After writing several articles about this country’s mortgage meltdown and the little-talked about role which illegal aliens have played in this crisis, a woman who I will call “Mary” contacted me with inside information on the crisis. What follows is a brief interview I conducted with Mary. (I am protecting her identity because she still works in the mortgage business.)
Q) What is your background and who have you worked for? A) I am in the Mortgage Industry and personally audited thousands of sub prime loans while working as a contractor. The last company I worked for was EMC, previously owned by Bear Stearns so I thought I would share the caveat on these loans. Q) When my wife and I bought our home, we had to provide a mountain of documentation, including federal tax returns. How have the mortgage lenders allowed illegal aliens to enter into a mortgage loan without the proper documents? A) The Sub Prime underwriting guidelines had special requirements for, what was called, Foreign Nationals….30% down and full credit package including credit references from their country of origin and a valid Visa. To circumvent this requirement, the applications were marked that the borrower was a US citizen then, regardless if the credit profile did not support such a claim, an underwriter was not allowed to question. This along with use of stolen SS# or use of their American born child’s SS# and lax credit requirements that allowed alternative credit, helped cover the ruse. All required documentation was fraudulent and with the large use of a/k/a’s, information was hard to track. Q) What did management do when it was discovered that a stolen Social Security number was being used by a borrower? A) It was not uncommon to find a SS# being used by up to 23 other people or a borrower with 27 a/k/a’s. Management would often clear a loan that you tagged as fraudulent so it wouldn’t be shelved. Q) What was the worst case you have seen? A) One borrower stole the SS# of a retiree and took out $3.5 million in loans, turned around and did cash-out refi’s, then fled the country. The retiree was left with ruined credit, $3.5 million in loans and trouble with the IRS. Over 50% of the sub primes were for cash-out refi’s. Regardless of the loan criteria used to pull random samplings for audits, the majority of the last names were Hispanic. The loans I audited were primarily in CA, NV, AZ, FL, CO, compare those to the states with the highest number of foreclosures & illegal aliens. Q) What is your opinion on the $750 billion bailout engineered by former Treasurer Hank Paulson and approved by Congress? A) During the bailout, I called my Congressman and other leadership including Barney Frank and asked if there was a provision within the Bill that prohibited illegal aliens from being bailed-out…..the answer was no. I asked if there was a provision in the Bill that helped homeowners that did not take out sub primes but are faced with losing their home due to the negative impact of sub primes and was told…..no. So in other words, those that committed crimes to obtain the loans will get a helping hand to bail them out, compliments of the US Taxpayer! Q) Any final thoughts? A) I cannot tell you how angry I am over this and you are right…..Congress will not talk about it. I have written to mine [Congressman] several times over the last year, yet my only response is their standard form letter. When I call and demand an answer, I have been told someone will get back with me, of course that never happens. Looks like we are picking up where we left off before the bail-out. If Mary’s observations did not anger you, I am certain that the next bit of information will do the trick. Of course, we all know that, on October 26, 2001, President Bush signed the USA Patriot Act. However, I would wager to say that almost no one knows that contained in section 326(b) of the USA Patriot Act is a provision that allows US banks to accept Mexican Matricula Consular cards as a valid form of ID for opening bank accounts. It should be noted that while our President and Congress ordered American banks to recognize these Mexican-issued cards, there is not one Mexican bank which accepts their own government’s Matricula Consular card as a valid form of ID, because the bearer’s identity is basically untraceable. The following is a list of U.S. banks (both regional and national) and mortgage insurers which are known to offer home loan programs targeted at illegal aliens: -Bank of America -Citigroup -Deutsche Bank AG -Fifth Third Bancorp -Genworth Financial Inc. -J.P. Morgan Chase -Liberty Financial -Mortgage Guarantee Insurance Corp. -Plaza Bank -Wachovia -Wells Fargo So there you have it. Those elected to represent we the American people, decided instead to represent the bankers and allow illegal aliens to borrow money, often using the stolen Social Security numbers of American citizens. This so-called sub-prime mortgage crisis was actually a crisis of massive fraud. And why not?…The banks who made the loans have lost nothing, because the taxpayers have been forced to bail them out for their risky and even illegal loans.
Comments
You have written a very good article.
It makes me ask whether there is just cause for criminal or civil action against those who have perpetrated these circumstances.
I, for one, have been catastrophically affected by this fraud, as I believe you have correctly stated it to be.
In my case, with Bank of America, I have had a mortgage on a 27 yr. old house through them for the past eleven years.
When I first got it, as a self-employed architect, I was required to provide an enormous amount of documentation, covering five years, to show I could afford a loan. My purchase resulted in a loan to income ratio below 18%, and it stayed that way, even after I refinanced in 2006. At that time BofA, would only loan me 60% of the value of the house. They never visited the site or appraised it. Nevertheless, their terms for the refinance was acceptable to me. I did not want more than I could handle or need.
Oddly, I was told that I did not need proof of income documentation for the new mortgage. Regardless, every cent of the cash out went back into the house; new pool, new plumbing, new air conditioning and several room remodel projects. Most of the labor was done personally. I was careful. I did everything right. Now it doesn't matter.
Being in the business, and being very busy, what was truly happening behind the scenes escaped me, and apparantly many others, too. It was a booming profession during this last decade, right up until January of 2008, when I was laid of from my job of nine years with a firm that specialized in the housing market.
