rssHow Fraud Fueled the Mortgage Crisis
Thursday, May 01, 2008 at 11:25 am
- 38 Comments
The debate over what caused the mortgage mess and how best to fix it is now taking a sharp turn, as new problems surrounding liar’s loans and payment-option mortgages reveal the pervasive fraud, lying and deceit that permeated the market at its height.
As loans made to borrowers with decent credit begin to fail at a surprisingly rapid rate, it’s becoming clear that widespread fraud helped support the entire mortgage system — from borrowers who lied on their loans, to brokers who encouraged it, to lenders who misled some low income borrowers, to the many lenders, investors and ratings agencies that conveniently and deliberately looked the other way as profits rolled in.
Illustration by: Matt Mahurin
Despite its widespread role, fraud hasn’t yet been at the forefront of proposed rescue plans, which center on refinancing people out of loans now resetting to higher rates. That may begin to change as the mortgage market continues a meltdown that seems to have no end. As fraud becomes a focus, the question of who did most of the lying and cheating will be crucial in deciding who deserves help in any housing rescue plan.
And the search for causes of the crisis may challenge long-held but erroneous beliefs about what homeowners did and why. Many people think borrowers got in trouble by buying bigger houses than they could afford, but the numbers show the majority were refinancing their homes.
Fraud problems drew headlines this week, as Countrywide Financial Corp., announced an $893 million first quarter loss and a 36 percent delinquency rate on subprime loans. The lender that once led the subprime market is facing a federal probe involving allegations that sales executives purposely allowed for inflated income figures on many mortgage applications, The Wall Street Journal said Wednesday.
At the same time, delinquency rates are climbing for payment-option mortgages, or adjustable rate loans that allowed the borrower to choose the size of the monthly payment, the Journal said. Countrywide and other lenders are being hit by state investigations and lawsuits from borrowers who contend they were misled into taking out the complicated loans, which sometimes result in monthly payments going up even as house prices decline. Lenders deny responsibility, saying borrowers knew what they were getting into.
The meltdown of these mortgages is prompting a new spotlight on the extensive role that fraud played in loans gone bad, and who was responsible for it. Lending that required little proof clearly opened the door to widespread cheating, by borrowers who inflated their incomes, or by brokers who did it for them, with or without their knowledge.
A landmark study by the Mortgage Asset Research Institute concluded that almost 60 percent of stated income loans it examined were exaggerated by at least 50 percent. “They earned their name,” MARI’s Merle Sharick said of liar’s loans.
Fraud concerns escalated recently when a task force of states attorneys general and the Conference of State Banking Supervisors found widespread mortgage fraud at the end of the housing boom. Their report said some 28.5 percent of subprime loans that don’t face even their first reset to higher rates until next year are already delinquent. In addition, some 70 percent of subprime borrowers seriously delinquent on their loans aren’t involved in any effort with lenders to modify the terms to prevent foreclosures. The report urged servicers to work harder on modifications and loan workouts.
At the influential housingwire site, publisher Paul Jackson pointed out that only massive fraud could be responsible for loans going sour so quickly, and that it’s unfair to blame servicers for loan workout problems. Borrowers who may have cheated or lied to get a mortgage aren’t going to be eager to call up their lender. “What incentive to they have?” Jackson asked. “Offering strong and credible proof that they were party to mortgage fraud?”
He represents a growing belief that mortgage fraud is a major problem yet to be recognized in the housing mess, and one that has been overshadowed by the attention to adjustable rate mortgages that reset to higher rates. Until the scope of the fraud is understood, adequately addressing the market’s troubles isn’t possible, according to Jackson:
It’s time borrowers, consumer groups and erstwhile working groups stop floating a revisionist history of the “hapless borrower” — you know, the one where greedy, mean lenders duped those innocent and pure borrowers? — as a substitute for what’s really going on in the real world.
Others familiar with the mortgage industry contend that pervasive fraud was, indeed, a problem – on the lender’s side. At the peak of the housing boom, they say, the nation’s mortgage system was set up to promote and encourage outright fraud in order to close a loan – and everyone, from brokers to loan officers to Wall Street, looked the other way. Borrowers also were put into products like payment-option arms that were unsuitable — and lenders knew it. “They were pushed like Vioxx, with very little regard for their dangers,” said Kathleen Keest, senior policy counsel with the Center for Responsible Lending, a research group that investigates predatory lending.
