one for the state’s attorney general. Channel 8’s Edward Lawrence investigates. Nevada ranks number one in the nation for loan modification scams. It’s so much of a problem that attorney general Catherine Cortez Masto met the treasury secretary and secretary of housing and urban development in in Washington to ask for assistance. She walked away with an agreement for federal help.. And cooperation with 11 other states.” [KLAS, 9/17/09]
AG Cortez Masto Met With HUD Secretary Of Foreclosure Scams And “Walked Away With An Agreement For Federal Help And Cooperation With 11 Other States.” In September 2009, CBS Eyewitness News at 5pm reported, “With Las Vegas number one in the nation for foreclosures… Scammers are finding easy victims to prey on. Putting fraudulent loan modification companies out of business is priority one for the state’s attorney general. Channel 8’s Edward Lawrence investigates. Nevada ranks number one in the nation for loan modification scams. It’s so much of a problem that attorney general Catherine Cortez Masto met the treasury secretary and secretary of housing and urban development in in Washington to ask for assistance. She walked away with an agreement for federal help. And cooperation with 11 other states.” [KLAS, 9/17/09]
THE TRUTH: CORTEZ MASTO VOWED TO HOLD BANKS ACCOUNTABLE FOR FORECLOSURE FRAUD AGAINST NEVADA HOMEOWNERS
Cortez Masto Said Bank Of America “Didn’t Hold Up Its End Of A Settlement, So She’s Taking Action.” In August 2011, CBS 8 News Now reported at 11pm, “Nevada’s attorney general says she’s not backing down in her fight against Bank of America. Catherine Cortez Masto says the bank didn’t hold up its end of a settlement… So she’s taking action.” [KLAS, 8/31/11]
Cortez Masto: “You Know What From My Perspective, Don’t Come Into My State And Take Advantage Of These Folks And Think You’re Going To Be Able To Walk Away From It.” In November 2011, 8 News Now at 5am reported, “Colleen mccarty/investi gative reporter: the settlement stems from the robo-signing scandal that broke last year. Banks temporarily suspended foreclosures. Following allegations their employees rubber-stamped foreclosures with-out reviewing them. As the i-team reported last week. There’s evidence those practices continue here in Nevada. Just one reason the state attorney general says she won’t sign anything that lets the banks off the hook. Catherine Cortez- Masto/Nevada attorney general: you know what from my perspective, don’t come into my state and take advantage of these folks and think you’re going to be able to walk away from it.” [KLAS, 11/23/11]
Cortez Masto: We Will Hold Accountable The Key Players In Foreclosure Fraud. According to an article by Margaret Cronin Fisk of Bloomberg Business, “Deceptive business practices by LPS and its subsidiaries caused many foreclosures to ‘proceed under false pretenses,’ she said. ‘The robo-signing crisis in Nevada has been fueled by two main problems: chaos and speed,’ Cortez Masto said in today’s statement. ‘We will protect the integrity of the foreclosure process. This lawsuit is the next, logical step in holding the key players in the foreclosure fraud crisis accountable.’” [Bloomberg Business, 12/16/11]
THE TRUTH: CORTEZ MASTO’S MORTGAGE UNIT AGGRESSIVELY CRACKED DOWN ON FORECLOSURE FRAUD IN NEVADA INVESTIGATING OVER 200 COMPANIES
Cortez Masto AG’s Office Investigated More Than 200 Companies For Mortgage Fraud. “More than 200 companies are under criminal investigation for mortgage fraud with ties to such things as identity theft and prostitution, Attorney General Catherine Cortez Masto says. Edith Cartwright of the attorney general’s office said many of those companies have 50 to 100 complaints against them. Masto outlined her budget to the Assembly Ways and Means Committee on Monday, saying she has two attorneys and three investigators to handle the criminal cases. The office also has a federal grant to hire two lawyers and four more investigators. Masto said the investigations center on mortgage foreclosure rescue scams or loan modification scams. ‘They are looking at various ways to scam people,’ the attorney general said. ‘This is the easiest to set up shop and try to start taking dollars from mortgage fraud. But they are organized and they engage in other types of crime besides the mortgage fraud.’” [Las Vegas Sun, 2/21/11]
