A federal grand jury charged three former Portland-area mortgage brokers with fraud on Wednesday.
Joel D. Surprenant, Michael Duc Han and Benjamin Lucian Lucescu all were charged with one count of obtaining mortgage loans through materially false and fraudulent pretenses.Read more about mortgage fraud prosecutions...
We're only partly responsible
The biggest part of the problem is the rampant abuse, usury, skirting of laws, fraud and plain incompetence by lenders. The banks and mortgage companies are guilty as sin of abusing consumers, and Bush/Cheney let it happen while their rich buddies gleefully made even more millions.
Certainly many homeowners are in this mess of a mortgage crisis partly because of poor decisions, lack of forethought, and other problems. I've made my own mistakes, too. And I support making reasonable profits. But the profiteering that's led to the downfall of the American economy is way beyond reasonable.
Income redistribution already happened: Your money went to the rich
In other words, the "income redistribution" by Obama that Limbaugh, Hannity and other (already rich) conservatives fear has ALREADY HAPPENED--in their favor! They simply--and greedily--don't want to give back what they've taken from you.
No, they have not literally stolen it--they just took it because you individually have little or no power or representation to earn what you deserve, to protect your rights, and to keep large companies with vast resources from charging you too much. They essentially nudged you aside, little by little, in every transaction, with every paper you've ever signed, till now you're at their mercy.
Now less than 1% of the US population owns an estimated 40-50% of the wealth in this country! That's happening while the poor became even poorer, and the middle class saw their incomes eroding since the 1970s. CEOs on average earned 42 times that of the average worker in the 70s. Now CEOs make about 411 times the average worker's salary!
Their powerful lawyers made sure that company execs like Angelo Mozilo (ex-CEO - Countrywide Bank) and Alan Mulally (CEO - Ford) and Rick Wagoner (CEO - GM) made their millions, riding in limousines and jets, while you suffer in joblessness, with a home nearing foreclosure. Dick Dauch of American Axle sucked in in $18.67 million in overall compensation in 2008, yet the company laid off many workers and slashed workers' wages by $10/hour!
My own family is a victim of mortgage fraud, RESPA and TILA violations, abusive practices by lenders and/or their representatives and contractors--including title specialists--and who knows what else. I am also only partially employed and seeking work.
I think these and other CEOs bear a large responsibility for this economic and housing crisis!
Even dogs can tell when a situation is unfair. A recent study reported on NPR showed that dogs who were treated differently in the amount of food they were given showed anger, depression and sadness toward their feeders. Awareness of unfairness is an evolutionary trait that ensures survival of the species. Evidently, we've been electing and supporting people--in government and business--who are fundamentally greedy and unfair--until Obama, that is. We hope.
Contact your county legal aid office or state attorney general for legal problems
We've had the devil of a time getting representation. We pray that our county legal aid office will take our case. Lawyers tell us that we would have to pay $10,000 to start a case! Who can afford that, if you're behind on your mortgage payments! What ordinary citizen can afford thousands in legal fees?
You too should review your loan paperwork. Call your FHA or HUD office to get help from a qualified agency or county legal aid. And you should not have to pay for this help!
Plenty of scam artists looking for your cash
Beware of anyone or any company asking for money up front. No legitimate housing counselor is allowed to demand up front payment. Under some circumstances, lawyers may charge up front--but be careful!
FHA and HUD approved counseling agencies will not ask for any monies up front, and should disclose any fees for additional counseling after the first consultation.
Below is a list of resource. This will get you started. But...
Start NOW! HUD is slow to help
Don't be surprised if these agencies don't help you! We had to talk to our HUD field office director, then an FHA director in Oklahoma, to discover that our bank's fraudulent practices had put our loan in jeopardy. It is no longer FHA insured because of their fraud and mistakes.
After 3-4 months of exhaustive research, we finally were put in touch with an FHA approved trainer who trains HUD approved housing counseling agencies. A housing director at the Inner City Christian Federation (ICCF) in Grand Rapids, MI, she was the first person to completely understand every wrinkle of our situation. What a relief!
Push for change and consumer protections
Most of the housing counselors you may encounter are not yet trained and ready for the avalanche of mortgage fraud and abuse cases. Keep pushing! Demand that your senators and representatives push for greater consumer protections, fines and a moratoriam--or stoppage--of foreclosures! Call for a mortgage moratorium to stop foreclosures in your state, too!
You can contact your state representatives and senators for help too. States can enact laws to protect its citizens when the federal government has not.
Ask your local church or nonprofit organization to help you fight lenders, predatory and weak laws and help protect you. Religious organizations have a spiritual mandate to help members of their congregations. If they won't stand up for you, leave them, boycott them, protest and demand help, and keep pushing for it!
"I am my brother's keeper" is a Biblical maxim. Also remember "...neither shalt thou stand idly by the blood of thy neighbour..." from Leviticus, 19:16.
The government works for you, but sadly, they don't do enough unless you shout for it. Especially under Bush-Cheney, fraud, waste, corporate abuse of citizens, overcharging and the foxes guarding the henhouse was encouraged--and we're paying for it now.