Patrick Madigan, an Iowa assistant attorney general who has investigated mortgage fraud, said it makes no sense to conclude that lenders are somehow victims. Madigan’s office engineered a settlement two years ago with Ameriquest over its subprime practices, including high-pressure “boiler room” sales tactics. Regardless, Madigan said, there is a movement to “blame the borrower.”
“There’s a perception out there that there’s this hapless lender who got duped by middle class and lower income subprime borrowers,” Madigan said. “It’s ridiculous. Our investigations have shown that most of the fraud happens at the suggestion and direction of the loan originator, who had significant financial incentives to close the loan, no matter what misconduct was required.”
The question of fraud and responsibility matters because it can tilt the direction of any plans to rescue the housing market from its freefall. So far, the largest government effort has been FHA Secure, which is supposed to help subprime borrowers facing higher rate resets get refinanced into new mortgages. But with loans going bad even prior to their rates going up, the program doesn’t address fraud as the true cause of failing loans, noted Robert Simpson, president of Investors Mortgage Asset Recovery Co., in Irvine, Calif. “These problems are not related to reset issues,” he said. “That’s a ruse.”
As the debate over bailout plans continues on Capitol Hill, borrowers perceived as victims of predatory lending might be more likely to be seen as sympathetic and in need of help than borrowers who took part in lying to buy an expensive house. Lenders under pressure to modify more mortgage loans might get themselves off the hook a bit if borrowers take the hit for lying on liar’s loans. If lenders are looked at as the perpetrators of fraud, there might be support for ideas like the one just proposed by Federal Deposit Insurance Corp Chairwoman Sheila Bair, who wants the Treasury Department to make loans directly to troubled borrowers.
If the whole mortgage market is viewed as riddled with fraud on both ends, some, like Simpson, argue that nothing should be done except letting those house prices that have been artificially propped up because of inflated incomes begin to fall — and enduring the economic pain that will result.
Even if fraud has become a larger part of the mortgage meltdown picture than first realized, it’s not simple to figure out who should take most of the blame. Many people point the finger at investors playing the market or homeowners who bought more expensive houses than they could afford — the “irresponsible” borrowers cited by both President George W. Bush and probable Republican nominee Sen. John McCain (R-Ariz.).
But the numbers don’t exactly tell that story – which proves that much in this crisis taken as fact is poorly understood. That also makes a difference, when it comes to deciding whether it makes sense to bail out the market. At the request of The Washington Independent, the trade industry publication Inside Mortgage Finance in Bethesda, Md., ran some numbers and analyzed the resulting data.
Did most people simply buy big homes they couldn’t afford? In 2007, 62 percent of all securitized Alt-A loans involved refinances, and 38 percent were for home purchases. In the subprime market, 64 percent were refinances and 36 percent, home purchases. The percentages were the same in 2006. Those borrowers may have been tapping equity for reasons as varied as fancy vacations to overdue medical bills, but the majority were not buying new homes.
Were they just trying to make a quick buck? Regarding investors versus homeowners, in 2007, about 5 percent of all securitized subprime loans and 14 percent of Alt-A loans were reported as investor loans. That compares to 5 percent of subprime loans and 13 percent of Alt-A loans in 2006. These numbers don’t include second homes, so the percentages are probably higher, but not significantly so.
Then there’s the question of who really lied on the liar’s loans. Madigan, the Iowa assistant attorney general, cites repeated cases where borrowers were encouraged by brokers to suddenly create businesses in their basements, like day care centers, to boost their incomes. If they questioned it, brokers would say that lenders required it, or not to worry. Still, borrowers signed on the bottom line, some knowing the information was false. Consider this borrower’s account in the San Francisco Chronicle of a sales conversation with a broker:
” He didn’t say anything illegal out loud,” she said. “He didn’t say ‘lie,’ he just made a strong suggestion. He said, ‘If you made $60,000, we could get you into the lowest interest level of this loan; did you make that much?’ I said, ‘Um, yes, about that much.’ He went clickety clack on his computer and said, ‘Are you sure you don’t remember any more income, like alimony or consultancies, because if you made $80,000, we could get you into a better loan with a lower interest rate and no prepayment penalty.’ It was such a big differential that I felt like I had to lie, I’m lying already so what the heck. I said, ‘Come to think of it, you’re right, I did have another job that I forgot about.’”
