President Obama Wants Eric Holder To Do For Home Loans What He Did For Drug Lords…
IT’S ELECTION YEAR – Promises-Promises!
Perhaps unnoticed within the rehash of political platitudes that had been repeated the past three years, President Obama declared a desire to set up yet another government agency – this one headed by embattled Attorney General Eric Holder, to investigate home lending fraud.
The new office is to be called the Mortgage Origination and Securitization Abuses and will focus not only on abuses within the home mortgage industry, but also seek to compenste homeowners struggling to make their current mortgage payments. The office would bookend President Obama’s other desire to force banks to write down billions of dollars in underwater mortgages. And make no mistake – the one program is very much essential to the other.
With the Mortgage Origination and Securitization Abuses office in place, President Obama will have yet another layer of federal authority to bully and intimidate the lending institutions – particularly the smaller local banks who are already struggling with the regulatory burdens that have been put in place during the Obama recession. While the larger banks – many who are represented prominently within the Obama administration, have the capacity to absorb the costs of these increased regulations, smaller banks are finding it increasingly difficult and costly to keep up. Add then the cost of forced write downs, and the future for these more local lending institutions becomes even more bleak.
And on a related side note, guess who is being considered to head the newly formed Mortgage Origination and Securitization Abuses office? None other than Tony West – brother-in-law to California Attorney General Kamala Harris. Mr. West was the attorney who provided legal defense for a member of the Taliban and later helped Barack Obama raise some $85 million in California-based donations for his 2008 presidential campaign.
Thanks to Ulseterman for finding this information and publishing it!
