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Home Solar Energy Systems on Hold for Better IncentivesCongress passed new and extended tax credits with the financial bailout package that are expected to prompt thousands of people to add solar- and wind-energy systems to their homes. But the incentives for some systems are so much better than existing tax credits that many people also are delaying their home improvements until next year when the new credits kick in. The new incentives will slash an additional $7,000 or more off the cost of a solar-energy system compared with today’s credits, and $4,000 more off household wind turbines. November 3, 2008
JPMorgan Ramps up to Modify $70B in Mortgage LoansJPMorgan Chase (JPM) said Friday that it is expanding its program to modify mortgages to try to avoid foreclosures on up to $70 billion in loans. The loan-modification program will also be offered to customers with loans held by Washington Mutual and EMC. JPMorgan acquired Washington Mutual last month after the bank became the largest in the nation’s history to fail. EMC was a mortgage unit of Bear Stearns, which JPMorgan acquired in February. November 3, 2008
Now Is the Time for Those Bottom-Feeders to Do Their WorkBring on the vultures. I mean that in the most flattering way possible, you dear deep-pocketed real estate investors with access to credit. We need you. Without investors, it will be nearly impossible to get rid of the glut of unsold homes, especially the ones in the worst shape. Eager but cash-strapped first-time buyers aren’t the ones who will buy a foreclosure and spend tens of thousands of dollars to rehab it into a home. Investors, the buzzards who clean up what others won’t touch, do that for the real estate market. November 3, 2008
A Crackdown on Credit ‘Fixes’With foreclosures, short sales and credit card defaults at record levels, an aggressive breed of firms has sprung up, offering to power-wash consumers’ damaged credit files and boost credit scores, thus eliminating records of bankruptcies and mortgage delinquencies, even when the information is accurate. Such services — promoted widely on the Internet and in radio ads — are especially attractive to people who want to buy a house but whose credit scores are too low for a mortgage through the Federal Housing Administration, Fannie Mae or Freddie Mac. November 3, 2008
Saving Energy In a Return to New Orleans’s Lower 9th WardOn a sliver of a demolished chunk of the Lower Ninth Ward is a cluster of modern homes being readied for the return of families. Here is cutting-edge design in an unlikely landscape. The state-of-the-art, energy-efficient residences were designed by prominent architects and experts brought together by the Make It Right foundation, driven by actor Brad Pitt. The homes stand next to concrete slabs that are all that is left of houses bashed sideways by a levee break during Hurricane Katrina three years ago. November 3, 2008
Figuring Out Who Owns a MortgageWhen you write your monthly mortgage check, your signature may be the first stop on a journey that takes your money to the other side of the world. Chances are, your bank has resold your mortgage, and the Chinese government, a teachers’ pension fund in the Netherlands or even one of your own mutual funds may own a slice of it. How did that happen? November 3, 2008
Bargain Hunters Help Shrink Housing GlutLower home prices are luring some buyers back into the U.S. housing market, but foreclosures and a weakening economy are likely to keep downward pressure on prices for at least another year, economists say. A quarterly Wall Street Journal survey of housing data in 28 major metro areas shows that the glut of unsold homes listed for sale is shrinking in most of them. In many cases, sales have been stimulated by investors who are grabbing what they see as bargains on homes that can be turned into rentals. Metro areas with the biggest drops in for-sale signs include Sacramento and Orange County in California and the Virginia suburbs of Washington, D.C. November 3, 2008
10 Ways to Protect Your Home InvestmentYou flip the switch and the heat goes on. You make your mortgage payments and your lender is not threatening you. So all’s right with the house. Or not. The furnace needs professional maintenance to run efficiently and the mortgage isn’t the only payment you need to be on top of. Even in this market, when real estate prices are falling, a home is likely to be the biggest monetary investment their owners make. But homes need TLC so they don’t crumble physically or financially. November 3, 2008
Jesus Statue Prompts DisputeFor Daniel Long, the four-foot-tall statue of Jesus Christ outside his apartment’s patio door is a symbol of his faith and devotion. For the owners of the Colonial Crest apartment complex where Long lives on Muncie’s west side, the statue is a potential violation of federal fair housing laws and a possible affront to people of other religious beliefs. “I’m not promoting any church or discriminating against any church,” said Long, 71. “This is just my own personal thing.” Long’s voice choked as he talked about why he wanted to display the statue. November 3, 2008
Squatters ‘Delay’ Bristol Affordable HousingA housing association says squatters are holding up its plans to renovate a building in St Paul’s to create affordable homes. Places for People says it wants to help first-time buyers and families urgently in need of housing by refurbishing 87 Ashley Road, a four-storey Georgian townhouse that it owns. But the building has been illegally occupied since April and is now home to a group of 20 squatters. The squatters, a group of men and women who say they are taking good care of the building, are refusing to move, claiming Places for People has not made its intentions for the house clear. November 3, 2008
There’s a Cooperative Way Out of This Financial MessWhat caused our current economic crisis? It was greed, deregulation, predatory lending, or so popular thought goes. Mortgage lenders and Wall Street are guilty of many of these accusations. But there’s one major flaw in the logic of this finger-pointing — these are symptoms, not causes, of our financial system. In other words, it’s the nature of the beast. Investor-owned businesses, pressured by investors’ beckoning for higher returns, place the highest value on profit. An unsatiated pool of investors can flee, destroying a company’s primary source of capital and bankrupting the business. For business leaders, this is clearly not an option. November 3, 2008
MICHAEL FLYNN NAMED HUD’S ACTING GENERAL COUNSELU.S. Department of Housing and Urban Development Secretary Steve Preston today announced Michael Flynn will serve as HUD’s Acting General Counsel. Flynn previously served as the General Deputy General Counsel to the Department. “I am pleased that Mike will serve as HUD’s Acting General Counsel. Mike’s broad legal expertise and deep familiarity with HUD will ensure he remains a tremendous asset to the Department and the people we serve,” said Preston. Flynn will oversee approximately 370 attorneys and 320 staff at HUD. He will serve as the chief legal advisor to the Secretary, Deputy Secretary, and other principal staff, providing advice on federal laws, regulations, and policies that affect HUD programs and families served by the Department. He will also maintain his position as Counselor to the HOPE for Homeowners Board of Directors. November 4, 2008
Government Sees Fewer Getting Mortgage ReliefThe government expects only 20,000 troubled borrowers will apply to refinance into more affordable home loans by next fall under a new mortgage aid program passed by lawmakers over the summer.The $300 billion ‘Hope for Homeowners’ program was launched Oct. 1. Designed by lawmakers eager to respond to the mortgage crisis, the Congressional Budget Office had projected it would let 400,000 troubled homeowners swap risky loans for conventional 30-year fixed rate loans with lower rates. November 4, 2008
Thousands of Foreclosure Scams Yield a Small Number of Criminal ChargesThe Minnesota Homeownership Center says 66,000 homes have been foreclosed on in Minnesota the past three years. Many of those who lost their homes made bad mortgage decisions and got in over their heads. But prosecutors say a significant number of those 66,000 people were cheated out of their homes with so-called toxic mortgages or scams intended to strip them of their equity. November 4, 2008
Neighbors Wary of Recovery HousesAfter some Northbrook residents complained to police about the late-hour comings and goings of their neighbors, officials discovered that two upscale homes are being used as a temporary haven for recovering substance abusers. The six-bedroom brick homes on Maple Avenue hardly look like typical halfway houses. Originally priced at $1.1 million, they are advertised as “newly built with all the finest upgrades, marble, granite, steel appliances, rounded corners and archways… . with plasma TVs.” November 4, 2008
The End of Easy CreditThe election may be over, but having a new president won’t put an end to the recessionary issues affecting this economy. Just consider the recent Federal Reserve report that found that lending is tight and probably going to get tighter. About 85 percent of domestic banks — up substantially from 60 percent in July — reported having tougher lending standards for large and middle-market business loans, according to the Federal Reserve’s Senior Loan Officer Opinion Survey on Bank Lending Practices. About 75 percent of banks tightened their lending standards for small firms over the same period. November 6, 2008
Mayor Cancels Rebates for HomeownersMayor Michael R. Bloomberg said on Wednesday that he would immediately halt a popular $400 property tax rebate and that he might need to raise the city’s personal income tax by up to 15 percent to help plug a budget shortfall expected to hit $4 billion in the next two years. The announcement that the rebate checks, which had been sent out every year since 2004, would not be coming this fall angered members of the City Council. Mr. Bloomberg also warned that the city’s portion of the state sales tax might need to be increased by roughly 3 percent. November 6, 2008
Baltimore OKs Buying Property for CasinoThirteen hours after Marylanders voted to legalize slot-machine gambling, Baltimore officials approved yesterday the city’s $4.1 million purchase of land south of downtown for a proposed casino.In Anne Arundel County, officials predicted a zoning battle over slots at Laurel Park even as the track’s operator, the Maryland Jockey Club, announced intentions to bid for a slots casino there. And at the state capital, Gov. Martin O’Malley and the leaders of the General Assembly’s two chambers launched a candidate search for a commission that will award five potentially lucrative slots licenses to gambling operators. November 6, 2008
