Essay on Coleen Colombo and Colleagues Resist Mortgage Fraud

In my research you will find that I outlined the cause and effect of the mortgage crisis. I also speak on the falling housing prices due to the mortgage crisis and the domino effect that will be created on and for the economy. I will also speak on the foreclosure rates caused by sub-prime loans and no fall back plan to help in the case of the mortgagor defaults.

The setting for this ghost story was at Sturdivant Hall, in Selma, Alabama in the 1860’s.

For many years, the American dream has been deteriorating for several reasons. Paul Krugman, author of “Confronting Inequality,” blames the “inequality of our income distribution.” He explains how and why the differences between wages of the poor and wealthy are a major conflict in today's society. Constance M. Ruzich and A. J. Grant, authors of “Predatory Lending and the Devouring of the American Dream,” argue that the downfall of the American dream has occurred because of predatory lending acts. According to the authors, predatory lending and inequality play a very significant role in the corruption of the American dream.

     The real estate industry is thriving with approximately sixty-eight percent of all Americans being homeowners. With low interest rates, 1st time home buyer down payment assistance programs, and government funded educational opportunities (i.e. the Home Ownership Center of Greater Cincinnati), the real estate and mortgage lending industries will continue to flourish. However, there are some unethical lending practices that are threatening the housing industry as a whole.

In the gleeful times of 2005, my parents decided, like so many others, that it was time to “upgrade.” They sold our smaller home on the other side of town, which had appreciated nicely, and bought a 3700 square foot behemoth in a town with already exorbitant property taxes. My younger brother and I were thrilled to finally have a basement, our own rooms, and even a concrete basketball court in our backyard! All eight-year-old me knew was that things were going to be a whole lot more comfortable from there, and my optimistic parents seemed to think the same.

was August, and I was seven months behind on the mortgage. The house had now gone into foreclosure, and on the twenty-eighth, it was going to be auctioned. Despite what that letter said, I still trusted God to perform a miracle. That letter did not faze me a bit. My faith was solid, and nothing or any person was going to shake it. After all, I was following the direction of the Lord.

Both the company was providing loans at the lower rates which are against the regulations. The effect was they were bankrupt and there was misutilization of the investor’s money and taxpayer’s money. In the year 2010, the company held huge amount of mortgages which is more than 50% of the America’s mortgages. The effect is that they have sanctioned the loans without following the regulations and the result was that that they were bankrupt and government supported them huge amount of money and other incentives.

Burning Down the House: Mortgage Fraud and the Destruction of Residential Neighborhoods Ann Fulmer March 2010

Within the past three to four years, the United States has seen the dramatic collapse of the housing market. The housing bubble spurred by ill-advised loans to individuals who could not afford a mortgage, complicated contracts which had interest rates and payments changing without reason, and the mass purchasing of bad loans by lending superpowers, had popped. The rapid increase in the value of homes across the country for the previous decade, had been a falsity, in which billions of dollars funded by investments and home purchases were lost within a few months (Wikipedia.org: United States housing bubble). Millions of home owners were found to be unable to pay their mortgages, leading to hundreds of thousands of foreclosures. These

As the saying goes, history repeats itself. The Great Depression is a time in American history that will always be remembered as a time of hardship in Americans’ lives. The goal: to never have such great oppression exist in the United States again. With the way the economy is headed today, many people are skeptical as to whether history will really repeat itself and create a new Depression. One of the biggest problems in the country today is the foreclosure crisis. Many Americans are living outside of their means or have lost their jobs and are unable to make their mortgage payments. When people can’t make their mortgage payments, they will lose their home and their family will be out on the streets. There are definite changes that need to

The solution to the Foreclosure Crisis is the implementation of continual, mandatory education classes that must be attended and passed, or penalties will be applied to the homeowners. A little tough love from the lender and the government is necessary. Just as our parents follow through and continue to teach us throughout our lives, so must the lenders and the government take the time to “sit” every homeowner down to make them learn and realize that being a homeowner comes with big responsibilities. Whether people are just on the verge of purchasing their homes or their foot is already close to stepping into the state of foreclosure, lenders and the government must take the time to really educate people about the responsibilities and

With the awareness of the mortgage fraud epidemic. Along with the public knowledge of this fraud. It has been a known fact for at least 10 years. This is just one more of many reasons to cite probable cause.

Lee Bentley Farkas, former chairman and owner of Taylor, Bean and Whitaker, a privately owned mortgage company, was arrested for an orchestrated $2.9 billion fraud scheme which ended one of the, at the time, top banks in the country. Over the course eight years according to Australian Banking & Finance, Farkas and co-conspirators "cover[ed] up diversions of funds by sending false information to Deutsche Bank, BNP Paribas, and other financial institution investors." Which altogether allowed them to abscond with millions while terminating Colonial Bank and TBW respectively, with millions in debt and overdrafts between the years 2001 to 2009 (Nemeroff, 2011). He used this money personally to afford a large home in Florida and a collection of over a dozen sports cars and other extravagant expenses during this period.

Since the housing market bust, there has been an explosion in the number of federal investigation of mortgage fraud scheme across the country. Mortgage Fraud is a violation of state and

* In the case with Coleen Colombo and colleagues resisting mortgage fraud there is evident of fight or flight present. When our fight or flight system is activated, we tend to perceive everything in our environment as a possible threat to our survival. By its very nature, the fight or flight system bypasses our rational mind—where our more well thought out beliefs exist—and moves us into "attack" mode. This state of alert causes us to perceive almost everything in our world as a possible threat to our survival. As such, we tend to see everyone and everything as a possible enemy. Like airport security during a terrorist threat, we are on the