Howard Law Fair Housing News Digest

HUD INDEFINITELY DEBARS FOUR INDIVIDUALS FOLLOWING REVERSE MORTGAGE SCAM THAT TARGETED SENIORSThe U.S. Department of Housing and Urban Development (HUD) today announced the indefinite debarment of three South Florida mortgage loan officers and a Pittsburgh title agent following their criminal convictions on charges they defrauded elderly borrowers, mortgage lenders and the Federal Housing Administration (FHA). Marcos Echevarria, Louis Gendason, John Incandela and Kimberly Mackey pled guilty to charges of conspiracy to commit wire fraud for their part in a $2.5 million nation-wide reverse mortgage scam. All four individuals are currently serving prison terms. April 18, 2012
HUD targeted as budget pressures growIn this age of austerity, whoever wins the presidential election will have to make tough decisions about where to find budget savings, and housing advocates worry that HUD could be a top target, at a time when the agency is already under stress. The agency’s difficulty in meeting needs has grown only tougher with the onset five years ago of a national housing downturn, which pushed unemployment sharply higher. April 18, 2012
Bank of America Confronts $2 Billion Bad Home-Equity: MortgagesBank of America Corp., whose home- equity mortgage portfolio exceeds its stock market value, probably will say about $2 billion of junior loans are bad assets tomorrow even as some borrowers are still paying on time. That’s what Barclays Capital Inc. estimates the bank will report in its first-quarter results, following decisions by JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. to reclassify $4.1 billion of junior liens as nonperforming. April 18, 2012
Thousands housed in trailers after Katrina may get paymentsMore than 20 mobile home manufacturers have agreed to pay $14.8 million to thousands of U.S. hurricane victims who said they were harmed by formaldehyde in the trailers. Lawyers for the plaintiffs, who lived in trailers after being left homeless by Gulf Coast hurricanes Katrina and Rita, filed the preliminary settlement in federal court in New Orleans on Friday, asking U.S. District Judge Kurt Engelhardt to approve it. April 18, 2012
Fair Housing Month MessageApril, we come together as a community and a nation to celebrate the anniversary of the passing of the Fair Housing Act and recommit to that goal which inspired us in the aftermath of Martin Luther King Jr’s assassination in 1968: to eliminate housing discrimination and create equal opportunity in every community April 10, 2012
Illinois landlord agrees to perform lead abatement work in 463 housing unitsThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Wilmette Real Estate & Management Company, LLC; WR Property Management, LLC; 14 affiliated limited liability companies and Mr. Cameel Halim in Chicago and Evanston, Illinois. According to HUD and EPA, these owners and management companies in Chicago and Evanston, IL violated the federal Residential Lead-Based Paint Hazard Reduction Act (Residential Lead Act) and implementing regulations (Lead Disclosure Rule) by failing to properly inform some tenants that their homes may contain potentially dangerous levels of lead. April 10, 2012
How can I attract buyers to a co-op that has rental restrictions?At the time of purchase, the bylaws permitted 20 percent of the units to be leased. Three years later, the by-laws changed the limit to 10 percent. During the real estate boom, this change had little impact on resale values but now that the market has slowed, owners like me are finding that the leasing restriction has led to very few people wanting to invest permanently in the building. April 10, 2012
Once a Rapper, a Ballerina or a Model, Now in Real Estate SalesHe was a member of B.I.G.’s rap group, Junior M.A.F.I.A., and he went by the name Klept, or Kleptomaniac. Fast-forward 15 years. Where do you think Kleptomaniac might be now? “Real estate,” he said. “Mostly sales.” Klept, who now uses his legal name, Terrence Harding, is a vice president at the Corcoran Group and sells apartments in Manhattan and Brooklyn. April 10, 2012
Occupy groups focusing protest on foreclosuresMercedes Robinson-Duvallon turned 83 in February, but there was little time for celebration. On her birthday, as she sat in a wheelchair recovering from surgery, sheriffs’ deputies arrived to evict her from the Miami home where she has lived since 1966. A year earlier her property had moved into foreclosure after she defaulted on a refinanced loan. Robinson-Duvallon says she would be homeless now but for the intervention of about 40 members of Occupy Fort Lauderdale, a Florida branch of the national movement that is protesting income inequality and corporate greed. April 10, 2012
Cash-strapped Detroit approves debt rescue planThis cash-strapped city reached a deal Wednesday evening to restructure its debt and overhaul operations to avoid having a state-appointed manager take sweeping control of Detroit’s struggling finances. The City Council voted 5-4 to accept the contentious agreement. Mayor Dave Bing and Republican Gov. Rick Snyder are set to sign the agreement that allows the city to dodge today’s deadline that would have allowed the governor to appoint an emergency manager. April 5, 2012
America’s romance with sprawl may be overFive years ago, millions of Americans were streaming to new homes on the fringes of metropolitan areas. Then housing prices collapsed and the Great Recession slowed growth to levels not seen since the Great Depression in the 1930s. Growth remained slow last year, and largely confined to counties at the center of metropolitan areas. Maps show population gain or loss in 2006 and 2011, based on new Census Bureau estimates. April 5, 2012
HUD, VA TO PROVIDE PERMANENT HOUSING AND SUPPORT TO MORE THAN 10,000 HOMELESS VETSU.S. Housing and Urban Development Secretary Shaun Donovan and U.S. Department of Veterans Affairs Secretary Eric K. Shinseki announced today that HUD will provide $72.6 million to public housing agencies in all 50 states and the District of Columbia to supply permanent housing and case management for more than 10,000 homeless veterans. April 5, 2012
HUD AWARDS $33 MILLION TO 28 LOCAL HIV-AIDS HOUSING PROGRAMSU.S. Department of Housing and Urban Development announced that more than 1,200 extremely low-income persons living with HIV/AIDS will continue to receive permanent housing as a result of nearly $33 million in grants HUD is awarding. Annually, these grants will provide permanent supportive housing for those households so they can manage their health and access needed supportive services such as case management and employment training. April 5, 2012
For Home Buyers, an App to Assess a House’s AttributesNot only can mobile software help home buyers select the right house more quickly than tech-free buyers, it can also help people make smarter bidding decisions. Two deep-pocketed Internet companies, Trulia and Zillow, released mobile software years ago intended to help buyers find and research available homes, among other features. April 5, 2012
Howard Theatre’s rebirth comes amid neighborhood’s dying pastThe Howard is returning to a part of the city that is nothing like it was even a decade ago, let alone 1970, when the theater closed before opening sporadically throughout the ’80s. Beginning in the 1990s, as developers seized on the area, professionals moved into new condos and renovated rowhouses, eventually tripling median home sale prices to $629,000. African Americans now account for less than half of Shaw and LeDroit Park, the neighborhoods surrounding the Howard, although the areas were nearly 80 percent black a generation ago. April 5, 2012
New foreclosure wave to hit ‘everyday’ borrowersHalf a decade into the deepest U.S. housing crisis since the 1930s, many Americans are hoping the crisis is finally nearing its end. House sales are picking up across most of the country, the plunge in prices is slowing and attempts by lenders to claim back properties from struggling borrowers dropped by more than a third in 2011, hitting a four-year low. But a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures. April 5, 2012
U.S. home market pulls in more Chinese buyersBuyers from mainland China and Hong Kong are snapping up luxury homes, often paying cash, in major U.S. cities such as New York, Los Angeles and San Francisco. They’re coming by the dozens to buy foreclosed properties in downtrodden cities in Florida and Nevada. Chinese buyers are even starting to snap up pricey commercial buildings and hotels in Manhattan. April 4, 2012
For sale by owner: What to know if you sell your home yourselfSelling your home without a real estate agent is not for everyone. But for those who have the time, skills and emotional strength, doing so can save tens of thousands of dollars in brokerage commissions. There are three distinct phases in all home sales: presale, contract negotiation and settlement. All three phases must be successfully navigated for you to market, sell and settle on the sale of your home. Over the next three columns, I will examine each phase and provide tips from real estate professionals on how you can maximize your success as a “for sale by owner,” or FSBO, seller. April 4, 2012
Despite 2009 Deal, Affordable Housing Roils Westchester April 4, 2012
Where Housing Once Boomed, Recovery LagsThe official statistics say that the national economy has been growing for almost three years, and that Maryland is growing faster than most states. But in Prince George’s County, where housing prices have fallen more than anywhere else in the state, there is scant evidence of renewed prosperity. Auto sales are slowly improving nationwide, but car dealers here say the arrival of spring and tax refunds are failing once again to bring buyers to their lots. Contractors who built homes say they are glad for work fixing roofs. April 3, 2012
Investors Are Looking to Buy Homes by the ThousandsWith home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes. April 3, 2012
Half of Irish Homeowners Join Boycott of New Property TaxAnti-austerity protesters are claiming victory after the government acknowledged that around 50 percent of Ireland’s estimated 1.6 million homeowners failed to pay a new, flat-rate $133 property tax by the March 31 deadline. Introduced on Jan. 1, the household charge was intended as a forerunner to a comprehensive property tax next year. It has become a lightning rod for widespread disenchantment on an assortment of issues like cuts to services, findings of political corruption, taxpayer liability for debts to private banks and even European legislation intended to enhance wastewater treatment from septic tanks. April 3, 2012
Foreclosure reforms to widenState and federal officials who recently completed a $25 billion settlement with five of the nation’s largest banks over shoddy foreclosure practices have begun discussing how to apply some of the terms of that deal to a wider array of financial firms. The landmark agreement finalized in February in part forces the five major banks to overhaul flawed and fraudulent foreclosure practices that had become common in recent years. Those changes include forbidding “robo-signing” of documents and providing a single point of contact to homeowners, who in the past often faced foreclosure from the banks even as they were negotiating ways to remain in their homes. April 3, 2012
Foreclosures give rise to a new industryKen Major climbs the steps of a county courthouse in a San Francisco suburb with $500,000 in cashier’s checks in one hand and a list of addresses in the other. Major is a buyer for Waypoint Real Estate, an Oakland-based investment firm that is scooping up foreclosed homes in California. On this afternoon, he joins a dozen house flippers as an auctioneer starts hawking the latest batch of defaulted properties to hit the market. Major bids on a three-bedroom house in Antioch, and after other buyers counter, he wins at $147,600. April 3, 2012
Depths of foreclosure crisis difficult to measureVerna is here because he specializes in distressed properties and Florida, thrashed by the mortgage crisis, has thousands. But figuring out just how many is not simple. Each month, analysts issue reports detailing the number of homes nationwide in foreclosure or held by banks. The implication is that if we can match buyers with these houses or help borrowers stay put, the economy will be able to heal at last. April 2, 2012
Expectations rising for housing market’s spring seasonWhile last year was dismal for existing home sales, this year is looking better. Existing home sales in February were up 9% from the same time a year ago, as was the Pending Home Sale Index, which reflects signed contracts leading to sales, says the National Association of Realtors. April 2, 2012
Washington area’s housing market is recovering, albeit unevenlyIn some areas, there are signs of a stronger market: foreclosures and short sales comprise a smaller portion of the total number of houses for sale; in some neighborhoods, prices are appreciating modestly; and in some places, houses are even fetching multiple offers. But local economists and real estate experts have noticed that the market’s health varies greatly in Virginia, Maryland and the District, making the area’s real estate recovery a tale of two states (or three jurisdictions.) April 2, 2012
More realty agents report that their home sales are being canceled or postponedWhat’s behind the unusually high rate of contract cancellations and settlement delays in the real estate market? With signs of recovery emerging in many parts of the country, shouldn’t deals be zipping along with minimal complications? Apparently not. Nearly one-third of realty agents in a new national survey reported experiencing contract cancellations — purchases crumbling before going to closing — in February. That’s up dramatically from a similar poll 12 months earlier, when just 9 percent of agents reported cancellations. Another 18 percent reported delays in scheduled closings in the latest study, which involved approximately 3,000 agents surveyed by the National Association of Realtors. April 2, 2012
Distressed Cities Weigh Bold Tactics in a New Fiscal EraAmid all the sobering discussions of what happens when cities run out of money, fiscal sleight of hand and time, the most telling detail at a conference on distressed municipalities here last week just might have been the one about the fire truck that was the wrong color. Robert Stout, the former finance director of Vallejo, Calif., was talking about the spiraling public safety costs that ultimately led his city to declare bankruptcy when he mentioned the time a fire broke out two blocks from his home there, not long after the city had closed some of its firehouses to save money. April 2, 2012
Online Features ExpandedAS buyers begin searching for mortgages this spring, they may notice that many of the major online shopping sites have been adding new user-friendly features. And if they look hard enough, they will also find another new service joining the crowd — this one from a man who calls himself the “mortgage professor.” April 2, 2012
Bust leaves market littered with homes under $10,000Ben Yonge stole away from a business conference last month to make a killing in real estate. As his colleagues broke for lunch, the Orlando broker closed on a nearby four-unit apartment building that in better times had fetched $120,000. The price Yonge paid: $25,000. The nation’s housing market is showing some signs of life, but the bust has left a glut of ultra-low-priced properties on the market — including thousands of homes nationwide priced at $10,000 or less. In 10 of the largest metro markets, there were at least 100 homes listed at $10,000 or below, including Atlanta (234), Baltimore (207) and Chicago (165), according to research conducted by Realtor.com for msnbc.com. April 2, 2012
HUD’S MORTGAGEE REVIEW BOARD PERMANENTLY HALTS AMERICAHOMEKEY FROM DOING BUSINESS WITH FHAThe U.S. Department of Housing and Urban Development’s Mortgagee Review Board (MRB) today announced that it is immediately and permanently withdrawing approval for AmericaHomeKey, Inc. (AHK) to originate and underwrite new mortgages insured by the Federal Housing Administration (FHA). In addition, the MRB is imposing $268,000 in penalties against the Dallas-based mortgage lender for repeated and serious violations of FHA requirements. March 26, 2012
No Longer Burning, the South Bronx GentrifiesThe reason for their suspicions, he guessed, was that a white face like his was still a rarity among residents of the Concourse neighborhood in the South Bronx. That had been true for 40 years, ever since an exodus that cost the Bronx over 300,000 residents and turned the Concourse into an emblem of white flight and urban disenchantment. But now Mr. Casari is far less of a curiosity. More middle-class professionals, many of them white, are joining him, buying co-ops with sunken living rooms and wraparound windows for under $300,000 in Art Deco buildings that straddle a boulevard designed to emulate the Champs-Élysées. March 26, 2012
Warming up to homes with radiant heatI’m looking to buy a house, and I’ve seen online descriptions saying a house has radiant heat. What in the world is that? The house I grew up in had hot air that blasted out of ducts. What are the pros and cons of radiant heating? Is it expensive to operate? Would you own a home with radiant heat? March 26, 2012
Bank of America hopes underwater homeowners become renters to avoid foreclosureOne of the country’s largest banks is about to find out which choice significant numbers of distressed owners make in response to a new foreclosure-avoidance plan it calls “mortgage-to-lease.” Bank of America is sending proposals later this month to upward of 1,000 customers in Arizona, New York and Nevada. If the reaction is positive, the program is likely to be expanded to other states, and it could become a model for the biggest players in the mortgage market, Fannie Mae and Freddie Mac. March 26, 2012
The mortgage ‘robo-signing’ settlement’s impact on the D.C. areaThe federal government recently reached an agreement to provide as much as $25 billion to 49 states and the District to assist borrowers in those jurisdictions who either lost their homes to foreclosure or whose homes are underwater. Some funds have been given directly to the states that have signed on to the agreement to help pay for consumer and foreclosure protection efforts. March 26, 2012
Mortgage rates top 4% for the first time in three monthsThe average rate on a 30-year fixed mortgage has topped 4% for the first time since late October but the increase isn’t expected to derail budding signs of strengthening in the U.S. housing market. Mortgage giant Freddie Mac said Thursday that the average rate on 30-year loans jumped to 4.08% this week, up from 3.88% two weeks ago. Mortgage rates, which have been at or near record lows for months, are rising with higher yields on 10-year Treasury notes and the improving economy. They may go higher. Freddie Mac expects 30-year fixed-rate loans to be nearer to 4.25% to 4.5% by the end of the year, says Freddie Mac chief economist Frank Nothaft. March 23, 2012
Firm known for foreclosures and costume party settlesA New York law firm that was harshly criticized after pictures surfaced from a company Halloween party where people dressed as homeless has agreed to pay $4 million in a settlement with the state over some of the tens of thousands of foreclosures it filed, attorneys said Thursday. The agreement settles allegations that the Steven J. Baum Firm, one of the state’s largest-volume foreclosure companies, engaged in “robo-signing” and other paperwork shortcuts to process a huge number of foreclosure cases for clients including Wells Fargo, JPMorgan Chase, Bank of America, HSBC and Citibank, according to Attorney General Eric Schneiderman’s office. March 23, 2012
O’Malley scales back environmental initiativeMaryland Gov. Martin O’Malley scaled back one of his key environmental initiatives on Thursday as lawmakers said it became clear his controversial plan to curb sprawl faced an uncertain future with less than three weeks remaining in the General Assembly session. O’Malley (D) had proposed giving the state power to override some local zoning decisions over new housing developments that rely on septic systems. The governor had said the state needed the authority to ensure it could reduce the waste that leaches from the developments and pollutes the Chesapeake Bay. March 23, 2012
As housing market heals, it’s time to hasten the foreclosure processSix years have passed since the crisis began, yet instead of accelerating, foreclosures have slowed.Until now this has been fortuitous. Time was needed to make sure struggling homeowners were treated properly, and to let the financial system digest its losses and the housing market absorb the flood of repossessions and short sales. But these objectives have been met, more or less. It is time to move on. House prices won’t rise and the economy won’t fully engage until more distresses properties are resolved and put back into ordinary use. March 23, 2012
Bank of America unveils pilot program offering those facing foreclosure a chance to rentBank of America says it has begun a pilot program offering some of its mortgage customers who are facing foreclosure a chance to stay in their homes by becoming renters instead of owners.The “Mortgage to Lease” program, which was launched this week, will be available to fewer than 1,000 BofA customers selected by the bank in test markets in Arizona, Nevada and New York. March 23, 2012
U.S. Rejects Environmental Reviews on Mortgages Linked to DrillingFederal agriculture officials will not require an extensive environmental review before issuing mortgages to people who have leased their land for oil and gas drilling, according to a notice released by the Department of Agriculture this week. The notice represents a reversal from what lawyers and environmental officials in the agency’s Washington and regional offices previously told landowners and members of Congress in e-mails. March 23, 2012
Economists optimistic that this spring could mark a turnaround for area home pricesAccording to economists who follow the local housing market, early indicators show that the 2012 spring season could mark the first year in a long time that we see any kind of real price appreciation. The number of foreclosed homes for sale is now a much smaller part of the market than it was even a year ago. Real estate agents say they are encouraged to see more multiple offers. March 22, 2012
In Buying House Out of Foreclosure, ‘I’ve Done My Part’WHEN I bought a home out of foreclosure in 2009, it took over 1,000 hours from beginning to end.I visited properties, looked up county tax records and considered neighborhoods while researching comparable home values. I assembled a team that included two tenacious real estate professionals; a first-rate contractor; a mortgage broker to help navigate the tangle of Federal Housing Administration, Internal Revenue Service and city and county regulations; as well as my parents. March 22, 2012
Could D.C. area soon become a renter’s market? Yes and no.The Washington area market has not been kind to renters in recent years. A relative dearth of new buildings and soaring demand for apartments have pushed prices higher and made desirable units harder to find. At the end of 2011, the average rental price across the region stood at $1,685 — 2.1 percent more than the previous year. But market observers say that dynamic may begin to shift in favor of renters as early as this summer. March 21, 2012
Ex-Taylor Bean CFO pleads guilty in $3B mortgage fraudThe chief financial officer of what had been one of the largest U.S. private mortgage companies pleaded guilty to charges Tuesday for his role in a $3 billion fraud scheme. Delton de Armas, 41, was CFO of Florida-based Taylor Bean and Whitaker up until its collapse in 2009. On Tuesday, de Armas became the eighth person convicted in one of the biggest fraud schemes to emerge from the nation’s housing crisis. The other seven, including Taylor Bean founder and chairman Lee Farkas, were sentenced last year, with Farkas receiving a 30-year term. March 21, 2012
Housing starts drop in February, but building permits riseU.S. builders are betting that the housing market is finally on the path back to health. They requested 5% more permits in February to build single-family homes and apartments in the coming months. That increased the annual rate to a seasonally adjusted 717,000 permits, the Commerce Department said Tuesday. While that’s still half the rate considered healthy by most economists, it’s the highest since October 2008. March 21, 2012
Near Nationals Park, a neighborhood is emergingMany nicknames are used for the emerging neighborhood south of Capitol Hill, between Interstate 395 and the Anacostia River. There is “Navy Yard,” an apt name because it adorns the Metro station and the Washington Navy Yard operates on the neighborhood’s riverfront. There is “Ballpark District,” used since Nationals Park opened in 2008 at South Capitol and N streets SE. There is “Capitol Riverfront,” the brand that developers have been pushing to try to attract more restaurants and entertainment outlets. March 21, 2012
Spring blooms early for DC housing marketThe warm weather is bringing a swarm of people to see the early blooms of the region’s cherry trees. The unseasonable weather—along with positive economic signals and an increase in consumer confidence—is also bringing crowds to local open houses. Sales activity in the Washington region was up in January and February of this year compared with the same months in 2011. March 21, 2012
Strategic Directions for Occupy Wall Street: Foreclosing Banks, Defending Homes, Making HistoryFamed sociologist Frances Fox Piven and labor organizer Stephen Lerner discuss how Occupy Wall Street could grow into a major political movement that draws millions into the streets. March 20, 2012
U.S. fines eight banks for alleged foreclosure abuseThe Federal Reserve said Monday that it plans to fine eight additional U.S. bank holding companies for improperly foreclosing on homeowners. The financial firms — EverBank, Goldman Sachs Group, HSBC Holdings PLC, PNC Financial Services Group, MetLife, OneWest Bank, SunTrust Banks and U.S. Bancorp— were not part of last month’s settlement over alleged foreclosure abuses. March 20, 2012
Homebuilders more optimistic about sales picking upHomebuilders’ feelings about the current housing market haven’t changed from February. But many are growing more optimistic that sales could pick up in the coming months. The National Association of Home Builders/Wells Fargo said Monday that its builder sentiment index stayed at 28, the highest level since June 2007. The flat reading followed five straight increases. Builders expressed more confidence in sales over the next six months. A separate gauge measuring that outlook rose in March for the sixth straight month, from 34 to 36. March 20, 2012
U.S. makes $25 billion on sale of mortgage-backed securitiesThe Obama administration announced Monday that taxpayers made $25 billion in profit on a program to keep mortgage interest rates down in the wake of the 2008 meltdown in financial markets. Building on efforts that began under President Bush, the Obama administration took a number of steps to keep the mortgage market operating after the real estate market crashed, including providing unlimited financial support to mortgage-finance giants Fannie Mae and Freddie Mac and buying $225 billion in securities backed by mortgage loans. March 20, 2012
Former CFO at Taylor Bean to enter guilty plea, will be 8th convicted in $3B mortgage schemeThe former chief financial officer at a now-bankrupt mortgage company is expected to plead guilty to federal charges as part of a $3 billion fraud scheme. A plea hearing is scheduled Tuesday at federal court in Alexandria for Delton de Armas, who was a top executive at Florida-based Taylor Bean and Whitaker. March 20, 2012
A Preliminary Guide to the National Mortgage SettlementMore than a month ago, the federal government and 49 states announced a $25 billion settlement with the five biggest mortgage servicers to provide help to borrowers who lost their home in a foreclosure or who are having trouble making their mortgage payments. Many details of the settlement are still being worked out. But the Center for Responsible Lending, a nonprofit group that advocates for borrowers, has published a summary and a preliminary guidebook to help consumers figure out if they may be eligible for help under the settlement. March 20, 2012
Baltimore: Thousands of city properties in danger of going to tax sale — here’s which onesHaven’t paid your city property taxes? Then you’re on the city’s list of owners whose properties could end up in tax sale this May, along with nearly 27,000 others who (as of last week) were behind on taxes, water bills or other city tabs. That’s more than 10 percent of city properties, located in neighborhoods as varied as Poppleton and the Inner Harbor. If previous years are any judge, many owners will pay up quickly and avoid tax sale altogether. March 20, 2012
February housing starts fell as construction permits jumpedU.S. housing starts fell in February, but permits for future construction jumped to their highest level since October 2008, according to a government report on Tuesday that showed steady improvement in the housing market. The Commerce Department said housing starts slipped 1.1 percent to a seasonally adjusted annual rate of 698,000 units. January’s starts were revised up to a 706,000-unit pace from a previously reported 699,000 unit rate. March 20, 2012
Federally backed 203K home mortgage covers repair costs of fixer-upper homesWhen Brian and Traci Montpas bought their bank-owned house in Flushing last spring, it had been vacant more than a year. Flooring and copper plumbing had been stolen; the drywall was punched full of holes, and animal feces soaked the subfloors. But the money to repair this mess — $68,000 over the cost of the house — was not a problem for them. It was built right into the home loan — a 203K mortgage. March 20, 2012
Maryland bill would help congregations in fight over control of church assetsEach day for months now, the Rev. Douglas B. Sands and several of his 32 members at the historic White Rock Church in Carroll County have gathered to pray, plan and plot their next move. Their mission is to guard their 143-year-old church from seizure by the Baltimore-Washington Conference of the United Methodist Church, the presiding body for the District and parts of Maryland and West Virginia. March 19, 2012
HUD AWARDS NEARLY $3.8 MILLION TO 20 PUBLIC HOUSING AGENCIES TO SUPPORT EMERGENCY, SAFETY AND SECURITY NEEDS IN PUBLIC HOUSINGThe U.S. Department of Housing and Urban Development today awarded nearly $3.8 million to 20 public housing authorities to address emergency, safety and security needs at their properties, including measures necessary to fight crime and drug activity. See attached chart for local impact of this funding. March 19, 2012
Reverse mortgages can be beneficial, if you know how to use themAs the country’s home-owning population ages and baby boomers hit their mid 60s, it is time to take another look at the once-popular mortgage product known as the reverse mortgage. In a reverse mortgage, the bank loans you cash in a lump sum, in monthly installments, a line of credit or some combination of all three. Unlike a typical mortgage, the bank pays you and so long as you are alive and continue to live in your home, you do not have to repay the bank. The bank gets repaid solely from the sale or refinancing of your home when you sell your home, move out or die. March 19, 2012
Ask the Lawyer: Should I buy property if I’m still renting?My fiance and I rent a one-bedroom in a co-op in southwest DC. We’ve noticed that the studio and one-bedroom units in our building are selling for pretty low prices — some for $150,000 or less. Our lease doesn’t end until summer 2013, but we’d hate to miss out on a good investment. Is it a good idea to buy property while still renting? March 19, 2012
Check the fine print on FHA refinancingsThe Obama administration’s new plan to stimulate refinancings of Federal Housing Administration mortgages is likely to help large numbers of homeowners cut their monthly costs — even those who are deeply underwater. But it’s also likely to be a disappointment to many borrowers who aren’t aware of the program’s fine print and end up missing an opportunity to switch into a loan with a rate below 4 percent. March 19, 2012
Banks’ loan changes will vary under mortgage settlementNot all distressed home loan borrowers will benefit equally from the $25 billion national mortgage settlement filed in federal court last week. Part of the settlement requires the five leading mortgage servicers to forgive at least $10 billion in principal that homeowners owe on mortgages. That will help underwater borrowers who owe more on their mortgages than their homes are worth. But the level of principal reduction they get may well depend on who owns their loan. March 19, 2012
Is using a home equity loan to pay off mortgage a good idea?Q: My bank suggests that I take out a home equity loan for about 2% and pay off my mortgage, which has a rate of 5.6%. It sounds too good to be true. What are the pros and cons? March 19, 2012
Path for a Housing-Aid Plan Runs Through a Tangle of Competing InterestsMayor Edwin M. Lee, who made affordable housing a key issue in his election campaign last fall, convened a series of meetings beginning in January to devise a plan for replacing tens of millions of dollars in housing subsidies that the city lost when Gov. Jerry Brown dissolved redevelopment agencies across the state last year. For Mr. Lee, this issue is personal; he got his start in public life as a legal advocate for immigrant renters. March 19, 2012
Mortgages for Drilling Properties May Face HurdleThe Department of Agriculture is considering requiring an extensive environmental review before issuing mortgages to people who have leased their land for oil and gas drilling. Last year more than 140,000 families, many of them with low incomes and living in rural areas, received roughly $18 billion in loans or loan guarantees from the department under the Rural Housing Service program. Much of the money went to residents in states that have seen the biggest growth in drilling in recent years, including Pennsylvania, Texas and Louisiana. March 19, 2012
Of Jobs, Loans and TimingIF searching for a new job and refinancing a home are both on the agenda, you might be wondering which task you should finish first. Mortgage experts generally recommend that homeowners complete their refinancing before making any major career changes, especially if they are planning to start their own business or become an independent contractor, in which case income may fluctuate. March 19, 2012
More seniors use reverse mortgages to raise cashFinding themselves financially strapped, more seniors at an earlier age are trying to get reverse mortgages on their homes in order to survive, according to a new report. The study says the percentage of people aged 62 to 64 applying for reverse mortgages has increased 15 percent since 1999. The reason for the dramatic upswing among “younger” seniors is simple, the report concludes: They need the money. “The average age for taking out reverse mortgages has been around 71,” explains Sandy Timmerman, director of the MetLife Market Institute who conducted the survey with the National Council on Aging. March 19, 2012
HUD OFFERS $25 MILLION TO CONVERT MULTIFAMILY APARTMENT BUILDINGS INTO ASSISTED LIVING FACILITIESThe U.S. Department of Housing and Urban Development today announced the availability of up to $25 million to help convert multifamily apartment complexes into assisted living facilities or service-enriched housing for low-income senior citizens. The funding offered through HUD’s Assisted Living Conversion Program will provide grants for the physical conversion of eligible multifamily assisted housing projects (or portions of projects) to assisted living facilities or service-enriched housing. March 15, 2012
Lured by Visions of Real Estate Profits, Nonprofit Group StumbledThe group, the Community Preservation Corporation, which for decades has played a pivotal role in reviving downtrodden neighborhoods across New York City, has teetered at the brink of collapse in recent months after it strayed far from its traditional mission. Community Preservation, established in 1974 at the initiative of the banker David Rockefeller, had long used capital that it raised from scores of commercial banks to finance the creation or rehabilitation of rent-regulated, multifamily apartments for the poor and working class. But during the boom, it was instead pouring hundreds of millions of dollars into condo projects and a large-scale development. March 15, 2012
SEC charges 3 top Thornburg executives with fraudFederal regulators have charged three executives of what was once the nation’s second-largest mortgage company with civil accounting fraud. The Securities and Exchange Commission said the now-defunct Thornburg Mortgage aimed to conceal disastrous conditions as the housing market collapsed and the financial crisis loomed. The SEC said the three executives conspired to overstate Thornburg’s income by more than $400 million in 2007. March 14, 2012
Are you facing foreclosure? Contact usAre you a District homeowner facing foreclosure? Have you tried to take advantage of the 2010 mediation law? Have you been affected by the slowdown in foreclosures? March 14, 2012
Supervisors directed banks’ mortgage misconduct, HUD report saysEmployees at major banks who churned out fraudulent foreclosure documents, forged signatures, made up fake job titles and falsely notarized paperwork often did so at the behest of their superiors, according to a federal investigation released Tuesday. It’s well documented that the nation’s biggest banks routinely “robo-signed” legal papers to keep up with the wave of foreclosures brought on by the housing bust. March 14, 2012
Rising Sea Levels Seen as Threat to Coastal U.S.About 3.7 million Americans live within a few feet of high tide and risk being hit by more frequent coastal flooding in coming decades because of the sea level rise caused by global warming, according to new research. If the pace of the rise accelerates as much as expected, researchers found, coastal flooding at levels that were once exceedingly rare could become an every-few-years occurrence by the middle of this century. March 14, 2012
New Solar Panels Blossomed Despite a Tough Year for the IndustryLast year seemed like a dark one for the solar industry: stiff competition from China drove American manufacturers to layoffs and even bankruptcy, while the low price of natural gas and the loss of a critical government subsidy weakened incentives for new solar developments. And then there was the long shadow of Solyndra, whose bankruptcy after receiving federal loans cast a pall over other green-energy endeavors. March 14, 2012
5 states drowning in underwater mortgagesAs home prices continue to slide, more and more homeowners find themselves owing more on their homes than those houses are worth. The slowing level of foreclosure activity last year only exacerbated the problem, leaving more homes in trouble on the market. Last week, Corelogic reported that the number of underwater mortgages as a percentage of all mortgaged homes rose in the fourth quarter of 2011 to its highest level since 2009, the first year the property analytics provider began reporting the data. March 14, 2012
Gov. Rick Snyder’s Detroit plan puts board in chargeDetroit Mayor Dave Bing was shocked when he first saw what Gov. Rick Snyder was proposing: a rescue plan that would strip Bing and the City Council of much of their power and put a financial advisory board in charge of the city’s future. To Bing, the governor’s proposed consent agreement, unveiled Tuesday, looked more like a takeover than a joint effort to solve the city’s financial perils. March 14, 2012
Property tax collections to start downward trendCities, counties and school districts today collect 20% more in property taxes than they did in 2006, when home values were one-third higher than now, but the tax tide is slowly starting to recede.Last year, property tax collections rose just 1.2% — and actually declined 0.9% when adjusted for inflation, according to data from the federal Bureau of Economic Analysis. That’s the first time property tax collections have fallen below the inflation rate since 1995 and only the third time in 40 years. March 13, 2012
