Justice Indicts No One in Subprime Mortgage Crisis. Warren Ballentine Indicted.

Justice Indicts No One in Subprime Mortgage Crisis. Warren Ballentine Indicted.

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Yesterday, popular radio host Warren Ballentine, was indicted for what the Department of Justice is calling a “scheme”.  When Andre Michael Eggelletion, a frequent host fill-in, hosted Ballentine’s show today — and didn’t mention him.

Anyone remember the subprime mortgage crisis that crashed the American economy? It erased 30 years of wealth in the Black community.  Between 2004 and 2006, the use of low quality adjustable rate subprime mortgages skyrocketed from 8% to 20% from 2004 to 2006 — African Americans were targeted for the loans. (read NYT piece). The NAACP sued Wells Fargo on that point.  In 2010, there were one million foreclosures.

The Chicago Defender reported that, “Warren Ballentine… is accused of engaging in two mortgage fraud schemes that bilked lenders out of approximately $9.7 million,” according to the U.S. Attorney’s Office in Chicago.

Did the U.S. Attorney say $9 million? The New York Times reported in 2008 that the International Monetary Fund estimated that, “financial losses stemming from the U.S. mortgage crisis might approach $1 trillion.”

Have there been big fraud settlements forged by the Department of Justice? Yes. But no individual has been indicted or been convicted or held personally responsible and gone to jail. Not one person.

“In order to have a true deterrent impact, individuals must be indicted,” said Andrew Stoltmann, a securities lawyer and advocate, to Fox News.

When the Department of Justice went after Wells Fargo no leaders at the company were individually charged.  Wells Fargo settled the case for $175 million.

The U.S. Attorney said it was a case of, “yet another major bank has engaged in a longstanding and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient backstop of government insurance,” U.S. Attorney Preet Bharara said in a statement.

“In each case, the banks were accused of knowingly approving risky home loans on a huge scale because it was profitable to do so at the time and because the banks making the loans wouldn’t have to guarantee them should the borrowers eventually default,” Fox Business reported.  But Warren Ballentine was indicted yesterday.

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LAUREN VICTORIA BURKE, Politic365 Managing Editor, publishes the blog Crewof42 on Black members of Congress.  She can be heard every Tuesday on the radio on The Earl Ingram Show at 4 p.m. EST. Ms. Burke has enjoyed employment with USAToday.com and ABC News and holds a B.A. in history from The American University. Contact: LBurke007@gmail.com.  Twitter: @Crewof42.

 

 

 

4 COMMENTS

  1. […] “There are DAs out there squeezing ordinary citizens and sometimes taking them to trial,” Warren further pointed out.  Of course this is interesting in light if the fact that the banks have been given the privilege of settling cases financially instead of individuals having to answer questions in court.  It’s also interesting after the indictment of Warren Ballentine. […]

    • Where are all the Truthfighters? Truthfighters rise up. We all know what this is. That’s why Black folks are always afraid to speak the truth to power. There seems to always be an attempt to discredit that person. And all too often Black folks that the trooper was fighting on behalf of sit back on the sidelines and do nothing and offer nothing.

      Real Estate professionals know that lawyers who close home loans have nothing at all to do with the approval process, appraisals, credit scores, creditworthiness (or not) of the borrowers. Banks send the paperwork to the attorney to have the borrower sign off on generally a day before closing or many times the same day.
      The attorneys make sure the title is clear and get paid a measly 400.00 to 500.00 to fulfill this task.

      You can bribe the banker, loan officer, appraiser, realtors, mortgage broker and offer them kickbacks as these are the ones that causes loans to be approved and ultimately funded. The closing attorney gets the paperwork and loan funds to distribute after fact.

      Warren Ballentine is a stand up guy and Truthfighters need to stand up for. Don’t be silent. Lets get the truthfighter Defense Fund going. They raised over a quarter million to defend the dude that killed Trayvon.
      We ought to be able to at least match that in 30 days. Come on Guys. Lets stand up for a change. Let’s add our money with our prayers like Cornelious did.

      Let’s go Truthfighter ! Start that Dog Gone Defense Fund!

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