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American Home Mortgage Facing BankruptcyShares of American Home Mortgage Investment (AHM) plunged 90% Tuesday after the company raised fears it may become insolvent, renewing concern about worsening credit quality in the mortgage market and killing a Wall Street rally. The struggling mortgage lender said its financial backers have essentially pulled the plug. The Wall Street banks that lend American Home Mortgage money for home loans — which include firms like UBS, Bear Stearns and JPMorgan Chase — will not extend the company any more money, and some have demanded back the money they have lent. August 1, 2007
Judge Nixes Claims in Fannie Mae SuitA group of shareholders who opted out of a class-action lawsuit against Fannie Mae saw many of their own claims against the mortgage giant dismissed Tuesday. The group, led by Evergreen Equity Trust and Franklin Managed Trust, sued in connection with a massive accounting scandal. The investors accused the company and its executives of violating numerous state and federal securities laws. August 1, 2007
Road Home Applicants Rush to Meet DeadlineSome homeowners who waited to the last moment to file for the overburdened Road Home aid program met with technical difficulties at times, but thousands were able to get their applications in under the wire Tuesday. Most of the applications poured in over the Internet and through 200 telephone operators at a call center in Baton Rouge. Just from midnight to 3 p.m. Tuesday, more than 2,000 homeowners had filed new applications on the Road Home Web site alone, said program spokeswoman Gentry Brann, more than the total number of applications of any type recorded in any previous day. An additional 241 had dropped off applications in person, and an unknown number had applied over the telephone or by mail. August 1, 2007
Immigrants’ Homebuying Dreams Lift Housing MarketPatricia Ortiz and her husband Sebastian cut back on dining out, nights at the movies, and even opted for a civil wedding ceremony instead of a big church affair so they could afford to buy their $389,000 three-bedroom colonial. In doing so, the Panamanian natives helped lift the nation’s slumping housing market. With rising purchasing power, the nation’s growing number of foreign-born residents are keeping the bottom from falling out. And amid slow demand from an aging and slow-growing native population, immigrants are fueling predictions of a rebound. August 1, 2007
Facts About Immigration Growth and the Housing MarketAs many as half a million U.S. housing units are newly occupied each year by immigrants. In some parts of the U.S., immigrants account for more than 90 percent of all growth in housing demand. Without the addition of immigrants, the New York metro area would have lost nearly 600,000 people from 2000 to 2006. The Los Angeles area would have lost more than 200,000, the San Francisco area 188,000 and the Boston area 101,000. August 1, 2007
Millions Dedicated to Oliver HousingA long-planned effort to revitalize Baltimore’s Oliver neighborhood got a jump-start last night with a commitment for millions of dollars from the city and private investors. Members of the faith-based nonprofit organization Baltimoreans United in Leadership Development (BUILD) said that the money will help their plans to build affordable homes on what is now vacant property blighting the neighborhood. August 1, 2007
New Interest in Bridgeport’s Neglected NeighborhoodsNot long after John M. Fabrizi was elected to a full term as mayor in 2003, he joined with business leaders in inviting the Urban Land Institute, a research organization sponsored by the real estate industry, to advise Connecticut’s poorest city on how to turn itself around. Mr. Fabrizi, who had taken over as mayor after his predecessor, Joseph P. Ganim, was convicted of bribery, was under pressure to get results for the city’s dispirited residents. August 1, 2007
Would-Be Millionaires Lose Their Big ChanceThe would-be millionaires of Briny Breezes trailer park may have lost their big chance. A developer who agreed in January to pay $510 million for the waterfront trailer park town canceled the deal Monday because of a dispute with the community, though the company promised to try to work out the differences. August 1, 2007
Kansas City Human Relations Division Settles Fair Housing ComplaintThe City of Kansas City, Mo., Human Relations Division of the City Manager’s Office negotiated a $10,000 settlement for Oswald and Maurine Pederson in a fair housing complaint brought against Curry Management Co., which manages The San Francisco Towers, 2510 Grand Blvd. where the Pedersons live, and Crown Center Redevelopment Corp., the owners of the property. August 1, 2007
Conference Encourages Employers to Aid HousingIn light of the recent and increasing concern of the national business community regarding employee hiring and retention, large companies, cities and agencies across the state and Midwest are taking part in a national trend of workforce housing and, most prominently, employer-assisted housing. Nearby cities such as Chicago, Milwaukee, Hartford, Menomonee, Appleton and Sturgeon Bay have already made significant strides with the programs, which call for making affordable housing nearer to concentrated areas of business. August 1, 2007
UK: 14 Schemes Submitted to National Affordable HousingFourteen innovative housing projects have been given the green light to bid for investment, at the climax of an ambitious drive to deliver affordable homes and boost economic growth in the North of England. The Northern Housing Challenge was launched by the Housing Corporation last year to promote new housing-led projects which will help shrink the £30 billion difference in economic performance between the North and the South while providing homes for over 10,500 people. August 1, 2007
Apartment Developer Probed Over discrimination ClaimsWhen Donna Weissinger’s marriage collapsed in 2003, she and three of her children found themselves living in their car and on friends’ couches. Her attorney says it didn’t have to be that way, and filed a civil lawsuit against a developer of apartment housing, alleging the company refused to rent a three-bedroom affordable apartment built with tax breaks because Weissinger had too many kids. The case is pending. August 1, 2007
PA: Domestic Violence Agency Suffers Financial CrisesDomestic Violence Services of Fayette County, the county’s only domestic violence shelter, is in dire financial straits, and may have to close shelter doors without funding help. Operating funds allocated by the state for this month will not be released until September, according to Jacquie Albert, executive director. “Our biweekly payroll is about $7,500, so we have enough for our payroll for this week and that’s it,” Albert said. Without donations, Albert said that there is “a very real possibility” that the shelter may have to temporarily close. August 1, 2007
Wells Fargo Accused of Discriminatory LendingTwo black homeowners have sued Wells Fargo & Co., accusing the second-largest U.S. mortgage lender of racial discrimination in how it sets rates and fees. In their complaint, Nancy and Johnny Jeffries accused Wells Fargo of marking up interest rates or adding fees for black borrowers seeking mortgages after agreeing to lend based on criteria such as credit histories and home values. The Chicago homeowners said this violated the federal Fair Housing Act and Equal Credit Opportunity Act. August 1, 2007
Report: Little Progress on Katrina ContractsThe Bush administration has shown little progress — and in some cases backtracked — on its pledge to do a better job in awarding contracts to small, Gulf Coast businesses for Hurricane Katrina work, a congressional analysis shows. The review of federal contracts from five government agencies, conducted by the House Small Business Committee, is the latest to document missteps in the award of billions of dollars of lucrative government work since the 2005 storm. August 2, 2007
Levees, Coastal Projects at RiskIn a sharp and unexpected blow to Louisiana, President Bush threatened Wednesday to veto long-awaited legislation that would enhance hurricane protection along a Gulf Coast still struggling to recover from the devastating storms of two years ago. House and Senate negotiators struck a bargain late last week on a $21 billion reauthorization of the Water Resources Development Act, with about 20 percent going to projects in Louisiana. The measure has broad support and is expected to get final passage this week before lawmakers leave for the monthlong August recess, and is expected to pass by veto-proof margins. August 2, 2007
Road Home Standards TightenedAfter being criticized for going easy on its Road Home contractor, the state has implemented its strongest performance requirements and potential fines to date, a year into ICF International’s troubled management of the homeowner hurricane aid program. The agreement, signed Tuesday and released Wednesday, calls for faster resolution of homeowners’ disputes, at least 90,000 closings and final award letters sent to at least 85 percent of all eligible applicants by the end of the year. August 2, 2007
Beazer Homes Shares Drop SharplyShares of Beazer Homes USA (BZH) fell sharply Wednesday amid worries about the ability of builders to pay their bills as subprime lending woes expand to other parts of the market and push housing prices down. The Atlanta-based company’s shares lost $2.51, or 17.9%, to $11.48, having fallen as low as $8.10 earlier in the day. The stocks of other home builders also were down, but not as much. A spokeswoman for Beazer Homes did not immediately respond to messages left at her office, on her cellphone and by e-mail. August 2, 2007
C-Bass Owners May Write Off $1 Billion StakeThe company that acquired subprime lender Fieldstone Investment Corp. of Columbia two weeks ago is now in financial trouble and could be written off as worthless by its owners. MGIC Investment Corp. and Radian Group Inc. announced late Monday that they may write off their stakes in Credit-Based Asset Servicing and Securitization LLC. The New York joint venture, known as C-BASS, invests in subprime mortgages and packages the debt for sale. MGIC and Radian had valued their combined investments in C-BASS at roughly $1 billion. August 2, 2007
Pending Home Sales Rise, Mortgage Applications DipThe beleaguered housing market received mixed news in two reports released Wednesday. Pending sales of existing homes rose by 5% in June compared with the previous month, a surprisingly positive sign, while the volume of mortgage applications slid last week to their weakest level in more than five months, as home loan demands eroded amid escalating credit concerns. The National Association of Realtors said June’s pending home sales index was the largest monthly gain in more than three years and that increases were reported across the country. However, Lawrence Yun, the trade group’s senior economist, wasn’t overly optimistic, and the pending sales index remained 8.6% below year-ago levels. August 2, 2007
Design Steps Up in Disaster’s WakeAfter Hurricane Katrina destroyed Karen Parker’s house on Division Street two summers ago, her first instinct was to leave her storm-ravaged hometown of Biloxi, Miss., behind. But she couldn’t bring herself to abandon two generations of extended family there, any more than she could see living indefinitely with her six children in their 10-foot-wide FEMA trailer. So, a few weeks after the storm, Ms. Parker decided to rebuild on her street. August 2, 2007
