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Bush Awards Sub-Prime Lender with Ambassadorship

Tex

Well-known member
President Bush rewarded a big campaign contributor whose company was in part responsible for the Sub Prime mess with an ambassadorship to the Netherlands.

Who says we don't have crony capitalism?

Subprime Lender Implosion: Bad Omen For Housing Market
Lenders Collapsing Faster than Cheaply Built Houses




By Martin H. Bosworth
ConsumerAffairs.Com

January 3, 2007

Living in a Bubble?

Mortgage Crisis? Act Now to Avoid Foreclosure
---
• Wells Fargo CEO Invokes Specter Of Great Depression
• Consumer, Poverty Groups Oppose Predatory Mortgage Bill
• Foreclosures Spike in More Metro Areas
• Mortgage Crisis Deepens At Countrywide, E*Trade
• Tweaking Bankruptcy Law Could Reduce Foreclosures
---
• More ...
Subprime lenders have been both blessing and bane in the housing industry for many years, enabling lenders to rake in huge profits while saddling consumers with exorbitant loan terms and high interest rates.

Now, as the housing market slows to a crawl, many subprime lenders are collapsing faster than homes made of substandard materials, and the signs point to even more pain in the housing market as a result.

Mortgage Lenders Network USA (MLN) announced it was shutting its doors today, as a result of market economics the lender said were "not good ... it deals with the performance of loans, and to a lesser extent the value of homes."

The company's abrupt shutdown left many brokers scrambling to find new financing for their clients' home purchases.

The Connecticut-based lender grew from 7 employees in 1997 to 1,800 ten years later, fueled by sharply-cut interest rates which enabled mortgage lenders and brokers to push home loans to clients who might not otherwise have been able to purchase.

Now, with strapped homeowners falling behind in their payments in greater numbers, foreclosures on the rise, and interest rates at their highest level in two years, companies such as MLN found themselves unable to finance new loans.

The last few months have seen a flurry of subprime lenders shut their doors, declare bankruptcy, or engage in mass layoffs as the housing market freezes up.

Ameriquest, formerly the country's largest subprime lender, collapsed quickly after its former CEO, Ronald Arnall, was appointed by President Bush to be ambassador to the Netherlands.

Ameriquest shuttered virtually all of its offices and laid off 3,800 employees thanks to the collapsing subprime market. Its demise was exacerbated by a $325 million settlement with 30 states' Attorneys General over deceptive marketing and lending tactics.

Subprime lender Ownit filed for bankruptcy in December 2006, after rising defaults on its mortgage holdings led Wall Street firms -- which bought and repackaged the loans Ownit held -- to seize the companies' assets and demand it take back the bad loans.

Ownit had formerly been the country's 11th-largest subprime lender, issuing more than $5.46 billion in loans in the first half of 2006.

Other subprime lenders potentially on the chopping block include Countrywide Financial and H&R Block's mortgage unit Option One. The latter has been a particular target of wrath among ConsumerAffairs.Com readers.
More Pain On The Horizon

The failures of subprime lenders are bad tidings for the housing market as a whole.

Just as low-income consumers feel the pain of gas or tax hikes first, subprime borrowers are the first to fall behind or default on their mortgage payments as interest rates rise.

A Center for Responsible Lending (CRL) study found that one in five subprime loans issued during 2005-2006 will fail, with over two million homeowners at risk for foreclosure as a result.

The CRL study placed much of the responsibility on the marketing of risky "creative" mortgage products such as adjustable-rate mortgages (ARMs) to consumers with bad or no credit, or bad financial histories.

A study conducted by the Mortgage Bankers' Association (MBA) also found that subprime mortgages were experiencing higher rates of delinquency in the past twelve months.

Although economists and realtors continue to claim that the housing market slump has hit bottom, many still see delinquencies on the horizon, particularly as the ARMs reset to higher levels that consumers will not be able to keep up with.
 
A

Anonymous

Guest
1/3 of all Federal law enforcement investigators (FBI, Treasury,Secret Service, Bank Regulators, etc.) are now assigned or involved in investigating mortgage and lending fraud cases....Many States and Cities are now setting up task forces as the cases become more apparent- and are overwhelming law enforcement...

Miami-Dade County has had to set up a task force since reports of fraud went up from 15 last year to hundreds this year-- and they say they are only scratching the surface...The investigations are indicting bankers, borrowers, real estate agents and execs, attorneys, etc. etc....

