Skip to comments.With lawsuit, Barack Obama pushed banks to give subprime loans to Chicago’s African-Americans
Posted on 09/03/2012 10:30:55 AM PDT by middlegeorgian
President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.
As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.
The startling failure rate among Obamas private sector clients was discovered during The Daily Callers review of previously unpublished court information from the lawsuit that a young Obama helmed as the lead plaintiffs attorney. [RELATED: Learn about the 186 class action plaintiffs]
Since the mortgage bubble burst, some of his former clients are calling for a policy reversal.
If you see some people dont make enough money to afford the mortgage, why would you give them a loan? asked Obama client John Buchanan. There should be some type of regulation against giving people loans they cant afford.
(Excerpt) Read more at dailycaller.com ...
I believe Obama was on the team representing ACORN.
This is why some of the mess The Won (and the rest of us) is in can be directly attributed to him.
Especially if your IQ is to low to recognize it.
"Nobody told me I couldn't afford this house....It's not my fault that I didn't make but one payment".
Especially if your IQ is to low to recognize it.
"Nobody told me I couldn't afford this house....It's not my fault that I didn't make but one payment".
Oh, like credit cards ?
see my tagline..........
This was brought up before the last election. Somewhere around here I have a pdf of the original suit with Obama’s name on it.
> With lawsuit, Barack Obama pushed banks to give subprime loans to Chicagos African-Americans
THE BIG FISH THAT GOT AWAY WITH A BUNDLE
The Office of Federal Housing Enterprise Oversights report says that F/M CEO Franklin Raines---a Clinton appointee---and other Fannie Mae bigwigs, deliberately and intentionally manipulated financial reports to artificially hit earnings targets in order to trigger multi-million dollar bonuses for senior F/M executives.
Ex-Fannie CEO Franklin Raines should be behind bars for life. He is a crook of the first order. This thief Raines cooked the FM books precipitating losses of $9B (that we know of) for the single purpose of creating bonuses for himself and other F/M insiders. The SEC said Raines broke accounting rules by playing with risky derivatives.
RAINES COOKS THE F/M BOOKS---WALKS AWAY A MULTI-MILLIONAIRE After Raines was fired and exposed as a fraudster for cooking the govt books, Raines walked away w/ $90 million dollars, a $26 million parachute, PLUS..... Raines gets a MONTHLY pension of $116,300 for life. Raines had already collected $4.87 million in "special performance" shares. Raines owns options giving him $5.8 million in net profit after redemptions, plus another $8.7 million in deferred compensation for his six years at the F/M helm. There's more.
Raines keeps $5 million of paid-up life insurance. He and his spouse get free medical and dental benefits for life, worth over $1 million. NOTE: Raines earned $20 million in salary, bonuses and stock awards (that we know of) in one year.
To keep Raines happy within philanthropic circles, Fannie Mae will match Raines' charitable contributions by $10,000 a year.
After he was fired, Raines told the F/M board that he's entitled to get paychecks until June 22 giving him another $600,000, which triggers a $2,000 monthly raise in his lifetime pension. He also said he's entitled to disputed options with a gross value of about $5.6 million.
GENESIS OF THE F/M BILKING--- Clinton appointee. Fannie Mae CEO Franklin Raines' Letter to Shareholders--excerpted from 2003 Fannie Mae Annual Report
Excerpt ...Ten years ago the typical conforming mortgage required a down payment of 10-20%, and low-down payment mortgages were considered too risky. But then we helped to standardize the 3-5% down payment loan, brought it to global capital markets, and made it available to lenders and communities nationwide. Now low-down payment loans are commonplace. And we just adopted a new variance in our underwriting standards that will make the $500 down payment loan widely available as well...
In 1994, we pledged to provide $1 trillion in capital to ten million underserved families by the end of 2000. Thanks to our housing and industry partners, we met that goal early.
Then in 2000, we launched our American Dream Commitment, a pledge to provide $2 trillion in capital to 18 million underserved families by the year 2010, including $400 billion targeted specifically for minority families (later raised to $700 billion in response to President Bushs Minority Homeownership Initiative). After four of the strongest years in housing and mortgage finance history, weve already surpassed the top-line goals of this commitment. But our work is far from complete.
So in January 2004, we announced our Expanded American Dream Commitment and pledged significant new resources to tackle Americas toughest housing challenges. Our new commitment has three main goals.
