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Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work. |
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#1
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OT- Wallstreet scam to securitize private property
WASHINGTON - How about this for a new and ingenious real estate money
machine: Every time a house sells during the next 99 years, 1 percent of the price goes back to the original developer or is shared among investor partners. Ka-ching!!! The levy won't be subject to haggling between future buyers and sellers, either. That's because it's a covenanted mandate - a novel type of lien on the underlying real estate - called a private transfer fee. It's not a government transfer tax. Nor is it a homeowner association or environmental protection covenant. It's purely a private requirement that runs with the land. If a seller refuses to pay it to a third-party trustee at closing, the sale won't proceed. Sounds like a great deal - provided you're on the collecting end of a near-perpetual revenue stream. Apparently the idea has been attractive enough so that substantial numbers of developers and builders are signing up with a New York-based company that has devised what it calls a "patent-pending" system to tap into real estate transactions well into the next century. Manhattan-based Freehold Capital Partners declines to identify any clients or participants in its private transfer fee program, but claims on its Web site that as of late 2009, "the owners of an estimated $488 billion in real estate projects nationwide, including some of the country's largest, most well-respected companies, have partnered with Freehold." The company says it is negotiating with institutional investors to "securitize" pools of transfer fees - essentially creating bonds based on future cash flows that can be sold to deep-pocket money managers. By creating future revenue streams - which builders can "monetize" upfront by selling to investors for cash - the plan allows developers to sell houses for lower prices than they otherwise could. http://www.dailyherald.com/story/?id=363252 Best Regards Tom. |
#2
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OT- Wallstreet scam to securitize private property
On Fri, 5 Mar 2010 16:19:07 -0800, "azotic"
wrote: WASHINGTON - How about this for a new and ingenious real estate money machine: Every time a house sells during the next 99 years, 1 percent of the price goes back to the original developer or is shared among investor partners. Ka-ching!!! snip http://www.dailyherald.com/story/?id=363252 Best Regards Tom. =========== Thanks for the heads up. It is worth noting that this story appears to have been "broken" by an obscure suburban Illinois paper rather than one of the majors or a wire service. Was this another example of a "spike" at the request of a major advertiser? Where was the WSJ, Bloomberg and CNBC? ==Everyone that pays federal taxes has a dog in this fight. The tax deductibility for mortgage interest is a huge subsidy and tax transfer, and another bogus security is simply pouring gasoline on the financial/economic fire currently raging, which the taxpayers are spending trillions to first contain and then extinguish.== My brother is in [NW Arkansas] real estate and was unaware of this scam. As a resident of Kansas I was pleased to see that Kansas was one of 4 states that have already banned this grift. I am writing a letter to my Representative and Senators asking that the various federal agencies involved with home loans be prohibited from participating in or purchasing loans for property which include a "private" transfer fee covenant, which should put a stop to this without any expense or dictates to state governments, banks, mortgage companies, or indeed anyone. E.g. "private" transfer fee = *NO* FHA loan, etc.. As this scam seems to have already been worked in some areas, it will be necessary for Congress to enact legislation abrogating the covenanted conditions, as was done with the gold clause when the US went off the [domestic] gold standard by _The Gold Reserve Act of 1934_. An alternative would be to allow the purchaser to reascend the mortgage contract based on failure to fully disclose. An additional suggestion is that the SEC and/or CFTC be directed to prevent the creation and interstate sale of the bogus "securities" collateralized by these "private" transfer fees. It will also be suggested that the names of their associated builders and developers be subpoenaed from Freehold by Congress, and turned over to the IRS and DoJ for very careful examination. All loans involving a "private" transfer fee should also be closely examined to verify full and complete disclosure in accordance with existing regulations(_Mortgage Disclosure Improvement act of 2008_ and TILA [Truth in Lending Act]) was done. I will post a copy of my email to the NG in case anyone wants to use it as a template or even send it to their own congress persons. Freehold Capital Partners and their associated developers and builders must have a "death wish" and/or utter contempt for the American public. http://www.freeholdcapitalpartners.com/ Is it really going to require mass vigilante lynching of these scam artists to get the US economy back on track? Unka George (George McDuffee) ............................... The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953). |
