George W Bush launched the "We Are an Ownership Society" campaign in 2002. Now that most of us know that there was fraud at every turn, it is important to listen to Bush's wile words. A transcript is below. Show this as you GOTV:
Our taxes were given to developers as down payments for homes?
$440 Billion set aside by Fannie/Freddie to buy mortgages from brokers?
Decreased payments, over time, promised to low income families?
Really? How did that work out in the end? Fraudulently inflated home values while payments doubled over time.
Bush's words, key points transcribed:
His words:
Now that we are this end of the American Nightmare, you really HAVE to listen to what he says:
We must Increase home ownership
He addresses lower income families, minorities
We will Create American Dream Down Payment Fund using taxpayer money
Lack affordable housing units (where did that plan go?)
A tax credit to developers to build low income housing (did that happen?)
Simplify paperwork
Mel and Alfonso Jackson, will make closing easier
Federal government has to play an important role.
Need others. The real estate industry. The REI benefits.
Create a sustained commitment by the private sector. (Well he did that)
Expand capital to buyers, provide education. Not just a federal responsibility.
Challenged industry leaders to get after it, stay focused, to achieve the goal.
Achieve the goal of a more secure America.
Create 5.5 million new minority home owners.
America's home ownership challenge.
Fannie, Freddie
Increase their commitment to minority minorities $440,000,000,000 ($400 billion).
Thanks Leland and Franklin, conforms to their charters.
Freddie Mac Will purchase more loans made to minorities to
Freddie Mac will initiate 25 initiatives to eliminate home ownership barriers.
I understand that in this country there are too many people who say
"American dream?" What American dream?"
We need to make sure, for the security of this country, that the dream is alive.
Those with poor credit will get a mortgage with an interest rate that automatically goes down after a period of consistent payments.
One more time, Bush declares that
Those with poor credit will get a mortgage with an interest that auto goes down after a period of consistent payments.
Bush had the bully pulpit, and set the stage of desire for a home throughout the nation.
He certainly laid the foundation of hope for.....well, 5.5 million low income, minority families, as he stated above.
So, when you hear that the buyers were "Stupid" and should have known better, it's really important to review the history of what REALLY happened.
Setting aside the speculators and house flippers, you average Jon and Jane home buyers were hoodwinked, translated: Defrauded
And, worse, they were hoodwinked into signing mortgages for homes worth 15%-30% less than true valuation because the brokers/lenders only worked with appraisers who would play along with their inflated valuations.
When property values increase dramaticaly in a short period it is always due to one thing: Appraisal Fraud
2008: Freddie Mac Releases the Home Valuation Code of Conduct
And how did those new rules work out? Not so well: Appraisal Fraud continued to spiral upward.
An April, 2010 Appraisal Fraud report for the year 2009 (refers to the SARS submitted, not the millions of homes that may have fallen victim to appraisal fraud):
*Value inflation, subdivided into three categories, is also a large portion of reported appraisal fraud and misrepresentation:
18% of loans in this category reported inflated values under 15%;
40% had inflated values between 15% and 30%; and
17% had inflated values over 30%.
In short, 57% of appraisal fraud cases (those reported) in 2008 and 2009 were overvalued by more than 15% and many over 30% overvalued.
For the whole story on Appraisal Fraud, you can read here:
http://www.dailykos.com/...
For the whole story on how the game board was set up by the industry and government, including the shackling of the FBI under Bush, to steal homeowner equity and fraudulently create MBS, CDO, and CDS for mortgages on property worth much less than their stated value, you can read here:
Housing Fraud Opus: From A-Z, Collusion by All
by War on Error
Thu Oct 21, 2010 at 02:14:10 PM PDT
http://www.dailykos.com/...
This is long, because it is the culmination of two years of research.
SOLUTIONS are included. We don't hear much about solutions, but there are some.
It will just take someone using the bully pulpit to force the players to stop playing with the lives of real people, admit the lenders failed due diligence, the brokers acted fraudulently, and Congress and the regulators under Bush DID NOTHING but enable the whole mess.
Would that be so difficult?