First, we will expand access to homeownership for six million first-time home buyers in the next ten years, including 1.8 million minority first-time home buyers.We also will help raise the national minority homeownership rate from 49 percent to 55 percent, with the ultimate goal of closing it entirely.
Second, we will help new and long-term homeowners stay in their homes through a series of initiatives, and commit $15 billion to preserve affordable rental housing and $1.5 billion to support the revitalization of public housing communities.
Third, we will increase the supply of affordable housing and support community development activities in at least 1,000 neighborhoods across the country through our American Communities Fund, and through targeted investments like Low-Income Housing Tax Credits that help finance affordable rental housing.
It is because of initiatives like our Trillion Dollar Commitment and our American Dream Commitment that we have exceeded our HUD affordable housing goals for ten consecutive years. (End Raines excerpt.)
Fannie/Freddie are centerpieces of the criminal enterprise called the Democrat Party-where Dem cronies and collaborators loot the organization, get cushy jobs, bonuses, and the like.
Fannie Maes political machine dispensed campaign contributions, gave jobs to friends and relatives of legislators, hired armies of lobbyists (even paying lobbyists not to lobby against it), paid academics who wrote papers validating the home ownership mania, and spread charitable contributions to housing advocates across the congressional map.
Fannie Mae serves as an industrial-sized patronage factory sharing profits with political allies, spreading taxpayer funds to voting blocslike ethnic groups-and doling out jobs to left-wing academics, Washington has-beens and back-scratching buddies.
Obama insider Fannie Mae exec Jim Johnson got sweetheart loans from shady subprime Countrywide. Pols raked in six-figure salaries as F/F engaged in Enron-sstyle accounting, plunged into debt and helped usher in the subprime housing meltdown through cockamamie lending practices.
Bill Clinton appointed Franklin Raines, Daley and Rahm Emanuel just as the quasi-governmental F/M engaged in rampant book-cooking so that F/M insider could help themselves to massive bonuses. The Chi/Tribune exposed how Emanuels profitable stint was low-show w/ no work involved. Emanuel was not even assigned to committees, according to company proxy statements.
Immediately upon joining the board, Emanuel and other insiders qualified for $380,000 in stock and options plus a $20,000 annual fee, public records indicate.
W/ Wall Street Rahm Emanuel at F/M, accounting tricks were used to mislead shareholders about outsize profits F/M reaped from risky investments. The goal was to cook the books to keep fraudulent earnings on the books, to make Freddie Mac look profitable on paper-AND to fraudulently obtain humongous annual bonuses for political insiders.
Have those New Yorkers, residents of one of the highest taxed states in the union, voting for Andrew Cuomo to be their next governor allowed their ideology to trump sound reasoning? As many Americans across this great land continue to struggle with the loss of their homes, savings and retirement resources, those that were complicit in not regulating the government sponsored enterprises (GSEs) in the second market namely Fannie Mae and Freddie Mac causing the subprime loans to detonate are jockeying for power.
Sadly, we are giving those same culprits the honor of office through our votes. Note: the use of the term 'we' and 'our' is a reference to the electorate and not suggestive of the voting record of the author.
In 1993 President Bill Clinton appointed Andrew Cuomo to the Department of Housing and Urban Development (HUD) as Assistant Secretary.In 1997 Cuomo took over as HUD chief replacing Clinton appointee Henry Cisneros. During Cisneros tenure he championed Clinton's goal of social engineering within the housing market forcing lenders to issue loans to those that would not financially qualify for the lending.
Cisneros left office in a scandal involving lying to the FBI over payouts to a mistress, Cisneros subsequently pleaded guilty to a misdemeanor and though never sent to prison received a pardon from Bill Clinton in 2001.
Andrew Cuomo took the HUD reins and not only furthered Cisneros and Clinton's policies but greatly expanded them.
Henry Cisneros moved the GSEs toward a requirement that 42 percent of their mortgages serve low and moderate income families. Andrew Cuomo raised that number to 50 percent and dramatically hiked GSE mandates to buy mortgages for the "very-low-income."
These bad loans were purchased and sold throughout the secondary market and the pyramid grew and the bottom collapsed resulting in the subprime crisis we are still reeling from today.
In 2008, the Village Voice published a compelling report detailing Andrew Cuomo's policy decisions "that gave birth to the country's current crisis."