Years of no oversight by the current administration has led to what may become the most widespread fraud and most massive business corruption case in US history-- and probably the biggest bunch of cronyism pardons :shock: :( :mad:
 

Tex

Well-known member
Oldtimer said:
1/3 of all Federal law enforcement investigators (FBI, Treasury,Secret Service, Bank Regulators, etc.) are now assigned or involved in investigating mortgage and lending fraud cases....Many States and Cities are now setting up task forces as the cases become more apparent- and are overwhelming law enforcement...

Miami-Dade County has had to set up a task force since reports of fraud went up from 15 last year to hundreds this year-- and they say they are only scratching the surface...The investigations are indicting bankers, borrowers, real estate agents and execs, attorneys, etc. etc....

Years of no oversight by the current administration has led to what may become the most widespread fraud and most massive business corruption case in US history-- and probably the biggest bunch of cronyism pardons :shock: :( :mad:

Maybe he wanted diplomatic immunity. :twisted:
 

Tex

Well-known member
Annemieke said:
Old news, Tex. This took place several years ago. :wink:

No, we are suffering from the affects right now. It is on the lips of Bernanke almost every time he speaks.

We have a corrupt group of leaders in our country that are causing real problems in our economy by running the government for their own self interests and those of their friends.
 

Goodpasture

Well-known member
Since late 2006, 188 major U.S. lending operations have "imploded"

188. Tribeca Lending Corp. (Wholesale)
187. WAMU Comm. Correspondent
186. Marlin Mortgage Company
185. Countrywide Specialty Lending
184. UBS Home Finance
183. MortgageIT-DB (Retail)
182. Edgewater Lending Group
181. ResMAE Mortgage Corp.
180. Citimortgage Correspondent (2nds)
179. AMC Lending
178. Southern Star Mortgage (Wholesale)
177. Liberty American Mortgage
176. Exchange Financial (Wholesale)
175. FirstBank Mortgage
174. Bank of America (Wholesale)
173. Diablo Funding Group Inc.
172. Honor State Bank
171. Spectrum Financial Group
170. National City - Home Equity, Correspondent
169. Priority Funding Mortgage Bankers
168. BrooksAmerica Mortgage Corp.
167. Valley Vista Mortgage
166. New State Mortgage Company
165. Summit Mortgage Company
164. WMC
163. Paragon Home Lending
162. First Mariner Wholesale
161. The Lending Connection
160. Foxtons, Inc.
159. SCME Mortage Bankers (Wholesale)
158. Aapex Mortgage (Apex Financial Group)
157. Wells Fargo (various Correspondent and Non-prime divisions)
156. Nationstar Mortgage
155. Decision One (HSBC)
154. Impac Lending Group (Wholesale)
153. E-Trade Wholesale Lending
152. Long Beach (WaMu Warehouse/Correspondent)
151. Expanded Mortgage Credit Wholesale
150. The Mortgage Store Financial
149. C & G Financial
148. CFIC Home Mortgage
147. BrokerSource (BSM Financial - Wholesale)
146. All Fund Mortgage
145. LownHome Financial
144. Sea Breeze Financial Services
143. Castle Point Mortgage
142. Premium Funding Corp
141. Group One Lending
140. Allstate Home Loans / Allstate Funding
139. Home Loan Specialists (HLS)
138. Transnational Finance Wholesale
137. CIT Home Lending
136. Capital Six Funding
135. Mortgage Investors Group (MIG) - Wholesale
134. Amstar Mortgage Corp
133. Quality Home Loans
132. BNC Mortgage (Lehman)
131. Accredited Home Lenders, Home Funds Direct
130. First National Bank of Arizona (FNBA) Wholesale, Correspondent
129. Chevy Chase Bank Correspondent
128. GreenPoint Mortgage - Capital One Wholesale
127. NovaStar (Wholesale), Homeview Lending
126. Quick Loan Funding
125. Calusa Investments
124. Mercantile Mortgage
123. First Magnus
122. First Indiana Wholesale
121. GEM Loans / Pacific American Mortgage (PAMCO)
120. Kirkwood Financial Corporation
119. Lexington Lending
118. Express Capital Lending
117. Deutsche Bank Correspondent Lending Group (CLG)
116. MLSG
115. Trump Mortgage
114. HomeBanc Mortgage Corporation
113. Mylor Financial
112. Aegis
111. Alternative Financing Corp (AFC) Wholesale
110. Winstar Mortgage
109. American Home Mortgage / American Brokers Conduit
108. Optima Funding
107. Equity Funding Group
106. Sunset Mortgage
105. Fieldstone Mortgage Company
104. Nations Home Lending
103. Entrust Mortgage
102. Alera Financial (Wholesale)
101. Flick Mortgage/Mortgage Simple
100. Dollar Mortgage Corporation
99. Alliance Bancorp
98. Choice Capital Funding
97. Premier Mortgage Funding
96. Stone Creek Funding
95. FlexPoint Funding (Wholesale & Retail)
94. Starpointe Mortgage
93. Unlimited Loan Resources (ULR)
92. Freestand Financial
91. Steward Financial
90. Bridge Capital Corporation
89. Altivus Financial
88. ACT Mortgage
87. Alliance Mortgage Banking Corp (AMBC)
86. Concord Mortgage Wholesale
85. Heartwell Mortgage
84. Oak Street Mortgage
83. The Mortgage Warehouse
82. First Street Financial
81. Right-Away Mortgage
80. Heritage Plaza Mortgage
79. Horizon Bank Wholesale Lending Group
78. Lancaster Mortgage Bank (LMB)
77. Bryco (Wholesale)
76. No Red Tape Mortgage
75. The Lending Group (TLG)
74. Pro 30 Funding
73. NetBank Funding, Market Street Mortgage
72. Columbia Home Loans, LLC
71. Mortgage Tree Lending
70. Homeland Capital Group
69. Nation One Mortgage
68. Dana Capital Group
67. Millenium Funding Group
66. MILA
65. Home Equity of America
64. Opteum (Wholesale, Conduit)
63. Innovative Mortgage Capital
62. Home Capital, Inc.
61. Home 123 Mortgage
60. Homefield Financial
59. First Horizon Subprime, Equity Lending
58. Platinum Capital Group (Wholesale)
57. First Source Funding Group (FSFG)
56. Alterna Mortgage
55. Solutions Funding
54. People's Mortgage
53. LowerMyPayment.com
52. Zone Funding
51. First Consolidated (Subprime Wholesale)
50. EquiFirst
49. SouthStar Funding
48. Warehouse USA
47. H&R Block Mortgage
46. Madison Equity Loans
45. HSBC Mortgage Services (correspondent div.)
44. Sunset Direct Lending
43. Kellner Mortgage Investments
42. LoanCity
41. CoreStar Financial Group
40. Ameriquest, ACC Wholesale
39. Investaid Corp.
38. People's Choice Financial Corp.
37. Master Financial
36. Maribella Mortgage
35. FMF Capital LLC
34. New Century Financial Corp.
33. Wachovia Mortgage (Correspondent div.)
32. Ameritrust Mortgage Company (Subprime Wholesale)
31. Trojan Lending (Wholesale)
30. Fremont General Corporation
29. DomesticBank (Wholesale Lending Division)
28. Ivanhoe Mortgage/Central Pacific Mortgage
27. Eagle First Mortgage
26. Coastal Capital
25. Silver State Mortgage
24. ECC Capital/Encore Credit
23. Lender's Direct Capital Corporation (wholesale division)
22. Concorde Acceptance
21. DeepGreen Financial
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial
http://ml-implode.com/
 