Countrywide, for example, had a loan program called “Fast and Easy” that required no pay stubs, tax forms or employment verification. The FBI investigation is finding extensive fraud on loans across the board at Countrywide that didn’t require full documentation, The Wall Street Journal reported.
“It really is a case of everybody’s at fault on this,” said Guy Cecala, publisher of Inside Mortgage Finance. “There’s clearly plenty of blame to go around.”
The result is a housing market that still has a long way to go to reach the bottom. A report by Barclays Capital on Tuesday warned that half of all subprime and Alt-A borrowers soon could owe more than their homes are worth — meaning delinquencies are likely to increase, regardless of whether some loans reset.
How those delinquencies will influence the politics of any possible mortgage bailout is anyone’s guess, especially as fraud and its part in the meltdown begin to draw more attention. As Cecala points out, finding the right people to blame can be a complicated issue. In some ways, he says, “it’s just next to impossible” to solve a crisis that so many had a hand in creating. whether they are willing to admit to it or not.
38 Comments
Comment posted June 24, 2008 @ 5:37 pm
I am a mortgage broker and I did a lot of subprime loans. I only did one negative amortization loan which is the loan that is going to be the last type to implode and cause havoc. Wacovia’s purchase of World was like purchasing the Titanic when it was almost touching the iceberg. The one time I did a neg am loan was for a self-employed landscaper that made almost zero about 4 to 5 months of the year, but did quite well in the warmer months here in Colorado. I did do a lot of 80/20 loans which over the years I would turn into an FHA or FNMA loan when the first adjustments aproached. I provided a lot of people with the American dream and it worked quite well for years.
I always had a problem with the subprime loan because they set a really high margin over the index they used to adjust. Let my explain. If the index is LIBOR (London Interbank Overnight Rate) which is a common index and a lot like our prime rate, then a subprime loan on it’s first adjustment would go to 6 or so points over LIBOR, while an A paper loan that adjusts would be at 2.5% above prime. The reason for the discrepency is so that when the subprime players would sell these loan packages on Wall Street, the Return on Investment would technically be higher for these loans due to the high margins. In my opinion, this was the major damage done by subprime loans. The good thing is that banks are willing to negotiate with most borrowers nowdays if they get proactive and talk to them. The problem is that people get behind and just walk too often.
Now here is where the real bad news hits. The real fraud in my opinion were these 1 and 2% pay rates sold as 1 and 2% interest rates. People just weren’t sophisticated enough to realize that when they got a 1% option arm they were really paying 7.5% in a 6% market. Every person in the country that bought an Option Arm could have gotten a fixed rate at about 1.5% less than the real interest rate they were paying. These loans were most popular in places like California where homes were being bought at the average of 13 years of someone’s income when the rule of thumb is to buy 3 times your income. The majority of these have still not adjusted, but when they do, Katy bar the door. I feel that brokers that sold these loans should be ashamed. They knew that they were duping their customers and making them think they had a 1% interest rate. Heck there were ads on the progressive radio stations touting those lies daily. And guess what, you could make a lot more money as a broker with those loans percentage wise than any other loan available.
All this being said, and being a progressive, a lot of the Barney Frank and Eliot Spitzer legislation is terribly damaging to the consumer. The road to hell is paved with good intentions and this legislation will monopolize the mortgage industry with a handful of players controlling the industry and the little guy being knocked out. Bank of America is the number one player behind most of the new legislation and believe me it is not because they have the consumers best interest in mind.
Comment posted May 24, 2008 @ 10:40 pm
I agree with uneasyone. America lives by one solid principal, “You made your bed now you gotta lie in it.” Regardless of whether or not you were ever given the truth or the facts, and this whole forgery and fraud thing is getting a little tired don’t you think? That’s the lifeblood of the industry. Without this practice, borrowers would have ample time to ask questions, to shop around for a better loan, or just say no. In a corrupt debt based economy such as these United States, the lies have to keep coming or else the entire sham operation would cascade in upon itself and we’d be left without the protection and behind the curtain leadership provided by our shadowy banking dynasty overlords
Shit, I’ve been studying my loan docs for 2-1/2 years, I still don’t if I’m giving enough to tip the loan servicer. Is a $20 ok on $5000/mo? Any help?