AG Cortez Masto’s Mortgage Fraud Unit Was “Among The Most Aggressive In The Country.” According to a report by Colleen McCarty of KLAS, “Nevada’s mortgage Fraud Task Force – arguably among the most aggressive in the country – has undergone some dramatic changes in the last few months. […] Since the task force’s inception in 2007, the task force has served as a trailblazer for criminal prosecutions of housing-related crime. Its developed a national reputation built on complex cases involving loan modification fraud, foreclosure scams and robosigning.” [KLAS, 7/3/12]
Cortez Masto Doubled The Size Of Her Mortgage Fraud Investigation Team Even While The Department’s Budget Was Cut By 30 Percent. “Nevada Attorney General Catherine Cortez Masto is doubling size of a mortgage fraud investigation team, even while the department is cutting its budget by nearly 30 percent. She’s using federal funds to hire two prosecutors and four investigators to handle thousands of complaints against more than 200 companies accused of loan schemes or predatory lending. Nevada was the state hardest-hit by the foreclosure crisis.” [Associated Press, 2/17/11]
THE TRUTH: CORTEZ MASTO CRITICIZED THE BIG BANKS FOR FORECLOSING ON HOMEOWNERS WITHOUT PROPER PAPERWORK
Cortez Masto: Paperwork Failures Should Have Stopped Bank Of America From Foreclosing On Borrowers – But “They Went Ahead Nonetheless.” “These paperwork failures should have barred the bank from foreclosing on borrowers, the Nevada complaint says, but it went ahead nonetheless. This aspect of Ms. Masto’s complaint echoes a lawsuit filed in early August by Mr. Schneiderman, the New York attorney general, to block a settlement between Bank of New York and Bank of America covering 530 Countrywide mortgage pools. In that case, Mr. Schneiderman contends that Countrywide did not deposit loans into the mortgage pools as required and that the bank had no right to bring foreclosure actions against these borrowers.” [New York Times, 8/30/11]
Cortez Masto: Bank Of America’s Conduct Was The Most Anemic Of The Big Banks. “Thousands of homeowners complain that banks repeatedly lose their documents, fail to return calls or foreclose when a homeowner believes he or she is still negotiating a modification. Indeed, according to the lawsuits, Bank of America’s efforts were the most anemic of the big banks and were not confined to the Western states but rather ‘reflect a pervasive nationwide pattern and practice of conduct.’ The lawsuit noted that Bank of America ranked last in ‘virtually every homeowner experience metric’ monitored in a monthly report on the federal home loan modification program.” [New York Times, 12/17/10]
Cortez Masto: “Bank Of America’s Callous Disregard For Providing Timely, Correct Information To People In Their Time Of Need Is Truly Egregious.” “‘Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly egregious,’ Catherine Cortez Masto, the attorney general of Nevada said in a statement. Many Nevada homeowners continued ‘to make mortgage payments they could not afford, running through their savings, their retirement funds or their children’s education funds.’’ [New York Times, 12/17/10]
THE TRUTH: CORTEZ MASTO WAS ONE OF THE FIRST ATTORNEYS GENERAL IN THE COUNTRY TO TAKE LEGAL ACTION AGAINST THE BIG BANKS
December 2010: Cortez Masto Filed Lawsuit Against Bank Of America For Foreclosures Abuses: “We Are Holding Bank Of America Accountable For Misleading And Deceiving Consumers.” “The Nevada Attorney General’s office sued Bank of America Friday morning for allegedly deceiving homeowners through its residential loan modification and foreclosure practices. The lawsuit, filed in Clark County District Court and triggered by consumer complaints, named as defendants the bank’s parent company as well as BAC Home Loans Servicing, LP, Recon Trust Co. ‘We are holding Bank of America accountable for misleading and deceiving consumers,’ Nevada Attorney General Catherine Cortez Masto said. ‘Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions.’” [Las Vegas Sun, 12/17/10]