Thank God for Obama's administration. It seems to be the most responsive to consumers and ordinary citizens ever. Keep demanding that responsiveness!
Resources
HUD - who to contact
HUD on predatory lending
White House blog - on mortgage foreclosures and crisis
HUD - Guide to Avoiding Foreclosure
Michigan only - Inner City Christian Federation (ICCF) in Grand Rapids, MI (616) 336-9333
A bill to stop mortgage transactions which operate to promote fraud, risk, abuse, and under-development, and for other purposes.
STOP FRAUD Act
110th Congress 2007-2008
-- Stopping Mortgage Transactions which Operate to Promote Fraud, Risk, Abuse, and Underdevelopment Act
This bill never became law. This bill was proposed in a previous session of Congress. Sessions of Congress last two years, and at the end of each session all proposed bills and resolutions that haven't passed are cleared from the books. Members often reintroduce bills that did not come up for debate under a new number in the next session.
Mr. President, for the love of the people and the country- pass this bill NOW.
Congratulations to President elect Obama and Vice President Elect Biden.
Before I begin, I would like to start with and end with a quote. Opening Quote:
“If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.” - Thomas Jefferson
Yes there is much to do. First of all, I would hope that Congress stops calling legislation a product and quits timing policy talks too much, it's as if creating good public policy is a race or production line. Based on the last 16 years I think it has proven to create more problems than substantial public policy befitting of the United States of America. "We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
Hopefully we will get over the socially engineered 'nuclear phobia' that has been quaintly orchestrated in this society and get to building new design nuclear reactors that burn SPENT FUEL from previous reactors. There are a whole host of other phobias we need to overcome, at least in my view. Now that Government has proven they believe in single payer systems such as the 'bail out' or 'investment' of Wallstreet unregulated gambling, there shouldn't be any hesitation in fixing health care. Although I wonder if anyone has the groin, for example to remove Social Security out of the General Fund as an example. It's a New Era? we shall see. Do I believe, NO, I prefer the use of knowledge since we operate in a finite system that is unbounded. I save my beliefs for the discovery of new knowledge and principles that enable humanity to advance, just as the Great Rabbi Yeheshua (Jesus) did by revealing the principles that create the physical domain from the level of the spiritual human; that being said I don't believe its a New Era, I know its one. Big Difference. Americans have the opportunity to tell the social engineers and financial service industries where to go. . . It is time to re-establish our priorities and the middle class---hopefully help to those like me in the poverty class which was little spoken of in the election. This new era to me is the removal of the cancer of Sophistry which has plagued this nation and helped it to lose its Soul to the religion of consumerism (Information Society versus a Knowledge Society). Maybe we can actually get back to the genuine elements of the American System of Economy (Hamiltonian) instead relying on the animalistic propaganda rant of 'British version" as supplied by Adam Smith
I have told the people in my ministry this- -It is not a time to pray to God (What ever god concept or ubiquitous invisible Intelligence/Principles you might ascribe to) but to seriously dig to find out what the Grand Architect of the Universe put inside us to use---everything we need was given to us, but it must be mined just like miners mine for coal, processed from its raw state and woven into the fabric of our daily life in our character and personality; knowledge is the great treasure – money, though a necessary ‘evil’ isn’t even remotely secondary, spiritually speaking, for without knowledge you are unable to create anything including money or distinguish information. Fun is over, the younger generations are heading into a period where Karma, as for all age groups, will exact its toll of disregarding History for the sake of short term gratification and our political leaders drunken disregard in preventing the financial molestation of the Citizens and future of this Great Nation. Sold out by our own leaders and Big American Business People in the Unregulated Financial Investment firms on Wallstreet. It's not new, most of the best and worst of human behavior is in the bible, being able to smell it of course is the key. .
Some articles for your consideration:
Struggling Americans Forced To Work Extra-Dimensional 4th ShiftNOVEMBER 3, 2008 |http://www.theonion.com/content/news/struggling_americans_forced_to?utm_source=slate_rss_1Fourth shift workers commute perpendicularlyacross the space-time continuum to pay off mounting credit card debt.
THE FBI FRAUD REPORT on MORTGAGE and OTHER AREAS:
“The FBI investigates mortgage fraud in two distinct areas: fraud for profit and fraud for housing. Fraud for profit is sometimes referred to as “Industry Insider Fraud,” and the motive is to revolve equity, falsely inflate the value of the property, or issue loans based on fictitious properties. Based on existing investigations and mortgage fraud reporting, 80 percent of all reported fraud losses involve collaboration or collusion by industry insiders.” - Financial Crimes Report to the Public Fiscal year 2007http://www.fbi.gov/publications/financial/fcs_report2007/financial_crime_2007.htm
The Senate Agriculture Committee with Senator Tom Harkin:
held a hearing on the role of financial derivatives in the financial markets turmoil. The Committee examined credit default swaps and unregulated contracts used to manage financial risk. Tuesday, October 14, 2008 : Washington, DC : 3 hr. 47 min.click on the RED circle with the white 'F' in it (CSPAN archives)
http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=281763-1Dr. William Black from the University of Missouri-Kansas City plus more
60 minutes :
Credit Default Swapssegment explaining government supported the Casino Capitalism (financial services capitalism) granting immunity to Wallstreet
from the "COMMODITY FUTURES MODERNIZATION ACT OF 2000"
http://www.youtube.com/watch?v=bHXuUx0vT0Q
Wishing everyone the best of Life, Health and Safety
Rev. David Strickler
Closing Quote:
“These economic royalists complain that we seek to overthrow the institutions of America. What they really complain of is that we seek to take away their power. Our allegiance to American institutions requires the overthrow of this kind of power. In vain they seek to hide behind the flag and the Constitution. In their blindness they forget what the flag and the Constitution stand for. Now, as always, they stand for democracy, not tyranny; for freedom, not subjection; and against a dictatorship by mob rule and the over-privileged alike.” ~ Franklin D. Roosevelt, speech on June 27, 1936 at the 1936 Democratic National Convention in Philadelphia, PA.