Obama Housing Plan Likely Won’t be EnoughPresident-elect Barack Obama is inheriting the worst housing recession in a generation, and the proposals he outlined on the campaign trail won’t fix it, so there will be many tough decisions ahead. His plan includes a 10 percent mortgage tax credit for homeowners who don’t itemize their taxes, and a change in the bankruptcy law to allow judges to modify mortgages for financially distressed homeowners. Obama’s Web site also says he will “fight mortgage fraud and protect consumers against abusive lending practices,” and standardize loan forms to make it easier for borrowers to understand the true costs. November 6, 2008
Schwarzenegger Makes Proposal to Help Home Owners Facing ForeclosureIn another effort to turn back the tide of California home foreclosures, Gov. Arnold Schwarzenegger made a proposal Wednesday designed to push mortgage lenders to modify more loans, allowing owners on the brink of foreclosure to stay in their homes. Under the proposal, which must be approved by the Legislature, mortgage lenders or servicing companies who file “notices of default” against mortgages on owner-occupied California homes would be forced to accept a 90-day “stay” of the foreclosure proceedings unless they meet certain conditions. Those include proving to state officials that the company has an “aggressive modification program” in place, said David Crane, the governor’s special advisor for jobs and economic g rowth. November 6, 2008
Renter Alleges DiscriminationA Sioux Falls couple is accused of housing discrimination in a lawsuit filed Tuesday in U.S. District Court in Sioux Falls. The lawsuit, filed against Phyllis and Richard Rogers and their company - Triple R Industries - claims that Phyllis Rogers told a new tenant of 117 N. Trapp Ave. No. 7 in June 2007 that she and her husband didn’t rent to Africans or individuals with children. November 6, 2008
Throwing a Line to Homeowners at RiskA month after passing a $700 billion bailout designed to benefit the reeling financial sector, the federal government is grappling with how best to directly help strapped consumers at risk of losing their homes to foreclosure. At the end of the third quarter, one in every 500 homes in Illinois was in some stage of the foreclosure process, according to RealtyTrac. The number of homes in foreclosure was almost 50 percent higher than in the same period last year. November 6, 2008
Foreclosure Help on Way to North KaneKane County officials have identified Carpentersville, East Dundee and other north-end municipalities as most badly in need of federal grant dollars to rehab and redevelop abandoned and foreclosed-upon properties. The county board plans to draft a resolution to use $2.57 million from the federal government’s Neighborhood Stabilization Program, or NSP, for the creation of affordable housing. The county has referenced U.S. Department of Housing and Urban Development foreclosure rates to determine the areas of highest need. Some homes — deemed blighted structures — can be demolished using the funds, according to county documents. November 6, 2008
Fewer Canadians Buy U.S. Homes as Currency WeakensCanadians — who recently ranked as the No. 1 foreign buyers of U.S. homes — have curtailed purchases in recent weeks because of a rapid decline in the strength of the Canadian dollar, Realtors in both countries say. Canadians accounted for 23.6% of foreign buyers of U.S. homes in the 12 months ended in May — double the percentage of the prior year — a recent report by the National Association of Realtors said. November 7, 2008
More Laws Target Owners of Abandoned HousesAs foreclosures mount around the country and vacated homes slowly turn into neighborhood eyesores, governments from California to Chicago to Rhode Island are cracking down on owners in a variety of ways. Chicago started banning plywood. Providence can now fine up to 10% of the assessed value of the home. Garland, Texas, is requiring a $2,500 bond the city can use to keep up the property. The aim is to prevent the crime and declining home values that accompany rows of boarded-up homes. November 10, 2008
Foreclosures Pick Pockets of Homeowners AssociationsIf you live in a neighborhood that has a homeowners association, brace yourself. Neighbors losing their homes to foreclosure and short sales not only are dragging down your property values but also are setting you up for higher fees. There’s even a threat that your entire neighborhood could grow shabby over time, if cash runs short for upkeep. Associations often lose six months of dues, sometimes more, from each homeowner who slides into foreclosure or short sale. Budget trouble can hit any community where homes are being lost, whether they’re neighborhoods of detached houses or townhouses, or condominium apartment buildings. November 10, 2008
New Orleans Redevelopment Authority to Buy Gentilly Woods MallFlexing newfound financial muscle, the New Orleans Redevelopment Authority recently used public money to outbid a private developer for the abandoned Gentilly Woods Shopping Center, offering $700,000 more than its competitor to get direct control over a key recovery project site. NORA’s board of directors approved the $4.3 million purchase of the shopping mall on Oct. 20. That was a Monday. On the previous Friday, local developer Kailas Properties had thought it was about to buy the site. November 10, 2008
Number of First-time Home Buyers is IncreasingLow home prices and excess supply helped drive a rise in first-time U.S. home buyers and reduce excess inventory, according to a study released Saturday by The National Association of Realtors. According to the survey, which was released at the 2008 Realtors Conference & Expo, the number of first-time buyers rose to 41 percent from 39 percent of all transactions in 2007. November 10, 2008
U.S. Foreclosures Index: October Foreclosures Drop Dramatically to Near 2008 LowsForeclosures fell for the second month in a row in October to nationwide lows not seen since last February, according to the latest U.S. Foreclosure Index from ForeclosureS.com. In this first post-election look at foreclosure numbers, October pre-foreclosure filings — which can include notice of default and/or foreclosure auction — were off more than 10% from August’s highs, and nearly 7% from September’s numbers. October numbers were down in about half of the states in the U.S. Foreclosure Index. November 10, 2008
UK: Laying the Foundations for a New Generation of Council Housing in IslingtonHomes for Islington and Islington Council celebrated a significant milestone with the laying of the foundation stone at the new council housing being built at Boleyn Road. Islington Council is one of the first local authorities in London to start building new council housing again. 10 new low rise family-sized homes will be built on the site of the old Boleyn Road Area Housing Office in N16 which was demolished earlier this year, following approval at the East Area Planning Committee on 24 January. November 10, 2008
Schwarzenegger’s Foreclosure MoratoriumAs part of his plan to spur the California economy, Gov. Arnold Schwarzenegger announced last week a belated but welcome effort to keep more troubled borrowers in their homes. Now we’d like to see the governor follow through by pushing the Legislature to turn his proposals into law and making sure that lenders deliver the relief. For the next four years, Schwarzenegger’s initiative would require lenders to wait an additional 90 days before selling a defaulting borrower’s home. The moratorium would give lenders and borrowers more time to avert foreclosures by negotiating more-affordable mortgages. November 10, 2008
Inclusionary Zoning Just Creates Housing ShortagesIn the strange world of local-government politics, a belief in an alternative universe exists. In that universe, economics does not exist. Shortages created by government regulations, such as low-income housing, can be eased only with more government regulations. And the skyrocketing cost of government regulation can be eased only with more costly government regulation. Such is the case in Tallahassee. In the spring of 2005, the city of Tallahassee became Florida’s first city to establish an inclusionary zoning (IZ) ordinance. That means for every 50 market-rate homes developed in a subdivision, five must be sold as affordable housing or the developer must pay big bucks to a subsidized-housing fund. November 10, 2008
Alonzo Mourning Shoots to Build Affordable Housing in OvertownMiami Heat star Alonzo Mourning wants to develop a 190-unit affordable rental housing community for families and the elderly in downtown Miami’s Overtown neighborhood. The Alonzo Mourning Charities wants to lease 5 acres of Miami-Dade County-owned land at the southwest corner of Northwest Third Avenue and 17th Street for a $1 a year. The Miami-Dade County Housing Agency currently calls the site home. November 10, 2008
Idaho Attacks Foreclosure EpidemicWhen the Pew Center on the States released a study in late April investigating each state’s response to the foreclosure crisis, it lumped Idaho in with a group of nine states that had done nothing by the end of 2007. It listed seven possible action steps that many states had taken and failed Idaho on each. But Idaho Department of Finance Director Gavin Gee said Idaho’s response to the nationwide epidemic of foreclosures has been neither slow nor sparse. “It kind of boggles my mind; it baffles me that someone would say that Idaho is not doing something when we are literally doing something every single day (to respond to the foreclosure crisis),” he said when he saw the report. November 10, 2008
The Foreclosure Fight Gets StreamlinedAs losses from bad loans continue to mount despite more than a year of government and industry focus, some of the giants of the mortgage industry, including Fannie Mae and Freddie Mac, yesterday unveiled another stepped-up effort to keep delinquent borrowers out of foreclosure. Government and lender efforts to stem foreclosures have been stymied by the sheer size of the problem. This program attempts to address that by using a simplified process for determining whether someone is eligible for a new loan. November 12, 2008
The New Plan to Keep People in Their HomesWho is participating: Fannie Mae, Freddie Mac and many major lenders and mortgage servicers, effective Dec. 15. The servicer is the company to which you send your payments. Who is eligible: If the property is a single-family residence in which you live and you’re 90 or more days past due on your payments or in foreclosure, you are eligible. You cannot be in bankruptcy. November 12, 2008
