Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Saturday, October 27, 2007

Claiming "Native American Indian?"--Well, they're Not Claiming You! (Indians are expelling tribal members)



Indian tribes expel members
source

PROVIDENCE, Rhode Island (AP) -- Dennis Champlain's grandfather helped win federal recognition for the Narragansett Indian Tribe. Champlain himself has danced in tribal powwows and teaches his children that they are Narragansetts.

Dennis Champlain and his extended family were removed from the rolls of the Narragansett Indian Tribe.

Yet the Narragansetts say he is no longer a member of the tribe.

Champlain and his extended family are among thousands of people removed from American Indian tribes in recent years, often amid tribal squabbles or when a casino comes to town. In Rhode Island, the Narragansetts' removal of about 140 of roughly 2,400 members has become an issue in Saturday's election for the tribe's chief sachem, or leader.

Tribal officials say they have the right to decide who is a member and to prevent fraud by people angling for a share of gambling money. But many of those kicked out complain they have little recourse to fight what amounts to an attack on their identity.

"We're in the process of a redefinition of tribal identity at its core," said David Wilkins, a political scientist at the University of Minnesota and a member of North Carolina's Lumbee Tribe. "It's ramping up in a way that's really quite frightening to a lot of Native people."

Wilkins traces most purges to four factors: internal political squabbles, stricter racial requirements for membership, punishment for gang or drug-related crime and, most often, during debates over sharing casino profits.

A 1978 U.S. Supreme Court ruling said the federal government should not intervene in most tribal membership disputes, leaving appeals up to the tribes.

Tribal casinos generated $25 billion in revenue last year, according to the National Indian Gaming Commission. Tribes often split the profits by making payments to members. Fewer members can mean a larger paycheck for those left.

But that paycheck can lure people with dubious claims of ancestry. The Pechanga Band of California said it was deluged with membership claims after it opened its casino in 1995.

John Gomez Jr., 39, a Pechanga member since childhood, was kicked out in 2004. He said gambling profits were one factor: He lost free health care and a $15,000 monthly payment. But he said he and others had questioned leaders before a tribal election.

"I think a lot of it has to do with the money, but there's a lot of it that's also about the politics," said Gomez, who co-founded the American Indian Rights and Resources Organization, a group that lobbies against expelling tribe members.

The Pechanga council has said it cut members who should never have been let in.

It's not clear how many people have been removed from tribes in the last few years. There are 562 federally recognized tribes, and tribal governments are not required to report citizenship decisions. But the number is in the thousands.

Gomez's advocacy group counts at least 1,500 people ousted from 13 tribes in California.

In Michigan, the Saginaw Chippewa want to remove about a tenth of their 2,700 members due to rules that require them to be at least one-quarter Indian. Critics said it's an attempt to cut casino payments.

The Cherokee Nation voted in March to deny citizenship to an estimated 2,800 descendants of tribal slaves.

In the Narragansett election, Paulla Dove Jennings, a historian, is running an underdog campaign against the incumbent, Matthew Thomas, saying it is unfair to take people's identities as Narragansetts away.

The tribe began a review of its roster about three years ago amid a failed push to build a casino -- but there is a dispute over why. Thomas said a tribal assembly, similar to a town meeting, voted to verify all tribal membership before adding several children to the roster.

But Leslie Champlain, a cousin of Dennis Champlain, said she attended the meeting and believes the tribe did not approve an audit. She suspects tribal leadership wanted to root out dissent after her sister, a tribal councilwoman, demanded a detailed audit showing how the tribe spent millions of dollars, some of it from the gambling company Harrah's Entertainment Inc.

Thomas called Champlain's claim "ridiculous" and said he is bound by the decisions of the tribal assembly and cannot be held responsible for someone else's ancestry.

Members were asked to prove they descend from ancestors listed on an 1880 census using birth, death and marriage certificates. The Champlains had used other documents as recently as 1994. This time, it was not enough.

Dennis Champlain said he learned his family was kicked out by reading about it in a newspaper. Thomas said members can appeal to a tribal court, but the Champlains say no one ever told them how to appeal.

Dennis Champlain does not blame his fellow Narragansetts, but he calls the process unjust.

"It's not a matter of whether it's right or wrong," he said. "It's a matter of who has the power. The tribe has the power -- we don't."
*****
This sounds like a mess, but if it's to sort out fraudulent people, I understand their actions.
However, the procedure needs to be revamped in order to prevent legitimate members of the tribe from being expelled.

