MASSIVE MORTGAGE FRAUD---TAXPAYERS GET SOCKED A 2009 Wall Street Journal investigative report WRT the subprime mortgage borrowing spree that wreaked havoc on the US economy revealed that----according to the Federal Financial Institutions Examination Council---financial schemes by low-income housing groups, Hispanic lawmakers on Capitol Hill, including a congressional Hispanic housing initiative, subprime mortgage lenders and brokers, colluded together in fraudulent schemes to increase homeownership among Latinos using falsified applications, and other tricks of the trade.
The massive mortgage fraud ended in disaster for which no one has been held responsible. Taxpayers got saddled with billions of dollars in bailout bills.
These subprime activities were not simply the mortgage market at work. They were fueled by avarice, greed, stupidity--all enabled by Congressmen and other groups which leave a trail at the door of then-Cong Joe Baca (D-Cali).
Between 2000 and 2009, Hispanic populations increased; but Hispanic home ownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the US Census Bureau. Over that same period, homeownership nationally grew by an enemic 8%. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained costly non-prime mortgages---soaring to a shocking 169%, (Research provided by Wall Street Journal)
The subprime mortgage bank fraud network was spearheaded by then-Cong Joe Baca (D-Calif 43rd), in his powerful position as chairman of the Congressional Hispanic Caucus. Baca's district ranks No.5 among all US Congressional districts in percentage of home loans tailored to sub-prime borrowers.
Baca used his the legislative power of his office and his leadership position in the Congressional Hispanic Caucus to calculatedly launch a housing initiative called "HOGAR"-- Spanish for home.
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CONSPIRACY AND COLLUSION---The Congressuial Hispanic caucuss has been quiet about its role in financing, and, earmarking, the blood-thirsty America-hating La Raza. race-based "La Raza" was given tax dollars and Congressionsl earmarks to finance its so-valled mortgage activities. La Raza's "strategic partnerships” with Wachovia and Bank of America forced the fraudulent mortgage-application requirements and documentation standards.......whuch caused taxpayers to be socked w/ billions in bailouts......decimating the US economy. economy.
La Raza aided and abetted risky federal and private-home loans to latinos over the last decade. thanks to the lending industry’s version of “don’t ask, don’t tell.”
In addition to millions of federal tax dollars, La Raza also collected a $1 million Democratic earmark that funded “community-development” projects. Analysts report that much of it went to "mortgage counseling."
W was a part of this scheme, too. He bragged in many speeches about how minority home ownership had increased under his leadership.
The biggest fraud of the whole deal was the taxpayers bailed out the banks yet the banks still got to keep the foreclosed properties and then got to sell them again.
I remember in about 2004-2007 San Diego County homebuilders had big billboards in Tijuana at the border crossing advertising new homes for sale in Chula Vista (near San Diego). A few years later about half of those new houses were in foreclosure. The banks made loans to people and the banks did not know which Jose Gomez or which Juan Hernandez they were dealing with. I am convinced that the Mexican mafia made tons of money buying homes with straw buyers.
Liz, you are a priceless resource.
Thank you for your research.