HUD ANNOUNCES NEW, PERMANENT FHA MORTGAGE LOAN LIMITSU.S. Department of Housing and Urban Development Secretary Steve Preston today announced the new Federal Housing Administration (FHA) mortgage loan limits for single-family homes as prescribed by the Housing and Economic Recovery Act of 2008. Beginning January 1, 2009, FHA will insure single-family home mortgages up to $271,050 in low cost areas and up to a maximum of $625,500 in high cost areas. The February 2008 Stimulus Package temporarily raised the FHA maximum to $729,750 through December 31, 2008. The new $625,500 maximum, however, represents a significant increase over the $362,790 limit that was in effect prior to the Stimulus Package. November 12, 2008
Corps to Host Public Meeting Today in Lower 9th WardThe U.S. Army Corps of Engineers will host a public meeting today in the Lower 9th Ward to provide an overview of the recommended plan to replace the 85-year-old Inner Harbor Navigation Canal Lock.The meeting will be held at the Martin Luther King Jr. Charter School, 1617 Caffin Ave. It begins at 6 p.m. with an open house, followed by the formal presentation at 7 p.m. November 12, 2008
New Breed of Investor Looks to Housing MarketFalling prices and rampant foreclosures are not the stuff of healthy housing markets. But to some real estate investors, the dismal market can signal that it is time to invest. So what if cities like Phoenix and Las Vegas have regularly appeared on RealtyTrac’s list of top 10 foreclosure markets quarter after quarter? Or if the National Association of Realtors is reporting that more than one-third of all existing homes for sale in America are “distressed,” meaning they’re in foreclosure or approaching it? November 12, 2008
5 Real Estate Markets Most Likely to ReboundIf you’re a homeowner seeing property values plummet, look to the commercial real estate market for solace. It might tell you which areas will recover fastest — and which will likely remain weak. The Urban Land Institute recently asked 700 real estate professionals to name the best (and worst) places to invest in commercial real estate in the coming year. Those surveyed included private developers, Realtors and Real Estate Investment Trust executives. Their answers also apply to the residential market, since the single-family-home sector typically follows the economy. As wages go up and there are more jobs, more people can buy homes, pushing prices up. November 12, 2008
Homeowner Denial: My home is Gaining ValueThe housing market may have gone bust, but many homeowners are still living in a bubble. Despite dismal housing headlines and reports showing falling prices nationwide, owners in some once-hot areas still believe their home is gaining value or at least holding its own. And by hanging onto too-high expectations, sellers are unwittingly keeping the market from finding a bottom. Real estate professionals across the country are reporting difficulty convincing sellers the true market value of their homes. November 12, 2008
NH: Affordable Housing Survey Circulating in YorkFinding a town survey on affordable housing in the mail just days after voters passed a work-force housing ordinance may be leaving some residents confused. Community Development Director Steve Burns said the measure that passed last week didn’t go far enough to help the less wealthy, and the survey is the first step in remedying that. Burns said the purpose of the survey is to get residents’ opinions on what they would like to see in an affordable housing ordinance modeled for those with lower incomes than the ones benefiting from the work-force housing ordinance approved by voters Nov. 4. November 12, 2008
October Foreclosures Up 25% From a Year Ago, Study SaysForeclosure activity in October rose 25% from a year earlier, although filings in California fell by double-digit percentage points for the second consecutive month due to a state law slowing the foreclosure process, according to a monthly report by RealtyTrac. Foreclosure filings — default notices, auction sales notices and bank repossessions — rose by 5% from September to 279,561 in October, according to Irvine, California-based research firm RealtyTrac. November 13, 2008
HUD ISSUES NEW MORTGAGE RULES TO HELP CONSUMERS SHOP FOR LOWER COST HOME LOANSFor the first time in more than 30 years, the U.S. Department of Housing and Urban Development today issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table. November 13, 2008
Nonprofits get Chance to Buy Homes in ForeclosureTwin Cities housing officials will announce today that four major national lenders have agreed to give them first dibs on hundreds of discounted homes coming out of foreclosure. That means that Minneapolis and St. Paul, working with key nonprofit developers, will be able to pick off strategic properties for their efforts to rebuild neighborhoods. Some could be discounted by 10 to 15 percent off current market values to reflect what lenders save by avoiding holding costs. November 13, 2008
85,000 Homes Lost to Foreclosure in OctoberAs government and industry scrambled to stem the housing crisis, another 84,868 homes were lost to foreclosure in October, according to a report released Thursday. Last month 279,561 struggling borrowers received foreclosure filings, including default notices, notices of auction sales and bank repossessions, according to RealtyTrac, an online marketplace for foreclosures. That’s a 5% increase from September, and up 25% from October 2007. November 13, 2008
Adults-only Housing Makes Sense for SchoolsThe family-friendly image of suburbia is being turned on its head. Many Chicago suburbs are embracing senior-only communities because they generate property tax revenue for school districts without adding students. In north suburban Mundelein, a 700-unit development for residents 55 and older opened about a year ago and another 150-unit senior development is scheduled to break ground this winter. November 13, 2008
Neighborhoods Step up Foreclosure StabilizationThe wave of foreclosures that has crested across the St. Louis region in recent months has brought with it a nasty undertow: a surge of empty houses. Now, in the hardest-hit neighborhoods of St. Louis and north St. Louis County, there might be three or four on a block, foreclosed homes sitting vacant with no one to buy them even at rock-bottom prices. In a slow-growth region, and the worst housing market in years, the worry among local governments and economists and housing experts is that thousands of houses will stay that way — with broken windows and long grass — and drag down the neighborhoods around them. November 13, 2008
FDIC Details Plan To Alter MortgagesOfficials at the Federal Deposit Insurance Corp. yesterday detailed a plan to prevent 1.5 million foreclosures in the next year by offering financial incentives to companies that agree to sharply reduce monthly payments on mortgage loans. The proposal, which has the support of leading congressional Democrats, would considerably expand the scope and force of the government’s efforts to stem foreclosures. Agency officials estimated the cost to the government at $24.4 billion. November 15, 2008
FDIC Loss Sharing Proposal to Promote Affordable Loan ModificationsAlthough foreclosures are costly to lenders, borrowers and communities, the pace of loan modifications continues to be extremely slow (around 4 percent of seriously delinquent loans each month). It is imperative to provide incentives to achieve a sufficient scale in loan modifications to stem the reductions in housing prices and rising foreclosures. November 14, 2008
Aid to Fannie, Freddie May Top ExpectationsThe first of the Bush administration’s major financial takeovers, the seizure of Fannie Mae and Freddie Mac, is poised to get more expensive and some analysts are warning that it may ultimately cost more than the government has suggested. Mounting troubles in the financial and housing markets have further undermined the health of the companies in the months since the government seized them in September, making it likely the Treasury will be required to pump billions of dollars into the mortgage-finance giants. November 14, 2008
HOUSING COUNSELING INDUSTRY RESPONDING TO MORTGAGE CRISISHousing counseling agencies all across the country are experiencing surging demand for their services, especially among families hoping to avoid losing their homes through foreclosure. According to a new report from the U.S. Department of Housing and Urban Development, beginning in 2005, individuals and families increasingly sought counseling to address mortgage delinquencies. Secretary Steve Preston announced the report at a HUD-sponsored roundtable discussion with more than two dozen housing counseling agencies from across the country. November 14, 2008
Foreclosures Spike 25 Percent Year-on-yearThe number of homeowners caught in the wave of foreclosures in October grew 25 percent nationally over the same month in 2007, data released Thursday showed. More than 279,500 U.S. homes received at least one foreclosure-related notice in October, an increase of 5 percent over September, according to RealtyTrac Inc. One in every 452 housing units received a foreclosure filing, such as a default notice, auction sale notice or bank repossession. November 14, 2008
Foreclosure Response Hits the Streets to Fight Blight from Vacant HomesWant to help fight the effects of foreclosure? Find a vacant house and mow the lawn, board up a window or rake the leaves. “People can actually get together with their neighbors and help do some upkeep,” community organizer Kym Spring said. “If there is some trash in the yard, pick it up.” Fighting against the blight caused by long-vacant, neglected properties is part of Spring’s job as coordinator of Foreclosure Response, an organization born from a loosely formed foreclosure prevention task force that started meeting last December to tackle the growing problem in Kent County. November 14, 2008
Housing Advocates, Black New Orleanians File Class-action Discrimination Lawsuit against Road HomeFair housing advocates filed a federal class-action lawsuit against the Louisiana Recovery Authority and U.S. Housing and Urban Development today, claiming the Road Home program, because of the grant calculation formula designed and approved by those agencies, discriminates against black homeowners in Orleans Parish. The complaint was filed in U.S. District Court in Washington, D.C., by the Greater New Orleans Fair Housing Action Center and the National Fair Housing Alliance on behalf of five black New Orleans homeowner applicants to the state’s Road Home program. The plaintiffs seek a class of about 20,000 black families in a similar situation. November 14, 2008
