HUD fraud costs taxpayers; hurts poor that programs are supposed to help

Mondo QT ^ | 6/22/06 | Carola Von Hoffmannstahl-Solomonoff

[MisterX]

Good overview on how the Department of Housing and Urban Development (HUD) turns a blind eye to massive corruption and fraud in programs designed to create "affordable" housing. The result? Inflated housing costs in poor neigborhoods and financial ruin for poor and working class people who are ripped off by politically connected "nonprofits" and corrupt local governments. Who cleans up the mess? You guessed it -- the taxpayer.

[thoughtomator]

Their internal operations are no better. I know of a particular multimillion dollar expense, the main purpose of which is to pad an executive's resume for a jump into the private sector.

[synbad600]

Wow, the author has one heck of a long name.

[Hydroshock]

The housing bubble is popping louder everyday.

[secretagent]

Appraisers inflate property values. Realtors, closing attorneys, et al, grease the process. Straw buyers are paid to pose as qualified purchasers, using phony proof of income, assets, etc. After an inflated loan is obtained, they decamp. The property slides into default.

But the sale remains on the books as a "comparable" for future appraisals, I guess, inflating future appraisals in the neighborhood..

[1FASTGLOCK45]

jk4hc4 wrote:
Anything that the government does or participates in is always going to be open to the fraudies because its built in for their benefit.

---Your right. My Neighbor is a successful HVAC guy, has his own business. He happened to mention his son was moving into low income housing ( his son works for him); i kept my mouth shut but i was going to ask him how come his son can't afford a real house like he can since his son is his employee. I had a feeling his son is taking advantage of the system.

[Youngman442002]

I worked on some section 8 housing in the 70's....where I lived in a stick built apartment...it was good enough for me...but not good enough for the HUD people..so we had to build precast concrete apartments...they cost about 3 times as much per unit...they could house three times as many people...or have it cost 1/3 less....you go figure....a total waste