Daily Archives: July 19, 2016

Republican Party calls for significant changes to housing in 2016

Housingwire:

And if the Republican Party sweeps November’s elections, the world of housing finance could be in for some significant changes, as the 2016 Republican Party platform calls for seriously cutting the government’s role in housing, potentially abolishing theConsumer Financial Protection Bureau and ending the use of disparate impact to enforce fair lending laws.

According to the Republican Party platform, which can be read in full here, one of the GOP’s goals for 2016 and beyond is to “advance responsible homeownership while guarding against the abuses that led to the housing collapse.”

The GOP platform states that the party believes in the importance of homeownership and wants to do more to help more people achieve it.

“Homeownership expands personal liberty, builds communities, and helps Americans create wealth. ‘The American Dream’ is not a stale slogan. It is the lived reality that expresses the aspirations of all our people,” the Republican Party platform states. “It means a decent place to live, a safe place to raise kids, a welcoming place to retire. It bespeaks the quiet pride of those who work hard to shelter their family and, in the process, create caring neighborhoods.”

And to return to healthier levels of homeownership, instead of the current near-record lows, more needs to be done, but not by the government, the Republican Party argues.

According to the Republicans, the government has already done more than enough.

“The Great Recession devastated the housing market. U.S. taxpayers paid billions to rescue Freddie Mac and Fannie Mae, the latter managed and controlled by senior officials from the Carter and Clinton Administrations, and to cover the losses of the poorly-managed Federal Housing Administration,” the Republican platform states. “Millions lost their homes, millions more lost value in their homes.”

Donald Trump Reportedly Wants An Ex-Goldman Exec To Be Treasury Secretary

hahamouse

And the GOP just released their platform for the convention that they want to break up the banks. Did Trump know that Hank Paulson, former U.S. Treasury head and ex-Goldman said that he is voting for Hillary? lol

On side note: Trump’s choice for U.S. Treasury head is the same man that specialized in fraudulent foreclosures during the heart of the 2008 US economic collapse that I posted in May.

Huffington Post:

Donald Trump, the political outsider running a renegade campaign for president, has a fresh idea about who should head the Treasury Department: an ex-Goldman Sachs executive.

Fortune’s Dan Primack reports that Anthony Scaramucci, a Trump fundraiser and hedge fund salesman, says Trump has told potential donors that if he is elected he wants to nominate Steve Mnuchin, his campaign’s finance chairman, to be Treasury secretary.

Mnuchin is the co-CEO and co-founder of Dune Capital Management, a hedge fund. He worked at Goldman Sachs for 17 years and left in 2002. Mnuchin’s father, Robert, was a partner at Goldman Sachs before retiring to run an art gallery. In 2004, Steve started Dune Capital with funding from George Soros, the progressive trader, philanthropist and boogeyman to conservative conspiracy theorists everywhere.

If hiring a former Goldman Sachs executive to run fundraising efforts was an odd choice for Trump, who’d bragged that self-funding his campaign made him immune to special interests, then daydreaming about appointing the same person Treasury secretary ― presumably to woo donors ― only amplifies the absurdity. In truth, Trump was never fully self-funding his presidential bid, and his campaign staff is increasinglystocked with lobbyists.

Glass-Steagall: Wall Street is not happy with Donald Trump

Traders at the New York Stock Exchange watch Donald Trump speaking on TV.

I bet they are pissed.. lol!

CNBC:

After the surprise announcement, which came on the first day of the Republican National Convention, Wall Street sources sounded off on the idea that a Republican would reverse course on policies nearly 20 years old and now taken for granted by big banks.

One lawyer, who works with financial institutions on behalf of a white-shoe firm in New York, called the idea “scary.” Even Wilbur Ross, one of the Trump campaign’s biggest supporters from the finance industry, called it “surprising.” Others on Wall Street who spoke to CNBC used stronger language that can’t be printed.

Lenders Cannot Seize Property For Delinquent Mortgages Before Foreclosure

The Washington state Supreme Court has ruled that lenders cannot take possession of a property due to missed mortgage payments without first going through foreclosure. This ruling opens the door to a federal class action spearheaded by Laura Jordan and joined by more than 3,600 borrowers. Jordan started the case after her mortgage provider seized her property following two missed payments. The lender made a forced entry into her home while she was at work and changed the locks.

While many view the lender’s actions as trespassing and theft, others in the industry say that the ruling is in conflict with many terms listed in standard mortgage agreements. The language found in many of these documents states that lenders can take several steps to maintain the value of a property that has been abandoned or is in default, including changing the locks. A brief filed by Freddie Mac supported these terms, saying that by keeping up these properties, lenders were protecting their investments and also maintaining the value of surrounding properties.

