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Two McCain aides lobbied for ’shady’ mortgage lender.»
On Friday, the Politico reported that the past anti-regulatory and lobbying efforts of one of Sen. John McCain’s top economic advisers, former Texas Sen. Phil Gramm, “contributed significantly to today’s economic turmoil.” Today, the New York Daily News reports “that two of his top advisers were recently lobbyists for a notorious lender in the mortgage meltdown“:
John Green, the senator’s chief liaison to Congress, and Wayne Berman, his national finance co-chairman, billed more than $720,000 in lobbying fees from 2005 through last year to Ameriquest Mortgage through their lobbying firm, disclosure forms reviewed by the Daily News show.
Ameriquest, which since has been bought out, was forced to settle suits with 49 states for $325 million. More than 13,680 New York homeowners got taken for a ride by the company, records show.
“They would be defined as the most blatant and aggressive predatory lenders out of everybody,” said Bruce Marks, head of the nonprofit Neighborhood Assistance Corporation of America.
Mr. Johnson, who led mortgage buyer Fannie Mae from 1991 to 1998, received more than $5 million in loans from Countrywide that were arranged outside its normal underwriting process, according to loan records and people with knowledge of the transactions.
A Democratic power broker who remains a paid consultant to Fannie Mae, Mr. Johnson was a major beneficiary of a Countrywide program known as "Friends of Angelo," which arranged loans for friends of Chairman and Chief Executive Angelo Mozilo at attractive rates.
In December 2006, Fannie Mae disclosed that Mr. Johnson was receiving annual consulting fees of $300,000. A spokesman for Fannie Mae, Chuck Greener, said Wednesday that Mr. Johnson remains a consultant but declined to discuss his pay. "In this housing crisis, Jim Johnson is a valuable resource to our company," Mr. Greener said.
If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed. But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.
Originally posted by infocon_delta
Well, the bailout plan may be a good idea...But, I have to say its goimg to be very very bad for the value of the US dollar.
Next year, the US will perhaps convert their currency to EUROS because the dollar will not be enough to produce.
The dollar will equal to ZERO against all major currencies.
The US dollar will NOT exist by next year or so. The dollar is going to sink like the Titanic....
This is very true and this my prediction
Please, any opinions needed.
Originally posted by thefreepatriot
reply to post by BlackOps719
Mariano was in our office in Miramar...he was actually a good guy in my book but was very aggressive.. it was World domination!!!!!!!!
[edit on 28-9-2008 by thefreepatriot]
reply to post by wutone
I think it would be very interesting to investigate more into what Fannie Mae and Freddie Mac were trying to do with the housing economy. Did Fannie and Freddie force banks to lend to people who couldn't afford their loans?
The government has promoted bad loans not just through the stick of the CRA but through the carrot of Fannie Mae and Freddie Mac, which purchase, securitize and guarantee loans made by lenders and whose debt is itself implicitly guaranteed by the federal government. This setup created an easy, artificial profit opportunity for lenders to wrap up bundles of subprime loans and sell them to a government-backed buyer whose primary mandate was to "promote homeownership," not to apply sound lending standards.
Of course, lenders not only sold billions of dollars in suspect loans to Fannie Mae and Freddie Mac, contributing to their present debacle, they also retained some subprime loans themselves and sold others to Wall Street--leading to the huge banking losses we have been witnessing for months. Is this, then, a free market failure? Again, no.
Originally posted by amfirst
I have no pity for these people. Sales people are known to do what they have to do to close the deal. Same thing as car salesman or anyone else.
No one stuck of gun to these homeowners and made them sign the papers. Everything is written in black and white. If they can't aford the homes or want to pay for the fees, then don't do it or go somewhere else. Now, they tried to point the blame on the mortgage companies when they practically beg for a loan. They are just as much at fault as anyone else.
People need to take responsibility for their choices.
[edit on 30-9-2008 by amfirst]