|ANALYSIS OF LVB's ARGUMENT
It erased 30 years of wealth in the Black community. Between 2004 and 2006, the use of low quality adjustable rate subprime mortgages skyrocketed from 8% to 20% from 2004 to 2006 — African Americans were targeted for the loans.
Whether inadvertent or intentional - Ms Burke did a slight of hand in her notation above.
She attempts to make the case that "ALL" of the home foreclosures that we have seen during a given period of time are the result of "Subprime Lending" - particularly "To Blacks".
Surely - job loss, divorce or other situations that altered a person's ability to pay their mortgage played a part. Surely all of these people did not have "Subprime" mortgages.
More to the point, however, the term "Subprime Mortgage", in and of itself MEANS NOTHING. It is not indicative of a loan that is predestined to "foreclosure".
There is a "Prime Mortgage" - one who's interest rate is within a certain band. Then there are "Subprime" rates - which are out of the "Prime Range", forcing the mortgage holder to pay a higher monthly payment and thus more money over the term of the loan - as compared with someone with a lower rate.
Ms Burke and others are arguing that "Economic Racism" - "The Hidden Cost Of African America" (The book that I am looking at right now on my bookshelf) is the reason why Black people who qualified for a "Prime Rate" were given a "Subprime" rate and thus cheated out of their money.
I suggest that Ms Burke go into "Sam's Club" right now and watch as she gets "Approved for a Discover Card" as she checks out. IF you are not in-tune enough to ask "What is the interest rate?" and you aren't concerned that it is 22% - you might feel as if they did you a FAVOR - just as the "mortgage broker" who "hooked you up" with a "subprime loan" several years ago.
If we go back to the late 1970's - interest rates were in the double digits. The "Prime Rate" was higher then than the rates that are called "SubPrime" today.
The Black community and America in general has a greater impending threat from the actions of the Federal Reserve to artificially keep interest rates down by purchasing up "US Treasury bonds" (one hand of the government buying up the 'funny money' that the other hand has created.
Instead of seeking to "lock someone up" - it would be wise for Ms Burke to note that without ORGANIC INCREASE of industry/competency within the Black community - the grand fraud and larceny that is endemic within this "fiat economy" will seem like "The Good Ole Days" IF - the "Musical Chairs" stop and the very same people who were targeted for "Subprime Mortgages" as well as "Subprime Community Management" in order to harvest their money and their consciousness - and they are left to fend for themselves.
The Embedded Confidence Man, Broker Of Social Justice To "The Least Of These", No Longer Has To Ring Twice - He Can Come Right In And Get A Piece Of Your Valuables
Literally 20 minutes ago I was talking to a family friend who is a resident of Europe who is also in the financial services industry about "The Mortgage Meltdown".
We talked about:
- The Consumers (residential mortgage holders and applicants) who ....
- Did "cash out" loans for houses that were paid for, in communities where home values were increasing
- Got into houses that they could not afford, using "subprime" mortgages that had initial favorable rates that ballooned to unfavorable rates in 5 years, requiring them to refinance before that time
- I noted that as newlyweds my wife and I met the income requirements but did not have a credit history together. We got a "Subprime" loan, upon which our broker and friend told us to pay our mortgage on time for one year and then come back to get into a fixed rate mortgage at market rates. We kept our end of the bargain and got a "prime loan"
- The Mortgage brokers who canvased the neighborhoods seeking to get people into mortgages
- I heard about some "Nigerians" in London who got a friend into an "Interest only" loan. The friend later lost the house
- I told about a family friend who was an "engineer by day" and became a "mortgage broker" the next time I saw him. At the time I felt that I was missing out on a train that was moving fast.
