Jane

Total Rating:
+5 / 0

23 Comments

    • Thu Nov 13th 12:08 PM | Rating: +1 0
      Commented on:
      Misguided Policies
      It's not just mortgage brokers and real estate agents who are delusional, you can add homebuilders too. Their plea for a bailout and govt tinkering w/house prices is evidence of that. I am thoroughly disgusted with America's corporations. They spend zillions every year lobbying for less accountability for themselves and claim it's about capitalism and in some way good for the consumer. But when their greedy, stupid, even criminal business practices drive the economy off a cliff, they suddenly turn socialist, but only for their own benefit as usual. These companies deserve to fail, and frankly many of their upper management & CEOs should be doing prison time. They've been immune from indictments by paying fines to govt agencies or getting no punishment at all. The same actions by lesser companies have resulted in bankruptcies and even arrests. There is no good reason the big companies' people should be treated differently than the rest of society.
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    • Thu Nov 13th 11:59 AM | Rating: +1 0
      Commented on:
      Prosecutors Going after Fraudulent Mortgage Borrowers
      Anyone who was complicit in fraud should be subject to prosecution, however the instigators should be dealt with more severely. The instigators are those in the industry who created this situation, including those who even now are pushing no-down loans, claiming prices will soon go up again, and throwing in incentives that keep prices artificially high and fool lenders into thinking the buyer paid that much for the house, when they got cash back, a 'free' car, etc.

      I've seen several credible sources that state the industry is the instigator. The FBI, plus the lawyer who has the mortgagefraudblog.com site, to name just two. Add another, the IRS, which called many of the now banned down payment assistance programs a scam. FBI found years back that the industry was doing 80% of the fraud. The FBI also warned of this exact economic mess but the agency was given no resources to attack the growing problem when there was time to prevent damage.

      Aside from that, some of the "buyers" are just wannabe investors, and some are crooks, (straw buyers). Straw buyers being recruited by, again, industry insiders many of the time. These are not buyers who intend to live in the house. Years ago such speculators and crooks were accused of inflating prices so people could not afford a home, and nothing was done. Why? Because it was "only" consumers getting hurt.

      I do agree that some buyers who live in the houses were greedy, foolish, and at times lied to get the loan. I don't believe in going soft on buyers who did these things.

      But some buyers were victims of mortgage fraud. They were certainly as much a victim if not more so than the banks now whining for a bailout. Where were these industry professionals experts when they should've been doing their due diligence? They were looking the other way, thinking of that big fat commission, and expecting to stick someone else down the food chain with the bill. Though more of this view is creeping into mainstream media, it's not near enough. The CBS's, ABC's, NBC's MSNBC's and Fox's etc's reporters still are ignoring the truth about this; that the real estate and finance industry lobbied its way into immunity for a giant fraud they perpetrated against this country, and they are not being held accountable. Blaming home buyers is a diversionary tactic as home buyers were duped, defrauded, scammed, whatever, much more than they were sophisticated criminals like industry insiders were.

      Perhaps the media focuses on the little people, the liar loans and fool speculators, because that pleases the industry advertisers more. I have seen some real sacks of crap shown as an example of buyers hurt by the housing 'crisis.' Why doesn't the media show more of the actual victims of fraud, those are people who deserved the govt's help years ago when they reported the fraud and were told to just "get a lawyer." Why doesn't the govt now tell these crybaby builders, banks, etc, to just "get a lawyer?"
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    • Sun Nov 9th 08:17 AM | Rating: +3 0
      Commented on:
      It Might Be Impossible to Stop the Decline of Housing Prices
      Prices must come down to levels that are in line with incomes. This is the denial part, that many in the industry refuse to accept. This is the result when an industry and govt help create a bubble...it bursts!
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    • Mon Nov 3rd 15:13 PM | Rating: 0 0
      Commented on:
      NAHB May Be On Its Way To Irrelevance
      I personally would love to see the NAHB disappear. Over the years this trade group has pumped many millions into lobbying for causes that ultimately harm consumers and protect bad builders. Good builders have grumbled privately how they think membership in builders groups is useless, just a cost of appearing to be qualified in the public's eyes, like membership in the BBB or local builders associations.

