Republican lawmakers question how the DOJ came up with a way to bypass Congress and funnel money to special interest groups.
A bank settlement deal resulting from mortgage abuse charges is going to help third party, special interest groups, instead of helping the real victims of the housing crisis, claims House Financial Services oversight subcommittee Chairman Sean Duffy, R-Wisconsin.
“Rather than have the settlement money be placed in the U.S. Treasury, at which point it would be subject to congressional authority, DOJ and the Department of Housing and Urban Development gave the banks the option of sending money to an approved list of third-party groups,” reports the Washington Examiner.
One third-party group receiving the money is none other than La Raza, the radical group that promotes open borders and fights for benefits, housing and drivers’ licenses for illegal immigrants. Reportedly, La Raza has received $1.5 million of the funneled money so far.
There is a financial incentive for the banks to dole out the money to these groups, instead of helping struggling homeowners directly. For example, every dollar the bank donates to a HUD-approved housing counseling agency, it receives two dollars in credit towards its total settlement obligation. The scheme came to light in 2014, but it was never stopped.
HUD Director is Julian Castro (former Mayor of San Antonio). He was appointed on July 28, 2014. His mother is one of the original founders of La Raza. Castro is on the list of potential VP’s for Hillary Clinton.
Sign up to get breaking news alerts from Dennis Michael Lynch.
Pakistani Man Caught Entering US at Mexico Border