Friday, October 19, 2007

**IMPORTANT** Minorities...What You Need to Know About Predatory Lenders


Protect Yourself Against Predatory Lending..."The Equity Killer"
A Key To Wealth Building


Predatory Lending is the equity killer. Consumers can lose equity in their homes by being placed in higher rates than they qualify for, by paying junk fees that are financed in the loan, by being placed in bad loan programs, etc. Predatory Lending, simply stated, is the practice of unfair lending. Predatory Lending victimizes hundreds of thousands of families every year. For the past 3 years Fair Community Lending Services has worked to protect consumers against predatory lending through education, access and accountability.

So what is Equity?

Equity is your ownership in the property you own also known as your asset position. A mortgage is your liability. So as shown in Example 1, if your home is worth $300,000 and you owe $200,000 to the bank, the equity remaining in your home is $100,000. Your equity is available for you to turn to cash by either selling your home or refinancing your home.

Example 1:
Value of Home: $300,000
Liability/Amount owed to Bank: $200,000
Equity = Value of Home – Amount owed/Liability: $100,000

If you decide to sell your home you will have to pay off the amount owed to the bank and any remaining money would come to you after you pay the fees to sell your home.

You can also gain access to your equity by refinancing your home. Refinancing your home means you work with a bank or broker to take out a new loan on your home. The existing lender would have to be paid off through the refinance, and you receive a new rate and new program. You will also pay loan fees to the bank or broker to establish the new loan.

How do you gain equity and how does Predatory Lending affect that equity?

Equity is gained two different ways. You gain equity by paying down your loan and through market appreciation. Appreciation happens when the price or value of your home go up. Please see an example of appreciation in Example 2.

Example 2:
You purchase your home in January 2006 for $400,000. After 5 years the value of your home goes up to $600,000. You owe the bank $300,000 so the equity remaining in your home is $300,000.

Equity is also gained through paying principal on the loan. So, if you take out a mortgage that requires you to pay the fully amortized payment, you will pay principal and interest. The principal portion of the payment pays down the loan and the interest is the cost of the loan. As shown in Example 3, the higher your rate the more interest you pay and the longer it takes you to pay down the loan on your home.

Example 3:

Loan Amount: $300,000 Loan Amount: $300,000
Interest Rate: 7% Interest Rate: 9%
Total Payment: $1,995.91 Total Payment: $2,413.87
Total principal paid after 1-year: $3,047.47 Total principal paid after 1-year: $2,049.61
Total interest paid after 1- year: $20,903.45 Total Interest paid after 1-year: 26,916.83


Example 3 shows you that the higher your rate, the longer it can take to pay down your loan and gain equity. You will pay over $6,000 more in interest every year at the higher interest rate loan.

Your first home is the key to your financial security and based on your interest rate, loan program and fees charged for the loan, you can position yourself to maximize on the growth of your equity.

Predatory Lending Facts

9 billion dollars is lost each year to Predatory Lending and minority families, the senior community and single moms are the #1 victims.

In 2005 national banks charged minority families an average of 2-3% more on their home loans than white consumers. On a 300,000 loan 2-3% higher means a payment of $ 500-$700 more each month. That is a loss of over $6,000 in equity each year.

Affluent African Americans have 4 times the chance of being victims of Predatory Lending than low-income white families.

The Hispanic community has 2 times the chance of being victims of Predatory Lending than low-income white families

In 1920 the African American Community owned 15.5 million acres of land. Today they only own 1.1. million acres of land.
source

"U.S. borrowers lose $9.1 Billion Annually
To Predatory Lending Practices"

Source
Predatory Practice
Annual Cost
(billions)
Number of Families
Affected Annually

Equity Stripping
Financed Credit Insurance
$2.1
500,000

Exorbitant Up-Front Fees
$1.8
750,000


Sub prime Prepayment Penalties
$2.3
850,000

Rate-Risk Disparities
Excess Interest Charged
$2.9
600,000

Excessive Foreclosures
Lack Concern for Ability to Pay
?

TOTAL
$9.1

Types of Predatory Lending:


Flipping or Churning

Flipping or churning occurs when a lender or broker continually refinances a consumer’s home loan without providing a benefit to the consumer for the new loan. Each time the loan is done, more and more fees are folded into the loan which strips equity from the consumer’s property. Seniors are the number one victims of this type of predatory lending practice. If you are refinancing your home, you need to know your benefit.

Exorbitant (Ridiculously High) Fees

When you refinance or buy a home there are fees associated with the transaction. These fees should be disclosed to you on a good faith estimate. The fees cover items including but not limited to title insurance, escrow, taxes, insurance, processing and loan origination fees.