#3
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OT- Wallstreet scam to securitize private property
On Sat, 06 Mar 2010 01:42:28 -0600, F. George McDuffee
wrote: snip I will post a copy of my email to the NG in case anyone wants to use it as a template or even send it to their own congress persons. snip As promised here is the email I sent to my congresspersons. Feel free to use all, some, or none of it. You can identify your congresspeople and access their webmail at http://house.gov/ http://senate.gov/ FWIW -- after you locate their webmail page, bookmark it for easy future access. [An opinion is a terrible thing to waste...] ============ AT THE END OF THE DAY, WILL THE AMERICAN PEOPLE HAVE TO RESORT TO MASS LYNCHINGS TO GET THE U.S. ECONOMY AND FINANCES "BACK ON TRACK?" Ref: http://www.dailyherald.com/story/?id=363252 Private' transfer fee on home sales can be long-term money machine By Ken Harney | Columnist Published: 3/5/2010 12:00 AM WASHINGTON - How about this for a new and ingenious real estate money machine: Every time a house sells during the next 99 years, 1 percent of the price goes back to the original developer or is shared among investor partners. Ka-ching!!! snip Manhattan-based Freehold Capital Partners declines to identify any clients or participants in its private transfer fee program, but claims on its Web site that as of late 2009, "the owners of an estimated $488 billion in real estate projects nationwide, including some of the country's largest, most well-respected companies, have partnered with Freehold." The company says it is negotiating with institutional investors to "securitize" pools of transfer fees - essentially creating bonds based on future cash flows that can be sold to deep-pocket money managers. snip ----- There are many disturbing things about this article, but one of the most unsettling is that this very important episode was not broken by one of the major financial media such as the Wall Street Journal, Bloomberg, CNBC, Forbes, etc. or one of the financial pundits, but rather by a good journeyman reporter on a small suburban Chicago paper. It also does not appear that any of the regulatory agencies such as the SEC, CFTC and the myriad of governmental agencies involved with real estate finance were even aware of this latest financial flim-flam. EVERY PERSON THAT PAYS FEDERAL TAXES HAS "A DOG IN *THIS* FIGHT." * First, the mortgage interest tax deduction is one of the largest subsidy [tax transfer] programs benefiting both the homeowners and more importantly, the lenders. * Second, and possibly more important, are the trillions of taxpayer dollars that have been spent, with trillions more committed, to first contain and then extinguishing the financial conflagration that is consuming the American, indeed global, economy. What we have here is an effort on the one hand to hijack, by trick or deceit, 1% of the residential sale price for 99 years. This is bad enough, but new collateralized securities backed by these revenues [CDOs] are to be created and sold. Operationally we have robbery and embezzlement on the one hand and arson on the other, as these new "securities" will simply pour more gasoline on the currently raging economic fire. It is critical that "program" be stopped as quickly as possible, before it has time to embed itself and create a political constituency. In order to avoid imposing yet more regulations and more regulators on the parties involved it is suggested that Congress immediately enact legislation that property with "private transfer fee" covenants (or other similar arrangements) are not eligible for government insured financing, mortgages on property with "private transfer fee" covenants cannot be purchased by any federal agencies, nor is the mortgage interest paid on properties with "private transfer fee" covenants tax deductible. This should stop this practice dead in its tracks. This leaves a possibly considerable problem of existing "private transfer fee" covenants. It is suggested that Congress enact legislation simply abrogating these and similar covenants. Two precedents exist for such abrogation. First, the "gold clause" was abrogated by the _The Gold Reserve Act of 1934_ when the U.S. went off the domestic gold standard. Second, racially restrictive covenants were abrogated under several civil rights statutes and court cases. One of the more pressing macro economic perils is the creation and sale of another new Collateralized Debt Obligations [CDOs], this time "backed" by the "private transfer fee" revenue stream. Because of the _CFTC Modernization Act of 2000_ these derivatives are currently exempt from government oversight. These "securities" are a fraud on the public and their creation and sale must be prevented. Legislation must be enacted prohibiting the creation and sale of these CDOs, and requiring the "unwinding" of any existing "securities" to the extent possible, with the original purchase price being refunded to the current owner. Congress should also subpoena Freehold Capital Partners http://www.freeholdcapitalpartners.com/ for the names and addresses of their "partnering" builders and developers. These names should then be forwarded to the IRS and DoJ for very close inspection of their lending and sales practices and income declarations [for possible tax evasion]. Compliance with TILA [Truth in Lending Act] and other disclosure statutes, e.g. HMDA, should also be verified, with the homeowners offered the opportunity to rescind their mortgage and other contracts if disclosure was not "full, fair and complete," and can be documented. ============ Unka George (George McDuffee) ............................... The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953). |