Comment posted May 3, 2008 @ 8:03 pm
There is no question that the lenders were involved. The greed on the lenders part was so great that they were willing to overlook anything, including fraud perpetrated by their own employees.
Comment posted May 2, 2008 @ 9:47 pm
What a coincidence that all the crooked borrowers went to the same places to spin their evil web of lies.
Some lenders, it turns out, were fortunate and didn’t have all those swarms of liars to deal with. Of course these were crass and flint-hearted bankers who required income verification and (gasp!) down payments! It actually mattered to them whether the customers had the ability to PAY!
What scoundrels!
By all means, lets put the blame for this fiasco where it properly belongs – the $40,000 a year janitor who successfully scammed those poor unsophisticated bankers into believing he could pay for that $400,000 home. No question that the McDonald’s assistant manager fully understood adjustable rates were gonna rise and was easily capable of comprehending every word of the foot-high stack of papers shoved at him during closing. He GOT that job because of his speed reading and comprehension abilities, after all!
Comment posted May 2, 2008 @ 4:47 pm
What a coincidence that all the crooked borrowers went to the same places to spin their evil web of lies.
Some lenders, it turns out, were fortunate and didn't have all those swarms of liars to deal with. Of course these were crass and flint-hearted bankers who required income verification and (gasp!) down payments! It actually mattered to them whether the customers had the ability to PAY!
What scoundrels!
By all means, lets put the blame for this fiasco where it properly belongs – the $40,000 a year janitor who successfully scammed those poor unsophisticated bankers into believing he could pay for that $400,000 home. No question that the McDonald's assistant manager fully understood adjustable rates were gonna rise and was easily capable of comprehending every word of the foot-high stack of papers shoved at him during closing. He GOT that job because of his speed reading and comprehension abilities, after all!
Comment posted May 3, 2008 @ 3:03 pm
There is no question that the lenders were involved. The greed on the lenders part was so great that they were willing to overlook anything, including fraud perpetrated by their own employees.
Comment posted May 24, 2008 @ 5:40 pm
I agree with uneasyone. America lives by one solid principal, “You made your bed now you gotta lie in it.” Regardless of whether or not you were ever given the truth or the facts, and this whole forgery and fraud thing is getting a little tired don't you think? That's the lifeblood of the industry. Without this practice, borrowers would have ample time to ask questions, to shop around for a better loan, or just say no. In a corrupt debt based economy such as these United States, the lies have to keep coming or else the entire sham operation would cascade in upon itself and we'd be left without the protection and behind the curtain leadership provided by our shadowy banking dynasty overlords
Shit, I've been studying my loan docs for 2-1/2 years, I still don't if I'm giving enough to tip the loan servicer. Is a $20 ok on $5000/mo? Any help?
Comment posted June 24, 2008 @ 12:37 pm
I am a mortgage broker and I did a lot of subprime loans. I only did one negative amortization loan which is the loan that is going to be the last type to implode and cause havoc. Wacovia's purchase of World was like purchasing the Titanic when it was almost touching the iceberg. The one time I did a neg am loan was for a self-employed landscaper that made almost zero about 4 to 5 months of the year, but did quite well in the warmer months here in Colorado. I did do a lot of 80/20 loans which over the years I would turn into an FHA or FNMA loan when the first adjustments aproached. I provided a lot of people with the American dream and it worked quite well for years.
I always had a problem with the subprime loan because they set a really high margin over the index they used to adjust. Let my explain. If the index is LIBOR (London Interbank Overnight Rate) which is a common index and a lot like our prime rate, then a subprime loan on it's first adjustment would go to 6 or so points over LIBOR, while an A paper loan that adjusts would be at 2.5% above prime. The reason for the discrepency is so that when the subprime players would sell these loan packages on Wall Street, the Return on Investment would technically be higher for these loans due to the high margins. In my opinion, this was the major damage done by subprime loans. The good thing is that banks are willing to negotiate with most borrowers nowdays if they get proactive and talk to them. The problem is that people get behind and just walk too often.
Now here is where the real bad news hits. The real fraud in my opinion were these 1 and 2% pay rates sold as 1 and 2% interest rates. People just weren't sophisticated enough to realize that when they got a 1% option arm they were really paying 7.5% in a 6% market. Every person in the country that bought an Option Arm could have gotten a fixed rate at about 1.5% less than the real interest rate they were paying. These loans were most popular in places like California where homes were being bought at the average of 13 years of someone's income when the rule of thumb is to buy 3 times your income. The majority of these have still not adjusted, but when they do, Katy bar the door. I feel that brokers that sold these loans should be ashamed. They knew that they were duping their customers and making them think they had a 1% interest rate. Heck there were ads on the progressive radio stations touting those lies daily. And guess what, you could make a lot more money as a broker with those loans percentage wise than any other loan available.
