Richard Thornton | The Dirty Little Secrets of America’s Foreclosure Crisis

 

The Dirty Little Secrets of America’s Foreclosure Crisis

The little known causes of current foreclosure crisis

The current Great Recession is unique in world history because it BEGAN with high levels of foreclosures in the Southeastern United States.  In the past, the beginnings of recessions and depressions have been landmarked by the sudden collapse of stock markets.   Wall Street appeared to be thriving for almost two years, while a collapse of the real estate market spread across the United States.  There was no response by the Bush Administration and Congress until several Wall Street financial institutions collapsed.  For several months in late 2008 and much of 2009, it appeared that the world’s financial institutions would also collapse.  The economies of several nations are still on precarious financial cliffs.

In many areas of the United States, construction has been almost non-existent since 2008.  Several million Americans employed by the construction industry have NEVER been listed with the unemployed, because they were owners of small professional firms or independent contractors.   The Department of Commerce defines unemployment as those persons, who have applied for unemployment benefits.  This is one reason that the Bush Administration was surprised by the sudden financial collapse of Wall Street.  There were massive levels of unemployment the previous year, not recorded by the Department of Labor. The high levels of unemployment in several regions was initially invisible to the federal bureaucrats inside the Beltway.

Mortgage bankers found ways to bypass loan modification programs

The laws passed by Congress that were intended to stem the tide of foreclosures were essentially based on the assumption that America’s financial industry wanted to preserve the nation’s commitment to home ownership.  That is the basic fallacy of the legislation.  The mortgage banking industry, for the most part is motivated by maximizing its profits and salaries while paying substantial dividends to its investors.  Congress did not include adequate enforcement of the law.  The medium and small mortgage companies were out of range of the Obama Administration’s “radar” and therefore, did what they pleased.

This writer’s experience with the loan modification appears to be typical.  The first application was “misplaced” and never processed.   The second application was declined because my mortgage payments were current.  The third application was not acted on for three months, and then declined because I was a self-employed architect.  I had a signed contract with a municipal government that would have paid commissions sufficient to cover all my living expenses for 10 months.  The mortgage company stated that its policy was that future professional income could not be counted as income.  This was in violation of federal law, but no one in HUD would enforce the law. 

My house was foreclosed before I could begin the large project. The attorneys involved in my foreclosure were paid by the American tax payers, four times what I owed in back mortgage payments for the modest house. The politically influential mortgage industry has received billions of dollars of income from the taxpayers as a result of the massive level of foreclosures in our nation.  The primary financial incentive for mortgage bankers is to unload any marginal loans as fast as possible so they can receive their “foreclosure bonus.”  That is why the loan mitigation program has not been effective.

Continue reading on Examiner.com The dirty little secrets of America’s foreclosure crisis – National Architecture & Design | Examiner.com http://www.examiner.com/architecture-design-in-national/the-dirty-little-secrets-of-today-s-forclosure-crisis#ixzz1OWY4W7aD

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4closureFraud.org

Comments
9 Responses to “Richard Thornton | The Dirty Little Secrets of America’s Foreclosure Crisis”
  1. Jesse Schachter says:

    Richard,

    You wrote:

    “The laws passed by Congress that were intended to stem the tide of foreclosures were essentially based on the assumption that America’s financial industry wanted to preserve the nation’s commitment to home ownership. ”

    I don’t think this is the case at all. The Loan Mod program was intended to help those who invested in mortgage backed securities, not homeowners. The telltale clue comes in the fact that HAMP mandates that homeowners with equity in their homes (those least likely to re-default) be categorically excluded from a modification, because the investor in the mortgage backed security will realize a better cash flow by tapping into that equity than by providing a modification. (see FDIC guidelines, page 3). Compare this to the Home Owners Loan Corporation of the 1930’s, which offered new mortgages directly from the Federal government, and whose historic statistics show that homeowners with equity were in fact the least likely to re-default, exactly as one would intuitively expect.

    To make matters worse the HAMP web site never asks about equity; just income and housing expense, falsely suggesting that these homeowners are likely candidates for a modification, luring them into trial mods that are doomed from the start, to fail, and virtually guaranteeing an accelerated [dual] path to foreclosure.

    Even the 50 State AG’s investigation intended to help investors, not homeowners. Tom Miller stated:

    “To be clear, the States do not believe that every foreclosure is a tragedy that must be avoided. To the contrary, we have consistently stated over the last three years that we are only interested in modifications where the cash flow from the modification exceeds the expected proceeds from a foreclosure sale.” [ie exclude homeowners with equity because that equity provides the investors with a fine cash flow]

    All this talk about the government’s interest in helping homeowners is a scam. They are helping investors, and selling it falsely as programs to help homeowners. If the banks won’t make the banks take write-downs and they mandate that they don’t help those with any substantial equity, who are they supposed to help?? Sad to say, this is America today.

