Jul 292020

Blogger’s Note – it has been put to me that www.Redstate.com and www.townhall.com are being targeted by Google and “throttled back” in an orchestrated and coordinated attack by social media companies to impose their will on the election. Megalomania is Typical for maladjusted nerds. The unfortunate part for them is the genie is out of the bottle, they and the democrats they whore themselves for can no longer lie (such as calling riots a hoax) with inpuginity. The loss of control for the left must be devastating.

In a real world of ethical people this redstate.com story would be national news. Gavin Newsom is straight out corrupt. Take a look at the latest:

We reported over the weekend that California Gov. Gavin Newsom obtained a $2.7 million cashout refi mortgage on his Fair Oaks estate just 90 days after it was deeded to him by an LLC formed by his cousin, Jeremy Scherer. This photo of the Newsoms, tweeted Sunday by Mr. Newsom, was taken in the backyard of that estate.

Now, it looks like that loan and a similar cashout refi the Newsoms obtained on their Marin County mansion in November 2017 are “sweetheart” deals that aren’t available to even the most qualified buyers. Between the two deals – which haven’t been reported on the Governor’s financial disclosure forms – the Newsoms were provided with $3.8 million in tax-free cash.

(Yes, commenters, they still owe that money to the bank, so it’s not like there are no strings attached.)

Two long-time mortgage professionals who spoke to RedState and who specialize in mortgages and refinancing in this price range were “stunned” that the Newsoms were able to obtain these loans and shared dozens of anecdotes where their own customers or associates weren’t able to.

As we reported, on January 27, 2020, approximately three months after receiving the deed to the Fair Oaks home, the Newsoms obtained a cashout refinance for $2,695,000. That’s approximately 80 percent of the home’s appraised value of $3,700,000. There are some circumstances under which borrowers can receive up to 100 percent of the home’s value in a cashout refinance, but “jumbo” loans (loans over approximately $700,000 in Sacramento County) are customarily restricted to no more than 80 percent of the home’s value. Still, obtaining a jumbo cashout refi is complicated and nearly impossible in 2020. Mortgage professional Thomas Zabel, who’s worked in all facets of the industry since 2005, told RedState:

“Banks tightened up the guidelines on cashout refi’s in 2019, including decreasing the loan-to-value (LTV) percentage and some requiring that the borrowers have $1,000,000 plus in liquid assets available. Even then, a cashout of nearly $2.7 million on a $3.7 million home in January 2020 simply wasn’t available to any qualified borrower that I know of.”

In addition, the Newsoms would need to have the deed for much longer than 90 days before being considered for a cashout refi. An Orange County real estate agent/former mortgage brokerage owner told RedState:

“Borrowers have to have the deed for at least six months to get a cashout refi. Period. Even my highly qualified borrowers with millions in liquid assets are held to that standard. Obviously a bank can make whatever loan they want to make, but there’s no way you or I can walk into a bank and get that kind of deal. It doesn’t exist.”

That wasn’t the first time the Newsoms’ “lucked” into a deal that no one else could get – and both of the refinances were done with the same bank, Union Bank. Prior to their move to Sacramento, the Newsoms lived in a ritzy hilltop home in Marin County with views of the San Francisco Bay. They moved to that home in 2011 from San Francisco, taking out a $1,760,000 mortgage on the $2,225,000 purchase price. They refinanced in 2013 for $2,175,000, and then again in October 2017 for $3,225,000 – netting at least $1 million in cash.

NEW: Gavin Newsom's Undisclosed "Sweetheart" Bank Deals Gave Him $3.8 Million

NEW: Gavin Newsom's Undisclosed "Sweetheart" Bank Deals Gave Him $3.8 Million

Gavin Newsom 2017 Mortgage, Page 3

The home was worth $3.5 million at the time, according to Zillow.

NEW: Gavin Newsom's Undisclosed "Sweetheart" Bank Deals Gave Him $3.8 Million

Assuming that Zillow “zestimate” is correct, that means that the Newsoms obtained a cashout refi for more than 90 percent of the home’s value, which is way outside the norm for jumbo loans. Again, both of the mortgage experts RedState consulted with said there is no way a regular borrower would be offered this loan, even with a sterling credit score, abundant income, and cash reserves.

And, according to a Union Bank rate sheet obtained by RedState, although the bank offers cashout refinancing for primary homes up to 80 percent loan to value (LTV), the maximum a borrower can receive is $750,000.

NEW: Gavin Newsom's Undisclosed "Sweetheart" Bank Deals Gave Him $3.8 Million

Union Bank Loan to Value Guidelines

According to the Wholesale Rate Sheet for Jumbo products, even with a stellar credit score a borrower cannot obtain more than $2,500,000 for a purchase, Rate/Term refinance, or Cash Out refinance, and at that amount, the maximum LTV is 70 percent. The Newsoms’ loans were at 92 and 80 percent, respectively.

