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EXCLUSIVE: Romney Profited From Mortgage Lenders Foreclosing On Thousands Of Floridians
EXCLUSIVE: Romney Profited From Mortgage Lenders Foreclosing On Thousands Of Floridians
By Josh Israel on Jan 25, 2012 at 9:20 am
A ThinkProgress examination of Mitt Romney’s presidential personal financial disclosures from May 2011 reveal that the former Massachusetts governor and his wife own or owned millions of dollars worth of a Goldman Sachs investment fund invested heavily in mortgage-backed obligations. And the current owners of those mortgage debts began foreclosure proceedings against thousands of Floridians.
Along with his investments in Bain Capital funds linked to offshore tax havens, the Romneys have large investments in the Goldman Sachs Strategic Income Fund (institutional class). The firm’s March 2011 annual report for the fund notes that about 8 percent of the fund is invested in banks and 24.5 percent is invested in mortgage-backed obligations. Romney’s form says he has invested between $1,000,001 and $5,000,000 in the fund and his wife Ann has invested an additional $1 million-plus. Since the 2008 economic meltdown and the enactment of the Troubled Asset Relief Fund, this fund has done quite well, growing 7.88 percent between April 2010 and March 2011.
The mortgage-backed securities in the fund include adjustable rate mortgages from Bear Stearns, Countrywide, IndyMac, and Washington Mutual. A 2009 Center for Public Integrity report identified all four of those companies as among the top-25 subprime lenders in the lead-up to the market’s collapse. Countrywide ranked first in that report and Washington Mutual ranked second. While the remnants of those companies have been purchased by major financial institutions, an array of mortgage loan service companies bought up the individual mortgages.
An examination of civil cases filed in Miami-Dade county alone, by just the current owners of the mortgage obligations for now-defunct Washington Mutual and Countrywide, suggests more than 5,000 foreclosure cases were filed in 2010.
more...
http://thinkprogress.org/economy/2012/01/25/409804/romneys-profited-foreclosure-florida/
By Josh Israel on Jan 25, 2012 at 9:20 am
A ThinkProgress examination of Mitt Romney’s presidential personal financial disclosures from May 2011 reveal that the former Massachusetts governor and his wife own or owned millions of dollars worth of a Goldman Sachs investment fund invested heavily in mortgage-backed obligations. And the current owners of those mortgage debts began foreclosure proceedings against thousands of Floridians.
Along with his investments in Bain Capital funds linked to offshore tax havens, the Romneys have large investments in the Goldman Sachs Strategic Income Fund (institutional class). The firm’s March 2011 annual report for the fund notes that about 8 percent of the fund is invested in banks and 24.5 percent is invested in mortgage-backed obligations. Romney’s form says he has invested between $1,000,001 and $5,000,000 in the fund and his wife Ann has invested an additional $1 million-plus. Since the 2008 economic meltdown and the enactment of the Troubled Asset Relief Fund, this fund has done quite well, growing 7.88 percent between April 2010 and March 2011.
The mortgage-backed securities in the fund include adjustable rate mortgages from Bear Stearns, Countrywide, IndyMac, and Washington Mutual. A 2009 Center for Public Integrity report identified all four of those companies as among the top-25 subprime lenders in the lead-up to the market’s collapse. Countrywide ranked first in that report and Washington Mutual ranked second. While the remnants of those companies have been purchased by major financial institutions, an array of mortgage loan service companies bought up the individual mortgages.
An examination of civil cases filed in Miami-Dade county alone, by just the current owners of the mortgage obligations for now-defunct Washington Mutual and Countrywide, suggests more than 5,000 foreclosure cases were filed in 2010.
more...
http://thinkprogress.org/economy/2012/01/25/409804/romneys-profited-foreclosure-florida/