July

Largely Alone, Pioneers Reclaim New OrleansGentilly, home to about 47,000 people before the storm and a thin fraction of that now, is not dead. Haltingly, in disconnected pockets, this eight-square-mile quadrant north of the historic districts that line the Mississippi River is limping back to life, thanks to the struggles of its most determined former residents. But they have had to do so largely on their own, because help from government at any level has been minimal, in their accounts. In recent weeks, some residents have reported getting checks from the state’s Road Home rebuilding program, but four-fifths of applicants have not. July 2, 2007
Squishy Foreclosure Data: Overcounting may magnify the problemAlthough most observers of today’s housing market believe that the foreclosure rate is rising nationwide, some are suggesting that the data underlying that belief might be just a little bit squishy.“It is simply the way in which foreclosure numbers are tracked,” said Mark Fleming, chief economist at First American CoreLogic in Sacramento, Calif., which develops automated home-valuation models for lenders throughout the country. July 2, 2007
With Insurance, the Risks of Ignorance Are HighIf your house is flooded during a hurricane, is the damage covered by your homeowners insurance policy? Will it cover a motor scooter stolen from the back yard? Or your son’s possessions when he moves into his college dormitory? The answer to all those questions is generally “no,” though a surprising number of homeowners don’t know that, according to a study by the National Association of Insurance Commissioners. That means many homeowners may not be carrying the right insurance to protect against storms, fire and other perils. July 2, 2007
Home-loan Guidelines Set: Lenders must evaluate borrowers’ ability to repay, regulators sayBanking regulators set guidelines yesterday that call on lenders to strictly evaluate borrowers’ ability to repay home loans. The guidance issued by the Federal Reserve and the other four federal agencies that regulate banks, thrifts and credit unions comes in response to an increasingly troubled housing market and pressure from Congress. Home prices have been falling, and defaults have been rising, especially among so-called subprime mortgages given to buyers with shaky credit. July 2, 2007
Tighter Lending Rules Could Backfire—Part 1 of 2: Can feds make mortgages more affordable?Case histories of subprime loans that have gone to foreclosure often generate righteous indignation. With benefit of hindsight, many if not most of them look as if they never should have been made. Such indignation is one important motivator for recent demands that government should require that all home mortgages be “affordable.” July 2, 2007
KB Home Thinks Small to Spur SalesKB Home is discovering that less could be more when it comes to luring skittish buyers in a housing slump. In recent months, the company has rolled out a new line of smaller, more affordable homes that it hopes will jump-start sagging sales. The move by one of the nation’s largest homebuilders comes amid a worsening housing slump that analysts now say could last for several more years. July 2, 2007
Alarms Sound on Dangerous Loans: Counseling, Advertising Aim to Keep Borrowers Out of ForeclosureThere’s a marketing blitz underway aimed at the homeowner in denial — the one missing mortgage payments, dodging calls from the lender and hoping for the best. This month, several groups have launched initiatives to educate the public about mortgages. The campaigns range from the traditional to the quirky. Most are heavily funded by the mortgage industry. All focus on stemming a recent surge in foreclosures that threatens to destabilize entire communities, if not the U.S. economy. July 2, 2007
Aching for Lost Friends, but Rebuilding With Hope“Backwater.” Or “cypress swamp.” That is how antique maps of this city describe what eventually became its far eastern edge, an area that juts out from the rest of the old town, hugging Lake Pontchartrain, and home for centuries to little more than wildlife and trees. This came as a surprise to me years ago, because by the time my family moved to eastern New Orleans in the early 1990s, it had long been drained and tamed and offered some of the most attractive undeveloped land anywhere in the city. More than anyone else, black middle-class families like mine flocked to it, architectural plans in hand, eager to escape the crime and congestion in the tight neighborhoods of older New Orleans. They wanted to build something new. July 2, 2007
Rent-To-Own Gains Appeal in Slow MarketMichigan’s sour housing market is pushing more sellers to slap rent-to-own signs in their front yards to lure buyers. At the same time, more purchasers are opting to get into homes using this nontraditional method, some real estate agents say. Raymond Lemons of RE/MAX Properties Inc. in Riverview said he has closed 10 rent-to-own deals in the past two years compared with none before then. Jaye Simpson of Nextpointe Real Estate Service in Troy said she completed about 15 rent-to-own transactions in 2006 and did 20 in the first three months of this year. Agents say the surge in rent-to-own deals in the region can be attributed to the increase in foreclosures, bad credit resulting from job cuts, homes sitting on the market too long and people not having enough money for a down payment. July 2, 2007
Federal Aid Programs for Texas Disaster RecoveryThe head of the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced that federal disaster aid has been made available for the state of Texas to supplement state and local recovery efforts in the area struck by severe storms, tornadoes, and flooding during the period of June 16-18, 2007. Following is a summary of key federal disaster aid programs that can be made available as needed and warranted under President Bush’s major disaster declaration issued for Texas. July 2, 2007
Look to the Past For SolutionsWhat kind of financing is possible for home buyers and sellers worried about rising mortgage rates, Wall Street bond-market jitters and soft home prices? Plenty. Although certain aspects of today’s post-boom marketplace may look scary on any given day, most of the traditional problem-solving tools of real estate finance are still at your disposal, whether you’re a buyer or a seller. July 2, 2007
When ‘Unaffordable’ Is GoodA widespread view among bank regulators, community groups and some legislators is that all home mortgages should be “affordable” and that government should do what is necessary to bring this about. Last week, I looked at a proposal designed to ensure the affordability of adjustable-rate mortgages. It would require lenders to qualify ARM borrowers not at the initial interest rate but at the fully indexed rate, which more closely approximates the rate at the first and second rate adjustments. July 2, 2007
Court vs. Arbitration: The Case for Each, and NeitherQ: We bought our house about a year ago and recently discovered a number of defects that were not disclosed to us by the sellers. For example, we were told that the electricity had been upgraded, but it had not. We were also told that there was never a water problem in the basement, but some recent storms have flooded the downstairs. We have reason to believe that the sellers flat-out misrepresented facts in the disclosure form they gave us. July 2, 2007
Real Estate Glossary: DelinquentA term that describes a homeowner who is behind on mortgage payments. The Mortgage Bankers Association refers to a homeowner who is more than 90 days behind as being in a “serious delinquency.” July 2, 2007
For new agents: Where to apply?You’ve just gotten your real estate license. How do you choose where to apply for a job? Before you decide, look at yourself honestly and ask how much hand-holding you’ll need from the brokerage, says James Kimmons, a Taos, N.M., a real estate broker and consultant who has written on broker commissions. July 2, 2007
Maryland: A Place One Can Afford to Call HomeIn the struggle to provide more affordable housing in wealthy Howard County, the opening of Port Capital Village’s 84 apartments in Elkridge represents a milestone of sorts. The seven three-story garden apartment buildings are part of the first all-subsidized rental complex for families constructed in the county in recent years. “It’s good to see affordable housing of any kind come along,” said Andre J. De Verneil, a member of the Interfaith Coalition for Affordable Housing. July 2, 2007
Scotland: Affordable homes crisis ‘much worse than thought’Edinburgh’s affordable housing crisis is much worse than was thought, says a leading expert. Professor Glen Bramley says that not only is more money needed for family homes in the Capital, but the wrong kind of property is currently being built. His views were backed up today by Labour’s housing spokesman Gordon Munro, who said the situation is “already at crisis level, and that will only get worse”. July 2, 2007
San Francisco: Developers await verdict on planned residential units Key zoning report will outline impact on city’s eastern areScores of developers with residential projects pending on San Francisco’s east side will learn more this week about whether they will someday be allowed to build thousands of new apartments and condominiums. More than a year after the Board of Supervisors and planning officials put an abrupt halt to the development plans, the city cleared for release on Saturday a draft report examining how zoning changes across 2,200 acres in four South of Market neighborhoods could affect the traffic, noise, pollution, jobs and housing supply in the area. July 2, 2007
New Scheme Preys on Desperate HomeownersWith the housing market in decline, financial predators are finding yet another way to take advantage of people who fall behind on their payments. The schemes take various forms and often involve promises to distressed homeowners of cash upfront, free monthly rent and a chance to retain their houses in the long run. But in the process, someone else takes over the deed, borrows as much as possible against the value of the house and pockets the cash. And, almost always, the homeowners still end up losing their homes. July 3, 2007
Ground-Rent Owners Rush to File SuitsEven though a state law ending ground-rent ejectments takes effect today, Baltimore residents will for years face the prospect of having their homes seized by investors or being hit with large fees over small unpaid land debts. About 775 cases - some dating to 2003 - are pending in Baltimore Circuit Court, including more than 300 new ones filed in June as ground-rent owners rushed to get cases logged in under the old law. There were 154 lawsuits filed on Friday alone. July 3, 2007
Tips From a Foreclosure InvestorFor some investors, the recent downturn in the housing market looks like opportunity. Some of the most aggressive of them go after foreclosures, homes that people have lost after they’ve fallen behind on mortgage payments or taxes. To find out more about this style of real estate investing, The Post’s Mary Ellen Slayter recently spoke with Ralph R. Roberts, co-author of “Foreclosure Investing for Dummies” and a longtime real estate agent and investor in Michigan. An edited transcript of the conversation follows. July 3, 2007