Foreclosure sales ramp up post robo signingDespite huge delays in foreclosure processing last year, following the so-called “robo-signing” paperwork scandal, sales of foreclosed properties still managed to account for nearly one in four home sales in the fourth quarter of 2011, up from one in five in the previous quarter. In all of 2011, just over 907,000 homes in the foreclosure process or repossessed by lenders were sold to third parties, according to a new report by RealtyTrac. March 13, 2012
Despite economic thaw, many stuck in negative equity trapAs home sales begin a slow recovery and potential buyers dip their toes back in real estate’s still-troubled waters, many of them face a huge barrier to entry: Negative equity, that is, borrowers who owe more on their mortgages than their homes are currently worth. At the end of the fourth quarter of 2011, 1.1 million, or 22.8%, of all residential properties with a mortgage were in negative equity, according to a new report from CoreLogic. March 13, 2012
Streetscape work makes Adams Morgan an obstacle courseFor a year, work on the streets of Adams Morgan has made the neighborhood an obstacle course of Jersey barriers, orange pylons and yellow caution tape. Workers are in the final phase of the $6.5 million project, which officials hope will be finished by early summer. City officials said once complete, it will make Adams Morgan a greener, more pedestrian-friendly community. But getting through the months of construction has been painful, many neighborhood merchants said. Business is down. March 13, 2012
Bank Officials Cited in Churn of ForeclosuresManagers at major banks ignored widespread errors in the foreclosure process, in some cases instructing employees to adopt make-believe titles and speed documents through the system despite internal objections, according to a wide-ranging review by federal investigators. The banks have largely focused the blame for mistakes on low-level employees, attributing many of the problems to the surge in the volume of foreclosures after the housing market collapsed and the economy weakened in 2008. March 13, 2012
Average rate on 30-year mortgage dips to 3.88%Fixed mortgage remain a bargain at the start of the spring-buying season: The average rate on the 30-year mortgage dipped this week, while the 15-year loan fell to a new record low. Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan ticked down to 3.88%, from 3.90% the previous week. That’s slightly above the 3.87% average rate hit three weeks ago, which was the lowest since long-term mortgages began in the 1950s. March 9, 2012
Added wealth at end of 2011 a sign of rising confidenceAmericans are climbing further out of the hole they sank into during the Great Recession. A stock rally at the end of 2011 helped rebuild more of their lost wealth — a trend that carried into 2012. Households responded by borrowing more for the first time since the financial crisis began, even as home values fell further. March 9, 2012
HUD LAUNCHES “KNOW IT. AVOID IT. REPORT IT.” MORTGAGE SCAM PREVENTION CONSUMER AWARENESS CAMPAIGN IN ATLANTAThe U.S. Department of Housing and Urban Development (HUD) today announced the second phase of the Know It. Avoid It. Report It. consumer awareness campaign in Atlanta. The campaign, launched during National Consumer Protection Week, March 4 — 10, is designed to educate consumers on loan modification and foreclosure scams and encourage them to take action. March 9, 2012
HUD AWARDS $23 MILLION TO TEST NEW ENERGY-SAVING APPROACHES IN OLDER MULTI-FAMILY HOUSING DEVELOPMENTSAll across the country, owners of aging apartment complexes are looking for ways to reduce their energy consumption and save money. In order to test new and innovative ways to cut energy bills and to finance energy efficiency upgrades in existing multi-family residential properties, the U.S. Department of Housing and Urban Development (HUD) today awarded nearly $23 million to a dozen organizations on the cutting edge of bringing energy-saving solutions to the housing market. March 9, 2012
HUD SEEKS PUBLIC COMMENT ON RENTAL ASSISTANCE DEMONSTRATIONBefore implementing a new comprehensive tool to preserve public housing and other federally assisted housing, the U.S. Department of Housing and Urban Development (HUD) is seeking public comment beginning today on the Rental Assistance Demonstration (RAD). See Federal Register Notice. In addition to the Federal Register notice, HUD has posted guidance — PIH Notice 2012-18 (HA) — with proposed details for RAD’s implementation. March 9, 2012
Obama unveils new foreclosure measures to resuscitate housing marketPresident Obama has begun embracing housing policies that administration officials earlier thought unwise or unworkable as he embarks on his most aggressive push to address the nation’s foreclosure crisis and depressed real estate market since the first months of his tenure. Obama has unveiled more than half a dozen plans in recent months to help millions more Americans refinance their mortgages at low rates, to reduce the debts owed by struggling homeowners and to expand existing programs to broaden the pool of borrowers eligible for government aid. March 9, 2012
How accurate is your Zestimate?Zillow bases these mysterious numbers on an algorithm that takes information from public records and weighs each piece of data based on current market trends in your area. The numbers are recalculated at least three times a week, and you can even view a chart of your home’s Zestimate history (and how it compares to the average Zestimates in your zip code) for the past 10 years. Looking up your home’s Zestimate can either make you feel proud or angry. March 9, 2012
Bank of America Reaches Deal on HousingBank of America will provide deeper-than-anticipated principal reductions for about 200,000 homeowners under newly-disclosed terms of last month’s foreclosure settlement with state and federal authorities. The cuts for homeowners who owe more than their homes are worth could total more than $100,000 each under the deal with the government, according to Dan Frahm, a spokesman for Bank of America. Bank of America hopes it will be able to reduce what it owes in penalties under the settlement by up to $850 million. March 9, 2012
Foreclosures will probably rise in 2012 — and that could be a good signThere are too many vacant houses and not enough people who want to buy them. And that’s a reality that’s likely to get worse before it gets better: The number of foreclosures is expected to rise significantly in 2012, adding to a housing overhang that has depressed prices and held back the recovery. But some of these new defaults may be necessary medicine for the housing market to recover in the long term: They represent homes that have been backlogged in the courts and elsewhere that can’t be sold until they finish going through legal foreclosure proceedings. March 8, 2012
Washington area home prices: A tale of two statesIf you look at the latest housing data, the Washington area housing market has been performing better than any other market in the nation. But that doesn’t tell the whole story. The recovery is uneven across the region, and home prices aren’t going up everywhere. In general, home prices in the District of Columbia have been up in the last 18 months and remain fairly strong. In some District neighborhoods, prices are back to peak levels. March 8, 2012
How Good Is the Housing News?The housing market has shown signs of life recently. Home sales have beat expectations and pending sales neared a two-year high. But prices — the crucial measure of housing-market health — are still falling, driven down by increasing levels of distressed sales of foreclosed properties. That means the market, and the broader economy, which derives much of its strength from housing, are not out of the woods — not by a long shot. March 8, 2012
International Interest Grows in Green-Building CertificationLast month, the new U.S. Embassy compound in Madagascar, which includes high-efficiency windows and low-flow toilets, received certification as a green building. Taipei 101, one of the world’s tallest skyscrapers, also earned a green stamp of approval recently, as did the Seoul Finance Center in South Korea. As companies and governments look to burnish their environmental credentials around the world, many are devoting extra time and money to certifying their buildings as green. March 8, 2012
Mayor of Ailing Detroit Resists Outside TakeoverWith a team of experts preparing to recommend by the end of this month whether the state of Michigan should appoint an outside emergency manager to take over the dire finances of the city of Detroit, Mayor Dave Bing made a case on Wednesday night for letting the city fix itself. March 8, 2012
Government report on Freddie Mac filled with redactionsA simmering debate on Capitol Hill over how to help more than six million Americans struggling to save their home from foreclosure took a strange twist Wednesday. The inspector general charged with detecting “fraud, waste and abuse” in government-controlled mortgage giant Freddie Mac issued a performance audit that was compromised by heavy redactions in key sections. March 8, 2012
Shiller: Economist who foresaw bubbles still likes stocksHe predicted the tech-stock collapse. He foresaw the housing bust. So naturally, everyone wants to know what Robert Shiller thinks of today’s stock prices, now perched at a four-year high. Or about the direction of home prices. Keep your hopes in check. Shiller is disinclined these days to offer specific predictions about the direction of stocks, home prices or any other asset whose prices can surge or plunge before we can fully grasp what’s going on. March 7, 2012
Obama unveils housing initiatives for military, FHA familiesPresident Obama on Tuesday unveiled two housing initiatives intended to assist members of the military and Americans with government-insured loans. In his first major news conference of 2012, Obama announced a new plan to cut refinancing fees for any loan insured by the Federal Housing Administration (FHA). The president also outlined a new agreement with banks to review foreclosures for members of the military that have taken place since 2006 and provide compensation to anyone who wrongfully lost a home. March 7, 2012
HUD DISCRIMINATION CHARGE AGAINST PENNSYLVANIA LANDLORD RESULTS IN $15,000 SETTLEMENTThe U.S. Department of Housing and Urban Development announced today that the owner of Breckenridge Plaza Apartment complex in Phoenixville, PA, has agreed to pay $15,000 as part of a consent decree in federal district court to settle claims that the development’s on-site manager, Morris Zelikovsky, discriminated against families with children. In August 2011, HUD charged the owner and manager of Breckenridge with charging families higher rent when they have children and indicating a preference against families with children. March 7, 2012
FHA ANNOUNCES PRICE CUTS TO ENCOURAGE STREAMLINE REFINANCINGToday, Acting Federal Housing (FHA) Commissioner Carol Galante announced significant price cuts to FHA’s Streamline Refinance Program that could benefit millions of borrowers whose mortgages are currently insured by FHA. Beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers. March 7, 2012
HUD KICKS OFF SERIES OF CONSULTATIONS WITH NATIVE AMERICAN LEADERSToday, the U.S. Department of Housing and Urban Development (HUD) kicked off a series of consultations with tribal leaders in preparation for HUD’s forthcoming study on the chronic housing needs in Indian Country, “Assessment of Native American, Alaska Native, and Native Hawaiian Housing Needs.” During these consultations, tribal leaders will have an opportunity to comment on the scope and design of the pending study. HUD will hold six regional meetings and two national meetings, the first of which in Washington, DC. March 7, 2012
Newark Project Aims to Link Living and LearningWork has begun on an education-centered community featuring three charter schools and affordable housing for teachers in the city’s decayed downtown, with much of the design work done by the noted architect Richard Meier. The development, called Teachers Village, is expected to cost $149 million when it is completed two years from now. It will consist of eight low-rise buildings clustered around the intersection of William and Halsey Streets, in Newark’s Four Corners historic district. As such, Mr. Meier has designed buildings to reflect the historical nature of the area. March 7, 2012
Cities where rent takes the biggest bite out of your salaryMany factors can make a housing rental market difficult to negotiate, such as tight supply and fierce competition for the most desirable properties. But chief among potentially problematic rental factors is the cost. To get an indication of how stretched renters are in each market, the data team at John Burns Real Estate Consulting looked at the rent-to-income ratios in 40 major U.S. cities. The resulting list is particularly heavy with representatives from one state. And while it might not be the argument-ender on where it’s the most difficult to find a rental, it can speak to the costliness of these 10 markets. March 7, 2012
Fewer homes for sale as discouraged owners sit on the sidelinesJason Berkowitz wants to sell his family’s townhouse and get a place nearby with more room, but there’s a lot less on offer than you’d expect in a buyer’s market. The number of homes for sale in Berkowitz’s Lutherville-Timonium ZIP code is down to levels not seen for five years, just before the financial crisis hit. New listings — the homes that just came on the market in January — are especially low for this time of year. March 7, 2012
Florida lawmakers consider accelerating foreclosuresLawmakers in Florida are considering measures this week to accelerate foreclosures in the state, one of the hardest hit by the mortgage crisis, underscoring the tug of war over how to spur a housing recovery while protecting the rights of struggling homeowners. It takes roughly two years to push a foreclosure through Florida’s clogged court system. In a state with a backlog of 368,000 cases and a quarter of the country’s foreclosures, that means a housing crisis with no end in sight. March 6, 2012
OBAMA ADMINISTRATION RELEASES FEBRUARY HOUSING SCORECARDThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the February edition of the Obama Administration’s Housing Scorecard — a comprehensive report on the nation’s housing market. Data continues to show signs that the housing market is strengthening, although the recovery remains fragile. The supply of new and existing homes on the market continued to decline last month. However, home prices dipped again as seasonal lows continued for the fourth month in a row. March 5, 2012
As home prices fall further, is it time to buy?House prices will continue to fall on a national basis at least through 2012, but you have to look past national headlines to your local market, which is likely already recovering nicely. The trouble with the national numbers is that they are heavily weighted toward the lower end of the market and to the distressed end of the market. Around 73% of homes that sold in January were priced below $250,000, according to the National Association of Realtors. March 5, 2012
A million-dollar mortgage goes unpaid for years while couple fights foreclosureThe eviction from their million-dollar home could come at any moment. Keith and Janet Ritter have been bracing for it — and battling against it — almost from the moment they moved into the five-bedroom, 4,900-square-foot manse along the Potomac River in Fort Washington. In five years, they have never made a mortgage payment, a fact that amazes even the most seasoned veterans of the foreclosure crisis. The Ritters have kept the sheriff at bay by repeatedly filing for bankruptcy and by exploiting changes in Maryland’s laws designed to help delinquent homeowners avoid foreclosure. March 5, 2012
Companies Foreclose; Blight FollowsEvery few weeks, Alvin Chandra cleans up the garbage that has accumulated in the vacant lot next to his granite fabrication plant on Adeline Street in West Oakland — soiled mattresses, worn-out sofa beds and piles of used fast food containers. The trash-strewn lot is owned by Fannie Mae. The government-controlled mortgage company acquired the property after a foreclosure on the previous owner last June. With the housing bust and continued recession, Fannie Mae, and its counterpart Freddie Mac, have quietly become major residential landowners in the Bay Area’s hardest-hit neighborhoods. March 5, 2012
Lenders increasingly allow the foreclosed to stayForced by the harsh realities of the real estate market, lenders are increasingly likely to allow defaulting owners to remain in their homes — a change in attitude and strategy that is helping to buoy some neighborhoods while further slowing the nation’s foreclosure process. Some lenders are now willing to make deals with owners to let them stay after defaulting, offering to pay home insurance, for example, while the resident pays for utilities. March 5, 2012
Demand surging for re-fis under gov’t help programDemand is surging for mortgage refinancings under a revamped government program for homeowners with little or no home equity. The Home Affordable Refinance Program, dubbed HARP 2.0, is expected to help more than 1 million borrowers to refinance at today’s low interest rates even if falling home values have left them owing more on their loans than the homes are worth. Changes to extend HARP’s reach were announced in October, and lenders launched their revamped programs in recent months. To be eligible, HARP applicants must have loans owned or guaranteed by Freddie Mac or Fannie Mae, have less than 20% equity and be current on payments. March 2, 2012
30-year mortgage average rate dips to 3.9%The average rate on the 30-year mortgage edged down this week to hover again above record lows. Cheaper rates have spurred modest improvements in the battered housing market, but not enough to signal a recovery. Mortgage buyer Freddie Mac says the rate on the 30-year home loan fell to 3.9% from 3.95% the previous week. That’s slightly above the 3.87% average rate hit two weeks ago, which was the lowest since long-term mortgages began in the 1950s. March 2, 2012
Bank-owned homes and short sales were 23% of all 2011 salesBank-owned homes and short sales last year accounted for the smallest slice of overall sales in three years but still made up nearly a quarter of all U.S. homes sold in 2011. Some 907,138 sales were made last year of foreclosed-upon homes and others that were in some stage of the process. They represented about 23% of all home sales in 2011, foreclosure listing firm RealtyTrac Inc. said Thursday. March 2, 2012
What’s going on with…the big hole in the middle of Takoma?The D.C. neighborhood of Takoma, just across the state line from the Maryland neighborhood of Takoma Park, has a hole in the ground. A big hole. A hole that collects water when it rains and which is surrounded by less-than-welcoming chain link fences, plainly visible to everyone who passes along Carroll Street Northwest, the area’s main drag. So…what’s going on with the hole in the middle of Takoma? Longtime Takoma residents may recall that the site, at the corner of Carroll and Maple streets Northwest, was once home to a gas station and truck rental facilities. March 2, 2012
A Hidden Fee Is Set to RiseINSIDE the interest rate quoted on your home mortgage lies a small hidden fee that has been charged by government-sponsored entities like Fannie Mae and Freddie Mac for more than three decades. It’s an add-on rate known as the guarantee fee. An increase in the fee has been mandated by Congress to occur this spring, and other increases are likely later this year and next. When they happen, interest rates on single-family mortgages resold to Fannie Mae or Freddie Mac are likely to inch up as well. March 2, 2012
Investors buying homes by the dozenWhen Vena Jones-Cox entered the foyer of the once-grand Colonial-style home in downtown Columbus, Ohio, she stepped onto a wood floor that was so moldy and mushy that it actually wiggled. As Cox proceeded down the basement stairs, they disappeared from underneath her. “I found myself lying on the floor,” says Jones-Cox, 45. “Staring at a dead rat, by the way.” The house tour from hell didn’t stop her from making an offer on the place. While she was at it, she bid on some other houses, too. Forty nine houses, actually. March 2, 2012
States with the most miserable housing marketsHome prices fell in December to the lowest levels since the housing crisis began in mid-2006, according to the Standard & Poor’s Case-Shiller Home Price Index. While other housing statistics certainly suggest that a recovery may be underway, home prices and foreclosures continue to point to a struggling market. Trulia, an online real estate search and marketing site, recently published its Housing Misery Index. The index ranks each state’s housing market by the change in home price and the rate of delinquencies and foreclosures. Looking at housing and economic data from a number of sources, 24/7 Wall St.’s analysis of Trulia’s index finds that the states with worst scores suffer from many of the same problems. March 2, 2012
Neighborhood Profile: Barney CirclePerched at the southeastern edge of Capitol Hill, Barney Circle is a small, triangular neighborhood. Potomac and Kentucky Avenues serve as its western boundaries, and 17th Street and the adjacent Congressional Cemetery mark its eastern border. The area began developing in 1901, the result of a trolley line extension down Pennsylvania Avenue; the traffic circle served as its terminus and turn-around point. March 1, 2012
Projects to Add Wind Power for City Gain MomentumDespite Mayor Michael R. Bloomberg’s long-expressed dream of putting wind turbines on skyscrapers and bridges, the constraints of an urban landscape have so far proved too challenging for reliable wind power in the city, energy experts said. As a result, New York City has been largely inactive — and behind the national curve — in embracing wind power. March 1, 2012
Wells Fargo, Goldman face SEC scrutiny on mortgage dealsWells Fargo and Goldman Sachs Group said Tuesday they may face federal enforcement action by the Securities and Exchange Commission related to mortgage-backed securities. San Francisco-based Wells Fargo and New York-based Goldman said in regulatory filings that they had received Wells notices from the SEC. The notices generally indicate that the SEC plans to bring charges or take other enforcement action against a company. The notice is not required but provides a company with the chance to argue why the action shouldn’t be taken. February 29, 2012
Case-Shiller report: Home prices ended lower in 2011Home prices fell sharply at the end of last year and the likelihood of a turnaround this year looks grim. Prices were down 4% in the fourth quarter from the same period in 2010, according to the Standard & Poor’s Case-Shiller national home price index released Tuesday. Prices are nearly 34% below their peak in 2006’s second quarter, rolling back average home prices to 2002 levels, the index shows.What’s more, home prices fell in December from November in 18 of 20 leading cities, according to another Case-Shiller index. February 29, 2012
HUD CHARGES BANK OF AMERICA WITH DISCRIMINATING AGAINST HOMEBUYERS WITH DISABILITIESThe U.S. Department of Housing and Urban Development (HUD) today announced that it is charging Bank of America with discriminating against homebuyers with disabilities. HUD alleges that Bank of America imposed unnecessary and burdensome requirements on borrowers who relied on disability income to qualify for their home loans and required some disabled borrowers to provide physician statements to qualify for home mortgage loans. February 28, 2012
FHA TAKES ADDITIONAL STEPS TO BOLSTER CAPITAL RESERVESAs part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante today announced a new premium structure for FHA-insured single family mortgage loans. FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent. February 28, 2012
MANHATTAN U.S. ATTORNEY SUES FLAGSTAR BANK FOR FRAUDULENT MORTGAGE LENDING PRACTICES AND SETTLES FOR $132.8 MILLION AND OTHER COPreet Bharara, the United States Attorney for the Southern District of New York, Helen Kanovsky, General Counsel of the U.S. Department of Housing and Urban Development (“HUD”), and David A. Montoya, the Inspector General of HUD, announced today that the United States has filed, and simultaneously settled, a civil fraud lawsuit against FLAGSTAR BANK, F.S.B. (“FLAGSTAR”), one of the nation’s largest savings banks and originators of mortgage loans, for improperly approving residential home mortgage loans for government insurance. February 28, 2012
US government moves to convert home foreclosures in hardest-hit metro areas to rentalsThe government is looking to sell off some of its stock of homes in foreclosure. The Federal Housing Finance Agency has control over roughly 250,000 foreclosed homes owned by Fannie Mae. One percent of those homes, or 2,500, will be available for investors to buy and convert into rentals. Officials say the foreclosure-to-rental program can help reduce credit losses and stabilize home values. Homes in foreclosure sell at a 20 percent discount on average, which can hurt surrounding home values. February 28, 2012
Occupy protesters engage in other waysWhile Occupy D.C. protesters struggled to recover after their encampments were cleared in high-profile raids early this month, Prince George’s resident Bertina Jones was fighting an eviction of her own. On Monday, an hour after Occupy D.C. organized a noisy rally on Jones’s behalf in front of Freddie Mac’s offices on Seventh Street NW, a spokesman for the government-backed mortgage giant said the company was working toward a “positive resolution” that would allow her to keep her home. Brad German, a spokesman for Freddie Mac, said that the company decided to work with Jones because of the merits of her case and that the rally had little effect on the decision. February 28, 2012
Signs of upturn in Phoenix’s long-suffering housing marketThe Phoenix housing market is showing signs of improvement, even generating bidding wars among buyers for lower-priced homes. The area was one of the hardest hit by the foreclosure crisis. Prices had fallen 57% from their peak. Interest rates were near record lows. Now, “We list a property and, within two or three days, we have multiple offers,” says Keith Krone of Keller Williams Realty in a Phoenix suburb. February 28, 2012
‘Severely’ overburdened homeowners, rentersHow many people spend more than half their income on housing costs? More than you might think.In the Baltimore area, one in five households with workers pulling down middle-income or lower-income wages fell into that pinched group in 2010, according to a new report by the Center for Housing Policy. That’s nearly 85,000 households “severely burdened by their housing costs.” But it’s not quite as bad as the nation overall, with nearly one in four of what the center dubs “working households” falling into that category. February 28, 2012
Chicago’s Pullman District could become a national park siteA neighborhood that played key roles in the development of the African-American labor movement, the railroad industry and urban planning is the focus of efforts to create Illinois’ second national park site. Legislation pending in Congress would start the process of placing the Pullman District under National Park Service (NPS) control, ensuring that its historic structures and museums remain intact and attracting more visitors and economic development, advocates of the plan say. The Abraham Lincoln National Historic Site in Springfield is the state’s only NPS destination. February 27, 2012
New-home sales dip in January, but 2011 is revised higherSales of new homes dipped in January but the final quarter of 2011 was stronger than first estimated. The Commerce Department said Friday that new-home sales fell 0.9% last month to a seasonally adjusted annual rate of 321,000 homes. That followed four straight months of gains in which home sales rose 10%. The gains came after the government upwardly revised October, November and December’s figures. December’s annual sales pace of 324,000 was the highest in a year. February 27, 2012
Points Lose FavorWITH interest rates at or near record lows, many borrowers are seeing little reason to pay points when buying or refinancing a home. Some are even opting for what’s known as “negative points,” agreeing to a slightly higher rate to help pay closing costs. The trend away from points, which buy down the interest rate in exchange for an upfront fee, partly reflects borrower sentiment that rates are already low enough, the industry experts say. February 27, 2012
Rents Keep Rising, Even as Housing Prices FallThe housing market remains a potent drag on the economy as home prices continue to slip, foreclosed homes fill some neighborhoods and millions of construction workers scramble for jobs. But one group is sitting pretty: landlords. Unlike home prices, rents have been rising, up 2.4 percent in January from a year earlier, according to recent data, not adjusted for inflation, released by the Labor Department. February 27, 2012
Rate on 30-year mortgage rises to 3.95%The average rate on the 30-year fixed mortgage jumped after standing pat for three straight weeks at record lows. But the rate stayed below 4% for the 12th straight week, keeping home-buying and refinancing attractive for those who can qualify. Mortgage buyer Freddie Mac said Thursday the rate on the 30-year loan rose to 3.95%. That’s up from last week’s rate of 3.87%, the lowest since long-term mortgages began in the 1950s. February 24, 2012
Home sales rise, but prices will be slow to followSales of existing homes increased 4.3% in January from December to a seasonally adjusted annual rate of 4.57 million, the National Association of Realtors reported Wednesday. While still weak, that was the highest level in 20 months, the third gain in four months and a 0.7% increase over January 2011. A housing market turnaround “may finally be starting,” says Gus Faucher, senior economist at PNC Bank, noting that home builder confidence and new home construction are also up. February 24, 2012
HUD AND THE NATIONAL FAIR HOUSING ALLIANCE LAUNCH MEDIA CAMPAIGN TO FIGHT HOUSING DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) and the National Fair Housing Alliance(NFHA) announced today the launch of a new series of radio and print public service advertisements (PSAs). The advertisements are designed to teach individuals and families how to recognize and report discrimination in housing because of race, color, sex, religion, national origin, familial status and disability, including discrimination in mortgage lending because of issues related to pregnancy and/or parental leave. February 24, 2012
Finding a place to live after losing your homeIf you are in the unfortunate financial position where you are losing your home due to foreclosure or short sale, your credit score is probably going to take a pretty hard hit. In “normal times,” this could make it really tough to rent your next place of residence. Luckily, these are not “normal times” and most landlords are understanding of renters’ financial distress. (In fact, many landlords themselves may have experienced financial distress.) February 24, 2012
Fannie-Freddie regulator has sober plansIT HAS BEEN 42 months since the Bush administration placed Fannie Mae and Freddie Mac under the control of their regulator, the Federal Housing Finance Agency (FHFA), and began pouring in cash to cover the mortgage-finance giants’ mounting losses. This has enabled Fannie and Freddie to continue propping up a housing market that otherwise would have crashed: They currently back two-thirds of all mortgages made. Taxpayer cost: $180 billion. February 23, 2012
Farmland goes for a premium as commodity prices tick upIn the last five years, Lon Frahm has bought 4,000 acres of farmland, expanding the size of his wheat and corn operation to more than 30 square miles of western Kansas. He’s done so as farmland prices have roughly tripled in his swath of the Great Plains. But unlike some regulators and farmland investors, Frahm, 54, says he doesn’t believe the United States is in danger of a farmland price bust similar to the one that devastated the housing industry in the past decade — or that crippled agriculture 30 years ago. February 23, 2012
Renters face fewer vacancies, rising ratesAcross the country, as more people compete for apartments in the wake of the housing collapse, the market has swung in favor of landlords. For tenants, that means saying goodbye to move-in incentives and watching rents edge higher. About a quarter of all apartments nationwide offered some type of concession in last year’s fourth quarter. By comparison, 53% of apartments offered concessions in the first quarter of 2010, according to data tracker MPF Research’s latest report. February 23, 2012
City issuing $4.2 million in refunds for faulty water billsBaltimore’s Public Works Department is issuing more than $4.2 million in water bill refunds to 38,000 households in the city and Baltimore County after an audit showed the agency overcharged tens of thousands of customers. The audit, released Wednesday, found that some homes received only estimated water bills for years at a time while others received no bills. And while city water officials say they made $40 million in billing corrections in 2010 alone, the auditors were unable to locate paperwork to support that. February 23, 2012
A ‘responsible homeowner’ rewardAbout 20,000 homeowners nationwide, including 500 in Maryland, are enrolled in the Responsible Homeowner Reward program, which pays borrowers incentives to stay current on their mortgage. The homeowners were offered the future cash payments by their mortgage servicer, mortgage owner or private mortgage insurer — about a dozen companies are participating all told. Frank Pallotta, managing partner of the Rumson, N.J.-based Loan Value Group, which created and administers the Responsible Homeowner Reward program, says participants include the PMI Group and GMAC Mortgage. February 23, 2012
Older Arlingtonians with disabilities find a homeTwenty-five people with intellectual disabilities or mental illnesses are now living in the 52-unit center in the Fort Myer area of Arlington County. All are 55 or older, and that makes this new center unique in the nation. “Thirty years ago, this typical target audience didn’t age to that level,” said Mike King, president of Volunteers of America, the nonprofit group that is operating the center. With better medical care, many people with a variety of disabilities now live long lives, but the social service network has not caught up. February 22, 2012
My Renovation Saga: Demolition, and decoratingYou know how every time there’s a major winter storm, Old Town Alexandria starts sandbagging, and people worry about floods? Well, those of us a bit further west aren’t immune from floods either, which is why my home, like most of my neighbors’, has a sump pump. The good news: The pump is going to be very helpful when the crew constructs the new egress window. They can easily build a system that will allow water that to drain right into it. February 22, 2012
Legal Fees Mount at Fannie and FreddieTaxpayers have advanced almost $50 million in legal payments to defend former executives of Fannie Mae and Freddie Mac in the three years since the government rescued the giant mortgage companies, a regulatory analysis has found. In that time, $37 million has gone to three former Fannie Mae executives accused of securities fraud, according to the analysis by the inspector general of the Federal Housing Finance Agency, which oversees both companies. February 22, 2012
Courts to Hasten Efforts to Prevent ForeclosuresNew York State’s courts, frustrated by delays in thousands of foreclosure cases, are planning to speed them along in a new program that would give judges added control and require banks to send officials who have the power to alter loans to keep people in their homes. February 22, 2012
Foreclosure activity edges higher in JanuaryBanks took back more U.S. homes in January than in the previous month, the latest sign that foreclosures are accelerating after slowing sharply last year while lenders sorted out foreclosure-abuse claims. Foreclosures rose 8% nationally last month from December, but were down 15% from a year earlier, foreclosure listing firm RealtyTrac said Thursday. All told, 210,941 U.S. homes received a default notice, were scheduled for auction or were repossessed by a lender in January, RealtyTrac said. February 17, 2012
Rate on 30-year mortgage stays at record 3.87%The average rate on the 30-year fixed mortgage held steady at a record low for a third straight week, offering more incentive to those looking to buy a home or refinance. Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year home loan was unchanged at 3.87%. That’s the lowest level since long-term mortgages began in the 1950s. The average on the 15-year fixed mortgage was also unchanged at 3.16%. That’s up from a record low of 3.14% reached two weeks ago. February 17, 2012
$1 billion casino at National Harbor proposed by Prince George’s Executive BakerPrince George’s County Executive Rushern L. Baker III said Thursday that he wants to see a billion-dollar casino on the banks of the Potomac River, arguing that a “high-end” gaming destination at National Harbor would be a catalyst for economic development and generate much-needed tax revenue. The announcement, which carries considerable political risk for Baker (D), is certain to shake up a debate in Annapolis over legislation to expand Maryland’s gambling program — and add fuel to one in Prince George’s about what kind of development the county should embrace. February 17, 2012
Should I buy a condo with high renter occupancy rate?Q: I am relocating to Reston, and am thinking about buying a condominium in the Reston Town Center. All the units in the building are owned, but 46 percent are occupied by renters. Would this be a wise investment? February 17, 2012
FEDERAL GOVERNMENT SETTLES FRAUD LAWSUIT AGAINST CITIMORTGAGE, INC. FOR RECKLESS MORTGAGE LENDING PRACTICESPreet Bharara, the United States Attorney for the Southern District of New York, Helen Kanovsky, General Counsel of the U.S. Department of Housing and Urban Development (“HUD”), and David A. Montoya, the Inspector General of HUD, announced today that the United States has filed, and simultaneously settled, a civil fraud lawsuit against CITIMORTGAGE, INC. (“CITIMORTGAGE”), a subsidiary of CITIBANK, N.A. The Government’s Complaint seeks damages and civil penalties under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) for over six years of misconduct in connection with CITIMORTGAGE’s participation in the Federal Housing Administration (“FHA”) Direct Endorsement Lender Program. February 16, 2012
Supreme Court should take on New York City’s rent control lawsJames and Jeanne Harmon reside in and supposedly own a five-story brownstone on Manhattan’s Upper West Side, a building that has been in their family since 1949. But they have, so to speak, houseguests who have overstayed their welcome by, in cumulative years, more than a century. They are the tenants — the same tenants — who have been living in the three of the Harmons’ six apartments that are rent controlled. The Harmons want the Supreme Court to rule that their home has been effectively, and unconstitutionally, taken from them by notably foolish laws that advance no legitimate state interest. The court should. February 16, 2012
Wheaton development’s $40 million price tag sparks petitionBut despite its Red Line Metro station, Wheaton has not attracted a major mixed-use development that would make the area more walkable and lively. It’s best bet is a plan by Metro, Montgomery County officials and developer B.F. Saul Co. to transform the bus bay above the Wheaton Metro station and a county-owned parking lot into an urban town center featuring two towering office buildings and about 200 apartments as well as a hotel, shopping and a public square. February 16, 2012
Contractors hit, miss goals for Convention Center hotel construction hiringDating back to the construction of the Walter E. Washington Convention Center and continuing with the Nationals’ ballpark, District officials have struggled to ensure that District residents are hired for as much of the city’s construction work as possible. Today the city and its partners on the Marriott Marquis convention center headquarters hotel are releasing data on 12 months of construction, and from an initial look at the returns, the city is achieving some of its self-imposed goals but missing others. February 16, 2012
