MY PUBLIC TESTIMONY
In July, I did what Americans are told to do; contact your representative with issues you face.
On August 28, 2007, I received a letter in response, signed by Wayne Gilchrest. Although I appreciate the letter back, this is simply not enough, and it infuriated me. For months now I've been trying to get a face to face with someone who really wants to do something to turn this crisis around. I’ve called Senator Mikulski, Senator Dodd, and others. No one responds, or they respond with a form letter or cursory response.
In June, I attended the HOEPA meeting and waited patiently for my 3 minutes to speak. That wasn’t nearly enough time to communicate, but I pressed on and submitted my written comments. Everything I said at the HOEPA meeting in June is coming true.
Still nothing was done and no one was listening. Or, they were listening and they chose to do nothing. Either way, it’s not acceptable. Since June how many hundreds of thousands more have lost their homes, how many retirement funds and other stock market investments have evaporated into thin air?
I don't want to be disrespectful, but with all do respect, the total ignorance of our government and Band-Aid solutions will simply not work.
Do the people making the decisions understand, hedging, swap partners, credit enhancements, and Federal Government insured loans?
Do they understand Pay Option Arms, indexes and margins, prepayment penalties, and inflated appraisals? How about theft of settlement funds, captive reinsurance, fee splitting, and ABA's, Targeting, Steering, Flipping, and Reverse Redlining?
Do they read the unconscionable forbearance agreements? I'd love to send you one from Aegis Mortgage, one of the defunct lenders who are still foreclosing on people. Do you really think they have any incentive to "WORK WITH" borrowers.
I'm on the front lines, speaking with people all over the country. Does this government really know how many exploding ARMS are out there?
This problem needs a multi-layered solution. It is very complex, but some of us really understand what it's going to take to turn this around, but no one wants to listen or act.
This isn't just about predatory lending, it isn't just about sub prime lending, it isn't just about a downturn in the real estate market, or about twenty other problems I could mention. It's about all of it.
The totality of what went on for years. Not one year, not two years, but this outrageous situation has been created over many years with our government looking the other way, even as they were warned repeatedly by consumer advocates.
The government did take actions against some lenders, so don’t say you didn't know. But they were "SLAP ON THE WRIST ACTIONS" and the fines didn’t fit the crimes.
Now our government proposes too little too late, "BAND AID" solutions on a gaping hole.
Ameriquest is a crystal clear example of how our government "ALLOWED" the crooks to keep on stealing. While the Justice Department, which led to a $325 million National settlement, was investigating Roland Arnall; he was having dinners at politician’s houses. Including hobnobbing with the Attorney General.
Before I'm done, I can guarantee you, every person in American will know all about Roland Arnall and the rampant fraud and corruption that was ignored.
Arnall is the face on the poster entitled:
"AMERICA FOR SALE" and "WHITE COLLAR CRIME PAYS"
The message is, don't go out and hit someone in the head and take $100 or you will go to jail. Steal millions and billions; buy a few friends in Washington and you'll be an Ambassador. Have you all gone mad?
President Bush has said he will fix this just like IRAQ. I feel so much better now that he's on the case. He can start by throwing his friend ARNALL in jail and seizing his assets for the millions of consumers he stole them from, and cease paying him a salary for Ambassador out of taxpayers money.
This is how we reward sub-prime slime pushers. Ameriquest has so many lawsuits against them - even after the nationwide settlement - that they've been consolidated under Judge Aspen in Illinois.
As an American I'm disgusted with the leadership of this Country. OBVIOUSLY in AMERICA - CRIME PAYS!
The SEC are asleep, the Federal Reserve are asleep, Moody's, S&P, and Fitch are asleep, the Congress and Senate are asleep. WAKE UP! PLEASE!
Everything the House Financial Services Committee and Senate Banking Committee is setting forth is "VOLUNTARY" not mandatory - "NOT LAW."
This is like asking the crooks to "please stop" being crooks. We'd really appreciated it if you would. Gee, Thanks a bunch.
TAKE OFF THE KIT GLOVES. This is ridiculous and I'm getting really mad. Get the heads out of the sand and wake up.