      Good builders privately admit the industry has pushed for more and more shortcuts, that seriously shorten the life of new homes and force homeowners to incur many more expenses than they should have to. If only these good builders had taken the reins a long time ago instead of letting their industry become corrupted. If only that kind of money had instead been invested in education on PROPER construction, instead of legally advising members how to protect their assets and avoid liability.

      The question is, will the NAHB disappear as they should, re-emerge as some new but equally useless group, or just continue to exist as is?

      It's about time good builders again took control of this industry and restored it to respectability. Maybe w/the NAHB out of the way, they can. Restoration of credibility to this industry isn't going to be done by underhanded lobbying and spin. It'll be done by building houses right and honoring their contracts, for each and every customer, every single time. Only those builders who can do that tend to survive downturns, and only those who can do that, should. Most of today's builders, including publicly traded ones, have lost their way and should not be in business. Today's houses are far too often "disposable,"... the owners just don't necessarily realize it until it's too late.
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    • Fri Aug 1st 10:49 AM | Rating: 0 0
      Commented on:
      Down Payment Assistance Cancelled For Builders [Housing Tracker]
      IMO it's a good thing down payment assistance (DPA) programs were banned. Over the last few years I've seen them called a "scam" by the IRS because the "charities" doing them are basically just laundering money for builders. Artificial price inflation, risky loans, getting people into houses they can't afford, and increased foreclosures because of these things is NOT helping Americans achieve homeownership, it's helping Americans ruin their credit and finances for years to come. It is part of the cause of the bubble and bust. What I still find idiotic is there are still so many people in and out of the industry, and in govt, who STILL insist that we must stop the drop in house prices. This value was never real, and in some cases was fraudulent due to lenders and builder coercing appraisers to meet the number. Many appraisers have been quoted in the news saying this was going on and they'd get blackballed for not going along. Prices need to come back down to reality, to be in line with incomes. Until they do come down and consumers are again in a financial position to buy a house they can afford, with a loan that isn't risky, housing will not "recover." The economy put too much into housing, we were too dependent on this unsustainable growth and fake appreciation. It was never going to last and if the govt and industry had listened to warnings years ago, they could've reined it in before it got to this situation. Instead this industry shot itself in the foot out of greed. I don't like any bailout idea, but at least the builders didn't get their whole wish list, and at least those stupid DPA's are gone.
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    • Tue Jul 29th 14:13 PM | Rating: 0 0
      Commented on:
      Why the 2008 Housing Relief Bill is No Relief
      Most of this so-called "help" to homeowners is just to move more houses for the benefit of the real estate and mortgage co's. As with the tax credit that has to be paid back, etc, homeowners will get little if any benefit, but plenty of "investors" and industry insiders will figure out how to game the system at tax payers expense!

      Builders, realtors, banks, lobbied heavily for various bailouts and their wish lists were for THEMSELVES not for homeowners as they tried to make it appear to the public.

      Many of the buyers during the bubble were not planning to live in the house, at least not for long; they were flippers. And some home buyers were victims of mortgage fraud including such outrageous examples as forgery, etc. Some big co's were doing this, it wasn't just the loan shark on the corner but co's people still refer to as "big well known reputable trusted companies." Somehow many Americans still believe a "big" company automatically deserves their trust. NOT! Many insiders including big co CEOs were either arrested or are under investigation but many more need to be. And many smaller less well-connected insiders are facing trials. It's still not enough, and this action by law enforcement now is too little too late. It's not as if there were no warnings years ago!!!