NEW: Gavin Newsom's Undisclosed "Sweetheart" Bank Deals Gave Him $3.8 Million

Union Bank Wholesale Rate Sheet, 2020

While this rate sheet is for 2020, the linked underwriting guidelines and required reserves linked are from December 2019, when the Newsoms would have been applying for the Cash Out on their Fair Oaks Home.

The Newsoms still own the Marin County home, though they publicly announced on January 29, 2019, that they were listing it for sale for $5.9 million. The home was taken off the market in June 2019, and they listed it as real property on their 2019 Form 700 (Statement of Economic Interest) and claimed more than $100,000 in rental income.

Because of the potential conflict of interest “sweetheart” loans present, elected officials in California are required to report them on their Form 700. Schedule B, “Interests in Real Property,” states:

“Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows.”

The Marin County refinancing is notably absent from the Newsoms’ 2019 Form 700.

NEW: Gavin Newsom's Undisclosed "Sweetheart" Bank Deals Gave Him $3.8 Million

Between the two homes, the Newsoms have approximately $6 million in mortgage debt.

Californians deserve to know what’s behind these deals. Where did the $3.7 million to purchase the Fair Oaks property originate? Why was Newsom given these deals? If he is such a successful, wealthy businessman, why does he need these cash-outs? Why isn’t the 2017 cash-out reported on his 2017, 2018, or 2019 Form 700’s? Will he report the 2020 cash-out on his 2020 Form 700? Are Newsom’s personal finances as much of a shell game as the State of California’s? What, if anything, does Union Bank expect from Newsom in return for these deals?

Jennifer Van Laar

Jennifer Van Laar is Deputy Managing Editor at RedState and founded Save California PAC. Follow her work on Facebook and Twitter. Story tips: [email protected]


Jul 262020

Got it? Winery? Open. Kid’s 25,000 a week private school? Open. Moving to a County magically not on the “Watch List”? Yup, got that too.

Then there is this bombshell uncovered by Jennifer Van Laar at Redstate:

  • Gavin Newsom’s $3.7 million, 12,000 square foot mansion, on 8+ acres along the American River in Sacramento, was the area’s most expensive home sale in 2018
  • The gated estate consists of a 6 bedroom/10 bath home, a guest house, a pool, a tennis court, and a wine cave
  • An LLC registered to Newsom’s cousin, long-time business partner, and Co-President of PlumpJack, Jeremy Scherer, paid cash for the estate in December 2018
  • Newsom’s spox, though, claimed in Jan 2019 that it was Newsom who’d paid cash for the home – puzzling, since Newsom still carried a $3.2 million mortgage on his prior home
  • In Oct 2019 the LLC gifted the home to the Newsoms free and clear, claiming Newsom was a member of the LLC to avoid a $4,000 Transfer Tax
  • In January 2020 the Newsoms received $2.7 million tax-free when they obtained a cash-out refinance
  • Newsom’s financial disclosure forms don’t mention the LLC or the gifts, which far exceed the $500 limit
  • In 2003, Newsom was cited for failing to disclose $11 million in real estate and business loans

Read the rest of this explosive expose’ here at www.redstate.com.

With that knowledge, the Grant Deed giving the Newsoms title to the Fair Oaks property is evaluated in an entirely different light – it’s now a gift, according to corporate law attorneys RedState spoke to about the transaction. It’s not illegal for an LLC to gift property to a person who’s not a member, but the attorneys said they’ve never taken part in such a transaction nor would they ever allow a client to. Such a transaction raises major red flags for tax and regulatory agencies, they said, since it may indicate attempted tax fraud, money laundering, or a payoff/bribe.

Gavin Newsom has been an elected official in California for 23 years, so he’s been obligated to file annual financial disclosure reports under California’s Political Reform Act for 23 years, and is well aware of his legal obligations to report companies he owns a stake in and allowable/reportable gifts.

Yikes. Given that Gavin Newsom’s popularity is tanking, and that internal party leaders are not as enamored with him as they once were… you have to wonder when they will pull the ripcord on this guy.

Jul 172020

Western El Dorado County has similar demographics to South Placer and Northeast Sacramento County.

As you know from reading the Right on Daily Blog – Gavin Newsom’s children’s school costs 25K a month per kid and was still open as of his edict this morning 7-17-2020.

It is well known in the capitol that Gavin Newsom is selling his residence in Fair Oaks / Carmichael – also a mansion with a 7-Figure pricetag, a gate and guards and moving to the “Serrano” area of El Dorado Hills. I believe it is no coincidence that El Dorado County despite its’ proximity to Sacramento is NOT on any COVID Watchlist. This is alleged to be the location Gavin is buying. I am not sure this is exactly it, but this is consistent with the McMansions in the Serrano area.

We also know that Gavin’s winery was magically on the right side of a line on the map and allowed to stay open until public scrutiny caused it to shut down.

