thank you do the commissioners have any questions. >> this loan is going on for a long time is it a loan or grant? it's structured as a loan but it is structured so it can be forgotten at the end of the term if all conditions met in if not due >> what are the conditions. >> the loan agreement basically says all conditions have to be met and as was alluded to provided permanent jobs and done a lot of wonderful things for the community the big-ticket items we couldn't finds inclines for meeting the converting the space or renting out the space for commercial purposes that's the intent of the loan as you've heard they were not able to do that to rent to the tenants. >> okay. thank you. >> when just because you've mentioned it it when that condition was compassed did the agency not knows or the party know that the zoning wouldn't allow commercial purposes. >> an balm i didn't. >> awning on balm i didn't and victor mary confesses might be able to talk about that. >> well, we actually discovered when we approached the agency over 5 years ago to try to see if we could have a part of the loan fo

and the tifia loan and this loan cannot be outstanding at the same time. and so, while they have an equal right to the security, and there is not, there is not an instance in which both loans can be outstanding at the same time. >> and if the bridge financing is still outstanding in three years after close, and then tjpa covenants to, excuse me. to covenants to undergo the process of doing a long term tax increment take out financing and we would, actually execute that financing, at maturity at the 4-year, mark, but we will begin to undergo the process three years after close, if we have not yet paid back the loan. >> and again, because of the lack of maturity at this time, of the tax increment, there is additional collateral required for the loan and namely two pieces of real estate and what we call parcel f and block four, and parcel f is slated to be a mixed use, mostly office, tower on howard between first and second street. and block four is the northern portion of the temporary terminal and it is slated for the residential development, and significan

loans.. loanloans loans. the variable is the most powerful predictor of early success and that is first semester gpa. now a couple of ideas for few tour studies that i would like to see on first or second year attention. first semester gpa or are there other more direct impacts on retention in in other words, is there more to the effect after plus loan denial than a student retained and impact on gpa? while this paper does not explore how lingering unmet need for plus loan denial impact gpa or retention just that it does. psycho social implications on students could be very illuminating. one of the questions i also had left is whether the impact of unmet need o is consistent across all levels. did it have the same impact? this paper adds to the body of knowledge about what helps or not at hbcu. resources continue to shrink at campus and federal level. this can be the californplatfor additional research that needs to be done. african-american families were particularly hard hit by the great recession add toget

student loans, that is, but one would argue is to how much of aid is a student loan when a student loan is something you have to pay back. it's not like grants or scholarships, for example. so colleges for sure do play a large role here. and there's been this ongoing debate about why should, for instance, the federal government keep giving out more and more aid? it's essentially incentivizing the colleges to continue increasing their tuition because they're saying, well, the money's got to come from somewhere, someone's going to pay for it. >> sreenivasan: right. >> and to your question, too, i think absolutely, schools need to be brought into this. schools have their own pot of financial aid, essentially. and there's a sticker price, but they discount it heavily depending on what kind of student you are. and so they have your financial information and they are essentially moneyballing financial aid these days. >> sreenivasan: explain that. >> there's a whole industry called enrollment management. there didn't used to be enrollment managers at schools, you know, two decades ago. but tha

discovered when we approached the agency over 5 years ago to try to see if we could have a part of the loan forgiven at that time, navigate we scheduled the item to come before the commission over 5 years ago but we decided that that was better to just let the time run because it was going to be an impossibility it was not dlofrdz until i reviewed the loan document and brought it to the council more and more wills this was a mistake that had been made in 1994 unfortunately yeah. >> do you have any questions i want to raise before the impanel supervisor bustos that's not here. >> i have questions so when we make this loan there are interests payment that have to be made were those payments made and the interest payments under the loan are only made in it was in default and custodial due otherwise no interest payment. >> no interest payments so thank you sure. >> supervisor bustos is not here obviously he had a a lot they couldn't avoid and was committed to before articulating on the commissioner duty he expressed a concern from his prospective he was concerned that a building on balm i didn'

liars loans. the fbi warned there would be an epidemic of these loans back in 2004. the industry ignore these warnings. the government ignore these warnings. there was this huge influx of the stated income loans or could just say they made an enormous amount of money and nobody would check. so the bank buys all of these loans, and what they were doing was, essentially, throwing them into big pools. making hamburger of them and selling that hamburger to , insuranceds companies, hedge funds -- all kinds of investors. typically, ordinary people were the people on the other end buying this stuff. they were investing in the securities. and often did not know it. what alayne fleischmann was involved with, was making sure these loans were good quality so pension funds when they bought the securities were not buying something that was going to blowup on them a year later. what she found was that were buying loans that were very dubious quality am works truly risky and that should not have been made into that hamburger. talks were going to take a break and we come back, we wa