Audit Uncovers Extensive Flaws in ForeclosuresAn audit by San Francisco county officials of about 400 recent foreclosures there determined that almost all involved either legal violations or suspicious documentation, according to a report released Wednesday. Anecdotal evidence indicating foreclosure abuse has been plentiful since the mortgage boom turned to bust in 2008. But the detailed and comprehensive nature of the San Francisco findings suggest how pervasive foreclosure irregularities may be across the nation. February 16, 2012
Government extends deadline for foreclosure reviewsFederal banking regulators announced Wednesday that they’ll extend an April 30 deadline for consumers to request such reviews to July 31. Only 89,000 people have asked for reviews even though more than 4 million got letters from the government late last year telling them that they could, says Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency. February 16, 2012
More new homes conserve energyIn downtown Frederick, Md., blocks from a Starbucks and Barnes & Noble, four new duplexes nearing completion were sold with complimentary iPads to monitor energy use. For nearly the same price as other new homes, they have solar panels, geothermal wells and ultra-efficient, factory-made exterior walls. They’re designed to generate as much power as they use, along with thousands of dollars in renewable energy tax credits. “We think of ourselves as early adopters,” says Mike Muren, of Nexus EnergyHomes, which is building 55 zero-energy homes in the historic town. “Our homes go way beyond energy codes.” February 15, 2012
Mom and pop investors propping up home-buying marketChicagoans Linda and Debra Basili thought about becoming landlords years ago. But even two professional women’s combined salaries were no match for the Windy City’s high housing prices. Last year, they bought not one but two condominiums near downtown. They found renters within weeks, and the rent more than covers their costs. February 15, 2012
Raccoons in the attic? How to deal.I was having a leisurely soak in my Jacuzzi when I heard it. My ceiling was shaking, like someone jumping up and down on the air conditioning ducts running through my attic. Another earthquake perhaps? Then I heard plodding footsteps and I realized there was something big, alive and energetic a few feet above my head. Because I live in Crestwood, a D.C. neighborhood surrounded on three sides by Rock Creek Park, I’ve grown to expect some wildlife in the back yard, but not in the house! February 15, 2012
My Renovation Saga: To Permit or not To Permit?To permit or not to permit: there’s really no question. A colleague of mine said: “I feel like there’s a fine line between redecorating and remodeling,” and I think she’s right. There’s a lot you can do to your own home and suffer only aesthetic consequences. But once you start moving pipes, wires and windows, working without a permit could get you fined, or worse. February 15, 2012
Obama’s Wish List for EnergyThe Energy Department’s budget request for the fiscal year that begins on Oct. 1 sounds a familiar theme. “The United States is competing in a global race for the clean energy jobs of the future,” a cover letter from the federal energy secretary, Steven Chu, says. February 15, 2012
With Action by Judge, Details in a Yonkers Corruption Case EmergeIt was 2005, and Albert J. Pirro Jr., a noted man of influence in Westchester County, was working as a consultant for a major real estate developer that was seeking approval from the Yonkers City Council for a large luxury mixed-use development. His wife, Jeanine F. Pirro, was soon to begin a Senate campaign that she would later abandon; Mr. Pirro was several years removed from an 11-month stint in federal prison in a tax case, and he had been retained by the developer, Forest City Ratner, to help it obtain enough support from the City Council to win approval for the project, Ridge Hill. February 15, 2012
Mortgage relief: Houses turned into billboardsWhen they saw the house on El Dorado Drive in this Los Angeles suburb being painted a startling orange and green and giant billboards hung on the outside, Scott and Beth Hostetler’s neighbors were initially angry and confused. Some even considered calling the police. But what they witnessed on Friday was not an offensive redecoration decision by the Hostetlers, but rather the debut of one of the more unusual schemes to arise from the housing crisis. In return for allowing the front of their four-bedroom house to become a garish advertisement, the Hostetlers are getting their nearly $2,000 monthly mortgage paid by the marketing company behind the project, Brainiacs From Mars. February 15, 2012
O’Malley grilled on green agendaGov. Martin O’Malley fielded skeptical questions from lawmakers about three of his top environmental initiatives Tuesday as he appealed to them to approve bills aimed at promoting offshore wind energy, limiting development and improving water and sewer systems. O’Malley, a Democrat, ran into some of the day’s fiercest grilling at the Senate Finance Committee, where he took tough questions from senators about the cost, feasibility and employment potential of his wind energy bill. February 15, 2012
“Real Despair” Sweeps Through Greece as Severe Austerity Measures Demanded by E.U.-IMF Cripple NationGreece continues to face political turmoil over a sovereign debt crisis that has embroiled the country for almost two years. On Monday, the Greek government said it would hold new elections in the face of massive demonstrations against a new austerity package that was approved on Sunday in exchange for a European Union-International Monetary Fund bailout. February 15, 2012
Why housing demand defies real estate fundamentalsAnyone with any cash in hand should be buying a house right now. That’s what any real estate agent will tell you, obviously, but that’s also what many investors now believe. Unfortunately, the potential home-buying public … isn’t buying it. January’s consumer confidence report found a drop in the number of Americans who plan to buy a home in the next six months. If, however, you take out the confidence issue, the fundamentals for buying are strong: February 13, 2012
Bernanke: Weak housing to hurt consumer spending for yearsBen Bernanke says declines in home prices have forced many Americans to cut back sharply on spending and warns that the trend could continue to weigh on the economy for years. On Friday, during a speech to the National Association of Home Builders in Orlando, the Federal Reserve chairman drew the connection between home values and consumer spending, which fuels 70% of economic activity. February 13, 2012
Mortgage deal is broadest action taken in foreclosure crisisFor almost 1 million homeowners, the $25 billion federal-state mortgage settlement announced Thursday may be like winning a lottery. Their mortgage debt will be cut by thousands of dollars in the broadest effort yet to help borrowers struggling to make payments on homes that have plunged in value the past five years. Given that homeowners owe an estimated $700 billion more on their homes than they’re worth, much more will be needed to strike a serious blow at the foreclosure crisis, housing experts say. February 13, 2012
Questions and answers on the mortgage settlementAfter nearly a year of negotiations, federal and state officials and five major mortgage servicers have announced a $25 billion settlement over alleged past foreclosure and mortgage loan-servicing abuses. Here are answers to questions about the deal. February 13, 2012
50-State, $25B Mortgage Settlement: Relief for Struggling Homeowners or Bailout for Big Banks?While the deal is being described as a $25 billion settlement, the banks will only have to pay out a total of $5 billion in cash between them. We speak to one of the settlement’s most prominent critics, Yves Smith, a longtime financial analyst who runs the popular finance website, “Naked Capitalism.” “The settlement, on the surface, does look like it’s helping homeowners,” Smith says. “But, in fact, the bigger part that most people don’t recognize is the way it actually helps the banks with mortgages on their own books. February 13, 2012
Feds to help Prince George’s revamp its housing programsThe troubled Prince George’s County housing department, which was the center of former County Executive Jack B. Johnson’s bribery and development schemes, is about to get a makeover. The federal Department of Housing and Urban Development plans to send specialists to help Prince George’s do a better job of managing housing programs and other community revitalization efforts. The arrangement is part of what County Executive Rushern L. Baker III (D) has said will be an overhaul of the agency, which has a budget of $92 million. For years, the housing agency has been under fire for questionable practices and poor management that contributed to a loss of $2 million in unspent federal funds during the administration of Johnson (D). February 13, 2012
Loan Terms Made to OrderLOOKING for a mortgage that will retire when you do? Or maybe you want to time a refinancing so that the loan is paid up when the kids head off to college. There are a number of lenders that would be happy to oblige. Customized mortgages aren’t new. But industry experts say they are seeing more and more borrowers opt for fixed-rate loans with terms other than the standard 30 or 15 years, especially when it comes to refinancings. February 13, 2012
For Rentals, No Ceiling in SightWHEN the real estate market was booming in 2007, renters showed up at apartments with checkbook in hand, ready to do battle with anyone else who might want the same place. That changed, of course, when the financial crisis hit in 2008. And the heady days that followed, when renters ruled in a down market, are now a fading memory. February 13, 2012
What Homeowners Need NowUnder the new foreclosure settlement, the banks have six to nine months to determine who is eligible for relief and, in all, have three years to distribute the aid. Millions of struggling homeowners — and the still fragile economy — need more help right now. February 13, 2012
Newark, San Jose, Washington and more major cities where no one wants to moveMany Americans still are holding off on buying homes in some of the country’s most expensive cities. While home prices fell 23 percent on average in the largest cities since the housing crisis began, for many home buyers the drop was not enough. Based on a new report released by Trulia, 24/7 Wall St. identified the 10 metropolitan areas to which no one wants to move. February 13, 2012
FHA ANNOUNCES PILOT PROGRAM TO ACCELERATE FINANCING OF LOW-INCOME HOUSING TAX CREDIT PROJECTSThe Federal Housing Administration (FHA) today unveiled a new pilot program to test an accelerated approval process for the purchase or refinancing of multi-family rental properties assisted through the Low-Income Housing Tax Credit (LIHTC) Program. In launching this pilot program in Chicago, Detroit, Boston, and Los Angeles, FHA’s Office of Multifamily Housing Programs believes it can cut the time needed to review and approve financing applications for LIHTC-assisted transactions from approximately one year to just 90 — 120 days. The Hubs will process LIHTC loans for all of their related program centers. February 13, 2012
HUD AWARDS NEARLY $1.8 BILLION TO IMPROVE, PRESERVE NATION’S PUBLIC HOUSING STOCKU.S. Department of Housing and Urban Development Secretary Shaun Donovan awarded today nearly $1.8 billion to public housing authorities in all 50 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. The funds will allow these agencies to make major large-scale improvements to their public housing units. February 13, 2012
$25B mortgage settlement with banks is officialThe government has filed a $25 billion settlement with the five largest U.S. mortgage lenders in federal court, putting an official stamp on the landmark agreement announced last month over alleged foreclosure abuses. The court papers offered few new details on the deal between the federal government and 49 states and Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial. Oklahoma, which negotiated a separate deal with the banks, is not participating in the agreement. February 13, 2012
Foreclosure reviews to take longer than expectedReviews of hundreds of thousands of foreclosure cases ordered by regulators last year will take months longer to complete than first expected, according to documents filed with federal banking regulators. The delays could postpone compensation for some homeowners harmed by improper foreclosure actions. The reviews cover foreclosure actions in 2009 and 2010 by the nation’s 14 largest mortgage servicers, which handle payments for about 65% of U.S. mortgages. They are required by enforcement orders announced by federal regulators last April. January 13, 2012
Decline of affordable housing has many causesYou don’t have to be an economist to know that family income for the last three decades has accelerated at a much slower pace than the cost of housing, compounding the difficulty low- and moderate-income people face in seeking affordable housing. The situation means that people with low and moderate incomes must spend an ever greater portion of household income on rent. Don’t expect the problem to reverse anytime soon because many of the economic and political factors that made land and housing affordable no longer exist. January 13, 2012
Billionaire Paulson Persists With Rebounding Property: MortgagesMortgage securities are drawing buyers after tumbling last year and handing billionaire hedge fund manager John Paulson his first loss in the bond market. Paulson, who made $15 billion in 2007 betting against U.S. subprime mortgages, is sticking with bullish investments in residential and commercial mortgage securities, helping his Credit Opportunities Ltd. fund gain about 1 percent last quarter to narrow its 2011 decline to 18 percent. January 13, 2012
Uneasy Neighbors in a Southern Gothic TaleLast month, a state circuit judge in Greenwood, S.C., decided that Pastor Kennedy’s tiny New Beginning Missionary Baptist Church held the valid title to the old Echo Theater, whose lobby the Redneck Shop occupies. It was handed over fair and square years earlier by an acolyte of John Howard, the Klan leader who founded the shop. The building itself has racism in its mortar. It had been a segregated movie theater in a town named after an 18th-century slave trader, Henry Laurens. For years, black moviegoers had to use the side door and sit in the balcony. January 13, 2012
Much More Than Just ‘Maintenance’IN New York, the cost of a co-op or condo can seem an impossible hurdle. But alongside the asking price is another figure that can induce sticker shock: the monthly maintenance fee — or, as it’s called in condos, the common charge. The fee can range from a few hundred dollars a month, for a small condo, to many thousands for an exclusive co-op. And as millions of owners have discovered, it almost never goes down and rarely stays flat. Often, the increases happen yearly. January 13, 2012
Top property tax bills in Baltimore add up to big bucksProperty taxes on the 10 homes with the biggest bills, and the 10 commercial properties at the top of the heap, come to an eye-popping $20.7 million, according to a Baltimore Sun analysis. And city officials, forever trying to expand Baltimore’s tax base, say they’re very glad for the big payers. January 13, 2012
1.9 million 2011 foreclosures are fewest since 2007About 1.9 million homes entered the foreclosure process in 2011, fewest since 2007 when the recession began, according to a report Thursday by the foreclosure listing firm RealtyTrac. The firm cautioned that the decline does not necessarily indicate the housing market is getting better, as many foreclosures have been delayed due to confusion over documentation and legal issues involved in the process. January 12, 2012
Watchdog should act like a big brother (or sister) to protect consumers from bullyingExaminers will be looking at the nonbanks’ practices and products, focusing on what risks they pose to consumers. “We can see exactly what is going on in the institutions,” Cordray said. “We have the authority to get all the information we need, documents we need, and then take corrective action and work with the institutions. A supervision program can solve a lot of problems faster and in a more lasting way.” January 12, 2012
Unemployed Mortgage Holders Get Extension on PaymentsAlthough home foreclosure rates appear to be stabilizing and unemployment is slowly coming down, there are still millions of jobless borrowers who are at risk of losing their homes because they cannot afford their monthly payments. Freddie Mac and Fannie Mae, the government-sponsored housing finance companies that represent approximately half of all mortgages, have announced plans to extend their existing programs so that unemployed borrowers can defer part or all of their monthly payments for up to 12 months while they are out of work. January 12, 2012
MetLife to Close Mortgage UnitMetLife, the nation’s largest life insurer, announced Tuesday that it would close its home mortgage-origination operation, costing the company at least $90 million. Most of the 4,300 employees at the unit will lose their jobs. MetLife said in October that it was seeking a buyer for its mortgage unit after announcing plans to sell deposit-gathering operations to reduce federal oversight. The company reached a deal last month to sell about $7.5 billion of its bank’s deposits to General Electric. January 12, 2012
Financial Planning Calculators for Those with Special NeedsFamilies with children who have special needs or disabilities face even bigger hurdles than most people when it comes to planning for their financial futures. Merrill Lynch Wealth Management has introduced a free online special needs calculator to help parents and guardians get started in evaluating their situation. The tool factors in variables like the projected income, including any federal or state benefits, and expenses, like housing, transportation, special education and health care. January 12, 2012
Big Banks Face Inquiry Over Home InsuranceA New York State financial services agency is investigating several large banks to see whether they fraudulently steered homeowners into overpriced insurance policies. The investigation centers on so-called force-placed insurance that has become increasingly common since the downturn of the housing market began and homeowners had trouble keeping up with payments on their home insurance. January 12, 2012
As home prices fall, more borrowers walk awayhen David Martin and his wife bought their north Seattle condo five years ago, they figured they had plenty of time to downsize if they needed to before they retired. Now, with the property worth roughly $60,000 less than the balance of their mortgage, Martin, 68, has been giving serious thought to just walking away, a process lenders call “strategic default.” “Guilt and morality are one side, and objective financial analysis are on the other side,” Martin said. “They’re coming to two opposite conclusions. I wonder how many other people are struggling with the same question.” January 9, 2012
Mortgages — A Good Rental History Can Help BorrowersExperian added a section to millions of credit reports showing on-time rent payments; two other credit-reporting companies plan to follow suit. January 9, 2012
Mortgage Servicing Horror Stories - Fair GameThere is still no nationwide settlement over practices at mortgage servicing companies. But a couple of state attorneys general have been taking matters into their own hands. January 9, 2012
As consumer credit scores plunged in 2008-2009, lenders raised their standardsAs credit scores plunged in 2008-2009 for millions of consumers, lenders raised their standards. January 9, 2012
Flawed real estate appraisals create problems for buyers, sellers, refinancersHow do you fight back when an appraiser — often from another city and working for a small fee on behalf of a big bank — wrecks your sale, purchase or refinancing with a low-ball valuation? It’s a serious problem in markets across the country. For example: Homebuilder John Nolde of Richmond recently found a buyer for a new, green-certified house at $199,500, only to see an out-of-area appraiser cut the value to $169,000, a figure below Nolde’s combined construction and land costs. The low-ball valuation killed the deal. November 21, 2011
Organizations can help in housing disputesLet’s say that your condominium association has not had an election for board of directors in two years, contrary to the requirements of your legal documents. Or let’s say your homeowner association held an election but refused to show you the actual ballots, claiming that voting was by secret ballot. What can you do? Where can you go for assistance? November 21, 2011
D.C. area is behind the curve on housing and jobs forecastsEven as the housing slump drags on, and it seems there are far more houses than anybody wants to buy, a new analysis warns that the Washington area doesn’t have nearly enough housing for the wave of new workers that will arrive in coming decades. Researchers at George Mason University say the area is projected to add more than a million new jobs by 2030. With that growth comes a vexing problem: How do you house those new workers in ways that are both affordable and don’t worsen the soul-crushing commutes that already plague the region’s residents. November 21, 2011
In Old Town, planners look to the future with sensitivity to the pastAlexandria’s historic Potomac River waterfront has been an evolving work in progress since the 18th century. The city’s planners have drafted a conservative yet controversial waterfront plan for the 21st century. The plan makes functional, aesthetic, environmental and economic sense and, despite the controversy, should be adopted by the Alexandria City Council. November 21, 2011
Inheriting a Home, and a LoanTHE death of a family member may bring a barrage of sadness, a bequest of property — and a mortgage to repay. “It’s like getting a gift with a string,” said Judith D. Grimaldi, a principal of Grimaldi & Yeung, an estate planning law firm in Brooklyn. Thirty-one percent of people 65 and older, in fact, have home mortgages, according to the Census Bureau. “Most of my clients just end up selling the house,” Ms. Grimaldi said, “taking the proceeds and saying, ‘Thank you, Mom.’ “ November 21, 2011
A Rising Rental Market in the NorthIT appears another housing boom is under way, but just for rentals. In northern New Jersey, where several big new buildings opened in the last few months, agents are describing the pace of leasing as “incredible” and “vigorous,” words that haven’t been used about the for-sale market in about five years. Earlier this month, developers broke ground for three more rental buildings — one in condominium-heavy Fort Lee, another in Jersey City’s historic Paulus Hook neighborhood, and a third at Port Imperial in West New York, with each expressing blazing confidence in the market. November 21, 2011
Homeless, Abandoned by Parents and Now Preparing for CollegeAfter CUNY Start classes, held on campus, Mr. Joseph spent two hours commuting to the Mainchance Drop-In Center at East 32nd Street in Manhattan for his 8:30 p.m. check-in. The staff tried to find a bed for him in a church nearby each night, and when none was available, he slept on a chair in the center’s office. Later, he moved on, checking in for one night at Bellevue. Then he moved on again, sleeping wherever he could. For Mr. Joseph, the guarantee of a bed is elusive. But he does not complain. He has been improvising since he was a teenager. When he was 7, his mother left the family in Jamaica to find work abroad, and he has not had contact with her since, he said. November 21, 2011
$1B Homeowner Program Mainly Benefited 3 StatesA $1 billion federal program to help distressed homeowners in much of the country mainly helped people in just three states and very few in some others, government data show. Almost half the homeowners aided by the Emergency Homeowners’ Loan Program are in Pennsylvania, Maryland and Connecticut, based on preliminary figures from the Department of Housing and Urban Development.As previously reported, the program closed to applicants on Sept. 30 with more than half of its $1 billion unspent. Leftover funds return to the U.S. Treasury. November 21, 2011
New D.C. title insurance shortcomingsThe District of Columbia recently adopted a new law that prevents consumers from receiving any rebates, discounts or other inducements in connection with title insurance. Title insurance protects real estate purchasers from liens, land survey discrepancies or other title problems. It’s required by virtually all lenders in a purchase or refinance transaction. Owner’s coverage is optional. November 15, 2011
Jumbo mortgages may be next in line to defaultDo you have a big mortgage and good credit scores but not much equity — maybe you’re even underwater? Do you see little chance that your home’s market value will improve much during the coming three to seven years? If you answered yes to both questions — and thousands of homeowners across the country could do so — new research suggests that you are in a category that lenders need to worry about most: prime jumbo borrowers who once were thought to be among the safest bets but who now are the most likely to opt for a strategic default and walk away from their homes. November 15, 2011
Fannie Mae opens foreclosure counseling center in Pr. George’sMortgage giant Fannie Mae opened a center in Prince George’s County on Wednesday that is designed to help struggling homeowners who are facing foreclosure. The Capital Area Mortgage Help Center will provide free education and one-on-one counseling services to homeowners who need assistance. The center, which is in Greenbelt but is for homeowners throughout the region, is the 12th facility to open in the United States. November 10, 2011
How a financial professional lost his houseThere are many stories these days of people who lost their financial bearings during the housing boom and the crisis that followed, but my story is a bit different from most. I’m a financial adviser. I get paid to help people make smart financial choices, and I speak and write about personal finance issues for this publication and others. My first book comes out in January, “The Behavior Gap: Simple Ways to Stop Doing Dumb Things With Money” (Portfolio, a Penguin imprint). November 10, 2011
East Baltimore residents criticize nonprofit development at hearingThe nonprofit group leading the $1.8 billion redevelopment of 88 acres north of the Johns Hopkins medical campus has failed to deliver on promises of jobs and housing after razing most of the neighborhood and relocating hundreds of families, a Baltimore City Council panel was told Wednesday night. About 30 people — current and former residents and unemployed laborers — testified before the Taxation, Finance and Economic Development Committee. November 10, 2011
Md. orders Allied Home Mortgage to stop lending in stateState regulators said Wednesday that they have ordered a large mortgage broker to stop making loans to Marylanders after federal investigators alleged the company had violated lending rules. The U.S. Department of Housing and Urban Development announced last week that it was no longer allowing Allied Home Mortgage Corp. to originate loans insured by the Federal Housing Administration because it said the company had played “fast and loose with FHA’s standards.” The Justice Department is alleging mortgage fraud in a lawsuit against Allied. November 10, 2011
Sex-plus Fair Housing Act claim survives dismissalHere’s what happened to the plaintiff: he went to look for an apartment in Queens. Plaintiff is an unmarried male. The Complaint says the Co-op Board has a policy of refusing to sell to “men who are single.” According to the lawsuit, “this discriminatory conduct was a result of a bad experience with a previous male tenant who threw loud parties and smoked marijuana.” Does this guy have a case under the Fair Housing Act? November 10, 2011
Banks’ foreclosure activity picks up in OctoberBanks are reasserting themselves against troubled borrowers, sending close to 78,000 properties into the first stage of the foreclosure process in October after a nearly yearlong slowdown brought on by increased scrutiny from regulators. Foreclosure actions were filed on 230,678 U.S. homes in October, up 7% from the month before, according to a report by RealtyTrac of Irvine. The tally spans the major steps required for a lender to take back a home: sending a notice of default, filing the alert that a bank auction has been scheduled and repossessing the house. November 10, 2011
Late mortgage payments rise in 3rd qtr for first time since 2009; may show start of new trendWhile lawmakers in Washington debated the debt ceiling and consumer confidence dropped, more homeowners in the U.S. were having a harder time making their mortgage payments. The rate that mortgage holders were late with their payments by 60 days or more rose in the June-to-September period for the first time since the last three months of 2009, according to TransUnion. November 9, 2011
Finding more flaws in HUD’s accounting of HOME programThe calls started in mid-May, two weeks before a looming congressional hearing. Staff members across the vast U.S. Department of Housing and Urban Development were racing to check in with hundreds of local agencies to determine the status of housing construction projects for the poor. Within days, the massive scramble came to a conclusion: HUD told Congress that its $32 billion HOME Investment Partnerships Program was doing just fine. November 9, 2011
Foreclosure backlogs could take decades to clear outForeclosure sales are moving so slowly in half the states that at the current pace, it will take more than eight years on average to clear the 2.1 million homes in foreclosure or with seriously delinquent mortgages, new research shows. That’s about twice as long as a year ago in the states where foreclosures go through courts — before the mortgage industry was upended by last fall’s disclosures that court papers in many foreclosure cases were improperly prepared. Since then, new checks have slowed the process. November 9, 2011
A Dream of Homeownership, Still Beyond ReachLIKE many young married people, Steve and Logan Kinney dream of owning a home. So after several years of diligent saving, the couple, both teachers, scoured the listings in Boerum Hill, the leafy Brooklyn neighborhood where they rented. But before long, they realized that home ownership would require living within the four walls of a studio. And even that was a stretch. “From what I’ve been told from TV, you are supposed to get a house,” said Mr. Kinney, 27, referring to the progression of life after marriage. “And then I get to sit in a nice chair.” November 9, 2011
Study Clarifies the Energy Savings in Retrofitted BuildingsWhile the practice of retrofitting buildings with energy-conserving technology like efficient boilers, high-quality windows and compact fluorescent light bulbs has been around for years, data on whether these changes result in any real savings has been virtually nonexistent. Now, a new study shows that these relatively straightforward fixes can significantly reduce spending on fuel and electricity. November 9, 2011
Candidates on housing crisis: A deafening silenceThey’ve debated over how to create jobs. They’ve argued over how to cut spending. They’ve battled over whether to raise taxes. But five years into the worst housing crisis since the Great Depression, there’s been very little discussion from the presidential candidates on the real estate crisis that’s battering millions of American families. November 9, 2011
HUD REACHES SETTLEMENT WITH CONNECTICUT LENDER ACCUSED OF ‘MATERNITY DISCRIMINATION’The U.S. Department of Housing and Urban Development announced today that it has reached an agreement with Luxury Mortgage Corporation (LMC), a mortgage lender based in Stamford, Connecticut, settling accusations that the lender discriminated against a woman by denying her mortgage loan because she was on maternity leave. Under the settlement, LMC agrees to pay the woman who was denied the mortgage $12,000. November 4, 2011
Fixed mortgage rates near historic lowsThe average rate on the 30-year fixed mortgage fell to 4 percent this week, nearly matching the all-time low hit just one month ago. Freddie Mac said Thursday the rate on the 30-year loan dropped from 4.10 percent last week. Four weeks ago, it dropped to 3.94 percent — the lowest rate ever, according to the National Bureau of Economic Research. November 4, 2011
D.C. area housing market feels the pinch from lower jumbo mortgage limitsSrinivasan Soundararajan and Jennifer Nordin have been thinking about selling their Potomac townhouse and moving into a detached house for some time. With two small children, 1 and 3 years old, they are beginning to outgrow their three-bedroom house. This past summer, the couple stayed out of the market because of Congress’s gridlock over the U.S. debt ceiling; they feared that a spike in interest rates could disrupt a pending house purchase. Once lawmakers agreed to raise the ceiling, they started looking at houses again. November 4, 2011
Reverse mortgages can be good option for seniorsDo you know that if you are 62 years or older you may be able to buy a house or a condominium using a reverse mortgage? A reverse mortgage allows you to get money from a lender, but you do not have to pay it back (or make any monthly payments) until you sell or die. How does it work? Let’s assume you just sold your existing house and want to downsize to a smaller house or a condominium unit. You have $300,000 cash from the sale, and since you qualified for the up-to-$500,000 exclusion of gain, you will not have to pay any capital gains tax. November 4, 2011
Home building spent another year in the cellarInstead of being a turnaround year, 2011 is likely to set a new low for the battered single-family home-building industry. The industry is on pace to start construction on 424,000 single-family homes this year, says the National Association of Home Builders. That’s down 10% from last year and down 5% from 2009, which was the worst year for single-family home starts since consistent record keeping began in 1959. November 4, 2011
Cuba legalizes buying and selling private real estateCuba announced Thursday that it will allow real estate to be bought and sold for the first time since the early days of the revolution, the most important reform yet in a series of free-market changes under President Raul Castro. The law, which takes effect Nov. 10, applies to citizens living in Cuba and permanent residents only, according to a red-letter headline on the front page of Thursday’s Communist Party daily Granma and details published in the government’s Official Gazette. November 4, 2011
Detroit’s Mayor Says Budget Gap May Require Emergency ManagerDetroit, wrestling with a budget gap and a shrunken tax base, may soon require intervention from a state-appointed emergency manager to save itself from financial ruin, Mayor Dave Bing has told other city leaders. Such a notion would place the city’s finances and operations under the control of an appointed manager only months after Michigan leaders vastly expanded the power of such emergency managers, giving them the ability to set aside contracts with public workers’ unions. November 4, 2011
Up for auction: 103 rowhouses in Patterson ParkA major property owner in the Patterson Park area is seeking to auction off its 103 rowhomes in the Baltimore neighborhood. Silver Spring-based Grady Management wants to sell its Harbor House portfolio in bulk rather than in pieces, according to the auctioneer. Mark Troen, chief operating officer of Sheldon Good & Co., said the suggested opening bid is $3,750,000 — just over $36,000 per house. November 4, 2011
Downtown Partnership to office building owners: Convert to apartmentsThe downtown vacancy rate for offices is nearly 18 percent. For apartment complexes? A lot lower. (It’s 10 percent if you count newer buildings that are still working to get leased up, according to real estate data firm Delta Associates, and just under 2 percent for the rest of the upscale complexes downtown.) The Downtown Partnership of Baltimore is trying to convince owners of older office buildings to make the leap from Group A to Group B. November 4, 2011
New state law slows banks from starting foreclosuresA new Nevada law that took effect in October has slowed banks from initiating foreclosures, resulting in just 116 notices of default filed in the first three weeks of October, compared with 3,649 filings in September, a spokesman for ForeclosureRadar.com said Thursday. November 4, 2011
Mortgage modifications rose in SeptemberThe Obama administration’s main home foreclosure prevention program saw a substantial boost in permanent loan modifications in September, in part due to improved technology for reporting the status of cases. U.S. housing authorities said on Thursday that the Home Affordable Modification Program, known as HAMP, helped 40,141 homeowners achieve a permanently lower mortgage payment in September — up from 25,434 homeowners in August. November 4, 2011
Post-Racial Seattle? Not YetRacial discrimination in housing has been illegal in the United States for over 40 years. The Fair Housing Act of 1968 makes it a crime to discriminate on the basis of race, color, or national origin in all housing-related transactions. But a recent study conducted by the Seattle Office of Civil Rights demonstrates that housing discrimination is far from dead. In over 70% of tests, African-American applicants for housing were discriminated against. Thirty-six percent of the time, people with disabilities also faced barriers. November 4, 2011
Despite housing downturn, home ownership edges upDespite a historic downturn in housing, the ranks of homeowners grew between the second and third quarter. The American homeownership rate rose slightly to 66.3 during third quarter 2011, up from 65.9 percent in second quarter, according to data released today by the U.S. Census Bureau. Rental vacancy nationally was 9.8 percent during the quarter, down from 10.3 percent this time last year but up from 9.2 percent in second quarter. Rental vacancy hit a recent-year peak of 11.1 percent during third quarter 2009, according to the data. November 3, 2011
Foreclosure victims could be compensatedThe Federal Reserve Board Tuesday announced that borrowers who believe they were financially harmed during the mortgage foreclosure process by four institutions in 2009 and 2010 could request an independent review and potentially receive compensation. The four mortgage servicers — GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage and EMC Mortgage Corporation — are required to conduct this program as part of their compliance with enforcement actions issued by the board in April 2011. November 3, 2011
Covington public housing eviction policy challenged in courtOn the night of Aug. 5, a single mother charged her 12-year-old son with looking after his 8- and 9-year-old brothers and left to visit a friend, unaware that might result in her arrest and eviction from the family’s 32nd Avenue apartment in the Covington Housing Authority. Nicole Bullins, 33, was booked that night with misdemeanor child desertion and, though the district attorney refused the charges, the family was evicted from its public housing apartment. November 3, 2011
More than half of Florida homeowners in default are 2 years overdueMore than half of Florida homeowners in foreclosure have not made a mortgage payment in two years or more. That’s higher than the national average and one indication of why banks are paying borrowers up to $20,000 to execute a short sale. A new report from Jacksonville-based LPS Applied Analytics found that as of September, 56 percent of Florida’s mortgages in foreclosure are 24 months or more behind in payments, compared with 39 percent nationwide. November 3, 2011
Final chapter opens on St. Bernard Parish apartment dramaWhile it remains front and center in the St. Bernard Parish electoral landscape - with those seen as helping pave the way for the developments marked as targets in the Nov. 19 runoff - the court battle surrounding the mixed-income Provident Realty Advisors apartments in Chalmette appears to be in its final chapter. U.S. District Judge Ginger Berrigan today ordered that by 3 p.m. Wednesday St. Bernard must issue the last building permit needed for the Riverview site at 8149 West St. Bernard Highway. November 3, 2011
