Today a conglomerate of information has been made available via the Press, regarding "California’s Housing" Crisis. The rate at which Homes are being lost and Family’s being displaced, has reached record numbers! We’ve heard everything from bail-out funds to loan modification programs, Homeowner’s and Advocates venting frustration everywhere!

But really, how effective has Our "Countries" Movement really been? The truth is, many a Regulatory Agencies and "Mortgage Professionals" are completely aware of the Vanity, much of "California’s Housing Crisis" efforts to bring resolve have proven. At first glance, it appears that immediate and strategic action was taken in an attempt to return Our State’s Economy to its rightful place.

Everywhere one looked. Funds were allocated, programs were created and new laws were even approved. But what happened! "Foreclosures" and "Evictions" are moving at a pretty steady rate. I’m sure Lenders operating in California received their share of TARP funds! The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase assets and equity from 'financial institutions' to strengthen its financial sector.

How have the "TARP" funds affected California’s Housing Crisis? How about the "Making Home Affordable" Program! ISN’T THIS, WHERE LENDER’S CAN VOUNLITEER TO HELP, OR NOT!! Has any "Californians" heard of the "Community Reinvestment Act" (CRA)? Probably not! Or better yet. What about the massive move to create large numbers of "Loan Modification" Company’s (Non-Profits as well). Whom we later found should not have been charging ridiculous upfront fees and offering guarantees, to no avail?

And last but not least, my personal favorite. Congressional hearings, conferences and the media exposure brought on by their every move? Pretty impressive, Right!

I’m sure some of you are saying. That there have been a number of reports indicating that this overall movement has proven to be effective on California’s Housing Crisis! You know what, your right! It has been effective!

We’re nearing 3.5 million foreclosures this year alone in the US! As far as the Movement to combat California’s Housing Crisis, the only good thing to come out of it all! Is that all of the individual’s involved have guaranteed employment, massive media attention and earning records numbers of incomes for the duration to the Crisis.

O, did I mention that about 500,000 homeowner’s have been helped thus far! I’m sure this number has put a huge dent in the 2.3 million foreclosures last year’!!

That’s about it! Not taking anything away from the family’s who’ve been helped. That’s an great thing to hear! However, the truth of the matter is, this all could have been avoided, absent the huge mistake made on behalf of Allen Green Span (although I think He’s an out-standing person).

Allen Green Span the former "Federal Reserve Bank" Chairman decided He’d lower the Fed rate to the fashionably low 1 percent during 2000-2004, at the request of the "Clinton Administration" . In Investor thinking! This made "US Treasury" bonds less appealing to the World of Investor’s looking to place their investments in the US Economy.

During this same time it was found that the "US Housing" Markets (or Residential Mortgages) were performing exceptionally well. So in an anticipation of Investor calls, ‘good old’ Wall Street prepared it’s self to receive huge numbers of Investor inquiries. And it did!

With "Investor" inquiries for "residential mortgage" or "mortgage backed securities" as they are known, at an all time high. The "Wall Street" ‘Boys’ solicited small banks for an increase in Residential mortgages, which in turn pushed Broker’s to increase their production as well.

New loan products sprung up everywhere! Like the "SISA", "SIVA" and the all too famous, "NINA". For those of us who are not familiar with these terms. "SISA" is short for ‘we can "state your income and assets" on the loan application, and that will be fine. "SIVA' is short for we can "state your income" and we’ll "verify your assets". OK! And "NINA", this is short for "no income" or "assets" verification needed.

Can you imagine not verifying the income and assets of someone you were prepared to lend your hard earned money too? "NINA" was commonly referred to as the “stripper” or "liar" loan! No offense to our lady dancers!!!

However, Unrealized by most of us during these times! Investment firms sprang up everywhere. Large and small banks quickly followed these same trends in masses. These new loan products were seemingly simple and definitely very, very profitable.

It had become obvious to all the "key" people in our Country that the US Housing market was growing and profit margins were hitting record highs during these times. However, in the face of all the growth! Who was responsible for monitoring the standards in which this growth had occurred?

Or better yet! Its potential for short term or long term affects? Good question! Very good question! In the past, the SEC, FTC and the Mortgage Bankers Association among others, had done a pretty good job at monitoring the standards and practices of normal Lending activities, as reported by "US Financial Institutions".