      I saw almost nothing accurate or complete in coverage in mainstream media--print newspapers and TV news--about the bubble or the bailout. This means most of the country still thinks the bailout is for homeowners, particularly irresponsible ones. It's obscene how twisted the main media sources are. And all these seniors who are so afraid the internet is a hot bed of crime would do well to get online at the local library and read up on reverse mortgages, mortgage fraud, etc, so they don't become the next wave of victims! All I'm really seeing on the morning news is a PUSH for seniors to get into these things with little or no warning of how to identify the scam and rare mention to get a competent lawyer before signing one. If corporate american can silence the truth about all these scams we can expect wave after wave of scandals, bubbles, etc, and if the next wave is senior mortgage scams as I believe it may be, we can all count on figuring out how to bail out our elderly parents in a few years.
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    • Thu Jul 17th 13:09 PM | Rating: 0 0
      Commented on:
      Homebuilders Woo Back First-Time Homebuyers [Housing Tracker]
      Maybe one of the lessons that needs to be learned is that the govt isn't making sure these co's don't keep repackaging the same old scams with new ribbons and bows. Consumers are expected to have enough financial knowledge to recognize the scam and refuse it, even while the govt looks the other way or even encourages the scam. The whole push for homeownership, which the govt was part of, was critical for the housing bubble to keep inflating. Now that banks and investors have damages, the govt is "looking into it." This newest version of the scam will probalby be "looked into" in a few years too, but not until a lot of naive consumers get hoodwinked. Consumers need to recognize that the govt does NOT protect us from scams--it is too busy collecting the lobbyist money from special interests like real estate, homebuilding, banks, lenders, and so on, to be concerned with enforcing laws or "looking into" a potential economic problem developing while there is still time to do damage control.
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    • Mon Jul 14th 12:30 PM | Rating: 0 0
      Commented on:
      You Don't Own Real Estate - It Owns You
      Excellent explanation of why your house isn't an investment! I still keep seeing ads on TV saying this is a great time to buy, and how a house is an investment, blah blah blah.
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    • Mon Jun 30th 19:16 PM | Rating: 0 0
      Commented on:
      Responsible Regulation of the Housing Market?
      As long as industry lobbyists outnumber concerned citizens, when it comes to communicating with politicians, we will not see meaningful regulation that holds wrong-doers accountable. Then you have the enormous amount of money these industries contribute to politicians, and it would take a LOT of citiznes speaking up and showing up, to counter that. The rules of how to guard the henhouse always seem to be written by the fox, because consumers/citizens are kept out, or just don't even try to take part. I believe lobbyists and politicians expect apathy from citizens, and usually aren't disappointed. True regulation of any industry would include mandatory prison time for those who break laws, and the threat of never being able to do business again if they repeatedly break rules that don't result in jail time but that do harm the economy and/or consumers. As for consumers' part, they need better education on finances, legal matters, etc, but ultimately the industry is party that's creating the schemes, pushing them, etc. The industry needs to be held accountable. That won't happen if the industry writes the rules and tracks enforcement.
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    • Sun Jun 29th 19:24 PM | Rating: 0 0
      Commented on:
      Oil: If It Looks Like a Bubble...
      The real estate bubble was due in large part to mortgage fraud as well as this country's repeated insane belief that the govt and big business will not steer consumers wrong. The FBI had reported by at least 2006 that almost all the mortgage fraud was being done BY the industry, too. And yet, despite some token investigations and arrests, and some fines, we'll do it all over again in a few years. Well most of us will. There are still people who know BS when they see it.
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    • Thu Jun 26th 15:04 PM | Rating: 0 0
      Commented on:
      Is the FHA Effectively Condoning Mortgage Fraud?
      Matt, the "gift" from a DPA isn't necessarily something they don't have to pay back. Sometimes it's rolled into the price. I don't think anyone's targeting DR Horton but other articles on this have said builders are the largest users of DPA's. The fact sellers use them too doesn't really matter. What matters is that these purchases are far more likely to go into foreclosure. Bannning DPAs will not ban true gifts from one's family members.