Foreclosures Follow Popularity of Adjustable-Rate MortgagesJennifer Babin bought her house in Morrisville two years ago with an adjustable rate, subprime mortgage loan. Like most adjustable, subprime loans, it readjusted after two years, and earlier this year, Babin’s monthly payment rose from $795 to $1,095. Facing the possibility of further increases, Babin is now fighting to keep a roof over her family. “You just trust people. You’re told one thing, and then another happens,” Babin says. “This was my first home, and I didn’t know a lot.” According to the Center for Responsible Lending, the national subprime mortgage market grew from $35 billion to $665 billion between 1998 and 2005, and increased again in 2006. August 2, 2007
Report: American Home Mortgage to closeAmerican Home Mortgage Investment Corp., which raised fears this week that it may become insolvent, said Thursday it has stopped taking mortgage applications and is cutting most of its staff of more than 7,000 effective Friday. “It is with great sadness that American Home has had to take this action which involves so many dedicated employees,” Chief Executive Michael Strauss said in a statement issued late Thursday. “Unfortunately, the market conditions in both the secondary mortgage market as well as the national real estate market have deteriorated to the point that we have no realistic alternative.” August 3, 2007
Katrina Flood Victims Lose on AppealA federal appeals court ruled Thursday that insurance companies don’t have to pay Hurricane Katrina victims for flood damage caused by the city’s levee breaches. The ruling dealt a setback to tens of thousands of home and business owners, many of whom need the money to rebuild. A three-judge panel from the 5th U.S. Circuit Court of Appeals said that insurers’ property policies “unambiguously” excluded all types of flood damage — even damage from a man-made disaster, such as the failure of the levees. Thousands of homes were submerged after the levees broke in the days after Katrina struck on Aug. 29, 2005. August 3, 2007
Unlikely Team Agrees: Put Pumps at LakeDespite two years of Katrina-fueled wrangling, often vitriolic diatribes, public finger-pointing and lawsuits, decision-makers for the Army Corps of Engineers, the New Orleans Sewerage & Water Board and Jefferson Parish have reached a consensus on what they think is the best technical solution for permanently protecting the 17th Street, London Avenue and Orleans Avenue canals from storm surges without hampering internal drainage. They agreed this week to recommend big new pump stations at the mouth of the three New Orleans outfall canals and the eventual retirement of the historic S&WB stations farther inland. August 3, 2007
Corps Outlines Plans to Erect Surge BarriersThe Army Corps of Engineers is embarking on the most important piece of its strategy for protecting New Orleans from storm surges caused by a 100-year hurricane: construction of a combination of gates and levees that will span the wedge formed by the intersection of the Gulf Intracoastal Waterway and the Mississippi River-Gulf Outlet. Closing the V-shaped area that funneled surge from Hurricane Katrina into the Industrial Canal — where it overwhelmed the floodwall protecting the Lower 9th Ward — could cost between $500 million and $1 billion, Col. Jeffrey Bedey said Thursday as he took reporters on a tour of those waterways aboard the corps’ motor launch Teche. August 3, 2007
US Mortgage Rate Edge Down SlightlyMortgage rates around the country edged down this week, with rates on 30-year home loans sinking to their lowest point in a month, good news for prospective buyers. Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.68 percent. That was down slightly from 6.69 percent last week and was the lowest since early July, when rates stood at 6.63 percent. August 3, 2007
HUD and the Texas Apartment Assoc. Announces Acessibility Training to be Held in HoustonThe U.S. Department of Housing and Urban Development and the Texas Apartment Association (TAA) announced today that they are sponsoring a housing accessibility training session on August 15, 2007, in Houston. The session is designed to educate architects, builders, and developers about federal accessibility requirements. HUD and TAA are working to effectuate one of the objectives of a voluntary Memorandum of Understanding (MOU) that was signed on April 19, 2007 to work together to promote fair housing in Texas. August 3, 2007
Maryland: Arsenic Found High in Turf ValleyCiting arsenic levels that are 60 times higher than normal, Howard County’s top health official called yesterday for mandatory comprehensive testing of land at the Turf Valley planned community in Ellicott City, where the owner has been trying for two decades to add more than 1,000 homes. Health Officer Peter L. Beilenson said he ended negotiations with Turf Valley over voluntary ground testing for the project after learning last week of tests done two years ago that found a high arsenic level on the property. August 3, 2007
Now You Own It, Soon You Don’t?During the last two years, homeowners and property-rights advocates across the country have echoed that sentiment, and state lawmakers have answered. A controversial United States Supreme Court decision in June 2005, which upheld the power of local governments to seize private property for the benefit of private businesses, inspired an uprising that led 40 states to pass laws that rein in, to varying degrees, that authority. But legislatures in the three states in the New York metropolitan area, long seen by property-rights advocates as home to some of the worst abuses of eminent domain, have done little to change the status quo. August 3, 2007
Chance Grows for Curbs on Predatory LendingLawmakers will leave Washington for their August vacation without passing legislation meant to prevent abuses in mortgage lending such as the ones that led to the housing-market woes distressing Wall Street and Main Street. However, the collapse of American Home Mortgage Investment Corp. and the worsening troubles of mortgage-investment funds run by the Bear Stearns Cos. Inc. may give the Democratic-controlled Congress the impetus to take up antipredatory-lending legislation after Labor Day. August 3, 2007
Civil Rights Lawyer Oliver Hill At Forefront Of Desegregation Fight DiesCivil rights lawyer Oliver Hill, who played a pivotal role in the fight to end racial segregation in US schools, has died at the age of 100. August 12, 2007
American Home Mortgage files for bankruptcyAmerican Home Mortgage Investment (AHM), a large home lender catering to people considered good credit risks, completed its flameout Monday when it filed for Chapter 11 bankruptcy protection. The real estate investment trust based in Melville, N.Y. is one of the largest independent U.S. home loan providers. It filed for protection from creditors in U.S. Bankruptcy Court in Delaware. August 6, 2007
Mortgage Crisis: Home Loans are Harder to GetWake-up call! If you’re ready to buy or refinance a home, the turmoil on Wall Street may be further hurting your chances of getting a loan. In a huge sell-off Friday, investors reacted to a mortgage industry crisis not seen in decades. Some lenders are shutting down, laying off thousands of employees and leaving buyers in the lurch. Interest rates and the terms of loan offers are changing daily. And borrowers with tarnished credit are facing deal-killing loan terms — if they can find a loan at all. Stock investors’ wariness about the housing market spilled over Friday, driving a 281-point loss in the Dow Jones industrial average. August 6, 2007
Housing Crackdown Hits Indian ImmigrantsMr. Kumar’s were among more than 300 notices of violation that the authorities handed out from January through May to homeowners in the 10 communities that make up Woodbridge Township, part of a stepped-up inspection effort the mayor announced last year. Additional inspectors were hired and given computers for quicker access to housing records. A hot line was set up for anonymous complaints. (Officials said they did not keep records of how many citations they gave last year.)But in a twist to the familiar tales of suburban authorities breaking up illegally subdivided homes crowded with Hispanic day laborers, the mayor’s crackdown here has hit another group of immigrants: middle-class Indians who rent rooms or parts of rooms to Indian students, technology workers and others seeking a first foothold in this country. August 6, 2007
Something For Nothing Home DealsThere’s a home-buying deal out there that’s more than too good to be true. It’s too good to talk about in public. At least the people running the deal don’t want to talk about it, certainly not for publication in the newspaper. Here’s the pitch: There is an invitation-only group of homeowners who have signed up as partners with an organization called Metro Dream Homes, which has offices in the District. Members buy a house, sometimes for more than the asking price and without a down payment. A condition of the sale is that the seller agree to give back 10 to 15 percent of the sales price to the buyer, who in turn pays it into the coffers of Metro Dream Homes. August 6, 2007
Going Green Without Starting From ScratchConsumer interest in green construction has continued to grow, but few people can afford to build an environmentally friendly house from the ground up. They don’t have to, says architect Kelly Lerner, co-author of “Natural Remodeling for the Not-So-Green House.” To find out more about this design philosophy, The Post’s Mary Ellen Slayter recently spoke with Lerner. This is an edited transcript of the conversation. August 6, 2007
Real Estate Glossary: ‘Kick Out’A clause in a real estate sales contract that gives a seller the right to terminate a contract with a buyer without penalty if a better offer comes along. To keep the contract alive, the first buyer must remove some or all of the contingencies within a certain amount of time — 72 hours is common. August 6, 2007
A Boost for Credit ScoresA major credit card company is ending a long-standing practice that critics have said raised many of its customers’ borrowing costs when they applied for mortgages and home-equity loans. Capital One Financial, based in McLean, said it will start reporting all cardholders’ credit limits to the three national credit bureaus — a step that could boost the FICO credit scores of some of its 50 million card customers within a few months. August 6, 2007
A Community Wrestles with the Issues of Public Housing and CrimeIn the continuing saga of crime, abandonment, blight and vandalism in city neighborhoods, today’s chapter features Sheraden, where anger and frustration has reached fever-pitch in recent weeks.The usual handful of community activists has swollen to dozens, catalyzed by the Pittsburgh Housing Authority’s interest in buying 10 homes, scattered through the neighborhood, for low-income clients. At a large and uproarious meeting with authority officials recently, more than 75 people turned out to protest. August 6, 2007
Mortgage Maze May Increase ForeclosuresIn 2003, Dianne Brimmage refinanced the mortgage on her home in Alton, Ill., to consolidate her car and medical bills. Now, struggling with a much higher interest rate and in foreclosure, she wants to modify the terms of the loan. Lenders have often agreed to such steps in the past because it was in everyone’s interest to avoid foreclosure costs and possibly greater losses. But that was back when local banks held the loans and the bankers knew the homeowners, as well as the value of the properties. August 7, 2007