Your Money: Good credit score helps mortgage rateSales of existing homes fell to a four-year low last month, and the supply of homes for sale was up, which is happy news for house hunters. But unless you’re sitting on a mountain of cash, you’ll need a mortgage, and that’s no longer a sure thing. In response to a sharp rise in foreclosures, mortgage lenders have tightened their standards, leading to an increase in rejected applications. July 3, 2007
Brooklyn— Factory Fight Turning Bitter: Housing vs. preservation for Domino Sugar plantA huge red sign on the Williamsburg waterfront reads “SAVE DOMINO” - and symbolizes the high-profile fight over the future of the former sugar factory. Some parts of the Domino Sugar plant, shuttered for three years, are likely to be preserved. But at a city Landmarks Preservation Commission hearing last week, arguments still raged over the right balance between preservation and housing. Both affordable housing advocates and the developer called on the commission to limit landmarking to just a central portion of the plant - made up of three structures that date back to 1882. July 3, 2007
Housing and Retail Markets EntwinedA few weeks back, I was attending a panel discussion about real estate trends during a conference of the National Association of Real Estate Editors in Philadelphia. Now, though I write exclusively about residential real estate, I learned early on that you can’t ignore commercial trends because apartments and retail, office and industrial development play a critical role in the economics of buying and selling a house. A speaker on the panel, Jonathan Miller, editor of the Urban Land Institute’s Emerging Trends in Real Estate, was talking about the present fortunes of retail. July 3, 2007
Federal Aid Programs For New York Disaster RecoveryThe head of the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced that federal disaster aid has been made available for the state of New York to supplement state and local recovery efforts in the area struck by severe storms and flooding on June 19, 2007. July 3, 2007
Federal Aid Programs For Kansas Disaster RecoveryThe head of the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced that federal disaster aid has been made available for the state of Kansas to supplement state and local recovery efforts in the area struck by severe storms and flooding beginning on June 26, 2007, and continuing. July 3, 2007
The Top 10 Ways to Improve HUDThere are dozens of steps that need to be taken to improve HUD, but AHF has boiled them down to a list of ten, focused primarily on overall operations and multifamily programs. It goes without saying that higher Congressional appropriations would help improve the agency’s capabilities in many areas, but AHF has focused on improvements which have little or not budgetary impact. Many of them could be implemented by a HUD secretary with strong leadership and management skills, but some would require Congressional action. July 3, 2007
Pushing for Tax Credit ImprovementsThe effectiveness of the lowincome housing tax credit program could be improved by easing the restrictions on combining the credit with other federal subsidies, according to witnesses at a recent hearing of the House Ways and Means Committee’s subcommittee on select revenue measures. “We urge Congress to remove various restrictions that make it hard to coordinate housing credits with other federal policies and programs,” said Benson F. Roberts, senior vice president for policy and program development at the Local Initiatives Support Corp. “These restrictions frustrate efforts to address local needs, and add unnecessary legal and accounting costs.” July 3, 2007
Woes Loom on HousingHere’s a scary thought about the housing market: Things may be far worse than what’s being revealed by the troubling government and industry statistics. At issue is what goes into sales price data and what does not. When those numbers are crunched, many of the incentives that sellers are using to lure buyers - including cash rebates - aren’t being included. That suggests prices might be falling faster in many markets than is being reported. The same goes for how the mortgage-application indexes don’t account for the implosion of lenders. That could have the effect of masking a slowdown in demand. July 5, 2007
Pending Sales of Homes DeclineDon’t expect any quick rebound in housing. The National Association of Realtors said Tuesday that its index of pending sales — which tracks contracts that have been signed but not closed — fell 3.5% in May to 97.7 from the previous month and was down more than 13% from year-ago levels. The National Association of Realtors said Tuesday that its index of pending sales — which tracks contracts that have been signed but not closed — fell 3.5% in May to 97.7 from the previous month and was down more than 13% from year-ago levels. July 5, 2007
Toxic Loans ‘Designed to Fail’ Spur Harder LineLast week’s crackdown on toxic mortgages is not one of those regulations that harms one piece of the economy in exchange for greater good in another. It’s a pure benefit, despite what the Mortgage Bankers Association would have you believe. “This is a strong statement that will help curb abuses, but will likely also constrain consumer credit choices,” association Chairman John M. Robbins said Friday. July 5, 2007
Loan Changes in Brazil Motivate New Buyers and Home BuildingBrazil’s newfound economic stability and changes in lending laws are for the first time making it possible for the country’s working poor to buy their own homes. And using money that has been pouring in from foreigners who sense a lucrative investment — $4.8 billion since September 2005 — the country’s construction and real estate companies are building as fast as they can. “There is a stronger demand for houses. There is a housing deficit, and now there are people with money to buy them,” said João Crestana, the vice president of urban development at Secovi, a leading confederation of constructors and developers in São Paulo state, Brazil’s most populous. “Companies can see there is a market.” July 5, 2007
Canada: Lack of Affordable Housing Drives up Homelessness RatesLast year marked a turning point for Kim Poirier. She lost $900 a month in benefits after her son turned 18, and her landlord liquidated his assets, evicting his tenants. Her new place swallowed up 70 per cent of her and her partner’s combined income in rent, but at least they were able to keep their 10-year-old German shepherd. July 5, 2007
Boston: Planners Urge Dramatic Change in Region’s Development Patterns before Open Space is GoneMarc Draisen has seen the future for suburban communities, and for many, he said, it is troubling. They will grapple with serious water shortages. They will battle worsening traffic. And they will lose acres upon acres of fields and farmland. That bleak picture for a large swath of Boston’s northern suburbs comes from “MetroFuture,” a report by the Metropolitan Area Planning Council that forecasts significant problems over the next two decades if community leaders fail to dramatically change residential development patterns. July 5, 2007
Loan Predators Remain SafeThe feds decided to sidestep any call for increased regulation of third-party originators, leaving that issue in the laps of wholesale buyers of loans from brokers. Not a good idea. Why? Nearly all of the disclosures are made at or within three days of loan application. That occurs long before a lender or investor sees the loan. Add to this the fact that some mandatory disclosures are so out of date they actually contribute to misleading borrowers. July 5, 2007
Increasing Rate of Foreclosures Upsets AtlantaDespite a vibrant local economy, Atlanta homeowners are falling behind on mortgage payments and losing their homes at one of the highest rates in the nation, offering a troubling glimpse of what experts fear may be in store for other parts of the country. The real estate slump here and elsewhere is likely to worsen, given that most of the adjustable rate mortgages written in the last three years will be reset with higher interest rates, said Christopher F. Thornberg, an economist with Beacon Economics in Los Angeles. As a result, borrowers of an estimated $800 billion in loans will be forced in the next 12 months to 18 months to make bigger monthly payments, refinance or sell their homes. July 10, 2007
HUD Chareges Connecticut Landlord with Violating The Fair Housing ActThe U.S. Department of Housing and Urban Development announced today that it has charged Mahmoud Hussein, a landlord in Windsor Locks, Conn., with violating the Fair Housing Act by refusing to renew the lease of a woman whose disabled child needs a service animal. In early June 2005, Ann Mitchell asked to have her housing voucher transferred from Pennsylvania to Connecticut. After contacting the Windsor Locks Housing Authority regarding available properties, the authority referred her to Hussein’s single-family rental property, which was listed as being available. July 10, 2007
Developers Sue Over Zoning DenialDevelopers who were denied a zoning change for an 80-home subdivision north of Goodbee two years ago are suing the St. Tammany Parish Council for an unspecified amount of damages. Aymond Development LLC, in suit filed in state District Court in Covington, is also asking the court to grant the rezoning sought for 81 acres at the northern end of Tantella Ranch Road, just east of Louisiana 1077. July 10, 2007
Squeezed Out of A HouseFor just about all but people in the top income brackets, there is a crisis of housing affordability in the United States, observers say. Middle-income American service workers, especially those earning between $20,000 and $50,000 a year, have suffered the most, said William Hudnut 3d, an Urban Land Institute fellow and ex-mayor of Indianapolis. “Workforce housing is a touchy topic that generates a lot of talk but not a lot of attention - except that it should be built somewhere else,” Hudnut said. July 10, 2007
Real Estate is Little-Used IRA OptionReal estate has always been permitted in IRAs, but few people know about this option. Financial institutions - mutual funds, stock brokerages, banks - are typically where IRAs are held. But investments in other things, most notably real estate, are fully permissible under the Employee Retirement Income Security Act of 1974. It prohibits retirement plans from investing in two types of investments - life insurance contracts and collectibles. Everything else is fair game. July 10, 2007
Town Joins Housing Law ResistanceFranklin has joined more than 20 other communities statewide in pressing for a moratorium on construction of certain affordable housing projects built under the state’s Chapter 40B law. Walpole selectmen started the campaign, arguing in a letter to all communities that cities and towns should have more control over “unfriendly” 40B projects. Under 40B, developers can bypass most local zoning in communities where less than 10 percent of the housing stock is categorized as affordable, if they promise to reserve a portion of their projects for affordable housing. Some projects win favor with town officials; those that don’t have been dubbed “unfriendly.” July 10, 2007
