A Brooklyn man living in an apartment with his two daughters was alerted to the fact that his in-foreclosure-home had been broken into and occupied by Occupiers, as in Occupy Wall Street activists. When he rushed to his home he found a group of strangers that had broken into his home claiming to have “reclaimed” the house and given it to another family.

“They’re trying to take a house and say the bank is robbing the people because the mortgage is too high — so contact the owner!” fumed Wise Ahadzi, 28, who owns the home at 702 Vermont St. in East New York.

Apparently Ahadzi had bought the house in 2007 for the princely sum of $424,500 but during the housing bubble of 2009 the house ended up being worth only half that. Then, when he lost his job and got behind on the mortgage, the bank foreclosed on the property.

Enter — illegally, mind you — Occupy Wall Streeters who discovered the home in foreclosure and decided that they’d steal it away from “the bank” with the ostensible goal of helping the needy.

Ahadzi is rightfully indignant that they didn’t contact him so that they could help him retake possession of his own house. Ahadzi also asked why they didn’t try to help him and his two daughters to which the Occupiers claimed he “didn’t qualify” because he wasn’t in their group. “Why can’t you fight for me?,” he wondered.

So, who did they want to “give” the house to? An organizer for VOCAL-NY — a gay rights activist group. A fellow with a job and one that belongs to their own group, yet.

Worse, when Ahadzi got to his home he discovered that the Occupiers had taken all his personal belongings and shoved them in a pile in the basement and then began to tear out walls and “remodel” the place, spending, they claimed, over $9,000 in the effort.

This isn’t a lone incident, either. It is apparently an idea that the OWSers are going to try and push nation-wide. At a recent Chicago OWS rally, for instance, a purported Lutheran pastor preached an OWS sermon urging OWSers to do the same thing in the Windy City.

John Ruberry attended the speech and notes that Reverend Tom Gaulke told those assembled that they were going to repeat the New York efforts.

“We will be supporting a homeless family in reoccupying a vacant house,” the reverend claimed.

As Ruberry notes, this is called trespassing.

So, what have we learned form this? We’ve learned that OWS is not altruistic in anything they do even as they claim the mantle of Mother Theresa — well, Mother Theresa if she engaged in rapes, drug abuse, deaths, racism, anti-Semitism, property destruction and general lawlessness, anyway.

We’ve learned that, like any self-interested Wall Street Banker, the OWSers only want to enrich themselves and help their own members. They aren’t really interested in helping defend the poor and downtrodden. Just helping themselves.

Both versions of this bill impose a permanent new tax on every mortgage backed by Fannie Mae and Freddie Mac.

To pay for an additional two months of tax relief under the Senate version or 12 months under the House version, more than $3,000 of new taxes will be imposed on every $150,000 mortgage backed by Fannie or Freddie.

A family taking out a $250,000 mortgage will pay $5,000 more in taxes–directly and solely because of this bill– hidden in their future mortgage payments.

This is atrocious public policy.

It shifts the burden for this bill to future homebuyers, kicks the housing market when it’s already down, makes it that much more expensive for home buyers to re-enter that market, and adds to the pressures that have chronically depressed everyone’s home values.

That’s the reason that both the Senate and the House versions need to go back for major revision.

Daniel Mudd, the former chief executive officer of Fannie Mae, andRichard Syron, ex-CEO of Freddie Mac, were sued by the U.S. Securities and Exchange Commission for understating by hundreds of billions of dollars the subprime loans held by the agencies.

The lawsuits filed today in Manhattan federal court were followed by an SEC statement that it had entered into non- prosecution agreements with each lender. Fannie Mae, the government-sponsored enterprise which issues almost half of all mortgage-backed securities, and Freddie Mac, the McLean, Virginia-based mortgage-finance company, had “agreed to accept responsibility” for their conduct, the SEC said.

In the lawsuits, the SEC said Syron, Mudd and others understated the lenders’ exposure to subprime mortgage loans. From 2007 to 2008, Freddie Mac executives said the company’s exposure was between $2 billion and $6 billion when it was actually as high as $244 billion, according to one SEC complaint. From 2006 to 2008, Washington-based Fannie Mae executives said the firm’s exposure to subprime mortgage and reduced documentation loans was about $4.8 billion when it was nearly 10 times greater, according to the regulator.

“Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was,” Robert Khuzami, director of the SEC’s enforcement division, said today in a statement. “These material misstatements occurred during a time of acute investor interest in financial institutions’ exposure to subprime loans, and misled the market about the amount of risk on the company’s books.”

Read more here.

Massachusetts Senate candidate Elizabeth Warren could be the poster child for the law of unintended consequences.  Warren’s career was built upon advocacy of government regulations that created bigger problems than those she initially addressed.  As the problems compound, so does her call for even more government red tape.

