Stand Up to Banking - The Big Thumb Press on the Economy
The economic crisis was well planned out for the rainy day "catch". Big Banks sat around hundreds of round tables discussing for years how to reel in the biggest dollars, real estate and profits. Those profits are a result of interest rates, reselling real estate, government funded corporate injections, forced insurance, and many other well sold programs.
IT'S TIME TO CORRECT THE DAMAGE DONE BY BANKS.
Stand UP and Stand NOW. Stand Together and Stand Steadfast. Banks Big Thumb Press on the economy needs to be pricked.
We the consumers have been at the mercy of banks for the past 20 years while they corrupted the good intentions of systems which were put into place to increase the living standards for consumers.
The corrupt CEO's and CFO's of these institutions calculated how to make it rich on the backs of innocent consumers. They hired and trained expert sales persons in the industry to extract every cent possible from the consumer. They even devised a long term plan to strike it rich in the housing market.
This housing market plan included long meetings about convincing the average consumer that Adjustable Rate Mortgages was a good thing and to be frivolous about refinancing. To refinance the same debt multiple times was to become a "good thing".
These sales people were instructed to blindside consumers about the lost contributions towards interest payments on home loans, the and cost incurred for closing a loan including mortgage points, bank fees, ans closing fees.
What has happened to our economy was premeditated by the CEO's and CFO's of these banks. Do not allow yourself to believe that any major corporation would not have a well thought out plan for Adjustable Rate Mortgages, Credit Card Balances, and Real Estate.
The economic crisis was well planned out for the rainy day "catch". Big Banks sat around hundreds of round table discussions for years on topics such as how to reel in the biggest dollars, real estate and profits. Those profits are a result of interest rates, reselling real estate, government funded corporate injections, forced insurance, and many other well sold programs.
Over that past 20 years banks have been trying separately to get a piece of the money pie from insurance sales, escrow, real estate sales, but, the government had blocked them using RESPA and Arms Length Transaction rules. Rules had always been that you could only be employed by one "Broker" at a time. Broker meaning Mortgage, Insurance, Real Estate. You could not be employed by an insurance Broker and a Mortgage Broker at the same time.
Wells Fargo Bank denied owning Wells Fargo Financial (sub-prime division), and America's Servicing Company. They did this because of the thousands of consumer complaints received for ripping consumers off. Reference: http://hubpages.com/hub/ASC-Mortgage-Foreclosures
The hard sell from seasoned sales people that were trained to get the highest amount of profit from the consumer are at fault for the economic melt down as much as the banks and brokers that employed them. These are the people that convinced the consumer that their signature on those same contracts was in the "best or their interest".
These were the "experts" in finance that were advising the consumers that they were getting a well thought out deal. Some of the selling points from those "experts" were "you could pay very little per month and at the end of the term either sell your home for the equity and reinvest the equity into another home or refinance again".
These words are not the same as an "expert warning the consumer" that at the end of the term that available interest rates may be significantly higher and the monthly payment may not be affordable. Nor is it the same as stating that selling a home may take a year and they would need to pre-plan the sale at year 4 of the 5 year ARM.
By year 5 of the ARM the average consumer paid $96,000 in interest. The principal payments would not begin to be paid until year 7. The bank gained $96,000 in interest payments prior to taking back the real estate and reselling it to the next consumer. The credit rating of the consumer takes a serious plunge for losing their home back to the same "expert sales people" that sold them the loan package.
More bank employed "expert sales people" sold these same consumers low interest rate credit cards. Those credit cards after the high lines of credit were at sufficient balances the interest rates went up to 43%. The monthly payments skyrocketed from $68 per month to $250, and in some instances from $250 per month to a $1600 monthly payment for the credit card.
There are hundreds of complaints online about banks not recieving neccessary documents such as proof of insurance. These classified "not recieved" documents are noted as forwarded several times by mail, and fax to the banking institutions. The banks force thier own insurance onto the consumer at a cost 10 times the cost of normal insurance and the forced insurance does not cover any of the required components that the state demands. Basically the consumer is being forced to pay the high cost of an unusable insurance that does not meet state standards while the consumer is already insured and has provided proof on more than one occaission.
Ecrow companies are losing money too. Under RESPA a home buyer selects the escrow closing company. Today the banks are the owners of the real estate and are controlling the closing at their selected locations and the title insurance is set by the banks. The consumer is not protected any longer as they do not have control over the selection of escrow or the cost of closing. Additional fees are charged to the consumer for "curtesy closings".
Banks are also affecting the local business owner. The suppliers are providing goods on credit as usual to contractors to install at construction job sites. The contractor bills the general contractor for the materials and those reciepts are provided to the banks for reimbursement from the loan monies. Today, banks are not paying for materials until they are installed. Most materials that are installed in a construction project are ordered from the manufacturer and require a cash deposit to begin the order. The order for materials takes up to 12 weeks to recieve from the manufacturer to the job site. Installation timing is determined by the progress at the job site. Delays in installation is determined by city or county inspectors, weather, other coordinating sub-contractor duties, and unforeseen problems.
The manufacturer requires the balance of the debt to be paid within 30 days of ship date. Normally banks pay these reciepts when they are recieved. Today banks are not paying these reciepts until the materials are installed. This can be 60 days after the materials are shipped to the job site, sometimes longer. The manufacturer charges a fee per month for unpaid balances. These fees can be as much as 10% of the outstanding balance. The supplies most commonly that fit this catagory are storefront and window materials, HVAC units and supplies, electrical and lights, plumbing supplies, flooring, awnings and other special materials. Additional costs to the contractors and to the project Owner skyrocket as these receipts can be as much as $178,000 each plus monthly interest.
Our tax dollars are paying to banks Bail Out Money and money to Not Lend Money to Consumers. Bloomberg News Service Report discussed by Cleveland U.S Congressman Dennis Kucinich with Neil M. Barofsky, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) link to www.youtube.com.
Wells Fargo paid Prime Loan Offers for referring prime loan qualifying consumers for Sub-Prime consumer loans so that they could make additional money. Sub-Prime Loans yield higher income to the Loan Offices from the amount of Points, the payment from selling higher interest loans, and the opportunity of refinancing the loan in a short period of time. CFO denied that Wells Fargo performed the Sub-Prime divisions. Watch Elizabeth Jacobson former Loan Officer for Wells Fargo : http://www.youtube.com/watch?v=SA0f6jvFE0g
Overdraft fees is another way of strangling the consumer financially. Banks have devised ways to cause a consumer to be overdrafted. One prominent way is to delay the credit of deposited funds. The banks have a way to automatically check for fund availability if the funds are coming from a major or national bank. A second source is through the Online Banking where the Online source is an accounting system which can calculate balances in your account. The Online Banking system can mail out checks when there is insuficient funds available. The bank will charge you an Over Draft fee for the check thier own system approved for delivery which will go unpaid after arrival.
These banks will never reverse the serious damage to the consumers Credit Bureau Report. This damage will cost the consumer thousands of dollars over the next 7 to 13 years.
Stand-UP for the Consumer. Picket companies like Wells Fargo Bank and Wells Fargo Financial. Organize Fund Pull Outs and invest in Credit Unions.
The only way to get these corporations to hear the consumer is to cause the staff to place several phone calls to their corporate office. These phone calls will reach those persons that you never get a chance to talk to.
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