Subprime Lenders On NoticeIt won’t mean the end of high-risk mortgages for subprime home buyers, but new guidance from federal financial regulators will almost certainly cut sharply the availability of some such loans. In a policy statement June 29 on loans to borrowers with imperfect credit histories, federal financial regulators urged banks, credit unions and their mortgage subsidiaries to verify the income, assets and employment of all borrowers, except when borrowers can show that they have substantial financial reserves. July 10, 2007
When Foreclosure Threatens, Beware the Bird DogsMortgage foreclosures are up — and so are the scams. Let’s say you have received a letter from your mortgage lender advising that if you do not bring your payments current, the lender will have no alternative but to begin foreclosure. Within days of receiving this notice, you may get a telephone call: “Hi, my name is I.B. Scammer, and I understand that you are delinquent on your mortgage payments. You don’t want to lose your beautiful home, and my company can assist you. When can I come over to explain how we operate and how we can help you?” July 10, 2007
Handling Home Titles and DivorceDEAR BOB: I divorced more than 25 years ago. My ex-husband and I held title to our home together. Because he didn’t show up in court, the judge ordered my husband to quitclaim our property to me. But he never signed the quitclaim deed. My attorney said it wasn’t necessary because of the judge’s ruling in the divorce decree. My adult daughter is concerned that after my death, my ex-husband could claim half of the property. Should I take action now? — Barbara V. July 10, 2007
New Loan Eliminates ‘Junk Fees’ but May Not Save You MoneyThere is much to admire in Bank of America’s new “no-fee mortgage plus” program for home buyers, but there also are some shortcomings. The program collapses all lender fees into one combination of interest rate and points, eliminating myriad lender “junk fees,” which often confuse shoppers. Junk fees are also a source of abuse by less scrupulous lenders who require them at the last minute. July 10, 2007
Sterling Heights Housing Complex to Get A RefitA Michigan developer will retrofit a housing complex to make it accessible to the disabled and pay $50,000 in penalties to settle a civil lawsuit filed by the U.S. Justice Department, officials announced Monday. Developer Palazzolo and Lombardo LLC of Michigan has already built ramps to make ground-floor apartments accessible at their complex on Cherry Creek Lane, called The Preserves, U.S. Attorney Stephen Murphy said in a news release. The company will also take steps to make condominiums, part of the same development, equally accessible. July 10, 2007
Affordable Housing Efforts CriticizedAmid what Los Angeles leaders call a housing crisis, city departments have failed to figure out how many affordable units are needed or are even on hand, according to an audit by City Controller Laura Chick. “The answers to these questions should be clear and apparent, but they are not,” Chick wrote in a letter Monday to city elected officials. Officials at the city Housing Department sharply disputed that finding. As rents have spiraled upward over the last few years, the dearth of affordable housing has become an increasingly hot political issue. Last fall, the city asked voters to approve a $1-billion bond measure that would have raised taxes to build affordable housing — defined as rental units restricted to families with low and moderate incomes. July 10, 2007
Canada: Renters in Tenuous MarketLow-income Reginans could find it tough to find affordable housing if rental stock is sold off. Not all landlords are created equal. Nor are all tenants. Some people who own and rent out houses and apartments have fine relationships with their tenants, who respond by paying their rent on time and taking care of those properties. But other rental relationships are rockier. Holding landlords to account, one of the City of Regina’s priorities over the last few years has been a requirement to upgrade rundown rental homes, especially in core neighbourhoods. July 10, 2007
Minority Families Face Wave of ForeclosuresMore than a quarter million black and Hispanic families are expected to lose their homes in the next few years due to foreclosure. For many, the financial trouble will be traceable to a mortgage they should never have been given. The heads of these households signed up for mortgages that appeared affordable, some with enticingly low starter rates. But what they were really agreeing to were loans with ultimately onerous terms, high costs and prepayment penalties that make refinancing the loan difficult.The problem is worse for minority borrowers, consumer advocates say, because they were disproportionately pushed into these subprime mortgages even when, in some cases, they qualified for conventional financing. Subprime loans are generally made to those with blemished credit histories. July 10, 2007
States Push Ahead With Subprime-Mortgage Laws as Congress LagsState lawmakers, faced with a record number of constituents who may lose their homes, are pressing to pass their own laws to halt mortgage-lending abuses, saying they can’t afford to rely on the U.S. Congress to act. Legislators in some 30 states have introduced about 85 bills to protect mortgage borrowers from deceptive-lending practices, foreclosure or fraud, according to a Bloomberg analysis of data from the National Conference of State Legislatures. July 10, 2007
Housing Woes Hammer Wall StreetThe foundation of the Wall Street bull market showed some cracks Tuesday amid fresh signals that real estate woes on Main Street are inflicting a bigger-than-expected toll on consumers and lenders. Mimicking the weak state of the real estate market, Wall Street saw its inventory of stocks “for sale” swell and its prices contract. The weakness was sparked by a stream of bad news that cast a spotlight on the mushrooming economic and financial fallout caused by rising foreclosures, loans gone sour and a growing glut of unsold homes. July 11, 2007
Study: Wealth Doesn’t Stop Minority Loan BiasHigher income does not protect blacks and Hispanics from receiving mortgage loans with above-market rates, a new study by a group pushing for reforms to lending laws says. The report, released Tuesday by the Washington-based National Community Reinvestment Coalition, concludes that in 2005 blacks in 171 metropolitan areas were at least twice as likely as whites to receive expensive loans. The study was based on an analysis of nationwide mortgage data collected by the Federal Reserve for the most recent year available. July 11, 2007
HUD: Reliable Government-Approved Housing Counseling Services AvailableThe U.S. Department of Housing and Urban Development is encouraging all residents interested in owning a home, refinancing their mortgage or taking steps to avoid foreclosure to contact a local housing counseling agency for fair and reliable advice. With over 2,300 HUD-approved counseling centers throughout the country, these community-based facilities can educate homebuyers on how to purchase a home, avoid predatory lenders and assist current homeowners facing possible foreclosure. July 11, 2007
Toxic Buildup in Slumping Housing MarketHow do you deal with excessive supply? Add more supply! Sounds like a head scratcher, but that’s exactly what home builders are doing. The housing market hasn’t seen any light at the end of the tunnel: Home builders have built too many homes and they’ve had too many cancellations. There are too many existing homes on the market competing with them, and now here come the foreclosures adding to supply. July 11, 2007
S&P May Cut Ratings on $12.1B of Subprime Mortgage DebtStandard & Poor’s said Tuesday it may cut ratings on $12.1 billion of mortgage-related debt this week on expectations for an 8% drop in U.S. home prices and more mortgage defaults. The move by S&P, a leading rater of corporate bonds, rattled global financial markets on fears the unfolding crisis stemming from risky home loans may have a wider impact on the economy and prompt investors to sell securities tied to so-called subprime debt. July 11, 2007
No Single Decision Doomed LeveesA comprehensive study of the 50-year history of decisions involving New Orleans’ hurricane-protection levee system concludes that no single decision shaped its failure to protect the area from the devastating flooding resulting from Hurricane Katrina. Rather, the Army Corps of Engineers-financed report, released today, spreads blame over a complex combination of political, economic and engineering decisions made without a routine review of how the individual decisions affected the hurricane protection system as a whole. July 11, 2007
West Bank Still Vulnerable to High FloodingThree weeks late, the Army Corps of Engineers released maps today revealing the West Bank’s severe vulnerability to storm surges, a predicament that hasn’t changed in the two years since Hurricane Katrina, given that the region awaits major improvements to its gaping line of levees and floodwalls.The visuals of what might happen if a 100-year storm pushes a tidal surge across West Jefferson, Algiers and Plaquemines Parish show vast swaths covered in more than 8 feet of water. Higher areas closest to the Mississippi River, naturally, would escape damage, while the chance of inundation increases substantially farther south, especially in areas of reclaimed swampland. July 11, 2007
Low-Rent Program Predicts LossesThe Washington region stands to lose about 26,000 affordable housing units over the next five years as a number of property owners opt out of a housing program designed to keep rents low. Many contracts signed under the project-based Section 8 program are expiring. And with property values having risen dramatically, some owners are selling their buildings or converting them to condominiums or upscale rentals. July 11, 2007
Baltimore-Area Home Prices RiseMetro area home prices advanced nearly 5.5 percent in June, led by Baltimore City where the average price breached the $200,000 mark for the first time, statistics released yesterday showed. But with sales volume dropping at a double-digit rate and listings continuing to mount, economists said that the price gain likely was the result of a shift to more expensive homes rather than a sign that the housing slump was nearing an end. The average price of a house in Baltimore and the five surrounding counties rose to $337,102 last month, from $319,633 in June 2006, according to Metropolitan Regional Information Systems Inc., a Rockville firm that tracks sales through the multiple-listing service. Gains were widespread, with only Carroll County registering a decline. July 11, 2007
Handling HomelessnessWestchester County’s government has seen its share of grief and controversy in its handling of the homeless people in its midst. Public awareness of the problem has ebbed and flowed over the years, but the wrangling and resentment seem only to have increased since 2005, when County Executive Andrew Spano closed an overnight shelter for homeless men at the county airport and opened one soon afterward in White Plains. A shocking fatal stabbing in a White Plains parking garage by a homeless sex offender in 2005 helped to force the issue into the realm of hardball politics and grandstanding, where it has stubbornly remained. July 11, 2007
