Mortgage Abuses

Federal Reserve Chairman Ben Bernanke says the central bank is considering tougher rules to crack down on abusive practices by mortgage lenders.

The abuses and bad practices have already taken place, it should not be to curtail responsible sub prime lending, but to seek those that participated in the perpetrating and profiting from deceptive, fraudulent, purchases, loans and the transfer of properties, and sometimes organized as if they should be looking at the RICO Statutes.

Without many of the NYSE builders participating and encouraging unlawful tactics through more than more not intimidating employee conduct by management, whom benefited financially, through illegal conduct. It has to be investigated not swept under the rug.

Just to let you know; what a common act in the Realtor World was, that, prior to a community grand opening some Realtors were in the loop with some Builders and did some Front Running in Purchasing New Homes; being given preference to pre-market pricing. Almost every new home builder community was like an IPO, and the preferred enablers were in many cases REALTORS. The NAR should get their investigative arm, and a real hard look would uncover these deceptive purchases and sales

They would be in First Place at pre-construction prices, purchase them under deceptive information pertaining to financial and occupation status.

After purchasing the New Home as if getting an Insider or High Profile Client in a stock issue, at the Institutional Price, the Realtors would not only get their commission co-broke from the Builder; but also flip the house as a Trader would do at the opening Bid, to an unsuspecting fool, at a higher price, get the After Market Opening Price on the Home, and also in selling the home, get another commission.

The New Home Builders, mostly publicly traded companies appeared to work in tandem with their arms length Mortgage Companies to make sure that many unqualified purchasers were able to purchase a home that they were not financially capable of maintaining.

Reference the Charlotte Observer as to Beazer Homes, Beazer is not unique in its Mortgage Processing Tactics; almost every major National New Home Builders operates the same way. It is like a virus that copies itself.

The major national builders should be forced to repatriate all deceptive earnings garnished from this deceptive, fraudulent practice on proven cases; instead of states raising Funds in the Bond Market to bail out these home buyers who in most cases were probably coaxed into giving false information to appease the NYSE builder’s mortgage companies.