HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform

HUD FEATURE
1981 - 2015 HUD's
Legacy of Scandals

HOBB-Over 1M visits monthly
Daily Visitors Over 37,000
 Highest Daily 70,723

Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
We have 94 guests online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration

Property Rights Denied!
Protecting HOA Members' Rights is NOT The #1 Priority
of Managed Communities
The High Price of Managed Living, Books and Records Hidden
gives appearances of impropriety
Editorial Feature: Part One - Are Homeowners' Rights a Myth? 

Part Two: HOA Bureaucrats Overstep Their Authority

HUD Leaders Cisneros & Martinez and Bad Poicy
Thursday, 13 November 2008

Kenric Ward: Homewreckers Cisneros & Martinez
Touting his Cuban heritage, Martinez continues to hype homeownership for lower-income minorities. By 2007, Hispanic homeownership hits an all-time high of 50 percent. The Federal Reserve reports that roughly half of these mortgages are higher-cost or subprime loans to buyers with impaired credit. So there you have it: The guy who was in on the ground floor of this country’s housing collapse comes calling with a half-billion of your tax dollars to save the day. Thanks a lot, Mel. Unfortunately, this is a bipartisan scheme.

Kenric Ward: Homewreckers Cisneros & Martinez
By Kenric Ward
Thursday, November 13, 2008
Anatomy of a real-estate debacle:

• Mel Martinez, secretary of Housing and Urban Development from 2001-2003, rewrites federal regulations to allow mortgage brokers to gouge unsuspecting applicants, rake in kickbacks and inflate the housing bubble. 
• After two years on the job, he runs for and wins a U.S. Senate seat from Florida in 2004. (During the campaign, he talks tough about illegal immigration, but, upon taking office, he promotes amnesty for illegals.) 
• Touting his Cuban heritage, Martinez continues to hype homeownership for lower-income minorities. By 2007, Hispanic homeownership hits an all-time high of 50 percent. The Federal Reserve reports that roughly half of these mortgages are higher-cost or subprime loans to buyers with impaired credit. 
• With the bubble bursting and foreclosures mounting in 2008, Sen. Martinez announces a $541 million federal aid package “to put a floor on declining home values across our state.”  

So there you have it: The guy who was in on the ground floor of this country’s housing collapse comes calling with a half-billion of your tax dollars to save the day. Thanks a lot, Mel. 

Unfortunately, this is a bipartisan scheme. 

The New York Times recently detailed how one of Martinez ’s predecessors at HUD, Henry Cisneros, used similar politically correct con games to juice the system. 

Embracing the “ownership society” mantra, the Clinton Cabinet member loosened the rules on government-insured borrowers and vastly expanded the roles of Freddie Mac and Fannie Mae, the “government-sponsored” mortgage giants (i.e., less regulation; more taxpayer exposure).

For all his pandering, Cisneros wasn’t rewarded with a Senate seat, however, because he got caught up in a sex scandal involving payments to a former mistress. But he landed on his feet anyway: Upon exiting HUD, he was given seats on the boards of KB Homes and Countrywide, two of the biggest players in the decade-long housing boom. 

He even started his own development company in Texas , with help from his old KB-Countrywide pals. And why not? When he was HUD secretary, he signed an agreement with Countrywide President Angelo Mozilo to use “proactive, creative efforts” to extend homeownership to minorities and low-income Americans. That set the stage for Martinez & Co. 

The Bush administration’s WhiteHouse.gov Web site still displays this snippet of history, which sounds absurd in retrospect: “ Martinez has undertaken a comprehensive process to empower and protect homebuyers, and is actively working to reform and simplify the homebuying process and make it less expensive for consumers.” 

If it appears that Washington ’s Democratic-Republican duopoly set up the housing train wreck, it is equally evident that politicians are shamelessly dodging any responsibility. 

“I’m not sure you can regulate when we’re talking about an entire nation of 300 million people and this behavior becomes viral,” Cisneros rationalized to the Times, without a twinge of irony. 

Congress may yet dig into the credit mess and the ensuing housing debacle, but don’t expect lawmakers to unearth the truth. Fannie, Freddie, et al. invested wisely inside the Beltway.

To date, no one has questioned Cisneros’ lucrative segue through the revolving door of apparent conflicts of interest. The media continue to unquestioningly swallow Martinez press releases as he builds a multimillion-dollar war chest for his 2010 re-election campaign.

Spreading $541 million in federal tax dollars to 49 Florida communities, including $13.5 million to Port St. Lucie and $5.2 million to Palm Bay , is a surefire way for Martinez to bank political IOUs and keep his name in a positive light. Well, sort of. 

As detailed in a 2007 federal court case, “Culpepper vs. Irwin Mortgage Corp.,” Martinez used his HUD sinecure to promulgate rules that lined the pockets of mortgage brokers at the expense of unwitting and uninformed applicants. Payments of “yield spread premiums” added untold billions to the cost of mortgages — many of them to the same lower-income, minority borrowers Martinez claimed to serve and protect. 