The report touched on how Cuomo's 187-page rules "opened the door to abuse." The rules explicitly rejected the idea of imposing any new reporting requirements on the GSEs. In other words, HUD wanted Fannie and Freddie to buy risky loans, but the department didn't want to hear just how risky they were.
Many New York voters are failing to see the actual harm to the minority community directly caused by Cuomo's policies...matter.
Cuomo's top HUD aide said, "We believe that there are a lot of loans to black Americans that could be safely purchased by Fannie Mae and Freddie Mac if these companies were more flexible."
Andrew Cuomo doubled down and had this to say about his HUD standards, "GSE presence in the subprime market could be of significant benefit to lower-income families, minorities, and families living in underserved areas."
How's that working out for the minority community, where foreclosures and unemployment rates have hit the hardest as a result of such failed policies and blatant social engineering?
SOURCE http://voices.yahoo.com/cuomos-social-engineering-as-hud-chief-contributed- 7077218.html
Review of previously unpublished court information from the lawsuit that a young Obama helmed as the lead plaintiffs attorney.
The Daily Caller found the info,wonder what the MSM was doing all this time?,cover up?.
"Remember in those years, in 2001 and 2003, Congress passed two of the most expensive tax cuts for the wealthy in history... And what did it get us? The slowest job growth in half a century. Massive deficits... Remember that in those same years, thanks to some of the same folks who are now running Congress, we had weak regulation, we had little oversight, and what did it get us? ...mortgage lenders that tricked families into buying homes they couldn't afford, a financial sector where irresponsibility and lack of basic oversight nearly destroyed our entire economy..." said Obama.
Billionaire business mogul Penny Pritzker is a member of one of Americas richest families and was the Finance Chair for the presidential campaign of Barack Obama. It was Pritzker that led the prolific, and illegal, fundraising that helped power Barack Obamas presidential campaign. She was the chair of Chicago-based Superior Banks board for five years.
Pritzker was into subprime lending before it became all the rage starting in around 2000. Prtizker's chairmanship was to concentrate on sub prime lending, principally on home mortgages, but for a while in subprime auto lending, too, after the Pritzkers' bank acquired its wholesale mortgage organization division, Alliance Funding, in December 1992.
Superior Bank went belly up in 2001 with over $1 billion in insured and uninsured deposits; 1,406 depositors lost much of their life savings. This collapse came amid harsh criticism of how Superiors owners promoted sub-prime home mortgages.
In addition, the FED from 2007-2010 loaned banks $16Trillion for bailouts. Citi got $2.5Trillion...here is the Link:
While Citi paid a paltry fine, it received a massive “bailout” that it will never pay back, like the others.
Our 5 biggest banks have $227T in credit derivative liabilities according the office of the Comptroller of the US. Their collective liquidation value is about $7Trillion. Since their obligations consist of a lot of highly leveraged long term debt (up to 30 years, with 5 year short term financing), there are 5 more bailout requiring refinancing rollover periods of 5 years to go before maturity of the derivative obligations.
The US has not gotten thru the first 5 year “bailout” period measuring from the crash of 2008....there is still the rest of this year all the way to the end of 2013 to go. No debt principal has been paid off at all, just refinancing interest obligations have been met. Europe and the US have not squeaked by at all. There is much more to come, and $16T is mere pittance of what is ultimately due over the next 26 years measuring from 2008, just for bank bailouts, forget US debt and unfunded mandates on top of it all.
There WERE regulations against giving loans to people who couldn’t afford them. More precisely, there were no regulations FORCING banks TO give loans to people who couldn’t afford them. Then your liberal plantation masters bullied the banks into believing that actually checking credit scores was raciss.
that’s flippin breath-taking. we all should be spittin mad.
Well there is more. The legal case won by Obama began a vast world wide debacle, that will go on for decades.
Astonishingly, Obama lied to get his law license in IL and was forced to relinquish his license in 2008. He practiced law fraudulently the entire time he had his “license”.
BOTH OBAMAS SURRENDERED law licenses in ‘93 & ‘08
Wed, 05/09/2012 - 1:53pm
Did you wonder how President Obama could make un-Constitutional statements and challenge the Supreme Court when he was a “Constitutional Law Professor”?...............