HUD SUSPENDS ALLIED HOME MORTGAGE CORP. AND CEOThe U.S. Department of Housing and Urban Development’s Mortgagee Review Board (MRB) today immediately suspended Allied Home Mortgage Corporation, thereby preventing the company from originating and underwriting new mortgages insured by the Federal Housing Administration (FHA). HUD is also suspending the company’s president and chief executive officer, James C. Hodge, and proposing to debar him as well as the company’s executive vice president, Jeanne L. Stell. In addition, the Government National Mortgage Association (Ginnie Mae) is suspending the Houston-based lender’s ability to issue securities in its Mortgage-Backed Securities (MBS) program. November 2, 2011
Foreclosure review process affecting 4.5M consumers beginsThe federal government kicked off its foreclosure review process Tuesday, which will offer nearly 4.5 million consumers the chance to get their foreclosure cases reviewed for mistakes and potential restitution. The first batch of letters informing consumers of their right to a review went out Tuesday. They’ll all go out by Dec. 31, the Office of the Comptroller of the Currency says. November 2, 2011
Two D.C. women’s shelters to mergeBy 2009, the message that operators of the N Street Village began hearing from its funders was clear: Find ways to do more with less. The organization, one of the District’s largest providers of services for homeless women, began looking for a partner to complement its services. It found a match in Miriam’s House, a transitional housing program for homeless women living with HIV and AIDS. On Wednesday, both groups are expected to announce a merger. November 2, 2011
4 million foreclosures subject to reviewAbout 4 million homeowners who may have been improperly foreclosed upon in 2009 and 2010 are getting an opportunity to have their cases reviewed. Whether they will be reimbursed is up to the same lenders who are accused of moving too swiftly to seize their homes. The Office of the Comptroller of the Currency said Monday that mortgage services will begin sending out letters this month that ask borrowers if they want their case reviewed. November 2, 2011
Solar power is beginning to go mainstreamSolar energy may finally get its day in the sun. The high costs that for years made it impractical as a mainstream source of energy are plummeting. Real estate companies are racing to install solar panels on office buildings. Utilities are erecting large solar panel “farms” near big cities and in desolate deserts. And creative financing plans are making solar more realistic than ever for homes. October 31, 2011
Mortgage lenders could soon take homes’ energy costs into accountWhen you apply for a mortgage to buy a house, how often does the lender ask detailed questions about monthly energy costs or tell the appraiser to factor in the energy-efficiency features of the house when coming up with a value? Hardly ever. That’s because the big three mortgage players — Fannie Mae, Freddie Mac and the Federal Housing Administration, who together account for more than 90 percent of all loan volume — typically don’t consider energy costs in underwriting. Yet utility bills can be larger annual cash drains than property taxes or insurance — key items in standard underwriting — and can seriously affect a family’s ability to afford a house. October 31, 2011
Don’t let bond with builder keep you from getting lawyer’s advice on contractAlthough homeowners often will spend thousands of dollars on a new house or remodel, the major issue in hiring the person who will do the work for most people initially is not legalities and contracts but trust, a human character trait that “we are hard-wired for,” Ariely said. Trust becomes an issue when we develop a social relationship, and that is how a home building or remodeling project begins for most people. October 31, 2011
Thinking of buying a short-sale home? Be prepared to be patient.We hear quite a bit today about homes selling in “short sales.” But just what is a short sale, and how can a prospective home buyer buy a home that is subject to a short sale? A short sale occurs when a homeowner agrees to sell his home to an independent, third-party buyer for less than the outstanding balance on his mortgage. In other words, the net sales proceeds from his sale still leave the homeowner “short” in paying off his mortgage. October 28, 2011
Ten U.S. cities with the highest inflation ratesInflation has not been an economic problem in the United States since the start of The Great Recession. Despite this, pockets of sharp increases in inflation have developed in several cities around the country. In some, the rate of inflation was three times 2010′s national average of 1.75 percent. 24/7 Wall St. has identified the ten cities with highest inflation and found several common causes for the high inflation. October 28, 2011
Top executives of Freddie Mac to step downThe chief executive and the chairman of Freddie Mac both said Wednesday that they intend to step down, in a shake-up that comes just as the government-backed mortgage finance company is being tasked to play a major role in a new plan to help struggling homeowners. Chief Executive Charles E. Haldeman Jr., a former mutual fund executive who has led the company since July 2009, will leave the McLean-based firm sometime next year. October 27, 2011
Ten things you need to know about buying or selling a homeAfter staying put during the economic recession, you might be tempted by stabilizing real estate prices and low mortgage interest rates to sell your house and buy your next place. What you may not realize is how long and complicated the process of buying and selling a home has become. New lending regulations, appraisal procedures and consumer expectations can throw up roadblocks for even the most seasoned flipper. October 27, 2011
Occupy D.C. protesters welcomed by local homelessIn growing numbers, the city’s homeless are embracing the 100-plus tents at Occupy D.C. in McPherson Square and the smaller Stop the Machine encampment at Freedom Plaza. With the Occupy Wall Street movements decrying what they labelcorporate greed, protesters said the stories behind the District’s homeless are emblematic of a political and economic system failing the lower class. Although some of the homeless resent the newcomers’ claim on the park, many said the new neighbors are doing what city leaders have struggled to do for years. October 26, 2011
Ireland Needs Mortgage REITs to Help Cut Leverage, NAMA SaysIreland should introduce mortgage real estate investment trusts to help banks and the National Asset Management Agency offload bad debt stemming from loans made during the property boom, NAMA Chief Executive Officer Brendan McDonagh said. The CEO said he asked Finance Minister Michael Noonan to consider allowing the REIT structure in Ireland to give NAMA and the banks an alternative to selling debt portfolios directly. October 26, 2011
Ariz. regulators seize PMI Mortgage Insurance Co.Insurance regulators in Arizona have seized the main subsidiary of private mortgage insurer PMI Group, which will begin paying claims at just 50%. The seizure follows heavy losses at PMI since the housing market bubble burst. Two months ago, state regulators ordered the Arizona-based subsidiary, PMI Mortgage Insurance Co., to stop selling new policies after it came under scrutiny because it didn’t have enough money on hand to meet the requirements of regulations in that state. October 26, 2011
Consumer Confidence Falls as Some Home Prices RiseHome prices rose in August in half of the large cities measured by a private survey, a sign that prices are stabilizing in some hard-hit parts of the country. Separately, consumer confidence fell in October to the lowest level since March 2009. The Standard & Poor’s/Case-Shiller index showed Tuesday that home prices increased in August from July in 10 of the 20 cities tracked. That was the fifth consecutive month that at least half of the cities in the survey showed monthly gains. The biggest price increases were in Washington, Chicago and Detroit. The greatest declines were in Atlanta and Los Angeles. October 26, 2011
As Newark High-Rise Loses Aid, Fear Sweeps Through Its TenantsWhen it opened in 1971, Carmel Towers in Newark was a model of the sort of high-rise urban development that the federal government was encouraging through generous subsidies. Now, federal officials are cutting off financial aid to the building’s landlord, leaving hundreds of residents fearing that they could soon be evicted. Distress has been rising through the 25-story building since midsummer, when tenants started getting word that the Department of Housing and Urban Development had decided to end its contract with Carmel Towers on Nov. 1. October 26, 2011
Decaying Infrastructure Costs U.S. Billions Each Year, Report SaysAs Congress debates how to meet the nation’s long-term transportation needs, decaying roads, bridges, railroads and transit systems are costing the United States $129 billion a year, according to a report issued Wednesday by a professional group whose members are responsible for designing and building such infrastructure. Complex calculations done for the American Society of Civil Engineers indicate that infrastructure deficiencies add $97  billion a year to the cost of operating vehicles and result in travel delays that cost $32 billion. October 25, 2011
The Home Affordable Refinance Program (HARP): What you need to knowOn Monday, the federal government announced that it would revise the Home Affordable Refinance Program (HARP), implementing changes that The Washington Post’s Zachary A. Goldfarb reported would “allow many more struggling borrowers to refinance their mortgages at today’s ultra-low rates, reducing monthly payments for some homeowners and potentially providing a modest boost to the economy.” October 25, 2011
Government announces new program to help ‘underwater’ homeownersPresident Obama on Monday responded to growing concerns about the nation’s battered housing market by unveiling a plan to help reduce the monthly mortgage payments of homeowners who owe more than their properties are worth. As he met with distressed homeowners in Las Vegas, the foreclosure capital of the nation, Obama announced steps to allow “underwater” borrowers to refinance their mortgages at today’s ultra-low rates — near 4 percent. October 25, 2011
New rules would help underwater homeowners refinanceAlmost 1 million more homeowners over the next two years might be able to refinance their mortgages and save hundreds of dollars a month under the Obama Administration’s latest fix to one of its underused foreclosure prevention programs.The changes announced Monday are intended to benefit homeowners who have continued to make mortgage payments, even as home values have sunk, but lack at least 20% equity to refinance and take advantage of today’s low interest rates. The revisions could also help some owners who are underwater, owing more than their homes are worth. October 25, 2011
4.5 million foreclosed borrowers may be eligible for reviewsNearly 4.5 million current and former U.S. homeowners will soon get a chance to have their foreclosure cases reviewed for mistakes and potential restitution. Next month, the U.S. government expects the first wave of homeowners to receive its letters in the mail, informing them of their right to ask for a foreclosure review, says Office of the Comptroller spokesman Bryan Hubbard. October 25, 2011
Outside Cleveland, Snapshots of Poverty’s Surge in the SuburbsThe poor population in America’s suburbs — long a symbol of a stable and prosperous American middle class — rose by more than half after 2000, forcing suburban communities across the country to re-evaluate their identities and how they serve their populations. The increase in the suburbs was 53 percent, compared with 26 percent in cities. The recession accelerated the pace: two-thirds of the new suburban poor were added from 2007 to 2010. October 25, 2011
Crazy home deals await the creditworthyWhen Cynthia and Gerald Matthews relocated from Ottawa to Bloomington, Ind., house hunting had some pleasant surprises. “It was much cheaper than we thought it would be,” says Cynthia Matthews, who bought a three-bedroom, brick neocolonial-style house for 5 percent less than the $196,999 asking price and got a mortgage rate close to 4 percent. “To say it’s a buyer’s market would be an understatement.” People like the Matthewses who survive the scrutiny of mortgage lenders are getting the best deals of the five-year U.S. housing bust — and perhaps the best deals of a generation — after a 31 percent decline in home prices since 2006. October 25, 2011
A guide to administration’s new mortgage-refi planTwo big questions loom over the Obama administration’s latest bid to help troubled homeowners: Will it work? And who would benefit? By easing eligibility rules, the administration hopes 1 million more homeowners will qualify for its refinancing program and lower their mortgage payments — twice the number who have already. The program has helped only a fraction of the number the administration had envisioned. In part, that’s because many homeowners who would like to refinance can’t because they owe more on their mortgage than their home is worth. But it’s also because banks are under no obligation to refinance a mortgage they hold — a limitation that won’t change under the new plan. Here are some of the major questions and answers about the administration’s initiative: October 25, 2011
Foreclosure crisis may lead to health concerns nationwideThe devastation of losing a house to foreclosure can lead to depression and a host of other conditions, according to the authors of new study who warn of a looming national health crisis. They are advocating for a new unified approach by financial and mental health advisers to provide homeowners with aid. The study, led by a University of Maryland researcher, found that one in five people in default on their mortgages have serious symptoms of depression. About one-third have seen their finances so crimped that they cannot afford to fill prescriptions and get enough to eat, which worsen health problems. October 25, 2011
Obama’s Efforts to Aid Homeowners, Boost Housing Market Fall Far Short of GoalsIt was a critical plan to jump-start the economy. President Obama pledged at the beginning of his term to boost the nation’s crippled housing market and help as many as 9 million homeowners avoid losing their homes to foreclosure. Nearly three years later, it hasn’t worked out. Obama has spent just $2.4 billion of the $50 billion he promised. The initiatives he announced have helped 1.7 million people. Housing prices remain near a crisis low. Millions of people are deeply indebted, owing more than their properties are worth, and many have lost their homes to foreclosure or are likely to do so. Economists increasingly say that, as a result, Americans are too scared to spend money, depriving the economy of its traditional engine of growth. October 24, 2011
How to Stabilize the Housing MarketThe central irony of a financial crisis is that while it is caused by too much confidence, borrowing and lending, and spending, it can be resolved only with more confidence, borrowing and lending, and spending. This is true, above all, of housing policies. Fannie Mae and Freddie Mac, government-sponsored enterprises (GSEs) whose purpose is to mitigate cyclicality in housing and that today dominate the mortgage market, have become a textbook case of disastrous and pro-cyclical policy. October 24, 2011
Obama Promotes New Rules for Home FinancingPresident Obama opens his western swing today by promoting new rules to help struggling homeowners refinance their mortgages. Obama will discuss the new approach during his trip to Las Vegas, which has been hit particularly hard by the housing crisis; many analyst see housing as the biggest drag on an economy still stagnant following the 2008 financial meltdown. Housing is part of a revamped economic push by Obama. When the president wraps up his trip Wednesday in Denver, he will discuss ways to ease repayments of college loans. October 24, 2011
FHA Rules for Condo Purchases are Causing Major Headaches for Buyers and SellersIs a little-publicized switch in federal mortgage policy causing huge problems for condominium sellers, buyers and homeowner association boards across the country — even depressing prices and blocking refinancings? Condo industry leaders, from the 30,000-member Community Associations Institute to individual unit owners and realty agents, are emphatic that the answer is yes. They say a series of rule revisions by the Federal Housing Administration has caused thousands of condo projects to become ineligible for FHA mortgages. October 24, 2011
New Rules for FHA Financing Hold Pitfalls for Condominium OfficialsCondominium managers and boards of directors have a dilemma when it comes to the Federal Housing Administration. On the one hand, they know their unit owners want FHA financing to either refinance their existing mortgage or to help potential buyers secure loans. On the other hand, they recognize that recent FHA guidelines have put unreasonable requirements on condominium associations, including requiring them to certify certain facts, which, if wrong, could result in fines of up to $1 million and up to 30 years in prison. October 24, 2011
Cash deals for half the homes sold in Baltimore last monthIn half the home sales in Baltimore last month, the buyer paid cash — or the equivalent to it from the seller’s point of view. Cash and cash-like deals are much more common in the city, where investors are buying foreclosures and can’t easily get bank financing, than in the counties around Baltimore. Still, nearly 15 percent of the suburbs’ sales — about one in seven — fell into that category in September. October 24, 2011
A Deal to Help Foster Youths Find HousingNew York City has reached an agreement on a proposed settlement of a lawsuit that claims the city allows older children to leave foster care only to become immediately homeless. Each year, roughly 800 to 1,100 people age 18 to 21 are discharged from foster care to fend for themselves, the plaintiffs complained in the class-action suit. There is no current data on the youths’ housing after foster care, but previously the city’s Department of Homeless Services and the City Council estimated that more than a quarter of youths discharged from foster care because of their age end up homeless almost immediately, according to the complaint, which accuses the city of shirking its responsibilities to those youths. October 21, 2011
Real Estate Agents Learning Fine Art of ‘Cash for Keys’When Mary Poland-Smith went into real estate 14 years ago, she never imagined that part of her job would involve handing out “cash for keys,” to persuade former home owners or renters to vacate their premises. “It did feel uncomfortable in the beginning,” says Poland-Smith, an agent with Better Homes Realty Inc. in Montclair, Va. For real estate agents across the country, getting people to move out of their homes without a costly and time-consuming eviction is increasingly part of the job description. October 21, 2011
Buy a Home, Get a US Visa, Senators ProposeTwo Senators have come up with a plan to boost the moribund U.S. housing market: Give residence visas to foreigners who spend at least $500,000 to buy a home in the U.S. A report in The Wall Street Journal says Sens. Charles Schumer (D., N.Y.) and Mike Lee (R., Utah) are preparing to introduce the idea as part of a larger package of immigration measures. The idea is to help make up for the lack of American buyers in the housing market, according to the report. October 21, 2011
Senate Backs Plan to Help Americans Buy HomesThe Senate on Thursday backed a measure to help bolster the housing market by making it easier for people to afford a home in wealthier neighborhoods. The Senate voted 60-38 to attach the proposal to a spending bill that the chamber will consider later this year. It would restore the size of the loans the government buys or insures to a maximum of $729,500 from the previous cap of $625,500. The cap, known as the “conforming loan limit,” determines the maximum size of loans the Federal Housing Administration and the government’s mortgage buyers, Fannie Mae and Freddie Mac, can buy or guarantee. October 21, 2011
Study: Better Neighborhood Lowers Obesity, Diabetes RiskLow-income moms who move from very poor neighborhoods to less disadvantaged ones lower their risk of becoming extremely obese and developing type 2 diabetes, a study reveals. The participants were all part of a long-term housing study by the Department of Housing and Urban Development (HUD). From 1994 to 1998, the families who volunteered to participate were randomly assigned to different groups. One group received rent-subsidy vouchers so they could move to a higher-income neighborhood — where about 10% of the residents were below the poverty level. Other women were assigned to the control group and didn’t get the rent subsidy. October 20, 2011
Neighborhoods, Obesity, and Diabetes — A Randomized Social ExperimentThe question of whether neighborhood environment contributes directly to the development of obesity and diabetes remains unresolved. The study reported on here uses data from a social experiment to assess the association of randomly assigned variation in neighborhood conditions with obesity and diabetes. October 20, 2011
HUD CHARGES PHILADELPHIA CONDOMINIUM ASSOCIATION WITH DISCRIMINATING AGAINST RESIDENTS WITH DISABILITIESThe U.S. Department of Housing and Urban Development announced today that it is charging a Philadelphia condominium association with violating the Fair Housing Act for refusing to revise its “no pets” policy as a reasonable accommodation for condominium residents with disabilities who required assistance animals. HUD’s charge alleges that The Philadelphian Owners’ Association (POA), which manages the 776-unit Philadelphian condominium complex, requiredthat residents provide burdensome and invasive medical documentation before requests for accommodation would be considered, severely limited access to the complex’s facilities for residents accompanied by assistance animals, and failed to address several instances of harassment of residents requiring assistance animals. October 20, 2011
U.S. Solar Manufacturers to File Dumping Charges Against Chinese FirmsSolarWorld Industries America and six other U.S. manufacturers of solar cells and panels plan to file dumping charges against Chinese cell and panel makers, seeking U.S. import duties to offset what they say are illegal subsidies by the Chinese government. By selling panels at prices below production costs, the Chinese firms are “decimating” jobs in the United States, said SolarWorld spokesman Ben Santarris. “Artificially low-priced solar products from China are crippling the domestic industry,” said Gordon Brinser, president of SolarWorld. October 20, 2011
Economy Still Sluggish, but Reports Show Modest ImprovementInflation slowed from its summertime blip in September, housing starts rebounded, and the Federal Reserve reported signs of modest economic growth, suggesting that fears of a double-dip U.S. recession may have been overblown. Consumer prices rose 0.3%, driven by cost increases for food and energy, while builders broke ground on new homes at an annual pace of 658,000 houses and apartments, the U.S. government said in two separate reports. Each was better than economists’ forecasts. The Fed’s “beige book” survey of business conditions said companies reported tourism and auto sales are leading growth in much of the nation. October 20, 2011
Rush to Drill for Natural Gas Creates Conflicts With MortgagesAs natural gas drilling has spread across the country, energy industry representatives have sat down at kitchen tables in states like Texas, Pennsylvania and New York to offer homeowners leases that give companies the right to drill on their land. But bankers and real estate executives, especially in New York, are starting to pay closer attention to the fine print and are raising provocative questions, such as: What happens if they lend money for a piece of land that ends up storing the equivalent of an Olympic-size swimming pool filled with toxic wastewater from drilling? October 20, 2011
Very Few Homeowners have Earthquake InsuranceCary Mann knows a major earthquake in Southern California could be catastrophic. But Mann doesn’t carry earthquake insurance on either his Cathedral City home about 115 miles east of Los Angeles or on the hair salon he co-owns there. “None of my family has ever had it,” he said. “They’ve always said that if there was ever going to be a ‘Big One,’ the damage would be so massive that the insurance would never be able to pay out to everyone.” Many in the state feel the same way. According to the Insurance Information Network of California, fewer than 12% of the state’s homeowners had earthquake insurance last year, and fewer than 10% of businesses had the coverage. October 19, 2011
Gloom Grips Consumers, and It May Be Home PricesThe United States has a confidence problem: a nation long defined by irrational exuberance has turned gloomy about tomorrow. Consumers are holding back, businesses are suffering and the economy is barely growing. That has led a growing number of economists to argue that the collapse of housing prices, a defining feature of this downturn, is also a critical and underappreciated impediment to recovery. Americans have lost a vast amount of wealth, and they have lost faith in housing as an investment. They lack money, and they lack the confidence that they will have more money tomorrow. Many say they believe that the bust has permanently changed their financial trajectory. October 19, 2011
Smaller Shelters and Persuasion Coax Homeless Off Bronx StreetsInfusions of government money have revitalized many poorer neighborhoods in the Bronx, but the problem of people living on the streets has persisted. Now, though, a new strategy is showing surprising results: the number of single, homeless people in the borough has dropped roughly 80 percent since 2005, according to a recent estimate by the city. The Bloomberg administration said it had been able to lure them off the streets by opening smaller and more welcoming shelters it calls Safe Havens, which typically have about 40 beds each. The Department of Homeless Services has also contracted with one nonprofit group in each borough to scour the streets around the clock, seven days a week, and persuade homeless people to move inside. October 18, 2011
After a RejectionJUST because your mortgage application has been rejected doesn’t mean you won’t eventually get funding. Some borrowers succeed on the second or third attempt, usually with a different mortgage professional, and often several months later, after they have saved more money for a larger down payment or improved their credit score. But before you retry, “you just have to look and see the reasons that it’s turned down,” and address these issues, said Marisol Torruella, a loan originator with the New York Municipal Credit Union, referring to the original application. October 18, 2011
Homeowner Taps ‘Occupy’ Protest to Avoid ForeclosureRose Gudiel and her family were squatters in their own home. They had lost a two-year battle against foreclosure, and the eviction date had arrived. They hunkered down in the house on Sept. 28, surrounded by dozens of homeowner advocates and friends, hoping to stave off forcible removal.“(The bank) kept saying we can’t do anything. Your case is closed,” said Gudiel. “Our stand was, ‘No, we’re not leaving. This is our home. We worked hard for it and we’re just not going to leave.’” But instead of the anticipated confrontation, there was a dramatic reversal of fortune. Fanny Mae canceled the eviction notice and offered the Gudiels a loan modification that could enable them keep their home. October 18, 2011
Bankruptcy May Just be the Start of Harrisburg’s HeadachesEven if it’s legal (and it’s not certain that it is), Harrisburg, Pa.’s, decision to file for bankruptcy protection is certain to be a long, arduous and costly process, experts say. That’s why so few municipalities have chosen what could be a scorched-earth option for their credit rating since the law was enacted in 1937, after the Great Depression. October 18, 2011
One in Four Homes in Baltimore Region Selling for a LossTwenty-five percent of homes that sold in the Baltimore region over the summer changed hands for less than their owners paid for them, up from 21 percent a year earlier, real estate search site Zillow says. The share of homes selling at a loss is down from the spring, however, when it peaked at nearly 28 percent. (Zillow shows the percentage of losses generally spiking in the first half of the year, dipping in the summer and then heading back upward.) The situation is worse nationally, with just over a third of homes — 34 percent — selling for a loss. October 18, 2011
Metro Detroit Home Sales Rise for 3rd Month in SeptemberMetro Detroit home sales rose for the third straight month in September, boosted by higher demand and lower inventories of homes for sale. The combination also pushed up median sales prices by 10% in September compared with the same month a year ago, although they are still well below peaks hit at the start of the housing slump. October 18, 2011
HUD SUSPENDS FORMER PRESIDENT OF LEND AMERICAThe U.S. Department of Housing and Urban Development (HUD) today announced it is immediately suspending Michael Primeau, former President of Lend America, from doing any business with HUD following his admission that he engaged in a wide-scale mortgage fraud scheme. Specifically, Primeau pled guilty to charges he directed employees of Lend America, a former FHA-approved lender, to divert mortgage funds intended to pay off borrowers’ first mortgages at refinance closings in order to pay company operating expenses. October 17, 2011
HUD CHARGES FLORIDA PROPERTY OWNER, MANAGERS WITH DISABILITY DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) has charged an Ocala, Florida property owner, management company, and its employees with violating the Fair Housing Act for refusing to allow a resident to move to a different apartment after her neighbors’ second-hand smoke twice sent her to the emergency room. HUD brings the charge on behalf of the resident, alleging that managers at Magnolia Walk II, a 144-unit low income housing tax credit participant property, falsely claimed that tax law required that they treat the tenant’s request like a new application, requiring new fees and deposits, before they could grant her request. The Fair Housing Act requires landlords to make reasonable accommodations for renters with disabilities. October 17, 2011
Young Professionals Contemplate the Rent vs Buy DebateA new analysis by research firm Capital Economics this week found that U.S. median mortgage payments have reached the same price as median rental payments. In the Washington area, rents are going up, climbing 3.7 percent for the 12 months ending September and averaging $1,708 a month in 2011, according to Alexandria research firm Delta Associates. Local landlords have raised rents an average 3.7 percent a year since 2006. With low vacancy and limited supply, landlords will continue to have the upper hand until new projects are delivered in the next two years. October 17, 2011
What to Consider Before You BuySo a marathon of “House Hunters” on HGTV has you ready for your own two-bedroom duplex with bamboo flooring, crown molding and granite countertops. Before you start poring over listings on Redfin, housing experts say there are a few things to consider. October 17, 2011
Thinking of Buying at a Foreclosure Auction? Better Do Your Research.Buying a home at a foreclosure auction sounds like a fine idea in theory. Bargains can be found. Unlike short sales, the process is relatively quick. But in practice, the process is fraught with pitfalls and is not for the novice. Here’s a brief overview of the process and a few pointers that might help those looking to the vast foreclosure inventory for their next real estate investment. October 17, 2011
Low Mortgage Rates are Nice if You Can Get ‘emFor weeks now we’ve been touting new record-low rates on 15- and 30-year fixed mortgages. They’re floating around 4%, dipping below four when Europe explodes, then back just above 4% this week, as the stock market makes a turnaround. Whatever the exact daily rate, the message is that the rates are a steal, and they should make home refinancing and home buying a steal. October 17, 2011
Many Foreclosures, Few ListingsPRICES are down across the board so far this year in urban, suburban, rural and shore areas, in both northern and southern New Jersey — everywhere except areas close to Manhattan commuter train service, and in all price categories except, surprisingly, the uppermost. What is perhaps scarier, market analysts say, is that mass foreclosure actions, which could further hurt home values, have yet to make their presence felt. October 17, 2011
Banks Turn to Demolition of Foreclosed Properties to Ease Housing-market PressuresA handful of the nation’s largest banks have begun giving away scores of properties that are abandoned or otherwise at risk of languishing indefinitely and further dragging down already depressed neighborhoods. The banks have even been footing the bill for the demolitions — as much as $7,500 a pop. Four years into the housing crisis, the ongoing expense of upkeep and taxes, along with costly code violations and the price of marketing the properties, has saddled banks with a heavy burden. It often has become cheaper to knock down decaying homes no one wants. October 13, 2011
Harrisburg, Pennsylvania’s Capital, Files for BankruptcyThe city of Harrisburg, Pa., filed for bankruptcy protection Wednesday, which supporters characterized as the only alternative to a state takeover that would force the city to use its most lucrative assets to pay off Wall Street creditors. The bankruptcy filing was a hotly contested and emotional issue in Pennsylvania’s capital city. It was strongly opposed by Mayor Linda D. Thompson (D), who has said that bankruptcy would leave an embarrassing mark on the city of 49,000 while crippling its future ability to borrow for municipal projects. October 13, 2011
RealtyTrac Says Mortgage Defaults rose in the 3rd Quarter, Pointing to More Foreclosures AheadMore U.S. homes are entering the foreclosure process, but they’re taking ever longer to get sold or repossessed by lenders. The number of U.S. homes that received a first-time default notice during the July to September quarter increased 14 percent compared to the second quarter, RealtyTrac Inc. said Thursday. That increase signals banks are moving more aggressively now against borrowers who have fallen behind on their mortgage payments than they have since industrywide foreclosure processing problems emerged last fall. Those problems resulted in a sharp drop in foreclosure activity this year. October 13, 2011
Homeowners and Businesses Embracing Small Wind TurbinesMost of the buzz about wind power centers on the enormous turbine farms that dot plains and hilltops around the world. But another segment of the wind business is also gaining traction — small wind turbines, the type that stand alone at homes or businesses. In a report to be released later this month, the American Wind Energy Association says that the market for small wind turbines in the United States grew 26 percent last year — faster than in prior years. And in Britain, a report in April found growth in the year ending in December 2010 even higher, at 65 percent — making it the “greatest year on year increase” for the small-turbine industry, according to the report. (Both figures represent capacity additions.) October 13, 2011
How to Stop the Drop in Home ValuesHOMES are the primary form of wealth for most Americans. Since the housing bubble burst in 2006, the wealth of American homeowners has fallen by some $9 trillion, or nearly 40 percent. In the 12 months ending in June, house values fell by more than $1 trillion, or 8 percent. That sharp fall in wealth means less consumer spending, leading to less business production and fewer jobs. But for political reasons, both the Obama administration and Republican leaders in Congress have resisted the only real solution: permanently reducing the mortgage debt hanging over America. October 13, 2011
Sharp Rise in Foreclosures as Banks Move inMore U.S. homes are entering the foreclosure process, but they’re taking ever longer to get sold or repossessed by lenders. The number of U.S. homes that received a first-time default notice during the July to September quarter increased 14 percent compared to the second quarter of the year, RealtyTrac Inc. said Thursday. That increase signals banks are moving more aggressively now against borrowers who have fallen behind on their mortgage payments than they have since industrywide foreclosure processing problems emerged last fall. Those problems resulted in a sharp drop in foreclosure activity this year. October 13, 2011
HUD CHARGES UNIVERSITY OF NEBRASKA AT KEARNEY WITH DISCRIMINATING AGAINST STUDENT WITH DISABILITIESThe U.S. Department of Housing and Urban Development announced today that it is charging the University of Nebraska at Kearney and five of its employees with violating the Fair Housing Act when they refused to grant a student permission to have a therapy dog live in her University-owned apartment and illegally inquired into the nature and severity of the student’s disabilities. The student, who required the dog in order to cope with depression and anxiety, was seeking an exception to the University’s no-pet policy as a disability-related “reasonable accommodation” under the Fair Housing Act. October 12, 2011
HUD CHARGES UTAH HOMEOWNER ASSOCIATION, CONDO OWNERS WITH DISCRIMINATING AGAINST VETERAN WITH A DISABILITYThe U.S. Department of Housing and Urban Development (HUD) today announced it is charging a Park City, Utah homeowner association, property management company, and a group of condominium owners with violating the Fair Housing Act for refusing to accommodate a tenant who required an emotional support dog because of a disability. HUD brings the charges on behalf of the tenant, a Gulf War veteran with a disability. October 12, 2011
What You Need to Earn to Buy NowStagnating home prices since the recession may frustrate home sellers, but there’s a flip side. Thanks to lower or stable price trends — and to declining interest rates — homes in the Washington region are still becoming more affordable. These maps show home affordability by answering the question: What’s the yearly income needed to qualify for a mortgage to buy the typical home sold? That income threshold has declined since 2007 in all 252 shaded Zip codes. In just the past year, homes have become more affordable in almost 200 Zips. For detailed breakdowns by Zip code and comparison with 2011 prices: wapo.st/realestatemap October 12, 2011
In the Last Decade, Homeownership in the U.S. Dropped the Most Since 1940The dream of owning a home has become increasingly unattainable for many Americans, and the situation is not likely to improve soon, as the collapse of the housing market and the recession continue to take their toll. (See Housing bust worst since Great Depression .) That is the disturbing conclusion to be drawn from the U.S. Census Bureau’s newly released report “Housing Characteristics: 2010,” an overview of the national home market at the end of the last decade. October 12, 2011
HUD CHARGES NEW YORK REAL ESTATE COMPANY AND SALESPERSON WITH DISCRIMINATING AGAINST FAMILIES WITH CHILDRENThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging Metro Net Realty, LLC, a Queens, NY, real estate agency, and a salesperson for the agency with violating the Fair Housing Act by placing advertisements on Craigslist that discriminated against families with children. HUD brings the charge on behalf of the National Fair Housing Alliance (NFHA), alleging that the advertisements that stated “Looking For: Mature couple or single with no children” were evidence of an effort to exclude children from housing. October 11, 2011
Tables are Turning on Condos as a Smart InvestmentIn a report released earlier this month, Delta Associates, an Alexandria-based research and consulting firm, reported that condo sales activity in the Washington area has fallen to its lowest level since 2008.Sale prices of existing condos decreased 3.9 percent during the 12-month period ending in September, according to Delta. For new condos, sales were down 3.3 percent. Only 1,475 new condos sold in the 12-month period ending in September, compared with 2,499 new condo sales during the previous 12-month period. October 11, 2011