No Money Down Disappearing as Mortgage OptionHome buyers again need their own money to close a deal. Lenders faced with growing piles of bad loans, even to borrowers once considered good credit risks, have clamped down on the no-money-down mortgage. The abrupt shift threatens to dash the hopes of millions of potential buyers, especially those shopping for their first homes. Four out of 10 first-time buyers used no-down-payment mortgages in 2005 and 2006, according to surveys by the National Association of Realtors. But some lenders are now scrapping such loans completely. Others are pickier about who gets them. All figure that the more cash borrowers put down, the less likely they are to default. August 7, 2007
Old Actors’ New Line: Reverse MortgagesThere seems to be a big reverse-mortgage push on. The cable stations I watch are running a lot of reverse-mortgage advertising, with actors James Garner and Robert Wagner doing their best to try to convince understandably wary senior citizens that it isn’t just another scam. Will you be more willing to look into a reverse mortgage if Garner (The Rockford Files) or Wagner (Hart to Hart) suggests it than you would if it were being pitched by Billy Mays (OrangeGlow!) or, shudder, Ty Pennington (Mr. Extreme Home Makeover himself)? August 7, 2007
Mortgage Mess? Look to Fine PrintDon’t ask, don’t tell. That was the unspoken motto of the mortgage mess that has now escalated out of control. Home buyers didn’t ask questions because they wanted the house or the home-equity loan. And mortgage brokers didn’t tell the applicants about the consequences of the papers they were signing because each loan paid them a fat fee. August 7, 2007
New Orleans Has More Homeless People Than Ever BeforeThe homeless in Duncan Plaza represent just a sliver of the growing number of homeless in Orleans and Jefferson parishes, now estimated at about 12,000 people — double the estimate homeless advocates made before the flood, despite the drastic loss in city population as a whole. At the same time, agencies that used to provide crucial services to the homeless have closed. Local advocates have sought money from Congress for permanent housing vouchers and other services, but still await action on such measures. August 7, 2007
Beneath Devastated New Orleans, Water System CrumblesDeep underground, an unseen crisis is threatening New Orleans’ already troubled recovery. The city’s 3,200-mile system of water and sewer lines — old, leaky and in need of improvements long before Hurricane Katrina — was damaged by the torrent of pipe-corroding salt water. The city Sewerage & Water Board says at least 50 million gallons of water a day are now being lost to leaks, or 2 1/2 times pre-Katrina levels. S&WB officials also believe raw sewage is leaking out in places, though the extent of the problem is unclear. August 7, 2007
New Orleans: City Hall Lined with People Appealling AssessmentsProperty owners have until Aug. 15 to contest their assessments in person at City Hall. Assessors must turn in appeal forms by Aug. 20. Appeals are then heard by the New Orleans City Council, serving as the Board of Review. The council’s decision may be appealed to the State Tax Commission and then the court system. On average, according to preliminary reports, the value of Orleans Parish property for taxing purposes has risen about 55 percent. August 7, 2007
Bonfire of The HomebuildersElizabeth and Armando Motto are living a real estate nightmare with a new breed of monster: the big homebuilder as lender. In November, 2005, the couple, who have four children, agreed to pay $540,000 for a newly built three-bedroom house in suburban Clarksburg, Md., near Washington, D.C. Rather than send them to a bank, the builder, Beazer Homes USA Inc., offered to provide a mortgage itself in an arrangement of the sort that helped fuel the long housing boom across the country. August 7, 2007
Mortgage Mess? Look to Fine PrintDon’t ask, don’t tell. That was the unspoken motto of the mortgage mess that has now escalated out of control. Home buyers didn’t ask questions because they wanted the house or the home-equity loan. And mortgage brokers didn’t tell the applicants about the consequences of the papers they were signing because each loan paid them a fat fee. August 7, 2007
Nation’s New Residents Prop Home SalesPatricia Ortiz and her husband, Sebastian, cut back on dining out, nights at the movies, and even opted for a civil wedding ceremony instead of a big church affair so they could afford to buy their $389,000 three-bedroom Colonial in Billerica, Mass. In doing so, the Panamanian natives helped lift the nation’s slumping housing market. With rising purchasing power, the nation’s growing number of foreign-born residents are keeping the bottom from falling out. And amid slow demand from an aging and slow-growing native population, immigrants are fueling predictions of a rebound. August 7, 2007
VA: Zoning Ordinance Overhaul UnderwayThe Loudoun Board of Supervisors last week began considering scores of changes to the county’s zoning ordinance, a set of proposals designed to improve and clarify the 900-page document that dictates what kind of development is allowed where in the county. The recommendations were developed over three years in an effort led by the Zoning Ordinance Review Committee, a panel of residents that included building industry specialists. August 7, 2007
Shelters Take Many Vets of Iraq, Afghan WarsNo one keeps track of how many of the 750,000 troops who have been deployed to Iraq or Afghanistan since 2001 are homeless. Peter Dougherty, director of homeless programs for the federal Department of Veterans Affairs, said 300 veterans of these conflicts have asked the agency for help finding shelter in the last 30 months. Beversdorf’s agency has helped 1,200 homeless veterans of the current wars. August 7, 2007
Don’t Get Burned by Shoddy Home InspectionYou’d have to be a fool to buy a house without having it inspected first. The challenge is to find a competent home inspector who can give you an accurate picture of the property, so you know whether to go forward with the purchase. Pick the wrong person and you could be in for years of headaches and heartache. Anyone can make a mistake, but when a home inspector misses critical defects, it can cost you a bundle. I’ve seen some of the horror stories, and trust me; you don’t want this to happen to you. August 7, 2007
Drywall Maker in Pain as Housing SuffersPlenty of companies — the mortgage lender Countrywide Financial, the hardware giant Home Depot and the insulation maker Owens Corning among them — are absorbing the ill effects of the yearlong slump in housing construction and sales. But few have felt it as forcefully or as suddenly as the USG Corporation, the nation’s largest maker of drywall, the paper-wrapped plaster boards used to build walls in homes and offices. August 7, 2007
Housing Market Pounding FairfaxFairfax County officials are predicting that the budget shortfall for the coming year could hit $120 million because the slumping real estate market has led to the lowest annual revenue rate increase in 15 years. One casualty could be the school system, the nation’s 13th largest. Members of the Board of Supervisors, many running for reelection this fall, said yesterday that the county’s share of the school budget probably will not rise next year. The school system, which was given a 4 percent increase this year, has asked for 3 percent more next year. August 7, 2007
FEMA To Contact Up To 2.2 Million Applicants Affected By Court Order Directing Release Of Personal InformationThe Federal Emergency Management Agency (FEMA) is launching an effort to contact up to 2.2 million applicants for federal disaster assistance to inform them that a federal appellate court ruling requires FEMA to release certain personally identifiable information. This information would normally be protected under the Privacy Act and the exemption for personal privacy under the Freedom of Information Act (FOIA). August 7, 2007
Federal Home Loan Bank of Atlanta Awards $4.2 Million for Affordable Housing in FloridaFederal Home Loan Bank of Atlanta (FHLBank Atlanta) will award $4.2 million in Affordable Housing Program (AHP) grants and subsidies to help fund 355 single-family and multifamily housing units affordable to lower-income residents in communities throughout Florida. Ten local developers, in partnership with FHLBank Atlanta’s member institutions, will use individual grants — ranging from $108,000 to $500,000 — as well as low-cost loans to develop affordable housing in Arcadia, Avon Park, Dania Beach, Fort Myers, Fort Walton Beach, Miami, Naples, Pensacola, Sarasota, and St. Johns County. August 7, 2007
Most Affordable U.S. Real Estate MarketsIf you’re not sweating your monthly mortgage payment and don’t obsessively check refinancing rates, chances are you live in one of America’s most affordable areas. Homeowners in Indianapolis know what that’s like. Its residents don’t have to scrimp and save to afford a home at the median price. There, the bulk of the housing stock is well within reach of the average household. Savings depleted? According to our calculations, it would take just two years of gross salary to become a homeowner there. August 7, 2007
NJ: Town Faces 2nd Housing ChallengeThe borough has just bowed to a court order that let a developer build a town house complex on Federal Hill. Now it faces a second developer’s nearly identical legal challenge. AvalonBay Communities has filed a motion in state Superior Court to join the “builder’s remedy” lawsuit that paved the way for developer D. R. Horton’s town house plan. The borough has failed to file a plan acceptable to the state on how it will meet its obligation to encourage more housing for low- and moderate-income people. That allowed the Texas-based Horton to argue that its 360-unit complex would include such housing and thus help the borough meet its court-ordered obligation. August 7, 2007
Town Faces 2nd Housing ChallengeThe borough has just bowed to a court order that let a developer build a town house complex on Federal Hill. Now it faces a second developer’s nearly identical legal challenge. AvalonBay Communities has filed a motion in state Superior Court to join the “builder’s remedy” lawsuit that paved the way for developer D. R. Horton’s town house plan. The borough has failed to file a plan acceptable to the state on how it will meet its obligation to encourage more housing for low- and moderate-income people. That allowed the Texas-based Horton to argue that its 360-unit complex would include such housing and thus help the borough meet its court-ordered obligation. August 7, 2007
Home Loan Demand Surges as Interest Rates DropMortgage applications rose for the first time in three weeks as interest rates fell sharply and demand surged for home purchase and refinance loans, an industry group said Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Aug. 3 rose 8.1% to 656.5, highest level since early June. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 1.2% to 626.0. August 8, 2007
Economy: Credit Risks, Housing Market Create UncertaintyMarkets have the shakes. The housing sector is searching for a bottom. Consumers look fatigued. Oil prices are volatile. Is an economic soft landing supposed to feel this rough? The Federal Reserve meets today to discuss interest rate policy, bolstered by data pointing to the slower, sustainable growth and gradually moderating inflation it has predicted. But Fed Chairman Ben Bernanke and his colleagues also face turmoil in stock and bond markets, despite Monday’s stock rally, as traders worry that an economic expansion built largely on easy credit is too brittle to hold together. August 8, 2007
