The Root Causes Of The Housing Crisis In California

By Donner Swendson

The State of California and HUD housing agencies have long lists of “Certified”, “Qualified”, “Approved”, etc. loan brokers and mortgage brokers that the agencies say will help low-income citizens get single family financing.

So we called everybody on one of those lists provided by the State of California.

In fact, those loan brokers and mortgage companies don’t want to hear from you unless you are in a bid war on a $1.5 million dollar bungalow for which you already have $500K, or more, in cash in the bank.

Only a small percentage of the loan brokers and mortgage brokers on those lists had EVER done a completed subsidized home loan and even less had any clue how to paper a HUD Home Ownership financed home loan. Over 20 U.S. Bank mortgage brokers even refused to respond to emails or phone calls if one used the words “Cal-FHA USDA” because, as one unusually talkative U.S. Bank employee stated: “To us, those are code-words for ‘poor people”, the market is, frankly, too hot for banks to bother with the poors because we don’t make any money off them”.

It does not matter if you have spent years trying to keep your FICO score above 700. It does not matter that you never had a bankruptcy. It does not matter that you have guaranteed income for life from your government benefits. All of those things that the media told you to do to be a “good citizen” with a good social credit score seem to be pointless.

The loan and mortgage brokers on those lists are only on those lists to get a few PR brownie points. They do not want to hear from you or deal with you unless you are making big bucks in tech. They will let you upload your information but they will do little or nothing to help you because they lose money by helping you. They only make money off of the big deals.

On top of that the big real estate developers like Pulte Homes, Berkshire Hathaway (Warren Buffet), Kauffman and Broad (K&B Homes), etc. are bribing the Governor and the heads of all of the agencies to keep you from building a home or getting a home that is not in one of their giant developments.

Most low-income people are the laborers who build the homes in those big real estate developments. Those people know how to build their own homes but State and Federal agency heads are bribed to make sure you NEVER can build your own home. Those people know they can build an incredible home, on their own, for under $100,000.00. You an see thousands of videos on the internet showing people that do it every day in any state but California. Try to build a home in California. You will find you are blockaded at every turn EXCLUSIVELY by rules that you have to follow but that big developers do not!

Try to buy a modular or factory build home in California ...Same thing.

The political bosses in California have taken so many bribes from big special interests that they can’t stop sucking on the graft hose.

Political Bribes By Special Interest Lobbyists Make California Uninhabitable

If the state and federal government were actually serious about solving the housing crisis, they would have a mortgage agency that only serviced subsidized housing!

Low income people: “approved” lenders and mortgage brokers hate you and don’t want you bothering them.

US BANK, Wells Fargo, Guild Mortgage, and all the rest, talk a good story when they are on-camera or doing a public presentation but the reality is that they consider you to be a “waste of their time” if you are needing subsidized housing. They all issue press releases where they talk about their “commitments” and “special programs” but they put zero effort into those green-washing intentions. They only say those things to keep the banking regulators off their backs and to make their favorite politicians happy.

When real estate developers are paying politicians and banks to ignore low-income people and 79% of America is now “low income”, with more arriving daily, what chance does the public have?

The trend is edging toward disaster.