House Financial Services Hearing on FDIC/Lennar Wed. May 16

House to hold a hearing on FDIC structured loan process and
nationwide complaints regarding Lennar, Rialto and others.

Witnesses include FDIC and Lennar as well as damaged borrowers.
Please forward this message widely. Send to at least 10 others.

Each recipient of this message who has been damaged by the FDIC
structured loan process should write testimony or a letter to submit
for the record. You can modify any testimony you've already written
and send it again. A simple letter that explains what happened to you
is fine.

Please send a copy of your statement to American Land Rights at
ccushman@pacifier.com <mailto:ccushman@pacifier.com>
or alra@pacifier.com <mailto:alra@pacifier.com>.

If you have not been damaged but know someone who has, please forward
this message to them and send their contact information to
ccushman@pacifier.com <mailto:ccushman@pacifier.com>
. Please forward this message to as many people as possible whether
or not you know the FDIC, Lennar, Rialto or others have damaged them.


You can mail your statement to:

Randy Neugebauer, TX, /Chairman/
House Financial Services Committee
Oversight and Investigations Subcommittee
U.S. House of Representatives
Washington, DC. 20515

Attention: Hearing Wednesday, May 16th.
2:00 pm Eastern Time.

E-mail your testimony to or call:
cliff.roberti@mail.house.gov <mailto:cliff.roberti@mail.house.gov>
(202) 226-1231
gisele.roget@mail.house.gov <mailto:gisele.roget@mail.house.gov>
(202) 225-7502

The Hearing is available on the Internet streamed live at:
www.financialservices.house.gov
<http://www.financialservices.house.gov/>

At the time of this e-mail the hearing had not been listed on the
website. It should be listed by the end of the week. Go to
About Us to find videos or call their general number for
information at: (202) 225-7502

House Financial Services
Oversight and Investigations Subcommittee

Republicans:
Randy Neugebauer, TX, /Chairman/
Michael G. Fitzpatrick, PA, /Vice Chairman/
Peter T. King, NY
Michele Bachmann, MN
Stevan Pearce, NM
Bill Posey, FL
Nan A. S. Hayworth, NY
James B. Renacci, OH
Francisco "Quico" Canseco, TX

Stephen Lee Fincher, TN

Democrats:
Michael E. Capuano, MA, /Ranking Member/
Stephen F. Lynch, MA
Maxine Waters, CA
Joe Baca, CA
Brad Miller, NC
Keith Ellison, MN
James A. Himes, CT
John C. Carney, Jr., DE

*Problem:* FDIC Bank Closure Process destroying small businessmen,
killing jobs, undermining communities and slowing the economic
recovery.

The FDIC and its Wall Street Hedge fund partners like Lennar, Rialto
and Multibank and others are using billions of taxpayer dollars
interest free to fund for profit real estate investments with all
their legal bills paid by the FDIC.

This means that borrowers and landowners cannot compete with Lennar,
Rialto, Multibank and others in the legal process. They are up
against the deep pockets of the taxpayer competing in the courts.

It is important to understand that most small businessmen facing the
attack by Lennar, Rialto and others on their personal assets were in
good standing when their bank closed. Their only guilt was being in a
bank closed by the FDIC.

-----Please forward this message as widely as possible to all
possible victims of the FDIC bank closures, Lennar Corp., Rialto
Corp, Multibank Corps other Wall Street Hedgefunds developing
structured partnerships with the FDIC.

The FDIC is continuing to close approximately 2 banks a week. They
have closed over 100 banks each of the last two years. That means
that thousands of additional small businessmen, landowners and
borrowers are being destroyed putting a huge drag on the economy.
Hundreds of local communities are suffering as a result.

*Solution:*
* *
Congress must reign in the FDIC and subject them rigorous oversight.
The structured loan process must be stopped or FDIC must insist that
borrowers with loans at failed banks be allowed to work out
reasonable settlements where they have the resources to do so.

ALRA can help provide specifics to facilitate a closer look at the
FDIC, its main partner Lennar Corp and it's Wall Street hedge fund
subsidiaries such as Rialto and Multibank.

Bottom line, an agency of the federal government (FDIC) has and is
forming numerous For Profit Entities  to liquidate notes and
related real estate collateral left over from failed banks. On its
face, OK, what's the problem?

These new For Profit entities are not authorized, protected or
empowered by FIRREA [the federal regulation that gives the FDIC super
powers] and the loan transfer documents confirm it.

The FDIC then arranges interest free loans from the US Treasury to
capitalize the new private for profit LLC FDIC partners created to
own the notes and operate the liquidation process.

They use low-ball fair market value valuations and then borrow 100%
of that amount from the Treasury Dept. FDIC corporate guarantees the
debt. They then sell a 40% interest to a "winning bidder" for pennies
on the dollar, typically to a publicly-traded company like Lennar,
Rialto, Multibank etc., who also guarantees their pro-rata portion of
the loan.

Now we have a Wall Street company (Lennar, Rialto, Multibank and
others) as 40% owner of a For Profit LLC using public funds interest
free and a 100% loan with all their legal bills paid by the FDIC to
shake down and foreclose on damaged borrowers (damaged when their
bank failed) for additional dollars before taking the property away
from them to in turn make a profit for themselves and the FDIC.