Mortgage Fears Hit High-End Home BuyersTurmoil in the U.S. home-mortgage market is starting to pinch even buyers of high-end homes with good credit records, according to a report in Tuesday’s Wall Street Journal. The reason is a surge rates on so-called “jumbo” loans — the latest sign of rising anxiety among lenders and investors. The move up is particularly notable because rates on 10-year Treasury bonds have been falling, the Journal said, and normally mortgage rates move in tandem with Treasurys. August 8, 2007
The Days and Nights of Maurice CherryMr. Cherry had no plans to gamble. He is what is known as a rider, one of dozens of New Yorkers — often homeless or nearly homeless — who travel back and forth between Chinatown and Atlantic City or Connecticut each day, and sometimes twice a day. They sleep through the two-and-a-half-hour rides and make a quick buck off the casinos without handling so much as a single chip. August 8, 2007
Storm Victims Far From HomeA new post-storm migration analysis by the Louisiana Recovery Authority reaffirms some indelible images from August and September 2005 — buses bound for Houston, airplanes bound for anywhere — with its conclusion that New Orleans residents are the most likely of all storm victims to have settled the farthest from home or out of state. The migration report, which tracks population shifts through July 1, 2006, represents the most detailed look to date at the population shifts within Louisiana, numbers that flesh out anecdotal tales of growth and loss around the state since Hurricanes Katrina and Rita. August 8, 2007
New Orleans: Water TortureNew Orleans needs water to rebuild, but an antiquated, dying system and a lack of money to fix it threaten the recovery. Turning the spigot outside her empty house in early 2006, Tanya Harris expected another disappointment. Safe drinking water had been restored months earlier to every other neighborhood in New Orleans. But because of the catastrophic damage in the Lower 9th Ward, faucets there still ran dry. So when Harris felt the gush as she cranked the small handle attached to the water meter, she let out a scream. Then she danced around her muddy yard. August 8, 2007
Easing Fannie Rules Might Not Help Market, Critics CautionEasing the investment constraints faced by Fannie Mae and Freddie Mac might not be enough to rescue homeowners and investors caught up in the mortgage market turbulence. Shares of the government-sponsored home-loan financiers have surged in recent days on speculation that regulators will raise the amount of mortgage securities Fannie and Freddie can hold as investments. Mainstream Wall Street analysts believe such a move would ease the country’s housing woes by injecting more cash into the market. August 8, 2007
Loan Types Dwindle as Mortgage Mess WidensThe dream of owning a home is fading away for many Americans with less than stellar credit. On Tuesday HomeBanc Corp. said it will not issue any more loans, and Impac Mortgage Holdings Inc. shut down a type of loan called “alt-A” for people with limited documentation or slight credit issues. August 8, 2007
HUD Takes Over Miami-Dade Housing Agency, Appoints Recovery AdministratorThe U.S. Department of Housing and Urban Development announced today that it will take possession of the Miami-Dade Housing Agency (MDHA) in 10 business days, saying the agency had demonstrated a pattern of financial irresponsibility and mismanagement of its Section 8 rental housing voucher and public housing programs. August 8, 2007
Clinton: Penalize Predatory LendersPresidential hopeful Hillary Rodham Clinton is calling for penalties on unscrupulous mortgage brokers who engage in predatory lending and a $1 billion federal fund to help homeowners avoid foreclosure.She also wants an increase in affordable housing options. August 8, 2007
Home Buyers May Go to ClassIn a crackdown aimed at unscrupulous mortgage brokers who help Chicagoans take out loans they can’t afford to repay, thousands of first-time home buyers in Cook County would be required to receive financial counseling before completing the purchase of homes under legislation sent to Gov. Rod Blagojevich on Tuesday. The legislation comes at a tumultuous time in the real estate market, when many homeowners who made their purchases with aggressive loans went into foreclosure after their interest rates rose. August 8, 2007
L.A. Moves Toward More N.Y-Style DowntownThe Los Angeles City Council on Tuesday approved sweeping changes in zoning rules that allow larger and more dense developments downtown in the city’s biggest effort yet to embrace urban-style planning principles. The zoning changes are similar to those in more urbanized city centers like those of New York and Chicago. But critics have pointed out that L.A. doesn’t have the vast mass transit system that each of those cities has, saying the tighter zoning could result in more traffic congestion. August 8, 2007
Bill Aims to Spur Housing for the Poor in New YorkNew York City officials and state legislators have reached an agreement to overhaul a popular tax break for apartment building developers. The aim of the revision is to encourage the construction of tens of thousands of apartments for New Yorkers of limited means. The deal now goes to Gov. Eliot Spitzer. If he agrees to it, it will significantly expand the number of neighborhoods where developers are required to include apartments for low- and moderate-income tenants in new buildings in order to receive tax breaks. August 8, 2007
New ‘Affordable’ Housing Program Targets Local Government WorkersFor the first time, a county-sponsored pilot program would give local government workers priority access to low-interest loans to buy homes of their own in Fauquier. Two months ago, the county learned that the Virginia Housing Department Authority would make available $1 million in loans to qualified candidates. “This is a first step,” Fauquier County Board of Supervisors Vice Chairman Ray Graham (Cedar Run District) said of the program. “We need affordable housing on many levels. This is a chance for our folks, our county workers, teachers, to stay home.” August 8, 2007
30-year Mortgage Rates at Lowest Level Since Early JuneRates on 30-year mortgages sank this week to their lowest point in two months, a dose of good news for people thinking about buying a home. Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.59%. That was down from 6.68% last week and was the lowest since early June, when rates stood at 6.53%. The moderation is a piece of welcome news for prospective home buyers, some of whom also have been faced with a situation of harder-to-get credit. In mid-June, rates on 30-year mortgages had climbed to 6.74%, an 11-month high. August 10, 2007
Housing Slump Likely to WorsenU.S. home sales will tumble to a five-year low this year as the widening credit crunch reduces the number of buyers who can get mortgages, the National Association of Realtors predicted yesterday in a report. The group lowered its outlook for the eighth time this year and said sales of previously owned homes probably will fall 6.8 percent to 6.04 million in 2007, the lowest since 2002. New-home sales, which account for about 15 percent of the housing market, probably will fall 19 percent to 852,000, a 10-year low, the report said. August 10, 2007
Mortgage Losses Echo in Europe and on Wall StreetTurmoil in the home loan market ricocheted from the United States to Europe and back again yesterday as stocks on Wall Street suffered their biggest one-day decline since February, reflecting growing concerns about tightening credit worldwide. Big losses on packages of American home loan securities sold to investors turned up unexpectedly in French and Dutch banks yesterday, adding to worries at hedge funds and financial institutions around the globe. With trillions of dollars of securities outstanding, those announcements raised expectations that more problems may soon emerge in other unlikely places as well. August 10, 2007
AIG Warns Mortgage Defaults SpreadingAmerican International Group, one of the biggest U.S. mortgage lenders, warned on Thursday that mortgage defaults are spreading. While saying that most of its mortgage insurance and residential loans were safe, AIG made a presentation to analysts and investors that showed delinquencies are becoming more common among borrowers in the category just above subprime. August 10, 2007
Lawsuits Challenge Insurance DeadlineA New Orleans nonprofit group has filed lawsuits urging Gov. Kathleen Blanco and Insurance Commissioner Jim Donelon to extend the deadline for resolving hurricane insurance claims beyond Aug. 29. Katrina Justice filed the suits last week in Baton Rouge and New Orleans because it says that with the recovery going slowly, contractors in short supply and many people still waiting on Road Home money, most homeowners are not far enough along in rebuilding to know if their insurance checks were adequate. August 10, 2007
They’ve gutted their houses and may even live in them, but some N.O. homeowners still get notices of demolition…The pink notice that appeared in April on Robert Lucien’s flooded house in Gentilly warning of an impending government demolition prompted the lifelong New Orleans resident to take two swift steps: First, Lucien tore down the sticker. Then, he made a bee-line for City Hall. In appealing the condemnation of his home as an “imminent health threat,” he offered a letter showing that a nonprofit group planned to clean out the ungutted property, and a city-issued permit he had secured to rebuild. He walked away with a signed receipt assuring him the city would take the house off its list of tear-downs. So it came as a shock when Lucien, who lives in a FEMA trailer park in St. Roch, dropped by his one-story Wilton Drive house on July 12 to find the electricity cut off, the door lock broken and colorful Xs painted on the outer walls. August 10, 2007
Bridges Crumbling, Funds DwindlingThe catastrophic bridge collapse in Minneapolis has focused attention on America’s huge backlog of crumbling structures waiting their turn for repair. But if there isn’t enough money now to fix the country’s aging road system, just wait until next year. Sometime after October 2008, the main money source for interstate repairs, the federal Highway Trust Fund, is expected to start running a deficit. When that happens, some green-lighted reconstruction projects could have trouble getting the U.S. government to pay up, forcing states to put off essential road repairs. August 10, 2007
Only 24 Homeless Live Downtown: City CensusThis may come as a shock to commuters who see panhandlers on every Loop corner, but a city census of people living on the street in the downtown area has produced a surprisingly low number: 24. The downtown count was released on the same day Mayor Daley claimed homelessness across the city was down 12 percent — from 6,715 in January 2005 to 5,922 at the same time this year — marking progress in his 10-year Plan to End Homelessness. August 10, 2007
Bush Against Tax-paid Foreclosure BailoutPresident George W. Bush said Thursday concern should be shown those who’ve lost their homes but it’s not the federal government’s job to bail them out. “Obviously, anybody who loses their home is somebody with whom we must show an enormous empathy,” Bush said. Asked whether he would champion a government bailout, Bush responded: “If you mean direct grants to homeowners, the answer would be `No, I don’t support that.”’ New home foreclosures have climbed to record highs. Homeowners with poor credit have been hardest hit as higher interest rates and weak home prices have made it impossible or difficult for them to keep up with their home loans. August 10, 2007
