The Ghost of Roland Arnel Looms Over The Housing Collapse
Roland Arnel was a pioneer in creating the sub-prime mortage market. His company Ameriquest funded over 70 billion in loans in 2004 and was worth over 3 billion dollars. Arnel started his business career selling flowers on the street corners of Los Angeles before getting into the mortgage business. His company specialized in mortgages for people with bad credit. Initally he helped a lot people get houses that normaly would have been locked out of the market,which helped not hurt the economy.
Problems started when mortgages where being mass produced so they could be bundled into packages. THe mortgage companies main concern then became feeding the hardy appitite of investors who clammored for mortgage packages. After all it was a gurenteed investment and what could go wrong with housing.
Arnel became enormously wealthy and was a big contributor to polticians like Govenor Arnie(the businessman) and George Bush. The polticians in turn looked the other way as the mortgage and banking industry made billions feeding this tremondous demand for mortgage packages. Arnel one of the richest men in the state was the link between the mortgage industry and the politians who closed their eyes to what Arnel and his comrads where doing. Arnel at a cost well over 20million bought and refurbished the home of Joseph Shank one of the early founders of the motion picture industry. George Bush appointed him as an ammbasodor to Luxenburg.
Then suddenly everything went into reverse for Arnel. His son became sick so resigned his position as ambassador and came back home. His company was of the first to be hit by the mortgage crisis and he was forced to sell it in pieces to his competitors. Arnell then discovered he had cancer and died soon afterwards. In the span of 3 years he went from being one of the wealthiest and most powerful men in California to a broken sick man
While Arnel has made his transition to a more peacful place we still here on earth must now deal with the aftermath of his mortgage bundling party.
Problems started when mortgages where being mass produced so they could be bundled into packages. THe mortgage companies main concern then became feeding the hardy appitite of investors who clammored for mortgage packages. After all it was a gurenteed investment and what could go wrong with housing.
Arnel became enormously wealthy and was a big contributor to polticians like Govenor Arnie(the businessman) and George Bush. The polticians in turn looked the other way as the mortgage and banking industry made billions feeding this tremondous demand for mortgage packages. Arnel one of the richest men in the state was the link between the mortgage industry and the politians who closed their eyes to what Arnel and his comrads where doing. Arnel at a cost well over 20million bought and refurbished the home of Joseph Shank one of the early founders of the motion picture industry. George Bush appointed him as an ammbasodor to Luxenburg.
Then suddenly everything went into reverse for Arnel. His son became sick so resigned his position as ambassador and came back home. His company was of the first to be hit by the mortgage crisis and he was forced to sell it in pieces to his competitors. Arnell then discovered he had cancer and died soon afterwards. In the span of 3 years he went from being one of the wealthiest and most powerful men in California to a broken sick man
While Arnel has made his transition to a more peacful place we still here on earth must now deal with the aftermath of his mortgage bundling party.
posted by thedetroittimes at 2:22 PM
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