Read on.

The Republican Platform’s Surprise Revival of Glass-Steagall Legislation

THE LAST-MINUTE DECISION to include in the Republican platform a call to restore the firewall between commercial and investment banking comes as a surprise, because Donald Trump himself has never publicly addressed or endorsed such a reform in his year-long presidential run.

Trump did once say at a debate in New Hampshire, “nobody knows banking better than I do,” but a review of the transcripts of all 12 Republican debates shows that he never endorsed restoring Glass-Steagall, legislation first passed in 1933. Websites devoted to detailing Trump’s positions find no record of him having any opinion on the Depression-era law. The issues pages of Trump’s presidential website steer clear of anything related to banks or finance.

In fact, Trump campaign manager Paul Manafort, who first leaked word that the platform would endorse the reintroduction of Glass-Steagall, ran a campaign consulting firm in the 1980s that helped elect to Congress Phil Gramm, co-author of Glass-Steagall’s repeal. (Gramm supported Ted Cruz in the GOP primaries.)

The measure is haphazardly attached to the end of a paragraph decrying regulatory overreach by the Environmental Protection Agency, National Labor Relations Board, Federal Communications Commission, and more. Tacking on a call to restore a law that prevents private corporations from particular lines of business suggests that there wasn’t much thought put into it before Monday.

To the extent that Trump has expressed anything about financial reform, it’s been a desire to roll it back. He told The Hill last October that the Dodd-Frank law is “terrible” and “the regulators are running the banks.” Dodd-Frank’s repeal is also in the Republican platform.

Read on.

HUD Secretary Castro broke election law with Clinton endorsement

Castro should have known better…

Definition of Hatch Act:

The Hatch Act of 1939, officially An Act to Prevent Pernicious Political Activities, is a United States federal law whose main provision prohibits employees in the executive branch of the federal government, except the president, vice-president, and certain designated high-level officials of that branch, from engaging in some forms of political activity. The law was named for Senator Carl Hatch of New Mexico. It was most recently amended in 2012.

………

President Barack Obama signed the Hatch Act Modernization Act of 2012 on December 28, 2012. It modified penalties under the Hatch Act to allow for disciplinary actions in addition to removal for federal employees; clarified the applicability to the District of Columbia of provisions that cover state and local governments; limited the prohibition on state and local employees running for elective office to employees whose salary is paid completely by federal loans or grants.

Investigation finds Castro violated Hatch Act in interview with Katie Couric

Department of Housing and Urban Development Secretary Julián Castro, rumored to be on former Secretary of State Hillary Clinton’s shortlist for vice president, violated federal election law when discussing and endorsing Clinton during an April interview with Yahoo News.

According to a report from the U.S. Office of Special Counsel, first reported by Buzzfeed, Castro violated the Hatch Act, which prohibits federal employees (and cabinet members) from using their official position to influence an election.

During the April 4 interview with Yahoo News’ Katie Couric, Castro “impermissibly mixed his personal political views with official agency business despite his efforts to clarify that some answers were being given in his personal capacity,” the OSC said in a letter to President Obama.

Per the letter to President Obama, Castro’s 18-minute interview with Couric began with approximately seven minutes of discussion about HUD-related issues, including: “ConnectHome, a HUD program to expand Internet access to families in public housing. He then discussed the affordable housing crisis in America, home ownership, the difficulties of getting a home loan, and the National Housing Trust Fund, another HUD initiative.”

According to the OSC, Castro conducted the interview from HUD’s broadcast studio, with the official HUD seal “visible behind him.”

And in the eyes of the OSC, those factors, plus the fact that Couric repeatedly referred to Castro as “Mr. Secretary” throughout the interview, helped determine that the interview qualified as an official duty of the HUD Secretary.

But after roughly seven minutes, Couric said to Castro, “Mr. Secretary, let’s move on to politics,” and asked Castro about his endorsement of Clinton.

Castro responded by saying, “now taking off my HUD hat for a second and just speaking individually, it is very clear that Hillary Clinton is the most experienced, thoughtful, and prepared candidate for president that we have this year.”

During the interview, Castro went on to discuss Clinton’s achievements as Secretary of State, her prospect and potential as president, as well as criticizing the Republican Party and its candidates, including soon-to-be presidential nominee Donald Trump.

According to the OSC, Couric asked Castro what made him most fearful about Donald Trump being president.

Per the OSC letter, Castro responded that “Mr. Trump is not prepared for the office of president because Mr. Trump does not understand what leadership or being president is about, or the basic functions of our government or its relationships with other countries.”

Read on.

Full GOP Convention schedule

Sigh….