for the loan agreement to reinvest the loans in the affordable housing project that it needs occ determined it can't be forgotten first, as i imaginations e.r. mentioned all terms and conditions be met in order for the loan to be forgotten n nc has unfortunately not been able to meet all the conditions for the economic development purposes due to the provisions mentioned earlier and forgiveness of the loan needs to imply with the law to have companies to make finding of the forgiveness of the loan in the best interests of the taking industries now the assignment of the loan all the time at that occ we believe this is consistent with the law and allows the funds to be used for the affordable housing project as requested under the proposed translation n nc adding it will contributor a total of 2 hundred and 50 thousands of sales that represents the loans to the affordable housing project to effectuate the use of the loan in the affordable housing project occ will fit the needs of affordable housing project consistent with redevelopment dissolution law the project will be funded this will bene

. >> i have questions so when we make this loan there are interests payment that have to be made were those payments made and the interest payments under the loan are only made in it was in default and custodial due otherwise no interest payment. >> no interest payments so thank you sure. >> supervisor bustos is not here obviously he had a a lot they couldn't avoid and was committed to before articulating on the commissioner duty he expressed a concern from his prospective he was concerned that a building on balm i didn't was being returned to the market and was very generosity impressed but worried and concern i'll put this on record this is perhaps not an answer to freud would that asset essentially when it's sold it is sold in the open market at market no conditions no market conditions to make it an affordable unit of it's from the mayor's office and your correct someone else can probably do a better answer but from my prospective and the translation before you the braid has my understanding they've voted to authorize the sale but this is as far as it goes so n nc court so unless

redevelopment plan like the affordable obligations the obligation will be released when the bridge loan is repaid subordination specifics that any party that ours block 4 affordable housing requirement required by occ to meet the affordable housing incentive of 35 percent for the transbay redevelopment plan area the under the redevelopment dissolution it is an enforceable obligation that occ is assumed to go before the oversight board and the called department of finance to determine it is in the best interests board of supervisors acting a protective body it remains the effort authority to review the material to the ocii affordable housing those actions will happen later this month and early december i want to point out you have a revised reducing resolution in front of you basically, we made editing changes and fixed some type we're recommending approval of t the first amendment and we may make some minor changes going forward as we near the end of the transaction i'm here as well as at representative if the transbay joint powers authority to answer questions thank you. >> thank you d

for the loan or for tifia and they are a source of full funding for phase one. and so, the district will be formed, and the city will validate the formation, and then, at some point, it could be next fall, once the block six construction has completed. and the city could be in a position to issue bonds. and those bond proceeds, 82.6 percent of those bond proceeds, will come to tjpa for project costs. and it is anticipated what we worked out with the mayor's office that this suggestion of the public finance staff in the controller's office is to use a portion of those proceeds to fully fund, phase one and the remainder which is

and there is no possibility of a payment default during the term of the loan and so until if we close in early 2015, we are looking at early 2019 before there is a possibility of a payment default. and as a mentioned before that, before we got to that point, we would have undertaken the process, issue a tax increment and that will return to the bridge financing before returning to the bridge collateral. and so the remaining actions to close, and mtc does have to finalize the approval of the quick claim amendment and as i mentioned that will and should occur next week. the oci, and the city, and the board of supervisors do have to take some legislative actions, and because the city is a party to the option agreement, the board of supervisors has to approve the amendment to the option agreement and because the city board of supervisors is also the success or agency in matters represented to the affordable housing, with that on, they have to approve the amendment to the option agreement as well as the subornation of the option that they will be entering into. and those have, been introdu

office of housing of community development we're looking forward to the assignment of this particular loan to our jurisdiction so we can move forward with m mc in making that affordable housing possible at their 24th street site >> thank you. i move this. >> okay item has been moved by commissioner singh we have a second commissioner mondejar please call roll. >> commissioner mondejar commissioner singh supervisor bustos is absent arrest madam chair rosales madam chair the vote is 3 i's and one absent. >> okay seeing the item passes thank you please call the next item the next order of business is continually authorizing the amendment to the transbay option for the purchase and sale of real property to take related actions to facilitate the transbay joint powers authority and golden sacking by a subject to the approval of the board of supervisors of the city of san francisco the oversight board of the city of san francisco and the california department of transbay project area decision and action madam director. >> thank you madam secretary commissioners i'm sure you're aware of the transb

