Dear Congressman Kucinich:
This is Greg Collins. It was great meeting you at Matthew Weisman’s dinner party and I very much appreciate your concern and action on mortgage fraud relating to the subprime crisis. Right in your own neighborhood of Cleveland; Ameriquest and other predatory lenders and servicers have wreaked havoc on neighborhoods, the economy and housing values. This fact has been addressed by ESOP (East Side Organizing Project).
Losing your home can be a traumatic experience, and in some cases life threatening, especially when the homeowner did nothing wrong, but were thrown out of their home anyway.
Much of the foreclosure finger-pointing is being directed toward the borrower for lying to get loans they cannot afford. That might be true in a few cases, but most were defrauded and pressured into believing they could afford the loan.
There is another case of fraud we call “mortgage servicing fraud”; where the lender or servicer manufactured the default in order to profit by adding fees to the account that are both unwarranted and unlawful. Expensive “forced placed insurance” is usually charged to the borrower, even though the consumer already has their own insurance.
Many people have even lost their homes due to scams that the lenders and insurance companies and/or contractors were involved in, that’s pretty cold hearted to view a hurricane victim’s ordeal as an opportunity to steal their home.
What may be the motive behind foreclosures don’t the lenders lose money?
Well that is the biggest fallacy of the real state and lending industry.
Lenders have many methods to profit from foreclosures mostly by leveraging the mortgages as collateral and transferring the properties though trust relationships and placing hedge bets against the pooled servicing agreements going into default and then creating the default. This action would violate SEC regulations as well as incurring civil and criminal penalties for the partners knowingly involved in these transactions.
These aggressive and fraudulent lending and investment activities affect not only the homeowners but the greater economy and housing values as well inclusive of the stock market.
Not only that but they endanger foreign investment in the U.S. and endanger our fractional reserve fiat monetary system which is primarily backed by the confidence in U.S. property and business values. The subprime and predatory lending and servicing and investment industries convert these mortgages into mortgage backed securitizations and threaten to chop the roots out of our entire financial system.
The problem is much bigger than local and foreign investments and lending fraud. The problem is really based on the fact that our monetary system is structured on monetized debt and the fractional reserve system and encourage risking capitol, which is collaterized by other people’s money primarily though mortgages.
We ultimately need to consider sound money principles and a savings based economy to create wealth for the lower and middle class and encourage wise financial behavior. No government agency will hold everyone’s hand and review every financial deal, nor would we want them to. The key is to establish a self-correcting system coupled with aggressive enforcement of financial crimes.
Quite simply, this would benefit borrowers, lenders and long range investments rather than short term quarterly profits and leveraged investment and lending scams.
I know this sounds radical, but we need to replace the debt-based private banking system with a government fixed monetary system that is transparent to the public. This system will allow economic mobility and freedom and ensure social stability and reduce trade disputes due to international monetary manipulation/currency valuation. This system will stem the flow of businesses out of the country and outsourcing and help rebuild our manufacturing base and help reduce reasons for going to war.
This may sound oversimplified and naïve, however, it has worked well in the past and the current debt-based system has always failed and created poverty, wars and to me the worst situation of all -- debt slavery. It makes the ultra rich richer and the poor poorer.
I know this is a complex issue that covers many subjects, and while my claims of intentional fraud by the lending system may seem harsh, we have conclusive evidence verified in court documents from around the country.
Big stumbling block? Won’t the rich protest this? No, because they will have less taxes and greater personal wealth. The poor won't protest because they will lose freebies and entitlements if they are educated to the fact that most of the money goes to interest and looting the economy and there is less for them under a debt-based monetary system.
Therefore I propose a government issued transparent bond/interest free lending system as a solution to the majority of the nations problems.
Here are couple pictures of my home it was a one room school home built in 1863 and I spent about 7 years rebuilding it from the ground up.
I had several hundred thousand in equity and Ameriquest transfered it into their name and immediately initiated foreclosure. Roland Arnall the owner of Ameriquest was sheltered from by being given diplomatic immunity in the Netherlands in exchange for 12 million in Presidential donations. He was know to have defrauded millions of Americans and his company was found guilty of fraud by 49 A. G.'S.
I feel George Bush helped facilitate this crime against U.S. citizens and is an actual threat to my life as well as others so I really appreciate your efforts on the impeachment.
Again thanks for your time and efforts and it was great meeting with you.
Sincerely, Greg Collins