Posted on 01/04/2009 6:56:46 PM PST by Fred
California Rep. Joe Baca has long pushed legislation he said would "open the doors to the American Dream" for first-time home buyers in his largely Hispanic district. For many of them, those doors have slammed shut, quickly and painfully.
Mortgage lenders flooded Mr. Baca's San Bernardino, Calif., district with loans that often didn't require down payments, solid credit ratings or documentation of employment. Now, many of the Hispanics who became homeowners find themselves mired in the national housing mess. Nearly 9,200 families in his district have lost their homes to foreclosure.
Congressional districts with large Hispanic populations often feature heavy nonprime lending. See how different districts break down in terms of prime and nonprime home loans.
For years, immigrants to the U.S. have viewed buying a home as the ultimate benchmark of success. Between 2000 and 2007, as the Hispanic population increased, Hispanic homeownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the U.S. Census Bureau. Over that same period, homeownership nationally grew by 8%. In 2005 alone, mortgages to Hispanics jumped by 29%, with expensive nonprime mortgages soaring 169%, according to the Federal Financial Institutions Examination Council.
An examination of that borrowing spree by The Wall Street Journal reveals that it wasn't simply the mortgage market at work. It was fueled by a campaign by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, who all were pushing to increase homeownership among Latinos.
The network included Mr. Baca, chairman of the Congressional Hispanic Caucus, whose district is 58% Hispanic and ranks No. 5 among all congressional districts in percentage of home loans not tailored for prime borrowers. The caucus launched a housing initiative called Hogar -- Spanish for home
(Excerpt) Read more at online.wsj.com ...
Nearly two years ago I posted here that the subprime problem was an illegal alien problem, and was taken to task for it by scores of Freepers falling for the MSM line that it was house flippers and yuppies using the money for their new Lexus.
I told ya so.
Yeah but its a small price to the democrats to get that deomocratic vote because the loss does not come out of their pockets but in the end come out of us good rich tax paying republican pockets in billion dollar bail outs. The banks fail in the area and guess who buys the banks at cheap prices pennies on the dollar, fat cat democrats like George Soros. To me it seems the Democrats really bought this election but now the average america is going to have to pay for this, hopefully next election cycle most of these corrupt politicians and fat cats will get kick out of office.
My favorite story is about the Illegal strawberry picker who “bought” an $850,000 house. Yeh, sure he did.
Well, that and “black”.
Overall, the current financial crisis is the first truly global disaster brought on by the cult of “diversity”. It will not be the last.
Sadly, the Democrats have been aided and abetted all along the road by men like John McCain and George W Bush. As long as the upper crust of the Republican party buy into the “diversity” mythology, there is little long-term hope for Conservatism in the United States.
If you want to be prosperous some day, vote Republican. If you want to spend your life on the dole wishing you were better off and blaming white people for your situation, then, vote for Democrats. Life is so simple, no?
Thank you Federal government!
“Housing Push for Hispanics.....”
Thank you George W. Bush and his “Ownership Society”
President Calls for Expanding Opportunities to Home Ownership
June 17, 2002
(excerpts)
“Now, we’ve got a problem here in America that we have to address. Too many American families, too many minorities do not own a home. There is a home ownership gap in America. The difference between Anglo America and African American and Hispanic home ownership is too big. (Applause.) And we’ve got to focus the attention on this nation to address this.
And it starts with setting a goal. And so by the year 2010, we must increase minority home owners by at least 5.5 million. In order to close the homeownership gap, we’ve got to set a big goal for America, and focus our attention and resources on that goal. (Applause.)
And I picked a good man to help realize that goal, in Mel Martinez.”...
......” And less than 50 percent of the Hispanics who live here in this country own their home. And that has got to change for the good of the country. It just does. (Applause.)
And so here are some of the ways to address the issue. First, the single greatest barrier to first time homeownership is a high downpayment. It is really hard for many, many, low income families to make the high downpayment. And so that’s why I propose and urge Congress to fully fund the American Dream Downpayment Fund. This will use money, taxpayers’ money to help a qualified, low income buyer make a downpayment. And that’s important. “....
“And we want to fully implement the Section 8 housing program, homeownership program. The program will provide vouchers that first-time home buyers can use to help pay their mortgage or apply to their downpayment.
Many of the partners today, many of the people here today, many of the business leaders here today are creating a market for the mortgages where Section 8 vouchers are a source of the payment. And that’s good — see, it’s an underpinning of capital. It helps move capital to where we want capital to go. “
http://www.whitehouse.gov/news/releases/2002/06/20020617-2.html
with the large (and growing) stockpile of houses and the even larger stockpile of cash the govt has given the banks sadly i see this whole vicious cycle starting again
Presently, neighborhood busting aka gentrification is being carried out by nonprofits. They buy the foreclosed property, sell the house, and lease the land.
And, those same nonprofits may not be paying property taxes on the land.
Same thing... no property taxes for universities in Boston who gobble up what were once residential areas to expand their universities.