Editorial: Ussery’s Dallas Housing Authority challengeThe choice of Terdema Ussery as chairman of the Dallas Housing Authority board is an intriguing one.The Dallas Mavericks president and chief executive officer grew up in a tough neighborhood near a Los Angeles housing project. Today he is a savvy manager who seems capable of bringing much-needed credibility and strategic direction to an agency filled with old-school thinkers and career bureaucrats. November 14, 2008
Moving to Its Own BeatAs owner of a Rogers Park print shop, Kathleen Paluch once printed some T-shirts festooned with the slogan “Made in Rogers Park.” When she and her husband Denis traveled, they often wore the shirts, which rarely failed to remind the Paluchs of the kinship folks all over seem to feel for this far North Side Chicago neighborhood. “Wherever in the country we wore ours, we would get people waving from the sidewalk or from their cars, saying, ‘We used to live there!’ ” Paluch recalled. “When my mother was wearing one of our T-shirts on a trip to Costa Rica, she was walking down a sidewalk when some woman came running out of a shop saying, ‘I used to live there!’ “ November 14, 2008
Roseville Housing Bias Suit Settled for $170,000The owners of Regent Court Apartments in Roseville have agreed to a $170,000 settlement in a housing discrimination lawsuit, the U.S. Justice Department said Thursday. It said the apartment complex and its leasing manager, Donna Harrison, discriminated against black applicants. The settlement, which must be approved by a federal judge, requires the complex to pay $75,000 to three victims, $55,000 in penalties to the government and $40,000 into a fund if more victims come forward. Complex employees also must undergo fair-housing training. November 14, 2008
Washington Must Focus on ForeclosureThe mortgage meltdown is worsening daily and action must be taken in Washington before it’s too late.On average, 2,700 Americans lost their homes every day from July through September, up from 1,200 during the same period a year ago, according to The Associated Press. In North Carolina, home foreclosures are up 30 percent in October from the previous month. One in 1,254 homes in North Carolina last month received a foreclosure filing, according to RealtyTrac Inc. November 14, 2008
Don’t Blame Fair-lending LawsDid a 1977 law called the Community Reinvestment Act cause today’s housing mess? The Wall Street Journal, Investor’s Business Daily and others have charged that the CRA - a law that essentially requires banks to make more loans in minority areas - sparked the current crisis. Critics claim that the CRA strong-armed U.S. financial firms into giving mortgages to people with bad credit. November 14, 2008
U.S. to Hold Land AuctionThe view of Delicate Arch natural bridge — an unspoiled landmark so iconic it’s on Utah’s license plates — could one day include a drilling platform under a proposal that environmentalists call a Bush administration “fire sale” for the oil and gas industry. Late on Election Day, the U.S. Bureau of Land Management announced a Dec. 19 auction of more than 50,000 acres of oil and gas parcels alongside or within view of Arches National Park and two other redrock national parks in Utah: Dinosaur and Canyonlands. November 17, 2008
FDIC Proposes to Modify 2.2M Mortgages to Fight ForeclosurePublicly breaking with the Bush administration’s official stance, the Federal Deposit Insurance Corp. proposed Friday to use $24 billion in government financing to modify 2.2 million mortgage loans and help a projected 1.5 million American households avoid foreclosure. The FDIC posted the plan on its website two days after Treasury Secretary Henry Paulson rejected the idea of using money from the $700 billion bailout of the financial industry to pay for such a proposal. November 17, 2008
The High-Stakes Game Of Raffling Off the HouseIn the casino of the housing market, Tom Walters is holding the wrong cards. He’s a mortgage broker, so business has been slow, and on his own house, payments have risen to about $6,200 — too much to handle. Instead of gambling on a sale, Walters and his wife decided to let others take a chance. So for just $50, people can buy a raffle ticket for his six-bedroom, 4 1/2 -bath, 6,000-square-foot home on a two-acre parcel just outside of Annapolis. Estimated value? One million clams. November 17, 2008
As McMansions Begin to Die Off, Look to the Past for Housing’s FutureThe end of the housing bubble may also signal the end of the McMansion, that much-maligned symbol of suburban American excess. Its demise cannot be attributed to the critics’ constant harping on the huge size, overdone glitz and mish-mash of historic styles associated with the McMansion, a derogatory term that can cover just about any house an observer considers big and ugly. The public was oblivious, and millions of people bought these houses anyway. November 17, 2008
Foreclosure Relief Is Getting Lost In Fine Print of LoansMore than a year into the foreclosure crisis, whether a distressed homeowner is eligible for a more affordable mortgage can often come down to the fine print. That fine print in contracts that govern mortgages bundled into investment pools dominated a House Financial Services Committee hearing yesterday as lawmakers questioned whether lenders are doing enough to keep people in their homes. November 17, 2008
Mortgage ‘Reform’ Is Just a Small Step ForwardDepartment of Housing and Urban Development Secretary Steve Preston recently announced what he said was a “mammoth leap forward for the consumer.” So what does this mammoth leap entail? It’s an overhaul of the good-faith estimate used during the mortgage lending process. This good-faith statement, which is given to mortgage applicants, is already required under the Real Estate Settlement Procedures Act, or RESPA. It’s supposed to give people an estimate of their settlement charges and loan terms. Often it doesn’t. November 17, 2008
Want to Be an Inauguration Day Landlord? Good. Just Be Careful.With a crush of visitors expected this Inauguration Day, hundreds of area residents are advertising their homes as temporary — and top-dollar — rentals over the four days leading up to Jan. 20. It’s a brilliant solution to the lodging shortage, but let’s pause a moment to examine the potential for meltdowns. Crises are almost inevitable given this volatile mix: amateur landlords renting out home-sweet-home, out-of-towners unfamiliar with the area, large sums of money, the absolute unavailability of hotel-room alternatives, and an emotion-laden, once-in-a-lifetime opportunity to witness history being made. Gee, what could go wrong? November 17, 2008
Nearly Evicted in Error, and Left With NothingLook around Joann Ritter’s apartment in the Bushwick section of Brooklyn and you will see an entire room of hand-me-downs. Her sister gave her the bed and the portable closet; her nephew gave her the television set; the microwave oven came from a neighbor who was about to throw it out; the kitchen chairs, she found on the street. “Everybody tried to help us,” Ms. Ritter, 52, said the other day. “We had nothing — or less than nothing. We were sleeping on the floor.” That’s because in March there was a mix-up with the city’s Housing Stability Plus program, which pays her $925 monthly rent. Her landlord did not receive the check that month and took all of her belongings from the home, crated them and put them on the street, Ms. Ritter said. November 17, 2008
Know Before You BorrowExotic mortgages, as well as some lenders, are a thing of the past. But the need to borrow to buy a home is very much present. The lending landscape keeps changing fast, economists, mortgage brokers and lenders say, so homeowners and potential buyers need to stay current. “I think the choices consumers will have will be much more constrained, as will the number of lenders,” said economist Anirban Basu, chairman and CEO of the Baltimore-based Sage Policy Group. November 17, 2008
How to Mop Up Foreclosure Flood: Simon Johnson, Alex StrickerThe current economic crisis began in the U.S. housing market. Although the financial system seems to have been pulled back from the brink of collapse, the decline in housing prices continues to take a devastating toll, with foreclosures at a record pace in the third quarter. Washington is beginning to turn its attention to housing, and there is progress on plans to make it easier to modify delinquent mortgages where there is a win-win solution for the borrower and the lender. November 17, 2008
Demand for Affordable Housing Still StrongNEW DELHI: Demand for “affordable housing” is still strong in India and first-time home buyers would continue to drive the realty segment, a top industry official said here Monday. “Affordable housing market has a huge demand with consumers just sitting on the fence and waiting to get a clearer picture of the ongoing financial crisis,” Arun Nanda, executive director (infrastructure development sector) of Mahindra and Mahindra, told reporters on the sidelines of the World Economic Forum-India Economic Summit. The Mahindra group has a wholly-owned subsidiary, Mahindra Lifespace Developers Ltd, operating in the infrastructure development segment. November 17, 2008
Affordable Housing Rises Out Of Foreclosure CrisisLancaster, Calif., is a high desert community on the far outskirts of Los Angeles. Officials there are spending millions of dollars to fix up foreclosed properties and make them into affordable housing. The Department of Housing and Urban Development has announced $4 billion worth of grants to local development agencies nationwide to do the same thing. Rob Schmitz of member station KQED talks with Renee Montagne about Lancaster’s progress fighting the foreclosure crisis. November 17, 2008
Loan Mods Could Restore ConfidenceA plan for the government to partially insure lenders when they agree to modify troubled borrowers’ loan terms could help stabilize housing markets, restore confidence, and bring buyers back into the market. Federal Deposit Insurance Corp. chairwoman Sheila Bair wants the Bush administration to provide incentives for lenders to do as many as 2.2 million loan modifications. November 17, 2008
A New Proposal to Pay the RentA man on welfare in Thunder Bay gets the same amount to pay his rent as someone in Toronto, where rents are far higher. That makes little sense. And what about a woman holding down a job but still living in poverty? She gets no help to pay the rent at all. A welcome new proposal for a housing benefit would begin to address this inequity. It would be available to low-income adults, whether they’re receiving social assistance or earning a substandard wage. This is vital, given the prevalence of part-time, no-benefit jobs, which often leave the working poor no further ahead than those on welfare. As designed, the benefit would vary according to city size, family size, income and the rent being paid. That too makes sense. November 17, 2008