· October 2010: Ohio AG Richard Cordray Launched The First Major Legal Challenge To Bank Foreclosure Abuses Against Ally Financial. “This week we saw the first major legal challenge to the mortgage servicers and lenders at the center of the kerfuffle over ‘robo-signers’—the mortgage servicer employees who allegedly signed thousands of documents authorizing foreclosures across the country, without actually having reviewed the loan documents, as the law requires. Some say these middle-manager types (who have been identified at GMAC Mortgage LLC, J.P. Morgan Chase & Co., Bank of America Corp. and OneWest Bank, in depositions by consumer lawyers), if they did what they say they did, committed fraud in hundreds and even thousands of foreclosure cases by claiming knowledge of a financial matter of which they had no personal knowledge. This chaffed Ohio Attorney General Richard Cordray so badly that he filed suit Wednesday against GMAC and its parent company Ally Financial Inc., seeking $25,000 in civil penalties for each instance of fraud, plus untold thousands of dollars more in consumer restitution.” [Wall Street Journal, 10/7/10]
CORTEZ MASTO: The cake was already baked.
TEXT: “The Cake Was Already Baked” – Catherine Cortez Masto KRNV, 2/18/2012
CORTEZ MASTO: I was not part of the negotiating team.
TEXT: “I Was Not Part Of The Negotiating Team” –Catherine Cortez Masto, 4/4/2012
CORTEZ MASTO: Cake was already baked.
THE TRUTH: CORTEZ MASTO FOUGHT PRESSURE TO SETTLE QUICKLY AND WON A BETTER DEAL FOR NEVADA
AG Cortez Masto Fought “Immense Pressure” To Join National Foreclosure Settlement Until She Got Bank Of America To Agree To Refinancing Nevada Mortgages. According to an article by 8 News Now Las Vegas, “Attorney General Catherine Cortez Masto was one of the last nationwide holdouts on the national mortgage settlement. According to people familiar with the inside negotiations, there was intense federal pressure to jump onboard and settle with the five major banks. […]8 News NOW was told Cortez Masto wouldn’t join the settlement until she could get a separate deal against Countrywide, now Bank of America, for additional refinancing. That’s because Nevada already claimed they broke a previous deal. The Attorney General says that, for the first time, she has more enforcement options to go after them if they break this deal.” [8 News Now, 2/28/12]
Cortez Masto Was One Of The Last Holdouts To The National Mortgage Settlement. “After balking, Nevada’s state attorney general has signed the Silver State on to a $25 billion deal with the nation’s biggest mortgage lenders over foreclosure abuses. Attorney General Catherine Cortez Masto declined immediate comment Thursday on her decision to join the settlement billed as the biggest involving a single industry since the 1998 multi-state tobacco deal. A spokeswoman says Masto will make a statement later. The agreement gives Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial three years to reduce loans for nearly 1 million households. About 750,000 homeowners who were improperly foreclosed upon will get $2,000 checks. Only Oklahoma didn’t join. The 49 participating states agree not to pursue civil charges. Homeowners can still sue lenders civilly, and federal and state authorities can pursue criminal charges.” [Associated Press, 2/9/12]
Cortez Masto Stayed At The Negotiating Table And Fought For Stronger Settlement Terms In The National Mortgage Settlement. “Attorneys general from California, New York and Delaware, who have all been cold to the deal in past weeks, are still talking with negotiators and may yet signal their participation, according to sources familiar with the talks. Attorneys general from Florida and Nevada also have issues, but are still at the negotiating table. ‘My office is continuing to review the intricate draft settlement terms and advocating for improvements to address Nevada’s needs,’ said Nevada’s Attorney General Catherine Cortez Masto. Federal officials and state attorneys general could announce – perhaps as early as this week – the deal with some of the nation’s largest banks that could yield up to $25 billion for qualified homeowners. That would be more than any housing relief program has produced since the financial crisis began.” [CNN, 2/7/12]
