50 million current U.S. homeowners pay a much higher monthly mortgage payment because a bank or mortgage banker was not required to disclose a huge kick back called a yield spread premium for giving the consumer a higher interest rate/monthly mortgage payment and Congress has done nothing?
Washington, DC (PRWEB) July 7, 2008
In 2005 Americas Watchdog was warning of a U.S. economic train wreck if the banks and mortgage bankers including U.S. home builders continued to offer consumers insane mortgage products like the pay option adjustable rate mortgage, and inflated real estate appraisals. The group's concern was that at some point the real estate bubble would explode, wreaking havoc on the U.S. economy. However, Americas Watchdog never calculated that oil would possibly hit $140, in the midst of what they had been predicting to be the worst U.S. economic crisis since the great depression.
Now the group is telling U.S. pension funds to carefully examine their real estate portfolios also called mortgage backed securities, and prepare for a new flood of foreclosures in 2008, that will get much worse in 2009 because consumers cannot afford a big mortgage payment with hyper inflation brought on by $140+ per barrel oil. Americas Watchdog is also pointing a finger at U.S. Mutual Funds for foolishly putting at risk millions of U.S. citizen's retirement accounts with investments, that continue to this day, to be heavily weighted towards financial sectors, or other sectors that would be at extreme risk during a severe U.S. economic downturn.
The Bad Guys:
According to Americas Watchdog, the current U.S. Congress was supposed to be looking out for the tax payer, instead they elected to take campaign donations. As an example, Senator Chris Dodd (D), of the U.S. Senate Banking Committee, was just caught taking a special mortgage deal from one of the more notorious U.S. mortgage lenders (Countrywide Home Loans). Americas Watchdog is demanding that the Senator Dodd step down immediately from the U.S. Senate Banking Committee. Americas Watchdog is also demanding that the U.S. Senate and U.S. Congress immediately enact transparent legislation related to U.S. banks and mortgage bankers having to disclose a huge kick back called a yield spread premium.
Americas Watchdog estimates, "50 million current U.S. homeowners pay a much higher monthly mortgage payment because a bank or mortgage banker was not required to disclose a huge kick back called a yield spread premium for giving the consumer a higher interest rate/monthly mortgage payment and Congress has done nothing?"
U.S. Real Estate: Currently one in seven U.S. homeowners owes more on their home that it is worth. According to Americas Watchdog's National Mortgage Complaint Center, "With the price of oil at $140+ and resulting inflation, it is likely that by mid-2009 one in four U.S. homeowners will owe more on their homes that they are worth. Because of this, we think millions of U.S. homeowners currently struggling to make their mortgage payment, will be forced to walk away from their current home, just to be able to pay more critical bills like food, and fuel costs."
With record numbers of new U.S. foreclosures, the National Mortgage Complaint Center is expecting an additional decline of U.S. home values of 15% (minimum) through the end of 2009. As a result, the National Mortgage Complaint Center expects national and regional bank failures. Visit http://NationalMortgageComplaintCenter.com for more info.
According to Americas Watchdog, "U.S. Pension funds are at extreme risk because Wall Street investment bankers colluded with Wall Street rating agencies to sell U.S. pension funds garbage mortgage backed securities that were at best worth $0.70 cents on the dollar."
Note: Securities Class Action Law Firms representing pension funds or shareholders are welcome to call Americas Watchdog at anytime for specifics at 866-714-6466. According to Americas Watchdog, the bad guys are:
- Wall Street investment bankers
- U.S. home builders
- U.S. banks
- Pension fund advisers also known as wall street investment bankers
- U.S. title insurance companies
- Private mortgage insurance firms that did no due diligence with respect to what they were insuring
- Any U.S. bank or mortgage banker that sold a pay option adjustable rate mortgage/no doc mortgage
Americas Watchdog considers the negligence of U.S. Mutual Fund managers to be criminal. According to Americas Watchdog, "If we could see the U.S. real estate disaster coming in 2005, where were the U.S. pension fund advisers? Why did they continue to have 30% of many funds in U.S. financial type stocks?"
Americas Watchdog is recommending that all U.S. holders of mutual funds get out of any fund that has exposure to the U.S. financial sector, retail, or other non energy sectors, which could have risk in a very deep recession or worse. The group is also calling on securities class action law firms to work with them on a national review of all U.S. Mutual Funds, because of the sheer size of the negligence on the part of mutual fund managers.
"Its an election year, so both U.S. political parties are lying through their teeth about the severity of of the U.S. economic crisis. As an example on the July 3, U.S. Treasury Secretary Henry Paulson said that, 'the U.S. economy would most likely be stronger at the end of 2008, even as oil prices surged to new records above $146.'" Americas Watchdog is calling U.S. Treasury Secretary Paulson "a self serving liar." At the same conference in London he was discussing the collapse of U.S. financial institutions.
Americas Watchdog is advising all U.S. consumers to get ready for a very bleak economic reality. The group feels it is vital for U.S. consumers to take precautions and think about it, before incurring any more debt or financial obligations. Law firms wishing to know more about Americas Watchdog's mortgage, mutual fund, pension fund or other investigations are welcome to call the group anytime at 866-714-6466. Americas Watchdog's Corporate Whistle Blower Web site is located at http://AmericasWatchdog.com.
Americas Watchdog is all about consumer protection and corporate responsibility.