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Figures speak and it is an undeniable fact that the Latinos have been badly mauled by foreclosures. Research is being undertaken to find out why this is so. The leaders of the Hispanics were greatly taken up with the idea that the sub-prime mortgage route would allow the Latinos to realize their dreams of owning a house. For this they were actively involved with the mortgage giants.
Rep Joe Baca of the Hispanic Caucus received donations for a charitable foundation he had set up from AmericDream that would help borrowers to bypass the problem of down payment. Later a new law cancelled this programme. But Baca is co-sponsoring another bill that will allow resumption of similar operations for those low-income borrowers taking loan from FHA programmes. The default rate of those who have taken these loans have tripled.
AmeriDream in a news release stated that the donation to Baca’s foundation was meant for the fire fighting purchases of his district. According to a report from the local news agency it is stated that the donations ($36,000) were meant for scholarships.
It is gathered from the records of Internal Revenue Service that Joe Baca Jr. has a yearly salary of $51,800 for being the director of his father’s foundation – Joe Baca Foundation. The operations are carried out from the residence of the Congressman. Joe Baca Jr. protested that he has been collecting only half the salary. The office of Rep. Joe Baca declined to comment on the contributions of AmeriDream.
Baca continues to strongly oppose the introduction of stringent mortgage lending rules. He explained, “We need to keep credit easily accessible to our minority communities.”
The maximum number of loans was made to Hispanics from 2004 to 2007 – most of these being non-prime loans. 2005 saw the largest jump in numbers. There was 169% spike in non-prime mortgages with Hispanics getting a larger share than the blacks (122%). It was a 110% increase for the whites. The non-prime loans carry high interest and are specifically created to suit those with low income and low credit scores.
The brokers were pivotal to the spreading of these loans to the Latinos. Most of them were Latinos. They were recruited by hundreds by Countrywide and others to sell the loans by hook or by crook. When asked Countrywide was not available for comments.
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One Response
AmeriDream’s donation to the Joe Baca Foundation did not go to scholarships. It went to fire fighting equipment for southern California firefighters at a time when 18,000 acres and homes had been burned. To view a photo the firefighting equipment being delivered to the firefighters, visit this link: http://www.ameridream.org/Newsroom/PressReleases/2008/AmeriDream-aids-California-firefighting-efforts. AmeriDream has a long history of helping communities in their time of need and has made donations to causes such as flood victim assistance in North Carolina and Virginia and to the victims of the Washington, DC-area sniper attacks in 2002.