This can be easily veriified at https://www.iardc.org
Stands for Illinois Attorney Registration And Disciplinary Committee. It’s the official arm of lawyer discipline in Illinois; and they are very strict and mean as hell.
1. President Barack Obama, former editor of the Harvard Law Review, is no longer a “lawyer”. He surrendered his license back in 2008 in order to escape charges he lied on his bar application.
A “Voluntary Surrender” is not something where you decide “Gee, a license is not really something I need anymore, is it?” and forget to renew your license. No, a “Voluntary Surrender” is something you do when you’ve been accused of something, and you ‘voluntarily surrender” your license five seconds before the state suspends you.
2 Michelle Obama “voluntarily surrendered” her law license in 1993. after a Federal Judge gave her the choice between surrendering her license or STAND TRIAL FOR insurance FRAUD.
3. So, we have the first black President and First “Lady” - who don’t actually have licenses to practice law. Facts.
4. A senior lecturer is one thing, a fully ranked law professor is another. Barack Obama was NOT a Constitutional Law Professor at the University of Chicago.
5. The University of Chicago released a statement in March 2008 saying Sen. Barack Obama (D-Ill.) “served as a professor” in the law school-but that is a title. Obama, who taught courses there part-time, never held, a spokesman for the school confirmed in 2008.
6. “He did not hold the title of Professor of Law,” said Marsha Ferziger Nagorsky, an Assistant Dean for Communications and Lecturer in Law at the University of Chicago School of Law.
Source: http://blogs.suntimes.com/sweet/2008/03/sweet_obama_did_hold_the_title.html ;
7. The former Constitutional Senior Lecturer (Obama) cited the U.S. Constitution the other night during his State of the Union Address. Unfortunately, the quote he cited was from the Declaration of Independence ... not the Constitution.
8. The B-Cast posted the video: http://www.breitbart.tv/did-obama-confuse-the-constitution-with-the-declaration-of-independence/
9. Free Republic: In the State of the Union Address, President Obama said: “We find unity in our incredible diversity, drawing on the promise enshrined in our Constitution: the notion that we are all created equal.
10. Um, wrong citing, wrong founding document there Champ, I mean Mr. President. By the way, the promises are not a notion, our founders named them unalienable rights. The document is our Declaration of Independence and it reads: We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.
11. And this is the same guy who lectured the Supreme Court moments later in the same speech?
Where’s Gorelick in all of this?
The new program, known as the Hardest Hit Housing Market fund, is part of a $7.6 billion federal effort to help underwater homeowners in 18 states. California received $2 billion. But when banks and lenders who service loans refused to write down even a small portion of the negative equity loans, California decided to use the taxpayer money to pay 100 percent of the mortgage reduction. (Excerpt) Read more at foxnews.com ...
The Congressional Hispanic Institute, Inc, is an entity organized by Cong Joe Baca (D-Cali) in his capacity as head of the Congressional Hispanic Caucus.
Cong Baca created "HOGAR" (Spanish for home) in 2003 to work with the mortgage industry, lender and banks and latino community groups to increase mortgage lending to what savvy observers considered to be unqualified Latinos.
"HOGAR" colluded w/ Cong Baca in what was to become a massive bilking of taxpayers. Cong Baca calculatedly hyped the fact that the national Latino homeownership rate was 47%, compared with 68% for the overall population.
HOGAR was coached to call the figure "alarming," and to say "a concerted effort was required to ensure that by the end of the decade Latinos will share equally in the American Dream of home ownership."
HOGAR and Cong Baca conned the public, failing to note that most of the "dreamers" were illegals, citizens of Third World countries who had violated US borders.
Predictably, HOGAR colluded w/ co-conspirators which included:
(a) shaky mortgage companies that ran into big trouble;
(b) Fannie Mae and Freddie Mac, both now under federal control after billions in taxpayer bailouts;
(c) Countrywide Financial Corp., sold to Bank of America Corp;
(d) Washington Mutual Inc., taken over by the US government and sold to J.P. Morgan Chase & Co.; and,
(e) New Century Financial Corp. and Ameriquest Mortgage Corp, both now defunct, killed by defaulted subprime Latino mortgages.
HOGAR's ties to the subprime mortgage industry were substantial. Bribery and self-dealing were rampant:
<><> Companies that donated $150,000 to Cong Baca got the right to have their own research fellow who would conduct fraudulent studies, which were cunningly used by industry lobbyists to pump lending.