Appraisers get Guidelines for Setting the Value of Energy-saving Home ImprovementsThe Appraisal Institute, the country’s largest and most influential association in its field, published the long-awaited addendum Sept. 29. It’s designed to be attached to any standard appraisal report covering a property with significant green features. Owners, sellers, buyers, refinancers and real estate agents don’t have to wait for an appraiser to use it. They can download it at no cost and ask that it be made part of the appraisal submitted to the lender. October 11, 2011
Housing Bust Worst Since Great DepressionThe American dream of homeownership has felt its biggest drop since the Great Depression, according to new 2010 census figures released Thursday. The analysis by the Census Bureau found the homeownership rate fell to 65.1 percent last year. While that level remains the second highest decennial rate, analysts say the U.S. may never return to its mid-decade housing boom peak in which nearly 70 percent of occupied households were owned by their residents. The reason: a longer-term economic reality of tighter credit, prolonged job losses and reduced government involvement.Unemployed young adults are least likely to own, delaying first-time home purchases to live with Mom and Dad. Middle-aged adults 35-64, mostly homeowners who were hit with mortgage foreclosures or bankruptcy after the housing bust in 2006, are at their lowest levels of ownership in decades. October 11, 2011
Baltimore-area Home Listings Dropped in SeptemberAs prices continue to drop, Baltimore-area residents appear increasingly reluctant to put their homes up for sale, according to real estate data released Monday. The number of homes newly listed for sale fell 23 percent in September, according to Metropolitan Regional Information Systems, which runs the region’s multiple-listing service. That was the second-largest decline — surpassed only by January 2009, during the financial crisis — since the company began tracking the area in the late 1990s. October 11, 2011
HUD CHARGES MINNESOTA PROPERTY OWNER, MANAGER WITH DISCRIMINATING AGAINST ELDERLY COUPLEThe U.S. Department of Housing and Urban Development (HUD) is charging a Foley, Minnesota property owner, manager, and management company with violating the Fair Housing Act for forcing an elderly couple to vacate their apartment because of the manager’s perception that they were unable to care for themselves. HUD brings the charge on behalf of the couple, alleging that Big Norway, LLC, Northern Management Real Estate Services, Inc., and its employee, Laura Schroden, pressured the couple to move to an assisted living facility even though there was no evidence that the couple was a safety threat to themselves or to others. October 7, 2011
$1B Foreclosure Aid Program Ends with $568 Million UnspentThe federal government will disburse just $432 million from a $1 billion program to help unemployed homeowners avoid foreclosure, a government official said Thursday. The rest of the money will return to the U.S. Treasury because the Emergency Homeowners’ Loan Program has ended, and not enough people were approved in time to receive aid. The funding provided forgivable loans up to $50,000 to temporarily help unemployed or underemployed people avoid foreclosure in 32 states and Puerto Rico. October 7, 2011
Baltimore’s Vacancy Rate StabilizingHousing vacancies increased at a faster rate along much of Maryland’s Eastern Shore over the last decade than in the nation as a whole, according to a report released Thursday by the U.S. Census Bureau. Baltimore’s supply of vacant homes, though, expanded more slowly than the nation’s rate. The census report contradicts the notion that the number of Baltimore’s empty rowhouses is growing at a rapid pace while Marylanders are rushing to new developments in distant counties. The slow pace of construction in the city helped stabilize vacancy rates from 2000 to 2010, while the boom in new homes on Maryland’s eastern periphery made the rates escalate there, experts said. October 7, 2011
HUD CHARGES DALLAS-AREA PROPERTY OWNER WITH DISCRIMINATING AGAINST FAMILIES WITH CHILDRENThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging a property owner, manager and management company of Creek Point Apartments, a 200-unit, low-income tax-credit affordable housing complex in McKinney, Texas, with violating the Fair Housing Act for its restrictive policies regarding families with children. HUD brings the charges on behalf of two families who lived at Creek Point Apartments, alleging that Creek Point’s ban on children playing outside without supervision discriminated against the families and forced them to move out. One of the families was fined for violating the rule, and management charged both families substantial move out fees. October 6, 2011
Want to Refinance Your Mortgage? Get in LineMortgage rates near historic lows have sparked a refinancing boom, and lenders are struggling to handle the surge. “There’s just so much volume,” says Kristin Wilson, a senior loan officer in Bloomington, Minn., for Fairway Independent Mortgage. Clients seeking lower rates now account for about half of her business, up from 20 percent a month ago. “We can’t just ramp up by hiring inexperienced people,” she says, “because they don’t know what they’re doing.” October 6, 2011
Average Monthly Rent in Baltimore City: $1,350Average rents in the city — counting everything, from apartments to rowhouses — have risen about 9 percent this year, according to Cazoodle, a site that gathers rental listings from across the Internet.That’s pushed the average monthly rent to just over $1,350 in September, Cazoodle says. (The median rent — the point at which half the listings are pricier and half are cheaper — was $1,200 last month, up 8 percent.) It’s another way of looking at what’s happening in the rental market, which — like the housing market — can be measured in a variety of ways. October 6, 2011
More Parents Finance Their Kids’ MortgagesIn 1991, Dan Driscoll of Towson, Md., and his wife, Theresa, wanted to buy a house, but the lowest mortgage rate they could find was 9%. Meanwhile, Driscoll’s parents, who were retired, were earning 3% on their savings. At Driscoll’s suggestion, his parents financed his $75,000 mortgage at a 6% rate. Now, Driscoll has taken on a different role. Earlier this year, Driscoll’s son Dan, 31, expressed interest in buying a larger home in his father’s neighborhood. Instead of paying 4.5% for a traditional mortgage, Dan borrowed the money from his father at a 4.25% rate. The arrangement also enabled Dan to avoid paying closing costs, appraisal fees and other expenses charged by a traditional lender, Driscoll says. October 5, 2011
Suit Alleges Banks and Mortgage Companies Cheated Veterans and U.S. TaxpayersSome of the nation’s biggest banks and mortgage companies have defrauded veterans and taxpayers out of hundreds of millions of dollars by disguising illegal fees in veterans’ home refinancing loans, according to a whistleblower suit unsealed in federal court in Atlanta. The suit accuses the companies, including Wells Fargo, Bank of America, J.P. Morgan Chase and GMAC Mortgage, of engaging in “a brazen scheme to defraud both our nation’s veterans and the United States treasury” of millions of dollars in connection with home loans guaranteed by the Department of Veterans Affairs. October 5, 2011
The Case for Hiring a LawyerFIRST-TIME buyers in New York City confront a series of choices: co-op or condo, high-rise or walk-up, a second bathroom or just steps from the subway? But there seems to be consensus on at least one decision — whether to hire a real estate lawyer. In New York, unlike most places in the United States, it is customary for buyers to seek the representation of a lawyer throughout the purchasing process. Although this is not a legal requirement, some longtime real estate agents say they have never witnessed a deal completed without the buyer’s having a lawyer on hand. October 5, 2011
Survey: About One in Three Have Just a Month (or less) of Savings for Housing CostsHere’s a sobering statistic: Nearly a third of Americans surveyed in September said they would at most be able to pay their rent or mortgage for a single month if they lost their job. The survey of 1,021 adults was conducted for the Certified Financial Planner Board of Standards, Financial Planning Association, Foundation for Financial Planning and the U.S. Conference of Mayors, which together are trying to promote better financial planning. October 5, 2011
‘Solar-coaster’ Hits as Sun Sets on Federal SubsidiesThe booming U.S. solar industry faces a potential tipping point — what some call a “solar-coaster” — as the sun starts to set on billions in federal subsidies. Can it make it on its own? Can it compete with China, which U.S. officials say spent $33 billion in 2010 alone on solar loans? Energy Secretary Steven Chu posed these questions Saturday, one day after finalizing the last federal loan guarantees via a controversial program that gave a half-billion-dollar loan to newly bankrupt solar panel manufacturer Solyndra. October 4, 2011
Migration Slowdown is Sun Belt’s Loss and North’s GainThe steady flow of people moving to the Sun Belt that fueled its head-spinning boom for decades now is sputtering — a blow to the region but a boost for Northern states. It’s another sign of the decline in Americans’ penchant for moving, which has been waning since the 1980s and now stands at its lowest rate since the Great Depression. Net population gains from Americans moving to Arizona, Nevada and Florida from other states have been largely wiped out, according to migration data from the IRS. October 4, 2011
HOPE VI Program to Renovate Housing Projects Faces CutsAnnie Mai Finney looks out on the porch of her John Henry Hale Homes house in Nashville at streets on which, just a few years earlier, she didn’t feel safe at night. “There used to be drug addicts. You couldn’t sit on your porch,” she says, cane in hand. But today? “It’s better. It’s nice. Children can play out here and you don’t worry about being shot.” Finney, 75, is living in the results of a $20million HOPE VI project, a federal program that tears down distressed housing projects and rebuilds them to improve quality of life, and which is facing severe cuts in the 2012 budgeting process. October 4, 2011
After Ruling, Hispanics Flee an Alabama TownThe vanishing began Wednesday night, the most frightened families packing up their cars as soon as they heard the news. They left behind mobile homes, sold fully furnished for a thousand dollars or even less. Or they just closed up and, in a gesture of optimism, left the keys with a neighbor. Dogs were fed one last time; if no home could be found, they were simply unleashed. The judge, Sharon Lovelace Blackburn, upheld the parts of the law allowing state and local police to ask for immigration papers during routine traffic stops, rendering most contracts with illegal immigrants unenforceable and requiring schools to ascertain the immigration status of children at registration time. October 4, 2011
Fannie Mae Knew Early of Abuses, Report SaysFannie Mae, the mortgage finance giant, learned as early as 2003 of extensive foreclosure abuses among the law firms it had hired to remove troubled borrowers from their homes. But the company did little to correct the firms’ practices, according to a report issued Tuesday. Only after news reports in mid-2010 began to describe the dubious practices, like the routine filing of false pleadings in bankruptcy courts, did Fannie Mae’s overseer start to scrutinize the conduct. The report was critical of that overseer, the Federal Housing Finance Agency, and was prepared by the agency’s inspector general. October 4, 2011
Learn the Rules of Fannie Mae before Buying a Home from the AgencyLooking to buy a home from Fannie Mae? You’d better hurry. According to its most recent SEC filing, only 135,719 single-family properties were in Fannie Mae’s inventory at the end of June. Fannie Mae, which ended up with hundreds of thousands of homes as residents struggled to keep up with their mortgages in recent years, is looking to sell them with incentives for buyers. During the six-month period ending June 30, 2011, Fannie Mae acquired 107,246 homes through foreclosure but disposed of 134,016 homes. October 3, 2011
Who’s Got Positive Equity? You Might be Surprised.Negative equity and underwater homeowners are frequently in the headlines, but what about positive equity in Americans’ homes? Is there much of it left after the wealth-killing recession and real estate bust? Where is it? Who’s got equity? You might be surprised. A new study, conducted by mortgage and real estate data firm CoreLogic for this column, found that there are substantial reserves of positive equity across the country. CoreLogic maintains the largest database on home loans — 42 million active accounts, more than 80 percent of all existing mortgages — with information supplied regularly by lenders and servicers. October 3, 2011
A Little Architectural Knowledge can go a Long Way for HomeownersWhen was the last time you thought about the architectural style of your house? The listing when you bought it said it was a Colonial, but is it really? When real estate agents list a property with the multiple listing service, they have complete discretion over how to categorize the architectural style of the house.Sometimes they get it wrong. Official records occasionally get it wrong as well. And often, homeowners themselves aren’t even sure. But real estate professionals say that knowing your Colonial from your Federal- and Tudor-style home really matters when it comes to buying and selling. That’s because certain styles are more popular than others, and a home’s style can factor into its resale value, agents say. October 3, 2011
Shadow Inventory Keeps Home Prices DepressedIt used to be when someone was moving out of a house along mail carrier Rob McGregor’s route, he’d see a “For Sale” sign quickly go up in front. Now, when houses along his northern Des Moines route empty out, it’s not unusual for them to stay that way. There’s no sign or Realtor’s phone number or house-hunters stopping by for extended periods. Stagnant home prices have become part of the new normal nationwide, and one of the big reasons is the nation’s giant shadow inventory — the hundreds of thousands of homes like those on McGregor’s route that are either in foreclosure or repossessed by banks, but not yet on the market. October 3, 2011
Solar Home Business Shining in MarylandIt might not seem to be a bright investment right now, after weeks of seemingly endless clouds and rain, but solar panels are popping up on rooftops all over Maryland. With government help in the form of tax credits and grants, companies making equipment available through long-term lease and economies of scale bringing prices down, the industry is seeing steady and continuing growth in demand for drawing power from the sun. October 3, 2011
Firm: Baltimore-area ‘Shadow Inventory’ at 50,000 HomesThousands of homes are on the market in the Baltimore region. But as the commercials say, wait — there’s more. Tens of thousands of Baltimore-area homeowners are behind on their mortgage payments. At least some of their homes will end up on the market too, either as short sales or repossessed foreclosures. California-based John Burns Real Estate Consulting, which does market research for homebuilders and banks, estimates this “shadow inventory” in the Baltimore region at 50,000 homes as of June. That’s how many properties the company believes will eventually become distress sales but aren’t yet listed. October 3, 2011
U.S. Senator Begins Inquiry into Baltimore’s Housing AgencyOne of the U.S. Senate’s most aggressive watchdogs said Thursday he has begun an inquiry into Baltimore’s public housing agency, after receiving calls and emails concerning “a wide range of allegations, including possible conflicts of interest, fraud, waste and abuse of taxpayers’ monies.”Sen. Charles E. Grassley of Iowa, ranking Republican member of the Judiciary Committee, requested reams of documents from the U.S. Department of Housing and Urban Development, which oversees housing authorities around the country and steers millions of dollars a year to Baltimore. October 3, 2011
Number of Troubled Homeowners Rises, Federal Regulator SaysThe number of homeowners behind on their mortgages increased during the second quarter of the year, even as the number of struggling borrowers who received help with their loans decreased by nearly 20 percent, according to a government report released Thursday. The Office of the Comptroller of the Currency, a federal banking regulator, found that 12 percent of borrowers had missed at least one mortgage payment or were in foreclosure during the second quarter. That figure is up from 11.4 percent the previous quarter but still lower than during the same period a year earlier. September 30, 2011
9 American Cities Going BrokeOf the 7,800 bonds in the U.S. secured by state or local governments, only 25 are currently speculative-grade, or junk-bonds, rated by Moody’s Ba1 or lower. Only municipalities received such low ratings, and the reasons vary. Moody’s report, “A Look at Speculative-Grade Local Governments in the Wake of the Recession,” details the economic issues that have lead each into junk-bond territory. 24/7 Wall St. has analyzed the nine worst cities, whose credit rating is Ba2 and lower. September 30, 2011
HUD CHARGES HOUSING PROVIDERS WITH DISCRIMINATION FOR EVICTING TENANTS OVER VISITOR’S SUPPORT DOGThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging the owner and landlord of an apartment building in Reno, Nevada, with violating the Fair Housing Act for evicting two tenants after a friend with a disability visited the tenants with his emotional support dog. HUD brings the charge on behalf of the tenants, alleging that the DeAngeli Family Trust and Peter DeAngeli, the respective owner and landlord of the property, engaged in unlawful discrimination by refusing to make a reasonable accommodation to the building’s “no pets policy” for a person with a disability. HUD also alleges the housing providers retaliated against the tenants by evicting them when they protested the housing providers’ refusal to grant the accommodation. September 29, 2011
U.K. Mortgage Approvals Increase to Highest in 20 MonthsU.K. mortgage approvals rose in August to the highest in 20 months as borrowing costs at a record low helped provide support to the housing market. Lenders granted 52,410 loans to buy homes, the most since December 2009, compared with a revised 49,644 in July, the Bank of England said today in London. Economists forecast that approvals would rise to 49,700 from an initially reported 49,239 in July, based on the median forecast of 18 economists in Bloomberg News survey. September 29, 2011
U.S. Mortgage-Aid Program Is Shutting Down, With Up to $500 Million UnspentIn summer 2010, Congress set aside $1 billion for a program intended to bail out people in danger of losing their homes to foreclosure. It was estimated that the program, administered by the federal Department of Housing and Urban Development, would help as many as 30,000 households. But the program is now ending after achieving lackluster results and stirring widespread recrimination. Fewer than 15,000 households are expected to receive help despite enormous demand, and perhaps half of the money will go unspent. September 29, 2011
HUD CHARGES MASSACHUSETTS LANDLORD WITH DISCRIMINATING AGAINST FAMILIES WITH CHILDRENThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging Craig Robbins, a Springfield, Massachusetts landlord, with violating the Fair Housing Act for allegedly refusing to rent or show an apartment to families with children because he claimed he did not have certification that the apartment was free of lead-based paint. September 28, 2011
Spring Buying Boosts Home Prices, Market Still SluggishU.S. home prices showed signs of stabilizing in July, but more drops are expected later this year. Prices rose 0.9% in July over June, marking the fourth-consecutive month of increases for the Standard & Poor’s Case-Shiller index released Tuesday. The increases were not a surprise given typical home-buying boosts in the spring and summer. S&P cautioned that continued increases through the end the year and better annual results must occur before it could confirm a housing market recovery. September 28, 2011
Greece Passes Property Tax Increase in Effort to Avert Default, Secure BailoutThe Greek government took a crucial step Tuesday to avoid default, winning parliamentary approval for a highly controversial property tax increase that could help the country meet international conditions for more bailout money. With global investors showing some optimism that debt problems in Greece and elsewhere in Europe could be resolved, financial markets rose. The German stock market was up 5.3 percent, and the French stock market gained 5.7 percent. U.S. stocks ended the day up 1.1 percent as measured by the Standard & Poor’s 500-stock index. Asian markets were slightly higher in early trading Wednesday. Japan’s Nikkei 225 index ended its morning session up 0.2 percent. September 28, 2011
Listing of the Week: Grass Dome Home in FloridaYou may be used to mowing your backyard, and perhaps your front yard, but how about having to mow the tops and sides of your house? For homeowners of a grass dune home in Florida, it’s a reality.The little rounded piece of Atlantic Beach real estate is for sale for $1.2 million. Originally listed for $1.85 million, the property has bounced on and off the market with a few price cuts along the way since 2009. Its latest price cut, from $1.35 million to $1.2 million, is a decrease of 11.1 percent. Median Atlantic Beach home values are at $214,200, down about 5 percent year over year, although prices have been edging higher in recent months. September 28, 2011
Getting your home ready for the big chillWhile September brings the first day of fall, October can be the harbinger of the winter and all of its frigid pitfalls. It’s best to be prepared for the frost and snow with a few simple tasks that will prevent drafts, frosty windows and every homeowner’s nightmare: Busted pipes. A good place to start prior to tackling problem areas in your home is a home energy audit. This will pinpoint specific places in your house where heat escapes. The U.S. Department of Energy has a do-it-yourself energy assessment, or you can hire someone to do the audit for you. September 28, 2011
HUD CHARGES WASHINGTON STATE PROPERTY OWNER WITH DISABILITY DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) today announced that it has charged the owner and manager of a Lakewood, Washington trailer park with discriminating on the basis of disability. HUD brings the charge on behalf of the Fair Housing Center of Washington, alleging that Deidra Miller, the owner of Terrace Trailers, and property manager Claudia Welch refused to make a reasonable accommodation to their “no pets” policy for testers posing as applicants with disabilities who needed service dogs. September 27, 2011
Some Clean-energy Firms Found U.S. Loan-guarantee Program a Bad BetThe Obama administration’s vaunted initiative to catalyze the U.S. clean-energy industry — under attack for betting half a billion dollars on the solar-panel manufacturer Solyndra, which closed last month — has become a case study of what can go wrong when a rigid government bureaucracy tries to play venture capitalist and jump-start a nascent, fast-changing market. September 27, 2011
U.S. Mortgage Settlement with Bank of America Costly to Taxpayers, Report SaysGovernment regulators may have cost taxpayers billions of dollars by settling mortgage-related claims with Bank of America before addressing questions about the methods used to evaluate the loans involved, according to a government report due out Tuesday. Senior managers at the Federal Housing Finance Agency, the independent agency that oversees government-sponsored mortgage giants Fannie Mae and Freddie Mac, failed to act in a timely way to “significant concerns” about the process Freddie Mac employed to determine which faulty loans it wanted Bank of America to buy back, the agency’s inspector general found. September 27, 2011
Reading, Pa., Knew It Was Poor. Now It Knows Just How Poor.Ashley Kelleher supports her family on the $900 a month she earns as a waitress at an International House of Pancakes. Louri Williams packs cakes and pies all night for $8 an hour, takes morning classes, and picks up her children in the afternoon. Teresa Santiago takes complaints from building supply customers for $10 an hour, not enough to cover her $1,900 in monthly bills. These are common stories in Reading, a struggling city of 88,000 that has earned the unwelcome distinction of having the largest share of its residents living in poverty, barely edging out Flint, Mich., according to new Census Bureau data. The count includes only cities with populations of 65,000 or more, and has a margin of error that makes it difficult to declare a winner — or, perhaps more to the point, a loser. September 27, 2011
Students Help Dream Facelift for Cross Street MarketLeaders in Federal Hill hope the students’ work will lead to real changes in their neighborhood. It was the Federal Hill Main Street program that approached the architecture programs at the University of Maryland and Morgan State about developing new visions for Cross Street Market and the surrounding business district. September 27, 2011
HUD CHARGES WISCONSIN LANDLORD WITH REFUSING TO RENT TO AFRICAN AMERICAN COUPLEThe U.S. Department of Housing and Urban Development (HUD) announced today that it has charged a La Crosse, Wisconsin landlord with violating the Fair Housing Act for refusing to rent an apartment to an African American couple because of their race. HUD brings the charge on behalf of the couple, alleging that Geneva Terrace, Inc. and Victoria Gerrard, the owner of Geneva Terrace Apartments, and property manager Nicolai Quinn refused to show an apartment to the complainants. Additionally, they falsely represented to the couple and other black applicants that no units were available, while informing white applicants of available units and encouraging them to apply. September 26, 2011
20-percent Rule for Mortgage Down Payments Unlikely in Near FutureRemember the proposed requirement from six federal agencies that home buyers make down payments of at least 20 percent if they want the lowest interest rates? Remember the controversy that erupted over the plan last spring, when labor unions joined with bankers, civil rights groups, mortgage companies, real estate agents and consumer advocates to try to make sure it didn’t take effect? A bipartisan group of 39 senators and more than 250 Democrats and Republicans in the House even signed letters demanding that the agencies ditch the proposal on grounds that it would greatly harm a housing market in deep trouble. September 26, 2011
Average Rate on the 15-year Loan Falls to 3.29 Percent; Rates Will Likely Fall Lower Next WeekFixed mortgage rates hovered at record lows for a third straight week. They are likely to fall even further now that the Federal Reserve said it would shuffle its holdings to drive down long-term interest rates.The average rate on the 30-year fixed mortgage was unchanged at 4.09 percent this week, Freddie Mac said Thursday. That’s the lowest rate seen since 1951. The average rate on the 15-year mortgage ticked down to 3.29 percent. Economists say that’s the lowest rate ever for the loan. September 26, 2011
Housing Market is Terrific, If You are RichIt’s starting to feel as if there are two housing markets. One for the rich — and international buyers — and one for everyone else. Consider foreclosure-ravaged Detroit. In the historic Green Acres district, a haven for hipsters, a pristine, three-bedroom brick Tudor recently sold for $6,000 — about what a buyer would have paid during the Great Depression. Yet just 15 miles away, in the posh suburban enclave of Birmingham, bidding wars are back. Multimillion-dollar mansions are selling quickly. Sales this August were up 21% from the previous year. The country club has ended its stealth discounts on new memberships. And Main Street’s retail storefronts are full. September 26, 2011
Flood Victims Getting Fed Up With CongressStanding in the living room of their house, now full of mud, slime and debris, Helen and Peter Kelly cannot believe that Congress is bickering over disaster aid to people like them. The roaring waters of the Susquehanna River burst into their home more than two weeks ago. “Water — you work with it every day, and then it destroys your whole life,” Mrs. Kelly said. Her husband, still looking shell-shocked, said: “We lost everything. Stove, washer, dryer, TV. Hot water heater, clothes, dishes, refrigerator. Everything, just gone.” The Kellys also lost confidence in government and politicians. September 26, 2011
Vetting the LenderBEFORE buying a house, borrowers will undoubtedly do a thorough check of the property, examining its structural soundness and the surrounding neighborhood, among other things; they will research the best type of loan, comparing interest rates, terms and fees. But not all borrowers do due diligence on their lenders. Ferreting out good information is not that easy. For one thing, different kinds of lenders are held to different rules, licenses and disclosure requirements. Some states, like New York and New Jersey, require mortgage brokers to complete criminal background checks through the state police. September 26, 2011
In a Bronx Complex, Doing Good Mixes With Looking GoodSometime late this winter people will start moving into Via Verde, the subsidized housing development now rising on a long, narrow slice of formerly contaminated city property in what used to be one of the worst stretches of the South Bronx. The co-ops and rentals for low- and moderate-income residents spiral around what will be a leafy, semi-enclosed court. Single-family town houses are taking shape alongside a 20-story apartment tower overlooking the sea of housing complexes that have transformed the neighborhood in recent years. September 26, 2011
Foreclosure Crisis Ebbing More Slowly in Baltimore Area than Most RegionsThe Baltimore region is middle of the pack among large metro areas for its percentage of mortgages that are seriously delinquent — 90 days or more behind. But our area saw a smaller improvement from the beginning of 2010 to the beginning of this year than most places. Among the 100 largest metro areas, the serious delinquency rate dropped faster in 77 other regions than in the Baltimore area, according to figures from Foreclosure-Response.org, which analyzed LPS Applied Analytics data. September 26, 2011
Metro Detroit Officials Don’t Expect Floods to Lower Tax AssessmentsThe sewer backups that hit several metro Detroit communities in May and damaged thousands of homes are not likely to have an impact on property tax assessments, city and township officials said. On May 25, heavy rains hit the area causing basements to flood with raw sewage and storm water. At city council and special meetings that followed, residents wondered about the impact of a flood risk on property values in an already sagging real estate market. September 26, 2011
Rising Rents Lessen the Affordability of HousingMore renters found housing unaffordable last year as incomes declined, and more are likely to be squeezed this year, given rising rents. The share of renters paying 30% or more of their household income on housing costs — the government threshold to determine if housing is unaffordable — rose to 53% last year from 51.5% in 2009 and about 50% in 2008, according to 2010 Census data released today. While median rents remained stable last year at $855 a month, median national household incomes, adjusted for inflation, fell 2.2% — putting the squeeze on renter budgets. September 22, 2011
Home Sales Jump in August as Investors Swoop InThe number of Americans who bought previously occupied homes rose in August. But sales were driven by an increase in foreclosures, a sign that home prices could fall further and slow a housing recovery. The National Association of Realtors said Wednesday that home sales rose 7.7% last month to a seasonally adjusted annual rate of 5.03 million homes. That’s below the 6 million economists say is consistent with a healthy housing market. Last month’s pace was slightly ahead of the 4.91 million sold in 2010, worst sales level in 13 years. September 22, 2011
$1B Foreclosure Aid Program Helps Fewer Than PlannedA $1 billion federal program to help financially strapped homeowners avoid foreclosure will not meet its goal of helping 30,000 homeowners, a government official said Tuesday. The Emergency Homeowners’ Loan Program, run by the Department of Housing and Urban Development, has until Sept. 30 to commit the $1 billion to homeowners in 32 states and Puerto Rico. Uncommitted funds will go back to the U.S. Treasury. HUD spokesman Brian Sullivan said Tuesday that the agency — and state and local housing groups — are “working feverishly” to get applicants through the pipeline in time, but “we now believe we will not meet that ambitious goal.” September 21, 2011
San Francisco OKs ‘Bird-safe’ Building StandardSan Francisco is for the birds — at least its new buildings will be. An ordinance approved Tuesday by the Board of Supervisors requires that new buildings in parts of the city use “bird-safe” standards that reduce the risk of winged creatures hitting panes of glass. Advocates say that hundreds of millions of birds die each year after flying into glass windows or walls in the USA, and that San Francisco’s action will boost efforts to encourage bird-safe buildings nationally. September 21, 2011
Cities Ease Rules to Encourage Urban FarmsTomatoes hang from vines, rows of lettuce and peppers are ready to harvest, and the scent of compost fills the air. This farm isn’t in rural Illinois. Herbs growing at the edge of sidewalks, traffic noise and the looming skyline identify it as City Farm, a 1-acre farm on unused city property downtown. It’s a non-profit venture that sells 10,000-20,000 pounds of food each year to high-end restaurants, at its farm stand and a farmers market, and to people who buy shares of its crops. September 21, 2011
Housing Starts Drop in August, Building Permits RiseHousing starts fell 5% in August from July as fewer apartments were started and Hurricane Irene halted some construction, the Commerce Department said Tuesday. But in a hopeful sign, building permits for future construction rose 3.2% from July, and 7.8% above August 2010. Commerce says builders began work on a seasonally adjusted 571,000 homes last month. That’s less than half the 1.2 million economists say is consistent with healthy housing markets. September 21, 2011
Mortgage Finance Head: Shift Risk from TreasuryGovernment-controlled mortgage buyers Fannie Mae and Freddie Mac may reduce taxpayer risk by requiring more mortgage insurance from borrowers and charging lenders higher fees, steps that could increase borrowing costs, the head of their government caretaker agency said Monday. Reshaping the mortgage giants three years after the federal government took over them over requires spreading lending risks, Federal Housing Finance Agency acting director Edward DeMarco said Monday at a mortgage conference in Raleigh. September 20, 2011
Housing Remains in Deep Slump as Consumers Stay on the SidelinesThe economy appears to be on a cusp, flirting with another economic downturn after more than two years of tepid recovery from the most severe recession in the post World War II era. According to Fannie Mae’s (FNMA/OTC) Economics & Mortgage Market Analysis Group, the recovery’s fragility makes it vulnerable to any additional shocks that might cause the economy to slip back into a recession. Possible shocks include a deepening of the financial turmoil in Europe; a dramatic slowdown in emerging economies, especially China; and renewed unrest in the Middle East that could send oil prices surging again. September 20, 2011
Time to Refinance — Again?With mortgage rates at record lows, even people who refinanced just last year are looking to take out a new mortgage, mostly because they are the lucky few who can qualify for one. The average rate on a 30-year fixed-rate mortgage has recently dropped closer to 4 percent, hitting 4.09 percent this week — the lowest level since Freddie Mac started tracking the data in 1971. The 15-year fixed-rate mortgage, a popular refinancing tool, fell to an all-time low of 3.3 percent on average, Freddie Mac reported. September 20, 2011
How to Keep Your Property Dry before a Big StormThis year now has the distinction of being the tenth wettest August on record for the Washington region. The soggiest of the weather came with Hurricane Irene late in the month, leaving record rainfall and flooding in its wake. And Tropical Storm Lee made matters worse until it blew out to sea.No doubt you might be concerned about water in the basement or pooling water that isn’t draining from your property. Here are a few ways to help keep your property dry before the next rainfall. These guidelines can help prevent short-term problems, such as a muddy back yard, and, more importantly, enable you to take steps now to prevent long-term problems such as basement flooding and too much water puddling against the walls of your house. September 20, 2011
Saving on Mortgage TaxesHOMEOWNERS looking to refinance their mortgage will need to compare interest rates, loan terms and fees, but some who live in New York may also want to arrange for what’s known as a mortgage assignment, when the balance on the loan is transferred to the new lender from the old. Not all lenders permit such transfers, but if both do, borrowers can skip paying a second helping of mortgage recording taxes (they paid the first round when they bought the home). September 20, 2011
Tight Standards Make Mortgages Tough to GetHome buyers such as Bob and Janet Zych have fueled the U.S. housing market for decades. They have excellent credit with scores that top 800, life-long careers and investment portfolios that have set them up for a comfortable retirement, they say. But this year, “after faxing a ream of paper” about their finances, they got so fed up applying for a home loan that they simply wrote a check for their new, $85,000 vacation condo in Phoenix. Trying to get a loan “was just a nightmare,” says Bob Zych, 65, a manager for Mohawk Industries in Omaha. Following the greatest housing crash since the Great Depression, home lending standards have tightened to their strictest levels in decades, economists say. And people such as the Zychs and others nationwide are paying the price. September 15, 2011
Reverse Mortgages Don’t Always WorkTrusted celebrity pitchmen such as Henry Winkler, Robert Wagner and James Garner do a good job telling older homeowners about the benefits of a reverse mortgage. Here’s what they don’t tell seniors: Reverse mortgages are expensive, complicated and always changing. The government-insured program, which is available to homeowners who are 62 and older, has helped many seniors tap their home equity for living expense. But it’s not a lifeline for everyone. It hasn’t prevented seniors from defaulting on their taxes and homeowners insurance and possibly losing their homes to foreclosure. Delinquency has grown in recent years. September 13, 2011
Frequently Asked Questions about HUD’s Reverse MortgagesThe Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at (800) 510-0301 or downloading their free booklet, “Use Your Home to Stay at Home,” a guide for older homeowners who need help now. It’s smart to know more about reverse mortgages, and decide if one is right for you! September 13, 2011
When Disaster Strikes, Help May Arrive at Tax TimeIn recent months, homeowners across the country have been forced to flee their homes to escape tornadoes, hurricanes, wildfires and other harbingers of doom. Now comes the clean-up, and it won’t be cheap. Recovery will be particularly costly for thousands of families in the Northeast whose homes were flooded by Hurricane Irene. Standard homeowners policies don’t cover flood damage, and only a fraction of homeowners in New England have federal flood insurance. You may, however, get some relief when you file your tax return. Personal casualty losses are deductible, if certain conditions are met. September 13, 2011
Her Bank Got Enough Help When It Was in Trouble. She Didn’t.For those who live in the alternate universe that is New York outside of Manhattan, brownstone Brooklyn and assorted upper-income offshoots, Mimi Pierre Johnson’s story is depressingly familiar. She and her husband bought their four-bedroom home in Elmont, on Long Island, for $413,000 in 2005. Then the recession blew in. Her husband lost his construction job, her real estate work slowed and their boiler wheezed and died. Their once-reasonable mortgage resembled a forbidding mountain. September 13, 2011