In fact I could say that the "FBI" did an even fairer job of working with these same Agencies, in regards to communicating one to another, suspiciously fraudulent activity! However, with such a huge growth in the "US Housing" Industry for mortgage backed securities! Could these same Regulatory Agencies have expected along with a growth in the demand for "Residential Mortgages", a growth in "fraudulent activity"?

Isn’t this something that "future castings" may have pointed out??? Of course they could! In fact the "FBI’s" Assistant Director for the Criminal Division testified in 2004, about the "Federal Bureau of Investigation’s" (FBI), efforts to combat mortgage fraud and other financial frauds before the House Financial Services Sub-Committee: here’s a quote; “If fraudulent practices become systemic within the mortgage industry and mortgage fraud is allowed to become unrestrained, it will ultimately place financial institutions at risk and have adverse effects on the stock market. Investors may lose faith…”

Wow! And guest what? It happened! The growth in "Residential Mortgages" was so great, that all the Regulatory Agencies put together, didn’t possess the man power or resources needed to watch both the "prudent" loans as well as the "not" so prudent ones as they occurred! You would think that with the ensemble of "Financial Advisors" pooled together and thrown on every Television Broadcast Nationwide.

At least one of them should have been analytical in their thinking, regarding evaluating the rate and standard in which the demand for "Residential Mortgages" had grown. And in some sort of way, suggested some kind of "enhanced mechanism" designed to assist Agencies efforts to combat mortgage and other financial frauds among "US Financial" Institutions!!!

Nevertheless, this didn’t happen! And now, what we have in California! Are the "effects of systemic mortgage fraud unrestrained", both locally and nationally? The "Housing Industry’s" growth and profit’s blinded the key person’s in place needed to report and address imprudent loans or more closely (SISA,SIVA and NINA), “suspiciously fraudulently activity”. "

The "Economy", "Financial" Institutions and "Homeowner’s" are suffering in greater numbers than ever before. "Bankers" and "Investors" most definitely have lost faith. They’ve taking their earnings, profits and yield spreads. And closed up shop! Who would have every saw this coming? Don’t answer that! I’ll tell you who!

The very one’s who created the demand for "HIGH RISK" Mortgage Backed Securities, and failed to adjust their approach to monitor the same Industry’s growth and lending standards. And to make matters even worse, these very same Agencies bailed out the "financial" institutions with Billions of "TARP" funds, and watched them squander the initial infusions! Completely unacceptable!

Absolutely no bail-out for the Homeowner’s!!! However, our Leader’s did make provision for financial institutions (the very one’s who defrauded us) to consider helping the voiceless and helpless Homeowner’s. For a fee, of course! Lenders receive up to $3,000.00 per modified loan from the "Government".

Now lets look at the word consider. It is a verb! Which denotes action? Doesn’t imply a mandate! So what’s really being said here? Again, don’t answer that. I’ll tell you! The Government has basically asked of the "U.S." financial institutions (the defrauders). More specifically Lenders doing business in California and abroad: “HEY LENDERS, WHEN YOUR CALIFORNIA HOMEOWNERS CALL UNDER THE HOPE PLAN. SEE IF YOU WANT TO MODIFY THEIR LOANS, OR NOT”? Great!

Not only does this allow for Lenders to fix the fraudulent loans they sold all across California (with no consequence). It also gives the "Lenders" the opportunity to choose to foreclose and evict California "Homeowners" because the "Lenders" knew the "Homeowners" couldn’t afford the mortgage in the first place!

In most cases, "Lenders" are thinking, 'why modify Californians loans and risk the chance of repeating the same default scenario in the near future'. Case closed! No one hears about the fraud that had taken place when these loans were originated! And Lender’s get away free and clear to move on to the next "VICTIM"! The fraud is completely swept under the rug, before our eyes! Imagine that! THE PERFECT CRIME! OR BETTER YET! THE CRIME OF THE CENTURY!

The "U.S." and "California" have Regulatory Agencies that were completely aware of the fraud and its "effects". Never mind an increased effort to monitor a potential growth of fraudulent activity, that they were all too familiar with.

And here we are! Californians adversely effected! The "U.S." Financial institutions are BROKEN DOWN! THE "ECONOMY" IS WOUNDED and our leaders have given us child like "Band-Aids" to patch up the scars!
“HIP-HIP WOORAY”!!!

I say it's time to fight back!!! Make the "Lenders", "Banks" and related "Mortgage Professionals" pay out of their pockets, that which they earned form this "Crisis"! Come join us in our fight to restore our "Homeowners" and the "Economy? See our "Event" and "Schedule" post?