Cortez Masto: Nevada Used Leverage From Bank Of America Lawsuit To Get A Larger Slice Of The National Mortgage Settlement. “Nevada used the leverage of a federal lawsuit it has pending against one large bank to reach a ‘side settlement’ and gain a larger slice of a nationwide foreclosure settlement pie, state Attorney General Catherine Cortez Masto said Friday. The $750 million worth of Nevada-specific mortgage relief and cash payments from Bank of America Corp. represented about half the $1.5 billion that troubled Nevada mortgage-holders and the state stand to receive in the nationwide settlement announced Thursday between 49 states and five large lenders. ‘I was not about to sign on to any settlement that would release Bank of America for its obligations and its wrongdoing in the state of Nevada,’ Masto told reporters Friday, the day after attorneys general in 49 states announced the $25 billion national agreement with mortgage lenders also including JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc.” [Associated Press, 2/11/12]
Cortez Masto: “We Were Committed To Bringing Them To The Table And Forcing Them To Work With Us To Engage In Immediate Relief For Homeowners Of This State.” “Masto said Nevada’s negotiations with Bank of America went late Wednesday before she agreed to sign. ‘We were committed to bringing them to the table and forcing them to work with us to engage in immediate relief for homeowners of this state,’ she said.’ ‘We have done that.’” [Associated Press, 2/11/12]
THE TRUTH: CONGRESSMAN HECK PRAISED CORTEZ MASTO’S WORK TO SECURE MORTGAGE SETTLEMENT FUNDS FOR NEVADA HOMEOWNERS
GOP Congressman Heck Praised National Mortgage Settlement: “At A Time When Nevada Families Are Struggling The Most To Make Ends Meet, I Have High Hopes This Settlement Will Provide Nevada Homeowners Much Needed Relief.” “Rep. Joe Heck, R-Nev., said he is ‘happy to see that an agreement was reached. At a time when Nevada families are struggling the most to make ends meet, I have high hopes that this settlement will provide them much needed relief.’” [Las Vegas Review-Journal, 2/9/12]
THE TRUTH: CORTEZ MASTO RECEIVED BIPARTISAN PRAISE FOR SECURING $1.9 BILLION IN MORTGAGE RELIEF FOR NEVADA HOMEOWNERS
Cortez Masto Helped People Suffering Through The “Worst Mortgage Crisis In History, Ground Zero For The Crisis Nationally, Using One Of The Smallest Attorney General’s Offices In The Country.” “Attorney General Catherine Cortez-Masto is also term limited, but wouldn’t disclose any plans to run for another office. She detailed her accomplishments since January 2007. Her biggest task was helping people suffering in a state with the worst mortgage crisis in history, ground zero for the crisis nationally, using one of the smallest attorney general’s offices in the country, with a staff of 365 employees including 155 attorneys and 48 peace officers.” [Pahrump Valley Times, 10/30/13]
GOP Former Washington AG Rob McKenna: Cortez Masto Improved The National Mortgage Settlement For Nevada And Held The Banks More Fully Accountable. “Strong independent evidence came today. Her campaign emailed a quote about her role in the national settlement from attorney Rob McKenna. He wrote, ‘As Attorney General of Washington, I served on the National Mortgage Settlement Executive Committee. I saw firsthand Catherine Cortez Masto’s successful efforts to improve the settlement for Nevada residents and hold the banks more fully accountable. Catherine helped improve the settlement’s initial terms, such as: allowing states to seek additional litigation against the banks. Catherine also secured a separate agreement for Nevada with Bank of America. Due to Catherine’s efforts on the National Mortgage Settlement, as well as other litigation she pursued against the banks, Nevada received more than $1.9 billion in relief for struggling homeowners.’ It is obviously key that he was part of the executive committee behind the ultimate terms of the national settlement. Also significant is the fact that McKenna is a Republican.” [Reno Gazette-Journal 3/23/16]
