10.29.08
Bryan Daniel’s role in the financial crisis
In 2001, Bryan Daniel was appointed to head up the United States Department of Agriculture (USDA) Rural Development Program (RDP) in Texas. The RDP is essentially a bank. It doles out tax dollars in the form of grants and low-interest loans with the important directive to spur economic growth in Texas’ depressed rural areas.
Only, under Bryan Daniel, the RDP in Texas was fixated on funding sub-prime home mortgages. [UPDATE: USDA-backed loans require a good credit rating, and are definitely not sub-prime.] In this press release, Daniel makes his pitch:
“With mortgage interest rates continuing near their lowest levels in recent history, now is the time to stop paying rent and purchase your own home,” said Daniel. “Our Guaranteed Rural Housing loan program is the best option for eligible low and moderate-income applicants to move into a home without a down payment.”
When the history of the 2008 financial crisis is written, aggressive mortgage lenders will hold their share of the blame for encouraging borrowers to over-extend themselves. Here’s another line from the same press release:
Without expensive mortgage insurance premiums, homebuyers can qualify for a “better” home, which could mean the additional bathroom or bedroom that they may desire. Also, homebuyers may include their two percent fee in the loan. This will have a minimal impact on their payments yet maximize any cash reserves they may have.
When Bryan Daniel identifies himself as a small businessman, remember that he took a United States government checkpractically every month from the time he left Texas Tech University, first as a staffer for former Rep. Larry Combest (R-Lubbock), then as the head of RDP Texas, until about one year ago.
Coincidentally, last November local Republicans were scrambling to recruit a candidate to replace retiring Mike Krusee. A plum appointment to a corporate board was convenient, since it would allow Daniel to continue drawing a paycheck while he ran his campaign. Any coincidence that Dan Gattis, Sr., who as County Judge would be a key player in the recruitment effort, serves alongside Daniel on the Ag Mutual Auto Insurance Board of Directors? Any chance that Gattis had a hand in helping him get appointed? This stinks.
Now we find out that Tom Craddick and Bob Perry have funded Daniel’s smear campaign against Diana Maldonado.
Bryan Daniel, the Republican hoping to keep Williamson County in the red, had been severely lagging behind Democrat Diana Maldonado in fundraising. But in the last month he took in more than $517,000, a huge sum of money for a House race. Almost half that amount – $236,089 – came from Texans for Lawsuit Reform. Also, Bob Perry gave him $50,000. Craddick’s Stars Over Texas PAC, $55,000.
Daniel claims on his campaign website to be a small businessman. In fact, he’s been on the government payroll. The Bush administration has a reputation for appointing young, inexperienced, ideologically extreme people to positions in government. Bryan Daniel certainly fits the profile. It is pretty clear that Daniel, at least through 2007, was no small businessman. He was paid by you and me. He was also in charge of a giveaway program. That he marketed government subsidized and backed loans in a way that helped bring about the meltdown further proves his lack of integrity and foresight.
The irony of having a fanatic Republican working for a state-owned bank, while their party’s nominee for President accuses the Democrat of being a Socialist is rich. Bryan Daniel is no small businessman. He’s a shill and a huckster who will allow Bob Perry to buy off the state legislature. Where do you think Perry stands on the issue of implementing the Sunset Commission’s recommendation to abolish the Texas Residential Construction Commission? (Hint: here’s a clue.) Perry is not going to allow his pet legislation to be overturned simply because the Sunset Commissions says it is “doing more harm to homeowners than good”. The TRCC is doing exactly what Perry intended it to do: protect him from being sued for selling defective product. Now Perry’s trying to buy a legislator to represent him.
ENOUGH.
Tell these Republicans we’re not buying any more of their snake oil. Vote Democratic! Take five people to the polls with you. Throw the bums out!
Texas Progressive Alliance Weekly Round Up Nov. 3, 2008 | BlueBloggin said,
November 2, 2008 at 10:18 pm
[...] The issues concerning voters in HD-52 include the Trans-Texas Corridor, insurance reform, and the economy. No matter the issue Diana Maldonado is the best choice in [...]