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He became one of the people who helped cause the global financial crisis — which, as unlikely as it sounds, was the kind of thing that could happen to a God-fearing man selling houses in a hot property market such as Bakersfield in the past decade. Cole and his confederates found themselves facing the temptation of a lifetime.
They could cheat people who knew less about their local property market than they did — out-of-town bankers who came to Bakersfield to buy mortgages to package into bonds, but left their brains back east, or wherever it was they came from. It was easy money for people who had known hard times, but it put Cole on the wrong side of the law. Cole is to be sentenced on February 18 for his role in a mortgage fraud case that helped turn Bakersfield into one of the home foreclosure capitals of the US.
Under federal guidelines, Cole could be sent to prison for more than 15 years. In any case, at 66, Cole faces another sad trip to another new place — prison — and the hard work of explaining to others and to himself how a country boy who got his second chance wound up making such a mess out of it.
I met Cole during his final weeks of freedom in California in the company of his lawyer, Katherine Hart. Cole is a very complicated guy. He is a political conservative who rejects the theories of Charles Darwin and listens regularly to the rightwing radio commentator Rush Limbaugh. He is also a dedicated environmentalist — the author, under a pseudonym, of a series of online books called Sustainable Me — and a rascal.
His grey hair is receding, his glasses have wire frames and his voice is high and softened by the accent of his native south.
Although his memory can get fuzzy when it comes to his legal problems, he is an able raconteur. He went away to Bob Jones University in South Carolina — a Christian school that is perhaps best known for having banned interracial dating until the year — but returned home to begin his life as a man. Things fell apart in Cole says it all started when he expelled three students for smoking pot. One of them, an year-old boy, claimed he had engaged in a sex act with his principal.
Charges were filed against Cole by authorities in North Carolina that March, his lawyer says, and although Cole denied them, he began to look for a job at Christian schools in other places. He found one in Bakersfield and took his wife and young sons there in June.
Two adages of Bob Jones Sr proved especially inspirational. Bakersfield was a fitting place for Cole to start over. People came to Bakersfield because it was the kind of place where they could make a living with their hands — in oilfields and farms and the businesses that grew up around them.
Its farms sell billions of dollars of grapes, almonds, milk, citrus, pistachios, cattle, calves, carrots, hay, alfalfa, potatoes, pomegranates and other agricultural products. These economic underpinnings make for a local culture tougher-minded than the touchy-feely variant on the sunny coast — as well as a population that is poorer and less well-educated.
Made popular by artists such as Buck Owens and Merle Haggard, it was harder-edged than the syrupy offerings pouring out of Nashville, and it gave voice to the anger and anxieties of the poor and working-class.
Cole struggled at first to find himself — or a job — in Bakersfield. But it helped that he was a churchgoing man. He found the strength to share his story with a fellow parishioner, and that new friend gave Cole a job as an estimator for his roofing company.
Bakersfield gets cold in the winter and the lanky Cole had to learn to keep his balance on icy roofs. Cole eventually got his real estate licence and for about the next decade, he worked in roofing and sold houses on the side, steering clear of trouble. It happened on a Sunday after church. The Coles had just finished eating at a buffet restaurant when Becky asked Carl if he had left a tip.
So Cole headed back to their table — and heard a voice. It was Kyle Carter, owner of a real estate company where Cole had interviewed with another executive. To Cole, this was the sign — the one for which he had been waiting as he tried to decide whether to give up roofing entirely for the home-selling life. To me, it was just too obvious … The next day, I was working for him. Miraculous things seemed to happen to Cole with regularity.
There were more curious coincidences, including one in that brought him face to face in the Kyle Carter offices with another young man who would change his life: Cole had met Crisp several years earlier when he sold a house to his mother, Tu Crisp — an immigrant from Vietnam who had to raise seven children on her own after her husband was sent to prison for passing bad cheques, according to local press accounts.
After finishing high school, Crisp had gone to work to support his family, waiting on tables at a Tex-Mex restaurant and unloading UPS trucks at night. I sat there for a couple of seconds and I followed him into the parking lot. The cocky Crisp would come up with crazy ideas and the conservative Cole would try to make them happen.
They worked as partners for other people for several more years, and then set out on their own in Their timing was amazing. The Bakersfield property market was on fire. House prices rose at a clip of more than 3 per cent — a month — on their way to reaching record highs in June , according to statistics kept by the widely acknowledged guru of the local property market, a veteran appraiser called Gary Crabtree.
Buyers, meanwhile, could get loans covering the entire cost of a home because banks wanted those mortgages so badly. Their attitude was perhaps best summed up by one of the Bible verses they discussed at sales meetings. To display its homes for sale, the firm produced a television programme that ran several times a day.
It was just phenomenal. The firm sat at the local end of a global supply chain. Its scores of employees were creating hundreds of mortgages a year for banks, which were then packaging the home loans into securities sold to investors around the world — the ultimate source of most of the money used to fund US house purchases, then and now. The conceit of the bankers involved in this trade was that the mortgages they were buying were a kind of commodity — like the crude coming out of a Bakersfield oil well.
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