May of 2012 I discovered the implementation of Dodd Frank had significantly changed real estate lending laws. Real estate asset based lending disappeared all together. Low doc and no doc lending disappeared completely.
At the markets peak loans were being written, many real estate professionals I knew, referred to as NINJA loans – No Income, No Job, No Asset loans. Many of these NINJA loans were occurring on excessive property valuations and lenders were eager to lend, eager to package mortgage backed securities for sell. Many were lending at 125%, of excessive valuations, on the assumption real estate prices always went up. If you could fog a mirror you could get a mortgage.
However, there is a significant difference between a NINJA loan and the existence of and the validity of No Doc and Low Doc loans of the prior 200 years. These loans in their initial applications allowed entrepreneurs, small business operators, etc., to leverage their capital to run businesses, to take risk in forming businesses, or build something for sale. Two of the most prevalent uses of asset based collateralized lending in the nations history were farming and construction.
Small farmers would work hard, scrape and save, to someday buy land of their own to farm. They passed it from one generation to the next. Once they purchased their own block of land they were able to borrow against their real estate holdings to risk farming for themselves. With no job, No income, they mortgaged the land to bet on their own hard work. How many times have you heard it said they mortgaged the farm to stay in business?
I personally have known numerous individuals that started in their youth working on a construction site, many as framers, masons, plumbers, electricians, and others, who overtime bought their own land and then mortgaged it to build their first spec house. Some of the smartest I knew built them, lived in them, started another and when it was complete they moved into it, only to start again. This process enabled them to build sweat equity and wealth increasing the return on their investment, with hard work, and investment in themselves.
Dodd Frank killed these small business opportunities and left farming to the mega corporations, and building to the mega builders. It’s eliminated the path for individuals to start and grow small business by leveraging real estate holdings. It has in fact eliminated the use of real estate equity as capital to be leveraged. Unless you’re already in a profitable business your real estate equity is capital locked up unless you sell it. That’s a lot of liquidity removed from the economy. Dodd Frank ended Mom & Pop farming and construction.
If you think about banks leveraging their holdings today at 20 to 1 and at the peak of the financial collapse many of these institutions were leveraged at more than 40 to 1 risking it all gambling on their own Ponzi scheme. Now an individual cannot leverage real estate at all. Take calculated risk to bet on their own ability, risk it on themselves, to create a successful return or build a business. An individual with real estate equity today cannot get 40% loan to value risk capital, that’s not even 1 half to 1 leverage unless their able to do it through crowd funding or a hard money lender.
In 2006 – 07 I made the biggest mistake of my life purchasing 23 acres of an old apple orchard on the side of a mountain in Patrick County Virginia with piedmont views.
I encountered a enough corruption, crime, lies, lying and government obstruction to fill a novel between 2007 and 2011. Since it’s not the point of this post, suffice it to say the good ole boy network (criminal and otherwise) is alive and well in Patrick County and they use every means to let outsiders know, their not welcome, or wanted in “their” community.
Just one example an illegal garbage dump buried and hidden on the property sold to me. Buried in the head of a natural spring feeding into local creeks and streams. Fifteen thousand dollars just in fees to have the county landfill take the garbage. I’ll add to that, when I tried to sue the seller no one was willing to take the case because Martin F. Clark Senior was the lawyer for the seller and his son was a locale court judge. Just as Alan Black the Attorney I tried first to take the case had informed me.
What you need to know here is the plan was to put new life into an old apple orchard, build a primary residence were my aging mother could come to live out her final years, plant available space as a vineyard. Start an operation to make hard apple cider and viniferous wines and potentially blends. Once this had been established. Build with sweat equity some tree houses with piedmont views overlooking the vineyards and market to Motorcyclist riding the Blue Ridge parkway and touring the regional mountain roads and countryside.