A fair broker will charge a loan origination fee and a loan processing fee along with third party fees such as escrow and title. Unfair brokers and lenders charge application fees, administration fees, and excess fees that are folded into a consumer’s loan.

Brokers and lenders should get paid for their services however some abuse fees. These fees are deceptively costless to many borrowers because when the borrower “pays” them from the equity of their home, they do not feel the pain of counting out thousands of dollars in cash. The borrower parts with the money later, when the loan is paid off and the equity value of their home is reduced by the amount of fees paid to get into the loan.

Financed Credit Insurance

Loan product paid for by the borrower that repays the lender should the borrower die or become disabled. However, the total premiums for the life of the insurance policy are added to the amount of the loan.

Generally, in the single-premium credit insurance (also known as SPCI), five years worth of premiums are added directly to the loan amount. The borrower then pays interest on this amount for the life of the loan and typically has not even begun reducing the loan’s principal balance by the time the five-year credit life insurance coverage period expires. Consequently, when a borrower moves or refinances out of a Sub prime loan after five years, all of the premiums for the terminated insurance are stripped directly out of the borrower’s home equity.

If you choose to purchase this type of insurance policy get it on your own from an insurance company.


Undisclosed Prepayment Penalties

Hidden or deferred fees can strip significant equity from borrowers. Prepayment penalties are usually equal to six months of interest if the consumer refinances or sells the home before the prepayment penalty expires. If a loan carries a prepayment penalty, the consumer should be informed of the prepayment penalty before signing their loan documents. In addition, the prepayment penalty should not be longer than the rate is fixed for.

Some loans have prepayment penalties because lenders want to ensure that they make a certain amount of interest on a loan before the consumer gets out. Prepayment penalties come standard on sub prime loans or higher risk loans (FICO scores below 620). In certain situations, a program with prepay is okay if the consumer is using the loan as a bridge loan to help them fix their credit. The lenders that have standard prepayment penalties also have options to remove the prepayment penalty by taking a higher rate and/or by paying fees.

So on a $300,000 home loan that is financed at a 7% interest rate, your prepayment penalty to get out of the loan early would be approximately $10,500. If you had the same loan amount and an interest rate of 9%, your prepayment penalty would be approximately $13,500.

Prepayment penalties are usually equal to six months worth of interest if the borrower prepays at any time, for any reason, during the first three to five years of the loan. For a 10% interest rate loan, the penalty would be 5% of the loan balance. On a $150,000 loan, this fee is $7,500, more than the total net wealth built up over a lifetime for the median African American family. It’s estimated that these Sub prime prepayment penalties cost 850,000 families $2.3 billion each year.

Rate Discrepancy

Over 50% of families are paying a higher interest rate on their mortgage than they qualify for. The reason is broker and lenders make more money when they charge higher rates.

The higher your rate the more interest you pay the longer it takes for you to pay down your loan.

It is reported that over 63% of minorities who are eligible for conventional loans are placed in Sub-prime programs. Sub prime loans carry higher rates and fees, and many sub prime loans (35 to 50% according to Fannie Mae and Freddie Mac) are being made to borrowers who could have qualified for prime loans.

How to Protect Yourself from Predatory Lending?

1. Understand your credit position and position it before you buy a home
2. Put a budget together before refinancing or purchasing a home so you do not over extend yourself.
3. Ask the broker about your loan program if it is an adjustable ask them what your Margin is, Your Index and The Cap on your loan.
4. Ask for a Good Faith Estimate – this will outline your loan amount, your loan program, the costs of your loan, and your monthly payment.
5. Do not sign any blank paperwork
6. Check to see if your loan officer is licensed with the correct agency
7. Attend seminars and workshops to empower your self

The best way to protect yourself is to contact FCLS today or Apply directly online 24 hours a day. We are here to help you protect your investment.



***


If it seems too good to be true-most likely it is.


These situations (most cases) can be avoided, if WE READ AND RESEARCH!


This requires patience.


If you're desperate, impatient to be a homeowner-you will become the perfect prey for predators, because you are vulnerable, and susceptible to any snakecharmer that comes along.


People, READ, AND ASK QUESTIONS....READ AND ASK MORE QUESTIONS!


You Better Recognize-Foreclosure, and homes being LEGALLY stolen are an everyday reality, for poor families, single parents, minorities, and senior citizens.


EDUCATE YOURSELVES


Ivent