DEM & GOP Attorneys General For Arkansas, Illinois, And Nebraska All Praised Cortez Masto’s Work On The National Mortgage Settlement. “The campaign also sent similar testimonials from former Arkansas Attorney General Dustin McDaniel, Illinois Attorney General Lisa Madigan and former Nebraska Attorney General Jon Bruning. […] Regarding Cortez Masto’s campaign video, the claim is correct that she played an important role in mortgage settlements totaling at least $1.9 billion that held banks accountable and helped Nevada homeowners hurt by the foreclosure crisis.” [Reno Gazette-Journal 3/23/16]
DEM Sen. Reid Praised Cortez Masto For National Mortgage Settlement: “I’m Very Proud Of Her And Confident That The Work She Did Will Bring Dividends To The Beleaguered Housing Industry In Nevada.” “Senate Majority Leader Harry Reid, D-Nev., praised Masto for her role in negotiating a settlement for Nevada. ‘I’m very proud of her and confident that the work she did will bring dividends to the beleaguered housing industry in Nevada,’ Reid said on the Senate floor Thursday.” [Las Vegas Review-Journal, 2/9/12]
GOP Sen. Heller: The Settlement Will Provide More Protection And Some Relief To Nevada Homeowners. “Sen. Dean Heller, R-Nev., said he was pleased that the settlement would provide more protection and some relief to Nevada homeowners. ‘No state has been hit harder by the foreclosure crisis than Nevada,’ Heller said in a statement. ‘Unfortunately, abuses by the banking industry made a bad situation worse. Actions by the banking industry helped create this housing crisis. They have an obligation to help get us out.’” [Las Vegas Review-Journal, 2/9/12]
HUD Secretary Shaun Donovan: Cortez Masto Was “Very Deeply Involved” In The Settlement Negotiations And Nevada Will Receive One Of The Largest Benefits Because It Was One Of The Hardest Hits States And The Separate Bank Of America Case. DONOVAN: “Well, Nevada is, as you say, one of the places that was hardest hit and I have to compliment your attorney general, Catherine Cortez Masto, who was very deeply involved in the settlement negotiations, has done extensive investigations, and will be part of the monitoring committee, working with the monitor that I talked about to make sure that banks live up to these promises. Because it was one of the hardest hit states, Nevada will get – will be in the top five of the largest benefits from the settlement, about $1.5 billion will go to Nevada for help, and. because of separate cases that your attorney general brought. there are additional benefits that will be coming to Nevada, as well. The other thing I should mention is that Bank of America has committed, because of the extent of the lending that Countrywide did in states like Nevada, has committed to a special program that will provide deeper principal reduction and they’ve agreed to go out and – and to reach to every – every Countrywide borrower who is more than 60 days delinquent and underwater on their loan. So, because Countrywide lending was so extensive in Nevada, that is a special benefit to Nevada families that have been hard hit.” [Housing And Urban Development Secretary Shaun Donovan Teleconference, 2/10/12]
National Notary Association CEO Tom Heymann: Cortez Masto Has Shown “Unwavering Dedication” To Remedying The Housing Crisis And Has “Emerged As A Beacon Of Strength And National Leadership.” According to a release by the National Notary Association, “‘Attorney General Cortez Masto has shown unwavering dedication to remedying a nationwide crisis that has mortgage servicers rethinking their approach to the supervision and training of Notaries,” said NNA Chief Executive Officer Tom Heymann. ‘In doing so, she has emerged as a beacon of strength and national leadership.’” [National Notary Association press release, 5/10/12]
VOICEOVER: Typical politician Catherine Cortez Masto. All talk, out of both sides of her mouth.
TEXT: Catherine Cortez Masto: Typical Politician We Just Can’t Trust
TEXT: NRSC is responsible for the content of this advertising. Paid for by the NRSC.