<><> Bribery and extortion in the form of $100,000 annual donations to Cong Baca, for which HOGAR provided phony news releases from Cong Baca's Hispanic Caucus promoting a lender's commercial products to the Latino market,
<><> The most shocking example of bribery well-substantitated by Hogar's literature..... HOGAR announced it worked with Freddie Mac on a self-serving two-year examination of Latino homeownership in 63 congressional districts.
The bogus "study" found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting at the urging of Cong Baca's collusive coterie.
<><> HOGAR then conned lenders into even more lenient down-payment and underwriting standards.
<><> As the subprime debacle unfolded, HOGAR declined repeated requests for comment despite the economic havoc their activities precipitated.
The mortgage schemes demonstrated the criminal activities of border violators with multiple identities---perhaps violent, terrorist-connected foreigners---colluding and conspiring to defraud private companies and public entities. And mortgage racketeering enterprises which employed sub rosa finance and business practices to carry out deceptions and frauds.
The alleged ring of swindlers---a Congresman, individuals with multiple identities, banks, insurance companies, mortgage nrokers--might be charged with cheating the US govt, taxpayers and bank share holders out of hundreds of millions of dollars via an elaborate web of mortgage and bank frauds. The mortgage Dreamers used multiple phony identities, fraudulent Social Security numbers, purchased from identity forgers in order to obtain govt-subsidized benefits.
L/E will find that individuals with multiple identities obtained fraudulent mortgages then flipped the houses at ever- higher prices to family member who then absconded to foreign countries, sticking banks (and taxpayers) with hundreds of millions in fraudulent mortgages.
BACKGROUND A Wall Street Journal report related that, according to the Federal Financial Institutions Examination Council examination of the borrowing spree, investigations uncovered financial schemes by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, all colluding in fraduent schemes to increase homeownership among Latinos with forged documents which enabled massive fraud.
This was not simply the mortgage market at work. It was fueled by avarice, greed, and Congressional enabling fraudulent practices. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained subprime mortgages for prime properties---soaring to 169%. (Research provided by Wall Street Journal. Some material excerpted from the NY Times).
NOTE WELL A popular scam perpetrated by illegals: falsifying documents to get subprime mtges---then defaulting and selling the homes to family members who flip the price higher and higher to get mtge money---then abscond to Mexico---leaving banks and taxpayers holding the bag.
Emanuel frames Romney as a backward-looking candidate
BY LYNN SWEET, FRAN SPIELMAN
AND DAVE MCKINNEY
Last Modified: Sep 3, 2012 12:49PM
CHARLOTTE, N.C. Mayor Rahm Emanuel, President Barack Obamas former chief of staff, framed Mitt Romney on Sunday as a backward-looking candidate, blistering his acceptance speech as laying out the policies of Ground Hog Day.
Emanuel discussed the upcoming Democratic National Convention with David Gregory on NBCs Meet the Press, where he was introduced as an architect of Obamas first-term policies.
If people want to know about the first term? Very simple. General Motors is alive and well. And Osama bin Laden is not. And thats what got done, Emanuel said.
This has come up before. I have not seen evidence to back up your claim.
You won’t find a more thorough investigation about Chicago corruption.....
Blagojevich prosecution delays protect Obama,
Blagojevich arrest delayed after 2008 election,
Patrick Fitzgerald USDOJ had key witness and crimes
The Blagojevich arrest was delayed
Was Barack Obama the original plan for the presidency by the DNC and Chicago Machine? Rod Blagojevich envisioned himself in that office. But in a high
profile position as Governor of Illinois, with brashness by nature and a less stealthy approach to pay to play politics than Obama, the feds began investigating him in 2003 and reports soon hit the Chicago media of corruption in his administration.
So, why would the prosecution of Blagojevich be delayed despite the fact that he profoundly affected the citizens and state of IL?
Obama had a clear role in the rigging of the health planning board.
Obama played a role in cronyism affecting the TRS, Teacher Retirement System.
Obama had long time and regular associations with Tony Rezko and was as Blagojevich stated in a wiretap more tonyd up than me.
A blagojevich trial before the 2008 elections would have stopped Obama. Tony Rezko would not talk about Obama, Blagojevich did and would.
READ MUCH MORE and watch for Part 2........
“...said O’Bambi” cannot follow any true statement. Not possible.