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Citizens Against Government Waste President Tom Schatz on government-backed mortgage loans to people who owe taxes.
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For example of your money disappearing into thin air at this time according the Government Accountability Office tax cheats we're given one point four billion dollars.
-- government backed mortgage loans under president Obama's economic stimulus all -- millions of tax paying citizens alone allow.
And the administration wants to raise our taxes when they can't even keep track of the money we're -- Alright with me to crunch the numbers when my favorite guys.
-- -- -- -- -- -- It -- thank you Melissa some sort through some of these numbers the FHA insured.
One point four billion in mortgages or 6327.
-- Who all 77 million an unpaid taxes that's an average of 121000 dollars.
Each how did this happen.
You know the Obama administration wants to improve the housing market so they're pretty much willing to give money to anyone these days.
It really is an outrage these people -- two to three times more likely to write fault on alone.
This is taxpayer backed mortgage insurance is an insult all it's hard working people that are having trouble finding.
Financing in a tough housing market.
And it's just another example of how Washington does gives the money away even though this information is available at the IRS and not sharing it with the FHA.
You mentioned a very important point because you said one of the reasons why we care is not just because these are tax dollars -- work.
But also because people who cheat on their taxes they were three times more likely to default on their loans right.
Yeah exactly and we are already in a mess with housing and we're still in a lot of foreclosures the market has not come back this could be solved so easily.
First of all the FH it doesn't require people to say they have tax that.
They're not supposed to get -- -- unless there any repayment plan and the GAO examined eight cases very.
You know they examine them thoroughly.
Five out of the -- these people had no repayment plan of the -- they shouldn't have gotten the insurance in the first ways and means thousands of people.
Are probably getting these insurance backed loans and they're not eligible.
So they're behind on their taxes they're more likely to -- get behind on their mortgage because that's just what the statistics tell you.
It could be solved of the IRS and the FHA if there's computers talk to each other would that have -- The problem it would solve the problem in -- in other circumstances that someone is delinquent on a loan they have to use a the tax.
Doesn't get paid back to them -- I was the IRS uses information it has to prevent people getting refunds if they owe the government money.
But in this case you can get a mortgage insurance through the FHA.
Even if you -- of the -- money because they're just not talking to.
Yet Tom the problem is that now they're gonna say these two agencies just need more people are more money in order to make this happen.
They could use this as an example of why they're underfunded.
I don't think that's the case this information is available as the push of a button you send an email and you say somebody's applying.
Can you please only whether or not they're delinquent and it's it's doesn't require thousands of more people.
And once something is enforce the savings far away any additional cost but in this case we giving away.
Millions of dollars to people that shouldn't be getting it and they shouldn't be getting the loans for their home.
It of people detailed and -- a more than half of them -- the first time.
Home -- -- credit and got 8000 dollars back more more than half of these people who work behind on their taxes and got the -- and maybe defaulted.
They also got their first time home buyers tax credit -- -- story Tom Schatz Citizens Against Government Waste thank you for coming on.
Always insightful.