REALITY: INDEPENDENT FACT-CHECKERS CALLED ADS SMEARING CORTEZ MASTO’S RECORD “BOGUS,” “FALSE,” AND “HIGHLY MISLEADING,”
Headline: FactCheck.Org: “Bogus Drunk Driving Attack In Nevada.” [FactCheck.org, 9/2/16]
Las Vegas Review-Journal’s Steve Sebelius: Ad About D.C. Law Firm Arranged Perfectly True Facts To Lead To A “False” Conclusion. “Anybody who’s ever been to a courthouse knows its possible to arrange perfectly true facts to lead a jury to a false conclusion. It’s no different in the court of public opinion. Take two recent ads from the Koch brothers-backed Freedom Partners Action Fund PAC targeting Democratic former Attorney General Catherine Cortez Masto, who’s now running for Senate. The ads allege she hired a well-connected Washington, D.C., law firm to sue Bank of America during the foreclosure crisis. The firm earned millions in fees. Partners in the firm later gave Cortez Masto campaign contributions. Therefore, corruption!” [Las Vegas Review Journal, Column, 5/10/16]
PolitiFact Nevada: NRSC Claim That Cortez Masto Took Pay Increases Is A “Highly Misleading” Claim. “The NRSC said Cortez Masto ‘was happy to line her own pockets with taxpayer dollars when state employees were slammed with frozen salaries,’ but this is a highly misleading claim. The state increased Cortez Masto’s salary during a time of pay freezes for Nevada’s state workers. She was unable to legally reject the pay increase, so she donated $38,000 back to the state during her last four years in office. We rate the claim Mostly False.” [PolitiFact Nevada, 2/3/16]
PolitiFact: NRSC Cherry-Picked Handful Of Crime Statistics To Portray Cortez Masto As Weak On Crime. “The NRSC ad says Nevada was ranked as the third most dangerous state by the time Cortez Masto left office, and that "murder went up 11 percent, robbery went up 28 percent, rape 51 percent” during her second term. The NRSC cherry-picks a handful of short-term crime statistics to portray Cortez Masto as weak on crime enforcement. But the argument is flawed.“ [PolitiFact, 8/10/16]
Las Vegas Sun Editorial: NRSC Was “Deceitful And Conniving” In Launching Ad. “Presumably, the National Republican Senatorial Committee knew this when it ordered the commercial. It knew it was trying to pull the wool over voters’ eyes. It knew it was being deceitful and conniving.” [Las Vegas Sun Editorial, 8/22/16]
Las Vegas Sun Editorial: NRSC Ad Was “Playing Voters For Suckers” And Lied About Cortez Masto’s Record. “This particular commercial might seem damning for the conclusions it tries to draw about the qualifications of Heck’s Democratic opponent, former Nevada Attorney General Catherine Cortez Masto. But it’s playing voters for suckers… PolitiFact took a look at this commercial and observed: ‘The numbers are technically accurate, but the ad fails to prove what Cortez Masto had to do with them.’” [Las Vegas Sun Editorial, 8/22/16]
Steve Sebelius On Uber: “You Can’t Argue That Cortez Masto Did Anything Remotely Wrong.” “The ad’s final line: 'She put campaign donors ahead of Nevadans, and protected special interests instead of us.’ No, she didn’t… But you can’t argue that Cortez Masto did anything even remotely wrong: A state agency represented by her office presented evidence that Uber was operating illegally. She concurred. (Later, so would a District Court judge.) If she’d ignored the issue, she could have been accused of abdicating her duty.” [Las Vegas Review-Journal, Sebelius Column, 7/2/16]
Washington Post Fact Check: NRSC “Exaggerated Charges” And Used “Misleading Language” To Frighten Voters Into Thinking Cortez Masto Made A Foreign Policy Blunder. In September 2015, Washington Post fact checker Glenn Kessler wrote, “This is an ad designed to frighten voters into thinking that Masto has made a tragic foreign-policy blunder that will lead to nuclear conflict. But the images would be justified only if the case were as compelling as the NRSC suggests. Instead, the organization has exaggerated the charges and used misleading language to make its case. With a few tweaks in the wording and less stark images, the NRSC could make a reasonable argument that supporting the nuclear deal is a mistake. But this effort is a miss.” [Washington Post Fact Check, NRSC Ad “There’s No Going Back,” 10/6/15]
