Journalist Warns of Broader Risk to Housing Market Due to Borrower Fraud

Allegations of Political Overreach by the Justice Department

• ⚖️ The Justice Department's actions are likened to the "pot calling the kettle black," particularly regarding investigations into Donald Trump and January 6th rioters.
• 📞 It's noted that the DOJ obtained call logs for nine Republican senators in its probe, ostensibly to investigate obstruction or co-conspirator involvement.
• 🏛️ The Supreme Court has twice ruled against the Biden Justice Department's prosecutions, citing overreach in cases involving Donald Trump and January 6th rioters.

Kamala Harris's Track Record

• 🧐 Kamala Harris's career as Attorney General in California is highlighted, including editorials criticizing her targeting of certain for-profit colleges.
• 🏥 She also pursued action against a Catholic hospital that sought to acquire another, reportedly due to opposition from the SEIU union.

Widespread Fraud in Housing Markets

• 🏠 A study from the Philadelphia Federal Reserve Bank found that approximately 6% of borrowers during the housing bubble lied about being investors, claiming to be occupants instead.
• 📈 These borrowers, who were investors, defaulted at much higher rates, contributing to the housing bubble and a larger crash.
• 📉 Current data suggests that 2-3% of borrowers continue to lie about their status as occupants when they are actually investors, posing a broader risk to the housing market.

Moral Hazard in Lending Practices

• 🏦 Lenders have little incentive to verify borrower claims because they package and sell loans to Fannie Mae and Freddie Mac, which are backed by taxpayers.
• ⚠️ This creates significant moral hazard across markets and the economy, as the ultimate risk is borne by taxpayers.

2028 Presidential Election Speculation

• 🚀 Speculation exists about Kamala Harris being a candidate in the 2028 presidential race, despite her past actions as AG.
• ⛰️ Her path to candidacy is seen as an uphill climb, with emerging tensions noted between her and California Governor Gavin Newsom, described as "frenemies."