This Is Your Subprime Brain on DrugsCan we blame Wednesday’s stock market plunge on human neuroanatomy? Specifically, are we wired to be suckers for subprime loans? Just such a hypothesis is suggested by Jonah Lehrer at the Frontal Cortex blog. Lehrer believes that neuroeconomics research demonstrating the physical roots of short term instant gratification helps explain why would-be homeowners are lured into mortgages that promise a couple of years of low payments before socking them with fat hikes in monthly payments that they can’t afford. August 10, 2007
Housing NeedsA recent report from the federal Department of Housing and Urban Development shows that increasing numbers of the nation’s poor are spending more of their income on rent while also waiting longer for federal subsidies. The report reflects the worsening crisis in the supply of affordable housing, a shortage that is certainly being felt in Baltimore. August 10, 2007
HUD Starts Looking at Home ForeclosuresThe rising number of home foreclosures in the Kansas City area and around the country has been a matter of much publicity for a long time, but Big Brother really hasn’t done very much to address the problem. It has worried openly about what the slump in home building and the collapse of the sub-prime lending market has done to the economy. But it hasn’t done much to address the plight of the consumer in all of this. At least until now. The Department of Housing and Urban Development has decided to create a Fair Lending Division to review lending practices. Part of its job will be to investigate complaints against lenders who might have violated the Fair Housing Act by refusing mortgage loans, refusing to provide the same information regarding loans or imposing different terms or conditions for granting a loan. August 10, 2007
Local Agency Helps Citizens Become More Self-SufficientThe Northwest Ohio Development Agency (NODA) has helped hundreds of people become self-sufficient by providing home purchase and repair loans, emergency home repair grants, individual development accounts and housing and credit counseling. The NODA fulfills its mission by providing loans, grants, investment capital and supportive services in a holistic manner to people and organizations. Its vision is to build diverse, stable and vibrant communities where social and economic opportunities empower people to achieve self-sufficiency. August 10, 2007
Haefele at Large - Time to Bring Public Housing into the Tent? August 10, 2007
Foreclosures: Twice as Many as Thought in Outstate MinnesotaThe wave of foreclosures swamping greater Minnesota may be twice as large as previously reported by national studies, housing officials heard at a recent “Greater Minnesota Foreclosure Crisis Summit” in St. Cloud. More than 60 community leaders from outstate Minnesota gathered in Saint Cloud to hear the results of a new study documenting that foreclosures in Minnesota are occurring at twice the rate previously being reported to Congress and other policymakers. The summit was convened by Greater Minnesota Housing Fund, a statewide non-profit affordable housing organization. August 10, 2007
Civil Rights Lawyer’s Life CelebratedThis wasn’t a funeral service for tears. The 100-year-old civil rights champion, Oliver White Hill Sr., was bidden farewell with laughter and applause, singing and a jazz band, by more than 600 people Sunday afternoon at the Greater Richmond Convention Center. On Saturday, Hill’s body was seen by more than 1,200 people at the governor’s mansion, a tribute that Kaine said Hill as a young man would never have believed possible. That went, too, for the Presidential Medal of Freedom — the nation’s highest civilian award — that Hill received in 1999 from President Bill Clinton. August 13, 2007
Loving Farewell, Call to ActionThe life of Oliver W. Hill Sr., who fought a recalcitrant commonwealth to bring equality to the downtrodden in Virginia and beyond, was celebrated yesterday by a half-dozen governors and an audience instructed to follow in his giant footsteps. “His life is a challenge. Are we up to it?” asked Gov. Timothy M. Kaine, who delivered the eulogy for the civilrights legend. August 13, 2007
From Housing Haven to Foreclosure LeaderOnce considered a safe alternative to the overheated Bay Area real estate market, Stockton and its streets are now filled with “For Sale” signs and evidence of foreclosures. While hundreds of thousands of people nationwide are being affected by troubles in the lending market, Stockton has the highest foreclosure rate of any city in the country, according to RealtyTrac, a real estate data firm. August 13, 2007
Residents return to New OrleansThe New Orleans region has recovered a significant portion of its pre-Katrina population, helped along by an increase in Hispanic families, but basic services such as schools, hospitals and public transportation still are slow to rebound, according to a report released today. The New Orleans Index, a look at several indicators that show how the city and region are rebounding from the 2005 disaster, shows the city has regained 66% of its pre-Katrina population as of June 2007. August 13, 2007
Scattered HANO Units in DisrepairWhile the fate of New Orleans’ public housing complexes has triggered plenty of controversy and debate in the rebuilding city, less attention is devoted to the hundreds of smaller devastated public residences known as “scattered sites,” from doubles to 16-unit complexes, that remain uninhabited and unchecked nearly two years after Hurricane Katrina. The units, called scattered sites because they are located across New Orleans, numbered 773 pre-Katrina. Today, 532 mostly flood-damaged units mar the city’s landscape. In some dilapidated units, the tousled, muck-covered possessions of former tenants still rot in rooms. Litter and five-foot weeds complete scenes of neglect. August 13, 2007
Road Home Turns Into Absentee LandlordWith the ring of a nearby pile-driver clanging on the London Avenue Canal floodwall nearby, Hilton Prosper takes a break from rebuilding his mother’s house and glares at the weed-choked property next door, with its shattered yard lamp and tattered strands of blue roof tarp dangling from the sagging eaves “I was the last one to cut that grass, two months ago. Hey, if it’s going to make my house look better, you know?” Prosper said. “But I can’t control what other people do.” Trouble is, the derelict owners aren’t people, but rather a government-created agency: Road Home Corp., the depository for all properties of Road Home grant recipients who opt to sell to the state. August 13, 2007
Fed’s Bernanke Faces His First Big Financial TestTurmoil in financial markets amid deepening concern about a credit squeeze is leading investors increasingly to expect the Federal Reserve to cut interest rates. But many economists question if the central bank will — and should — act. Some economists, such as Maria Fiorini Ramirez, who runs her own economic consulting firm in New York, say the Fed should cut rates to help restore confidence in a financial system quivering amid the subprime mortgage mess. “In times of crisis, you need someone to stand up and say, … ‘We’ll do what is needed,’ ” she says. August 13, 2007
Credit-rating Agencies Feel HeatWhen the Internet bubble burst, regulators went after analysts who had urged investors to buy stocks that were dogs. After Enron and WorldCom went bankrupt, regulators zeroed in on auditors who had ignored the accounting tricks used by their clients to fool investors. Now that some of the world’s biggest banks are admitting that assets backed by subprime mortgages are worth a fraction of what they claimed, regulators are training their sights on credit-rating agencies that gave a “triple-A” grade to risky financial products. August 13, 2007
Loan Crisis Locks Out Would-be BuyersLaurel Tokar made one of the biggest financial steps in her life a few weeks ago when she signed for a mortgage on her first home, a white Colonial in North Baltimore’s Wilson Park. But the next day, her lender, American Home Mortgage Investment Corp., disclosed that it was bailing out on as much as $800 million in loans promised to homebuyers across the country. Tokar’s loan was one that didn’t get funded as promised, and she faced losing her “perfect” place. August 13, 2007
In a Credit Crisis, Large Mortgages Grow CostlyWhen an investment banker set out to buy a $1.5 million home on Long Island last month, his mortgage broker quoted an interest rate of 8 percent. Three days later, when the buyer said he would take the loan, the mortgage banker had bad news: the new rate was 13 percent. The investment banker’s problem was that he was taking out a so-called jumbo mortgage — a loan greater than the $417,000 mortgage that can be sold to the federally chartered enterprises, Freddie Mac and Fannie Mae. The market for large mortgages has suddenly dried up. August 13, 2007
Market Forces Change: With houses sitting, some sellers turn to rent-to-own agreements.As houses sit, and sit, and sit on the market, some fed-up sellers are turning to rent-to-own, a tactic that all but disappeared from the market when home loans were easier to get. Also called lease-to-own, the arrangement appeals to would-be buyers who are stuck because of the same market dynamics: They want to buy, but their down payment is locked up in their own house that won’t sell. Rent-to-own is fraught with pitfalls, say lawyers and real estate brokers. It’s harder than it looks to construct a fair contract, and sellers don’t always get what they want: an easy, automatic sale. August 13, 2007
Bad News for Jumbo Mortgage LoansRates on jumbo and Alt-A mortgages have zoomed upward since the last week of July, even as rates on conforming, fixed-rate mortgages slipped downward. The development is bad news for people who want to borrow more than $417,000 to buy a house or refinance a loan, or who can’t or don’t want to document their income. Rising jumbo rates make it more difficult to sell a house costing half a million dollars or more. August 13, 2007
Subprime Loans’ Big Chill: Freeze Hits Buyers with Good Credit, Wall St.Real estate broker Francis Adams has a condo sale set to close tomorrow , but fears the lender providing the buyer’s second mortgage might go out of business by then. “I’ve been in real estate for 12 or 14 years and I’ve never worried before about a bank not (completing) a transaction,” Adams said. “It’s scary.” Experts say the subprime-mortgage meltdown is quickly spreading across the banking industry, drying up some types of loans, even for people with good credit. “The era of cheap and available credit for everyone has ended,” said economist John Bitner of Boston-based Eastern Bank. August 13, 2007
Listings Bypass RealtorsIn the past, Ken Kinnard would have to rely on homebuyers cruising the streets of Westminster to notice the “For Sale By Owner” sign on the lawn of his two-story home. But today, he has a wider set of options. Kinnard, and many others like him, are using a form of marketing once only accessible to real estate brokers - the Multiple Listing Service. Kinnard’s home is included in Metrolist, the Multiple Listing Service serving the greater Denver area. August 13, 2007
