Well it was a fun week last week in our nation’s capital. I attended the NAR political convention and had an opportunity to sit in on a few of the very interesting seminars. I have lots to write about for your updates, but this will be short as I am off to see my oldest son graduate from Law School at the University of Montana. A very proud moment for Kim and I.
Unlike our governments attorney general Eric Holder, I took the time to read the “less than” 10 pages of SB1070. Perhaps, if more people would read it we would hear less noise about it. I spent way too much time in DC defending Arizona. IT is a joke that the press has not read nor had someone read this bill to them. If stopped for a criminal activity or traffic violation the cops will ask for a drivers license. If it is fake they will no longer ignore it and will ask you to produce papers. Considering I had to produce an original birth certificate just for my kids to play soccer and baseball. So I am not having a great deal of sympathy here. The funny part I caught last week is that everyone is pointing to Hispanics, however, no one realizes that we have a great deal of Canadians as well. I guess we will be guilty of racial profiling Canadians as well!
Not sure if any of you caught this small article hidden on a back page last week.
Last week Fannie Mae requested 8.4 Billion of our tax dollars, because of continuing high defaults on mortgages it owns. Fannie Mae lost 13.1 billion in the first quarter and 23.2 billion last year. Since taking over Fannie and Freddie in 2008, the government's cost of supporting the two mortgage giants is 145 billion!
So I broke out the calculator and divided $145 Billion by an average home amount of $150,000. That means we could have paid off 1 million homes? Wow!
And the FDIC is making some great deals with our money as well. Follow me close on this one as it is difficult to swallow.
After taking over Indy Mac bank in 2008, the FDIC sold the mortgages to One West Bank, which is partially owned by George Soros and Goldman Sachs ex CEO Steven Munchin. They bought these loans from the FDIC for 70% of the loan value. The FDIC then agreed to guarantee the loans up to 80% of the original loan balance plus any costs.
What does this mean to us? Well, let’s say there was a loan for $478,000. One West bought the loan for 70% or $334,600. They then put the house on the market and short sell it for $241,000. Bad business right?
Except for the fact that the FDIC now sends them a check from our pockets for 80% of the loss or roughly $195,360(this includes other costs). This check when added to the money from the short sale ($241,000) adds up to $436,360. But they only paid $334,600 for the loan! So at our expense, One West Bank makes $101,760 profit on this one home, one example.
People, we are getting screwed all over again, and the same people who screwed us last time are doing it again, but now with the governments help!
Please, don’t forget to vote.