Steve Sebelius: Heck’s Campaign “Should Know There’s A Breaking Point At Which Stretching Those Facts Too Far Will Cause Them To Snap.” In August 2016, Steve Sebelius wrote, “Heck’s campaign is certainly entitled to comb over Cortez Masto’s record and identify things that undercut her campaign’s law-and-order message (in fact, that follows a popular political strategy to attack an opponent where she’s the strongest). But the campaign should know there’s a breaking point at which stretching those facts too far will cause them to snap. That’s worth remembering since it doesn’t appear the ‘corruption’ meme is going to go away anytime soon.” [Las Vegas Review-Journal, Steve Sebelius Column, 8/26/16]
Jon Ralston: There’s “Never Been Any Evidence” Of Congressman Heck’s Attacks On Cortez Masto’s Character. RALSTON: “But I do think that the definition of her as being corrupt is, it is something she really needs to worry about, even though there’s never been any evidence that that’s true.” [Ed Morrissey Show, 8/26/16]
Sebelius: The Professor Quoted In The Ad Called For The Ad To Be Taken Down Because It Was “Completely Misleading” And That He Worked With Cortez Masto On The Rape Kit Issue For Years. In his, Keeping Them Honest segment, Steve Sebelius said, “Well, that does sound pretty bad. But the gentleman pictured in that ad, longtime UNR political scientist professor Richard Siegel is calling for the ad to be taken down. He says it is completely misleading. Now the official minutes of that meeting reflect only a very brief discussion of the issue, pretty much everything you saw in the ad. But Siegel says he has worked for years with Cortez Masto on sex assault issues and that she was well aware that the local police agencies didn’t have the money to test rape kits.” [KLAS, 9/18/16]
REALITY: WASHINGTON REPUBLICANS & THE KOCH BROTHERS ARE SPENDING MILLIONS TO PROP UP JOE HECK AFTER HE PUT THEIR INTERESTS AHEAD OF NEVADA FAMILIES
National Republicans Senatorial Committee Spent $6.2 Million In Ads Against Cortez Masto. [Federal Election Commission, Accessed 10/6/16]
Senate Leadership Fund To Spend $6 Million On Heck In Nevada. “The Senate Leadership Fund plans to spend big money defending Republicans in a quartet of battleground seats this fall, the super PAC said Tuesday, a strong indication of which states the group expects — and doesn’t expect — to be competitive in November. […] The group said it also plans to spend $6.2 million in Pennsylvania, $8.1 million in Ohio, and $6 million in Nevada. Pennsylvania and Ohio are represented by Republican Sens. Patrick J. Toomey and Rob Portman, respectively, and Democrats have targeted both as prime pickup opportunities in 2016. Nevada is potentially the GOP’s only realistic chance to win a Democratic-held seat in 2016. Republican Rep. Joe Heck is taking on former state Attorney General Catherine Cortez Masto for Senate Minority Leader Harry Reid’s seat. Reid is retiring.” [Roll Call, 6/28/16]
Heck Has Voted With His Party 90 Percent Of The Time. According to CQ, Heck voted with his party 87% of the time in 2014, 93% of the time in 2013, 89% of the time in 2012, and 90% of the time in 2011. [CQ Vote Studies, Accessed 5/18/16]
Roll Call: Heck Was On The “Good Side” Of The More Conservative Wing Of The Republican Party. “Heck has managed to stay on the good side of the more conservative wing of the Republican Party, which could help him fend off a serious primary challenge from the right. Republicans hope to avoid the situation they faced in 2010, when a crowded, messy primary resulted in the nomination of Sharron Angle, a flawed and gaffe-prone candidate who lost what was seen as a winnable race against Reid.” [Roll Call, 5/11/15]