      FHA can't handle the loss and it may fall on tax payers. Getting buyers into homes with toxic financing isn't charitable, it's irresponsible. IMO we're pushed way too aggressively to become homeowners in this country. Renting isn't evil, and sometimes it's a better option. I have been both a renter and an owner. It's astounding how renters are vilified no matter how responsible they may be, no matter how senseless or unaffordable buying may be for them. But we treat them as if they're deadbeats for not owning, then expect them to become shining examples of financial responsibility when they buy a house they can't afford with a loan that's a ticking time bomb.
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    • Thu Jun 26th 14:56 PM | Rating: 0 0
      Commented on:
      The FHA’s Risky Zero Down Payment Loan Program
      Not only has FHA/HUD tried to ban the DPA practice but the IRS called it a scam, and though I don't remember who said it, it was called money laundering. Not all down payment non profits are a scam under IRS terms but some are. I also agree that if people have this much trouble coming up with a down payment, even the small percentage required by FHA, they should probably not buy. Getting into a house is one thing; keeping it is another. I can only imagine how much more traumatic it'd be to get one's house, finally, then lose it. This isn't doing anyone any favors, it's just helping to make sales and line the pockets of builders, sellers, and all those who stand to make a commission. For the buyer it can be financial ruin. Any time someone exploits a loophole to get around a law it should be suspect, and fixed if necessary, but it should NOT be thought of as some charitable act.
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    • Wed Jun 25th 13:32 PM | Rating: 0 0
      Commented on:
      Is the FHA Effectively Condoning Mortgage Fraud?
      HUD (FHA) did try to shut down some of these down payment programs but they were defeated: Mar. 2008, Sacramento Bee: sacbee.com/103/story/7... ("Sacramento-base... Nehemiah Corp. of America won a key federal court ruling Monday that again blocked plans by the U.S. Department of Housing and Urban Development to ban its controversial down payment assistance program. The housing agency announced in September it would ban the program within months, arguing that it triggered foreclosures and unfairly raised the price of housing for those who could least afford it. Monday's U.S. District Court ruling followed its earlier temporary ruling that HUD had failed to supply a reasoned analysis for its decision and didn't consider reasonable alternatives.")

      The IRS has called some of these programs a scam because they don't operate as non profits under IRS rules. irs.gov/newsroom/artic...

      Other sources over the past few years said down payment assistance programs are a way for sellers/builders to launder money. This is the only way they can make sales, and yesterday a builder was quoted in news about this saying exactly that; that it's the only way they can sell.

      I'm not a fan of HUD. IMO they sat by and watched builders build shoddy new houses and breach the warranty and so long as HUD didn't eat too much of the cost the agency didn't seem to care much. They didn't seem to care if 3rd party home warranty co's were more a marketing tool than actual protection for home buyers either. But when they (HUD/FHA) started having to absorb the PREDICTABLE losses as a result of mortgage fraud, they suddenly started caring about WHY these things were happening. HUD isn't going to ride to any consumers' rescue, but they may be trying to ride to their own. If there's something good that comes out of that for consumers, it's incidental, but I'll take it.
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    • Wed Jun 18th 18:20 PM | Rating: 0 0
      Commented on:
      What Happens When Builders Fail [Housing Tracker]
      At least 4 yrs ago I could see this mess was going to happen and I was not alone. I think it's time the experts started paying attention to what's really going on out there instead of thinking they're insulated from it. Housing bubble blogs, consumer sites, some economists, and many others, all pointed out the bubble was unsustainable and not a good thing. Too many people thought of houses as 'investments' that never went down in value. There was a lot of push from the real estate industry and our own government to buy a house. Toxic loans were praised as "increasing homeownership" with no thought to the FACT many of these buyers could not afford it, and/or were flippers. Mortgage fraud was going on and still is. Without the industry complying with the sham, it could not have reached these proportions, and the industry created the toxic loan products, pushed them, approved them, and sold them as 'investments.' The FBI found two yrs ago that 80% of the fraud was being done by the industry. This industry shot itself in the foot. For anyone in the know to claim this wasn't predicted, wasn't predictable, is ludicrous. Even ordinary people with no special training saw this coming.
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    • Tue Jun 17th 12:25 PM | Rating: 0 0
      Commented on:
      Subprime Lawsuits And More Exec Ousters [Housing Tracker]
      It takes a LOT to get the govt to do a criminal investigation, and even more for there to be a prosecution. So, don't be so quick to say these companies/people were just making "innocent" mistakes. These are well educated industry professionals and their claim of ignorance doesn't fly. Furthermore, if these people can claim to have just made a mistake, then why can't consumers make the same claim when they take out a bad loan? Isn't this holding consumers to a much higher standard of financial and business acumen than we hold the professionals to? If the govt is finding enough to go on to justify a criminal investigation there is big problem with what was going on. IMO the govt started their investigations years too late. Had it stepped in years ago when there already were warnings, maybe the country would not have suffered the economic damage it has. Some of these industry people need to go to jail. I'm betting they'll settle...pay fines and admit no wrong-doing, and go on doing the same things.
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