Hope for Homeowners Foreclosure Program Falls FlatOnce touted as a potential breakthrough to help solve the foreclosure crisis, the government’s Hope for Homeowners program has failed to live up to its billing so far. And there are serious doubts it ever will. Bankers don’t like it. Consumers don’t understand it. Government regulators don’t trust it to solve the problem. The result: Federal housing officials have received fewer than 115 applications since the program took effect Oct. 1. Compare that to the more than 3 million homeowners currently in some form of foreclosure, according to the real-estate research firm RealtyTrac. November 17, 2008
Homeownership Done RightThe Massachusetts Affordable Housing Alliance, for example, has assisted more than 11,000 families of modest means in buying their first home. The alliance reports a delinquency rate roughly half that of conventional mortgage borrowers. Self Help, North Carolina has aided tens of thousands of similar families with comparable low default results. November 17, 2008
States Lend a Hand in Time of Job ForeclosuresStates and local governments are stepping up help for residents coping with foreclosures and job losses amid a sinking economy. New assistance efforts range from laws that give homeowners time to renegotiate loans to job training programs. “They will help,” says Providence Mayor David Cicilline, a Democrat. “With rising costs … and unemployment, these are serious times for families.” November 18, 2008
Bayou La Batre, Ala., Sued by DeveloperA housing developer has filed a lawsuit against the city of Bayou La Batre claiming that the City Council violated federal housing law when it blocked a proposed rental home subdivision from being built. Andrew Rutens, Bayou La Batre’s attorney, said the city’s decisions made on the property were proper and appropriate. “Legacy Park was requesting extraordinary changes to this type of residential property, and the factors used by the decision-makers were appropriate under the circumstances,” Rutens said. “There were no violations of any federal laws or protection.” November 18, 2008
Nevada: Sparks Gets Foreclosure AidAn infusion of $1.4 million in federal money is moving toward Sparks as part of a fast-moving program to begin putting new owners into foreclosed homes. With an estimated 800 homes in foreclosure or approaching foreclosure in the Sparks area, city leaders are hoping to begin cutting that number. The federal program would not bail out foreclosed homeowners affected by the worldwide financial crisis. Instead, the effort is aimed at families with modest incomes who would move into foreclosed homes as new owners in Sparks. November 18, 2008
Assembly’s Foreclosure Moratorium on Slow TrackA proposed four-month foreclosure moratorium that would crank up the heat on lenders to rewrite more of California’s troubled mortgages downshifted to the slow lane Monday. Assemblyman Ted Lieu, D-Torrance, agreed to delay a committee vote on his plan to speed up the pace of loan modifications. Last week, he said he expected the committee and full Assembly to vote on it this week. The bill calls for a longer timeout than Gov. Arnold Schwarzenegger’s Nov. 5 call for lawmakers to enact a three-month moratorium. November 18, 2008
New Rules are Needed for Affordable HousingThis week two Los Angeles City Council committees will discuss whether to require future residential development to include homes for families and individuals at a range of income levels. What has come to be known as the Mixed-Income Housing policy speaks to the very core of what kind of city we want to call our home. City officials have been discussing this idea for years. Now it is poised to act with a broad coalition of labor, community and religious organizations pushing for the ordinance and with the mayor including the passage of a Mixed-Income Housing policy as part of his comprehensive housing plan for the city, and with nine council members having committed to support such a policy. November 18, 2008
Foreclosure Aid Dwarfed by Foreclosure TroubleSan Diego plans to spend $9.4 million to help homebuyers purchase foreclosed homes, and buy foreclosed homes itself to rent out to low-income families, as part of a federal grant program intended to stabilize neighborhoods ravaged by foreclosure. The city, through its Housing Commission, expects to use those grants from the Housing and Urban Development in two main ways: to fund between 75 and 92 first-time homebuyer loans on houses that were previously foreclosures and to rehabilitate 30 rental homes for low-income tenants. November 18, 2008
Home Prices Down 9% from a Year AgoThe rise in foreclosures continued to drive down the median price of homes across the country in the third quarter, according to a report released by the National Association of Realtors on Tuesday. Economists expect the fourth quarter to be worse. Between 35% and 40% of all transactions were either foreclosures or pre-foreclosure sales — called short sales — in the quarter, the report says, causing the national median price of a single-family home to drop to $200,500, 9% lower than the third quarter of 2007 and 11.9% off the peak of the housing boom, in the third quarter of 2005. November 19, 2008
Clergy Rally in D.C. for Homeowner ProtectionsClergy and congregants from more than 40 states gathered in front of the Department of Treasury on Tuesday to pray for Secretary Henry Paulson and members of Congress to put an end to the home foreclosure crisis. PICO, a network of faith-based community organizations that helps provide affordable housing, is demanding that the Treasury require all banks receiving a chunk of the federal bailout package to adopt systematic loan modifications that could keep 2 million people from losing their homes, they said. November 19, 2008
Bill to Preserve Open Space Tabled After Foes Speak OutA proposal to preserve open space and rural farmland in Prince George’s County was killed yesterday after council members raised concerns about the impact the program might have on the county’s more-populated areas. Council member Thomas E. Dernoga (D-Laurel), a sponsor of the measure, withdrew the bill after the majority of his colleagues said they could not support legislation allowing a transfer of development rights from rural to urban neighborhoods. November 19, 2008
Homeless in a Flash, Hundreds in Texas Now Wait for ReliefAfter Hurricane Ike flooded her house, Terri Reeves could not wait for the federal government to provide her with housing, so she spent all her savings — about $8,000 — on a camper to live in on her front lawn. Now, she has watched wistfully as the Federal Emergency Management Agency has installed several mobile homes on her block for other people with flood-damaged homes. “They keep telling me one day I’m on the list, and the next day I’m not on the list,” Ms. Reeves said, holding her Yorkie, Rufus, in the gutted ruins of her house. “They give you the runaround.” November 19, 2008
Homebuilder Sentiment Plunges to New LowHomebuilders’ confidence in a near-term housing recovery sank to a new all-time low this month, reflecting growing worries over the U.S. financial crisis, rising unemployment and weakening consumer confidence, an industry trade association said Tuesday. The National Association of Home Builders/Wells Fargo housing market index, started in January 1985, tumbled five points to nine in November. The index stood at 14 in October after slipping three points from September. November 19, 2008
Report Predicts Rise in Homeless, Single WomenA new report out today predicts that homelessness among single women aged over 35 is set to escalate in the next 20 years.The “Going It Alone” report, prepared by a Victorian homeless service, says support services often turn these women away because they are considered a low-risk group even if they are living below the poverty line. The report’s author estimates 30,000 women on the east coast are living under this type of housing stress. November 19, 2008
Low-income Housing OKdThe City Council increased Burbank’s affordable housing stock Tuesday with a 4-1 vote that paves the way for a four- unit property on Naomi Street to be made available for low-income families. The council approved a $1.69-million loan, to be paid through a combination of federal and city grants that the Burbank Housing Corporation will now use to renovate and provide living assistance to its future tenants. “What we’re doing is preserving affordable housing stock,” said Judith Arandes, the group’s executive director. “The Burbank Housing Corporation can’t change the terms, we can’t flip it, we can’t sell it. The city is gaining a consistently stable property.” November 19, 2008
New Affordable Housing Rules Might Cost $2B a YearNew affordable housing regulations adopted this summer will cost towns across the state an estimated $2 billion a year over the next decade to fulfill, according to a report issued by the nonpartisan Office of Legislative Services. The state aims to provide 115,000 additional affordable housing units by 2018 and has directed communities to contribute to the cause. Officials have said there’s more than $848 million in annual public and private funds that can be used to help produce the extra housing units for low-income residents. November 19, 2008
Section 8 Housing Evaluations LaggingSome families who use Section 8 vouchers do not show up for annual re-certifications, an official with the East Baton Rouge Parish Housing Authority told the board of commissioners Tuesday. Some families claim it’s hard because they cannot leave their jobs, while others say they cannot find a ride to the North Boulevard offices, said Janie Anderson, the housing authority’s Section 8 director. November 19, 2008
HUD Said to Weigh Bid to Entice Banks Into Foreclosure ProgramThe Bush administration, seeking to entice more lenders to join a program aimed at preventing foreclosure, is considering a reduction in the costs for the banks that sign up, a senior administration official said. The Hope for Homeowners program has attracted few lenders since starting Oct. 1 because banks must forgive a large portion of their loans, the official said, declining to be identified citing the sensitivity of agency discussions. The Department of Housing and Urban Development is recommending a smaller cut in the mortgage’s principal to woo lenders, the official said. November 19, 2008