Numbers Paint Area Housing as Good Betissue, but I remember the observation that “statistics can be tortured into saying anything.” That’s why I always look at the data and surveys that pop up in my e-mail with a jaundiced eye. And even after I decide to share the information with you, I recommend that you be as discriminating in judging it as I tried to be. PMI Mortgage Insurance Co.’s Market Risk Index merits considerable analysis by both of us. The index ranks 50 metropolitan areas according to the risk that home prices will be lower in the next two years. July 11, 2007
Don’t Miss The Deadlines For Disaster AssistanceOnly one month remains for people impacted by the severe storms and flooding that occurred May 5 — 18, 2007, to register for disaster assistance, the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) and Missouri’s State Emergency Management Agency remind residents. The following deadlines are important for homeowners, renters and business owners in Andrew, Atchison, Buchanan, Carroll, Chariton, Clay, Daviess, De Kalb, Gentry, Holt, Jackson, Lafayette, Livingston, Morgan, Nodaway, Osage, and Platte counties: July 11, 2007
A Place to Stay, and Pray: Christian ministries group buys Peppermill FarmsThe Peppermill Farms apartment complex was sold recently to an owner that not only wants to be a landlord — but also to save souls. Global Ministries Fellowship bought the property, which had been listed at $4.4 million, as part of a housing outreach program. The Memphis, Tenn.-based Christian group also plans to buy other apartment communities in the Indianapolis area and in other large cities.The nonprofit group has hired locally based Van Rooy Properties, which was the seller of the complex, to continue to manage the Peppermill complex, and plans to set up voluntary services such as parenting classes, after-school child care and pregnancy counseling for residents. July 11, 2007
Wind Power Project Backers Boast Organizational SupportBackers of the Black Nubble wind power project pointed to a diverse array of groups supporting the plan as evidence it deserves to be approved. At a press conference Tuesday, the Natural Resources Council of Maine released a list of over 20 organizations, including faith-based groups and those that advocate for health issues, that support the Black Nubble wind power project. Maine Audubon, one of the state’s largest environmental groups, said Tuesday it would oppose the project at Land Use Regulation Commission hearings to be held in September. July 11, 2007
FL: Martin OKs Plan to Spur Affordable HousingMartin County took steps Tuesday to make life in one of the state’s priciest counties more affordable for lower-income residents. The next step is a big one: Finding money to make it all work. County commissioners approved the creation of a community land trust that, along with nonprofit agencies, would buy property to sell or rent as affordable housing. They also signed off on a law that will help replace mobile home parks that are being torn down and redeveloped, costing the county one of its prime sources of affordable housing. But, for now, they haven’t found a source of money for either idea. July 11, 2007
OH: Governor Signs Eminent Domain MeasureGov. Ted Strickland on Tuesday signed compromise legislation defining Ohio’s eminent domain laws that cities, including Akron, say is too restrictive. Others, meanwhile, say the measure does not go far enough to protect private-property rights. “This bill will provide greater transparency and accountability for public agencies that have the right of eminent domain, striking a balance between the strong sentiments of property-rights advocates and the need for government to acquire private property for legitimate public use,” a news release from the governor’s office said. July 11, 2007
Predatory Lending: Cheating Workers Out of House and HomeYou’ve heard the commercials. “Want to own your own home, want to buy a car? Bad Credit? No Credit? No problem!” The past decade has seen the immense growth of “subprime” loans made to millions of people with bad credit histories. Mortgage loan companies and banks have made hundred of billions of dollars in profit by preying on people who would otherwise be shut out of the market. These days, it’s hard to even pay for basic necessities without going into debt, as stagnating wages fail to keep pace with the fast-rising cost of living. In this context, subprime loans were made attractive by all kinds of gimmicks like really low teaser interest rates that later double or triple (called exploding ARMs — adjustable rate mortgages), or loans with no money down, no credit check, and little proof of income needed. Some schemes even offer interest-only repayment. July 11, 2007
Road to New Life After Katrina Is Closed to ManyThis was not how Cindy Cole pictured her life at 26: living in a mobile home park called Sugar Hill, wedged amid the refineries and cane fields of tiny St. James Parish, 18 miles from the nearest supermarket. Sustaining three small children on nothing but food stamps, with no playground, no security guards and nowhere to go. No, Ms. Cole was supposed to be paying $275 a month for a two-bedroom house in the Lower Ninth Ward — next door to her mother, across the street from her aunt, with a child care network that extended the length and breadth of her large New Orleans family. With her house destroyed and no job or savings, however, her chances of recreating that old reality are slim. July 12, 2007
HUD: Jackson OK’S $263 Million Plan to Help Restore Affordable Rental Housing in South MississippiIn an effort to boost the affordable rental housing market in South Mississippi, U.S. Housing and Urban Development Secretary Alphonso Jackson today okayed a $262.5 million state plan to help landlords of small rental properties in the Magnolia State to recover from the effects of Hurricane Katrina. Mississippi’s Small Rental Property Assistance Program is designed to promote the repair, rehabilitation and new construction of rental properties located in Hancock, Harrison, Jackson and Pearl River Counties. July 12, 2007
HUD Announces Settlement with Fairfield Resorts Over Allegations of Illegal Marketing and Sales TacticsThe U.S. Department of Housing and Urban Development today announced a formal settlement agreement with Fairfield Resorts, Inc. following an investigation into alleged misrepresentations and failures to make proper disclosures to consumers dating back to the 1970s. The agreement announced today involves hundreds of consumer complaints that Fairfield failed to complete promised utility and street improvements for lots in a development in Cumberland County, Tennessee known as Fairfield Glade. Based on the findings of an investigation under the Interstate Land Sales Full Disclosure Act, HUD alleged that Fairfield failed to meet a 1998 deadline to make water, sewer, electric and street improvements, despite having more than two decades to do so. HUD also alleged that Fairfield marketing and sales agents engaged in various misrepresentations regarding the investment potential of certain lots. July 12, 2007
Home Prices Expected to Rebound in 2008The prices of existing and new homes are expected to bounce back next year after a dreary 2007, a real estate trade group said Wednesday. The National Association of Realtors also said it expects existing-home sales to rise to nearly 6.4 million in 2008, up from the 2007 estimate of more than 6.1 million. Nearly 6.5 million existing homes were sold in 2006, the association said. July 12, 2007
Michigan No. 3 in U.S. ForeclosuresMichigan ranks third nationwide in mortgage delinquency rates, new foreclosures and existing foreclosures, according to new data from the Mortgage Bankers Association. And the association’s chief economist, Douglas Duncan, said Wednesday the state’s foreclosure cycle likely will not end soon. “It is difficult to forecast if we will see more increases or if we are at the peak. What we believe … is we are nearing the peak of total delinquencies,” Duncan said during an interview with the Free Press. Duncan said that home loan delinquencies could peak within the next six months to a year with foreclosures peaking six months after that. July 12, 2007
MD: Mortgage Companies Sued in Pr. George’sTwo months behind on her mortgage and struggling to come up with a third payment, Angele Reid knew she was headed for trouble. She heard a radio ad about a foreclosure-recovery program offered by a local company, and she thought it was the way to keep her Oxon Hill home. But that turned out to be far from the end of her worries. Now Reid is part of a class-action civil lawsuit filed recently on behalf of hundreds of homeowners who say they lost millions of dollars in equity through an elaborate scheme operated by several Prince George’s County businesses. July 12, 2007
Rush to Ejectment CriticizedLeaders of the Greater Baltimore Board of Realtors, which for years served as an advocate for ground rent owners, are criticizing some of them for rushing to seize houses of delinquent rent-payers ahead of a recent change in state law and are proposing to help affected homeowners. The Realtors are talking with the Community Law Center in Baltimore about using their charitable foundation to help pay for review of ejectment lawsuits to ensure that they were conducted properly and that fees are “reasonable.” July 12, 2007
System Glitch Delays Housing NumbersThe news last week that the San Fernando Valley saw a record median house price of $650,000 in May was not all that surprising. The bigger surprise was that it eclipsed the prior record set in April of $637,000. We didn’t learn about that in May, though. Nor did we know that April’s record price came in a month when sales plunged an annual 51.7 percent to 447 transactions, the steepest drop since the slump began in October 2005. Usually, we would learn of the past month’s numbers about a week to 10 days after the new month started. That has not happened yet this year. July 12, 2007
2,200 to Get Reprieves on ForeclosuresFremont Investment & Loan yesterday agreed to postpone foreclosure proceedings against 2,200 Massachusetts homeowners after state officials determined the lender gave subprime mortgages to borrowers who could not afford the loan payments. Attorney General Martha Coakley secured the 90-day foreclosure moratorium from Fremont, once the state’s second-largest issuer of subprime loans, after she threatened in May to sue the California company over lending practices she alleged violated the state’s consumer-protection laws, such as making mortgages without fully disclosing the terms. July 12, 2007