Everyday, I'm getting frantic phone calls from people who are facing losing their houses. Single mothers like myself, people who are sick, people who are afraid and too tired to fight back.
I have a guest at my house this week from Budapest, Hungary. Do you know what other country's think of us from this mess? They think we are a bunch of lying corporate criminals and the international investing community doesn't trust us with their money. The sad thing is, they are right. This is where we are. World Com, Enron, S&L Crisis, and now Fly By Night Lenders ( 150 of them bankrupt this year) http://ml-implode.com/ that created this Black Hole that has set the American economy, stock market and American homes on quicksand.
The lenders, the executives with all the money, will just walk away and leave everyone holding the bag. Countrywide's Mozillo made hundreds of millions over the past few years. Wall Street handed out record breaking bonuses. Will anyone give them back? Not on your life.
Most of the world hates us because of IRAQ and our foreign policy in general, and the rest of the world hates us because their investments have been drug into this debacle.
Are we safer when everyone hates and distrusts us? Is this our strategy for the war on terror?
First, 20 to 25 billion in resets take place every month. Second, the people who now need financing have bad credit, upside down equity positions, and most likely never "income qualified" for the house in the first place. So how will you save them?
If you're looking for people who still have decent credit; who have equity and enough income to support the loan, well you will have to keep on looking.
Next, what do you think $300 million is going to do, it's a BAND-AID on a gusher.
Starting in Jan 2008 the resets spike to 80 billion per month and go to 120 in one month a few months later. So you've got trillions of dollars of resets and $300 million to refinance. Well I’m not great at math but even I can figure that one out.
The letter I received says, Mr. Gilchrest states that he hopes these bills will be examined (more talk) in the upcoming months. HR 1876, Mortgage Cancellation Relief Act, so lenders will renegotiate loans. Sorry I don't get it - the reason lenders aren't renegotiating loans is because they are bankrupt and the banks that own the loans don't even know what loans they own. The borrowers can't even find out who owns their loan.
I can give you some names and please call the Trustee for American Home Mortgage and talk to him about all the banks that are desperately trying to get control of their loans and American Home is fighting them.
I have people who are desperate to get past the originator and find the true owner (or owners) of their note.
The government just doesn't understand the problem. Lenders are manufacturing defaults, because although they are putting forth a "we're helping" front (another lie), they are foreclosing and manufacturing defaults. They need the liquidity back, not a 30-year note they have to modify.
These loans are like hot potatoes and no one wants to be holding them. The lenders see the litigation, and the political climate, and they are trying desperately to liquidate. So those borrowers that are strong fight back and those who are the weakest, give up. I'm furious.
Borrower's Protection Act 1299, is a "forward looking" solution and will do nothing to address the crisis we now face, and in fact, will just exasperate it for now, so I'm confused at your comment that this will go a long way to address the national crisis we are facing.
Thank you to Mr. Gilchrest for the answer to my inquiry, but it wasn't an answer to my inquiry. I will be sure in all of my efforts, (which are many), to communicate to each and every person I tried to reach out to, and communicate the issues and how my pleas were ignored.
I will vote for whatever candidate is running against Wayne Gilchrest. In fact, I will make all of my letters public to let everyone see the incompetence, lack of real focus, and worse, ignoring people who try to educate the lawmakers like myself.
When people realize that over and over again attempts by many, not just myself, to communicate to the appropriate parties who can actually make important laws of monumental importance, are just a bunch of talking heads with their heads in the sand.
I sincerely hope you read my comments submitted to the Federal Reserve in June before the Bear St earns hedge fund collapsed. I warned everyone at that time that the financial sector would collapse and it fell on deaf ears. I was Hanny Penny and the sky was falling. They didn't want to hear it.
Just a few weeks later, the sky fell and continues to fall. I'm just happy I put my comments on Public record.
In the upcoming months, I'm organizing a campaign to send a message to Congress, Senate and the White House. I will be speaking to media and organizing through consumer groups and grass roots efforts on the Web.
Many, many people are involved in this issue and sick of the incompetence. They are stealing our homes - and you are letting them. The information on the KEY EVENT is attached.
So in November and December get ready for our message to arrive and hopefully make our cries loud and clear. Will you help?