Housing Official: Mortgage Aid Falls Short, Program Changes ComingTwo government programs designed to help hundreds of thousands of delinquent borrowers avoid foreclosure are having negligible effects, a top Bush administration official acknowledged Wednesday. One program will be revamped immediately, and the other possibly in the near future. Steve Preston, secretary of Housing and Urban Development, said both private industry and government efforts have fallen short as the foreclosure crisis has exceeded all but the most dire forecasts. November 20, 2008
Home Construction Sinks to a Record Low in OctoberConstruction of new homes plunged 4.5% last month to the lowest level on government records dating back to 1959, the Commerce Department said Wednesday. Building permits, a barometer of future activity, also plummeted to a record low. The embattled housing industry, which enjoyed a five-year boom, is now on pace to build the fewest homes and apartments since the end of World War II. Commerce reported Wednesday that construction of new homes and apartments dropped to an annual rate of 791,000 units from an upwardly revised September rate of 828,000. It was the fourth-straight monthly drop. November 20, 2008
BUSH ADMINISTRATION ANNOUNCES FLEXIBILITY FOR “HOPE FOR HOMEOWNERS” PROGRAMU.S. Housing and Urban Development Secretary Steve Preston today announced that the HOPE for Homeowners (H4H) Board of Directors has approved changes to the program to help more distressed borrowers refinance into affordable, government-back mortgages. The changes will reduce the program costs for consumers and lenders alike while also expanding eligibility by driving down the borrower’s monthly mortgage payments. November 20, 2008
Jan. 20 Housing Is Risky BusinessWhen Barack Obama clinched the Democratic presidential nomination in June, Margaret Knox Baum, a supporter from Boulder, Colo., logged on to Craigslist and booked three rooms in a Capitol Hill townhouse for inauguration week. Friends thought she was jumping the gun, but Baum wanted to beat the rush. She signed a five-page contract, sent in a $940 deposit and rounded up 14 others to go with her to Washington. November 20, 2008
Homes for the Homeless, Bargains for EveryoneChristy Respress, director of programs at Pathways to Housing, a nonprofit agency that works to take homeless people off the streets, says Bellamy would “go in for four or five days, get discharged and go straight to the next hospital.” Bellamy hasn’t been back in the hospital and Holton hasn’t been calling for an ambulance since the District’s Housing First program put them in apartments of their own this fall. They still have severe health problems, but now they have regular doctor visits and caseworkers who check whether they’re taking their meds. More important, they’re eating well and sleeping full nights for the first time in years. November 20, 2008
Treasury’s Bailouts Are Getting Us ChumpedIt’s ridiculous when not enough is being done to directly help individuals who are losing their jobs and their homes. Just this week, the National Foundation for Credit Counseling (NFCC) reported that the calls for housing guidance it is getting are setting new records each week. The most recent data show those requests up 63 percent year over year. And an increasing number of consumers taking NFCC’s Mortgage Reality Check are falling into the red danger zone, indicating they are in imminent risk of foreclosure. The self-assessment test, which determines one’s risk of foreclosure, is located at http://www.HousingHelpNow.org. November 20, 2008
Obama Team Is Warned That HUD Needs WorkThe Obama administration will soon inherit a $35 billion federal housing agency that was a weak backbencher during the housing crisis and moved too late to do much to keep millions of families from going into foreclosure. Beyond the pressing crisis, the Department of Housing and Urban Development also has dramatically retreated in the past eight years from its mission of fostering affordable housing. Pushing homeownership has been the agency’s top priority under the Bush administration, and HUD’s budget for public housing for low-income families has been cut year after year. November 20, 2008
Defiant Mayor Won’t Promise to Send RebateOne city lawmaker called it Mayor Michael R. Bloomberg’s “Let them eat cake” attitude. After being dealt a rare public embarrassment by the City Council, which forced his administration to acknowledge on Monday that he was legally required to send out $400 rebate checks promised to hundreds of thousands of New York homeowners, a defiant Mr. Bloomberg said on Wednesday that he had no plans to release the money. November 20, 2008
JFK Mandates End to Housing Discrimination, Nov. 20, 1962On this day in 1962, President John F. Kennedy issued an executive order mandating an end to housing discrimination. The presidential order, which came in the midst of an upsurge in the civil rights movement, banned federally funded housing agencies from denying mortgages to any person based on race, color, creed or national origin. November 20, 2008
Boris Johnson Vows to ‘Jump-start’ London Housing MarketBoris Johnson today promised to “jump-start” the housing market in London as developments dry up in the face of the credit crunch. The London mayor outlined his ambitions to help Londoners buy a home ahead of unveiling his draft housing strategy for the capital later today. Johnson, who is responsible for spending £5bn of regional housing funding over three years, vowed to help break “the log-jam” on behalf of Londoners in need of affordable housing and those on the long waiting list for social housing. November 20, 2008
NAACP Critical of Egg Harbor Township on Affordable HousingThe NAACP has chosen Egg Harbor Township and 33 other communities throughout the state as the first recipients of its Jim Crow award for challenging New Jersey’s affordable housing requirements.James E. Harris, president of the New Jersey National Association for the Advancement of Colored People, said they gave the award, which refers to 19th and 20th century segregation laws, to the 34 mayors and towns because the organization believes some of these communities did not welcome blacks and low-income families, and many of them do not have diverse neighborhoods now. “We believe all communities in the state of New Jersey should embrace the fact that they should have a diverse racial and socio-economic community,” Harris said. November 20, 2008
Subprime Mortgage ‘Rip-off’ has Legitimate RootsAt the height of the real estate boom, lenders paid mortgage brokers as much as $15,000 or more to steer borrowers into overpriced loans. Called yield-spread premiums, these kickbacks increase with the gap between what loan borrowers qualify for, and the higher interest rates and terms they actually accept. And they are part of nearly all subprime mortgages, noted David Leen, a Seattle lawyer who represents borrowers. November 20, 2008
Some Parts of U.S. Escape Housing MessThere are no stretches of empty homes in new subdivisions. Foreclosure signs on front lawns are few. Local banks are still lending. In 17 locations around the USA, many made up of small cities surrounded by large rural areas, 50% or more of the people who own the roof over their heads don’t have to worry about adjustable rates, balloon mortgages or owing more than their houses are worth, according to a USA TODAY analysis of Census data. In 123 areas, 40% or more don’t have a mortgage. November 21, 2008
Years After Katrina, Permanent Homes Remain Elusive for SomeTears come and go as Rockell Joseph talks about the past three years of her life. Her family was among the thousands of people whose lives changed forever on Aug. 29, 2005, when Hurricane Katrina struck the Gulf Coast. Accidents, injuries, family deaths and economic turmoil have kept the Josephs from recovering their balance. More than three years after Katrina uprooted them, Rockell, her husband, Rafeal, and their six children are living in two rooms with no kitchen at the Days Inn in McComb, and they have no idea what will happen next. November 21, 2008
Fannie, Freddie Halt Foreclosures for the HolidaysMortgage giants Freddie Mac and Fannie Mae will suspend foreclosures and evictions for owners of occupied homes through the holidays — the latest effort to keep people in their houses. Freddie and Fannie, which were seized by the government in September, announced Thursday that they will contact an estimated 16,000 borrowers who are facing foreclosure or evictions between Wednesday and Jan. 9. Those proceedings will be delayed and the homeowners will have a chance to work with mortgage servicers to modify their home loans into affordable payments. November 21, 2008
Property Rules Eased for Inauguration RentalsMayor Adrian M. Fenty signed an executive order yesterday suspending District regulations and allowing residents to rent their properties for the inauguration of President-elect Barack Obama without obtaining a business license. The move, which also suspends requirements for property inspections, will be in effect from Jan. 13 through 27. It is aimed at satisfying the record demand for housing from out-of-town visitors who plan to attend the Jan. 20 swearing-in ceremony and parade. Some city officials said it is the first time they can remember the licensing requirement being suspended. November 21, 2008
Crisis Hits Values of Commercial MortgagesAnother levee in the financial markets is crumbling. Fears about rising default rates and declining property values, which engulfed the home mortgage market at the start of the credit crisis, are spreading to the commercial real estate market, hammering the value of bonds backed by loans made to office buildings, shopping centers and apartment complexes. November 21, 2008
Bloomberg Softens Tone in Rebate Check DisputeA day after defiantly asserting that the city could not afford to send out $400 rebate checks to homeowners, Mayor Michael R. Bloomberg struck a far softer tone on Thursday, saying he would cooperate with the City Council, which has been urging him to release the checks. “There’s nobody who would like to send a check to every homeowner in this city more than me,” the mayor told reporters at a news conference after appearing at a luncheon on Staten Island. Still, there was no word from the mayor’s office or from Council Speaker Christine C. Quinn about when the checks would be distributed. November 21, 2008
FDIC Chairman Bair Says Stopping Foreclosures is KeyFDIC chairman Sheila Bair said during a speech in Baltimore this morning that the one step the federal government has yet to take to improve the economy is to stop unnecessary foreclosures. But Bair said she is optimistic the government will soon do so by spending $24 billion in bailout money for a program to modify troubled mortgages. November 21, 2008