New Orleans: Limits on Modular Homes to StandThe Pearl River Board of Aldermen will not change an ordinance that prohibits construction of modular homes in some areas of town, the group agreed at its monthly meeting Tuesday night. In May, Gary and Jennifer Burnett requested a waiver from the board to place a modular home in an area on Nelson Road that allows only traditionally built single-family homes. The home the couple planned to build, a three-bedroom, two-bath, 2,180-square-foot house, would have been partially constructed in a factory and then shipped in pieces and assembled on site. July 12, 2007
SLUMP IS GOOD | Wannabe homebuyers see happy ending in dropping pricesKurt Montufar isn’t stressing over the housing slump. He’s actually hoping things get worse. Like many wannabe homebuyers who were priced out of the market during the last boom, Montufar spends time these days scanning real estate ads and news reports to determine if it’s time to take the plunge and buy. Foreclosures rising? Great. Cash-strapped sellers pressured into lowering prices because they can’t find buyers? Even better. July 12, 2007
HUD Announces Creation of New Lending DivisionIn order to ensure equality in today’s lending and overall housing market environment, the U.S. Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity (FHEO) announced today that it is creating a new Fair Lending Division that will review mortgage lending practices throughout the nation. HUD has hired a senior-level economist and has advertised to hire five fair lending specialists to enhance its capacity to investigate allegations of mortgage lending discrimination. July 12, 2007
UK: NHF—Housing Failure Will ‘Condemn a Generation’The National Housing Federation (NHF) has challenged the government to build a set amount of affordable houses a year or it will risk condemning a generation to poor housing. The federation, which lobbies for affordable housing, welcomed Mr Brown’s announcement of a major house-building programme, but warned that it would not solve the situation unless they were both affordable and desirable. July 12, 2007
Shelter Won’t Face Suit Over Lesbian’s Bias ClaimA Chicago woman who said she was denied access to a homeless shelter because she is a lesbian said Wednesday that she will not file a lawsuit after the Rogers Park shelter agreed to employee training and other steps to ensure its facilities do not discriminate against gay, lesbian and transgendered people.“I think this training will be done wholeheartedly, and it’s going to be awesome,” said Michelle Wang, who filed charges of discrimination in April saying that she was denied shelter at New Life Interim Housing because of her sexual orientation. July 12, 2007
A Helping Hand for Subprime Mortgage HoldersWhile real estate investors in the stock market can pull out of the subprime lending maelstrom before the market downturn worsens, across the country individual homeowners faced with ballooning mortgage payments find little relief. But in Chicago, a local government program aims to help those homeowners who may be facing foreclosure. Since 2003, more than 5,400 Chicago-area residents have contacted the City’s Housing Preservation Initiative’s “Call 311” program (HOPI) for foreclosure assistance, and 1,500 homes have been saved. July 12, 2007
NEW HPD WEBSITE TOOL ENABLES NEW YORKERS TO CHECK HPD HOUSING COURT LITIGATION FOR RESIDENTIAL BUILDINGSThe New York City Department of Housing Preservation and Development (HPD) today launched a new website feature that will allow New Yorkers to check housing litigation cases initiated by HPD or in which HPD is a partyfor any registered residential building. Through HPD’s website at www.nyc.gov/hpd, New Yorkers can currently research all open housing code violations, registration information, emergency repairs in progress, status of complaints to 311 and other information. Now they can also review pending cases brought in Housing Court since August 2006 after entering the building’s address on the “Complaint, Violation and Registration Information” look-up, located on the right column of the HPD website’s homepage www.nyc.gov/hpd. July 12, 2007
Boston: Street Icon ‘Mr. Butch’ Dies at 56Dreadlocked, homeless, and usually cheerful, Mr. Butch was an iconic presence in Kenmore Square for years before moving his base of operations to Harvard Avenue in Allston a decade ago. Ranting in rhyme with a beer in hand — a tall boy, preferably — he would panhandle one minute and offer to share his take with a friend the next. “Mr. Butch,” whose name was Harold Madison Jr., died yesterday of injuries from an early morning crash when the motor scooter he was driving hit a pole, friends and family said. July 13, 2007
U.S. Home Foreclosures Drop in June: But default rates expected to escalate as mortgages resetU.S. home foreclosures fell in June after jumping to a 30-month peak in May, but default rates will escalate as a horde of mortgages resets at higher loan rates, real estate data firm RealtyTrac said on Thursday. Foreclosure filings fell 7 percent in June to 164,644 after jumping 19 percent in May, but they remain 87 percent above last June’s pace, with one filing for every 704 households, RealtyTrac said in a monthly report. July 13, 2007
Mortgage Rates Rise to Second-Highest Level for The YearRates on 30-year mortgages rose this week to the second-highest level of the year as financial markets reacted to stronger economic news. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.73% this week. That was up from 6.63% last week and was very close to the high point of the year, which was 6.74% set the week of June 14. In the following three weeks, rates had edged down slightly. July 13, 2007
HUD Releases Tips for Avoiding ForeclosureToday, the U.S. Department of Housing and Urban Development (HUD) released its top 10 tips for homeowners who are facing foreclosure. “These guidelines will assist homeowners who are struggling to pay their mortgage and could be threatened with foreclosure,” said HUD Secretary Alphonso Jackson. “We want to encourage homeowners to take action and use every resource available so that they can get control of their finances and stay in their home.” July 13, 2007
Regional Hiccup in Foreclosure DataMortgage foreclosures grew 87 percent nationwide in June, and by 8.2 percent in the Philadelphia area, according to a report released yesterday by a California firm that tracks mortgage defaults. But a wide disparity in the number of defaults in South Jersey compared with defaults in Southeastern Pennsylvania left regional economists questioning the data’s validity. The Pennsylvania counties, including Philadelphia, had a 30 percent decline, while the total for Camden, Burlington and Gloucester Counties more than doubled, according to Irvine, Calif.-based RealtyTrac Inc. July 13, 2007
MD Notifies Borrowers in Ameriquest SettlementMarylanders who got home loans from Ameriquest Mortgage Co. can begin to claim their share of a $325 million settlement reached with the subprime lender that was accused of preying upon borrowers nationwide with deceptive practices. Douglas F. Gansler, Maryland’s attorney general, announced yesterday that his agency and the Maryland commissioner of financial regulation sent letters and claim forms this week to 12,340 Ameriquest customers in Maryland who are eligible for $7.8 million in restitution. July 13, 2007
In Suit Against Landlord, Tenants Make Unusual Accusation: RacketeeringA group of tenants filed a federal racketeering lawsuit against one of the city’s fastest-growing residential landlords yesterday, accusing it of harassment, fraud, rent overcharges and illegal evictions. The suit, filed in Federal District Court in Manhattan, contends that the landlord, the Pinnacle Group, and its owner, Joel Weiner, systematically evicted tenants to raise rents in apartments throughout the city, but primarily in units concentrated in Harlem, Washington Heights and the Bronx. July 13, 2007
A Reverse Mortgage May Help RefinancersHow are baby boomers who are still carrying hefty first and second mortgages going to pay them off? Millions of homeowners refinanced during the “refi boom” years of 2003-2004 and took out new loans with 15-year or 30-year terms. Some boomers now in their late 50s and early 60s have big mortgages with terms running for another quarter-century. When monthly payments on those mortgages begin to weigh heavily, will boomers need to sell their houses to relieve the debt pressure? The largest banks and mortgage companies in the country are readying new financial products designed to make the answer to that question a resounding no. July 13, 2007
Los Angeles: New homeless dumping allegation probedThe City Attorney’s Office is investigating whether Kaiser Permanente dumped a homeless patient on Skid Row, in violation of a settlement reached in a previous case. The latest inquiry began after officials learned that workers from Kaiser’s Baldwin Hills hospital took a 26-year-old man with severe back pain to homeless shelters downtown against his will, officials said. July 13, 2007
Modular Homes Give Areas a BoostShipped in modular sections from a factory in Indiana, the ranch-style home of Tamika and Andrauyl Hines was assembled piece by piece Thursday within a few hours on Delmar Street in Detroit’s NorthEnd Village. “I’ve been customizing shoes and T-shirts” to afford the down payment, Andrauyl Hines said. “I can’t wait to see my family inside.” NorthEnd Village, one of six city neighborhoods slated for revitalization within the next five years, is part of the Next Detroit Neighborhood Initiative, an effort Mayor Kwame Kilpatrick announced in December. July 13, 2007
Mississippi Schools to Set Storm Shelter StandardsOfficials broke ground late June for two new schools in Harrison County that also will serve as state-of-the-art storm shelters for residents in the event of severe weather. Two Hazard Mitigation Grants for about $19 million will pay for shelters in D’Iberville and west Harrison County high schools that will incorporate special construction measures such as double roof and windows to withstand 200 mph wind gusts. The grants will also pay for specially reinforced concrete and steel shelter areas with backup water, sewer and electrical systems. The two shelters will provide refuge for more than 5,000 Coast residents when another hurricane strikes. July 13, 2007
Borrowers Sue Subprime Lender, Allege Race BiasThree African-American mortgage borrowers from Boston accused Countrywide Home Loans Inc. of racial discrimination in a federal lawsuit yesterday, saying the nation’s largest home lender charged them more for subprime mortgages than it charged white borrowers in similar financial situations. July 13, 2007
Pelosi: Housing Bill a Critical Step in Addressing Nation’s Affordable Housing CrisisSpeaker Nancy Pelosi released the following statement today on H.R. 1851, the Section 8 Voucher Reform Act of 2007, sponsored by Congresswoman Maxine Waters of California. The House is expected to pass the bill on the House floor this evening. “Housing is a fundamental human need, but as federal housing initiatives have shrunk and the cost of housing has soared in recent years, more Americans have found themselves without a roof over their heads. As the minimum wage stagnated over the past 10 years under the Republican-led Congress, the gap between families’ earnings and the cost of housing has grown larger. July 13, 2007