when diligence managers looked at the loans, they were saying we cannot resell the stuff. it was unacceptable to sales people and upper management. >> you said to a senior official at jpmorgan chase that you have to represent the quality of these loans. if you don't, it's fraudulent. if you do, no one will buy them that way. >> that's right. i stopped the purchase before it happened to get someone to talk about the problems if they put these into a security. >> there's a reference in the article, several references, to the fact that you have the confidentiality agreement. why do you have that. this? >> i mean, it's standard for anyone working in the bank. that's why you see quotes coming out from the d.o.j. that some said we were blowing past our internal warnings. you don't see people talking about it publicly. for me i decided that this is more important. there's investors trying to get their money back, and the public has a right to know what happened. a lot of the information that we are hearing from eric holder, the top level of the juz department, doesn't match what

it's not a mortgage, it's a big loan.or a family getting car repossessed can be a bad thing, something that can hurt their credit scores, a lot of money for them. the fact that it isn't houses doesn't mean to say that it isn't important for these families, and it's a market that seems to be going bad. 6-8 years out of the last crisis we are. >> that was anni lowry, contributing editor to "new york magazine", >> this is the watts in south los angeles most people know. two and a half square miles of run down neighborhoods and housing projects controlled by rival gangs. this is the other side of watts that most people don't see. a neighborhood of murals, street art telling the story of the city's troubled past and hopes for the future. >> you can do like the bottom piece and i could do the top and we can... >> cool. >> the great wall of watts doesn't just represent a victory for artists and curators, like warren brand, it's a rare multi-cultural collaboration. >> we've got one artist over here who's latino, we've got another

it's not a mortgage, it's a big loan.or a family getting car repossessed can be a bad thing, something that can hurt their credit scores, a lot of money for them. the fact that it isn't houses doesn't mean to say that it isn't important for these families, and it's a market that seems to be going bad. 6-8 years out of the last crisis we are. >> that was anni lowry, contributing editor to "new york magazine", >>> in 2 minutes, the surprising place billions of taxpayers money is ending up. >>> settling lawsuits against law enforce. cost cities and taxpayers serious money nationwide. the chicago sun times reported that chicago paid out half a billion over the past decade to settle claims. in 2011, los angeles spent 54 million for claims. and an a.p. investigation in 2010 found new york had paid nearly a billion dollars over the previous decade to resolve claims against the police department. recently baltimore "sun" reporter conducted a 6-month investigation into police payouts in baltimore finding they cost taxpayers $5.7 m

student loans are the only types of loans to be specifically vacated of the most fundamental student protections that exist forever other type of loan, this is bankruptcy protections, this is statutes of limitations, and other protections that people take for granted and they assume are in place for their student loans when they sign for them. i have been looking at this for over a decade. i have not heard one university president say anything about this very unique exemption and to say nothing about the structurally predatory behaviors that this enables. so if i could just get your comments, i i would appreciate it. >> what do you teach? >> caller: i'm actually in charge of a group called student loan.org, i give talks across the country at colleges and universities. >> dr. schlissell? >> those are excellent points. i have to educate myself more because i'm not expert personally in the laws and practices that govern student loans, but i think this is a really interesting area for universities to organize and for our government to act. i'll speak to our government relations people, i

loans.. loanloans loans. the variable is the most powerful predictor of early success and that is first semester gpa. now a couple of ideas for few tour studies that i would like to see on first or second year attention. first semester gpa or are there other more direct impacts on retention in in other words, is there more to the effect after plus loan denial than a student retained and impact on gpa? while this paper does not explore how lingering unmet need for plus loan denial impact gpa or retention just that it does. psycho social implications on students could be very illuminating. one of the questions i also had left is whether the impact of unmet need o is consistent across all levels. did it have the same impact? this paper adds to the body of knowledge about what helps or not at hbcu. resources continue to shrink at campus and federal level. this can be the californplatfor additional research that needs to be done. african-american families were particularly hard hit by the great recession add toget

so that will be true of these loans also. so you can be assured that we are not making credit available to people that we cannot reasonably predict with a high-degree of certainty that they will be able and willing to pay the mortgage. that's not what we are in the business to do. >> my time is up, i will probably submit some additional questions to you. one of them will be to just follow up to see that we get the details on this risk mitigation activity. >> and we'll be happy to come over and brief you as soon as those details, but they'll be u out there pretty vigorously in december. >> all right, thank you. >> senator? >> thank you, mr. chairman, and this being likely one of the last if not the last hearing, let me begin by thank you and the senator for your thoughtful, principled and bipartisan leadership, thank you both gentlemen, very, very much. director watt, the housing trust fund, the capital fund, payments out of the pses have been suspended and we have an affordable housing crisis, i don't have to tell you that. i