Rell Calls for Foreclosure MoratoriumA week after Connecticut gained the dubious distinction of having the nation’s biggest one-month uptick in foreclosures, Gov. M. Jodi Rell called Thursday for a six-month moratorium on all foreclosure actions statewide. If Rell can convince the General Assembly to move quickly, the moratorium could be implemented in the next few months, a spokesman said Thursday. The idea would be to have legislators pass a bill either during their special session next week or during the early part of their session in January, said spokesman Rich Harris. November 21, 2008
Civil-rights Group Sues McKinney, Flower Mound over Low-income HousingA Dallas civil-rights organization sued the cities of McKinney and Flower Mound this week in federal court, alleging that the communities segregate or prohibit low-income housing. The nonprofit Inclusive Communities Project Inc. says in the lawsuits that the cities refused to participate in a financial-assistance program that would help developers obtain tax credits for building affordable housing. November 21, 2008
Elgin Casting Foreclosure Safety NetElgin officials are seeking more than $2 million in federal funds to aid neighborhoods that have been hit hard by foreclosures. The money would be used to buy and renovate or demolish foreclosed homes. It also could be used to provide help with down payments or closing costs to lower-income residents who want to buy rehabbed properties. “The idea is to help people,” said Jerry Deering, Elgin’s director of community development. “There are hundreds of homes in foreclosure [in Elgin].” November 21, 2008
Children from FEMA Trailer Park Battle Serious Health ProblemsChildren of displaced families from Hurricanes Katrina and Rita have serious health and mental ailments, a new study says. The report, released Monday by the New York-based Children’s Health Fund, reviewed medical records of 261 children who lived in a federally funded Baton Rouge trailer park until early summer. It is the first in-depth review of children’s medical and mental health after the catastrophic storms in 2005 that displaced thousands of families throughout the Gulf Coast. November 24, 2008
‘Green’ Efforts Embrace PoorLow-income people who live in old or flimsy housing are becoming prime targets for cities and groups intent on slashing energy use. Recent efforts to cut energy consumption in the home have focused on new construction, often in more affluent areas and public buildings. Now, community organizations and cities that have embraced the green effort are homing in on low-income houses and apartments to reduce emissions and help poor people lower their utility bills. November 24, 2008
The Fine Print of the Foreclosure FightYou may have read about the latest public and private efforts to help financially distressed homeowners cope with their mortgage payments. But you might not have caught key details that could have an effect on you or people you know — now or in the months ahead. One of the most ambitious mass-market “loan modification” programs was outlined Nov. 11 by the Federal Housing Finance Agency — overseer of Fannie Mae and Freddie Mac — along with the 33 banks and mortgage servicers that make up the private-sector Hope Now Alliance. November 24, 2008
Demand Drives Home Green TechnologyRobert Mechielsen’s designs for environmentally friendly homes often include cutting-edge features such as high-efficiency heating and cooling systems and solar panels to convert sunshine into electricity.But he’s only half joking when he says many of the best green home solutions available hail from the 18th century, such as installing awnings to keep a home cooler. November 24, 2008
Rate Portfolio before Paying off MortgageQ: Should we pay off our mortgage? We have five years and $40,000 to pay down at a mortgage rate of 4.7 percent. The monthly payment is $675. We are both 67 and retired with a monthly income between Social Security and pensions of around $4,300. We make the house payment directly from our portfolio, but the value has dropped from $480,000 in October 2007 to $270,000 at the end of October this year. November 24, 2008
UK: One Housing Group wins Best Affordable Development at What House Awards 2008One Housing Group is delighted to announce that Tarling Heights and Watney Plaza has been selected as Best Affordable Development at the What House? Awards 2008. The winners were announced at the award ceremony held on Friday at the Grosvenor House Hotel in Park Lane. Tarling Heights and Watney Plaza are two adjacent sites near Watney Market in Shadwell, Tower Hamlets. Completed earlier this year, the development comprises 280 new high quality homes, as well as commercial units and pleasant public spaces. November 24, 2008
Bridge Loan Fund could Float Tax CreditsA legislative taskforce for affordable housing is considering a new publicly funded bridge loan fund for developers using tax credits to develop housing for low- and moderate-income Louisiana residents. The move would ease the pressure on developers struggling to unload the purchasable credits in an ever-softening market. The fund would provide capital normally secured through the syndication of the developers’ tax credits, allowing a developer to begin construction before selling the credits and reducing risk for the investor. November 24, 2008
U.S. Strikes At Landlord Bias Against ChildrenThe federal government recently settled a complaint against the owners of Las Vegas apartments who allegedly discriminated against families, the third such case in the valley in two years. The repeated cases involving hundreds of apartments mean “there definitely is discrimination against families with children” in the Las Vegas Valley, said Chuck Hauptman, a representative of the Housing and Urban Development Department’s San Francisco office of fair housing and equal opportunity. November 24, 2008
Economy Keeps Some Habitat for Humanity Homes EmptySkyrocketing insurance costs and a worsening economy are keeping Gulf Coast families from moving into Habitat for Humanity homes in Mississippi. The non-profit organization has built 270 homes in western Mississippi since 2007. Of those, 38 are unoccupied, says Chris Monforton, executive director of the group’s Mississippi Gulf Coast office. Habitat usually fills about 99% of its homes throughout the country. November 25, 2008
Years After Katrina, Permanent Homes Remain Elusive for SomeTears come and go as Rockell Joseph talks about the past three years of her life. Her family was among the thousands of people whose lives changed forever on Aug. 29, 2005, when Hurricane Katrina struck the Gulf Coast. Accidents, injuries, family deaths and economic turmoil have kept the Josephs from recovering their balance. More than three years after Katrina uprooted them, Rockell, her husband, Rafeal, and their six children are living in two rooms with no kitchen at the Days Inn in McComb, and they have no idea what will happen next. November 25, 2008
Existing Home Sales Fall in October, Prices PlungeExisting home sales tumbled in October and prices continued a precipitous decline not seen since 1968, indicating there is scant sign of a turnaround in the housing market despite aggressive federal intervention. A report Monday by the National Association of Realtors found that home sales dropped 3.1%, from a seasonally adjusted rate of 5.14 million in September to 4.98 million in October — a much larger decline than many economists had predicted. November 25, 2008
Reports to Detail Economic Fallout in 3rd QuarterInvestors on Tuesday braced for several reports expected to show the U.S. economy contracted even more than originally thought in the third quarter as home prices shrank, more banks fell into trouble and consumer confidence sagged. The reports come on the heels of a Wall Street rally that drove up major indexes more than 4.5 percent Monday on news of the government’s plan to bail out Citigroup Inc., a move investors hope will help quiet some of the uncertainty hounding the financial sector and the overall economy. November 25, 2008
Freddie Mac Increases Home Loan SupportFreddie Mac increased its support for the nation’s ailing home loan market in October, in part playing the role the government desired when it seized the mortgage finance giant. The McLean-based company and its bigger sibling, Fannie Mae of the District, are two vital cogs in the nation’s mortgage market, buying loans from lenders, insuring them against default and supplying fresh cash to make more loans. Some of these loans are sold to investors; others are kept by Fannie and Freddie. Under severe financial pressure, Freddie — and to a lesser extent, Fannie — pulled back last summer from its purchases of pools of these home loans known as mortgage-backed securities. November 25, 2008
Housing Bailout?With nationwide sales of existing homes falling more than expected last month and the median sales price plunging to $183,000, the U.S. housing market keeps getting worse. With more bad news likely on the way, industry groups pressed President-elect Barack Obama to help stem the damage. The National Association of Realtors said yesterday that sales of existing homes fell 3.1 percent to a seasonally adjusted annual rate of 4.98 million units in October, from a downwardly revised pace of 5.14 million in September. Sales had been expected to fall to a rate of 5.05 million, according to economists surveyed by Thomson Reuters. November 25, 2008
Fighting Foreclosure: One family’s StruggleForeclosure rates in Kent County have increased 176% since 2004, and those numbers continue to rise. This comes from to a report by the Community Research Institute at Grand Valley State University. According to the Grand Rapids Association of Realtors, in the last year, 63% of homes sold in the Grand Rapids area were either in foreclosure, or short sales, which means the owner is selling for less than they owe the bank, and the bank takes the loss. November 25, 2008
Group’s Dispute with City ContinuesOxford House Inc. has countered the city government’s request to dismiss the nonprofit group’s claims of housing discrimination. In September, the Maryland-based organization sued Winchester, claiming that the city’s Zoning Ordinance runs afoul of the federal Fair Housing Act and Americans with Disability Act, both of which protect people with handicaps from housing discrimination. Oxford House Inc. facilitates seven sober-living houses in the city. Men and women recovering from drug addiction and alcoholism live in the houses, which are self-run with no staff members on site. November 25, 2008
