I just wrote Rep. Hoyer, Sen. Mikulski and Sen. Cardin about the "bailout": Dear Representative Hoyer, I am deeply troubled by the proposed financial bailout program because it does not address the real problem -- government mandated granting of subprime mortgages to poor credit risks, many of whom were illegal aliens. Until that irresponsible, politically motivated and corrupt policy is ended, our mortgage markets cannot be stabilized and our entire financial system (and thus the world financial system) is at risk. The policy of subsidizing mortgages for illegal aliens is based on flawed reasoning. On the one hand we pretend to want to help the poor achieve "the American Dream" so badly that we are willing to coerce the mortgage banking system into making high risk loans. On the other we support massive immigration, including illegal immigration, which harshly undermines the income of virtually all Americans, but particularly the poor. The government encouraged fraud by allowing illegal aliens to obtain mortgages without social security numbers, proof of employment, or proof of legal residence, all of which are required of poor US citizen borrowers.
To restore stability to our financial system, you must end the subprime mortgage addiction completely, and then take critical steps to address other weaknesses in our financial system. I favor a phased approach to achieve a more stable financial system. The first phase should focus entirely on fixing the subprime mortgage mess. The following steps are necessary to achieve this:
1. Repeal the Community Reinvestment Act of 1977.
2. Eliminate government-sanctioned involvement of radical special interest "community groups" such as ACORN, and ethnic interest groups such as La RAZA, LULAC, etc. in the home loan sector and deny them federal funding.
3. Eliminate government-dictated quotas for mortgage bank loans to high-risk borrowers.
4. Eliminate government funding of "community groups" and government mandated-funding for community groups by private and quasi-private mortgage financing institutions.
5. Eliminate government-mandated quotas for granting sub-prime mortgage loans by private sector and quasi-private sector (Fannie Mae & Freddie Mac) mortgage financing institutions.
6. Prohibit private and quasi-private (Freddie Mac & Fannie Mae) mortgage institutions from granting home loans to illegal aliens.
7. Pass legislation that supports the "attrition through enforcement" strategy for convincing those who are here illegally to return to their home land. Such legislation would tighten our labor markets and generate sustained higher wages for low-skill AMERICAN workers, and enable them to afford to buy homes without subsidized mortgage rates. Specifically, this requires:
--Pass a clean 5-year extension of the E-Verify legislation.
--Pass the SAVE Act.
--Pass legislation ending birthright citizenship.
--Pass legislation that unequivocally closes our borders to illegal entry.
8. Pass legislation mandating an in-depth investigation by a special multi-agency federal task force to determine whether public sector, quasi-public sector or private sector institutions and organizations, or their lobbyists have engaged in unlawful acts related to their participation in the subprime loan program.
9. Of utmost importance, the special task force must also be mandated to determine the numbers of illegal aliens that were granted subprime loans. Americans deserve to know this and need to know this to better understand the ramifications of the current crisis.
I hope we can count on you to vote NO on any bill that would mortgage the future of American citizens for trillions of tax-payer dollars without taking these immediate steps to control the subprime financial sector.
Sincerely, your constituent, Mike Hethmon
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