Affordable Housing in Crisis, Politicians AgreeThere’s no doubt that Ottawa’s affordable housing is in a state of crisis, which prompted all levels of government Thursday to agree that they need to tackle the issue. But if you’re one of the more than 10,000 people on the city’s growing waiting list looking for a home don’t hold your breath. July 13, 2007
Affordable Housing Advocates Arrested in San FranciscoTen affordable housing advocates were arrested on Wednesday during a takeover at 3400 Cesar Chavez Street. Demonstrators pitched tents on the property to show resistance to an approved plan for market rate condominiums. The advocates included members of the Mission Anti-Displacement Coalition (MAC), La Raza, the LGBT community, and other local allies. July 13, 2007
County Billed $1.93 Million in Legal FeesThe U.S. Department of Justice has sued Sarasota County for housing discrimination. A federal judge has consented to the county’s request for a trial on the charges in September. A wall of silence has descended around the Sarasota County officials charged with housing discrimination by the U.S. Justice Department’s Civil Rights Division, but more than $1.96 million in bills for outside legal expertise remain an open record. “I will not comment,” said County Commission Chair Nora Patterson, a veteran public servant who is normally candid about issues that affect taxpayers. July 13, 2007
HUD Releases Working Papers On GSEs’ Funding of Affordable LoansThe Department of Housing and Urban Development today announced the release of two research working papers that analyze the performance of Fannie Mae and Freddie Mac, two housing government sponsored enterprises or GSEs, in funding loans that serve affordable housing. The papers, which were prepared by HUD’s Office of Policy Development and Research, are based on loan level mortgage data that the GSEs are required to provide to HUD annually. July 17, 2007
Slidell Family’s Residence was Sold at Auction Because of a $1.63 Tax Bill They Didn’t Even Know About.In1996, the St. Tammany Parish Sheriff’s Office mailed a paltry $1.63 property tax bill for the Slidell-area home of Kermit and Dolores Atwood that never reached its destination. The seemingly innocuous, misaddressed bill was the start of a bizarre legal ordeal that threatens to leave the couple homeless and now stands at the door of the state Supreme Court. The chain of events that followed the wayward property tax bill, including the eventual sale of the home at a sheriff’s tax sale, is described by Dolores Atwood as “seven years of emotional hell.” “I don’t know how much more I can endure,” said Atwood, 69, while sitting in a FEMA trailer in front of her Katrina-ravaged brick home on Dauphine Street, just north of Slidell. July 17, 2007
D.C. Mayor Hopes for $117 Million YearlyMayor Adrian M. Fenty said yesterday that he wants to allocate $117 million in new revenue every year as part of a plan to protect and create affordable housing in the District. According to an outline of the initiative, which Fenty (D) presented to more than 500 Washington Interfaith Network members, 30 percent of new housing units built on city-owned land must be affordable for low-income residents. July 17, 2007
MD: Montgomery Homeowners Face Surge in ForeclosuresMore than 700 homes were in foreclosure in Montgomery County between April and June of this year, up from 49 during the same period last year, said Maryland Labor Secretary Tom Perez, offering a sobering picture yesterday of how the surge in foreclosures is affecting the affluent county. “The foreclosure bug has infected Montgomery County, and it is time to apply some medicine to cure the problem,” Perez said. July 17, 2007
First Rung on Property Ladder Gets Harder to ReachIt’s 118 degrees in Baghdad, but Peter Hudson is willing to sweat it out there, literally, for 18 more months. Why? So he can save up enough money to buy his first home back in the States — ideally with a swimming pool. “I’m really, really hoping for a pool,” says Hudson, 32, who works for a contractor providing private and corporate security outside Baghdad’s Green Zone. By working in Iraq, he can temporarily pull in a six-figure salary that’s about double what he’d earn doing similar, if much less dangerous, work in the USA. July 17, 2007
LA: Housing Authority Blasted in ReportA new federal report on the politically divided Kenner Housing Authority details dozens of problems ranging from shoddy accounting controls and poor building maintenance to illegal payments to board members. But Housing Authority officials said Monday that some of the problems have been solved and others are being addressed. “We’re going to go over the report section by section,” Chairwoman Conchita Sulli said. The U.S. Department of Housing and Urban Development’s New Orleans office released the comprehensive review after visits from eight HUD officials in April and May to the Kenner authority. HUD spokeswoman Patricia Campbell said it is the first such review in at least five years. July 17, 2007
The Cost of Saving EnergyNew Yorkers have often been told that they use less energy than most Americans, partly because they live in the most densely populated city in the country. And that’s true, up to a point. Sure, New Yorkers have the benefit of an extensive mass-transit system, which means lower auto emissions, but the city’s residential buildings are less energy-efficient than those in many other places in the country, particularly in eco-friendly states like California and Vermont. July 17, 2007
Facing a Loss at Sale? Consider the Tax Benefits of Becoming a Landlord.Q: A year and a half ago when the market was hot, we purchased a home in Virginia that we thought would be ours for a long time. However, I have been transferred to the West Coast, and we are now facing a loss when we sell our home. Fortunately we do not think we will have to come up with cash to sell it because we made a large down payment. If we had made profit on the house, I understand, the IRS would allow us some partial exclusion of that gain, even if we had not owned the house for a full two years. Can we deduct all or even a part of our loss? July 17, 2007
Paths to Relief For Boomers in DebtHow are baby boomers who are still carrying hefty first and second mortgages going to pay them off?Millions of homeowners refinanced during the “refi boom” of 2003 and 2004 and took out new loans with 15- or 30-year terms. Many in their late 50s and early 60s now have big mortgages with terms running for another quarter-century. July 17, 2007
Tax Lien Nightmare Ends in SlidellA Slidell-area couple whose house was sold for a $1.63 property tax bill they knew nothing about will have clear title to their home today, thanks to a local businessman who paid to settle a years-old lawsuit with the land company that claimed their property. “I don’t even know who to thank,” said Dolores Atwood. “But I’m relieved and happy that this is finally over … I’m relieved and tired.” July 18, 2007
Two Million More Seniors Could Access Reverse Mortgages Under FHA Reform ProposalTwo million older Americans could tap into the equity they have built up in their homes by obtaining reverse mortgages if Congress passes legislation to modernize HUD’s Federal Housing Administration (FHA), according to a U.S. Department of Housing and Urban Development estimate released today.HUD Secretary Alphonso Jackson is urging Congress to quickly enact The Expanding American Homeownership Act of 2007, which could help more seniors access reverse mortgages and build nest eggs for health care needs, home repairs and other emergencies. July 18, 2007
Reverse Mortgages More PopularIn a reverse mortgage, the lender gives you the money - as a lump sum, in monthly installments or as a line of credit - and takes your home equity as payment. Typically, reverse mortgages don’t have to be paid back until you sell your home, move or die. People must be at least 62 to qualify for a reverse mortgage. As with all loans, reverse mortgages have fees and charge interest. For example, a 78-year-old borrower whose home is worth $200,000 might end up with a reverse mortgage of $123,000, based on his age, interest rate levels and other factors. July 18, 2007
Foreclosures Bloom at Corner Of Prosperity and GullibilityWhere I live in Prince George’s County, new homes are popping up all over the place. Some are luxury digs with home theaters, designer bathrooms and gourmet kitchens. And they are selling fast. Forget that old American dream of two cars in every garage and a chicken in every pot. Some of my neighbors own three or four cars and have freezers full of steaks. But signs abound that success is an illusion in many cases. Just look at the proliferation of placards on utility poles, even around my house in relatively affluent Fort Washington: “Behind in your mortgage payments?” “Need fast cash?” “Get out of debt now.” July 18, 2007
The Fallout of Subprime LoansBefore Donna Marie Pearce signed the mortgage documents at the closing on her Bridgeport condominium a year ago, she questioned why the interest rates on the loan were so high. Eighty percent of the loan carried an interest rate of 8.7 percent for the first two years. (After that, she would learn, the rate could change every six months, reaching 10.2 percent.) The remaining 20 percent of the loan was financed at 13.05 percent. Her monthly total for the $135,000 condo would exceed $1,100, not including taxes or insurance. “I asked the mortgage broker about the rate and she said: ‘Oh, don’t worry! In six months you will be able to refinance,’ ” said Ms. Pearce, 53, who works as a nanny in Fairfield. July 18, 2007
Feds, States Team Up to Look at Subprime LoansFederal and state regulators Tuesday announced a coordinated effort to weed out deceptive or unfair practices at some of the nation’s largest subprime mortgage lenders. The announcement came just before Federal Reserve Chairman Ben Bernanke’s scheduled testimony on the economy before a House panel today. Bernanke could be peppered with questions from lawmakers who say the Fed hasn’t done enough to stop abusive lending. July 18, 2007
Edwards’ Plan to Fight Predatory LendingA national anti-predatory lending law to keep unscrupulous lenders from jumping from state to state. A bankruptcy law that lets homeowners shed excessive mortgage debt and keep homes. A “home rescue fund” to help homeowners who are only a few months behind in payments. In April, mortgage companies filed 1,716 foreclosures against homeowners, more than double the number filed in April a year earlier, according to the Association of Community Organizations for Reform Now, or ACORN. The group analyzed data from the Web site RealtyTrac Inc., which tracks foreclosures. July 18, 2007
Bullard: Green Issue is Black and WhiteAs he surveys the nation’s landfills, chemical plants, waste facilities, and smelters, Robert Bullard sees an insidious form of institutional racism. “When you look at the neighborhoods that are where you have a lot of different waste facilities… the people who live closest are oftentimes the most vulnerable people who have the fewest resources to escape neighborhoods because of residential segregation, housing discrimination, and limited incomes,” said Bullard, a professor at Georgia’s Clark Atlanta University and the director of that university’s Environmental Justice Resource Center. July 18, 2007
