Political contenders upset with disclosure of sub-prime mortgage firms links

Real estate has its fan following in the political segment too. Currently there was much hype about the links of Democrat John Edward, Presidential contender with links with foreclosure-filing firms. He is a topic of discussion among foreclosure critics. His associations with the sub-prime lending arms of Fortress Investment Group have provoked critics to raise their agony against him.

In May, the Federal Election Commission released their report notifying Mr. Edwards’s vocation in Fortress. Mr. Edward joined Fortress in the second half of 2005 as an employee. At that time, the firm’s own unit “Green Tree Servicing LLC” had already filed a foreclosure suit against Katrina victims. During his course of service in the firm, Fortress got hold of Nationstar Mortgage LLC. In 2006, he left the firm after receiving his due remuneration. While departing, he invested one-half of his earned amount in Fortress funds. Now, Fortress counts Mr. Edward among the top class of their political contributors. They have also deposited huge amount of money into his political campaign.

Well, this is not the first time when Mr. Edward is engaged in this discussion for his links with foreclosure filing companies .Before this, soon after Katrina hit in May, Green Tree’s letter reached an old lady asking her to either pay the mortgage amount, or else see her house getting foreclosed. This letter was sent when most of the mortgage firms in the business where opting for an alternative of a house payment holiday for the sufferers of the storm.

Mr. Edward, unhappy with what was happening, for obvious reasons, said that he was unaware about the foreclosure suits filed by Green Tree. He said he was talking to the people at Fortress, and that the matter would get sorted out soon. He also added that he had no idea about the links of Fortress with sub-prime mortgage units. He joined the private equity firm with an intention of learning finance. His profile was to supply information about the economic behavior of the U.S. and the foreign nations. He said that the diverse nature of the firm made it very difficult for him to understand their operations.

Apart from Mr. Edward, Republican Mitt Romney is also in the list of people having their links with sub-prime mortgage companies. Mitt Romney’s association with Bain Capital, a private equity firm, is also a hot topic nowadays. Bain Capital has filed many foreclosure suits and thereof forced people to leave their houses.

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