All this being said, and being a progressive, a lot of the Barney Frank and Eliot Spitzer legislation is terribly damaging to the consumer. The road to hell is paved with good intentions and this legislation will monopolize the mortgage industry with a handful of players controlling the industry and the little guy being knocked out. Bank of America is the number one player behind most of the new legislation and believe me it is not because they have the consumers best interest in mind.
Comment posted October 3, 2008 @ 6:54 am
A look into Barack Obama and his past might shed some light on the crisis
Barack Obama joined Trinity United Church of Christ more than 20 years ago and considered the church pastor, Rev. Jeremiah Wright as his mentor. Rev. Wright married Obama and his wife Michelle, baptized their two daughters and is credited by Obama for the title of his book, “The Audacity of Hope.” In his sermons, Rev. Wright repeated denunciations of the U.S and blurted out statements like “The government gives them the drugs, builds bigger prisons, passes a three-strike law and then wants us to sing “God Bless America.” No, no, no, God damn America, that's in the Bible for killing innocent people,” he said in a 2003 sermon. “God damn America for treating our citizens as less than human. God damn America for as long as she acts like she is God and she is supreme.”
Looking at Obama’s ties to Rev. Wright, and his connections to a terrorist bomber, William Ayers, both men who would like nothing more than to destroy this country causes many people to second guess Obama’s intentions for change. If you have not heard about William Ayers, you can read about him in the U.S. News, Michael Barone’s column-Obama Needs to Explain His Ties to William Ayers. “In my U.S. News column, I make a brief reference to the unrepentant Weather Underground terrorist bomber William Ayers and his connections to Barack Obama. They were closer than Obama implied when George Stephanopoulos asked him about Ayers in the April 16 debate—the last debate Obama allowed during the primary season. To get an idea of how close they were, check out Tom Maguire's Just One Minute blog and Steve Diamond's Global Labor and Politics. The Obama-Ayers relationship is also mentioned in David Freddoso's The Case Against Barack Obama: The Unlikely Rise and Unexamined Agenda of the Media's Favorite Candidate.”
Lets examine Obama’s connection with an accused political fixer Antoin “Tony” Rezko. The following is on explanation by Brian Ross and Rhonda Schwartz from ABC News. “In sharp contrast to his tough talk about ethics reform in government, Sen. Barack Obama, D-Ill., approached a well-known Illinois political fixer under active federal investigation, Antoin “Tony” Rezko, for “advice” as he sought to find a way to buy a house shortly after being elected to the United States Senate. Rezko had been widely reported to be under investigation by the U.S. attorney and the FBI at the time Obama contacted him and has since been indicted on corruption charges by a federal grand jury in a case that prosecutors say involves bribes, kickbacks and “efforts to illegally obtain millions of dollars.”
Because Barack Obama was a dependable ally of subsidized developers in the Legislature, his friend and fund-raiser Rezko depended on him to get things done such as cosponsoring a bill in 2001 allowing developers to pocket half of the proceeds from selling state tax credits to others. Obama admitted that his decision to involve Rezko was “a bone-headed mistake.” What he failed to mention is that he has a closet full of bone-headed mistakes such as Peter Wallsten pointed out in the Los Angeles Times on
January 24, 2008.
“Barack Obama angered fellow Democrats in the Illinois Senate when he voted to strip millions of dollars from a child welfare office on Chicago's West Side. But Obama had a ready explanation: He goofed.
“I was not aware that I had voted no,” he said that day in June 2002, asking that the record be changed to reflect that he “intended to vote yes.”
That was not the only misfire for the former civil rights attorney first elected to the state Senate in 1996. During his eight years in state office, Obama cast more than 4,000 votes. Of those, according to transcripts of the proceedings in Springfield, he hit the wrong button at least six times.”
Now comes the big question, what exactly does a community organizer do?