    • l vent says:

      I agree with you 110%. The loan mod program was a ruse, a distraction. The HAMP was merely put in place to prop up the ongoing criminal enterprise who ROBBED AMERICA BLIND.

      OUR homes are paid for free and clear and have been since the Origination Fraud occured.

      There are many dirty little secrets, they are still trying to hide.

      For one, they NEVER secured their collateral lien, because there never was one and two, they NEVER assigned the notes to the trusts..

      It was the biggest FOREIGN PONZI SCHEME SWINDLE AND HEIST IN HISTORY and our homes are paid for FREE AND CLEAR BECA– USE OF IT.

      BEHIND THE SCENES OF THIS THERE ARE SOME REALLY DISGUSTING GREEDY ELITE BASTARDS WHO WANT THE PEOPLE TO OWN NOTHING BUT THE DEBT THEY CREATE WHICH IS UNSUSTAINABLE.

      THIS IS THEIR OWN FAULT BECA– USE OF THE INTENTIONAL FINANCIAL CRISIS THAT THEY CA– USED AND PURE GREED,

      THEY MADE HUNDREDS OF TRILLIONS OF DOLLARS OFF OF THE MORTGAGE FRAUD, PLUS THE 3 TRILLION+ IN BAILOUTS, ETC.

      GO TO YOU TUBE AND SEARCH FOR: CNBC ILLUMINATI CRASHES STOCK MARKET.
      What the FOREIGN OWNED MULTINATIONALS REALLY WANT IS AMERICA TO BE A NATION OF RENTERS WHO NEVER OWN THEIR HOME.

      TOO BAD THAT THEIR PERPS SCREWED THEM AND NEVER SECURED THEIR LIEN.

      THESE ELITE ARE THE TERRORISTS WHO HATE OUR FREEDOM.

      LET’S KEEP FIGHTING THE FOREIGN MULTINATIONAL TYRANNY WHO WANTS NO LESS THAN OUR NATIONAL SOVEREIGNTY!!!!!!

      THIS IS ALL ABOUT WORLD DOMINATION BY A FEW HUNDRED ELITE WHO WANT TO OWN AND CONTROL EVERYONE AND EVERYTHING

      OUR U.S. CONSTITUTION AND OUR U.S. BILL OF RIGHTS OVERULES THAT TYRANNY!!!!!

  2. Frank says:

    Can we really assume that the following is true? :

    “The laws passed by Congress that were intended to stem the tide of foreclosures were essentially based on the assumption that America’s financial industry wanted to preserve the nation’s commitment to home ownership. ”

    The laws were intended to help Banks, not homeowners. This is ESTABLISHED fact. However, this is the Examiner and this is an op-ed.

  3. debi J says:

    If u read the tarp agreement it was intended to make the modification process more manageable. Freddie and fannie are the true major culprits. Look into their recent background and u too will be ill. I was physically sick after I read of the 65Tin CDS’s. That is insane. How could they leverage our mortgages without the notes to the tune of 70:1??? How the F did this happen? Look into the monsters and see how they have committed every kind of fraud imaginable. How in the F will we ever trust our government or banking institutions ever again. They gained our trust then ripped it away from us and defrauded each and every one of us using our own money. Follow the money and the fraud is clear. They cannot modify –if they have NO standing to do so!! Its so easy. Look into the PSA’s and missing assignments and the fraud docs from LPS. The subsiderary list will choke the strongest of us. It hit me like a ton of bricks. OMG what have they done. There truly is no way out. It is way to big when u r looking at only CDS’s of 65T. Holy moses everyone put on your seat belts this is gonna be a very turbulent ride. May God bless those still worthy and the rest give the Devil his DUES. Deb. 5613899339 — boynton bch florida

  4. Pamela says:

    Self employment is always at risk in the mortgage or credit market.They will not even allow you to take out credit insurance if you are self employed because you are looked at as more of a credit risk than someone who is employed at minimum wage and working even part time.As stupid as that sounds you shoot yourself in the foot for being self employed and trying to get anywhere.You pay higher self employment taxes than someone who is hourly paid.What a farce!!!There is no good way to go in these industrys.

