Fair Housing News

• Survey: Mortgage Closing Costs 37% HigherA new federal rule this year requiring mortgage lenders to give borrowers reliable estimates of closing costs appears to be working — whether it’s also costing borrowers more money is uncertain. A recent survey by Bankrate.com found that, on average, origination and third-party fees on a $200,000 purchase mortgage added up to $3,741 — a 37% jump over last year’s average of $2,739. The fees can include appraisals, credit reports, a closing or settlement attorney and surveys. August 31, 2010
• Using Private Eyes to Keep Track of TenantsIn a high-rent borough like Manhattan with plenty of rent-regulated apartments ripe for exploitation, real estate investigation has long been a big business. Private detectives say it has picked up in the past year as some New Yorkers have tried to find extra money by moving out of their apartments and subletting to other renters for more than they are paying, which is not allowed. And, of course, there are landlords pressed for cash, trying to root out people who are using rent-controlled or rent-stabilized apartments illegally. This would allow the landlords to find new tenants and raise the rent by 20 percent or more under state housing law. During the speculation boom of the last decade, some large landlords were accused of using private investigators to harass legal tenants out of their apartments in order to raise rents to cover large mortgages and increase their profits. August 31, 2010