Biloxi Seniors Going Home to The Point TodaySenior citizens are moving back home to the new Cadet Point Senior Village beginning today, and across the city thousands more affordable homes will be built in the next five years. Moving day for seniors who were selected to become residents of the 76 apartments was delayed several weeks because of a fire code concern in the stairwell. Bobby Hensley, executive director of the Biloxi Housing Authority, said the problem was corrected and the residents, all age 55 or older, are eager to occupy their new home. “It allows a lot of people who have lived on the Point all their lives to come back,” he said. July 18, 2007
Housing Starts Up 2.3%; Permits PlummetThe pace of home construction rose 2.3 percent in June but building permit activity, a sign of future construction plans, sank to its lowest rate in 10 years, signaling further weakness in the listless housing market. The Commerce Department said on Wednesday housing starts set an annual rate of 1.467 million units in June compared with a revised 1.434 million unit pace in May. Economists had forecast June housing starts to drop to a 1.45 million unit pace from the 1.474 million unit rate originally reported for May last month. July 19, 2007
Subprime Pain Could Get WorseAs Wall Street’s top brokerages scramble to reassure investors that they have limited exposure to the growing subprime mortgage crisis, analysts warned yesterday that the worst may be yet to come. When Bear Stearns Cos. disclosed Tuesday that two of its flagship hedge funds that invested in the riskiest part of the home loan sector were essentially worthless, red flags went up everywhere. July 19, 2007
HUD Marks 20 Years Of McKinney-Vento Homeless Assistance ActOn July 22, 1987, President Ronald Reagan signed into law the McKinney-Vento Homeless Assistance Act which created more than a dozen federal programs designed to offer a modern system of care for homeless individuals and families. Twenty years later, McKinney-Vento’s legacy is credited with housing and serving hundreds of thousands of persons who would otherwise be living on the nation’s streets. U.S. Housing and Urban Development Secretary Alphonso Jackson today recognized this important anniversary during a White House faith-based roundtable on homelessness. July 19, 2007
Weathering a Storm of Red TapeStanley Carpenter has waited 3 1/2 years to see his home — the one Hurricane Isabel drove a 40-foot wooden pole through — rebuilt stronger, higher and out of the reach of floodwaters. He waited through the reelection of President Bush in 2004. He waited through Hurricane Katrina in 2005, when thousands along the Gulf Coast were in even more dire straits. He even waited through last year’s Tropical Storm Ernesto, which wrecked the fixes he had made to the interior of his one-story cottage on St. George Island on the southern tip of St. Mary’s County. That one broke the limit on his insurance policy. July 19, 2007
Asbestos and Aging Pipes Remain Buried HazardsExploding steam pipes and manhole covers popping loose and flying skyward, a constant in New York for decades, had all but disappeared in recent years. But the city got a reminder of the vulnerability of its aging infrastructure yesterday when a 24-inch steam pipe that was laid in 1924 exploded in Midtown near Grand Central Terminal, leaving one person dead and more than 30 injured. Mayor Michael R. Bloomberg said cold water apparently got into the pipe, producing a change in pressure and the blast. Because the pipe was near a water main, the explosion sent water, steam and debris skyward. July 19, 2007
FEMA Continues To Address Formaldehyde ConcernsThe Federal Emergency Management Agency (FEMA) has asked the Centers for Disease Control and Prevention (CDC) for its assistance and expertise in conducting a public health assessment of indoor air quality in its temporary housing units. Although tests of air samples from travel trailers in the Gulf Coast have demonstrated that ventilating the units is effective in reducing levels of formaldehyde, the health and safety of residents is FEMA’s primary concern and FEMA believes additional research is needed to address recently raised inquiries and concerns. July 19, 2007
Crisis Center Offers Aid to HomeownersWith a surge in the number of foreclosed properties in Maryland, particularly Prince George’s County, the local government and a federally approved housing counseling agency have created a crisis center to assist residents on the brink of losing their homes. The nonprofit agency, known as SEED, or Sowing Empowerment & Economic Development, opened the crisis center last month during its annual housing fair, which in past years has focused mostly on helping renters become homeowners. This year, about 10 people, with loan documents in hand, stopped at a booth in the Sports and Learning Complex in Landover to receive counseling and information aimed at preventing banks from taking their homes. July 19, 2007
Law Changes Lending Lawsf it seems like Alaskans are targeted more than others by predatory mortgage lending, it’s not your imagination. The Last Frontier is the only state in the nation that does not regulate the mortgage lending industry, providing a gold mine for unscrupulous lenders. But a new law is about to change all that, as consumer advocates, federal regulators and state legislatures all try and deal with skyrocketing foreclosures. July 19, 2007
Affordable Housing: Reform Means Dicey PoliticsDo you live in one of the Garden State’s nearly 200 suburban and rural communities that have residential developments on their drawing boards? If so, then the odds are increasing that affordable housing will soon be coming to a neighborhood near you. That’s if a coalition that includes affordable housing advocates, urban mayors, and the Speaker of the Assembly can convince Governor Jon Corzine to support a major change in state policy that includes ending the practice of regional contribution agreements (RCA’s). The proposed reforms, which the Governor seems likely to support, may be good policy. But even in a state noted for its citizens’ liberal and moderate social views, the politics surrounding the issue of affordable housing can be dicey. July 19, 2007
Attitudes Soften, but Blacks, Whites See Bias DifferentlyFour decades after violence left Detroit with a legacy of destruction and distrust, racial attitudes and suspicions are tempering, a Detroit News poll shows. More whites say they would prefer to live in evenly mixed-race neighborhoods than in white-dominated communities, a dramatic change from 20 years ago. Fewer African-Americans believe whites want to oppress them and fewer whites feel that blacks dislike them. July 19, 2007
High-Risk Traps or Low-Credit Tools?About nine out of 10 high-risk loans in California are still being paid responsibly: Is one person’s predatory lending another’s big chance at homeownership? All this week, Robert Camerota and Paul Leonard debate the high-risk real estate market. July 19, 2007
Criminal Charges Ahead?Ohio Attorney General Marc Dann said today his office is close to getting its first criminal indictments in its crackdown on predatory lending practices. While Dann is already pursuing about 30 civil cases statewide, he said criminal charges are being pursued against the worst mortgage brokers and property appraisers that have given the Buckeye State the highest foreclosure rate in the nation. He did not provide a timeframe for the forthcoming indictments other than to say they are “pending.” July 19, 2007
FEMA Knew Of Toxic Gas In TrailersThe Federal Emergency Management Agency since early 2006 has suppressed warnings from its own field workers about health problems experienced by hurricane victims living in government-provided trailers with levels of a toxic chemical 75 times the recommended maximum for U.S. workers, congressional lawmakers said yesterday. A trail of e-mails obtained by investigators shows that the agency’s lawyers rejected a proposal for systematic testing of the levels of potentially cancer-causing formaldehyde gas in the trailers, out of concern that the agency would be legally liable for any hazards or health problems. As many as 120,000 families displaced by hurricanes Katrina and Rita lived in the suspect trailers, and hundreds have complained of ill effects. July 20, 2007
Developer and Four Others Sue Queen Anne’s, Claiming BiasSix years ago, developer John C. Stamato acquired 144 acres in Grasonville with the idea of building houses, setting aside a portion for the middle class. Instead of erecting 218 homes that only a fraction of Marylanders could afford, he later proposed breaking off dozens of those units and listing them for less than $150,000 apiece. Stamato said he spent hundreds of thousands of dollars playing by the county’s development rules to build in a designated growth area. But when the county’s commissioners, under pressure to rein in growth, voted unanimously in May to indefinitely delay access to water and sewer service, he and several supporters had had enough. July 20, 2007
Judge Stops Newark Redevelopment ProjectA New Jersey judge effectively killed an ambitious downtown redevelopment project in Newark yesterday, ruling that the city’s decision to condemn 14 acres of property on behalf of a private developer was ill-conceived and wrong. The project, the Mulberry Street Redevelopment Project, a proposed collection of 2,000 market-rate apartments and stores in the shadow of the city’s new hockey arena, would have been the largest development initiative here in decades. In her decision, Judge Marie P. Simonelli of Superior Court said the administration of Mayor Sharpe James misused the state’s rules on condemnation when it declared 62 parcels “an area in need of redevelopment.” She said the row houses, mechanics’ shops and parking lots, while somewhat tattered, were not “blighted” and suggested that the decision to condemn the property was politically motivated. July 20, 2007
When New Building Dries Up ResourcesUntil five years ago, it seemed that the breakneck pace of development in Effingham County, a Savannah suburb in southeast Georgia, knew no limits. But like other fast-growing areas across the country, Effingham had to learn that large-scale expansion often comes at a price. In the county’s case, it was the long-term integrity of the vast underground water supply that serves it as well as other major areas in the South. July 20, 2007
Housing’s Hurt Spoils His ViewFederal Reserve policymakers expect the slumping housing market to restrain U.S. economic growth this year and next, as more Americans fall behind in their mortgage payments and lose their homes to foreclosure, Chairman Ben S. Bernanke told Congress yesterday. Home sales are likely “to remain sluggish for a time” while declining home construction “will likely continue to weigh on economic growth over coming quarters,” Bernanke said in testimony to the House Financial Services Committee. “Rising delinquencies and foreclosures are creating personal, economic and social distress for many homeowners and communities — problems that likely will get worse before they get better.” July 20, 2007
