Great post Liz.
One illegal alien was arrested this year in Tucson after allegedly using a stolen Social Security number to buy two homes and rack up over $780,000 in bad debt. Some five million fraudulent home mortgages are in the hands of illegal aliens, according to the US Dept of Housing and Urban Development. It's not known how many of those have contributed to the subprime housing mortgage meltdown, but it has affected every state, including Arizona. The problem began years ago when banks were forced to give mortgages without confirming social security numbers or borrower identification. As a result, illegal immigrants were able to obtain home mortgages which they could not afford. One illegal alien was arrested this year in Tucson after allegedly using a stolen social security number to buy two homes and rack up over $780,000 in bad debt.
ILLEGAL MORTGAGE FRAUD MODUS OPERANDI?
ACORN may have collected $millions in fees with ACORN and Fannie Mae insiders, keeping the bulk of the money for themselves. Law enforcement should determine whether ACORN shook down companies looking to do mortgage business and whether Fannie Mae colluded with ACORN and whether ACORN principles did anything illegal to enrich themselves.
ACORN may have shaken-down companies doing business with Fannie Mae to secure jobs for ACORN insiders in order to facilitate the payoff process.
We need to see SEC filings (and amended filings) to see if ACORN insiders were registered as companies that got placement fees and whether ACORN and Fannie Mae colluded to commit government fraud---illegally using tax-exempt monies to facilitate these frauds.
You wanna know how one of the remaining, biggest banks handled these ‘loans’ without succumbing as other institutions have to bankruptcy and takeover?
They gave the loan rather than pay ‘the fine’ for not giving the handout. Then, they put aside the amount to cover the loan, in anticipation of the day when the real debt would accrue, i.e., when the mortgagee walked/balked/filed for bankruptcy.
Billions of dollars were put aside for the express purpose of putting up an internal ante when the house called the bet.
Now, the jobs are scarce and the ‘bankees’ coming home have grim faces. Two reorgs later, American jobs going for $60-90 K are ‘offshored’ to India because it’s cheaper. Code and customer service have to be redone, and you can thank your lucky stars if you actually have a relationship of any kind, personal or no, with a banker handling your accounts.
NINJA loans took the profits of JP Morgan Chase and exported them, making the present bank position attractive and even more powerful.
Fannie/Freddie/ACORN Shakedown + Mr. Potter’s mindset = All you need to know.