New Mortgage Disclosure Forms ProposedFederal bank regulators on Tuesday published a new set of forms designed to give borrowers a better understanding of mortgages that can adjust to dramatically higher monthly payments. With mortgage defaults rising among U.S. borrowers, consumer advocates say many lenders encouraged consumers to focus on the initial low-rate “teaser” period without fully informing them that their loan payments could jump up in the future. The disclosure forms published by the Federal Reserve and the other four federal agencies that regulate banks, thrifts and credit unions are intended to give consumers clear information about the risks of adjustable-rate home loans. August 16, 2007
Countrywide Uses $11.5B Credit Line to Pay for LoansCountrywide Financial (CFC), the nation’s largest mortgage lender, said Thursday it had to draw on an $11.5 billion credit line to finance its lending operations amid a crisis in liquidity. The credit market for mortgages has all but disappeared in recent weeks as investors have worried about the value of loans and rising delinquencies and defaults. Mortgage lenders rely on the credit markets to borrow money to make more loans. The problems started as subprime mortgages — loans given to customers with poor credit history — started going delinquent and defaulting at faster rates. August 16, 2007
Maryland Halts Firm’s No-Pay Mortgage OffersThe Maryland attorney general took legal action yesterday against a Laurel company that offered homeowners mortgage-free living through a complex investment program. POS Dream Home, which also operated as Metropolitan Grapevine, along with its officers, was ordered to stop soliciting new business and to halt operation of its investment program pending a hearing. “In the meantime, this company will no longer be able to unlawfully solicit investors and risk the potential loss of their money,” Attorney General Douglas F. Gansler said in a statement. August 16, 2007
City Council Fails to Extend Assessment Challenge DeadlinesAn eleventh-hour effort Wednesday by the New Orleans City Council to extend deadlines for challenging assessments failed Wednesday, leaving property owners with just a few more days to file paperwork disputing land and building values. As hundreds of property owners waited in line in intense heat to appeal assessments, the council passed a resolution asking the Louisiana Tax Commission to suspend the deadlines for public inspection of the tax rolls and filing of tax rolls “for as long as legally permissible.” The tax commission, however, doesn’t have that authority. August 16, 2007
HUD to Assume Rental Assistance for Families Affected by Hurricanes Katrinia and RitaU.S. Department of Housing and Urban Development announced today that the transition of the Disaster Housing Assistance Program (DHAP) rental assistance program from FEMA to HUD will be as seamless as possible for the approximately 30,000 FEMA-assisted families displaced by Hurricanes Katrina and Rita currently living in private rental units. HUD also announced it has established a toll free call center number, 1-866-373-9509, to answer questions about the transition. The call center will field calls from 9 a.m. to 7 p.m. EST weekdays, and from 9 a.m. until 1 p.m. on the weekends. August 16, 2007
Detroit Foreclosure Rate 2nd in Nation in 1st Half of YearDetroit ranked second in a study surveying foreclosure rates in the nation’s 100 largest metropolitan areas in the first six months of 2007, according to a real estate sales and information Web site. RealtyTrac’s, www.realtytrac.com, study showed Detroit had one foreclosure filing for every 29 households in the metro area. The area comprised of Detroit, Livonia and Dearborn. There were 28,705 foreclosure filings on more than 20,000 properties, nearly double the number reported in the first six months of 2006. Metro Detroit also ranked fifth in the total number of foreclosure filings. Stockton, Calif., had the highest foreclosure rate with one filing for every 27 households. August 16, 2007
Home Builders Increasingly PessimisticHome builders are getting increasingly pessimistic about future sales, a real estate trade group said Wednesday, as prospective buyers become more wary of jumping into a struggling housing market.The National Association of Home Builders said its housing market index, which tracks builders’ perceptions of current market conditions and expectations for home sales over the next six months, fell two points to 22 this month, the lowest reading since January 1991 and the sixth-straight monthly decline. August 16, 2007
Foreclosure Scam Artists Descending to Dupe UsThe creativity and audacity of con men and fraudsters never cease to amaze. One of the latest scams involves an evildoer who poses as a member of a church and persuades the congregation to join him in an “easy-money” plan to buy houses, fix them up and sell them at higher prices. Once church members buy into the scheme, the scoundrel takes off with the parishioners’ money, never to be seen again. In another, particularly brazen ploy, these rascals simply take down for-sale signs in front of vacant houses. Then they set up shop inside and either “rent” or “sell” the place to unsuspecting marks. In the case of renters, they abscond with the security deposit and the first month’s rent. With buyers, they take the cash at closing and split. August 16, 2007
Richmond Area Lowest for ForeclosuresThe Richmond region had the lowest foreclosure rate among the nation’s top 100 metropolitan areas, according to a midyear report released yesterday by RealtyTrac, an online marketplace for foreclosure properties. The area recorded 213 foreclosure filings in the first six months of this year — or one for every 2,319 households. The number is down 1 percent from the same period a year ago. Richmond shared company with McAllen, Texas, Greenville, S.C., and Honolulu for the lowest rates. The Norfolk-Virginia Beach-Newport News area had the fifth-lowest rate among 100 metro areas, reporting 747 filings, or one for every 787 households. August 16, 2007
Creditors Must Wait on Next Move by Atlanta’s HomeBancFor the near term, it’s pretty much wait and see on the part of the creditors to whom HomeBanc owes money. Homeowners with mortgages through HomeBanc must still make their monthly payments. It’s possible HomeBanc may sell those mortgages to other lenders, which would assume responsibility for collecting. As a result of Congress’ changes to the bankruptcy code in 2005, the case could be disposed of in about two years vs. the four or five it used to take, said Michael J. Lichtenstein, a bankruptcy attorney with Shulman, Rogers, Gandal, Pordy & Ecker in Rockville, Md. The once-highflying Atlanta-based mortgage lender last week filed for Chapter 11 bankruptcy protection in Wilmington, Del., following an announcement that it would no longer fund new home loans. August 16, 2007
Road Home Promises to Clean Up Its Blighted PropertiesStung by reports that the state hadn’t provided enough money to hire someone to clean up and secure hundreds of derelict Road Home properties, state officials promised Tuesday to send the Road Home Corp. $30 million so it can maintain properties it already has and handle an influx of as many as 9,000 properties by the end of the year. `In a morning conference call, the state Office of Community Development agreed to provide $30 million from the state’s line of credit to the Road Home Corp., a quasi-public nonprofit created by the legislature to transfer lots to local cities and parishes. August 16, 2007
Preapproved, Then Your Lender Goes BankruptGood news: You’re preapproved for a mortgage. Bad news: The lender that approved you just went bust. Now what? “Ordinarily, the consumer does not have a lot of recourse if the lender goes under,” says Donald C. Lampe, chairman of the American Bar Association’s consumer financial services committee and partner with Womble, Carlyle, Sandridge and Rice in Charlotte, N.C. Even if your lender is filing for bankruptcy, that doesn’t necessarily mean you have to go back to square one. In some cases, other lenders are stepping in to pick up the business. August 16, 2007
Many Buyers Must Try, Try Again As Condominium Market ShrinksA growing number of condominium developers are backing out of projects as the worsening real estate market causes lenders to tighten their standards. For buyers, a project’s cancellation can be an unexpected jolt. They get their deposits back but nothing for their time and aggravation. In the past 12 months, nearly 20,000 condo units have been removed from the glutted local development pipeline, said Gregory H. Leisch, chief executive of Delta Associates, a real estate research firm in Alexandria. By Delta’s count, in the second quarter of this year, developers abandoned plans for 22 local condo projects. August 16, 2007
Insuring Second Homes August 16, 2007
FEMA Says There’s No Better Time Than Now To PrepareTropical Storm Dean gathers strength in the Atlantic, Tropical Storm Erin in the Gulf threatens the coast of Texas and Hurricane Flossie once a threat to Hawaii weakens. With the peak of hurricane season squarely upon us, it’s time for individuals to review their personal preparedness plans and ready their disaster supply kits. The Department of Homeland Security’s Federal Emergency Management Agency (FEMA) coordinates the federal response to disasters and also plays an important role in preparing the nation for disasters. But it is everyone’s responsibility to take their own personal preparedness seriously. August 16, 2007
Open Spaces Pinching SuburbsWith development bearing down on its fertile farms and verdant woods, Evesham Township began to aggressively amass open space seven years ago. Since then, the Burlington County community has snapped up 3,300 acres for preservation, costing taxpayers more than $13 million. Buying, it turns out, was the easy part. August 16, 2007
Dry Spell Means Dry WellsA well has provided Alice and Frank Kushner with water for the 37 years they have lived in their Westminster area home. But in late July, the well went dry. Once the Kushners curtailed showering, washing dishes and doing laundry, some flow returned. Still, the couple decided it was time to connect to Westminster’s more reliable public system. With memories of rampant well failures across the metropolitan region during the 2002 drought still vivid, public officials and water resource experts say they are concerned that more private wells could fail over the next month of this bone-dry summer. August 16, 2007
Katrina Victims Struggle MentallyMany Gulf Coast residents still feel the wallop of Hurricane Katrina nearly two years later. Mental illness is double the pre-storm levels, rising numbers suffer from post-traumatic stress disorder, and there is a surge in adults who say they’re thinking of suicide. A government survey released Wednesday to USA TODAY shows no improvement in mental health from a year ago. About 14% have symptoms of severe mental illness. An additional 20% have mild to moderate mental illness, says Ronald Kessler of Harvard Medical School, who led the study. August 17, 2007
More D.C. Landlords Sued Over Lead PaintThe District’s attorney general finished filing a dozen cases yesterday against city landlords and property owners, trying to force them to get rid of lead paint in their buildings. Their names and addresses were brought to her attention after doctors ran blood tests on children younger than 8, all of whom lived in or frequently visited the homes and apartments scattered across the city, and found they had elevated levels of lead. After city risk assessors tested the properties, owners were ordered to clean up lead-paint hazards. Suits were filed against those who did not take appropriate steps, Attorney General Linda Singer said. August 17, 2007
