Mortgage crisis

Greed and gullibility

I watch in dismay and sadness as the political parties blame each other for the state of financial affairs in this great country. As a licensed mortgage broker, I have seen first hand who the real culprits are that have caused our economic calamity. The problem started from the top with the creation of stated-income mortgages, but was tragically exacerbated by the actions of the people at the bottom.

These bad mortgages began with gullible current or future homeowners that believe predatory individual loan officers who were not adequately supervised. A great majority of these transactions did not involve face-to-face counseling. The potential borrower did not scrutinize the financial responsibilities he was undertaking. Instead, the borrower listened and believed the terms pushed by a loan officer over the telephone or Internet from remote, often out-of-state locations. This loan officer was only concerned with a quick buck. He will never see these borrowers and could care less about establishing a long-term referral relationship.

I have seen tragic examples of this, with people asking me for help in refinancing. Their negative amortization mortgages were based on a stated-income that was grossly inflated to allow for quick closure. The loan officer who signed the loan application was knowingly committing fraud. The borrowers who signed the closing papers unknowingly committed fraud.

The loan officer walked away never to be seen again. The mortgage holder is left with several properties whose mortgage balance is increasing, while the property value is decreasing.

So who is primarily to blame? In my opinion it is the individual loan officer who violated the tenets of the stated-income methodology. The stated-income mortgage was intended to expedite the mortgage approval process. It was not intended to create unsavory loan officers’ deception and lies about and the borrower’s financial credentials so they could make a quick profit. Mortgage loan officers were warned about this type of financing several years ago. Only six months ago, much too late, this program was abolished by Fannie Mae and Freddie Mac. Fannie and Freddie are now owned by the U.S. government. But that is another story.

Thomas Kleehammer

Licensed mortgage broker

Poulsbo

Reader feedback

Herald shows conservative bias

First we had the Sound-Off run in place of an editorial, turns out to be from Jack Hamilton. Counties and cities evolve, things change, the good old days are never forever. Yes, there are regulations necessary, and more taxes as needs arise. After the much less than stellar example of the national Republican regime, no one should be surprised at change.

Now we’re faced with not one, but three large photos of Dino Rossi, and his denial of actions which certainly seem open to dispute. He seems to have perfected the method of fingerpointing and sliding out from behind doubtful activities. Wonder where he’s learned these tactics?

Polly S. Tarpley

Poulsbo

Herald shows liberal bias

In 2004, National Peoples Action, a militant group who garnered many of their techniques from the likes of socialist Saul Alinski and Barack Obama, amassed 200 of their ilk, along with many elementary school children, and in rented school buses, descended on the personal home of Republican strategist Karl Rove.

They trampled on his lawn, pounded on his windows and scared the daylights out of his 14-year-old daughter and her friend.

So why hasn’t your media outlet divulged the culpability of Janet Reno, Franklin Raines and other Democrats in this economic scandal? There is an obvious fulcrum to get the truth out to the public.

It’s entirely possible to “amass” 200 honest conservatives who are collectively disgusted with your paper’s obvious liberal slant, and (lawfully) bring them to the front steps of your sponsors, and the people you advertise, and most certainly, to the personal neighborhoods of Editor Celeste Cornish and Publisher Donna Etchey, to picket informationally. Of course, this should be done completely within the law, and with the appropriate county permits if necessary.

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances”.

Ironically, the first amendment protects your right to lie through omission, but it also protects my right to embarrass you in your own neighborhood … . Lawfully, of course.

Barry Clemons

Silverdale

Is GHAAC criticism fair?

I am writing with reference to the article in Saturday’s Herald (Oct. 4th) about the lawsuit filed against Kitsap County and the Greater Hansville Area Advisory Council (GHAAC).

In this article, Laurie Wiegenstein is quoted as feeling ignored and ostracized at GHAAC meetings. She seems to feel uneasy with the whole process of having an organization such as GHAAC represent the community to the Board of County Commissioners. I can see how this would be true if GHAAC just materialized out of the blue. This is not the case.

What Ms. Wiegenstein does not say is that despite numerous attempts by the community to get volunteers to step up and become involved, despite numerous news releases, mailings, and announcements on the web, she chose non-participation.

Perhaps the discomfort she experiences at meetings arises from the reaction of members to her constant remarks that appear to challenge the process, even going so far as to infer no one ever sought community involvement. There are members on the Council that have worked for five years on the planning (The Hansville Futures Project) and now on the implementation phase consisting of GHAAC and its various committees.

They don’t take kindly to someone coming in at a late date who seemingly infers that they have labored the last 4 or 5 years in vain.

People simply cannot understand why someone who never participated before feels the need to attend meetings now, questioning the validity of the planning effort and the concept of community involvement on anyone’s terms but her own.

Could this be a carefully timed and thinly veiled attempt to discredit Commissioner Bauer in an election year?

Art Ellison

Hansville

It is us vs. them in Hansville

Thank you for the Oct. 4 article about the lawsuit recently filed by John Wiegenstein and Gerald Kearney on behalf of “Citizens for Accountable Government in Eglon and Hansville” against Kitsap County and the Greater Hansville Area Advisory Council.

It is unfortunate that the GHAAC has continued to operate in an undemocratic manner even after repeated attempts by concerned citizens to express their concerns and establish a two-way dialogue with GHAAC representatives. Because the county has made GHAAC the “official voice” of the Hansville and Eglon areas it is imperative that they respect, listen to, and communicate with all of the citizens they are supposed to represent.

A democratic community, with fair governance, representation, and respect for all citizens is a right we can’t afford to lose.

Barbara Fox

Hansville

NK school board

Herald should be ashamed of coverage

We are appalled at the article (by Tara Lemm) that ran on the front page of Saturday’s paper.

We cannot believe that our community’s newspaper would stoop so low as to follow our volunteer, unpaid school board members into a restaurant, when they had finished giving their time in a school board meeting, and were relaxing off duty and off of the school premises.

What was the point of the article?

If there is evidence of anything improper, by all means, report it.

Instead, you have simply raised a question and sowed a seed of doubt and disrepute, without any basis.

Do you realize that these board members devote countless hours of their own time, without compensation, to the welfare of our community?

They serve us, endeavoring to make a positive impact on the lives of our children, who are our nation’s future.

We are disgusted with the gossipy, back-chatty tone and lack of substantial content of this article.

You, Mr. Editor, and you, Ms. Lemm, owe our school board members, and your readers, an apology.

You should think more carefully about what you publish.

Gregg and Karen Gerstenberger

Poulsbo