The plan was to use our capital assets to buy the farm, put it back into production, build a house with our capital and leverage and start a wine making operation. Prior to publication of this post it was announced that Virginia wine sales hit an all time record and the states hard apple cider sales were up 200%. These were trends we spotted back in 2008 worked toward and got clobbered on by Dodd Frank, criminals in this community, and racketeering by the USDA. Evidence of that news linked here. 8 Things That moon over Rosslyn Eclipsed
Locals had every intention of stopping us, or delaying us, any and every way possible. A house that should have taken 2 years to complete took 3 years just to get a foundation; locals ensured then the foundation was delayed until bad weather would prevent any further progress for yet another year. When a community does not want you in their territory their obstructionism can cause serious financial and psychological damages. It was a mistake to believe local farmers and the region would like to see an increase in tourism and business. I believe the correlation between the GOP in congress and the local community is one of total devotion.
To that I say if you want to control how land is developed, you need to either buy it to control it, or have zoning laws. But acts of criminal obstructionism including extortion, mob style intimidation, and work slowdowns, perpetuated by civil servants is disturbing, criminal, and indicative of an immoral society of thugs.
Dodd Frank was implemented June of 2011, prior to that banks had been willing to work with us. Multiple financial intuitions had committed capital to our plans but one expired and others demanded timelines that were to restrictive given the obstructionism, encountered, and the desire to put as much sweat equity as possible into the efforts.
The SBA had been approached with the business plan in late 2008 or early 2009 but, informed us, if we wanted to focus on the orchard and vineyard ahead of tree houses we needed to seek financing from the Farm Service Agency before they could assist us. I called the local FSA office and requested an application.
In May of 2012 the reality of Dodd Frank implementation on our efforts became apparent. No longer could our real estate assets be used as collateral to pursue this farm winery operation, or to complete the half finished house. It was apparent having talked with countless banks, farm credit unions, hard money bankers, and every other potential lender we could think of to finance getting the house dried in and the vineyard planted we would not be extended credit on our real estate holdings.
With more than 600,000 in capital, five years of hard labor invested in this Farm Winery effort. Financial institutions leveraged to the hilt, negligently lending, and fraudulently selling mortgage backed securities prompted implementation of Dodd Frank legislation locking us out of credit markets completely.
When the SBA told us in 08 or 09 you need to be declined by FSA first, is when FSA rules you have to have 3 years farming experience, and be unable to obtain credit elsewhere to be eligible for an FSA Farm Loan had been learned. I had in 2009 requested an application from which I learned the eligibility requirements. So in June now with 4 years farming experience and unable to find credit elsewhere, I requested a new FSA Farm Loan application.
Without crop insurance and 3 years of hail, The apples all went to juice at a loss by the dump truck load. Yes the first Hail harvest.
Four years without a marketable crop to make us eligible for crop insurance the 2012 crop was looking good, sold at market, and made the operation eligible for crop insurance for 2013 finally. The plan was to sell great apples into the open market for crop insurance and use culls and special varieties and blocks for wine making.
By September of 2012 our financial capital resources were declining as we pumped money into construction of the house hoping to get it under roof before winter. The crew worked diligently harvesting the crop and working on the house. Local obstructionism had me framing the house with my farm hands and winter would not be kind to a house with no roof. Planning to work entirely on the house after completing the harvest. I made some very large purchases of construction materials on my American Express card. Materials needed to complete the framing and the roof.
By the end of September 2012 the crop was mostly harvested, I completed all the financial information as of September 30th and prepared my farm loan application and arranged with the local FSA office for a site visit on October 10th. From the moment FSA officials got out of the car I could tell this was not a friendly encounter. With all the other local corruption I had already seen, I secretly started the recorder on my Iphone at the first opportunity.
Much, not all of the criminal activity, negligence, fraud, discrimination, and perjury that ensued from submitting that application with the USDA and its decline on November 28th are documented in the thousands of pages filed with the Federal district court “of corruption”. There are also many examples on this blog.
