Comments 1 - 8 of 8 Search these comments
Fact is, the industry loves this influx of opaque money. Money launderers don’t mind paying a little extra. Their priorities are different. So luxury home prices soared, which made everyone happy, including government entities that extract property taxes. And these higher prices trickled down to the rest of the market. But that trend at the high end has now started to turn south.
And it sounds like FinCEN will actually come up with some regulations to crack down on money laundering in the overall US housing market. If that future system has teeth, it would surely be a very unwelcome blemish for the industry – and a further handicap for the luxury segment of the housing market because a whole layer of buyers would lose interest.
I sure hope they do crack down on it.
APOCALYPSEFUCK_is_ADORABLE says
Besides rapid discharges, they should be looking for high-dollar seconds and contemporaneous subordinations.
I have no idea what this means, but it sounds like something to do with premature ejaculation and BDSM.
Lets let the Mafia and Cartels launder a bunch of homes, then old Yeller pumps up the rates, and we get a CRA parte deux......
This could be called trickle in economics....
We get a lot of drug money from Mexico that the drug lords use to purchase safe houses here in San Antonio.
"Lets let the Mafia and Cartels launder a bunch of homes, then old Yeller pumps up the rates, and we get a CRA parte deux......
This could be called trickle in economics...."
Actually Trump deregulating Wall St. could lead to another bubble eventually. We'll be back to the real cause of the original bubble.
Could it just be that the good ole US of A doesn't give a rat's ass if it's laundered as long as the money winds up re-patriated and pols get paid off?
We'll be back to the real cause of the original bubble.
Bubbles been up since 2010 thanks to ZIRP. ZIRP is designed to bubble, but it keeps state government workers highly paid, and the lawyers in the government and private sector profit greatly.
Longest upswing like weve seen in the last 20 years only lasted 7-9 years - please check me on this.
ZIRP is the CRA for everyone!
30%?!? What will happen to the high end housing market if the gov't really cracks down on this?
http://wolfstreet.com/2017/02/24/how-much-money-laundering-in-us-housing-market/
The US housing market has been a perfect platform to launder large amounts of money, no questions asked. Brokers, banks, and other industry professionals played along. There were no reporting requirements. Everyone in the world knew it. And they came to launder their cash by buying expensive homes.
FinCEN has found that about 30% of the transactions covered by the GTOs involve a beneficial owner or purchaser representative that is also the subject of a previous suspicious activity report. This corroborates FinCEN’s concerns about the use of shell companies to buy luxury real estate in “all-cash†transactions.
#housing