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Accusations of Agency Error in Disaster Loans (Katrina/Rita)
New York Times ^
| February 27, 2007
| RON NIXON and LESLIE EATON
Posted on 02/27/2007 5:50:12 PM PST by PAR35
Last September, the Small Business Administration, which provides most long-term rebuilding aid to disaster victims, accelerated its lending to homeowners and businesses in the Gulf Coast, responding to criticism that it had been slow to respond to Hurricanes Katrina and Rita of 2005.
But now federal investigators are looking into accusations that in speeding up its work, the agency made thousands of loans without following its own rules to avoid fraud. Current and former employees of the agency have told investigators that agency workers failed to secure proper proof that borrowers owned the houses they were supposed to rebuild or had the required insurance.
Caroline Pankove, who worked as a lawyer for the disaster-loan program at the agency from June through December of last year, complained to the agencys managers and its inspector general that employees were improperly pressured to approve loans quickly.
Loan policies were applied inconsistently, Ms. Pankove said, and disaster victims paperwork was often misplaced or mailed out with errors.
(Excerpt) Read more at nytimes.com ...
TOPICS: Crime/Corruption; Extended News; US: Louisiana; US: Mississippi
KEYWORDS: katrina; rita; sba
Your tax dollars at work.
posted on 02/27/2007 5:50:15 PM PST
"But now federal investigators are looking into accusations that in speeding up its work, the agency made thousands of loans without following its own rules to avoid fraud"
DUH.... and if any of the people who were clamoring for instant action expected anything else, they are even more stupid than they seemed...... you can't get a gov't bureaucracy to throw around billions of dollars in a hurry and not expect major fraud and other problems. Just look at how bad gov't bureaucracies can be when they have plenty of time to institute proper procedures.
posted on 02/27/2007 5:54:57 PM PST
(Chamberlain Democrats embraced by terrorists and America-haters worldwide!!)
So, basically, it's still Bush's Fault that people in New Orleans are committing Fraud ?
posted on 02/27/2007 5:56:07 PM PST
Rita? I'm surprised anyone remembers Rita. She's the one that got us. No house damage but lots of fallen trees and a week without electricity...and it was boiling hot weather. We were very lucky and we thanked God profusely.
posted on 02/27/2007 6:21:30 PM PST
by processing please hold
(Duncan Hunter '08) (ROP and Open Borders-a terrorist marriage and hell's coming with them)
This pox will never go away.
posted on 02/27/2007 6:39:43 PM PST
(FloriDUH - proud inventors of pregnant/hanging chads and judicide!!)
It was mainly the democrat congressmen and governor that were pushing for this course of action.
posted on 02/27/2007 6:58:25 PM PST
I did look, and the same thing happened after 9/11.
posted on 02/27/2007 6:59:16 PM PST
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