This content was dictated by Rev. David Strickler and posted by Christine Ford, Editor, Spiritual Climate Newsletter as per Rev. Strickler's wishes.
www.youtube.com/couples22
“Why bother? You’ll never save them all”.
By Michael S. Richardsonwww.preventmortgagefraud.com
Author of “An American Epidemic, Mortgage Fraud… a Serious Business
As one can clearly see from this tidal wave of recent headlines (which themselves are revealing the mortgage fraud iceberg), mortgage fraud has been and is “persistent and growing.” As the current mortgage meltdown continues you will read more about how large of a role mortgage fraud has played in the foreclosures and that a large percentage of the homeowners do not really know how they were approved for the mortgage. While mortgage fraud obviously has been too big to curtail are we now going to begin preventing mortgage fraud. In this case, prevention begins not with millions, not with thousands, not with hundreds, but with one: one loan officer, one loan office, one mortgage company, one real estate agent, one credit reporting agency, one underwriter at a time.
Every part of the mortgage lending process presents another window of opportunity to unscrupulous loan originators, who by the very nature of their job description come in contact with builders, real estate agents, borrowers, processors, underwriters, appraisers, lender account reps, and title closers. Each one of these positions or areas of loan processing are needed to get a mortgage leaves an opportunity for fraud! As an industry it is now time to strengthen our pre-funding controls by re-training loan officers, processors, underwriters, the closing departments and a host of collateral employees who likewise have their fingers on the process of better detecting fraudulent loan applications and real estate transactions.
Most authorities will agree that the most effective method in preventing mortgage fraud is consistent regulation and licensing enforced by the appropriate authorities, but even if your state does not have strong regulations or laws or is in the process of implementing strong regulations, what really is needed is for the mortgage industry to rely enforcing a strong in-house, company quality control plan that includes both pre- and post-closing loans.
After all, it is your business or income whether you are an owner, loan officer processor, real estate agent, title companies or being paid to be involved in the transaction. Without proper enforcement, regulations are of almost no consequence. The latest industry statistics of “suspicious activities” filed within the mortgage industry is enormous, and of those only about two percent or less– that’s no typo, 2 % – were or are ever investigated. No wonder the fraudsters don’t fear retribution!However, the tide could be slowly changing…
There’s a story often told about a solitary man out taking a stroll on the beach. Eventually he comes upon a portion of the beach where millions of dying starfish have been washed upon the shore by an unusually high tide. The man is shocked by the sheer number of starfish and how many will perish because of Mother Nature’s folly.
As he continues walking he sees more and more starfish stretching as far as the eye can see. Step by step he becomes more convinced of the futility of it all. He begins to question his own mortality, and wonders if he and his vain attempts to find meaning in life aren’t a lot like all those starfish.
Finally he comes across a little boy who, much like himself, is confronted with the massive proportions of those millions of dying starfish. The two stand side by side, silently contemplating the holocaust. Finally, the boy reaches down to pick up a single starfish, flinging it out to sea.
The man snorts and says, “Why bother? You’ll never save them all. How can you possibly make a difference?” The boy shrugs, reaches down to grab up another starfish and, before flinging it out to sea says, “I can make a difference to this starfish.” Struck by the significance – not to mention the simplicity – of this statement, the man too reaches down to begin flinging starfish back into the sea, one by one.
Let our industry be like these two brave souls; not intimidated by the futility of facing fraud in our industry, but hearty enough to begin making a change in our own backyard, fighting fraudsters – one by one.
There’s no doubt that homeowners are paying the price of real estate fraud emotionally and monetarily as we have been reading non-stop about. The other price being paid is by the 10’s of thousands of honest mortgage professionals that have lost there job and the only way such costs can be avoided is to eliminate, or greatly reduce, the problem. That means you are going to have to start acting on mortgage at a different level, and acting about it soon. I can assure you the fraudsters are planning the next move and it is most likely FHA insured loans.
The ethical honest “Real Estate Industry Professionals” needs to step up today and assist the “American Homeowners” that are being victimized and assist our governmental agencies from these fraudsters, if you do not know how, educate yourself, and then educate the homeowners!
