UPDATED: FHA:The New Subprime..What Better Time To For Obama To Appoint Penny Pritzker Secretary of Commerce..Update: Pritzker says no, thanks to “vetting issues.”
The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more
As if they haven’t done enough damage. Thousands of subprime mortgage lenders and brokers—many of them the very sorts of firms that helped create the current financial crisis—are going strong. Their new strategy: taking advantage of a long-standing federal program designed to encourage homeownership by insuring mortgages for buyers of modest means.
You read that correctly. Some of the same people who propelled us toward the housing market calamity are now seeking to profit by exploiting billions in federally insured mortgages. Washington, meanwhile, has vastly expanded the availability of such taxpayer-backed loans as part of the emergency campaign to rescue the country’s swooning economy.
- They’re giving mortgage firms licenses to dole out 100%-insured loans despite lender records blotted by state sanctions, bankruptcy filings, civil lawsuits, and even criminal convictions.
- Inside Mortgage Finance, a research and newsletter firm in Bethesda, Md., estimates that over the next five years fresh loans backed by the FHA that go sour will cost taxpayers $100 billion or more.
- Gary E. Lacefield, a former federal mortgage investigator who now runs Risk Mitigation Group, a consultancy in Arlington, Tex., predicts: “Within the next 12 to 18 months, there is going to be FHA-insurance Armageddon.”
Read the entire article! Please-read-the-entire-article! The examples are appalling! This is in no way, shape or form, the American Dream that our ancestors lived. By that I mean, when our ancestors came to this country, they assimilated to this society, meaning the entire family learned to speak English in public. They held one or more jobs in order to provide for their family. They saved their hard earned money and didn’t spend foolishly. They bought their homes with cash, and in the event that a loan was necessary, the banks vetted them and basically made our ancestors put their first born child up for collateral. It was a great source of relief and certainly much pride, when a mortgage was finally paid off. The American Dream was never a promise, it was a goal that our ancestors worked hard to achieve.
Enter Penny Pritzker. The NYT’s claim she has been offered the position of Secretary of Commerce. I told you back in September
Barack Obama’s Finance Chair, Penny Pritzker, has a “special place” in engineering the sub-prime meltdown
“The [sub-prime] financial engineering that created the Wall Street meltdown was developed by the Pritzkers and Ernst and Young, working with Merrill Lynch to sell bonds securitized by sub-prime mortgages,” Timothy J. Anderson, a whistleblower on financial and bank fraud, told me in an interview.
“The sub-prime mortgages,” Anderson said, “were provided to Merrill Lynch, by a nation-wide Pritzker origination system, using Superior as the cash cow, with many millions in FDIC insured deposits. Superior’s owners were to sub-prime lending, what Michael Milken was to junk bonds.”
Let’s not forget how Obama raised all that money:
Bad behavior gets rewarded.
Ed:
Business Week has plenty of examples of this kind of shell game maneuvers in the FHA licensing pool. We’re heading to yet another collapse through yet another government intervention in the lending market. Until we stop encouraging the purchase of bad paper in order to achieve social policy, taxpayers will continue to be at risk, and we risk the collapse of Western economies.
It’s a testament either to The One’s loyalty (she was his finance chair) or to his absolute confidence that the Democrats are bulletproof on the Fannie/Freddie meltdown that he’d consider rolling the dice on this confirmation. Pritzker, you see, was securitizing subprime mortgages long before securitizing subprime mortgages — and driving the economy into a ditch — was cool
Update: Pritzker says no, thanks to “vetting issues.”
Linked with:
- Obama’s first appointment is…Eric Holder? « JoHNBRoDiGaNDoTCoM
- Subprime crisis 2020 begins | skewred.com
- Around The Sphere
- The new Fannie Mae | Citizen-Right
November 20, 2008 - 09:14 AM on November 20th, 2008
[...] Read the original [...]
November 20, 2008 - 09:15 AM on November 20th, 2008
[...] FHA:The New Subprime..What Better Time To For Obama To Appoint Penny Pritzker Secretary of Commerce The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more As if they haven’t done enough damage. Thousands of subprime mortgage lenders and brokers—many of them the very sorts of firms that helped create the current financial crisis—are going strong. Their new strategy: taking advantage of a long-standing federal program designed to encourage homeownership by insuring mortgages for buyers of modest means. You rea [...]
November 20, 2008 - 12:15 PM on November 20th, 2008
I just read an update On Huffington that the Chicago Tribune says she has decided she does not want to be Secretary of Commerce.
November 20, 2008 - 12:20 PM on November 20th, 2008
I think you were posting when i was updating!
I think this country can do a lot better!
November 20, 2008 - 12:30 PM on November 20th, 2008
[...] UPDATED: FHA:The New Subprime..What Better Time To For Obama To Appoint Penny Pritzker Secretary of … The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more As if they haven’t done enough damage. Thousands of subprime mortgage lenders and brokers—many of them the very sorts of firms that helped create the current financial crisis—are going strong. Their new strategy: taking advantage of a long-standing federal program designed to encourage homeownership by insuring mortgages for buyers of modest means. You rea [...]
November 20, 2008 - 12:40 PM on November 20th, 2008
LOL Pam. I think I can agree here.A better choice is surely available. This is not my idea but I’m thinking the government might be better off by simply switching people from social security administration who check people trying to get disability with the supposed people whose job it is to check these lenders and their practices.I promise you the SSA goes over your life from birth to next year.As they should but surely these people involved in the lending industry should undergo at least the same scrutiny.
November 20, 2008 - 06:31 PM on November 20th, 2008
[...] UPDATED: FHA:The New Subprime..What Better Time To For Obama To … They’re giving mortgage firms licenses to dole out 100%-insured loans despite lender records blotted by state sanctions, bankruptcy filings, civil lawsuits, and even criminal convictions. Inside Mortgage Finance, a research and … [...]
November 20, 2008 - 07:51 PM on November 20th, 2008
[...] UPDATED: FHA:The New Subprime..What Better Time To For Obama To … What Better Time To For Obama To Appoint Penny Pritzker Secretary of Commerce The same people whose reckless practices triggered the global financial crisis are onto a similar scheme that could cost taxpayers tons more As if they … [...]