After three months of unemployment, I found another architectural position with a large corporation, at a significantly lower salary. My loan to income ratio shot up to 36%, but I hung on. It lasted for nine months, when they disclosed they were not selling houses, and were shutting down much of their western U.S. operations.
Three months ago, I was laid off again. I went to my bank branch immediately and informed them of my situation. My mortgage is in arrears now. I was told they have had thousands of defaults and that they would "work on a way" to prevent my losing the house to foreclosure. That was two months ago. I haven't heard anything from them since, but I expect the sheriff to arrive any day now.
I have applied to several hundred companies, even those who have not advertised, but have gotten only one interview. I personally see no light at the end of this tunnel. There are many thousands of architectural professionals in the same situation. In my case, thirty-two years of professional experience means nothing, now. Meanwhile, I keep checking the job boards and working on the small finish projects that are left. It will be a nice place when they come to kick me out.
As a citizen of the United States of America, I feel bitter, betrayed, and very angry.
I believe that none of this would have happened if the banking industry were strictly regulated as they were when I first bought this house, or any of the other houses I have bought over my lifetime.
It is unthinkable to me that responsible financial organizations such as these could be so wantonly careless.
I believe that Bank of America is in fact, culpable.
I believe they have grossly mismanaged their businesses, and I believe the US Government is complicit.
The US Congress may think they can hide from the matter, but I think otherwise.
I would like to know if anyone else feels the same way.
LindaSoG, your comment is the one that is erroneous. Having to deal with, let alone prove that you are not at fault, IRS or any other big government agency is a tremendous burden. This is why identity theft is such a big problem.
Sorry dude. But you're wrong. If you're the victim, you make a police report, an investigation is opened, and if isn't you, it gets cleared up rather quickly. The quicker you prove it wasn't you, the better for the lender, they want to foreclose as quickly and as cheaply as possible. You prove it isn't you, the house is foreclosed, life goes on. It's a pain in the ass, but not a a huge pain in the ass. Despite what Dave's "insider" claims, if you're the victim, you don't get stuck with the loan, you don't get your credit ruined and the IRS doesn't come after you. That's just plain happy horseshit.
And... Dave... you might want to clean up MGM's comment. It looks a little sloppy being there now that you've deleted mine.
I'm confused - how could MGM comment (at 9:05) on LindaSoG's comment before LindaSoG commented (at 10:28)? Is MGM psychic?
B., ever heard of different time zones ?
Jeffersons Ghost,
I hear ya dude. And I "feel your pain." This country has been forked big time by the Demoncrats for these last 40 years (not to say there have been some raskuley Re-thuglicans) but on the whole--Congress has been forking the people of this country BIG TIME.
Amazing how the Brownshits of The Barry are quick to set 'pitchforks and fire' against eeeeevil AIG and corps like them, but is busy eating pizza right now while freeking terrorists are having their way on the high seas without so much as a strong rebuke.
Gotta take back the House and The Senate--give D.C. a good enema and we'll be in rip roaring good shape and you'll be back to work in about no time flat.
I'm a uncontrolable capitalist.
Hang in there buddy and DON'T give up.
What's wrong with this picture? The comments seem as siwash as the story.
Yo Dave,
Way to go. Open up that can of worms on these banks and Congress dolchbags.(sic) Maybe some will have their Ivory Tower Legal Beagals stiff arm you for making comments you can't back up. But I say: "Fork em'. Make my day."
The more that gets out about this the better. You have seen the YouTube on the Bahney Fwank and Dodd hearings the day the repubs call them on their shananagins and they cowpot rolled them? You can find it. Its still up. And thats only the beginning. Check out the G30 in a PDF from the WaPo. You know you box won't allow the link. Its the Whos Who of the Global Banking system. See if a few of the names from pp20-27 don't spark some brain cell activity.
It will give some ideas for the some of the names you've named.
eye opener
Aw dave. You went and deleted another one of my comments. Silly. That's okay. It's obvious that you're deleting my comments. There's no way my comment is after MGM's because of a difference in time zones since I would have to be psychic to reference his comment in mine before he posted his.
Get a grip. You look like a fool.
and... haven't you noticed yet that I'm taking a screen shot of everything?
The mortgage industry subject's claims are fairly well documented by another source. Public records files at the FBI field office point to mortgage (and other) fraud committed by those in the country illegally. All you have to do is go to the site, click the various links and read. It's time-consuming, one reason pomp media has not explored it.
Excellent catch on that interview.
I've written about this frequently too, and pointed out the fraud element in the mortgage meltdown. This interview places it within the context of a front line witness.
Very nicely done.
best, Kay B. Day
jUST REMEMBER-IF WE HAD NOT HAD A PRESIDENTIAL ELECTION AND THE LOONEY LIBERALS HAD NOT BEEN HATE-MONGERING, FOAMING AT THE MOUTH AND DRIBBLING TO GET BACK INTO OFFICE-THIS MESS WOULD HAVE BEEN DEALT WITH IN A QUIETER WAY-THOSE IDIOTS PUT IT ON THE FRONT BURNER(NEVER FORGET THAT THIS MESS IS THE FAULT OF DEMOCRAPS AND THE FEAR-MONGERS OF THE LEFT-WINGERS!)ALL THIS $$$ SPENT?...TO PAY PEOPLE OFF...GOLDMAN SACHS-A CONTRIBUTER AND A PLAYER-ALL OF THESE CRIMINALS IN THIS CABINET AND THOSE DESPICABLE MORONS ARE STILL AFTER SARAH PALIN
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