One thing Barack Obama did as a community organizer was pressure banks to make bad loans. In Barack Obama’s youthful community organizing days he joined a group called ACORN. Using the Community Reinvestment Act which was designed to encourage banks to make loans to high-risk borrowers, ACORN started abusing the law by forcing banks to make hundreds of millions of dollars in 'subprime' loans to minorities with bad or no credit. Using charges of racism and threats to use CRA to block business expansions have enabled ACORN to extract hundreds of millions of dollars in loans and contributions from America’s financial institutions.
Other things that ACORN did as community organizers were agitate for higher minimum wages, attempt to thwart school reform, try to unionize welfare recipients who are obliged to work in exchange for benefits and organize voter registration drives. In 2006 for example, their voter registration drive in Washington produced 1,800 new voters of which 1,794 names submitted were fake. The secretary of state called it the “worst case of election fraud in our state’s history.”
If you like to know more, watch these two videos.
http://www.youtube.com/watch?v=nRmB93McZeI
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Cybercorrespondent
http://cybercorrespondent.blogspot.com
Comment posted October 7, 2008 @ 5:36 am
Those two videos paint a very clear picture. As the terrorists have promised, they will destroy this country from with in.
http://www.youtube.com/watch?v=puN9X1mVgRA
http://www.youtube.com/watch?v=vjvBEKrGkDI
A concerned citizen
Comment posted October 9, 2008 @ 9:24 am
Thursday morning I turned on the news and heard that ACORN is under investigation for voter fraud in a number of states. Since I learned not to trust what the media tells us, I decided to have a look what the bloggers had to say. On a sight called A Look Into Barack Obama’s Past – Obamamania – Zimbio website I found the following comment that made me think.
A concerned citizen
Oct-6-08 7:48pm [Edit]
Those two videos paint a very clear picture. As the terrorists have promised, they will destroy this country from with in. …..
http://www.youtube.com/watch?v=puN9X1mVgRA ……..
http://www.youtube.com/watch?v=vjvBEKrGkDI …….
Back to my point. By allowing the voter fraud to go on, makes this great country look like a third world dictatorship. We are supposed to send an example to the rest of the world how honest elections are held and not allow the media to distort the facts. Please people, wake up and tell the media no more. Boycott all the products advertised on publications like the Newsweek, Time magazine and other propaganda machines like the New York Times. Also do the same with CNN and other communist propaganda news sources. Even the Fox News network is starting to sway the viewer decision. After Thursday’s presidential debate, watching Chris Wallace interview a communist from Saint Louis made me sick. Even bad journalists should realize that when you ask a communist or a skin head to give you their views, you can pretty much expect what they are going to say.
I certainly had enough of all of the $%#@Comunism.org
Cybercorrespondent
Comment posted October 9, 2008 @ 11:00 am
Thursday morning I turned on the news and heard that ACORN is under investigation for voter fraud in a number of states. Since I learned not to trust what the media tells us, I decided to have a look what the bloggers had to say. On a sight called A Look Into Barack Obama’s Past – Obamamania – Zimbio website I found the following comment that made me think.
A concerned citizen
Oct-6-08 7:48pm [Edit]
Those two videos paint a very clear picture. As the terrorists have promised, they will destroy this country from with in. …..
http://www.youtube.com/watch?v=puN9X1mVgRA ……..
http://www.youtube.com/watch?v=vjvBEKrGkDI …….
Back to my point. By allowing the voter fraud to go on, makes this great country look like a third world dictatorship. We are supposed to send an example to the rest of the world how honest elections are held and not allow the media to distort the facts. Please people, wake up and tell the media no more. Boycott all the products advertised on publications like the Newsweek, Time magazine and other propaganda machines like the New York Times. Also do the same with CNN and other communist propaganda news sources. Even the Fox News network is starting to sway the viewer decision. After Thursday’s presidential debate, watching Chris Wallace interview a communist from Saint Louis made me sick. Even bad journalists should realize that when you ask a communist or a skin head to give you their views, you can pretty much expect what they are going to say.
I certainly had enough of all of the $%#@Comunism.org
Cybercorrespondent
Comment posted October 15, 2008 @ 1:07 am
Acorn and Obama kept on clarifying that there would be errors in such a large scale voter registrative drive.
The big deal is the high defect rate, which indicated very poor quality control in the voter registrative process.
If a private company produce goods and products with defect rate of over 3%, it will have risk of closing their business due to high consumer returns, high compensation claims.