The one Item I wish to discuss here was their failure to ever pull a credit report. It is a required procedure according to their manual, upon receiving an application for a farm loan. FSA charged an upfront fee to obtain a joint credit report. Knowing they declined the loan application without ever performing this required procedure, knowing they had declined the loan, and given debt refinancing as a reason, when there was no debt on the property. A copy of the credit report used in their loan evaluation was requested.
On February 9, 2013 I received an email from MYFICO informing me on February 8th my credit report was acquired by FSA. The only reason for them to now, pull a credit report was the express purpose of fraudulently presenting it as one reviewed for the credit application. In fact they sent it to us as if we would never know it had just been pulled.
Surely the U.S. Government understands, by conditioning eligibility for a farm loan on the inability to obtain credit elsewhere, the loan decision being made can be life or death for a small farm and therefore, failure to follow basic procedures should be a serious violation of their duty to due process.
I still contend, and want my day in court for a jury to decide whether the agency followed its own procedures or whether they’re simply running a racket to avoid accountability and responsibility for miserable, negligent, criminal performance of their duties.
Having worked on this project from 2007 to 2012 I found myself in January 2013 in immediate need of a job in a rural hudzone community and a bad employment market where I had previously been providing stimulus and jobs.
Firmly believing the agency was in error and the mistakes would be rectified we followed and adhered to the procedures they demanded. Days became months until almost a year later when our disagreement went to Federal Court. The Court would then delay for almost another year. The government figures they have all the time, money, and resources to eventually have you give up. This racket run by the USDA is aided by the Federal Courts with extraordinary abuse of deference.
The one rationale the Government has maintained for denying the loan, regardless of the fact they were negligent, and incompetent in its review is that my house is to big and more than meets my needs. Although, they changed their guidelines in the fall of 2011 and barred us from arguing the house met our needs. This is a violation of the rules of retroactivity because, the house had broken the rule implemented in 2011 back in 2008. In what world do we allow the rules to change after play has already begun?
We did the best we could to keep up with our bills while we looked for jobs and played lawyer through appeals, and federal court, Sometime In 2013 we could no longer keep up, we had applied and received food stamps and struggled to cover everything we could as we continued to look for work. By the time I found a job in January of 2014 the creditors were calling daily and demanding such large payments there was no way to make them. I did not wish to attempt settling the debt or finding an agency to negotiate some reduction. I have never asked for relief or to negotiate away what I owed. I owned this real estate out right and a mortgage or a loan against it would allow me to pay off all that was owed. Prior to FSA’s illegal access of my credit it was completely blemish free for more than 30 years. Had the financial institutions not wiped out the credit markets, or the Government preformed its duty my life’s work would not have been destroyed.
I have waited with baited breath for the big financial institutional creditor to sue me in court for payment of the unsecured debt. I repeatedly asked when they called why they would not rather exchange the unsecured debt for real estate secured debt. I never got an answer.
I believe I have a very valid counter suit for their negligence, fraud and criminal contribution to the collapse of the credit markets, the disappearance of real estate asset based lending, and the implementation of Dodd Frank. Consider the settlements financial institutions have made over the financial collapse.
Bank Of America 16.65 billion
JP Morgan Chase 13 billion
AIG 960 Million +
Wells Fargo 175 Million + 560 Million +
Here I sit with my real estate 100% owned with no available financing while other borrowers who were upside down, underwater, and had purchased more house than they could afford are having their principle reduced and getting historically low interest rates. Irony! I was debt free when the market collapsed owned my 23 acres out right, had money in the bank, had pristine credit, and was physically building my own home and a business from the ground up. And I’m the one who got locked out of the credit markets.
As luck would have it; it was not BOFA who came to court after me but American Express. I really have no reason to associate them with the financial market collapse. I will say they were not willing to work with me on reasonable payments when I got behind and living on SNAP. Nor did they give any consideration to my real estate holdings or provide any lender who would hold it as collateral. These financial institutions have now put me in a position where I can’t get a loan on my real estate even with a full time job.