MSNBC: Heck Voted For A “Far Right” Budget Scraping Medicare, Opposed Minimum Wage Increases, Was A Staunch Opponent Of Reproductive Rights, And Called Social Security A Pyramid Scheme. “Republican Rep. Joe Heck is a prominent U.S. Senate candidate in Nevada, and at first blush, the conservative congressman, running for an open seat, appears to be well positioned. Nevada is a fast-growing swing state with a diverse population, and Heck has previously won with fairly broad support. But it won’t be easy. Heck voted for a far-right budget plan that tried to scrap Medicare; he’s opposed minimum-wage increases; the GOP candidate is a staunch opponent of reproductive rights; and he’s even condemned Social Security as a pyramid scheme.” [MSNBC, 9/2/15]
Koch-Linked Groups Have Spent $8.7 Million Propping Up Heck’s Senate Campaign. “Americans for Prosperity spent $277,261 supporting Heck or opposing Cortez Masto; Freedom Partners Action Fund spent $7.6 million supporting Heck or opposing Cortez Masto; Concerned Veterans for America spent $700,000 supporting Heck; Libre Initiative spent $114,624 opposing Cortez Masto. [Federal Election Commission, Accessed 10/6/16; New York Times, 3/1/16]
New York Magazine: Congressman Heck Is “The Koch Brothers’ Candidate.” “Harry Reid would love to beat the Koch brothers’ candidate in the race for his own seat.” [New York Magazine, 8/30/16]
Koch Network Launched Its First Political Ad Of 2016 In Support Of Heck Using Secret Money. “The Koch network is unleashing its first political ad of 2016, right in Senator Harry Reid’s backyard. As early as Wednesday, television viewers across Nevada will start to see an ad showing military veterans voicing their support for Representative Joe Heck, the Republican challenger for Mr. Reid’s seat when he retires at the end of his term. The ad is part of a $700,000 broadcast and digital buy from the Concerned Veterans for America, an organization dedicated to overhauling the Veterans Affairs Department from a conservative viewpoint and part of the vast political network affiliated with the conservative billionaires Charles G. and David H. Koch.” [New York Times, 3/1/16]
Think Progress: Heck “Tracks Closely With The Koch Brothers’ Priorities.” “On other policy issues, Heck also tracks closely with the Koch brothers’ priorities. He strongly opposes the Affordable Care Act, floated raising the Social Security retirement age, supports “school choice,” and favors taking public land away from the federal government.” [Think Progress, 9/2/16]
2015: Heck Voted With Americans For Prosperity 88% Of The Time. According to the Americans for Prosperity website, Heck supported Americans for Prosperity’s positions 100 percent of the time during 2013. [Americans for Prosperity, Scorecard, Accessed 12/22/15]
2013: Heck Voted With Americans For Prosperity 100% Of The Time. According to the Americans for Prosperity website, Heck supported Americans for Prosperity’s positions 100 percent of the time during 2013. [Americans for Prosperity, Scorecard, Accessed 12/22/15]
Koch Group Backed Heck Because He Supported Policies That Would “Help Drive A Free And Open Society.” “Mark Holden, the chairman of Freedom Partners and general counsel to Koch Industries, said the Koch network was backing Mr. Heck because he supported policies that would ‘help drive a free and open society.’” [New York Times, 8/30/16]
UNLV Professor: Heck Is One Of The Koch’s People And A Long Time Ally On “Many Of The Issues That Are Relevant To The Kochs’ Business And Political Interests.” “The motivation behind their longtime support for Heck is obvious. ‘Heck is one of their people,’ Michael Green, a politics expert and associate professor of history at the University of Nevada, Las Vegas, remarked. The Senate hopeful is a longtime ally on many of the issues that are relevant to the Kochs’ business and political interests. Over the years, he has closely aligned with the brothers on a range of policy issues, including energy, health care and entitlements, tax cuts, school choice, labor, and public lands.” [Think Progress, 9/2/16]
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