Affordable-Housing Requirements / Delay Flawed RegsState lawmakers are now considering business-friendly legislation aimed at speeding up an economic recovery, including a measure that would give businesses $3,000 for each new job they create. Yet at the same time, they just slapped businesses with an affordable-housing fee of 2.5 percent on any new commercial expansion or development in the state. On one hand, the state is considering allowing cash-strapped municipalities to delay making their full contributions to the state pension fund because of the recession - a move that adds to the fund’s staggering shortfall. And towns are petitioning the state to lift the 4 percent cap on municipal budgets - an ill-advised idea that would likely mean higher property taxes. November 25, 2008
County Committee Considers New System on Foreclosure Issues in Response to Record FilingsThe number of mortgage foreclosure filings in Northampton County has already surpassed last year’s record-high number and officials expect it to exceed 1,000 before the year is out. “Do you see any signs of this activity abating?” Councilman Lamont McClure, chairman of county council’s judiciary committee, asked Sheriff Jeffrey Hawbecker at a Monday committee meeting. “Not on the horizon,” Hawbecker said. The committee discussed asking the county court to set up a mediation system for homeowners facing foreclosure and mortgage companies. November 25, 2008
Volunteer lawyer helping save homes Group’s members negotiate new terms, go to court for homeowners caught by economic woes November 25, 2008
Housing Panel Reviews Other OptionsNo one from the public attended a public hearing Monday night to voice opinions about Danville Housing Authority’s annual and five-year plans. The plans are similar to those in past years about the authority’s public housing and Section 8, government subsidized housing, programs, DHA Executive Director Greg Hilleary said. One change, however, is having DHA officials review other types of assisted housing, including having outside firms use DHA’s Section 8 vouchers. November 25, 2008
Fed’s $800 Billion Package Aims to Unlock LendingThe Federal Reserve’s dramatic decision to pump $800 billion into the financial system to unlock mortgage, credit card, college and auto lending underscores the extreme stresses in the economy, and the central bank’s determination to combat the problems, no matter the cost. “This is the kind of thing the Fed does when it’s really worried,” says William Cheney, chief economist at John Hancock Financial. “The Fed has decided to go in on a massive scale and replace the role of private investors to jump-start … markets. They’re doing it on a scale that is quite staggering.” November 26, 2008
Mortgages: The goal is to Lower Interest RatesThe government on Tuesday said it will buy up to $100 billion in mortgages held by Fannie Mae and Freddie Mac and the Federal Home Loan Bank, and it will purchase up to $500 billion of mortgage securities backed by the housing giants and Ginnie Mae. The goal: lower interest rates on loans for home buyers by directly buying mortgages. What the move will mean for homeowners and the housing market is uncertain. While it is expected to reduce interest rates, it may not slow the galloping pace of foreclosures. November 26, 2008
Mortgage-Seekers Benefiting From Fed’s New Credit PlanFor consumers looking for a mortgage, the Federal Reserve’s plan to boost spending is already bringing relief from high interest rates. But for those hoping to use plastic more freely this holiday season, they likely will have to wait. The Fed’s $200 billion plan immediately sparked a drop in the average rate for a prime 30-year fixed-rate loan, from 5.8 percent on Monday to 5.5 percent yesterday, said Guy Cecala, publisher of Inside Mortgage Finance Publications. Just two weeks ago, it was 6.5 percent. November 26, 2008
Plan for New Orleans Hospitals Draws OutcryLocal and federal officials on Tuesday announced plans for a 70-acre medical campus in the heart of New Orleans to replace two hospitals damaged during Hurricane Katrina, a $2 billion investment that supporters say will create thousands of jobs and begin to rebuild the city’s shattered health care system. One of the hospitals, to be built by Louisiana State University, would replace the city’s landmark Charity Hospital, a lifeline for generations of the city’s poor, which has been vacant since the storm damaged its lower floors. The other would replace the vacant Department of Veterans Affairs hospital, also severely damaged by the flooding. The old hospitals and adjacent buildings will be abandoned under the plan, which officials here described as the foundation for a new economy for New Orleans, and the largest investment in the area since Katrina. November 26, 2008
Inclusionary Zoning is Dead. What’s Next for Affordable Housing?With the impending conclusion of the city’s controversial inclusionary zoning ordinance in January, Madison Mayor Dave Cieslewicz and the City Council are facing more questions than answers about the future of affordable housing in Madison. Despite the official end of the ordinance on Jan. 2, Cieslewicz said the city could take up to a year to finish “closing out” the ordinance. That means deciding what to do with the money built up in the inclusionary zoning fund, how to treat homes purchased under the ordinance and, most significantly, what the next move is for creating affordable housing in Madison. November 26, 2008
Nevada Equal Rights Commission Cannot Now Enforce Federal Housing ActOwners of a 240-unit Las Vegas apartment complex were assessed penalties recently when a federal agency discovered that tenants there were not allowed to have children living with them. Such arbitrary discrimination violates the 40-year-old federal Fair Housing Act. Authorities with the San Francisco-based office of the Housing and Urban Development Department acted appropriately in investigating the policies in place at this apartment complex on 28th Street. A settlement was reached with the owners that included paying one woman $30,000. In October 2007 the manager there told her she could not move in with her infant son. November 26, 2008
Promises of Help with Mortgages, but Foreclosure is Still Most Likely OutcomeFederal and state officials, eager to stabilize the housing market, have leaned hard on mortgage companies to honor their pledges to help more homeowners avoid foreclosure. But in California at least, the mounting pressure has so far produced only modest results, according to a survey released Tuesday by the nonprofit California Reinvestment Coalition. For all the promises of leniency, foreclosure remains the most common outcome for borrowers who come to mortgage counselors seeking easier loan terms, according to the September survey of mortgage counselors statewide. November 26, 2008
Zoning Committee Favors Housing PlanThe Aldermanic Zoning Committee gave a favorable recommendation on Tuesday to a zone change off Granby Road that many neighbors oppose and the mayor has vowed he will veto. The Board of Aldermen will take a final vote on the zone change on Tuesday. At-large Alderman James K. Tillotson said that nine votes will be needed. “I’m pleased they recommended; I’m disappointed the vote was 3-2 and how that might bear on the vote of the aldermen,” said Bart Heemskerk, a Springfield lawyer representing developer Eric P. Kaiser of Monson. November 26, 2008
High-density Housing RejectedThe City Council rejected a zoning change that would have allowed Pasadena to settle a lawsuit filed by a developer and an affordable housing organization. The proposed zoning change would have impacted a four-block area in the Northwest, on North Los Robles Avenue between Mountain Street and Douglas Street. It would have allowed a minimal amount of new affordable housing apartment units to be built on any new residential projects in the area. Under current zoning, a maximum number of 154 units can be built in the area - if every property was converted into apartment buildings. November 26, 2008
After ForeclosureIt is a sad fact that foreclosures related to subprime mortgages have become a new part of community life, along with spiking food prices, failed banks and cutbacks in services. Right now our towns and cities do not feel like the stable places they did only months ago — sturdy backdrops against which personal fortunes played out. They feel somehow shakier. Congress acted quickly to counteract the foreclosure fallout, at least. In July it passed the Housing and Economic Recovery Act of 2008. Part of that bill created the Neighborhood Stabilization Program under the U.S. Department of Housing and Urban Development. November 26, 2008
Proposed Mich. Foreclosure Bill Gives Renters More Time to MoveTracy Hunnicutt paid her rent on time the past 2 ½ years. But that is not stopping her from being evicted as her landlord loses the home on the city’s west side in the ongoing foreclosure crisis. Hunnicutt, 42, is outraged she must move out by Tuesday, even though she has a signed rental agreement and isn’t delinquent on her rent. “This is not my fault,” she said. “My daughter is a 4.0 (grade point average) student and goes to a good school. I don’t have transportation right now. Now we have to move.” November 26, 2008
Refugee Center Shifts Focus to Foreclosure InterventionWhen it was founded 28 years ago, the purpose of the Lao Family center was relatively simple. Incoming refugees from war-torn rural Southeast Asia lacked knowledge of English, how to find work or just operate the refrigerator. Lao Family had the answers. Today, the questions have become more complicated and the questioners more diverse. In recent months, staff members at the tiny storefront nonprofit have fielded visits from desperate East Bay homeowners of all stripes: Rockridge shop owners, Afghan and Ethiopian immigrants and native-born Californians whose roots in the region span generations. One thing all shared: a well-founded fear of losing a home. November 26, 2008
Landlords Feel Troubled Retailers’ PainAfter a decade spent developing a shopping center at the Metro station in Hyattsville, Taylor Development and Land Co. seemed to have put the hardest work behind it. Then tenants started disappearing. Mattress Discounters closed in November, followed by Circuit City in March. The bankrupt retailers left a gaping hole. And that’s not all: The firm that leased office space on the top level of the development vacated, too. “It just devastates developers like me,” said Harvey Taylor, 72, president of the company that bears his name.

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