teach is saying, forgive our loans. spent $100 million on the midterm elections and wants loans forgiven. i'm a student looking around, of course i should have my loans -- >> i want in on that. ben stein what do you make of that? >> an idea that will solve the problem. a marijuana consumption tax. everybody who wants to use marijuana has to get a license from the federal government. that money used to pay off the student loan debt. >> and the kids paying off their own loans. >> absolutely. exactly right. >> one-stop shopping. >> and think about it, back to the time we started with the bailouts, the banks, extended to the auto rescues, to those behind on mortgages and all, wildly out of control. i don't blame kids today coming out of school for thinking at least one in four of them that they wouldn't have to worry about this. >> i don't blame them for thinking it either but we're doing them wrong, us wrong. i'm not going to take so-called liberal perspective on this one. >> wait, wait. >> i know. >> continue that talk. >

while loans used to average three years, today the average car loan runs five and a half years.n longer for teresa who just signed a six-year loan at 2% to put her college son into a 2011 toyota tundra. >> we wanted a good product. something that would last him a long time with a nice payment. >> reporter: why the longer l n loa loans? to begin with good cars simply are more expensive today. the low rates are making it possible for buyers to drive away in more expensive cars that used to be out of reach. the average car loan is now $27,000. with good credit, five and a half year loans are averaging 3.2%. total cost of financing $2,500. but for customers with weaker credit who pay a 5% rate, the cost of financing jumps to $4,000. the good news? outside kansas city toyota dealer scott adams says cars are also lasting longer than ever before. >> people are keeping their car past the length of the loan no matter how long the loan is. >> reporter: the risk, some people are buying more car than they can afford. >> if you're the kind of consumer who's likely going to want to be back in

for the loan or for tifia and they are a source of full funding for phase one. and so, the district will be formed, and the city will validate the formation, and then, at some point, it could be next fall, once the block six construction has completed. and the city could be in a position to issue bonds. and those bond proceeds, 82.6 percent of those bond proceeds, will come to tjpa for project costs. and it is anticipated what we worked out with the mayor's office that this suggestion of the public finance staff in the controller's office is to use a portion of those proceeds to fully fund, phase one and the remainder which is still quite a significant amount, be used for phase two, and in the downtown extension. >> and is the melaru the condition on getting this loan? >> no. we are covenanting in the credit agreement to work with the city, to the district and we cannot control the formation of it but we do covenant in the credit agreement that we will undergo or undertake our best effort to insure that the district is formed. and of course, you approved the exe

the savings and loan debacle, we made over 30,000 criminal referrals.re, zero criminal referrals as far as we can get any public information. so the first thing holder should've done is reestablish the criminal referral process. because, you know, banks don't make criminal referrals against their own ceos. >> do you tell yourself, well, there is a justifiable and understandable reason why they don't prosecute? >> no, there is no justifiable reason. apparently modern financial regulators are vastly more sophisticated than we were as financial regulators 25 years ago. because we had never figured out that the key to financial stability was leaving felons in charge of the largest financial institutions in the world. >> but they do claim with a straight face that they can't prosecute. >> they make it sound like the only choice we have is to prosecute banks as opposed to bankers. and that's nuts, right? we've always prosecuted bankers. we prosecuted successfully over 1,000 bankers in the savings and loan and bank crises. and those are just the major cases an

found a military member with a loan at 1,700% ap, are just recently, and the reason that that loan can exist is because in texas where we have one of the largest military populations in the country, state laws are weak such that these businesses can get around that state laws are weak, and the lobbies are powerful. you signed a predatory lending restriction bill, about a year later that was unraveled by governor purdue. resoaring that industry, how difficult is it politically to get a handle on predatory lending. >> it is very difficult. in fact, i said that -- i have said many times. the most difficult bill i ever passed was not removing the con federal battle flag from the georgia flag, which was a monumental task. but it was passing the fair lending act. and the lobby is so great, the money spent is so large, that it became almost impossible to pass the bill. i finally just -- i exerted my political capital in passing that pill, only to see it as you said, a few months after i left office, to be repealed than any other bill that i ever passed. >> all right, on that note, i want to t

tjpa seeks to obtain a bridge loan in the amount of $171 million and as security for that loan, certain conditions must met including a deed of trust and negative covenants on certain properties located in the transbay redevelopment area. there is no fiscal impact to the city in this transaction. the city will not be a party to the loan and it is not an owner of any of the property at issue. however since the city is a party to a 2003 cooperative agreement made with caltrans which transferred certain sfait-owned properties in the area to the city and tjpa and since the city is a party to the board-approved 2008 option agreement for the purchase and sale of those properties, including state-owned property own you had by the city, tjpa and the san francisco redevelopment agency, agency, pars3 now ocii the city has to approve any amendment to any agreement including the option agreement. the city does not incur any indebtedness or approve the structure of the tjpa loan. rather it approves certain conditions which allow tjpa to move forward to obtain the interim financing and the loan it ne