It predicted that when Marxism and Capitalism collide, the result is a "servile state" -- one in which many people are *forced* to work for the benefit of others.
Sounds like what we have here with tax freedom day, etc., eh?
NO cheers, unfortunately.
The REALLY sad part is that these economic issues force the so-called “hardworking family” aliens out, but do nothing about the criminal, gang-related aliens that prey on us. Frankly, being able to hire humble illegals was a good deal for every body, but the inability or refusal of the govt to control and deport the criminal element has spoiled it for everybody.
My point EXACTLY.
With so little attention being given to the TRUTH about how this crisis came about in the first place...we are certain to be repeating it. Even as we speak, I’ll bet mortgages will continue to be given to INELIGIBLE poor (Section 8s) and ‘minorities’ (illegal aliens)in order prevent, they will say, further foreclosures. The bailout ‘fix’ is only going to postpone the inevitable.
Another popular N/P scam is to artificially inflate the value of land as a tax write-off scheme.
The landscape is littered with these "foundations and charities." As one exmaple, Brooklyn, NY residents registered some 800 Non-Profits in Lakewood-----a small flea-bitten central New Jersey town.
The IRS has asserted that tax-exempt non-profits ("foundations and charities") are the locus classicus for IRS fraud.
Investigators may be looking at the legal parameters of prosecutable crimes including making false statements to state and federal officials, filing falsified documents, obstruction of proceedings before state and federal agencies, fiduciary negligence, and obstruction of US justice.
The N/P's might have facilitated IRS fraud by integrating:
1. Secret control over N/P fund-raising committees.
2. Requiring only one signature on tax-exempt N/P bank checks.
3. Utilizing pre-signed tax-exempt N/P bank checks.
4. Using secret bank accounts to keep secret the actual financial position of tax-exempt N/P's.
5. Assigning bank deposit and account reconciliation functions of tax-exempt N/P's to one person.
6. Conspiring to hide oversight of expenses and supporting vouchers from public view.
7. Having no outside auditor to review tax-exempt N/P's statements.
8. Cashing unusually large amounts of tax-exempt N/P checks.
9. Having no official tax-exempt N/P deposit and withdrawal control system.
Authorities should investigate the N/P’s US Postal Service mailings, wire transfers, computer transfers, electronic submissions, and unregulated money transfers, and all bank transfers connected to secret tax-exempt non-profits’ bank accounts.
Fraudulent tax-exempt non-profit activities might have involved using checks passed from one account to another in multiple conspiracies to launder monies.
The stratagem could have been international in its scope due to worldwide connections.
Authorities need to determine the extent to which donors to N/P's colluded in schemes that may have included misusing reserve bank accounts, concealing transfers, inflating asset values and improperly accounting for transactions.
A formal inquiry should be conducted into N/P's financial activities with officers of publicly-held companies) including (1) Enron-style accounting frauds by manipulating N/P records, (2) bundling contributions into the pockets of politicians, (3) the extent to which networks of companies are financing political candidates in the names of business partners without their knowledge or consent, (4) the extent to which officers of publicly-held companies used accounting fraud to hide illegal campaign contributions, and, (5) the extent to which campaign donations exceeded campaign-finance limits.
Charges might include N/P's accounting managers misappropriating funds to cover personal expenses, fraudulently overcharging for management services, diverting non-profit funds, then converting them to campaign accounts, or in the style of WorldCom greed spending thousands of non-profit dollars on organization credit cards for personal expenses.
A formal inquiry should be undertaken with respect to the N/P's relatives, associates, co-conspirators or subsets of them, and donors (particularly officers of publicly-held companies), the business dealings between recipients, employees and elected and appointed officials and the extent to which influence-peddling is taking place, and more specifically the extent to which relatives, associates, and principles of the N/P's and co-conspirators or subsets of them, directed political activities from tax-free non-profit organizations in illegal arrangements.
The BIGGEST FRAUDS are between N/P and N/P.....writing checks to each other (which is the MO for laundering tax-exempt monies).
Authorities need to determine the extent to which N/P's manipulated philanthropic transactions, such as:
(1) loans, the (2) sale, (3) exchange or (4) leasing of property to related organizations, and donors, and the extent to which organizations reported (5) "excess benefit transactions" on Form 990, and, (6) the extent to which executive pay was properly accounted for with the IRS.
The N/P's need to reveal the dimension of contributions these organizations that may have been illegally redirected to political activity and be requested to explain:
(1) how the N/P's solicit non-profit contributions,
(2) how non-profit donations are made, and,
(3) the manner in which donors to the N/P's (particularly officers of publicly-held companies allocated company assets).
The N/P's should be asked for details about who inside, and outside, these organizations is soliciting contributions, how the various subcommittees are funded, and the extent to which the N/P's and their donors (particularly officers of publicly-held companies) are colluding to perhaps finance political campaigns surreptitiously, and are engaging in other illegal transactions.
Housing push for people who could NOT or should NOT become owners is the major cause of foreclosure.
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