Mike

Well-known member
Which candidates are bought and paid for?

http://rabbit-hole-journey.blogspot.com/2007/11/campaign-contributors-of-media-anointed.html
 

TSR

Well-known member
Mike said:
Which candidates are bought and paid for?

http://rabbit-hole-journey.blogspot.com/2007/11/campaign-contributors-of-media-anointed.html

Well Mike, up until this upcoming election the Republicans most always had more money than the Dems. Any idea where that money came from??
 
A

Anonymous

Guest
TSR said:
Mike said:
Which candidates are bought and paid for?

http://rabbit-hole-journey.blogspot.com/2007/11/campaign-contributors-of-media-anointed.html

Well Mike, up until this upcoming election the Republicans most always had more money than the Dems. Any idea where that money came from??

Tuesday, November 13, 2007
The Campaign Contributors of the Media Anointed
The USA is controlled by the Corporatocracy, by the lobbyists and big business interests. The people that own these corporations are the people that own and run this country. They are not interested in making life better for you or me. They are only interested in their own money and power.

By controlling the mass media, they choose who the next president is. At the beginning of election campaigning, they immediately declare and anoint who the "top tier" are. This is the short list of whom they approve for the presidency. The 2-party system ensures that this list gets pared down to "Puppet A" and "Marionette B".

Of these corporations, the most powerful are the banking and finance corporations..

This is very true-- and this year, since its almost inevitable that the Dems are going to control D.C.-- they are sticking the most money on their controllable Dem- Hillary-----but not taking any chances and are "longshotting" that with the most controllable Repub- Gagliani....
Kind a "who not to vote for" annointment for me :roll: :wink: :lol:

Last I saw- the Dems were leading the Repubs on donations by about 4 to 1 for Congressional races... That is because the corporate world recognizes that the Repubs decade or two of rule are done-- and now it will be the Dems they need to have in their pockets.....
 

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