    • Herb says:

      It doesn’t take a science professor to figure out that the banks have been defrauding the people with the government pushing the plow. “WE THE PEOPLE ARE TO BIG TO FAIL” it has nothing to do with who is in default at the time of foreclosure. If everyone looked over their mortgages and Notes they signed and just looked for the wrong dates, differences in the disclosures and the Notary stamps that are out of date my months and not even in the same county as the closing, and all the phony paperwork that was all just copies with unsigned blank spaces with some invisible MERs as assignees who never seen the Note or Mortgage, and still can foreclose on the American dream, is just B.S. . The banks and lenders that destroyed this country is still running rampant with the government bailouts that are just as phony, to make more money from the rightful owners of the United States Land. Look at the reputation of the U.S., it should show you what is really going down, They screwed the American Indians out of their land that they worked for hundreds of years before some moron set sail from overseas, and decided to stake claim to someone else’s property. Does this sound familiar?. Don’t get me wrong, I am not an irate Indian, but my ancestors were from Germany, and that is just as bad, look what Hitler tried to do, with the help from most of the companies and banks that are too big to fail now. Google Hitler’s financiers, and you will see all the big names still in business that was in business then, and still is today. This is America, home of the bold faced liars.
      They are still trying to take America apart, because the People are too big to beat, so they send in the government with some bulls**t line and a new program to disguise the fraud, then make up another crisis to hide the last one. Iran and Iraq were just those disguises the government used to cover up this whole mess, but could not get rid of the smell, and the people are starting to figure it out.

      • l vent says:

        America is finally waking up to all of the lies the JESUIT/ VATICAN OWNED and operated Federal Government have been feeding us through the media that they own and control. The mainstream press is full of yellow journalism and foreign multinational commie propaganda. They all wear two faces and play both sides of the coin. That is how they pull of their crimes against humanity by using this deception. They call it BLACK IS WHITE and ORDER OUT OF CHAOS. WHICH REALLY MEANS THEY REALLY WANT TO CREATE, U.N./ NEW WORLD ORDER OUT OF CHAOS. THEY ARE WHO HATES OUR FREEDOM AND WANT NO SOVEREIGN NATIONS. THEY — USE PERPS WHO POSE AS AMERICAN INSTITUTIONS AND TREASONIST POLITICIANS TO PULL OFF THEIR MASSIVE AND PERNICIOUS CRIMES. THE U.S. GOVERNMENT IS COMPLETELY CORRUPTED BY THEM AND THEY HAVE COMPLETELY LET THE AMERICAN PEOPLE DOWN WITH THIS INSIDE JOB AND 9/11. THEY COULD HAVE NEVER PULLED THIS OFF WITHOUT THE — USE OF THESE HIGHLY DECEPTIVE PRACTICES. THEY WERE FANNIE AND FREDDIE AND THE BIG BANKS AND WALL STREET AND THE SEC AND THEY ARE HIDING ALL THROUGH THIS BOTH BEHIND THE SCENES AND IN PLAIN SIGHT. THAT IS HOW THEY GAINED OUR TRUST BY PRETENDING TO BE AMERICAN INSTITUTIONS…THEY ALWAYS TAKE ON NEW IDENTITIES TO HIDE WHO THEY REALLY ARE WORKING FOR AND IT IS NOT WE THE PEOPLE. DEATH TO THE TYRANNY BOTH INSIDE OUR OWN GOVERNMENT AND IN THE FEDERAL GOVERNMENT!!!

      • Tim Bryant says:

        There are other entities which have not been discussed, captives. That are the banks offshore origination and servicing units. I believe that is why a lot of the robo-signors have very foreign sounding names. I would guess, ultimately, the captives were doing a large portion of the fraudulent practices. Companies like this one…helped fuel the subprime and nonprime markets… http://zingenuity.com/about.php

      • l vent says:

        I believe that they are hiding alot of things in cyberspace and overseas including our stolen wealth. Hiding behind the scenes of this scheme are the foreign owned and operated multinationals who pose as American Institutions all throughout this Ponzi Scheme Swindle and Heist. MERS is the french world for sea. The “loans” when they go into MERS ARE CALLED MOM LOANS. MOM stands for MILTARY OF MALTA. The head of the beast is the HOLY SEE IN VATICAN CITY. The FEDERAL GOVERNMENT, the Banks, and Wall Street are all just tranches of the HOLY ROMAN EMPIRE, and that includes the hijacked treasonist and corrupted U.S. GOVERNMENT. These foreigners A/K/A the FEDERAL TRANCH, may have hijacked America, but they do not own it yet. They are who hate our freedom and they want no sovereign nations. Funny thing is that Vatican City is a sovereign nation but they want no sovereign nations.. Greedy bastards. DEATH THE THE REVIVED ROMAN EMPIRE U.N./NEW WORLD ORDER, FOREIGN FASCIST TYRANNY!!!!!!

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