Mortgage Woes Ripple OutwardAce Hardware and Hearth in Glen Burnie was doing a brisk business in high-end barbecues and hot tubs in the midst of the real estate boom. Now Pete Peterson, an owner of the store, is having trouble selling luxury items for the home as consumer budgets are squeezed. “When the value of homes went up quickly, people were able to take the money they didn’t work for and spend it on things they wanted,” Peterson said, referring to soaring home prices that made people feel richer and allowed some to cash out equity. “We’ve seen people put the luxury items on the back burner.” August 17, 2007
Avoiding The Subprime Siren SongAs the subprime meltdown continues to roil the markets and rattle policy makers, many are considering what it means to be a “regulated” financial institution. Congress has been busy pummeling bank regulators for not extending their turf over unregulated mortgage companies and brokers. Lost in the commotion are two salient facts: regulated banks as originators of mortgages largely avoided the subprime catastrophe; and regulated investment banks served as a catalyst for the subprime industry by bundling and selling questionable assets originated outside the regulated banking industry. How could one segment of the financial services industry get it so right while another went so far astray? August 17, 2007
Mortgage Pinch Causes Domino Effect of PainMatt and Kimberly Brown’s contract to buy a new home in Yelm, Wash., will expire at the end of the week. They’ve lined up a no-money-down loan through the Department of Veterans Affairs, but the Browns haven’t been able to sell the town house they live in, so they will have to back out and lose their $1,000 deposit. “A lot of people looked at (the town house) and love it,” says Matt, 26, who works in auto insurance claims. “But they either can’t get the interest rate they want for a home loan, they can’t get accepted for a home loan, or they can’t afford it.” August 17, 2007
Approved Home Loans No Longer Done DealsJoy Siegel, a Bethesda lawyer who handles home-sale closings, uses a spreadsheet to track which mortgage lenders are filing for bankruptcy protection these days. “It’s getting incredibly nerve-wracking for us,” said Siegel, president of Settlement Pros. “There are banks I haven’t even heard of, pages and pages of them, who have stopped making loans.” August 17, 2007
Countrywide Debt Protection Costs Fall on Fedhe cost to insure the debt of Countrywide Financial Corp. (CFC.N) fell on Friday after the Federal Reserve cut its primary discount rate by 50 basis points to 5.75 percent. The cost to insure Countrywide’s debt with credit default swaps fell to a mid point of 462.5 basis points, or $462,500 per year for five years to insure $10 million in debt, said an analyst. The swaps had earlier traded at around 545 basis points. August 17, 2007
Fannie Mae Predicts Price Decline Will Accelerate in ‘08Fannie Mae, the mortgage finance giant, yesterday predicted that housing prices will decline by 2 percent on average this year and by 4 percent next year as mortgage delinquencies rise, lenders tighten borrowing standards and the volume of unsold homes approaches record levels. “This is clearly a market poised for more severe overall credit losses,” Enrico Dallavecchia, Fannie Mae’s chief risk officer, said in a conference call with investment analysts. August 17, 2007
FEMA Aid To Texans Tops $18 MillionThe U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) and the Governor’s Division of Emergency Management (GDEM) are working in partnership to help Texas residents recover from the recent flooding that occurred from June 16th to August 3. August 17, 2007
Ruiz resigns from Louisiana Insurance Rating CommissionSteven “Rock” Ruiz, gadfly of the Louisiana Insurance Rating Commission and the group’s longest serving member, resigned Thursday in protest of rising insurance rates and dislike for the Louisiana Department of Insurance, leaving the lame duck commission with the minimum number of people necessary to do business. But Insurance Commissioner Jim Donelon said that Ruiz’s move has as much to do with his solidarity with embattled former Louisiana Citizens Property Insurance Corp. head Terry Lisotta, whose management is being probed by the Legislative Auditor amid accounting concerns. “He’s been a defender of Terry Lisotta,” Donelon said. August 17, 2007
Mortgage Ills Start to Strain Homebuying in ManhattanThe turmoil in the international mortgage market is starting to make it harder for New Yorkers to get the large loans that are typical in a city where the average apartment in Manhattan costs $1.3 million. In the past two weeks, banks have been increasing rates on so-called jumbo mortgages, sometimes at the very last minute, according to mortgage brokers and lawyers. So far, only a fraction of the pending real estate deals are being affected. Mortgage brokers say about 10 percent of Manhattan buyers are having to pay higher rates than they had expected or put more of their money into a purchase and take smaller mortgages. August 17, 2007
Development in City Defies Housing SlumpThe new townhouses in Northeast Baltimore will offer designer fixtures, master suites and, on some models, bay windows and porches, all centered on parks, playgrounds and a clubhouse with a fitness room. Not so different from any other new home developments except for this: Most of the homes in the first phase of the Towns at Orchard Ridge, a $118 million 467-unit community near Belair-Edison, have sold since going on the market in July. The boom comes at a time when builders of new homes here and across the nation are reporting plunging sales and existing homes are languishing on the market. August 17, 2007
Quicken/Rock Sees Silver Lining in Market’s WoesThe national panic over risky mortgage loans and rising home foreclosures could be a blessing for Livonia-based Quicken Loans and Rock Financial, founder and chairman Dan Gilbert said in an interview Thursday. Quicken has made moves in recent weeks to cut costs, slow hiring and shift all its retail mortgage lending to “plain-vanilla,” low-risk loans, Gilbert said. But it has not laid off workers and expects to grow mortgage loan volume this year by about 10% to more than $20 billion. Gilbert also said Quicken/Rock’s much-anticipated decision about a new headquarters location — speculation is centered on downtown Detroit — will not be derailed or delayed by the national mortgage-market woes. August 17, 2007
New Home Construction Slowest in DecadeConstruction of new homes fell to the lowest level in more than a decade in July as builders continued to struggle with the steepest housing slump since 1991. The Commerce Department reported Thursday that construction of new homes and apartments dropped 6.1 percent last month to a seasonally adjusted annual rate of 1.38 million units. That was down 20.9 percent from the pace of activity a year ago and represented the slowest pace since January 1997. August 17, 2007
Fannie Mae Profit Down 36 PercentFannie Mae, the largest U.S. buyer and guarantor of home mortgages, reported Thursday that its profit dropped 36 percent in 2006 and said it expects higher delinquencies and credit losses this year from the turbulence in the mortgage market. The government-sponsored company, which finances or guarantees one of every five home loans in the United States, said it earned $4.1 billion, or $3.65 a share in 2006, down from $6.35 billion, or $6.01 a share, in 2005 and $5 billion, or $4.94 a share, in 2004. August 17, 2007
Home Buyers Wait Years, but Lots Are Still EmptyMinh-H-Nguyen and her husband, Ha Ngoc Nguyen, took out a loan for a down payment on a “dream home” in Lake County two years ago after being dazzled by pictures of a sprawling house with a screened pool. “The dream has not come true,” said Minh-H-Nguyen, 38, frowning. Like hundreds of others, the Ocoee couple haven’t seen their home built. At least 10 of them have filed lawsuits against developer Platinum Properties of Central Florida, which took the Nguyens’ $35,190 deposit but has not delivered on their $351,000 home in Millbrook Manor. August 17, 2007
Lender Set to Buy HomeBanc Loans Now Has Own WoesHomeBanc Corp. was to have closed on the sale of some of its mortgage loans and related assets to Countrywide Financial Corp. one week ago, but whether the deal actually went through remains unclear. Neither side is talking, and now both companies are reeling from the problems in the mortgage market. Atlanta-based HomeBanc, which ceased originating mortgages Aug. 6, limped into Chapter 11 bankruptcy protection last week after its lenders snatched away its funding. It also fired most of its employees. That move roiled the markets Thursday and fed speculation that Countrywide — the nation’s largest home lender — itself might go into bankruptcy. August 17, 2007
New-Home Sales Dive 1/3 in JuneSales of new homes in the Bay Area plunged 35 percent in June, the latest sign the once-strong real estate market continues to stagger. A total of 833 newly built single-family homes, condos and townhomes were sold in the six major metropolitan areas tracked each month by the California Building Industry Association. That compares with 1,286 sold in June 2006. Price changes over the last year in the region were mixed - some cities showed declines of nearly 5 percent, but others had double-digit increases. However, the price data by market may be skewed by the small number of homes sold in certain areas. August 17, 2007
Mortgage Mess Weighing on Valley’s Home MarketSanta Clara County’s housing market continued in fire and ice mode in July, with expensive homes selling briskly while more affordable ones languished as lenders tightened their standards. But the numbers - released Wednesday by DataQuick Information Systems - reflect sales initiated before the recent turmoil in the mortgage market, which has real estate agents nervous. Tricky, subprime loans made to buyers with riskier credit helped fuel the recent housing boom. Now, with rising defaults, many lenders are unwilling to make loans to borrowers considered the slightest bit risky, and they’re also tightening up on loans to buyers with good credit. The result is likely to be slowing sales and dropping prices. August 17, 2007
Where The Heart IsFor anyone trying to promote a thriving downtown commercial and residential district, homeless people present a dilemma. This week’s effort by Baltimore’s Downtown Partnership to remove trash and boxes accumulated by homeless people camped out near Guilford Avenue and the Jones Falls Expressway was regrettable. But the incident reinforces the fact that the homeless are still with us and underscores the critical need to deal with how and why they are on the streets. August 17, 2007
Edwards, Foreclosure Critic, Has Investing Tie to Subprime LendersAs a presidential candidate, Democrat John Edwards has regularly attacked subprime lenders, particularly those that have filed foreclosure suits against victims of Hurricane Katrina. But as an investor, Mr. Edwards has ties to lenders foreclosing on Katrina victims. The Wall Street Journal has identified 34 New Orleans homes whose owners have faced foreclosure suits from subprime-lending units of Fortress Investment Group LLC. Mr. Edwards has about $16 million invested in Fortress funds, according to a campaign aide who confirmed a more general Federal Election Commission report. Mr. Edwards worked for Fortress, a publicly held private-equity fund, from late 2005 through 2006. August 17, 2007