You read on Right on Daily about Gavin’s Children’s Private School still being open. What Newsom did with his edict today was left the door open for all private schools in “watchlist” counties to get waivers in order to re-open. Watch as the exclusive private schools the state legislators send their children to all get waivers. (I’ve been told for example that the school where Lorena Gonzalez sends her children is also open)

This deception in Gavin’s order was done so he could claim even his kid’s school was affected by his order – while ignoring the gigantic trap door. What self respecting school administrator is not going to apply for a waiver coupled with the presence of the children of the powerful?

To be continued…

Jul 162020

Gavin Newsom is expected to announce tomorrow morning 7-17-2020 that he is shutting California Schools Down for the rest of the year. Why? Orange County is styaing open for School and LA County is not.

Newsom already made several draconian moves to cover for his protege Eric Garcetti whose management of LA has been atrocious (over half the new COVID cases are from LA). Now, Newsom is being forced to double-down to cover for Los Angeles County.

Country Day is the $25,000 a year private School Gavin Newsom’s kids attend:

Isn’t that special – so Gavin’s Winery staying open while most others closed was no accident.

From an anonymous School Board member in Orange County – bottom line Gavin Newsom’s thugs in state government have threatened the funding of SoCal School Districts to compel them to shut down. This is in line with the 1-800-RATT-OUT-YOUR-NEIGHBOR hotlines he has set up. Communist police state tactics.

This is California, meantime the CAGOP continues its’ feckless watered down messaging – and the Minority Leader in the Assembly for the GOP celebrates 18,000 felons being released from Prison by the end of August.

Got it? Gavin Newsom – release felons, make it impossible to protect yourself, shut Churches and School down completely.

Thanks to SCOTUS Chief Justice John Roberts who tried to split the baby refusing to assert the rights of Churches to operate – his cowardice is enabling people like Gavin Newsom to run amok. The other four Liberals we expected to rule against religious and academic freedom.

Meantime? Gavin’s kids get to go to school.

Apr 242020

The Sacramento Bee covered a lawsuit filed by Harmeet Dhillon and the Center for American Liberty against Gavin Newsom over giving out welfare checks to illegal aliens.

“We are a nation of laws and California perhaps its own ‘nation-state’ of laws as Governor Newsom might say, but regardless of Governor Newsom’s noble intentions, he may not grant unemployment benefits or other cash benefits contrary to the law,” the petition reads in part.

Dhillon in a statement said that state money intended to address the coronavirus emergency is not “a slush fund for the governor to spend as he sees fit.”

“Governor Newsom is ignoring the proper, and constitutional, channel to appropriate funds. At a time when law-abiding Californians are crushed by unemployment, housing issues, business closures, and massive limitations on our normal lives, Governor Newsom is doing an end-run around the legal guardrails in place,” Dhillon said.

The two plaintiffs in the case are Republican Nominees for Assembly. Ricardo Benitez for Assembly has a Facebook Page you can visit to show support. Jessica Martinez for Assembly has a website and you can donate to her campaign using this page. My research has indicated that not a single incumbent Republican legislator would sign on to this lawsuit, but these two brave LEGAL immigrant Republican candidates did. (More of that re-framing the message?) Given what happened in the AD73 Race, I can not say I am surprised by this at all.

The Center for American Liberty was founded by Harmeet Dhillon in order to defend the rule of law and the rights of Conservatives being victimized in leftist jurisdictions that allow ANTIFA and other groups to commit crime unabated.

On April 13, 2020, Dhillon Law Group, in conjunction with the Center for American Liberty, filed a First Amendment lawsuit in Federal Court challenging the Governor’s criminalization of the free exercise of religion. The following day, a preliminary injunction seeking immediate relief for our clients was also filed. Dhillon Law Group represents two pastors in Riverside County, one pastor in San Bernardino County, and one church member in San Bernardino County.

“The restrictions placed upon our clients are completely discriminatory and arbitrary,” said Harmeet Dhillon, Chief Executive Officer for the Center for American Liberty. “The Constitution doesn’t allow for state officials to treat churches, mosques, synagogues, and temples as second-class ‘non-essential’ organizations.”

“Marijuana dispensaries, liquor stores, fast food restaurants, laundromats, and numerous other businesses are allowed to operate provided social distancing standards are satisfied. The same should be true of houses of worship,” said Dhillon.

“Without immediate judicial intervention, our clients will suffer irreparable harm,” concluded Dhillon.

The Center for American Liberty defends religious freedom against social engineering disguised as stay-at-home orders amidst COVID.

They are also working on the case of Andy Ngo who was brutally assaulted by ANTIFA in Portland. The Mayor of Portland and the local DA are both avowed socialists and have allowed ANTIFA to assault multiple people without legal recourse.

If you care about defending Religious Liberty, the First Amendment and the rule of law – please take a look at the Center for American Liberty and make a donation to fund their efforts. This is not some PAC sending mass emails, this money actually goes straight to fighting court cases. Please donate by using this link.