Thread: La Raza Places Blame but Benefits from Housing Crunch

What follows below is a statement released by the 'Fair Housing Alliance' of which La Raza is a member. The group places the blame for the current housing crunch squarely on lenders and makes a strong demand that the government keep 'expand homeownership opportunities and promote access to credit to under-served markets' but remember these are special interest "civil rights" groups releasing this statement so already we can see that they just want their [insert ethnic background here] to get home loans without consequences.

One of the things I have tried hard to impress upon people is that a guy earning $6.5/hr washing dishes SHOULD NOT get a home loan simply because he is hispanic and speaks no English. However, La Raza has fought for and be successful in ascertaining the ability for these types of people and others of similar ethnicities to get home loans. These loans are a large part of what is known as the 'sub-prime market'.

But why would La Raza be placing the blame on the lenders when they have encouraged this behavior AND benefited from it. Their "Institutional Corporate Partners" include Bank of America (owners of Countrywide), Fannie Mae and Freddie Mac.

So is the problem were in now of so little concern that they take the money of the companies responsible for it? When the economy dips the claim they make is that this will devastate hispanic jobs... but they profit from those who cause the decline...

http://www.marketwatch.com/news/story/c ... aspx?guid={EE91F803-04A2-4FD5-8DCC-2EA4A524F1DA}&dist=hppr

Civil Rights and Consumer Groups Respond to Takeover of Fannie Mae and Freddie Mac

Last update: 12:21 p.m. EDT Sept. 12, 2008
WASHINGTON, Sept 12, 2008 /PRNewswire-USNewswire via COMTEX/ -- The federal government announced over the weekend its takeover of Fannie Mae and Freddie Mac. The following civil rights, consumer and housing groups made this statement:

Housing is the key to a strong economy, as we can see by the state of our nation today. Although the government has taken over Freddie Mac and Fannie Mae, it is vital that Congress and the Conservator not lose sight of the GSEs' fundamental purpose, as chartered by Congress, to expand homeownership opportunities and promote access to credit to under-served markets. This purpose continues to be of vital importance.
Private companies that originate mortgages for sale to Wall Street have demonstrated that they will not provide sustainable, quality credit to low- and moderate-income consumers and to under-served markets. While the private securitization market claimed to be fulfilling an unmet need, it adopted practices that were detrimental to under-served markets and ultimately to the entire global economy.
Under the conservatorship, the government has the ability to stabilize our economy and communities devastated by unscrupulous and irresponsible lending practices. To accomplish this, the government and the GSEs should:
-- freeze foreclosures for a substantial period of time on all whole loans in their portfolios to allow for modification;
-- modify existing mortgages likely headed for default by removing these loans from their securitized pools, without waiting for the loan to become delinquent, and modifying them to avoid unnecessary foreclosures;
-- maintain affordable housing goals;
-- make a concerted effort to work with lenders, servicers and rental management companies to stop evictions of tenants in foreclosed units;
-- maintain affordable housing programs, particularly the Housing Trust Fund and the Capital Magnet Fund enacted by Congress in July;
-- develop new underwriting criteria for underserved borrowers who do not meet FHA or prime criteria in order to offer them affordable housing loan products;
-- make fair housing compliance a mainstay of the markets and the GSEs' practices.
As our leaders work to stabilize the housing market, speed economic recovery, and open the benefits of homeownership to working families, the public missions of Freddie and Fannie must be kept front and center.
Association of Community Organizations for Reform Now (ACORN)
CDFI Coalition
Center for American Progress Action Fund
Center for Responsible Lending
Consumer Action
Consumer Federation of America
Consumers Union
Lawyers' Committee for Civil Rights Under Law
Leadership Conference on Civil Rights
National Association of Consumer Advocates
National Association of Neighborhoods
National Consumer Law Center
National Council of La Raza
National Fair Housing Alliance
National Policy and Advocacy Council on Homelessness
U.S. PIRG
SOURCE National Fair Housing Alliance

Copyright (C) 2008 PR Newswire. All rights reserved

Anybody knows what is the proportion of subprime loans that went to illegals?

Giving loans to these people is why we are having a mortgage meltdown right now that the taxpayers have to fund. And they want more loans? Puleeeese.