If that wasn't enough, Rialto and other Wall Street Hedgefunds are
then going after the deficiencies of the borrowers. That means taking
their homes, cars and anything else they own because the borrowers
often pledged personal assets to the bank to get the original loan.

The FDIC has sicked predator organizations like Lennar, Rialto and
Multibank on innocent private citizen borrowers destroying them
financially and guaranteeing they cannot come back and hire people
and help the economy recover.

Remember that in most cases the borrowers did nothing wrong. They
just happened to be doing business with a bank that was closed by the
FDIC.

Also keep in mind that most borrowers in the process were making
their payments and in good standing before the FDIC closed their
bank.

These PPIP's (Lennar, Multibank, Rialto etc) are borrowing billions
in interest free dollars from the U.S. Treasury. To make matters
worse, all their legal bills are paid by the FDIC. The small
businessmen cannot compete in the courts and cannot afford to hire
the lawyers to stay in the game.

The FDIC has created a situation where there is no opportunity for
the borrower to gain equal access to justice.

There are numerous aspects of this that are morally and ethically
wrong.

-----A. FDIC is using / risking tax payer funds with no return to the
taxpayer.

-----B. FDIC has created an un-level playing field favoring a federal
agency and private Wall Street hedge funds and substantially
disadvantaging private enterprise and small businessmen. That is
contrary to government's function.

-----C. The FDIC is a profit-making partner to the tune of a 60%
share in each of the structured loans involved in the process. So the
FDIC has become the enemy of the taxpayer borrower. The FDIC continues
to be a 60% owner of each of the structured partnerships. So of course
they have slanted the playing field and given unusual powers to their
own partners.

-----D. If FDIC can do this for Wall Street, why would they not work
with the original Borrowers that were damaged when their bank failed
or at least include them in the workout solution -- give them a
chance to participate and get their investment back? The Borrowers
have the property knowledge that would be very valuable to any
development resolution down the road, especially critical on
development loans.

-----E. The FDIC has become the enemy of local economies. They and
their giant Wall Street hedge fund partners intend to make a profit
on the property taken from the failed bank's borrower's with no
compensation for the property they take. Often the FDIC actions yield
a much lower settlement than if the FDIC allowed the borrowers to work
out their loan.

-----F. The FDIC guarantees to pay most or all of the legal bills
necessary to make Lennar, Rialto, Multibank and other structured
partnerships function and attack borrowers. The Lennar, Rialto etc
come into court with five or ten attorneys intimidating the court.
The borrower has no chance at a fair crack at the legal system. The
borrower is swamped with legal bills;.

These same borrowers are unable to refinance to move the loan in
today's environment. The banks are not lending and the regulators,
state and federal, have told the banks that they will be criticized
if they engage in making acquisition & development loans,
construction loans and even commercial real estate loans.

So they take the loans and underlying collateral, attempt to bully,
intimidate and frustrate the Borrowers on the one-hand while they
compile the properties to partner with Wall Street and make a profit
with the other.

To be sure, there are bad Borrowers out there that need to be
addressed as such. But the majority of Borrowers are good people that
honored their loans. They have good histories of honorable dealings
with the banks that were closed. They were not the problem.

In many cases, especially acquisition & development and construction
loans, the FDIC just "repudiated" a valid loan contracts, refused
funding, put the borrowers out of business and breached the terms as
a Lender default.

According to reports from borrowers, Lennar, Rialto and others make
no effort to deal with the borrowers fairly or even equitably under
the law. The borrower is often given little or no opportunity to work
out a solution. Lennar, Rialto and others and their representatives
use the IRS and litigation as a threat to intimidate.

Remember the FDIC uses funds from the banking industry [insurance
fees charged banks] to guarantee depositors' accounts. They do not
use taxpayer money for their primary function, so why are they
allowed to use taxpayer money interest free to run over small
businessmen borrowers, take their property and make profits with a
Wall street partner (Lennar, Rialto, Multibank and others)?

*Action Items:*

-----1. Write up your story. It can be one, two, three pages or more.
You don't have to be perfect. Just explain what happened to you and
how you were treated by the FDIC, your bank, Lennar, Rialto,
Multibank or other company or agency that is working with the FDIC.

Be sure to send a copy of your statement to American Land Rights at
alra@pacifier.com <mailto:alra@pacifier.com>
and ccushman@pacifier.com <mailto:ccushman@pacifier.com>
.

-----2. Contact your Congressman to talk to the staff person who
handles Banking, Financial Services and/or the FDIC. Get his or her
e-mail and forward our material plus your own personal letters. Be
sure to send a copy of your personal letters regarding the FDIC,
Rialto, Lennar and others to American Land Rights. Call any
Congressman at (202) 225-3121.

-----3. Contact both your Senators to do the same as above. You may
call any Senator at (202) 224-3121.

-----4. Contact the two coalitions working to stop this extreme FDIC
abuse: FDIC Rialto Affected Borrowers Coalition (FRABCo), 10013 NE
Hazel Dell Ave #237, Vancouver, WA 98685?FRABCo.org@gmail.com
<mailto:FRABCo.org@gmail.com>
-- 503-972-4080. Check out the FRABCo website:
http://reactioncommittee.com/ <http://reactioncommittee.com/