The financial elite - the forces that plunged the global economy into catastrophic crisis in 2008 - is being offered another means of profiting from their crimes by Edward DeMarco, acting head of the Federal Housing Finance Administration which oversees Fannie Mae and Freddie Mac, the giant government-backed mortgage holders. The largest investment and hedge funds - at the expense of desperate home owners - are being offered a cut-rate deal on foreclosed properties. You have to be among the inner circles of multi-millionaires and billionaires to get in on this deal.
Many concerned consumer and public interest advocates are petitioning that FHFA chief Edward De Marco must be replaced. DeMarco should be replaced, but the pressing and immediate larger issue is stopping any FHFA plan - under DeMarco or a possible successor - to bundle and sell off foreclosed homes to financial speculators, while the FHFA is refusing major principal reduction to struggling home-owners. The foreclosed properties will be offered to Wall Street hedge funds and mega–investors in bundles of 1,000 to 10,000 homes, requiring investments of as much as $1,000,000,000.00.
With this program the government is eliminating individual home-owners, small investors and real estate professionals from the market and is divesting the struggling home-owner from any future market appreciation. The result will be an increase in inequality and a new feudal society where the Wall Street hedge funds become modern day Land Barons, controlling a huge segment of the rental and housing market. It is imperative for the Obama administration to put a halt to this insider trading and make every effort to keep homeowners in their homes.
We are asking the Obama adminstration to place an immediate moratorium on foreclosure or property sales by Fannie Mae, Freddie Mac and the FHA - along the lines being proposed by California Attorney General Kamala Harris - until a more egalitarian alternative to the DeMarco scam can be implemented.
Do not turn our homes into another pork-barrel for the ultra-elite 1%!
Petition to be delivered to: President Barack Obama, The United States Senate and The United States House of Representatives.Selected rich Wall Street investors are poised to grab millions of foreclosed homes owned by Fannie Mae, Freddie Mac, and the FHA.
For pennies on the dollar, these selected investors and insiders can acquire thousands of homes bundled together at a discount, turn them into rental properties and when the market recovers, flip them for huge profits. And also make money from rental income as they bide their time.
A backroom deal has been negotiated and the “pilot round” was announced Feb. 1. The pilot program is designed only for the super wealthy, ignoring thousands of public comments petitioning for a more equitable approach.
This next great wealth grab will move even more money and assets to the 1 percent. Estimates are that federal agencies will soon own 1.4 million homes, with another 2 million estimated to be in late stage delinquencies. That’s 3.4 million homes.
Wall Street bankers and Hedge Funds got rich while creating the biggest housing crisis in history. Then they were bailed out. Now they want more.
Tell President Obama: Do not let Wall Street get richer while they destroy the middle class. Stop the next great wealth grab!
As an example of how the DeMarco scam works, follow these sample numbers: the investors purchase homes for 30% of the value. The Census Bureau says the average home value in the US is $273,000. So these investors will pay about $82,000 per foreclosed home. They are grabbing $191,000 per average house. Multiplied by the projected 3.4 million foreclosed homes under Fannie, Freddie and the FHA, that equals $649 Billion in wealth. That’s $649,000,000,000 in private gains by hedge funds and the 1% to “help out” government-backed Fannie Mae, Freddie Mac, and the FHA in getting these properties off their books.
This wealth belongs to U.S. citizens who pay for these public entities and if we do not stop it, we will have another one of the greatest transfers of wealth ever from the public to the private sector.
We need to STOP the next great wealth grab.
Sign the petition HERE!
ALSO call or write the White House and your Elected Representatives.
Tell them: "Dump Federal Housing Finance Administraion chief Ed DeMarco and stop the 'Fannie and Freddie' plan to sell off bundles of foreclosed homes to giant investment funds benefiting Wall Street and the 1%. Place a moratorium on foreclosures. Shift the focus of government-backed Fannie Mae and Freddie Mac to principal reduction and modified loans for struggling homeowners. Keep our families in their homes!"
Phone the White House at 202-456-1111 and E-Mail the President HERE.
Additional contact information for your elected representatives HERE.
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