Acorn produce services with extremely high defect rates, lawmakers continue to grant or allot tax payers' money to them.
I wonder whether Acorn's voter registration registering in extraordinary high percentage of demorcrats among the registration, and whether the Acorn is higher than national ratio by a large degree consistently.
Comment posted October 24, 2008 @ 9:02 am
Financial Crises and the Way to Recovery
The term “shocking” can’t even come close to describe the severity of the financial crises that we are faced with. According to Barack Obama, the only way we can get out of this mess is for this country to adapt socialistic values and enforce socialism by gaining control of all three branches of government. I’m sure that the mountain of money his campaign has collected from domestic and foreign donors, names the Obama campaign won’t disclose, will be used for that purpose. As soon as total control is gained, organizations like ACORN will have a green light to further abuse the law to suppress free speech, control the outcomes of elections and brain wash children in schools to believe that socialism is the answer to all of our problems. With total control of the government, and help from people like Bill Ayers, Rev. Wright and Antoin Rezko, who will probably be pardoned, achieving the ultimate goal, “a life of sexual confusion and moral collapse” will become a strong possibility.
The proof that socialism, or spreading the wealth around does not work can be seen by examining ACORN and its accomplishments by manipulating bancs to make loans to minorities with bad credit. By using charges of racism and threats to use CRA to block business expansions, ACORN and Obama already contributed to the crises we are in today and finding new ways to distribute the wealth will only make the situation much worse. His idea to put a three-month moratorium on foreclosures will further weaken the already fragile banking industry and only benefit delinquent homeowners by allowing them to live rent-free.
In order for our economy to start prospering again, we first need to elect an honest leader who is determined to stamp out the corruption in government and to stop the leftist movement from destroying the middle class. The hard working people can no longer be expected to keep giving until they themselves have nothing left to give.
Cybercorrespondent
http://cybercorrespondent.blogspot.com
Comment posted October 26, 2008 @ 9:10 pm
You didn't include the appraisers who lied.
You didn't include the newspapers who just took the money from the real estate people and printed those FULL PAGE ADDS Those home prices were way way to high.
All of that deception created FALSE supply and demand.
Anyone trying to purchase a home was faced with a price that was too Damned high.
There are people who should be in JAIL!!!
Comment posted October 27, 2008 @ 4:10 am
You didn't include the appraisers who lied.
You didn't include the newspapers who just took the money from the real estate people and printed those FULL PAGE ADDS Those home prices were way way to high.
All of that deception created FALSE supply and demand.
Anyone trying to purchase a home was faced with a price that was too Damned high.
There are people who should be in JAIL!!!
Comment posted August 28, 2009 @ 1:50 am
Save yourselves while you still can. This is the most important video you will ever watch. http://www.youtube.com/watch?v=eAaQNACwaLw&feat…
George Soros and the progressive democrats he has in his pocket have a goal to destroy the dollar and to push for a global currency. As a result, George Soros would make billions just as he did from his attempt to destroy the British Pound. To accomplish his goal, George Soros and his team of democrats have chosen a messenger who via teleprompter will spread their message and will not oblige to his constitutional obligation to prove that he is a US citizen. Please view
http://www.youtube.com/watch?v=qe2bpV1QlkE To help George Soros push for global dominance, the democrats have created legislations such as the Stimulus Bill, the Equal Pay Bill, the Global Poverty Bill, the Tobacco Bill, the Climate Change Bill, the upcoming Health Reform Bill, the UN sponsored Bill that will force Americans to pay a global tax and whatever else they have hidden in the bills no one has read. If George Soros and the democrats are allowed to succeed, it will increase the deficit by trillions, make the dollar worthless and cause this country to self-distrust.
Wake up America before it’s too late. Please watch this video
cybercorrespondent
http://cybercorrespondent.blogspot.com
Comment posted August 3, 2010 @ 2:35 pm
The proof that socialism, or spreading the wealth around does not work can be seen by examining ACORN and its accomplishments by manipulating bancs to make loans to minorities with bad credit. By using charges of racism and threats to use CRA to block business expansions, ACORN and Obama already contributed to the crises we are in today and finding new ways to distribute the wealth will only make the situation much worse. His idea to put a three-month moratorium on foreclosures will further weaken the already fragile banking industry and only benefit delinquent homeowners by allowing them to live rent-free.
Comment posted September 6, 2011 @ 11:10 am
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