In Deal, Hundreds of Mentally Ill People Will Leave Confinement of Nursing HomeHundreds of mentally ill people who have been confined to nursing homes, sometimes in prisonlike conditions, would move to apartments or other housing within three years under a legal settlement with New York State. The settlement resolved a case that was filed in Brooklyn federal court in 2006 and that accused the state of violating the spirit of its own longstanding rules for housing mentally ill people. In researching the case, the plaintiffs found that psychiatric centers and nursing homes had developed “turnaround agreements, which essentially were written agreements to transfer patients back and forth,” Veronica S. Jung, senior staff attorney for New York Lawyers for the Public Interest, which helped to represent plaintiffs, said Monday. September 13, 2011
In Baltimore, Homes for $10,000 — and LessAndrew Wells is hoping to buy a Baltimore home for around the cost of an old car: Less than $10,000.Turns out he’s in good company. One of every 10 city homes sold during the first half of the year — about 275 in all — fell in that price range. Twice as many sold for under $20,000. Often foreclosures, these properties are usually in bad shape but seem like deals to real estate investors and the occasional hopeful owner-occupier — such as Wells. September 13, 2011
Association Reserves Hurt by Low Interest RatesMany community associations, including one you might live in, are concerned about their reserve accounts these days. Community associations collect fees from residents who live in a defined location, such as a condominium building or a neighborhood of homes, and use those funds to pay for emergency repairs and maintenance. But with interest rates so low on traditional savings accounts, I’m hearing from some board members who are concerned they’re not making money on reserve accounts. If you had put $50 in a certificate of deposit three years ago, it might now be worth only $53. September 12, 2011
Sizing up Sears ‘Kit’ Homes for Today’s Living StyleImagine purchasing all of the elements that go into building a house — pre-cut boards, nails, hinges, doorknobs, pipes, wiring, shingles and all — by mail, then using a detailed, 75-page instruction book to put them together yourself. Then imagine that you did such a good job of it that 80 years later, the house is not only standing and functional, but it’s also coveted by home buyers. That’s the novelty of the Sears “kit” home, a product that was common to the Washington area during the early part of the last century. Today, thousands of the homes can be found in in Arlington County, Alexandria, Silver Spring and the District’s Chevy Chase and Palisades neighborhoods. September 12, 2011
Got rain? How to Carry the Water to the Right SpotThe downspouts from my roof empty out right next to my home. I think this contributes to my wet basement. I know it keeps my grass soggy. Friends tell me to just install the simple plastic downspout diverters or splash blocks and all will be well. I’m convinced those are pretty much useless. What’s a good long-term solution to dealing with lots of roof water? September 12, 2011
HUD CHARGES WISCONSIN LANDLORD FOR INSISTING ON A MAN IN THE HOUSEThe U.S. Department of Housing and Urban Development (HUD) is charging a La Crosse County, Wisconsin landlord with violating the Fair Housing Act for refusing to rent a house to a single mother because there was no adult male to live with her. HUD brings the charge on behalf of the single woman, claiming that the owner of the property, Dovenberg Investments, LLC and property manager Darlene Dovenberg refused to rent a house in rural Bangor to the woman because she, among other things, did not have a man “to shovel the snow.” September 9, 2011
Mortgage Rates Fall to Lowest Level Since 1950s, Few QualifyFixed mortgage rates fell this week to the lowest levels in six decades. But few Americans can take advantage of the rates to refinance or buy a home. The average rate for a 30-year fixed mortgage fell to 4.12%, from 4.22%, Freddie Mac said Thursday. That’s the lowest level on records dating back to 1971. Freddie Mac says the last time rates were cheaper was 1951, when most home loans lasted just 20 or 25 years. The average rate on a 15-year fixed mortgage, a popular refinancing option, fell to 3.33% from 3.39%. That’s the lowest on records dating to 1991 and likely the lowest ever, according to economists. September 9, 2011
The 5 Tasks You Must DoThe most important home maintenance tasks, said J.D. Grewell, a Silver Spring-based private home inspector for nearly 40 years, are not that onerous or time-consuming. His must-do list is short — only five items. There can be additional climate-related ones, but these five, he said, should be done, no matter where you live in the United States. September 9, 2011
Settlement Said to Be Near for Fannie and FreddieRegulators are nearing a settlement with Fannie Mae and Freddie Mac over whether the mortgage finance giants adequately disclosed their exposure to risky subprime loans, bringing to a close a three-year investigation. The proposed agreement with the Securities and Exchange Commission, under the terms being discussed, would include no monetary penalty or admission of fraud, according to several people briefed on the case. But a settlement would represent the most significant acknowledgement yet by the mortgage companies that they played a central role in the housing boom and bust. September 9, 2011
Handicap-accessible Housing Market is Still a Work in ProgressWhen their father died in May, Holly Smith and her two sisters thought his home in the Heritage Hunt active-adult community in Gainesville would sell quickly to someone looking for a wheelchair-accessible property. George F. Smith Jr., a career Army officer, and his wife had bought the spacious new home — with its wide hallways and doorways and its one-level living — in 2005 because it backed onto a golf course and they both loved to play golf. The house was listed at $589,000 this summer. But the family hasn’t had a single offer. They’ve struggled to connect with buyers who need the special features or who value them for possible future use. September 6, 2011
If You aren’t Sure What Your Homeowner’s Insurance Covers, Ask Your AgentImagine my surprise when the earth started to shake recently. That surprise was only equaled when I pulled out my 25-page, single-spaced homeowner’s insurance policy and began reading. It quickly became evident that deciphering what was covered and what was not covered was no easy task. Just what is homeowner’s insurance? How much insurance do I need? What does it exclude? How can I make sure that all my reasonably foreseeable risks are covered by insurance? September 6, 2011
‘Visitable’ Housing Gaining SupportA number of public and private groups are pushing the idea that all new housing should at least be “visitable,” or accessible to people with mobility issues. So if Grandpa’s in a wheelchair or junior has broken a leg in a football game, either one can come to dinner without a lot of fuss. The U.S. Conference of Mayors, citing the growing numbers of seniors and people with mobility issues, adopted a resolution in June 2005 supporting local and state initiatives to promote visitable housing. September 6, 2011
House Watch: Delaying Exterior Trim Upkeep Could Cost You Big BucksWhen most people buy a house, they tend to focus on the here and now — what it looks like and all the good times they will have living there. To the extent that they think about resale at all, the conversation centers on the features that may attract future buyers. The real key to resale, though, is how well the owners maintain the house, but this issue generally draws little interest at the time of purchase and often falls off the radar screen soon after move-in. September 6, 2011
Uncle Sam is a Reluctant Landlord of Foreclosed HomesFor sale or rent by distressed owner: 248,000 homes. That’s how many residential properties the U.S. government now has in its possession, the result of record numbers of people defaulting on government-backed mortgages. Washington is sitting on nearly a third of the nation’s 800,000 repossessed houses, making the U.S. taxpayer the largest owner of foreclosed properties. With even more homes moving toward default, Fannie Mae, Freddie Mac and the Federal Housing Administration are looking for a way to unload them without swamping the already depressed real estate market. September 6, 2011
U.S. Is Set to Sue a Dozen Big Banks Over MortgagesThe federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation. The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter. September 2, 2011
HUD CHARGES IOWA LANDLORDS WITH DISCRIMINATING AGAINST CHILD WITH CEREBRAL PALSY AND HER MOTHERThe U.S. Department of Housing and Urban Development (HUD) today announced that it is charging John and Nancy Meany, owners of an apartment building in Traer, Iowa, with violating the Fair Housing Act for refusing to accommodate a request from a family with a child with cerebral palsy. HUD brings the charge on behalf of the child and her mother, claiming the owners refused to allow the seven-year-old girl to have a medically-prescribed emotional support animal. Additionally, the owners allegedly told the mother that if she got the animal, she would have to either move or pay more money to stay. September 1, 2011
Nevada Says Bank Broke Mortgage SettlementThe attorney general of Nevada is accusing Bank of America of repeatedly violating a broad loan modification agreement it struck with state officials in October 2008 and is seeking to rip up the deal so that the state can proceed with a suit against the bank over allegations of deceptive lending, marketing and loan servicing practices. In a complaint filed Tuesday in United States District Court in Reno, Catherine Cortez Masto, the Nevada attorney general, asked a judge for permission to end Nevada’s participation in the settlement agreement. This would allow her to sue the bank over what the complaint says were dubious practices uncovered by her office in an investigation that began in 2009. September 1, 2011
Spring was Kind to Home Prices, but Future isn’t BrightU.S. home prices rose 3.6% in the second quarter from the first, boosted by the spring buying season. But prices are expected to retreat this fall because of the struggling economy. Even though prices rose quarter to quarter, they remain 5.9% below where they were last year, putting second-quarter U.S. home prices at 2003 levels, according to the Standard & Poor’s/Case-Shiller home price index released Tuesday. The spring increase was widely expected, given long-standing buying patterns. When adjusted for seasonal factors, U.S. home prices in the second quarter were basically flat with the quarter before, the data show. August 31, 2011
FAIR HOUSING REPORT DEMONSTRATES HUD’S EFFORTS TO END HOUSING DISCRIMINATIONA report released today by the U.S. Department of Housing and Urban Development (HUD) shows that the agency is resolving individual housing discrimination complaints faster, increasing its focus on complaints that affect multiple people, and launching more investigations using its authority to initiate cases on behalf of discrimination victims where no one has filed a complaint. HUD’s Annual State of Fair Housing Report also illustrates how the agency is helping municipalities and state and local agencies receiving HUD funding to comply with civil rights requirements and holding non-compliant recipients accountable. August 31, 2011
HUD LAUNCHES DEVELOPMENT OF A NATIONAL HOUSING AND TRANSPORTATION AFFORDABILITY INDEXThe U.S. Department of Housing and Urban Development (HUD) today announced it has awarded The Manhattan Strategies Group, LLC and its subcontractor the Center for Neighborhood Technology (CNT) a $3.2 million contract to create a national Housing and Transportation Affordability Index. The groundbreaking index will provide potential homebuyers with a true estimate of both housing and transportation costs that can in turn help them make a more educated decision. August 31, 2011
New Mortgage Limit May Set Buyers BackFOR most potential buyers, the impending change in mortgage limits is just another obscure wrinkle in federal policy. But for some New Yorkers, it could mean the difference between buying and not buying a new home. On Oct. 1, when the limit on federally guaranteed loans drops to $625,500 from the current level of $729,750, hundreds of buyers in the city and nearby suburbs will either have to come up with larger down payments to stay under the new limit or face the prospect of applying for jumbo loans — anything above $625,500 — which have higher interest rates. August 31, 2011
Katrina’s Sixth Anniversary Finds Gulf Coast on MendThe Gulf Coast mixed somber ceremonies with New Orleans’ signature flair to mark the sixth anniversary of Hurricane Katrina and honor those killed during the catastrophic storm that drowned much of the region’s dominant city and devastated coastal towns in Mississippi, Alabama and Louisiana. Monday marked the passage of six difficult years of rebuilding for the region, which is showing signs of a strong recovery from the costliest natural disaster in U.S. history. The storm killed more than 1,800 people, a majority of them in New Orleans where water filled up the city after levees and floodwalls built by the Army Corps of Engineers failed. Despite the hardships, many residents were upbeat. August 31, 2011
Think You Own Your House? Check the DeedStephanie Neely, the city treasurer, deals regularly with giant banks and multimillion-dollar budgets. But for all her financial expertise, Ms. Neely was unprepared when she learned that the name of a deceased cleric from an obscure Islamic sect was on a deed claiming he and his temple owned the Kenwood home she had lived in since 2002. Ms. Neely found out last month that a deed filed with the Cook County Recorder of Deeds listed the Moorish Science Temple of America as the owner of her home in the 1100 block of East 44th Street. It was one of more than 30 Chicago-area properties so listed. A reporter for Medill News Service in Chicago discovered the document while researching a story on a foreclosed property next door and brought it to Ms. Neely’s attention. August 31, 2011
In 50-state Foreclosure Negotiations, Dispute Underlines Basic QuestionsA recent and acrimonious dispute among state officials over a possible legal settlement to address nationwide mortgage abuses is underscoring basic questions about what the effort should accomplish. In settling claims against the largest banks related to “robo-signed” foreclosure documents and other flawed paperwork, should officials seek to rectify all the wrongs of the mortgage crisis? How big a settlement is big enough? What approach will net the best deal for struggling homeowners? August 31, 2011
Analysis: Little-known Bureaucrat is Most Powerful Man in Housing PolicyThe most powerful man in housing policy today isn’t President Obama. It’s not Treasury Secretary Timothy F. Geithner or House Financial Services Chairman Spencer Bachus (R-Ala.). It’s a little-known bureaucrat named Edward DeMarco. DeMarco is the acting director of the Federal Housing Finance Agency. Which means that, under the terms of the 2008 Housing and Economic Recovery Act, DeMarco is in charge of supervising mortgage giants Fannie Mae and Freddie Mac. As such, any attempts the Obama administration might make to use Fannie and Freddie to stabilize the housing market run directly through DeMarco’s office. And in many of the attempts it has made, the Obama administration has not exactly found DeMarco to be a willing partner. August 31, 2011
Subprime Mortgage Bonds Get AAA Rating From S&P Denied to U.S.Standard & Poor’s is giving a higher rating to securities backed by subprime home loans, the same type of investments that led to the worst financial crisis since the Great Depression, than it assigns the U.S. government. S&P is poised to provide AAA grades to 59 percent of Springleaf Mortgage Loan Trust 2011-1, a set of bonds tied to $497 million lent to homeowners with below-average credit scores and almost no equity in their properties. New York-based S&P stripped the U.S. of its top rank on Aug. 5, saying Washington politics were making the country less creditworthy. August 31, 2011
Slidell Businessman Quickly Acquitted of Theft Involving Contract to Build HomeAfter deliberating for less than 15 minutes Tuesday, a St. Tammany Parish jury found a Slidell businessman not guilty of operating what prosecutors had described as a post-Hurricane Katrina ponzi scheme, in which a woman paid him $64,750 for a modular home and got just a pile of mud in return. Strate sold a modular home in 2007 to Slidell resident Cheryl Adams, who’d lost her Fifth Street house to the storm. The contract required 50 percent, or $64,750 up front, which Adams paid in August 2007 from the money she’d gotten from her insurance company. The home was to be delivered and installed by Christmas. August 31, 2011
Hurricane Katrina’s 6th anniversary brings second lines, speeches, supportSix years after Hurricane Katrina changed the New Orleans area forever, residents marked the solemn anniversary Monday with speeches, second-lines and even a free medical clinic. Officeholders and citizens alike expressed an abiding frustration that the recovery from the storm and its destructive floodwaters hasn’t moved faster. Speaking at a morning ceremony honoring people who perished in the Lower 9th Ward, Sen. Mary Landrieu, D-La., said the still largely empty neighborhood is “not where it deserves to be.” August 31, 2011
After Irene, What Will Insurance Cover?Thousands of East Coast residents whose homes were damaged by Hurricane Irene could find themselves stuck with bills that aren’t covered by their homeowners insurance policies. Estimates of damage left behind by Irene range from $3 billion to $7 billion — much of it flood-related, which isn’t covered by private homeowners insurance. While many homeowners in hurricane-prone areas have federal flood insurance, less than 20% outside the Gulf Coast have it, says Robert Hunter, director of insurance for the Consumer Federation of America. “There are going to be some very despondent people who rejected flood insurance coverage because they thought, ‘It couldn’t happen to me,’” says Bob Rusbuldt, CEO of the Independent Insurance Agents & Brokers of America. August 30, 2011
Tips for Filing a Homeowner’s Claim Post-IreneIf it wasn’t the wind and the rain, it was the rising water that damaged countless homes from North Carolina to Vermont. Homeowners are picking up the soggy pieces and assessing the damage after Irene swept through. Although the hurricane-turned-tropical storm didn’t cause as much destruction as initially feared, it touched communities in a dozen states and left an estimated $3 billion to $7 billion of mangled siding, downed trees and worse in its wake. August 30, 2011
Is Green Good for Home Resale Value?Home energy efficiency and sustainability have been major policy priorities for the Obama administration, but lurking in the background are two pesky questions: Beyond the documentable savings on utilities bills, do such steps add to the resale value of a home? And do they make it easier to sell your property? Housing groups and housing officials say definitive data covering multiple regions of the country are scarce. But some localized research projects in Oregon, Washington state and California offer promising hints. August 30, 2011
Do You Have to Escrow for Taxes?Why does your lending institution require you to escrow money so that it can pay your real estate tax and your homeowner’s insurance policy? The lending community says escrows — or impounds — help you manage your budget. Instead of having to make a large payment yearly or semi-annually, you send one-twelfth of your tax obligation each month to the lender, who will pay the lump sum for you when it comes due. Lenders say the arrangement gives clients peace of mind and protects them from losing their homes by ensuring timely payments. August 30, 2011
To Protect Real Estate Assets, be PreparedWhen life-changing events occur — marriage, divorce, death, incapacity, interstate moves or estate planning — a little bit of legal housekeeping goes a long way toward protecting your ownership and preserving your enjoyment of your real estate. The legal housekeeping will vary from event to event and person to person. It can be as simple as reviewing your deed to make sure it’s current or as complex as preparing a full-blown estate plan. Regardless of your situation, there are some “universal truths.” Couples who own real estate before marriage may take advantage of a particular form of title known as “tenancy by the entirety.” The owner spouse simply deeds the property to both spouses jointly as “husband and wife, tenants by the entirety.” August 30, 2011
FDIC Objects to BofA’s $8.5 Billion Mortgage-Bond SettlementThe Federal Deposit Insurance Corp. filed an objection to Bank of America Corp.’s proposed $8.5 billion mortgage-bond settlement with investors, joining investors and states that are challenging the agreement. The FDIC, the receiver for failed banks, owns securities covered by the settlement and said it doesn’t have enough information to evaluate the accord, according to a filing yesterday in federal court in Manhattan. Under the agreement, Bank of America would pay $8.5 billion to resolve claims from investors in Countrywide Financial Corp. mortgage bonds. The settlement was negotiated with a group of institutional investors, including BlackRock Inc. and Pacific Investment Management Co. LLC, and would apply to investors outside that group. August 30, 2011
Nadine P. Winter, Member of District’s First Elected Council, Dies at 87Nadine P. Winter, an urban-housing activist who won a seat on the first elected D.C. Council after the District was given home rule in the 1970s, died Aug. 26 at her home in Southwest Washington. She was 87. She had pneumonia, said her son Reginald Winter Jr. Mrs. Winter was elected in 1974 to represent Ward 6, a diverse but largely poor area stretching from Capitol Hill to Anacostia, and held the seat for 16 years. Mrs. Winter came to the council keenly aware of the housing problems that plagued the ward and the city. August 30, 2011
Free Capacity Building Workshop, August 23 and 24—9:00 AM to 4:30 PMPresented by U.S. Department of Housing and Urban Development, District of Columbia Field Office. August 23, “Grants On Track” is structured for an audience who would be experienced grantees and local government organizations learning about program and budget management techniques; program and financial monitoring; tracking compliance; assurances and ethics; and more. August 24, “Board Development” is structured for board members and organizations forming a non-profit learning responsibilities and commitments; building a strong board; agency sustainability and more. Location: Oxon Hill Manor, 6901 Oxon Hill Rd, Oxon Hill, MD 20745; contact Belinda.J.Fadlemola@hud.gov or call 202-275-6280. August 23, 2011
Free Capacity Building Workshop, August 23 and 24—9:00 AM to 4:30 PMPresented by U.S. Department of Housing and Urban Development, District of Columbia Field Office. August 23, “Grants On Track” is structured for an audience who would be experienced grantees and local government organizations learning about program and budget management techniques; program and financial monitoring; tracking compliance; assurances and ethics; and more. August 24, “Board Development” is structured for board members and organizations forming a non-profit learning responsibilities and commitments; building a strong board; agency sustainability and more. Location: Oxon Hill Manor, 6901 Oxon Hill Rd, Oxon Hill, MD 20745; contact Belinda.J.Fadlemola@hud.gov or call 202-275-6280. August 23, 2011
In-law Units Help Homeowners Pay Bills, Care for RelativesTuer’s renovation reflects an accelerating trend toward adding second units to homes, whether for extra cash or elder care. These tidy units — known as in-law suites, granny flats, sidekicks, backyard cottages or, in Australia, “kangaroo apartments” — serve multiple purposes at a time retiring Baby Boomers are trying to stay in their homes despite shrinking stock portfolios, adult children can’t find jobs and aging parents need help. August 18, 2011
The Pros and Cons of Options for Creating an In-law UnitAdding an in-law unit to your home or backyard can be costly and reduce your privacy. Yet good planning can minimize those factors, says Michael Litchfield, author of a new book, In-Laws, Outlaws and Granny Flats. “Always try to stay within the existing footprint when renovating a house or in-law unit,” he writes. “If you don’t enlarge the square footage of the structure, you’ll be more likely to save money and simplify code compliance.” August 18, 2011
Report: Justice Department Investigating Standard and Poor’s Mortgage Securities RatingsThe Justice Department is investigating whether the Standard & Poor’s credit ratings agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis, The New York Times reported Wednesday. The investigation began before Standard & Poor’s cut the United States’ AAA credit rating this month, but it’s likely to add to the political firestorm created by the downgrade, the newspaper said. Some government officials have since questioned the agency’s secretive process, its credibility and the competence of its analysts, claiming to have found an error in its debt calculations. August 18, 2011
Recession Pushes More in D.C. Area to Live with RelativesThe recession pushed more people in the Washington area into living with relatives and friends, according to new census figures showing a sharp rise in families who have taken in adult children, siblings, parents and roommates. Almost 1.2 million of the region’s 6 million residents were living with extended family members and friends last year, a 33 percent rise over the past decade. Nationwide, according to recently released 2010 Census statistics, at least 54 million people are in a similar spot. August 18, 2011
Is It Time to Refinance? Run the Numbers FirstSome homeowners in their 50s are taking advantage of historic low rates to refinance their homes and score themselves a mortgage-free retirement. Mark and Jan Sass, 55-year-olds who live in Cincinnati, Ohio, refinanced their home last week to lock in lower rates, Reuters reported. They switched from a 20-year fixed-rate loan of 4.875 percent, with 12 years remaining, to 10-year mortgage with a 3.5 percent rate. “The opportunity to look 10 years out and know that — unless things change — we won’t have a mortgage when we retire looked like a smart decision,” Sass told the news agency. August 18, 2011
HUD ANNOUNCES UNPRECEDENTED ASSISTANCE FOR ALABAMA, MISSOURI STORM VICTIMS STORM VICTIMSU.S. Housing and Urban Development Secretary Shaun Donovan announced today that HUD will provide assistance to families affected by this spring’s catastrophic tornadoes in Joplin, MO, and central Alabama, by entering into an unprecedented purchase agreement to sell real estate owned properties (REO) to public housing authorities in the affected areas. As part of a pilot program, HUD will sell nearly 90 “move-in ready” REO properties in both Missouri and Alabama to public housing authorities at a discount in an effort to quickly provide housing for families that were displaced by the tornadoes. The public housing authority will then make the properties available for lease or sale to any impacted person within two months. August 17, 2011
BofA Said to Weigh Foreclosure Pact That Allows New York ProbeBank of America Corp. may settle a state and federal probe of foreclosure practices in a deal that lets New York proceed with an inquiry into securitizations, according to two people with direct knowledge of the talks. The firm may pursue an accord with most of the 50 state attorneys general, even if it omits New York’s Eric Schneiderman and at least two other states who are opposed because a deal would impede related inquiries, said one of the people. Negotiations on a broad settlement stalled after Schneiderman indicated he wouldn’t let it block his probe into the bundling and sale of mortgages, said the people, who declined to be identified because talks are private. August 17, 2011
US Increasingly Shuns Home Ownership to RentBuilders starting on new apartments are busier than ever these days as demand for rentals climbs and the once-sacrosanct American dream of home ownership fades. The Commerce Department said Tuesday housing starts slipped 1.5 percent in July to a seasonally adjusted annual rate of 604,000 units. But starts on multifamily housing, often used for rentals, rose 7.8 percent to 179,000 units. The rise in multifamily units reflects an underlying trend in which rentals are increasing while the national home ownership rate declines. August 17, 2011
10 Housing Markets That Will Collapse This YearThe real estate market is already in the deepest depression in modern U.S. history. If you think it can’t get any worse, think again. In several cities, the real estate market is about to drop even more. Home values in many of those cities, such as Las Vegas, have already collapsed as unemployment has shot higher. And with no hope of quick recovery, housing prices are expected to continue to fall. 24/7 Wall St. identified ten housing markets that are expected to drop by at least another 10 percent by 2012. August 17, 2011
More Homeowners Shorten Mortgage TermsSpurred by low interest rates and a desire to pay off their debts, homeowners are shortening the terms of their loans. In the first quarter, 34% of refinancers switched to a 20- or 15-year loan, the highest level in seven years, according to mortgage giant Freddie Mac. At LendingTree, an online mortgage broker, requests for 15-year mortgages are up 30% from a year ago, says Mona Marimow, vice president of marketing. Quicken Loans recently launched Yourgage, a customized product that allows borrowers to select the term of their mortgage. The most popular term for Quicken borrowers? Eight years. The second most popular is 13 years. August 16, 2011
‘No Boat Wake’ Debate: High Water Creates High TensionsDennis Johnson has lived on Carnelian Lake in central Minnesota for 34 years, but he has never seen the water so high in August. Heavy rains throughout the summer have pushed the lake over its banks, swallowing lawns, flooding boathouses and threatening homes. “It’s washed away people’s backyards,” Johnson said. Johnson helped organize a petition of homeowners who want Stearns County to enact a no-wake zone that would prevent boats from speeding across the lake, creating waves that batter the shore. The county will address that request at a public hearing today. August 16, 2011
On Mortgage Rates, Obama wants Proposal for How Government can Keep Big RolePresident Obama has directed a small team of advisers to develop a proposal that would keep the government playing a major role in the nation’s mortgage market, extending a federal loan subsidy for most home buyers, according to people familiar with the matter. The decision follows the advice of his senior economic and housing advisers, who favor maintaining the government’s role as an insurer of mortgages for most borrowers. The approach could even preserve Fannie Mae and Freddie Mac, the mortgage finance giants owned by the government, although under different names and with significant new constraints, said people knowledgeable about the discussions. August 16, 2011
Small Banks Say New Mortgage Regulations too OnerousAlesia Harlan plopped the thick folder on the desk and started flipping through papers. Disclosures, notices, statements, forms and tax documents — it was about 300 pages, and it was just a home loan.Last year, reviewing the bank’s 455 home loan applications created more than two months of work for Harlan, a compliance officer at City State Bank in Norwalk, Iowa. “I’ve yet to see the benefit to the customer,” said Harlan. “It’s highly technical and confusing for the borrower.” August 15, 2011
At Vacant Homes, Foraging for FruitAs she does every evening, Kelly Callahan walked her dogs through her East Atlanta neighborhood. As in many communities in a city with the 16th-highest foreclosure rate in the nation, there were plenty of empty, bank-owned properties for sale. She noticed something else. Those forlorn yards were peppered with overgrown gardens and big fruit trees, all bulging with the kind of bounty that comes from the high heat and afternoon thunderstorms that have defined Atlanta’s summer. August 15, 2011
Mortgage Tax Deductions May Soon be in PlayIf you take mortgage interest tax deductions, the next 100 days could have significant financial implications for you, thanks to Congress’s new federal debt ceiling plan. The compromise legislation created an unusual mechanism — an evenly split, 12-member bipartisan supercommittee — that could call for major cutbacks on real estate write-offs by Thanksgiving. All it will take is a single vote by a lone senator or House member who breaks with his or her party to put the mortgage interest deduction into serious play. August 15, 2011
In Frederick, Aiming to Build ‘Green Homes’ That Don’t Break the BankAnyone paying attention to the “green building” market knows that most of the eco-friendly abodes that have proliferated across the country in recent years have been million-dollar trophy homes. But the developers of the new North Pointe neighborhood in Frederick are taking things in the other direction: They’re building energy-efficient townhouses and duplexes geared toward middle-class buyers. The 55 homes start in the mid-$200,000s, but will offer the kind of “green bling” usually found in more upscale models: solar panels, geothermal heating and a sophisticated computer system to help manage energy usage. August 15, 2011
Mortgage Rates Fall, Payments ImproveMortgage rates fell to, or near, record lows in the latest week, and mortgage delinquencies improved in the second quarter. Freddie Mac said Thursday that the average rate for 30-year fixed mortgages fell to 4.32% this week from 4.39%. The 30-year loan hit a record low 4.17% in mid-November. The average rate on a 15-year fixed mortgage, a popular refinancing option, fell to a record low 3.50%, from last week’s record 3.54%. August 12, 2011
HUD UNVEILS NEW WEB-BASED MAPPING TOOL TO DISPLAY NEARLY HALF OF U.S. FORECLOSED PROPERTIESThe U.S. Department of Housing and Urban Development today launched a new web-based mapping tool displaying the location of all foreclosed properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA). These foreclosed homes collectively account for nearly half of all real estate-owned or REO properties in the U.S. HUD’s REO Portal is intended to help local communities, homebuyers and responsible investors to acquire these properties and accelerate efforts to stabilize local housing markets. August 12, 2011
FHFA, TREASURY, HUD SEEK INPUT ON DISPOSITION OF REAL ESTATE OWNED PROPERTIESThe Federal Housing Finance Agency (FHFA), in consultation with the U.S. Department of the Treasury and Department of Housing and Urban Development (HUD), has announced a Request For Information (RFI), seeking input on new options for selling single-family real estate owned (REO) properties held by Fannie Mae and Freddie Mac (the Enterprises), and the Federal Housing Administration (FHA). August 12, 2011
Foreclosures of Expensive Homes Take LongerFrom January through May, almost 400,000 homes were repossessed by lenders or sold to others at foreclosure auctions. By the time they were repossessed or sold, mortgages on the more-expensive homes were delinquent an average of 647 days, almost four months longer than the less-expensive homes, data from national mortgage tracker LPS Applied Analytics indicate. The longer time frames occurred in 45 states and ranged from days to months. August 11, 2011
Census Tracks 20 Years of Sweeping ChangeThe end of the first decade of the 21st century marks a turning point in the nation’s social, cultural, geographic, racial and ethnic fabric. It’s a shift so profound that it reveals an America that seemed unlikely a mere 20 years ago — one that will influence the nation for years to come in everything from who is elected to run the country, states and cities to what type of houses will be built and where. August 10, 2011
Massachusetts Settles Suit Against a Mortgage LenderMortgages will be adjusted for thousands of Massachusetts homeowners and black and Latino borrowers will be reimbursed for high fees in a settlement with a subprime lender that the state accused in a lawsuit of unfair and discriminatory lending practices. The lender, Option One, now known as Sand Canyon, agreed to make loan modifications valued at $115 million to homeowners facing foreclosure, Martha Coakley, the Massachusetts attorney general, announced on Tuesday. The lender is a subsidiary of H&R Block. August 10, 2011
A.I.G. Sues Bank of America Over Mortgage BondsThe American International Group sued Bank of America on Monday over hundreds of mortgage-backed securities, adding to the surge of investors seeking compensation for the troubled mortgages that led to the financial crisis. The suit seeks to recover more than $10 billion in losses on $28 billion of investments, in possibly the largest mortgage-security-related action filed by a single investor. August 10, 2011
OBAMA ADMINISTRATION RELEASES JULY HOUSING SCORECARDThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the July edition of the Obama Administration’s Housing Scorecard - a comprehensive report on the nation’s housing market. The latest housing data offer continued mixed signals as home prices improved slightly but showed continued strain from foreclosures and distressed homes. Also, as more homeowners secure mortgage relief, fewer borrowers entered the foreclosure pipeline in June. The full report is available online at www.hud.gov/scorecard. August 10, 2011
HUD CHARGES PENNSYLVANIA LANDLORD WITH DISCRIMINATING AGAINST FAMILIES WITH CHILDRENThe U.S. Department of Housing and Urban Development (HUD) announced today that it has charged the owner and manager of Breckenridge Plaza Apartments in Phoenixville, PA, with violating the Fair Housing Act by discriminating against families with children. Breckenridge Plaza, Inc., and Morris Zelikovsky were charged with making discriminatory statements, including in advertisements on craigslist.org, indicating a preference against families with children, offering different rental terms and conditions to families with children, and discouraging families with children from applying for housing. August 10, 2011
Economy, Not Debt Rating, Hurting HousingForget the debt rating downgrade. When it comes to the nation’s dismal housing market, it’s the economy, stupid. That’s good news for the small number of Americans out there who are ready to buy a home, have the creditworthiness to qualify for a loan and are hoping to get a nice, low mortgage rate. “As long as the economy is limping along like this, interest rates are not going to increase,” said Greg McBride, senior financial analyst at Bankrate.com. In fact, short-term market interest rates have fallen since Standard and Poor’s decision late Friday to downgrade federal debt, and mortgage interest rates have stayed largely unchanged at levels that are near 50-year lows, McBride said. August 10, 2011
Ocwen Financial Offers a Lifeline to Underwater BorrowersIf you give millions of seriously underwater homeowners a new equity position in their properties by reducing their principal mortgage debt, will they keep paying on their loans and avoid foreclosure?Call it a pipe dream or a significant model for other lenders and investors, but one company says it has found an important combination: Modify underwater borrowers’ loans so that their payments are reduced to a manageable amount, cut their principal debt over time, and make the deal dependent on their scrupulous on-time monthly payments of the new amount and an agreement to share a portion of any profits they make if they sell the home in the future. August 8, 2011
Investing in Real Estate on the RiseWith mortgage rates at their lowest level of the year and home affordability at a 40-year high, the idea of investing in real estate is appealing to a growing number of people. Investors have purchased about 20 percent of the existing homes sold this year, up from 17 percent last year and the highest level since 2008, according to the National Association of Realtors. While many are probably seasoned investors chasing after cheap foreclosures, some are people like Cummins who are dabbling in real estate because they think it makes good financial sense. August 8, 2011