All of this mader her a hero to the progressive community, a Harvard professor, an advisor to the president and a creator of a new regulation-pushing agency of government known as the Consumer Financial Protection Bureau (CFPB).  Maybe once, she will get something right but don’t hold your breath. The housing market collapse is a case in point.

In 1994, President Clinton and his cronies laid the groundwork for the creation of the Housing Bubble and the Wall Street crisis a decade later.  The Investors Business Daily uncovered a “smoking gun” memo that declared war on a near invisible enemy – racism is mortgage lending:

At President Clinton’s direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.

The threat was codified in a 20-page “Policy Statement on Discrimination in Lending” and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.

This government edict unleashed a wave of mortgage lending – including a significant number to those who could never pay back their loans – that ultimately lead to the collapse.

Rather than recognizing that a government edict led to the demise of the economy, Elizabeth Warren and her protégé, Richard Cordray not only called for more government regulations to fix the problems that the initial government regulation created, but Cordray took it a step further – suing companies who took advantage of the new government rules.  Cordray took advantage of the lawsuits by gathering hundreds of thousands of dollars in political contributions for the state Democrat Party, but that story is for another day.

Warren declared that a new government agency – the CFPB – would police Wall Street and Main Street for abuses of the free market.  The president cited a fee increase from Bank of America as an example of where the CFPB would be empowered to roll back.  The president failed to mention the fee was a response to another government action –price limits imposed on credit card transactions by the reform bill he signed into law.

The Investor Business Daily’s investigation into the subprime mess offers compelling evidence that should cast a distressful light on the CFPB.

The CFPB has been empowered to regulate nearly every financial transaction known to man.  From banning “payday loans” to limiting fee increases, this government agency will compound existing problems and call for more government regulations to addresses the inequities they created with their mandates.  This of course will be destructive to the economy, but given Cordray’s past, its safe to assume it will be profitable for the DNC.

And unless unaccountable structure of the CFPB is changed (or the agency repealed outright), there will be little Congress can do about it.

While not blameless, Wall Street is an easy scapegoat. And investment houses that made billions slicing and dicing mortgages into CDOs, derivatives, credit default swaps and other exotic paper are easy to demonize. But the problem wasn’t these financial instruments. Or even the obscene profits they generated. Mortgage-backed securities were nothing new, and we’ve always had speculation in the market.

The problem was the underlying assets: low-quality mortgages. We’ve never had so many junk home-loans poisoning the financial well before. And who poisoned the well? Washington and its affordable-housing policies.

It was Washington that declared prudent home-lending standards racist and gutted traditional underwriting rules in the name of diversity. It was government that created the risk on Main Street.

Yes, Wall Street spread it, with the help of Treasury-backed Fannie and Freddie. But who’s at greater fault for harming the village — the person who poisons the well or the one who distributes the water?

Read more here.

In Thursday’s retirement announcement, [U.S. Rep Dennis] Cardoza said he’s “dismayed by the administration’s failure to understand and effectively address the current housing foreclosure crisis.”

“Home foreclosures are destroying communities and crushing our economy,” he said, “and the administration’s inaction is infuriating.”

Cardoza also took a shot at the news media for what he characterized as a “general lack of attention to moderate members of Congress.”

The focus on partisan bickering in the press, he charged, has only exacerbated the polarization of the country and the dysfunction in Washington.

The 52-year-old Blue Dog charged that voters share the blame for the current political environment, arguing that “voters need to reward statesmanship” above showmanship.

“Too many Americans are losing faith in our government and our democracy,” he said. “For our country to change course, voters must aggressively punish extreme partisanship and rhetoric when they cast their ballots.”

Cardoza is the third Blue Dog Democrat to announce his retirement this year. Reps. Dan Boren (Okla.) and Mike Ross (Ark.) have also said they are not running for reelection.

Read more here.

Sales of new homes fell to a six-month low in August. The fourth straight monthly decline during the peak buying season suggests the housing market is years away from a recovery.

The Commerce Department said Monday that new-home sales fell 2.3 percent to a seasonally adjusted annual rate of 295,000. That’s less than half the roughly 700,000 that economists say must be sold to sustain a healthy housing market.

New-homes sales are on pace for the worst year since the government began keeping records a half century ago.

High unemployment, larger required down payments and tougher lending standards are preventing many people from buying homes. Plunging stocks and a growing fear that the U.S. could tip back into another recession are also keeping people from entering the housing market.

Pierre Ellis, an analyst at Decision Economics, said that until wages increase and hiring picks up, home sales will languish.

The “bad news is the evident absence of optimism that sales will pick up to any degree,” Ellis said.

While new homes represent less than one-fifth of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

Last year was also the fifth straight year that sales have fallen. It followed five straight years of record highs, when housing was booming.

The median sales price of a new home fell nearly 9 percent to $209,100—the lowest price since last October. That suggests builders are slashing their prices in order to compete with comparably lower-priced previously occupied homes.

Read the whole thing here.