I was summoned for a general district court appearance on November 18, 2014, having had the Federal Courts protecting Government criminals, I wanted any opportunity to tell this story to a jury. On that day in November, I went before judge Edwin A. Gendron Jr and, as is my constitutional right under the 7th amendment to the constitution, I demanded a jury trial. Judge Gendron’s immediate comment “ not in this court”. I had informed the court and American Express lawyers of my suit with the USDA. Which they completely ignored and made light of; they could have actually helped my case by filing to join in the suit against the USDA. They did not, and knowing these lawyers are out of Washington, I wonder if their real intent is to help the Government. Judge Gendron for reasons, which gave me, pause at the time ruled for a continuance on January 27, 2015 at 1:00 pm. Why did we need a continuance what purpose did it serve to delay this, I would simply demand my constitutional right to a jury trial again. I have some circumstantial reasons to believe that all, everything results from local government officials.
Sometime in early December I received a notice from American Expresses attorney. The notice was not unlike others I had received from my Federal Court case. It appeared to be a motion to the court for a hearing and was accompanied by an order for the judge to sign. The judge had not signed it. In federal court when a motion is filed the court clerk sends you a notice and if the judge grants the motion the court sends a signed copy from the judge to you with his order. Lawyers regularly file motions with a copy of the order they wish the judge to grant. They don’t grant every motion or sign every order submitted.
I received no notice whatsoever from the court. No notice a motion had been filed, no notice from the court that anything had happened in the case at all. No notice the judge had made any ruling or planned any hearing, other than the one already scheduled for January 27, 2015. As I had done numerous times in Federal Court, I reviewed the courts docket and found nothing beyond what I knew. I had a hearing on November 18th and a continuance was scheduled for January 27, 2015.
Given my experience with the Federal Court and the lies stated in open court by the department of justice and those penned by judge Jackson l. Kiser. I don’t believe anyone should ever accept a communication from a third party, paid liar as substitution for a court order. Hell given the corruption seen in the Federal Court, you should question and verify the validity of every court statement and action especially when challenging the judge’s source of income.
On January 27, 2015 I showed up for the court appearance. Judge Edwin A. Gendron Jr quickly informed me a hearing had been held in December in my absence, and judgment for American Express was granted. I protested stating emphatically the court had not provided any notice of the filing of a motion, nor had the court issued any notice a hearing was to be held. Judge Gendron’s reply was, I received a copy of the motion from the plaintiff’s attorney. linked here Notice from Pro Liar appear before court. I’m sorry but it’s the courts duty, their constitutional obligation to provide Due Process. A prime tenant of Due process is, notice must be given. It’s simply unacceptable for the court to ignore their duty and rely on the communications of a third party paid liar. But Judge Edwin A. Gendron did! Like committing perjury see https://blueridgesprings.wordpress.com/2014/04/12/lies-lying-liar-all-in-a-days-work-at-the-usda/ there is simply no justification for a Judge to deny any individual of his constitutional right especially the right to a jury trial and the right to present evidence on his behalf.
At the very best this was nothing short of the good ole boy network circumventing the law to screw the little guy for the benefit of lawyers and corporations. At worst it was a judicial system fully aware, I would use the evidence of racketeering by the USDA as a defense, and this was a way to prevent government criminals from being forced to testify in my defense. In other words the criminal injustice system was aiding and abetting the USDA’s racketeering enterprise by protecting them from exposure in court to a jury once again!
I will admit this made me very angry and I spoke some choice although appropriate words. However, the court guard had no right to stand on my heels threatening me out the court door. Actually, he should have arrested the judge cause he just witnessed a crime a depravation of an individuals constitutional rights.
When a judge acts intentionally and knowingly to deprive a person of his constitutional rights he exercises no discretion or individual judgment; he acts no longer as a judge, but as a “minister” of his own prejudices. Pierson v. Ray [ 386 U.S. 547, 568] referencing 100 U. S. 100 U. S. 339; 2 Harper & James, The Law of Torts, 1642-1643 (1956).