#4
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OT- Wallstreet scam to securitize private property
I guess I don't understand the problem - if there are conditions that you do
not wish to accept, then don't accept them - buy elsewhere, or rent. there are cities/developments where the land is held "fee simple" (if I remember the phrase correctly) which means it is on a 99 year lease or some equivalent, starting when it was first sold - I just plain refused to look at those properties, and therefore live elsewhere. If this was mandated nationally, then it could be an issue, but if it relates to single developments, then it's not an issue. " |
#5
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OT- Wallstreet scam to securitize private property
On Sat, 6 Mar 2010 15:02:18 -0800, "Bill Noble"
wrote: I guess I don't understand the problem - if there are conditions that you do not wish to accept, then don't accept them - buy elsewhere, or rent. there are cities/developments where the land is held "fee simple" (if I remember the phrase correctly) which means it is on a 99 year lease or some equivalent, starting when it was first sold - I just plain refused to look at those properties, and therefore live elsewhere. If this was mandated nationally, then it could be an issue, but if it relates to single developments, then it's not an issue. ============ As a buyer you have to be aware of the conditions and what these conditions imply. This is where many of the sub prime/NINJA mortgages went off the rails as the borrowers did not understand the ramifications of what they were signing. In [too] many cases it appears the contracts and "disclosure" forms were designed to be as confusing as possible. Indeed, large numbers of these contracts are being adjudicated between some very savvy lawyers to determine exactly "what is is." If this only effected the borrowers and their lenders, in a Darwinian/Spencerian sense you could say they made their bed, now they can lie in it. The insidious danger and unfortunate reality is that *ALL* US tax payers, current and future, are on the hook for the sub prime fiasco, and now this scam, in that our tax money is being used, first to subsidize these mortgages through the mortgage interest tax deduction, and then to bail out the mortgage companies/agencies, e.g. Freddie and Fannie, after the responsible individuals have "taken the money and run." If you own a home in a neighborhood with a significant number of foreclosures or "walkaways," the value of your house has take a big hit from this also. The second point of danger to the community is the creation and sale of yet another class of "vapor ware" CDO derivatives, this time based on the expected revenue streams from the "private transfer fees." Remember that because of the initial high yields and likely AAA ratings, you (or your neighbors') pension fund [think CALPERS] and life insurance company will be loading up on this crap, just as they did on the subprime/NINJA ARM backed CDOs. Even if you individually never touch any of this "stuff," as a taxpayer youwill still be on the hook, through the federal governmental backing of the pension funds via the PBGC, and the state insurance guarantee funds. Even if the PBGC and insurance guarantee funds do not have to tap their treasury credit lines, because of the additional levies on the solvent plans and companies, the benefits will be reduced and the premiums increased. Unka George (George McDuffee) ............................... The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953). |
#6
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OT- Wallstreet scam to securitize private property
"Bill Noble" wrote in message ... I guess I don't understand the problem - if there are conditions that you do not wish to accept, then don't accept them - buy elsewhere, or rent. there are cities/developments where the land is held "fee simple" (if I remember the phrase correctly) which means it is on a 99 year lease or some equivalent, starting when it was first sold - I just plain refused to look at those properties, and therefore live elsewhere. If this was mandated nationally, then it could be an issue, but if it relates to single developments, then it's not an issue. " The problem is it will become a mandate when they have enough $$$$ to buy legistlative action just like the HOA industry did. Given enough time it will be impossible to find any property that is unencombered if they get thier way. Thier goal is to eventually place covennants on all property. As George pointed out there is lots of room for fraud. Best Regards Tom. |
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