Originally Posted by wmarincic

Giving loans to these people is why we are having a mortgage meltdown right now that the taxpayers have to fund. And they want more loans? Puleeeese.

La Raza is pathetic!

As usual these special interest groups like The Race want it both ways...I know someone who has two parents which both make less than 60,000 a year yet were moved in to an almost new town home that cost over $550,000. Does that sound right? I don't think so and saying they make $60,000 is being generous because it's probably somewhere between 30-40,000 since these people have lived in low income housing for years. Out of low income right in to a 550,000 home??? And yes they are hispanic and are hard workers, i have nothing against them but I do feel that they were misled and allowed themselves to be taken advantage of by their home lender.

I have a friend who is a mortgage lender and she says that when they apply for a mortgage, they often use false ids and when they can't pay they just move and get another house in another name or they just move back to Mexico. Her company is in trouble, rightly so.

People that loan money generally don't loan it to people who can't pay it back. FM and FM give large amounts of money to liberals. They gave J. Jackson's, Rainbow Coalition 1.5 MILLION $ and gave him 250,000 plus promised 10 BILLION of low-income loans. They dole out money to corrupt orgs. like ACORN. These blood-sucking groups are using them to fund themselves and to create political blocs.

What we see is the unintended consequences of trying to "social engineer" and pandering to minorities. Buying a house is only the beginning...there's taxes and upkeep. Even people who can afford a house get in trouble because of poor money management. This whole mortgage mess started in earnest in the 4th qtr of '06.

This is a Enron type situaton but nothing will happen because democrats run both FMS. They blocked all attempts at imposing accounting standards and investigations. The political stench and corruption should be enraging.

Groups like LaRaza, ACORN, Rainbow Coalition, among others, are extortionists and sick, corrupt politicians pass out the taxpayer money for votes.

Originally Posted by agrneydgrl

I have a friend who is a mortgage lender and she says that when they apply for a mortgage, they often use false ids and when they can't pay they just move and get another house in another name or they just move back to Mexico. Her company is in trouble, rightly so.

Shhhh, laraza doesn't want us to know about them.

I hope every lender who gave loans to illegal aliens loses everything. I know we were scrutinized under a microscope when we bought our house and we're citizens. They went over our ID very carefully. Why didn't they do that to the illegal aliens too? No sympathy. Laraza is architect of this failure, they should be investigated as well.

Originally Posted by agrneydgrl

I have a friend who is a mortgage lender and she says that when they apply for a mortgage, they often use false ids and when they can't pay they just move and get another house in another name or they just move back to Mexico. Her company is in trouble, rightly so.

this is because many sub-prime lenders accept the Matricular Consular card as identification and do not demand on valid LEGAL State Gov't issued i.d.

a flip of this though is that it's the only foreign i.d. accepted. A drivers license from the UK, Ireland, France, or even a foreign passport will be immediately rejected.

This is because to obtain the Consular card you have to sign a piece of paper saying where you live so in case of emergency the Consulate can identify their citizens and remove them (like we did in Seoul, Korea).

So, it is an assumption that the citizens won't lie to their own consulate... when in fact the consulates for Mexico actually encourage US Citizens who are of Mexican ancestry to obtain the id. This makes them look bigger and more powerful in the USA than they really are. In fact much data you see about nationality in the USA comes from foreign consulates that transmit the data to the US Gov't.

FACT: As a bar bouncer I have personally witnessed white, english speaking, non-hispanic teenagers in possession of Consular id's that claim Mexican Citizenry and an age over 21 so they can drink.

FACT: Many bars, liquor stores and restaurants accept these id's in lieu of losing business because they KNOW FOR A FACT many individuals are illegal. They KNOW THIS FACT because they employ the individuals and their friends.

FACT: According to the TABC the Mexican Consular card and the Mexican Federal Registration card (id) are NOT vaild in the United States. Only valid Mexican id in the usa is a Passport.

FACT: It is a violation of federal and state law to NOT posses valid id at all times and to posses instead invalid FOREIGN id. EXCEPT CANADIAN id which is valid.

FACT: It is a violation of federal law for a foreigner to not posses their passport at all times and to instead attempt to use a foreign gov't issued card. EXCEPT CANADIAN id which is valid.