Congressional Candidate Labate Comments On Congressman Israel’s Mortgage Scandal

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Steve Labate talking at Lark Field Manor

Stephen Labate, candidate for Congress in New York’s 3rd Congressional District, commented on today’s New York Post article about the mortgage scandal surrounding the sale of Congressman Steve Israel’s house.  “This is a classic example of politicians getting special treatment and playing by a different set of rules than the average citizen,” said Labate.

Stephen Labate, an Army Reserve Lieutenant Colonel and Iraq War Veteran, who this November is seeking to unseat Congressman Steve Israel, a six-term incumbent, pointed out that “Congressman Israel was an outspoken advocate for bailing out the bank that is now willing to let him off the hook for his mortgage obligation.   Every struggling homeowner on Long Island should be outraged by the clearly unethical behavior of the Congressman.”

Labate went on to say, “Many Long Islanders who face severe economic hardship due to unemployment or illness are losing their homes through foreclosure and are never afforded the opportunity of mortgage forgiveness from their mortgage holder.  There would certainly appear to be a double standard when a Congressman and his wife, who are gainfully employed with a combined income which exceeds $300,000, can walk away from their financial obligations.”

Labate continued, “The American people were rightly outraged when they learned of the perks that politicians received from Angelo Mozillo of Countrywide Mortgage. However, this scandal involving Congressman Israel is far more serious than anything that went on with the Countrywide scandal.  The constituents of the 3rd Congressional District should be asking themselves how can they trust Congressman Israel to understand the hardships facing the middle class when, unlike him, they can’t pick up a phone and negotiate their financial responsibilities away.”

“Voters are tired of elitist politicians who use the power of their office to garner special deals from the institutions they are charged with regulating,” said Labate.  “Long Islanders are ready to send a representative to Washington who will work for them and not abuse the power afforded to a member of Congress.”

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2 Responses to Congressional Candidate Labate Comments On Congressman Israel’s Mortgage Scandal

  1. I think Mr. Labate should provide some details about this alleged “scandal”, ie., what was the special treatment he received, who provided it and what was unethical about it. Thank you.

    October 8, 2012 10:05 pm at 10:05 pm

  2. FYI-Wunderpet.(aka local political lapdog)

    How insulting to all Americans who have tried to get relief from the TARP Program. I have been in a two year battle with JP
    MORGAN CHASE who admitted they made numerous errors and foreclosed on my family home in January 2010. In a gesture of “remorse” JP MORGAN has since offered me $40,000.00 for the equity I had in my home. I have written the Senate Banking Committee, our own Senator David Vitter, our AG Buddy Caldwell and no one cares.

    As Neil Barofsky wrote in his tell all book about what really happened in the Bank bailouts, it was NEVER INTENDED to help homeowners, it “foamed the runway” for the banks. It appears Mr. Israel grabbed Tim Geitner’s ear, most of us did not get that priveledge.

    Middle class hard working Americans who were going through a rough spot and have never asks for a government assistance in their lives, lose their home. Their credit ruined. Their dreams crushed.

    Mr. Israel apparently has several homes to fall back on, we did not. It makes me sick. I do not understand why the Republican party does not tell the American people that the 60 Billion dollars set aside to help responsible homeowners was a lie. The Independent Foreclosure Review which was supposed to remediate those cases that were “criminally foreclosed” is a sham and the AG’s grabbed their 20 billion. I hope you stay the course and expose those politicians like Mr. Israel who got his help.
    With kindest regards,
    Beth Malone

    October 9, 2012 12:36 pm at 12:36 pm

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