After running a campaign where he promised to represent the working person, Rep. Larry Kissell voted for the banking industry by opposing H.R. 1106. He was not joined in his opposition to the legislation by any other North Carolina Democrat. Republican Walter Jones joined Democrats in voting to help the vast majority of families who are near foreclosure as a result of unemployment, personal or family illness, divorce, death in the family or fraud on the part of banks.
The Center for Responsible Lending released numbers for every state showing the minimal number of mortgages that this legislation applies to. Certainly not enough to punish the rest of us and absolutely not enough of a caseload to bankrupt the already bankrupt banks.
With their votes, Foxx, Coble, Kissell, Myrick and McHenry turned their backs on the thousands of people who did the right thing and are still facing foreclosures. With their votes, these North Carolina Representatives gave cover to the banking/mortgage industry and the greed that drives it. With their votes they gave cover to the following criminals:
Eight mortgage brokers charged with fraud in Greensboro in 2004
Six mortgage brokers and 15 coconspirators are sentenced for multiple counts of mortgage fraud.
Fayetteville mortgage broker pleads guilty to fraud 2008.
Fayetteville Mortgage Broker Pleads Guilty 2009
Mortgage broker pleads guilty to 21 counts of fraud - admits to hundreds 2009.
There are many more cases in this state, but let's look at the case listed above from 2007. From the FBI report:
Mortgage fraud poses a significant concern for federally insured and uninsured lenders. Mortgage fraud also threatens the well-being of neighborhoods when fraud leads to mass foreclosures and reduced property values. Since 2002 in the Western District of North Carolina, lenders and homeowners have suffered tremendous losses in association with mortgage fraud schemes. A number of these schemes have been derailed and exposed by law enforcement authorities. Mortgage fraud is generally defined as fraudulent schemes involving the submission of false information to lenders and others in order to obtain mortgage loans that would not otherwise legitimately be approved. Such schemes also include the creation of fraudulent loan documents in order to obtain loans at higher values and lower rates than would be legitimately available. These schemes employ various professionals such as recruiters (promoters), attorneys, appraisers, mortgage brokers, and builders who conspire together to successfully execute the fraud scheme. For example, a buyer or investor (potential victim) is recruited. A set of falsified loan application documents is prepared and submitted in which the lender (potential victim) is provided with an overvalued appraisal of the property and an overvalued loan is approved. Ultimately the property forecloses due to the inability of the original buyer or investor to make the payments, and the lender is left to suffer the loss. In the meantime, the conspirators who worked together to execute the scheme have appropriated the difference between the overvalued loan and the actual value of the property. These figures, given current property values, soon reach into multi- millions of dollars.
Do you notice that even in this FBI press release they list the buyer or investor as the potential victim? So, Foxx, Coble, Kissell, Myrick and McHenry are willing to punish the victims of mortgage fraud. And from the evidence I'm finding, there are quite a few victims out there. Nice.