Investing in Real Estate on the RiseWayne Cummins’s stock portfolio took a huge hit during the financial crisis, so he has been hanging on to more cash than usual instead of investing it. But with the balance slowly building up and interest rates only going down, something had to change. “I’m just looking for a better return … than .0003 percent on a savings account,” Cummins said. But he wasn’t yet ready to jump back into the stock market, which this week posted some of the worst returns since the financial crisis. And with gold near record highs and a U.S. credit downgrade still threatening the bond market, there seemed no safe place to go. August 5, 2011
Home Builders Need to Look Beyond the Focus Group to Learn What Buyers WantWhat do home buyers want? For more than two decades, home builders have sought to answer this perplexing question by sifting through the information gleaned from focus groups. Typically, the people who participate are looking for a new home or have recently purchased one. The builders ask them questions and incorporate their responses into the making of the next subdivision. But the focus group input does not dramatically affect the sales, and the builders fume that “buyers are liars.” August 5, 2011
New Orleans Unveils Fresh Model for Housing the PoorThe Magnolia Projects, once one of the city’s most notorious public housing complexes, today is Harmony Oaks Apartments, a 460-unit mix of government-subsidized and market-priced apartments. It replaces one of six public housing projects across the city recently razed to make room for new apartments and a fresh approach to housing the city’s poor. Following a national trend, New Orleans’ traditional model of corralling all subsidized housing into one location is being replaced by newer developments that mix subsidized and market-priced homes. More than 900 such units have opened in New Orleans already; another 3,100 are on the way. August 4, 2011
Richer Minorities Seen Living in Poorer NeighborhoodsThe most successful blacks and Hispanics are more likely to have poor neighbors than are whites, according to a new analysis of Census data. The average affluent black and Hispanic household — defined in the study as earning more than $75,000 a year — lives in a poorer neighborhood than the average lower-income non-Hispanic white household that makes less than $40,000 a year. “Separate translates to unequal even for the most successful black and Hispanic minorities,” says sociologist John Logan, director of US2010 Project at Brown University, which studies trends in American society. August 4, 2011
Actress Says She Can’t Be Evicted Because She Moved OutThe day after court records revealed that Faye Dunaway would be joining the masses of New Yorkers braving housing court for a landlord-tenant showdown, it was time for the Oscar-winning actress to share her side of the story. In the lawsuit, filed Tuesday, her landlord claimed that Ms. Dunaway, whose monthly rent was $1,048.72 for a one-bedroom walk-up apartment in an old tenement on East 78th Street, did not actually live there, but rather lived in California. Rent stabilization rules require that an apartment be the tenant’s primary residence. August 4, 2011
Intergration, Gentrification, ConversationEvery city has a Clybourne Park. At least that’s what several regional theaters across the country are betting on as they introduce their audiences to Bruce Norris’s darkly humorous play “Clybourne Park,” a dissection of race, gentrification and real estate. Both acts of the play, the winner of the 2011 Pulitzer Prize for drama, take place in the living room of a bungalow in a Chicago neighborhood. The first, set in 1959, is an Arthur Milleresque drama about a middle-class white family, their black maid and a visitor from the neighborhood association who wants to keep a “colored family” from buying the house. August 4, 2011
Loss of Home Equity Downsizes Retirement for ManyPaul Trigili, an information technology professional in Las Vegas, is 65, has back problems and would like to retire at the end of the year. There’s just one thing standing in his way: his house. Trigili bought his home three years ago for $350,000. At the time, he thought it was a good deal, because the home originally was priced at $450,000. Today, it’s valued at $184,000. Trigili made a large down payment when he bought the home, so he doesn’t owe more on his mortgage than the home is worth. But his plans to sell his home and use the proceeds for retirement income have been placed on indefinite hold. August 3, 2011
Study: Income Does Not Explain Segregation Patterns in HousingAffluent blacks and Hispanics live in neighborhoods that are noticeably poorer than neighborhoods where low-income whites live, according to a new study that suggests income alone does not explain persistent segregation patterns in housing. Washington and Atlanta were the only two major metropolitan regions in the country that followed a slightly different pattern. In these two cities, the study found that the situation for high-income blacks and Hispanics was equal, but not worse, than that of low-income whites. August 2, 2011
From Right Angles to the Right Feng Shui, Real Estate Apps DeliverWhen looking to buy a home, you can find some of the best tools for the search in the palm of your hand, now that the number of real estate apps for smartphones has exploded. One third of all U.S. adults own smartphones — such as the iPhone and Android software-based phones — and the real estate apps they can access provide the take-along convenience that a home computer simply cannot. Some apps are free. Others are not. But you can download them from Apple’s iTunes Store, the Android Market and BlackBerry’s App World store. August 1, 2011
New Md. Law Says Condo Associations can Require That Unit Owners Have InsuranceStarting in October, condominium associations in Maryland can vote to require that all unit owners carry homeowner’s insurance. What is unique about this law is that it only requires the approval of 51 percent of all condo owners. Traditionally, to amend condominium legal documents, a super majority vote is required — usually up to 75 percent. In this case, however, the Maryland legislature has made it easier to change a condo’s bylaws. August 1, 2011
Joint Tenants Divorce and One Dies: What Happens Next?Q. Let’s say a husband and wife own a rental property with a joint tenancy with rights of survivorship deed. Later, they divorce without changing the deed, and 10 years later, one of them passes away.Does the remaining owner automatically pick up the ownership for the deceased owner’s share? Does the divorce revoke the survivorship deed and make it a deed in common, with a 50/50 split? August 1, 2011
$8.5 Billion Deal Near in Suit on Bank Mortgage DebtBank of America is completing an agreement to pay $8.5 billion to settle claims by investors that purchased mortgage securities that soured when the housing bubble burst, according to people briefed on the deal. It represents what is likely to be the single biggest settlement tied to the subprime mortgage boom and the subsequent financial crisis of 2008. The settlement would wipe out all of the company’s earnings in the first half of this year, and it could also provide a template for deals with other big banks that face tens of billions in similar claims. July 29, 2011
Black Professionals Leading the Charge of Gentrification Across AnacostiaA group of young black professionals has gathered for happy hour at Uniontown Bar and Grill, the first new sit-down restaurant that serves alcohol to open in historic Anacostia in decades. Over spinach-strawberry salad, sweet potato fries and white wine, they share plans to plant vegetables in abandoned lots — “Can’t a sister get a fresh tomato?” — and buzz about the Historic Housing Grants that have allowed neighborhood residents to repair the porches and roof of their Victorian and Queen Anne houses. Then the conversation turns to a topic that always unleashes drama: Just who is a gentrifier? July 29, 2011
Detroit to Set Services by Neighborhood ConditionDetroit’s mayor unveiled a plan Wednesday that could determine what the city looks like as it fights for vitality, announcing that neighborhoods will receive different kinds of services depending on the conditions of homes, how many people live there and the level of blight. Mayor Dave Bing released details from his Detroit Works Project, calling them part of a “short-term intervention strategy” to serve residents at a time when the city has limited financial resources and a $155 million budget deficit. July 28, 2011
An Abandoned Area Starts to Hum Again, Raising New FearsTed Stalnos said he used to feel like a funeral home director when — as a development staffer — he was helping people look for work on the Southeast Side, where the steel mills had shut and their good jobs had vanished. Today Mr. Stalnos, a 57-year-old Southeast Side native, is the planning and administration director for the Calumet Area Industrial Commission, and he said he was thrilled about four major developments proposed or in the works around Lake Calumet. “I feel like Lazarus,” he said, “watching it all come up again.” July 28, 2011
Foreclosed Home Is a Risky Move for Homeless FamilyIn a giggly voice, a small homeless girl with blue-framed glasses chased her younger brother and sister around the front porch of a long-deserted two-flat on the South Side, chanting, “Fight, fight, fight, ‘cause housing is a human right.” Jimmya Biggs, 10, and her siblings learned the chant — a nursery rhyme for the age of foreclosure — from a group of low-income-housing advocates, the Chicago Anti-Eviction Campaign. In a well-planned and orchestrated event on June 17, the campaign moved the children, their single mother and her teenage sister into the foreclosed building to bring attention to what the co-founder of the group, Willie J. R. Fleming, called the “twin evils” of homelessness and foreclosures. July 27, 2011
Housing Occupancy Declines, but Rentals Up in Some SpotsEmpty housing has been on the rise since the recession and real estate bust, but occupancy is starting to pick up in some places — largely because of soaring rental demand. Neighborhoods from Tacoma, Wash., to New York’s Bronx borough and parts of Albuquerque are showing an uptick in occupied housing, according to an analysis of U.S. Postal Service data. “There are quite a lot of variations in how metropolitan areas are weathering the current economic conditions,” says Justin Hollander, urban planning professor at Tufts University who led the research conducted with the Lincoln Institute of Land Policy. July 27, 2011
Home Prices, New-home Sales Show Continued WeaknessHome prices in major U.S. cities rose for a second month in May, propped up by a flurry of spring buyers. But after adjusting for such seasonal factors, prices fell. Another report Tuesday said fewer Americans bought newly built homes in June, more evidence that the U.S. housing market remains weak. The Commerce Department said sales of new homes fell 1% in June to an annual rate of 312,000. That’s less than half the 700,000 homes sold per year that economists say is typical in healthy markets. July 27, 2011
HUD: The Emergency Homeowners’ Loan Program (EHLP) Acceptance Period Extended to Wednesday, July 27, 2011The U.S. Department of Housing and Urban Development (HUD) has extended the Emergency Homeowner’s Loan Program (EHLP) acceptance period to Wednesday, July 27, 2011. Homeowners interested in applying for this program must complete the Screening Worksheet and Third Party Authorization form; and submit them to one of the participating EHLP counseling agencies. July 26, 2011
HUD CHARGES OWNER AND MANAGER OF CINCINNATI APARTMENT COMPLEX WITH RACE DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging the owner and the manager of the 63-unit, Valley Woods Apartments in Cincinnati, OH, with violating the Fair Housing Act for allegedly denying rental opportunities to African Americans. HUD brings the charge on behalf of Housing Opportunities Made Equal (HOME), a non-profit fair housing organization, which filed a complaint with the Department based on the experiences of two African American testers. July 26, 2011
HUD CHARGES WISCONSIN PROPERTY OWNERS WITH DISCRIMINATING AGAINST SINGLE MOTHER AND HER SONThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging James and Julia Norton, a couple who owns rental property in Brown County, Wisconsin, with violating the Fair Housing Act for allegedly establishing different terms for a single mother’s tenancy, including requiring her to be at home when her teenage son had visitors. HUD’s charge also claims that the Nortons’ lease agreement included policies and rules restricting and imposing limitations on families with children. July 26, 2011
Number of Homeless Veterans ExplodesMore than 10,000 Iraq and Afghanistan veterans are homeless or in programs aimed at keeping them off the streets, a number that has doubled three times since 2006, according to figures released by the Department of Veterans Affairs. The rise comes at a time when the total number of homeless veterans has declined from a peak of about 400,000 in 2004 to 135,000 today. “We’re seeing more and more (Iraq and Afghanistan veterans),” says Richard Thomas, a Volunteers of America case manager at a shelter in Los Angeles. “It’s just a bad time for them to return now and get out of the military.” July 26, 2011
Cases of Alleged Real Estate Kickbacks Raise Questions about What’s AllowedYou probably know that federal law prohibits kickbacks among brokers and others in home real estate deals. That sounds pretty straightforward: You can’t give money to someone simply for steering a home buyer or refinancer to a particular title agency, mortgage lender or escrow company without providing any actual services to the consumer. Yet as four recent legal settlements suggest, there is still plenty of action underway at the fringes of the law, where technology and creative financial arrangements are raising questions about what’s permissible. July 25, 2011
House Watch: Hiring Your Architect and Home Builder in Tandem can Save You MoneyHomeowners embarking on the construction of a custom home or a remodeling project are often inundated with pitches for “smart” technology — from “smart” wiring to “smart” appliances. But the most important decision these homeowners will make is how to wisely use their money. Making smart decisions will get them the best house for their budget — though not necessarily the biggest home or one with the most trophy features. July 25, 2011
Prefab Homes can be Far from OrdinaryBy now it’s fair to say most people do not confuse prefab houses with mobile homes. Prefab is simply a different system for building a regular house, of almost any style, producing it in either modules or panels in a factory. With modular houses, there’s a lot of extra engineering involved: After all, at the factory and at the homesite, pieces of the structure have to be picked up by a crane and set in place, first on the delivery rig and then on a concrete foundation — and in between they bounce around for miles on a truck. July 25, 2011
Mortgage Lending the Old-fashioned WayAlthough about 90 percent of the mortgages written these days are backed by the federal government — mainly through Fannie, Freddie or the Federal Housing Administration, the other 10 percent are typically loans that are too large for the government programs to handle or ones that the lenders decide to keep on their books for whatever reason. These lenders include community banks like National Capital and credit unions, two types of institutions that have long embraced an old-fashioned, common-sense approach to mortgage lending. July 19, 2011
Banks’ Inequity in Home-equity LoansPicture this nightmare financial scenario: You’ve taken out a $150,000 home-equity credit line to remodel your house. You’ve already pulled out thousands to pay contractors and owe thousands more, when suddenly you get a curt letter from the bank. “Effective yesterday,” it says, “we’ve shut down access to your credit line. Although we haven’t physically appraised your property, an automated valuation indicates that it is now worth significantly less than it was when we approved your application. If you wish to hire an appraiser, chosen by us but at your own expense, you can appeal our decision.” July 19, 2011
Foreclosure Delays Could Hold Off Housing ReboundForeclosure actions — including default notices, auction sale notices and bank repossessions — will be filed on about 2 million homes this year, 1 million fewer than there should be based on the number of delinquent loans, says market researcher RealtyTrac. Delays occur for a variety of reasons, including mortgage servicing firms’ uncertainty about future foreclosure rules. Federal and state officials and the mortgage industry are negotiating a settlement that is likely to define those. July 14, 2011
Solar Panels Still Rare, Despite Glow of $7 Power BillsWhen Ed and Paula Antonio moved from a small home in Marine Park, Brooklyn, to a roughly 3,000-square-foot house in Belle Harbor, Queens, they realized that with all that space and a central air-conditioning system, their electricity costs would run much higher. So after intensive research and analysis and the bids of five contractors, they paid $72,000 to install 42 solar panels on their new roof. The Antonios, who are recouping much of the cost through rebates and tax breaks, are part of a surprising cluster of solar-powered homes in this beachy enclave on the western side of the Rockaway Peninsula, where neighbors can now show off with an iPhone app how much power they are generating. But this cluster is still something of a rarity. July 14, 2011
D.C. Council Alters Foreclosure Law, Adds New Consumer RightsThe D.C. Council enacted emergency legislation Tuesday to amend a controversial clause in its foreclosure mediation law that threatened to stall the sale of foreclosed affected homes across the city.The move came just days after The Washington Post reported that two large title insurers, which account for nearly 80 percent of the D.C. market share, stopped insuring sales of foreclosed homes because of concerns over the law. The change will make it easier for buyers of foreclosed homes to obtain loans, because title insurance, which protects mortgage lenders from challenges to their rights to a property, is an essential ingredient in the home-buying process. That, in turn, could help stabilize District prices by speeding the sales of homes in the foreclosure pipeline. July 14, 2011
Homeowner Associations Foreclose on ResidentsNormally, it’s the bankers who go after delinquent homeowners. But in communities governed by the mighty homeowners’ association, as the sour economy leaves more people unable to pay their fees, it’s neighbor vs. neighbor. “What the board is doing is trying to foreclose on people to force people out the door,” says Mike Silvestri, 75, who stopped paying his dues at Inlet House in protest over what he considers unnecessary and unaffordable assessments. July 11, 2011
Black Economic Gains Reversed in Great RecessionFirst, Goldring’s husband fell ill, and they drained savings to pay for nursing homes before he died. Then Goldring lost her executive assistant job in the Baltimore hospital where she had worked for 17 years. The cruelest blow was a letter from the bank, intending to foreclose on her home of almost three decades. Millions of Americans endured similar financial calamities in the recession. But for Goldring and many others in the black community, where unemployment has risen since the end of the recession, job loss has knocked them out of the middle class and back into poverty. Some even see a historic reversal of hard-won economic gains that took black people decades to achieve. July 11, 2011
Fannie Mae Changes All-cash Financing OptionsCurrently, Fannie Mae requires a minimum of six months to elapse between the time a borrower purchases a home and subsequently applies for a cash-out refinance. The Selling Guide has been updated to allow a cash-out refinance within six months of a purchase transaction when no financing was obtained for the purchase transaction. There are of course all kinds of parameters, including maximum LTV (loan-to-value ratio), documentation, arms-length transaction and “all other cash-out refinance eligibility requirements and cash out pricing applied.” The mortgage cannot be larger than the value of the home, of course. July 11, 2011
Banks See Opportunity in Reduced Federal Mortgage LimitsHow big a deal is the upcoming cutback in mortgage limits for Fannie Mae, Freddie Mac and the Federal Housing Administration? Will buyers and sellers who depend on jumbo-size loans find themselves in a financing squeeze after Sept. 30, when the limits plunge in key markets across the country ? Housing and realty lobbies are pushing hard on Capitol Hill for a continuation of the $729,750 maximum in high-cost areas, but one industry is delighted by the prospect and is gearing up to fill the gap. July 11, 2011
Home Office 101: The Ins and Outs of Taxes and RegulationsWhile quality-of-life reasons may help explain why roughly half of U.S. businesses are home-based, there are plenty of financial reasons to go the “homepreneur” route. If you use a part of your home for business, you may be able to deduct expenses from your federal income tax, including mortgage interest, insurance, utilities, repairs and depreciation of the business portion of your home. But to qualify for these deductions, you must meet two basic requirements. July 11, 2011
Watch Out for Creative Property AssessmentWe just received our annual notice of assessment from the county tax collector. The current value has remained the same as last year, but the “building value” decreased by $34,000 and the “land value” increased by $34,000. How will that affect my ability to sell it in the future? My house was built in 1964 but is in very good condition. July 11, 2011
Foreclosed Homeowners May Seek Case ReviewsMore than 2 million homeowners hit by a foreclosure in 2009 or 2010 can demand reviews of their cases and they’ll receive letters explaining their rights, banking regulators said Thursday. The letters are intended to help identify homeowners who believe they were harmed financially because of improper foreclosure practices by mortgage servicers, said Julie Williams, chief counsel of the Office of the Comptroller of the Currency, at a congressional hearing Thursday. The number of affected homeowners includes those who completed a foreclosure in 2009 or 2010 or who had one in process then, the OCC said. July 8, 2011
Obama to Extend Help for Unemployed Homeowners to 12 MonthsThe Obama administration is trying to make it easier for homeowners who lose their jobs to keep their homes. The administration today will announce that two programs providing unemployed homeowners a few months’ forbearance on their mortgages will be extended to 12 months, said three administration officials speaking anonymously because the program has not been announced. Thousands of homeowners could benefit from the additional time, although not all jobless homeowners will be eligible. July 7, 2011
Foreign Buyers Lifting U.S. Home SalesForeign buyers are helping to stoke home sales in U.S. vacation hot spots decimated by the real estate crash, especially in southern Florida. For the 12 months ending in March, 31% of Florida’s home sales were to foreign buyers, up from 10% in 2007, according to a survey by the National Association of Realtors. In Arizona, 6% of sales in the same period were to foreigners. That was down from 11% last year but still up from 5% in 2007, the data show. July 7, 2011
Blacks Return to Southern RootsThe 2010 Census shows that 57% of the USA’s blacks live in the South, the highest percentage since 60% in 1960, says William Frey, demographer at the Brookings Institution. “They are going to the new Sun Belt cities, economically viable places,” he says. “The main states are Florida, Georgia, Texas and North Carolina and the prosperous metropolitan areas, especially the suburbs, within those states.” This migration is pushing the percentage of the African-American population living in this region, where they have deep roots, to the highest point in 50 years. July 1, 2011
Former Chairman gets 30 Years for $3 Billion Mortgage FraudAn executive convicted of orchestrating a $3 billion fraud as chairman of one of America’s largest private mortgage companies was sentenced Thursday to 30 years in prison. Federal prosecutors in northern Virginia had sought a life sentence for Lee Farkas, former chairman of Florida-based Taylor Bean & Whitaker. They called the case against him one of the most significant arising from the nation’s financial meltdown. A federal jury in Alexandria convicted Farkas in April of all 14 counts, including securities fraud and conspiracy. Farkas testified that he had done nothing wrong. July 1, 2011
New Limits on Mortgage Size Likely to Affect High-end Home Prices in D.C. AreaMortgages for the Washington area’s priciest homes are about to get more expensive. This fall, the government is scheduled to stop backing loans of more than $625,500, making them subject to higher interest rates and down payments. The change could drag down home prices, especially in upscale neighborhoods, and deliver yet another blow to the faltering housing market. The loan limit — down from $729,750 — would have affected about 40 percent of mortgages made in Great Falls if it were in place last year and more than 20 percent of the loans made in expensive areas such as Bethesda, McLean, Chevy Chase, Dunn Loring, Potomac, Fairfax Station and Upper Northwest Washington, according to a Washington Post analysis of data from LPS Applied Analytics. June 27, 2011
Disclosure Papers can Derail Condo SaleYou have just signed a contract to sell your condominium unit. You are excited and happy. Your buyer also seemed to be pleased, but then she decides she wants to cancel the contract. Can she do this once she has signed a binding real estate contract? There are many things that can derail the sale, such as having a financing contingency and not being able to get a loan, or having an appraisal contingency and the lender’s appraiser low-balls the value of the unit. June 27, 2011
Morgan Keegan Paying $200M to Settle Fraud ChargesMorgan Keegan is paying $200 million to settle civil fraud charges that it overstated the value of mortgage investments just as the housing market was collapsing and lured buyers of its funds with false sales materials. Federal and state regulators said the Memphis-based investment firm failed to use “reasonable” procedures to calculate the value of the mortgage investments in the funds. Half of the money will go toward compensating investors in five states. The Securities and Exchange Commission, regulators in the five states and securities industry regulators, announced the settlement Wednesday. Two former employees of the firm also agreed to pay civil penalties. June 23, 2011
Proposed 20% Down Payment Rule Could put Owning a Home Out of Reach for ManyAfter a disaster, people often want to figure out how to avoid the debacle again. As we continue to deal with the fallout from the housing crisis, regulators working under the Dodd-Frank Wall Street Reform and Consumer Protection Act are proposing rules to prevent folks from getting into homes they can’t afford. One would require borrowers to come up with a 20 percent down payment. If they don’t meet this threshold, their loans would be considered more risky. It would not be a “qualified residential mortgage,” or QRM, and therefore the bank would charge more for it. June 20, 2011
Debts That Unsettle the ScoreAre medical-bill collection accounts buried away inside millions of consumers’ credit files — even bills that were fully paid or settled years ago — functioning as a drag on the housing market? That might sound far-fetched, yet some credit and mortgage-industry experts say negative medical-collection records are playing a little-recognized but significant role in depressing otherwise creditworthy loan applicants’ scores. Lower scores, in turn, are disqualifying borrowers from getting mortgages in today’s toughened underwriting climate or forcing them to pay higher interest rates, fees and down payments. June 20, 2011
Rehabilitating Credit after ForeclosureMy husband and I lost our home to foreclosure in October 2007 after my husband lost his job. We really want to become homeowners again, and we’re wondering about the benefits of signing up with one of the nonprofit housing agencies that offers a fix-up-your-credit program. Would this be a good idea? June 20, 2011
Backlog of Cases Gives a Reprieve on ForeclosuresMillions of homeowners in distress are getting some unexpected breathing room — lots of it in some places. In New York State, it would take lenders 62 years at their current pace, the longest time frame in the nation, to repossess the 213,000 houses now in severe default or foreclosure, according to calculations by LPS Applied Analytics, a prominent real estate data firm. Clearing the pipeline in New Jersey, which like New York handles foreclosures through the courts, would take 49 years. In Florida, Massachusetts and Illinois, it would take a decade. June 20, 2011
More U.S. Homes Lease Solar Panels with No Upfront CostsAmid a booming U.S. solar market, more homeowners are able to lease rooftop panels — some with no upfront costs — and pay only for the power produced. A large provider, SolarCity, of San Mateo, Calif., announces today a new lease option in which customers can “pick their price” in going solar: paying either nothing upfront with higher monthly fees or more initially and less monthly. To finance installations in 7,000 to 9,000 homes, Google is creating a $280 million fund. June 15, 2011
Treasury Slams Big Banks’ Mortgage ModificationsBased on a recent audit, Bank of America, Wells Fargo and JPMorgan Chase will lose government financial incentives — which reach at least $1,000 for a permanent loan modification — until they improve, the Treasury Department said. They received $24 million in such incentives last month.None of the 10 largest servicers participating in the Making Home Affordable Program have done a good job, Treasury said. Ocwen Loan Servicing also needs substantial improvement and six others need “moderate improvement,” the audits show. June 15, 2011
More Than 500 Cities See More Homes Become RentalsAlmost 4 million homes have been lost to foreclosures in the past five years, turning many former owner-occupied homes into rentals. The shift to rental housing is potentially long-lasting and portends changes for neighborhood stability and how people build wealth, economists say. June 15, 2011
Profiling 6 Housing Markets Hitting BottomThe U.S. housing market looks like a scorched landscape. Nationwide, home prices are down almost 32% from their 2006 peak. Many economists expect them to fall at least 5% more this year. Some predict even steeper declines. Even if home prices bottom later this year — a big “if” for many markets — they’re not likely to rise much for several years, forecasters predict. “It’ll take a long time for markets to recover,” says Paul Dales, economist at Capital Economics. April 7, 2011
HUD KICKS OFF FAIR HOUSING MONTH, LAUNCHES NATIONAL MEDIA CAMPAIGNThe U.S. Department of Housing and Urban Development announced today that it is launching a national media campaign to kick off Fair Housing Month, celebrated across the country each April to commemorate the passage of the Fair Housing Act. The “Live Free” campaign will use newspaper and magazine ads, as well as the latest digital media, including social networking sites, to increase the Department’s efforts to educate the public and housing providers about their fair housing rights and responsibilities. April 7, 2011
‘Dual System’: Minorities Lose Financial Ground, Critics SayAfter making big financial gains in recent decades, African Americans and Hispanics are again losing ground, critics say. Rather than blaming the lingering effects of the recession, a growing number of reports point to financial discrimination as a major cause. “Communities of color have received the worst treatment at a very high cost,” says Michael Calhoun, president of the Center for Responsible Lending (CRL). “We estimate 20% of African-American and Hispanic homeowners will lose their homes in this housing crisis,” more than twice as high as white households. Homeownership is the primary engine of wealth, but the housing slump only partly explains the growing gap affecting minority families, says John Taylor, CEO of National Community Reinvestment Coalition (NCRC). April 5, 2011
OBAMA ADMINISTRATION RELEASES MARCH HOUSING SCORECARDThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the March edition of the Obama Administration’s Housing Scorecard. Officials caution that the latest housing figures underscore fragility in the housing market and the need to continue efforts to help American families stay in their homes. The housing scorecard is a comprehensive report on the nation’s housing market. April 5, 2011
Wells Fargo, NAACP Open Financial Literacy CenterThe NAACP and Wells Fargo opened a financial literacy center in the District on Monday, a project that stemmed from the settlement of a lawsuit that accused the lending giant of steering black borrowers into subprime mortgages. The NAACP withdrew its lawsuit last April, after the bank agreed to help develop programs to improve African Americans’ access to high-quality loans and protect minorities against predatory loans. The San Francisco-based Wells Fargo will also donate $2.5 million annually for the next five years to fund the NAACP Financial Freedom Center in the District and similar initiatives. April 5, 2011
FHA Mortgage Program makes Homeowners Pay after Loan is Paid Off April 5, 2011
Keep Up with Your Insurance — or Your Lender WillOne of the dirty little secrets of borrowing money to buy your home is that your lender has the legal right to insure your home against fire, casualty and flood and stick you with the bill. That legal right arises from a clause in virtually all deeds of trust that, in effect, states that it is up to you to provide your lender with written evidence that your fire/casualty/flood insurance is in full force and effect. If you fail to provide this written evidence every year, your lender has the right to buy that “force-placed” insurance from its own insurance affiliate, typically at exorbitant rates, many times your regular annual premium. The lender then adds that premium to your monthly mortgage payments. April 5, 2011
Md. gets $40 Million in Foreclosure Aid for Unemployed HomeownersMaryland received $40 million in federal aid to help struggling homeowners make their mortgage payments after losing a job or taking an income hit, state and federal officials announced Friday.Borrowers could receive as much as $50,000 in interest-free loans to pay off past-due amounts and to make up to two years of payments. They must have sustained an income loss of at least 15 percent, be three to 12 months behind on their mortgage and have a “reasonable likelihood” of being able to get back on their feet. April 5, 2011
Homeless Addicts Get Help Without Getting Clean, SoberTears flow down Rachelle Ellison’s face as she sits in her one-bedroom apartment here, reflecting on the 17 years she spent on the streets of the nation’s capital. Four years ago, Ellison, now 42, says she was a crack cocaine and alcohol addict who slept on park benches. Today she has a place to live and has taken classes at Everest College, in Arlington, Va., in a medical assistants program. Ellison received her apartment through Housing First, a controversial nationwide initiative to house chronically homeless people without first requiring them to get treatment for their addictions. March 31, 2011
The Incredible Shrinking CityPeople in Cleveland, Detroit, Flint and Youngstown, and in Bilbao, Leipzig and Turin, have plenty of ideas about what cities can do with vacant and abandoned land: urban agriculture; watershed restoration and stream daylighting; side-lot programs; extensive park networks; public arts zones; new museums. What we need is a new mindset. Physical growth has been a powerful American narrative, embodied in huge public expenditures from the Louisiana Purchase to the Interstate Highway System and the mortgage interest deduction. The nation now needs a parallel commitment to physical ungrowth. Ungrowth is not surrender but a phase of urban evolution. March 31, 2011
Cozy Pocket Neighborhoods have Sprawl on the MoveAfter decades of living large — mini-mansions in sprawling subdivisions the size of cities — some Americans are retrenching and showing a new appreciation for small, cozy and neighborly. Architect Ross Chapin, who designed Greenwood Avenue Cottages, where the Duceys live, has coined a term for these new compact communities: pocket neighborhoods.His new book — Pocket Neighborhoods, Creating Small-Scale Community in a Large-Scale World— documents a surprisingly broad array of such developments across the USA, from urban neighborhoods to suburban and rural areas. March 30, 2011
Home Prices Still Falling in JanuaryThe U.S. housing market’s condition continues to worsen, heightening expectations of a double-dip housing recession. U.S. home prices dropped in January, and the average retreated to summer 2003 levels, the Standard & Poor’s Case-Shiller home-price indexes show. Its 20-city composite index shows prices down 3.1% from January 2010 levels, S&P says. “The housing market recession is not yet over, and none of the statistics are indicating any form of sustained recovery,” says David Blitzer, of S&P. March 30, 2011
HUD ASSUMES CONTROL OF LAFAYETTE, LOUISIANA HOUSING AUTHORITYThe U.S. Department of Housing and Urban Development (HUD) announced today that, effectively immediately, it is taking control of the Housing Authority of the City of Lafayette (HACL), citing numerous financial deficiencies over the past three years and a leadership vacuum following the resignation of the agency’s executive director last October. In a letter to the Lafayette City-Parish President Joseph Durel, HUD says the agency violated federal law and defaulted on its Public Housing Annual Contributions Contract (ACC) — the agreement that local housing authorities enter into with the federal government to administer HUD’s public housing programs. March 30, 2011
Foreclosure Aid Fell Short, and Is FadingLast summer, as President Obama’s premier plan to save millions of Americans from foreclosure foundered, the administration tossed a new life preserver to homeowners. Officials unveiled a $1 billion program to offer loans to help the jobless pay their mortgages until they could find work again. It was supposed to take effect before the end of the year, but as of today, the program has yet to accept any applications. March 30, 2011
Home Sellers Pull Out All the Stops to Attract Wary BuyersSpring for home sellers is like Christmas for retailers — peak season. Normally, that might mean a few giveaways. A better brand of siding here. An expanded choice of tile color there. But a new car? “Obviously, business has been soft,” says Kim Meier, president of KLM Homebuilders, the company offering the promotion. The festival of upgrades on new homes — especially in the housing markets that were savaged by the subprime meltdown — is queasy confirmation of just how much the housing market remains the sickest part of the U.S. economy. March 28, 2011
FHA Slow to Flag Problem Lenders, Stop ThemWhen the Federal Housing Administration stopped a New York mortgage company from making FHA loans in June, the move came nearly three years after agency records flagged the company’s lending practices as potentially fraudulent. The FHA, the government agency created to help increase homeownership, knew since at least October 2007 that Cambridge Home Capital posed a danger to home buyers and repeatedly violated the agency’s safe-lending standards. Even so, a USA TODAY investigation found, the agency continued to approve mortgages issued by the company. March 28, 2011
Cabrini-Green to Exit With Poetry and LightsThe last high-rise at Cabrini-Green is coming down starting Wednesday, stirring strong emotions among former residents who remember the troubled housing project as their home and community, as well as a place of menace. Those feelings will emerge in an unusual light display that will accompany the demolition. Earlier this month, young people who lived in and around the project gathered nearby at the Seward Park field house to record poetry that will determine the rhythms of pulsating colored light beamed from the windows of the 15-story building. The lights will be extinguished, apartment by apartment, as the high-rise comes down. March 28, 2011
