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Hillary Clinton And Predatory Lenders

    I was going to post something about this when the subprime crisis was fresher news, but finding sources on the Internet  was pretty time consuming. Embarrassingly enough, some of the sources I found this time around were in books I actually own. The internet has made me just as lazy as it has everyone else.

In a press release in August, Hillary Clinton promised to "crack down on unscrupulous brokers" and "curb mortgage lending abuses". What has not been widely reported are some of the abusive real estate practices the Clintons themselves engaged in through the Whitewater Development Corporation.

In all of the purchase agreements for the lots sold by  WDC there was a clause at the bottom that said  ”In the event that the default continues for 30 days…payments made by the purchaser shall be considered as rent for the use of the premises.” In other words, if there was a default, the buyer didn't just lose their house (which is what usually happens), they also lost their equity. They lost the financial advantage you get from making house payments which does not happen in ordinary defaults.

A man named Clyde Soapes became ill and missed a couple of payments. He not only lost his house, but also all the $11500 dollars he had put into it.  The next buyer lost it after missing just one payment.  They were not alone. Over half the purchasers of Whitewater lots lost them due to missing payments. And it can't be stressed enough that they lost their property AND their equity, which makes Clinton far worse than the "predatory lenders" she berates.

What they did, while sleazy, was entirely legal. This would explain why it's not widely known. Since it was legal, it wasn't a major part of the Whitewater investigation.  But none of that means the media or her political opponents shouldn't bring it up.

These practices are also discussed in Roger Morris's Partners In Power (one of the books  I mentioned in the first paragraph). An excerpt of that book can be found here.