“ Jurisdiction, although once obtained, may be lost, and in such case proceedings cannot be validly continued beyond the point at which jurisdiction ceases”. Federal Trade Commission v. Raladam Co. , 283 U.S. 643, 75 L.Ed. 1324 51 S.Ct 587.
Such actions by a judge are in violation of Federal Law:
“Title 42 U.S.Code §1983 “Every person who under color of an statute, ordinance, regulation, custom, or usage of any State or Territory, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress.”
February 2, 2015 while researching my appeal options, I thought to look on the courts docket. On February 2, 2015 still no indication any other court proceedings or filings had occurred in my case. The court docket still showed only the original court appearance date and the date for the continuance hearing. See the hyper link pdf to verify the courts docket.GENERAL DISTRICT COURT ONLINE by Civil Case Number CASE INFORMATION SYSTEM Do you think the docket said anything else in December, or January than it did now on February 2, 2015?
February 4, 2015 I went to the clerk’s office to file the necessary papers for an appeal. I was informed by the clerk I would have to post a $25,000.00 dollar bond to appeal although, I could file for In Forma pauperis status with the state court. I was dismayed at the absolute disarray of the clerk’s office and took these snapshots as they objected.
Unable to borrow against my real estate holdings, unable to get a mortgage, how was I going to obtain a $25,000.00 bond, had I been able to do that I would have long paid it off. I filed for In Forma pauperis but Judge Martin F. Clark jr almost immediately denied it. Yes! Son of the Lawyer who was the attorney on the sale of the illegal dump to me. Once again the good old boy network was at work. These Judges civil servants intentionally depriving a civilian of constitutional right to a Jury trial as stated in the 7th amendment to the Constitution of the United States. Little guy gets screwed out of justice. Constitutional rights have no meaning when the judicial system refuses to honor them!
I don’t know if the judges did this for malice in connection to other criminal activities I had encountered with local government officials. Whether they did it to keep me from presenting evidence of the USDA’s racketeering enterprise in my defense, which was my goal, along with a counter suit against other financial institutions for the mortgage collapse, or weather it was simply to cover up mistakes by the clerks office. I simply find no justification for denying an individual his constitutional rights.
I can’t even begin to count now how may times my constitutional rights to Due Process, To a Civil trial by jury, to equal justice under the law have been violated by the judicial system. This behavior is appalling, oppressive, tyranny, and unconstitutional We the people must put an end to it!
Therefore, I’m proposing as a start to ending this kind of judicial disrespect for the law and the constitutional rights of individuals that every court room in the United States be continuously video taped and audio recorded and subject to civilian review upon the filing of any complaint of misconduct by a Judge. Think about it this way. Time and again we are reminded that people are capable of horrific offenses. A judge is no less likely to ignore the law than anyone else. We have videotape now on school buses, in hospitals, malls, and grocery stores, even on street corners and police are being given body cameras. Why should the judicial system be allowed freedom to commit their crimes behind closed doors protected within the confines of their own white-collar gang of professional obfuscators. Why with todays advancement in technology do court rooms still rely on transcribers. I believe its because judges can still control what those transcriptions say and show.
Its time America demand transparency, accountability, and responsibility from the U. S. Judicial system. Time We The People have civilian review boards to review complaints of judicial and police transgression.
I’m the little guy who was debt free when the mortgage collapse started, the little guy who got clobbered by the financial institutions negligence, and fraud, clobbered by negligence and fraud in the USDA, clobbered by deprivation of my constitutional rights in Federal Court, General district court, and Virginia State Court. Truth is the U.S. Government and the U.S. Judicial system has more serious career criminals in it than we have in all the U. S. prisons combined.
Next Post I start preparing readers for the next law suit on which I expect government will respond to criminally ignoring laws.
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