Tougher Times for Housing InvestorsReal estate investors, leaping to buy Baltimore homes during the boom, helped fuel the frenzy and drive up prices in neighborhoods from Canton to Reservoir Hill. Now they’re part of the fallout.Properties belonging to “nonowner occupiers” - usually investors - accounted for nearly 30 percent of the city homes that lenders were trying to foreclose on during the first three months of the year, according to a Sun analysis of state court and assessment data. Caught by the market slowdown and in some cases blindsided by other problems, they defaulted on loans for more than 250 homes. July 30, 2007
FEMA Urging Policy RenewalsAn unusually large number of people who bought flood insurance after Hurricanes Katrina and Rita have not renewed their policies, and the Federal Emergency Management Agency is urging people to get them up to date before they lose coverage for the height of hurricane season and lose eligibility for future disaster assistance. Bill Barton, a community outreach specialist at FEMA in New Orleans, said that 100,000 new flood insurance policies were sold in Louisiana after the 2005 hurricanes, but 14,613 of those new policies had not been renewed as of the end of April. July 30, 2007
Landowners Bank Against SprawlTrella Dickerson, 70, is something of a celebrity here: She’s the first person in Georgia to sell development rights to her property — only to guarantee that it won’t be developed. Now she’s trying to persuade others to make similar deals as part of a years-long effort to preserve the last major green space in sprawling metropolitan Atlanta. Last September, Dickerson sold to a conservancy land bank the development rights to part of the 17 acres she and her ex-husband bought in 1988. July 30, 2007
In New Jersey, the ‘Backyard’ Up on the RoofIncreasingly, New Jersey developers are going above, if not beyond, to satisfy that buyer demand. They’re looking to rooftops — above a building’s parking garage or its penthouses — to create shared, or even private, garden spots, in locales as diverse as the Hudson riverfront and the East Orange inner city. A short list of rooftop projects now under construction includes the seventh-floor space with pool and “great lawn” at the 55-story Trump Plaza in Jersey City, a landscaped deck at One Hudson Park in Edgewater (where most units have balconies as well), elevated terraces at two different condo developments on the beach in Asbury Park — one a huge open garden and the other offering individual penthouse rooftop spaces — and five small condo structures in East Orange that will have overhead lawns and patios. July 30, 2007
Insurance Factors in to Road Home MathI’d like to know what the law is when it comes to getting compensated from the Road Home for Hurricane Katrina damage. My estimated damage was evaluated to be $58,000. But I did receive compensation from my insurance company on my homeowner’s and flood policies. How much money am I supposed to get from the Road Home, if any? July 30, 2007
Sales of New U.S. Homes Decline in JuneSales of new homes fell in June by the largest amount in five months as the housing industry continued to struggle with its worst downturn in 16 years. The median home price also fell. The Commerce Department reported that sales of new single-family homes dropped by 6.6 percent last month to a seasonally adjusted annual rate of 834,000 units. The decline was more than triple what had been expected and was the largest percentage drop since sales fell by 12.7 percent in January. Sales are now 22.3 percent below the level of a year ago. July 30, 2007
ROAD HOME DEADLINE TODAYWith Road Home applications surging the day before the deadline for homeowners to apply — an influx likely to add to program’s estimated $5 billion deficit — the Louisiana Recovery Authority took action Monday to reduce the gap with $1 billion, a good-faith gesture to satisfy Congress, which the state needs to fill the rest of the gap. At its monthly board meeting, the LRA also confronted problems with slowdowns in the delivery of the homeowner-assistance grants. Meanwhile, the private contractor running the Road Home, ICF International, braced for a crush of last-moment interest, both from reporters and from homeowners who had ignored or avoided the Road Home for its troubled first year of existence. July 31, 2007
As N.O. Property Assessments Surge, So Does AnxietyPhone lines lit up the second and fourth floors of City Hall on Monday as frazzled homeowners across New Orleans started to receive unwelcome letters warning them that their home values had been recalculated for tax purposes — drastically, in many cases. Precisely how the new property assessments compare with the old ones is unclear because the numbers won’t become public until Wednesday. But several assessors have released preliminary data showing steep average increases. For example, 6th District Assessor Nancy Marshall has said the value of residential property in her Uptown district will see an increase of 68 percent on average. Marshall said she thinks other districts might go up even more. July 31, 2007
Foreclosures Rise 58% in First Half of 2007The number of homes facing foreclosure surged 58% in the first six months of the year from last year, the latest sign of growing problems in the mortgage industry, a data firm said Monday. In all, 573,397 properties across the nation reported some sort of foreclosure activity in the first half of this year, including receiving notices of default, auction sale notices or being repossessed by lenders, Irvine-based RealtyTrac said. That was 32% higher than the last six months of 2006. “We could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65%,” said RealtyTrac CEO James Saccacio. California led the nation in foreclosure filings and the number of homes receiving notices. July 31, 2007
Mortgage Unit’s Loss Cut GMAC Profit by 63%GMAC Financial Services, the finance company formerly controlled by General Motors Corp., said yesterday that losses from its home lending operations caused second-quarter profit to fall 63 percent. The company reported a profit of $293 million, compared with $787 million in the corresponding period last year. Revenue fell to $4.02 billion from $5 billion in the year-ago period.GMAC blamed the drop on losses in its Residential Capital LLC home lending unit, more commonly known as ResCap. The unit lost $254 million during the second quarter versus a profit of $548 million a year earlier. July 31, 2007
Lost Wallet’s ID Cards Spawned Mortgage FraudIt was a little baffling when Jose F. Lara got a check in the mail for almost $2,800 from a bank in Arlington County in December. When the bank told him that it was the overpayment on his second mortgage, things got really baffling. He didn’t have a second mortgage. Turned out it all tracked back to that day last year when Lara’s wallet was stolen. Elizabeth Cabrera-Rivera found it and used Lara’s identification to buy … a house. A $419,000 townhouse in Springfield. With no money down. July 31, 2007
Nagin Meets FEMA DeadlineDrawing shoe-leather help from volunteers, Mayor Ray Nagin’s administration on Monday met a FEMA deadline for providing a list of where repairs to storm-damaged streets are needed, easing friction between the city and federal bureaucrats who control the flow of millions in recovery dollars. The Department of Public Works delivered a DVD that includes initial damage assessments for 13,682 roadway “segments” — typically blocks — that account for 1,465 of 1,600 miles of city streets, most in neighborhoods. Major boulevards that account for the rest of New Orleans streets were inspected by city, state and federal officials about a year ago, according to a city report. July 31, 2007
Toddler Banned from Pool: Mother Complains His Civil Rights are Violated by Condo AssociationAn Akron mother and the Fair Housing Advocates Association have filed civil rights complaints against her condo association, saying the group is prohibiting infants and toddlers from the swimming pool because of fears over unwanted pee and poop. The complaints were filed with the Ohio Civil Rights Commission this month after Suzanne Malcom was told twice this year that she wasn’t allowed to bring her 1-year-old son Lucas to the outdoor pool at the Seven Stories East Condominiums on East Market Street. July 31, 2007
Mississippi: Trailer Residents Face Tight Housing MarketFinding a new home may be difficult for families moving out of the FEMA travel trailer park at the Ocean Springs Civic Center. “We have nowhere to go, and even if you find a place, you can’t afford the rent,” Kathy Westover said. “I’m terrified, and I don’t know what to do.” Westover lives in the Federal Emergency Management Agency travel trailer park behind the civic center. On Friday, the Ocean Springs Board of Alderman moved the deadline for 54 families to relocate out of the park from Aug. 15 to Dec. 31. As rental rates rise and availability declines, many families worry that they will not be able to find a place to live by the deadline. July 31, 2007
Montana: Housing Expensive in Red LodgeWhen a young couple came into the Red Lodge Area Chamber of Commerce office looking for work last June, Executive Director Beth Hutchinson could show them half a page of job listings in the local newspaper. “But then you have to think of where you want to live,” she said. Affordable housing is becoming a casualty of the resort town’s popularity with retirees and people buying vacation homes.For restaurateur Peter Christ, housing is the No. 1 issue in Red Lodge. July 31, 2007
Illinois: Residents fighting Addams demolitionTwo longtime tenants of the nearly vacant Jane Addams Village public housing complex are fighting to stay there, filing a lawsuit that threatens to stand in the way of demolition plans for the site. Parties to the lawsuit, which was filed late Friday, met in Rockford’s federal courthouse Monday in front of members of nearby neighborhood associations, city building standards and community development department heads, building inspectors, police and fire officials, Mayor Larry Morrissey, Ald. Victory Bell and Rockford Housing Authority Director Steve Anderson. July 31, 2007
S.F.: Court Rules Landlords Don’t Have to Reject Gang Members as TenantsThe California Supreme Court ruled in San Francisco today that landlords don’t have a legal duty to refuse to rent to gang members. The court said that while gang violence is against public policy, it would be “burdensome, dubiously effective and socially questionable” to require landlords to screen for and reject gang members as tenants. Justice Kathryn Werdegar wrote that such a rule would be costly for landlords and would likely result in unfair discrimination against people who are suspected of being gang members but are not. Werdegar wrote for the court, “To recognize such a duty would tend to encourage arbitrary housing discrimination and would place landlords in the untenable situation of facing potential liability whichever choice they make about a prospective tenant.” July 31, 2007