- The Home Appraisers - the ones who worked in cahoots with the brokers as they received the numbers that they needed to "work with" and many compromised their integrity, inflating the home value as such
- The Bank / Mortgage Underwriters - The ones who knew that they were accepting in a lot of "garbage paper" but understood that they were going to bundle the portfolio and sell it to investors on the "Secondary Market"
- The Investors / International Banks - who thought just as I thought about the "Mortgage broker" - There is something going on (in the American mortgage finance industry) either get in or miss out". They purchased these secondary mortgages
- The Local Governments - who's tax digest grew fat because appreciating home values translated into increased property tax collections. They could give their employees raises and fund various municipal developments
- The Retail Establishments - that prospered from the new homes and active economy
- The Talk Radio Stations - that lured their listeners to "remote broadcasts" saying - "Why rent when you can own? Stop by our location. We have live music and hot dogs. We will be hear till 3. We have loan specialists standing by who can get you into a loan TODAY"
- The Bush Administration - who advocated for "increased home ownership rates - particularly for minorities
- Freddie and Fannie - The Government Sponsored Enterprises who bought up many of these "Subprime" loans in order to keep the accelerated market at the time going.
- NOTE: How is what they did to mortgages any different than what the Federal Reserve is doing right now - as it has made $2 Trillion of "Magic Money" since the crisis hit in 2008? They are "bubble enablers" at a far grander scale - right before our eyes.
QUESTION - What are the chances that you will hear Lauren Victoria Burke detail ALL OF THE PLAYERS IN THE GAME - with the goal of assigning PROPORTIONAL blame rather than one so rooted in ideological indictment?
On the one hand - her claim is not true. The US Justice Department has gone after several "Mega House Flippers" - who operated in particular metro-areas, doing racketeering operations where fake documentation, fraudulent home appraisers amounted to mortgage fraud. The poor communities that they targeted in the scheme suffered as a result.
But Ms Burke is looking for "White Wall Street Bankers" - just as we saw in regards to the near bankruptcy of Detroit.
Do you believe that Ms Burke believes that WARREN BALLENTINE HURT BLACK PEOPLE?
Why then did she set up a conditional "Well Why Didn't You Prosecute Them?" argument?
Warren Ballentine - as with other "Black Media" products have a direct channel into the "Black Community Consciousness Nucleus". Their greatest POWER is to DEFINE A NARRATIVE and keep HAMMERING IT HOME.
With this in mind - do you notice that there is not one ounce of demand for INSTITUTIONAL INTEGRITY demanded of the likes of Warren Ballentine and others who sit in such positions of "confidence" BECAUSE - just as "The Banks" need to be "the adults in the room" - to place a check on the "Fraud" lest we see a AN ECONOMIC COLLAPSE....................those force who have the positioning and leverage to undercut and destroy the "Black Community Governance Culture" have the power to damage the Black community - who will need to survive based upon the ORGANIC COMPETENCIES that we have contained within our community - once the musical chairs of the "Fiat Economy" stops.
Ultimately, Ms Burke - what is the value of your commentary - other than STUNTING the conversation that the Black community NEEDS TO HAVE: "How To Protect - The Least Of These FROM 'The Embedded Confidence Men' Who Play Upon Their Grievances And Hatred - Turning It Into 'The Black Agenda', Who's Merit Is Judged By Its POPULARITY Rather Than Its EFFECTIVENESS At Building Up The COMPETENCIES OF OUR PEOPLE, Through The HUMAN RESOURCE DEVELOPMENT INSTITUTIONS - That It Gains Control Over Through Attrition? "
Prosecutions Of Mortgage Fraudsters:
- Feb 2012: Fraudsters Sentenced To Prison For "Reverse Mortgage" Scheme
- Sept 2012: Feds Charge Woman In Mortgage Fraud Scheme
- Feb 2005: Feds Probe Mortgage Fraud Cases
PS: The Next Time You Have A "Message Coordination Meeting" With The Obama Administration - You Might Want To Tell The "Obama Justice Department" About Your Disappointment That No Banker Was Arrested.
Though I Won't Be At That Meeting - I Would Ask Them For Advice On How To Placate "The Black Press" Into Focusing On Their Right-Wing / Capitalist Enemies Domestically - While Being Unphased By The Continued American Imperialism - All Without Having Journalist Like You Say That "Obama Has Only Bombed Nations Of Color". Instead you tell us that "He ended two wars"!!!