Now that tens of thousands of properties are falling into foreclosure, the senator’s answer is to pick the public’s pocket again with an “assistance” package that has all the earmarks of yet another pork barrel. 

The package, according to Martinez , can be used to “offer downpayment and closing-cost assistance to low- and moderate-income homebuyers. State and local governments also have the ability to create land banks to assemble, temporarily manage and dispose of property.” 

T
ranslation: If you liked what Washington has done to the housing market, just wait until your local governments get a piece of the action. 

This is tantamount to bank robbers Bonnie and Clyde claiming they were providing “financial services” to the community. The only difference is that they didn’t get away with it. 

ETHNIC PANDERING? SI! 
In 2001, President George W. Bush’s political strategist Karl Rove told the Washington Times how Mel Martinez’s role as HUD secretary fit into the administration’s electoral plans: 

“If you’re a Mexican-American, if Mel Martinez comes to town and talks about his life story and this administration’s policies to encourage homeownership, and you hear Bush talking a tax cut, education and leaving no child behind, and he’s seen with (Mexican President Vicente) Fox, and the first place he goes when in Europe is Spain — you say, ‘Hey, Bush gets it. Our community is important to this guy.'''

http://www.tcpalm.com/news/2008/nov/13/kenric-ward-homewreckers-cisneros-martinez/
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

 

 
 
< Prev   Next >

 Texas, First Home Lemon Law Debated in the Nation
Homebuyers Need a Home Lemon Law

Search HOBB.org

 Beware of HOA Payment Plan! 

HOA Foreclosures Big Business 
ON THE COMMONS with Shu Bartholomew
Dr. Evan McKenzie HOA Governments

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

 Feature
Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
by
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

ATTENTION TAXPAYERS:
 
Pulte-Centex $900 Million Grant
Bad Guys at Countrywide Profit on Mortgage Toxins

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Arbitration Fairness Now!
Sen Feingold, Rep Johnson
Introduce Consumer Justice
 
Senate Passes Franken
Binding Arbitration Amendment
  
   
Public Citizen Report 
Home Court Advantage
 

 (See photos) & Latest News

Judiciary & Civil Jurisprudence
 Arbitration Hearing,
Video of Homeowners
Testimony Advance to 1:55

Arbitration Bill Passes Senate
Four years to fight to get in court is not a day in Court, Jamie Leigh Jones 

 


Legislative
Watch
TEXAS ABOLISHES BUILDERS
PROTECTION AGENCY TRCC
 


Texas Regulates Homebuyers
 
Texas Comptroller Condemns TRCC Builder Protection Agency
TRCC is the punishment phase of homeownership in Texas

HOBB Update Messages

Consumer Affairs Builder Complaints

 TRCC Implosion
 TRCC Shut Down
 Sunset Report

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

Perry's Gifts Keep on Talking
Sun Never Sets On Politicians Taking Homebuilder Money

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Homebuilder's Right-To-Repair Illusion

Builders Looking for Federal Handouts

How Texas Home Building Industry shaped the TRCC to regulate buyers 

SpotLight
LiveTalk Internet

Build it right the first time
An interview with Janet Ahmad

HUD's Broken System
From HUD's Deregulation to Disgrace
Did HUD Secretary Cisneros
 Mastermind Predatory Lending?

Take Action
Ban Binding Mandatory Arbitration

Send a message urging your Congressman to support all legislation banning this unfair practice

Voting Texas Style
What Lawmaker is Voting for you?

Most Read

 Give Me Back My Rights Campaign
Model State Arbitration Legislation
Fair Homebuyer Contract Model

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

NCPIRG
Homebuyers' Bill of Rights
Tips for a Better Built Home and to Protect Your Investment

Drum Major Institute
for Public Policy

Tort Deform
Report Your Arbitration Experience

Homebuilding Texas Style
And the walls came
tumblin' down

 Texas Homebuilder
Bob Perry Political Contributions

  The Agency Bob Perry Built
 TRCC Connection News
Tort Reform

NPR Interview - Perry's
Political influence movement.
Click to listen 

Texas Homebuyers
Fight for Rights

TRCC Abolish or Fix
or Pass Home Lemon Law
or
Homebuyers Bill of Rights

POLICYHOLDERS OF AMERICA POLL
82% would not vote back in office any legislator, regardless of party, that is soft on bad homebuilders?

REWARD
MOST WANTED

ARIZONA REGISTRAR OF CONTRACTORS
Have you seen any of these individuals

Pulte Homeowner Survey
Warranty & Mortgage Experience
 Click to participate

Tort Reform Feature
Texas Monthly
 Hurt? Injured? Need a Lawyer? Too Bad!

Special Money Report
Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
Read More
Read Report: Big Money…
Home Builder Money Source of Influence

Letters to the Editor
Write your letters to the Editor

Homeowner Websites

top of page

© 2017 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.