‘Mental Health Slums’ ProbedNorth Texas’ mental health authority is investigating how many of its clients have lived in boardinghouses owned by an ex-cop and felon, how they got there and why state-funded mental health providers didn’t do more to address “horrific” living conditions. “What bothers me more than anything is, we’re supposed to have staff going in and out of these places,” said Ed Miles, executive director of the North Texas Behavioral Health Authority. “What were they thinking? Why aren’t they telling someone or complaining? … And why are we referring people to places that we know are absolute nightmares?” August 17, 2007
The 10 Commandments For Purchasing a Home — Part 1My goal in these articles is to help people get the lowest interest rate with the least amount of fees on their home loan. My other goal is to help you before you get a loan. Filing a class action suit or asking for help after you have lost your home to foreclosure does not help you get your home back. Moreover, a bad home loan can affect your credit and life for years to come. (see my previous article - Predatory Lending and the Black Home Owner) August 17, 2007
Countrywide Financial Cuts 500 JobsCountrywide Financial Corp., the nation’s largest mortgage lender, said Monday it has eliminated about 500 jobs as it tries to ride out problems from a credit crunch that has rocked the home loan industry.The company said the cuts came in the subprime lending unit of its Wholesale Lending Division and its Full Spectrum Lending unit, which handles mortgages given to customers with minor credit problems or who can’t provide full income documentation required for traditional prime loans. August 21, 2007
Warren Buffett Could Buy Parts of CountrywideBillionaire investor Warren Buffett may buy parts of beleaguered mortgage lender Countrywide Financial Corp, some investors are speculating, according to The Wall Street Journal. Countrywide’s debt-servicing business and its portfolio of mortgages and mortgage-backed securities may be attractive to Buffett, the Journal reported on its Web site on Monday, citing unnamed investors. Like many mortgage lenders, Countrywide has struggled with rising delinquencies and foreclosures, and an unwillingness among bankers to extend credit, and among investors to buy the loans it makes. August 21, 2007
Congress Seeks to Halt Rising ForeclosuresWith fresh data showing home foreclosures on the rise, lawmakers on Capitol Hill are considering various measures to restore a mortgage market now in disarray. Some are suggesting that lenders and borrowers involved in the risky loans that are now going bad should simply suffer the consequences. But supporters of more aggressive measures argue that the government may nee to step in before the current mortgage mayhem threatens the wider economy. August 21, 2007
Capital One Financial to Quit Residential Mortgage BusinessIn yet another casualty of the fallout in the mortgage industry, the Capital One Financial Corporation said yesterday that it would stop making residential mortgages and close GreenPoint Mortgage, its wholesale mortgage banking unit. As part of this decision, about 1,900 employees will be laid off, most of them by the end of the year. The company will also close GreenPoint’s headquarters in Novato, Calif., along with 31 locations in 19 states. Capital One acquired GreenPoint as part of its purchase in December of the North Fork Bancorporation. During the first six months of 2007, GreenPoint was the 23rd largest mortgage company after making $12.3 billion in loans, a 30 percent drop from the period a year ago, according to Inside Mortgage Finance, a trade publication. August 21, 2007
Your Money: Home Buyers, Save for That Down PaymentWhich means that if you plan to buy a home in the next few months, you’ll need to put some money on the table. The Federal Housing Administration offers a 3% down payment loan for low-income and first-time buyers. But FHA loan limits haven’t kept up with home prices in some high-cost areas. For a private loan, expect to put down at least 5%, and that’s assuming you have good credit. If you want to avoid private mortgage insurance, which will increase your monthly payments, you’ll need to put down 20%. August 21, 2007
Early Mortgage Payoff Isn’t Always a Bad IdeaFrances of Ellicott City poses one of the most frequent questions financial planners get. Should she pay off her mortgage early? Frances reads financial magazines that say it’s a mistake to prepay when you could be earning more with it in the stock market than what you pay in interest. August 21, 2007
Fannie, Freddie Could Help to Stimulate Jumbo Mortgage LoansSome lawmakers are calling on Congress to stimulate the moribund jumbo-loan market by letting Fannie Mae and Freddie Mac purchase substantially larger loans on homes in high-cost metro areas.Today, Fannie and Freddie can purchase single-family loans up to $417,000 in the continental United States. The limit is 50 percent higher - $625,500- in Hawaii, Alaska, Guam and the Virgin Islands because years ago, those outlying areas were considered high cost. These limits are indexed to inflation and are higher for multi-family dwellings. August 21, 2007
Foreclosures Surge, Georgia Among WorstForeclosure filings rose 9 percent from June to July and surged 93 percent over the same period last year, with Georgia, Nevada and Michigan accounting for the highest foreclosure rates nationwide, a research firm said Tuesday. The filings include default notices, auction sale notices and bank repossessions. The figures are the latest measure of the ailing housing market, which has seen defaults and foreclosures soar as financially strapped borrowers have failed to make payments or find buyers. In all, 179,599 foreclosure filings were reported during July, up from 92,845 in the year-ago month, according to Irvine-based RealtyTrac Inc. A total of 164,644 foreclosure filings were reported in June. The national foreclosure rate in July was one filing for every 693 households, the firm said. August 21, 2007
Foreclosures Still on the Rise in MichiganMichigan continued its rapid foreclosure pace in July, ranking third nationwide, according to figures released this morning. Wayne County topped the list of major metropolitan areas, with a 70% jump in foreclosure activity in July compared with a year ago, according to RealtyTrac Inc., an Irvine, Calif.-based online foreclosure firm. The county reported 8,683 foreclosure filings in July, or one filing for every 97 households. Michigan ranked third with 13,979 foreclosure filings in July, up 39% from June and a 130% increase from July 2006. That’s a rate of one foreclosure for every 320 households, compared to one for every 693 households nationwide, RealtyTrac said. August 21, 2007
U.S. Foreclosures Rise Sharply in JulyForeclosure filings rose 9 percent from June to July and surged 93 percent over the same period last year, with Nevada, Georgia and Michigan accounting for the highest foreclosure rates nationwide, a research firm said Tuesday. The filings include default notices, auction sale notices and bank repossessions. The figures are the latest measure of the ailing housing market, which has seen defaults and foreclosures soar as financially strapped borrowers have failed to make payments or find buyers. In all, 179,599 foreclosure filings were reported during July, up from 92,845 in the year-ago month, according to Irvine-based RealtyTrac Inc. A total of 164,644 foreclosure filings were reported in June.

The national foreclosure rate in July was one filing for every 693 households, the firm said. August 21, 2007
Pump Tests End with Impressive Water ShowIt wasn’t necessary to end the final round of pump testing with a whiz-bang water show on the 17th Street Canal Monday night, but that’s just what Army Corps of Engineers’ project leaders ordered up.The choreographed display culminated with the canal’s 11 newest and largest pumps running in tandem. Together, the 11 direct-drive pumps can push a maximum of about 4,000 cubic feet of water per second, cfs, out of the canal and into Lake Pontchartrain. At that capacity, the pumps can basically lower the water level in the canal, when floodgates are closed by about 1 foot every 12 or so minutes.When running in concert with 34 previously installed hydraulic pumps, the corps estimates it can move no less than 7,600 cfs from the canal. August 21, 2007
Home-Loan Bank System Boosts EffortThe Federal Home Loan Bank system has increased low-cost lending to financial institutions in an effort to bolster credit stability. As the housing crisis worsens and the Federal Reserve has swooped into the market to ensure liquidity, the 12 regional banks are making more cash available to banks and thrifts that make mortgage loans. Created by Congress during the Depression, the self-funded Federal Home Loan Bank system has some 8,100 members around the country: banks, savings and loans and credit unions -predominantly small community lenders. Eight of every 10 U.S. financial institutions belong to the system, which is a big player in the $8 trillion home-mortgage market. August 21, 2007
Mountain House Community: From Boom to Bust on Bay Area’s EdgeAt Mountain House, visionaries carefully planned streets, schools, sewers - everything needed to create a thriving community of 16,000 homes in the middle of San Joaquin County’s farmland. Build it and they will come. And they did. Starting in 2003, thousands of Silicon Valley residents desperate for a house, two-car garage and back yard made the hour-plus commute from the job-rich Bay Area over the Altamont Pass to Mountain House, where home prices started in the low $300,000s. August 21, 2007
Housing Grant Records after Katrina SoughtHoping to get a clearer picture of who’s benefiting from Mississippi’s post-Hurricane Katrina housing grants, a coalition of advocacy groups has filed public records requests with the agency administering the program. The records requests were filed by the National Fair Housing Alliance, Oxfam America, The American Civil Liberties Union, Gulf Coast Fair Housing Center and the Lawyers’ Committee for Civil Rights Under Law. They seek information about grant applicants and state contracts related to the housing program. The Mississippi Development Authority, which oversees Gov. Haley Barbour’s Homeowners Assistance Grant Program, has until Sept. 6 to comply. If it doesn’t, the groups said they’ll consider legal action. August 21, 2007
As Foreclosures Mount, D.C. Debates AnswerThe nation’s mortgage crisis worsened last month as thousands of homeowners across the country failed to keep up with their monthly payments and faced the possibility of losing their homes. Foreclosures rose 9 percent in July compared with June and were up 93 percent from a year ago, according to the latest monthly figures released Tuesday by RealtyTrac, a Web site that tracks foreclosed properties. Nearly 180,000 fillings — including default notices, auction sale notices and bank repossessions — were reported during the month. That means that one in every 693 U.S. households was hit with foreclosure in July. August 22, 2007
Katrina Renews Calls for Change in Rebuilding RulesThis island’s website couldn’t be blunter: “Dauphin Island is in a precarious position of being a barrier island, in essence an overgrown sandbar. This gives us a potential of being a disaster in the making. We have been hit by numerous hurricanes, Ivan, Frederic, Georges, Danny and many more!” Hurricane Katrina was the latest storm to punish this 14