Some Builders, Mortgage Lenders Offer Home Buyers a Deal: Free Job-loss InsuranceHomebuilders are offering it to new buyers, and some of the country’s largest banks and mortgage lenders think it’s a win-win idea for shaky economic times: insurance programs that make borrowers’ mortgage payments for up to six months if they lose their jobs during an initial one-year to two-year coverage period. Better yet, the bank, builder or other sponsor of the plan typically provides it with no direct, out-of-pocket cost to the consumer, as part of its marketing package. Most programs come with specific dollar ceilings on coverage, often ranging from $2,000 to $2,500 a month. Some limit the amount they will pay to principal and interest only. Others cover principal, interest, property taxes and hazard insurance up to a specific amount. March 28, 2011
Housing Counsel: Arbitration can Sometimes be as Expensive as LitigationSay you have a problem with your contractor who claims you still owe him money. Or maybe the people who signed a contract to buy your house did not go to settlement and now want their earnest money returned. How can such disputes be resolved? Obviously, litigation is one answer, but that is time-consuming, expensive and always uncertain. Often the cost of litigation may exceed the amount of money at the heart of the controversy. But there are alternatives, including arbitration and mediation. March 28, 2011
Trying to Save a ‘Neighborhood Built to Fail’There’s only one way in to Windy Ridge — across freight train tracks that zipper up the subdivision on three sides. Living room windows offer views of a cardboard box factory and a Pepsi bottling plant. It’s an unlikely place to come looking for the American Dream. But to appreciate Wigena Tirado’s bond with this neighborhood of 133 vinyl-sided starter homes planted on a mostly treeless slope, listen to how she got there. March 28, 2011
Flawed Housing Data Might Mask Depth of WoesTwo high-profile reports on home sales this week confirmed that the housing market is still mired in a deep slump with prices still falling and sales activity sluggish at best. In fact, the market may be in much worse shape than even those numbers suggest. Figures from the National Association of Realtors that are among the most closely watched indicators on the housing market have been called into question by economists who say they may overstate existing-home sales activity by up to 20 percent. March 28, 2011
Trying to Save a City, or at Least a PartIn a city where residents are still fleeing at a historic rate, there is no shortage of clichéd reminders that this place has been redefined by abandonment: crumbling factories, blocks filled with boarded-up houses, and empty streets overgrown with weeds. But here, along the tidy, tree-lined streets that wind through a collection of neighborhoods known as Grandmont Rosedale, where owning one of the stately brick homes has long been a local symbol of success for the city’s striving middle class, residents are digging in to fight the flight and hold their community together. March 26, 2011
Renters Need Insurance, tooA majority of renters might be overestimating just how much their landlord is responsible for — when it comes to insurance. Only 43% of renters in 2006 had insurance, compared with 96% of homeowners, according to a 2006 poll by the Insurance Research Council. Most apartment dwellers aren’t being intentionally irresponsible on this front but simply don’t know that they need it, says Jeanne Salvatore, senior vice president of public affairs at the organization. “Tip No. 1 for a renter is simply to get the insurance,” says Salvatore. March 25, 2011
Ignorance is Not Bliss on Homeowners CoverageYour homeowners insurance policy probably isn’t something you review as often or as closely as bank statements or tax documents — but staying in the dark can cost you, experts say. Nearly a third of consumers polled by MetLife last June didn’t know how much their home, condo or townhouse was insured for. Checking up on a homeowners insurance policy isn’t typically on an average customer’s to-do list, but it doesn’t have to be hard, says Madelyn Flannagan, the Independent Insurance Agents & Brokers of America vice president of agent development, education and research. Insurers are required to send renewal notices each year, reflecting changes in coverage and premium charges. And insurance information often comes with annual interest statements from your mortgage company, she says. March 25, 2011
Investing in Real Estate Via REITs, Real Estate Mutual FundsYou’ve probably read about the troubled real estate industry, in stories with headlines like “Real estate continues slump,” “Real estate woes deepen,” and “Real estate surrenders after three-county car chase.” But real estate funds have been on a tear. The past two years, the average real estate fund has soared 128%, including reinvested dividends, vs. 72% for the average stock mutual fund. The question now: Are real estate funds overvalued? The answer: No, but they sure aren’t cheap. Real estate funds invest primarily in real estate investment trusts, or REITs — which, in turn, invest in commercial real estate. You can buy REITs that specialize in office buildings, shopping malls, hotels and even self-storage facilities. March 25, 2011
HUD ISSUES REPORT ON NUMBER OF VERY LOW-INCOME RENTERS WITH DISABILITIES WHO EXPERIENCED ‘WORST CASE HOUSING NEEDS’The U.S. Department of Housing and Urban Development (HUD) today issued a report summarizing efforts to the measure the extent of “worst case housing needs” among very low-income renter households with disabilities. HUD’s 2009 Worst Case Housing Needs of People with Disabilities finds that approximately 1 million households that included nonelderly people with disabilities had worst case needs. “Worst case housing needs” are defined as very low-income renters (incomes below half the median in their area) who do not receive government housing assistance and who either paid more than half their monthly incomes for rent, lived in severely substandard conditions, or both. March 25, 2011
HUD MAKES AVAILABLE $61 MILLION TO SIX APPLICANTS TO PROVIDE QUALITY AFFORDABLE HOUSING, REVITALIZE NEIGHBORHOODSU.S. Housing and Urban Development posted a Notice of Funding Availability(NOFA) today for the six entities that were last week named finalists to receive the first Implementation Grant funding through HUD’s new Choice Neighborhoods Initiative (CN). On Friday, HUD announced that the entities listed below would compete for the $61 million in available funding that will be used to transform distressed areas of concentrated poverty into viable and sustainable mixed-income neighborhoods. March 25, 2011
Fix or Evict? Loan Modifications Return More Value Than ForeclosuresMortgage servicers, who make the decision of whether to modify mortgages, are supposed tomaximize revenue to the investor. When the reason for a mortgage delinquency is that theborrower can no longer afford the mortgage, either because of wage reductions or job loss or dueto a rate reset on the mortgage, the servicing contract generally provides for some tools that theservicers can use; primary among them is a modification of the mortgage. If a borrower hasfallen behind temporarily too far to catch up immediately but can afford the mortgage goingforward, a modification might consist simply of a capitalization of arrearages. For mostborrowers, however, it will be necessary to reduce the monthly payment (by reducing the interestrate, extending the loan term, or forbearing or forgiving principal) if they are going to be able tostay in their home. March 25, 2011
Falling Sales of New Homes Weaken EconomyA new home, the dream of many would-be buyers, makes less and less financial sense in many places. A wave of foreclosures has driven down the cost of previously occupied homes and made them even more of a comparative bargain. By contrast, new homes have become more expensive. The median price of a new home in the United States is now 30% higher than that of a home being resold, more than twice the gap during a healthy housing market. Such a disparity can be a drag on the economy. New homes represent a small fraction of sales, but they cause economic ripples, bringing business to construction and other industries. Sluggish sales of new homes deprive the economy of strength. March 24, 2011
Treasury Will Begin Selling Last Batch of Mortgage SecuritiesThe Treasury Department said Monday that it will begin selling its remaining $142 billion in holdings of mortgage-backed securities purchased during the financial crisis. Treasury officials said the first sales of up to $10 billion in the securities, primarily issued by troubled mortgage companies Fannie Mae and Freddie Mac, would start this month. Assistant Treasury Secretary Mary Miller said that the sales represented a continuation of efforts by the government to wind down the emergency programs put in place in 2008 and 2009 to help restore market stability. March 24, 2011
Unclear Oversight Yields Repeated Violations at Home for Troubled YouthIn Alameda County, there is just one emergency group-home shelter for emotionally disturbed teenagers. It is called Refuge, for Resource Environment for Underprivileged Groups Enterprise Inc., but according to state documents and former employees, it is anything but a safe haven. Refuge, based in Oakland, has been cited 118 times for health, safety, personal rights and procedural violations during its 11-year existence, public records show. Violations included providing insufficient food and clothing, mishandling of residents’ money and medications, and abusive treatment by an inadequately trained staff. On top of that, therapeutic support for the troubled young residents was all but nonexistent, two former employees say. March 24, 2011
S.R.O. Hotel Managers Question Their Obligations to the PoliceWhen Virgilio Candari bought the Luz Hotel in the Tenderloin district of San Francisco in 2004, he replaced the dirty mattresses, painted the walls and increased the rates. Then he did what he knew all other S.R.O. managers did: he started helping the police. Mr. Candari and nine other operators of single room occupancy hotels in the city told The Bay Citizen that they regularly provided the police with access to hotel registries, receipts, surveillance videos and keys. March 24, 2011
Detroit Census Confirms a Desertion Like No OtherLaying bare the country’s most startling example of modern urban collapse, census data on Tuesday showed that Detroit’s population had plunged by 25 percent over the last decade. It was dramatic testimony to the crumbling industrial base of the Midwest, black flight to the suburbs and the tenuous future of what was once a thriving metropolis. It was the largest percentage drop in history for any American city with more than 100,000 residents, apart from the unique situation of New Orleans, where the population dropped by 29 percent after Hurricane Katrina in 2005, said Andrew A. Beveridge, a sociologist at Queens College. March 23, 2011
How a Building Dispute Can Sink a SaleBoulevard East, on Boerum Place, also known as Brooklyn Bridge Boulevard, was one of the first condominiums finished in the building boom, and is now the latest to go to court. Marc Held, a lawyer representing the residents, said he filed the case because of the impending six-year statute of limitations under state law for buyers to sue developers for breach of contract or fraud. Mr. Procida, who also constructed the Richard Meier tower On Prospect Park, said he wanted to fix the building’s problems. “We hope to address any legitimate issues they have, and we stand by our product,” Mr. Procida said. March 23, 2011
Deal on Stalled Condo Project Is First Under a City ProgramIn the summer of 2009, city officials began a $20 million program that would allow developers to convert stalled condominium sites into moderate-income housing. The initial response was tepid, as many developers and investors clung to the hope that the New York housing market would rebound.Now, nearly two years later, the city has closed on its first deal under the program, which was the brainchild of City Council Speaker Christine C. Quinn, officials announced on Monday. The weed-choked lot at 382 Lefferts Avenue in the Prospect-Lefferts Gardens neighborhood of Brooklyn, originally envisioned as the site of a 26-unit condo building, will instead have a 46-unit rental apartment building for middle-income residents. To be eligible as tenants, households of four cannot earn more than $79,200 a year. March 23, 2011
New Mortgage Regulations Could Hurt HousingNew regulations limiting mortgage brokers’ compensation go into effect on April 1, and they might prove to be appropriate for an April Fools’ Day. Though aimed at unscrupulous mortgage brokers, it seems the regulations will instead hit the nation’s struggling housing market. The Federal Reserve Board says that its regulatory goal is to “protect mortgage borrowers from unfair, abusive, or deceptive lending practices that can arise from loan originator compensation practices.” The basic idea is to prevent loan officers from steering borrowers into riskier types of loans or a higher-than-average interest rate to make a higher commission. March 23, 2011
Homeownership May be for the Few, Not the ManyHomeownership has long been associated with investment savvy. Tax breaks, equity growth and the sanctity of the American dream — the real estate community has made a pretty compelling case over the years for the merits of purchasing property versus throwing your money away on rent. But as the housing market redefines itself in the wake of the subprime mortgage crisis and the ensuing industry recession, a number of economists who follow the industry suggest the benefit of buying no longer applies. Others say it never did. March 21, 2011
Mortgage Rates Tumble; 15-year Average Falls Below 4%Fixed mortgage rates tumbled this week and 15-year loans dipped below 4% on average for the first time in three months. Rates follow the yield on U.S. Treasury bonds, which fell as bond prices rose on worries that the crisis in Japan could slow economic growth. Freddie Mac said Tuesday that the average rate on 15-year fixed mortgages, a popular refinance option, dropped to 3.97% from 4.15%. The last time the rate was below 4% was in mid-December. It reached 3.57% in November, lowest level on records dating back to 1991. The average rate on 30-year fixed mortgages fell to 4.76% from 4.88% the previous week. It hit a 40-year low of 4.17% in November. March 21, 2011
CPSC AND HUD ISSUE UPDATED REMEDIATION PROTOCOL FOR HOMES WITH PROBLEM DRYWALLThe U.S. Consumer Product Safety Commission (CPSC) and the U.S. Department of Housing and Urban Development (HUD) are issuing an updated remediation protocol for homes with problem drywall. A study conducted on behalf of CPSC by Sandia National Laboratories in New Mexico, finds no evidence of a safety hazard to home electrical systems. Sandia simulated long-term exposure of wiring and other electrical components to hydrogen sulfide gas, which is associated with problem drywall. March 21, 2011
CHARLES SCHWAB BANK TO PAY $30,000 TO SETTLE DISCRIMINATION COMPLAINT INVOLVING BORROWER WITH DISABILITIESThe U.S. Department of Housing and Urban Development today announced that Charles Schwab Bank has agreed to pay $30,000 settling allegations that the bank refused to accept a loan application from the adult son of a Metairie, Louisiana woman with disabilities. The son, who was acting with his mother’s power of attorney, tried to apply for a loan on his mother’s behalf, but was told that the bank did not accept powers of attorney for “incapacitated borrowers.” March 21, 2011
Attorneys General Try to Rein in Lenders’ Shabby Behavior on ModificationsWhen you take out a home mortgage, do you expect to be treated fairly and competently by your bank or loan servicer? Most likely you do. But the widely publicized “robo-signing” and foreclosure scandals suggest that for thousands of homeowners, fair dealing and competence have not been routinely available at some of the largest mortgage servicing operations in the country. March 21, 2011
With Short-sale Offer refused, Foreclosure May End Up the Best OptionQ. We built a spec house in 2007 as the market declined. We’ve tried to do everything to get it sold and recently received a short-sale offer on the home. At first, our bank agreed to change the loan into an interest-only loan to help with cash flow, but we can’t manage to cover those payments. Then our bank went out of business and was taken over by another bank. We approached our new lender with the short-sale offer and agreed to pay most of the difference between the amount offered by the buyer and the amount owed to the bank by using our retirement savings. But they declined to accept the offer because of a loss-sharing agreement they have with the government. March 21, 2011
Mortgage Rates Down as Investors React to Japan CrisisMortgage rates fell to the lowest level in almost two months, tracking a drop in Treasury yields as Japan’s deepening nuclear crisis spurred demand for relatively safe investments. The average rate for 30-year fixed loans declined to 4.76 percent this week from 4.88 percent last week, according to Freddie Mac. The average 15-year rate was 3.97 percent, down from 4.15 percent. The average rate on adjustable-rate mortgages that are fixed for the first five years was 3.57 percent this week, down from 3.73 percent last week. Rates on one-year ARMs averaged 3.17 percent, down from 3.21 percent. March 21, 2011
Prefabricated Tower May Rise at Brooklyn’s Atlantic YardsIn a bid to cut costs at his star-crossed Atlantic Yards project in Brooklyn, the developer Bruce C. Ratner is pursuing plans to erect the world’s tallest prefabricated steel structure, a 34-story tower that would fulfill his obligation to start building affordable housing at the site. The prefabricated, or modular, method he would use, which is untested at that height, could cut construction costs in half by saving time and requiring substantially fewer and cheaper workers. And the large number of buildings planned for the $4.9 billion Atlantic Yards — 16 in all, not including the Nets arena now under construction — could also make it economical for the company to run its own modular factory, where walls, ceilings, floors, plumbing and even bathrooms and kitchens could be installed in prefabricated steel-frame boxes. March 17, 2011
Harlem Is Losing a Piece of ClintonWhen Bill Clinton officially began his post-presidency in Harlem in 2001, he was greeted with open arms — thousands of them. At a plaza near his new office, at 55 West 125th Street, a crowd of 2,000 residents and civic leaders gathered on a hot July afternoon to celebrate the arrival of a neighbor whose presence, two blocks from the landmark Apollo Theater, seemed to put a presidential stamp of approval on the neighborhood’s revival. March 17, 2011
Coveting Singapore’s Public Housing SystemSingapore’s public housing system is often touted as a model for other countries. The island nation houses more than 80% of its residents in public housing. It’s building eco-friendly apartment buildings that have green roofs and that use recycled water. Instead of renting the public housing units, Singaporeans can also become quasi-homeowners, buying 99-year leases on the properties that they can later sell at market prices. But as the economy here has recovered from the 2008 recession, public housing prices have skyrocketed. High prices are making it hard for some of the very residents for whom Singapore’s public housing was intended to buy a flat on the resale market. March 16, 2011
For Honolulu’s Homeless, an Eviction NoticeFrom his home on Ilalo Street, Banery Afituk can feel the breeze off Mamala Bay, two blocks away. Walking out his front door, to his right, he can make out the tops of the luxury ocean liners, and to his left, some of this city’s finer high rises. “I like it here,” he said, as his three children played around him. Home for Mr. Afituk, his pregnant wife and their children is, in fact, a tattered tent rising low off the sidewalk, one of dozens that have sprung up in a colony of homelessness near the downtown of this tropical tourist getaway. March 16, 2011
Real Estate Crisis? It Depends on SupplyReal estate’s future can often be understood by closely watching the supply of residential and commercial buildings. In early 2009, employment and gross domestic product were dropping sharply, and real estate values had plummeted from their highs in 2006. The housing market was already in crisis, so it felt right to expect the commercial real estate market to follow. Nouriel Roubini predicted, “More than 700 banks could fail as a result of their exposure to commercial real estate.” Elizabeth Warren later reported, “There is a commercial real estate crisis on the horizon.”And journalists frequently referred to a looming commercial real estate crisis. But none of this commentary noted how the supply situation in commercial real estate was drastically different than it was in housing. March 16, 2011
Allianz Starts Commercial Property Lending as Banks RetreatAllianz SE, Europe’s biggest insurer, will start to offer direct commercial real-estate loans in Germany this year and may expand into mortgage lending across the euro region. Allianz Real Estate will grant senior loans to German property buyers or borrowers refinancing existing debt, said Olivier Piani, chief executive officer of the property unit. Senior loans rank first for repayment in the event of a default. March 16, 2011
Read’s Walls to be SavedResponding to pressure from preservationists and civil rights activists fighting to preserve the former Read’s drugstore building downtown, developers of the $150 million Lexington Square project that would have razed the building now agree to incorporate two of its exterior walls into their project.Mayor Stephanie Rawlings-Blake plans to announce Tuesday that the developer, Lexington Square Partners, has agreed to save the walls facing Howard and Lexington streets from the building — site of a 1955 lunch counter sit-in. Additional plans to commemorate the sit-in will be announced in the coming weeks, according to the mayor’s office. March 16, 2011
Insurance Industry Well-shielded from Japan QuakeJapan’s massive earthquake, tsunami and nuclear disaster is likely to be the costliest natural catastrophe on record but the impact on the private insurance industry probably will not surpass that of Hurricane Katrina in 2005. That is in part because Japanese homeowners and businesses rely heavily on a government-funded earthquake insurance system, rather than private insurance. As a result, only about 14 to 17 percent of Japanese homes have private earthquake insurance, according to estimates from the Reinsurance Association of America. March 16, 2011
Nevada’s Boom Ends in Record Number of Empty HomesThe promise of palm tree groves and low-priced real estate lured Alan and Katherine Ackerly across the Rocky Mountains from Denver to Nevada in 2004, where thousands of new houses beckoned brightly as any neon sign. They came to buy their retirement home. But the real estate bust took its toll, with a flood of short sales and foreclosures in the market, and last month the Ackerly’s dream home was foreclosed on, too. “I pretty much gave it back to them,” said Alan Ackerly, a 57-year-old electrician who stopped paying his mortgage because he owed more than the house was worth. March 16, 2011
UNHEALTHY HOMES POSE REAL DANGER TO MILLIONS OF FAMILIESMillions of U.S. families face health and safety hazards like mold, lead, pest infestation and the physical deterioration of their homes. These problems are particularly common among some of the nation’s most vulnerable populations: children, seniors, the disabled and low-income families. To address these widespread issues, the U.S. Department of Housing and Urban Development (HUD), the U.S. Centers for Disease Control and Prevention, the U.S. Environmental Protection Agency, U.S. Department of Energy and the U.S. Department of Agriculture will host more than 3,000 national health and safety experts in Denver from June 20 - 23 at the National Healthy Homes Conference (NHHC). Under the theme, Leading the Nation to Healthy Homes, Families and Communities, this is the most comprehensive forum ever held on the issue. March 14, 2011
Bank of America Unit Tried to Hide Foreclosure Information, Hackers SayA hacker organization known as Anonymous released a series of e-mails on Monday provided by a former Bank of America employee who claims they show how a division of the bank sought to hide information on foreclosures. The bank unit, Balboa Insurance, was acquired by Bank of America when it bought the mortgage lender Countrywide Financial in 2008. Balboa deals in so-called force-placed insurance coverage on mortgages. The e-mail messages concern the removal of information linking loans to other documentation. March 14, 2011
Borrower Has Second Thoughts About that Second ChanceQ. I was going into foreclosure, but the bank gave me a loan modification. I agreed to the modification at the beginning, but now I see it was a mistake and think foreclosure would be better. What do I have to do - just stop paying? March 14, 2011
Major Changes Ahead for Mortgage System as U.S. Seeks to Scale Back Role in HousingFundamental changes are probably ahead for the American mortgage system as the federal government pushes to unwind its unprecedented involvement in the housing market. These changes could significantly raise the down payments demanded by lenders, curtail the availability of long-term mortgages with fixed interest rates, and increase the cost of borrowing in general March 14, 2011
RECOVERY ACT CHANGED APPROACH TO BUSINESS, LAID FOUNDATION FOR AMERICAN CITIES TO WIN THE FUTUREAmerica’s cities are better prepared to be sustainable economic engines according to a new report just released by the Department of Housing & Urban Development. The report titled The American Recovery and Reinvestment Act: Working for America’s Cities found that the Recovery Act has helped position American cities to out-educate, out-innovate, and out-build our competitors. The collaborative and innovative approaches initiated during the implementation of the Recovery Act have laid the foundation for American cities to win the future. March 10, 2011
Foreclosure Activity Slows Sharply in FebruaryThe number of homes receiving a foreclosure-related notice fell to a 36-month low last month, as lenders delayed taking action against homeowners because of heightened scrutiny over banks’ handling of home repossessions. Some 255,101 properties received at least one foreclosure-related notice in February, down 14% from January and down 27% from the same month last year, foreclosure listing firm RealtyTrac said Thursday. The firm tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead to a home eventually being lost to foreclosure. March 10, 2011
Mortgage Applications Spike; Home Sales Still WeakThe number of people applying for a mortgage jumped last week. But analysts cautioned that the increase was likely driven by investors, not first-time homebuyers who are needed to help housing markets recover. The Mortgage Bankers Association says its overall mortgage application index rose 16.1% from the previous week, the biggest jump since June. But the index is still far off where it was last spring and summer following four straight months of declines. The refinance index rose 17.2% and the purchase index increased 12.5%, to the highest level so far this year. The refinance share of activity increased to 65.5% of all applications from 64.9% the previous week. March 10, 2011
Baltimore Hosts US House Hearing on ForeclosuresKevin Matthews calls himself an example of everything that can go wrong when lenders abuse the system and aren’t held accountable. Matthews, who testified Tuesday before the U.S. House Committee on Oversight and Government Reform, was a contractor at Fort Meade with a good income when he bought his home in Baltimore. After he was injured in a 2008 car accident and lost his job, he knew he would have trouble keeping up with the mortgage. March 10, 2011
More Foreclosure Irregularities Alleged in MarylandProsecutors have launched an investigation into a complaint that more than 1,000 deeds for homes foreclosed upon in Maryland were improperly executed — the latest development suggesting widespread problems in the way foreclosures have been handled in the state. The complaint, filed last week by a paralegal formerly employed by the Shapiro & Burson law firm, lays out allegations that attorneys who were supposed to be signing deeds and key foreclosure paperwork for Maryland properties instead instructed others to falsify their signatures on the documents. March 10, 2011
Baltimore Lawyer Admits to Rigging Tax SalesA Baltimore real estate attorney has admitted to conspiring with other local lawyers to rig the bids for millions of dollars’ worth of government tax auctions in Maryland, newly unsealed court records show.Attorney John Reiff stated under oath that he and two law partners helped fix bids for the purchase of “large numbers” of property tax debts, or tax liens, sold by tax assessors at auctions in Baltimore and several Maryland counties from 2003 to 2007, according to court filings made public last month. March 10, 2011
Underwater Mortgages Rise as Home Prices FallThe number of Americans who owe more on their mortgages than their homes are worth rose at the end of last year, preventing many people from selling their homes in an already weak housing market. CoreLogic said Tuesday that about 11.1 million households, or 23% of mortgaged homes, were underwater in the October-December quarter. That’s up from 22.5%, or 10.8 million households, in the July-September quarter. The number of underwater mortgages had fallen in the previous three quarters. But that was mostly because more homes went into foreclosure. March 9, 2011
Bank Chief Rejects Idea of Reducing Home LoansShowing resistance for the first time against government pressure to write off tens of billions worth of mortgage debt, Bank of America executives said on Tuesday that the idea was unworkable and warned that it would be unfair to borrowers who had managed to stay current on their loans. “There’s a core problem that if you start to help certain people and don’t help other people, it’s going to be very hard to explain the difference,” said Brian T. Moynihan, the chief executive of Bank of America. “Our duty is to have a fair modification process.” March 9, 2011
AARP Sues U.S. Over Effects of Reverse MortgagesReverse mortgages, which pay older homeowners a regular sum against the equity in their house, are supposed to shield borrowers from economic upheaval. But the popular loans have become tangled up in the real estate collapse. AARP, the seniors’ organization, filed suit Tuesday against the Department of Housing and Urban Development, which regulates reverse mortgages. The suit asserts that policy changes by HUD are pushing older homeowners into foreclosure. The case was filed in Federal District Court for the District of Columbia by the AARP Foundation, the organization’s charitable arm, and the law firm of Mehri & Skalet on behalf of the surviving spouses of three homeowners who had bought reverse mortgages. All three are facing eviction, the suit says. March 9, 2011
Forgiven Debt can Trigger a Tax BillGetting a tax bill after you’ve gone through foreclosure is like having a bucket of ice water poured over your head after someone has made off with your pants. You’ve lost your home and probably don’t have much money, so why would you owe the IRS anything? Here’s why: The IRS treats forgiven or canceled debt as taxable income. For example, suppose you owe $400,000 on a home that goes into foreclosure, the bank sells it for $300,00 and writes off the rest of your loan. Under the tax code, the $100,000 in forgiven debt is taxable income. March 8, 2011
Foreclose Deal Near, State Officials SayA broad agreement could be struck within two months to overhaul how millions of foreclosures are handled by the nation’s biggest banks and to expand the use of home loan modifications, according to Tom Miller, the attorney general of Iowa. All 50 state attorneys general, along with federal regulators, have been stepping up pressure on the mortgage servicers over their foreclosure lapses in recent days and presented them with an outline of a settlement late last week. But when Mr. Miller made his comments at a press conference here on Monday, it was the first time officials have said when an agreement might come. March 8, 2011
A Common-sense Way to Mend the Draconian Appraisal ProcessIf federal regulators are truly concerned about the quality and independence of home appraisals - a cornerstone of sound mortgage lending - why don’t they simply prohibit appraisers from learning the contract price before they perform their assessment of a home’s value? Instead of this commonsense solution, regulators continue to come up with schemes that govern how appraisers are chosen - and which simultaneously drive up prices to consumers while cutting the income of appraisers. March 8, 2011
Mortgage Rates Fall Again, Average 4.87%The average rate on 30-year fixed mortgages dropped this week, following lower yields on Treasury bonds. Freddie Mac said Thursday that the average rate on a 30-year loan slipped to 4.87% from 4.95% last week. It hit a 40-year low 4.17% in November. The average rate on 15-year fixed home loans fell to 4.15% from 4.22%. It reached 3.57% in November, lowest on records dating back to 1991. Mortgage rates tend to track the yield on 10-year Treasury notes. Investors are putting more money into Treasurys, concerned that Libya’s uprising will keep oil prices above $100 a barrel and hurt consumer spending. Rising prices have lowered yields, since bond prices and yields move in opposite directions. March 4, 2011
Foreclosure FolliesRecent price data show home values at nearly their lowest levels in the postbubble era, and a coming tide of foreclosures means prices will drop further. Seven million families have lost their homes so far, and another three million foreclosures are expected through 2012. The ongoing crash is further evidence that the government’s antiforeclosure efforts have fallen short and America’s struggling homeowners need more help. So what are House Republicans proposing? They want the government to get out of the antiforeclosure business altogether and leave homeowners to fend for themselves. The result would be hundreds of thousands of additional foreclosures and steeper price declines. March 4, 2011
Without Loan Giants, 30-Year Mortgage May Fade AwayHow might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac? The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say. Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than the coveted customers in the suburbs. Lenders could charge fees for popular features now taken for granted, like the ability to “lock in” an interest rate weeks or months before taking out a loan. March 4, 2011
Two Bills Highlight Debate Over Who Controls Groundwater: Landowners or the StateIt sounds simple: Who owns the groundwater in Texas? But this issue, like others in the hot-button area of aquifer planning, is embroiled in a policy battle. At a crowded hearing earlier this week, members of the State Senate’s Committee on Natural Resources heard testimony on a bill introduced by Senator Troy Fraser, Republican of Horseshoe Bay and the committee’s chairman, that would declare that landowners have a “vested ownership interest” in the water beneath their land. A less discussed second bill, filed by Senator Robert L. Duncan, Republican of Lubbock, recognizes both landowner rights and the “compelling public interest” of effective groundwater management. March 4, 2011
Obama Officials, Attorneys General Closer to Possible Deal with Banks in Foreclosure MessSenior Obama administration officials, newly joined by state attorneys general, were on the brink Thursday of finalizing major elements of a possible settlement with large U.S. banks accused of flawed and fraudulent foreclosure practices, sources familiar with the discussions said. But absent from this otherwise united government front, which is preparing to submit a proposed settlement to financial firms within days, is the regulator of the nation’s largest banks, the Office of the Comptroller of the Currency. March 4, 2011
O’Malley Wind Plan Draws QuestionsA plan by Gov. Martin O’Malley to require the state’s energy utilities to invest in wind power is the latest item in his legislative agenda to face skepticism from an ordinarily receptive General Assembly. O’Malley fielded tough questions Thursday about a package of incentives for the wind energy industry from members of the House Economic Matters Committee, who said the plan would cause everyone’s energy costs to rise while funneling profits to a small group of developers. March 4, 2011
The Next Real Estate Bubble: Farmland?The 80 acres of rich farmland that Jeff Freking and his brother Randy bought near Le Mars, Iowa, on Monday for $10,000 an acre would seem to have nothing in common with a condo in Miami or a house in Las Vegas. But as prices for agricultural land surge across America’s grain belt, regulators are warning that a new real estate bubble may be forming — echoing the frothy boom in home prices that saw values in Miami and Las Vegas skyrocket and then plummet. “It just seems to be going up in leaps and bounds here,” said Jeff Freking, who bought a similar farm for $6,000 an acre just two years ago. “Everybody thinks it’s crazy.” March 4, 2011
OBAMA ADMINISTRATION RELEASES FEBRUARY HOUSING SCORECARDThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the February edition of the Obama Administration’s Housing Scorecard. The latest housing figures show increased existing home sales as home affordability remains high, but officials caution that the market remains fragile, as prices are unsettled. March 3, 2011
Officials Disagree on Penalties for Mortgage MessEven as state attorneys general and regulators in Washington approach the end of their investigation into abuses by the nation’s biggest mortgage companies, deep disputes are emerging over how much to punish the banks as well as exactly who should benefit from a settlement. The newly created Consumer Financial Protection Bureau is pushing for $20 billion or more in penalties, backed up by the attorneys general and the Federal Deposit Insurance Corporation. March 3, 2011
House May Kill Obama’s Foreclosure-prevention ProgramsThe Obama administration’s main initiative to help struggling borrowers avoid foreclosure could soon be killed in the House, where many Republican lawmakers have complained about the program’s lackluster results. The initiative, known as the Home Affordable Modification Program, or HAMP, aims to reduce borrowers’ monthly payments to affordable levels. When it was launched in March 2009, the administration projected that it would prevent 3 million to 4 million foreclosures before it expired in December 2012. March 3, 2011
In Foreclosure Settlement, U.S. May Force Banks to Meet Loan-modification QuotasAs part of a settlement with banks that engaged in shoddy foreclosure practices, the Obama administration is weighing whether to impose quotas that would force the firms to modify a specific number of mortgages for distressed borrowers, sources familiar with the discussion said. The move would be an escalation in the administration’s efforts to get banks to take more steps to reduce foreclosures. Federal and state officials have been moving toward a settlement that would penalize the mortgage servicers for abusive foreclosure practices and use the fines to help provide relief for underwater borrowers, whose homes are worth less than what is owed on the mortgage. This help could take the form of reducing the outstanding principal that the borrowers owe on their loans. March 3, 2011
‘Transformative’ Projects Eyed for Baltimore’s Business DistrictThe Downtown Partnership plans to unveil an ambitious proposal Friday to create more than $100 million worth of new parks and public plazas throughout the central business district, including major projects for the Inner Harbor, Charles Center and west side. The proposal would transform the downtown landscape, with a green oasis where the 1st Mariner Arena stands and possibly the demolition of the Lexington Market Arcade to reopen the street as a public thoroughfare. The proposed work could also involve the realignment of city streets to make way for plazas and streetscape improvements. March 3, 2011
Warren Buffett: Buy Affordable Home, Not Your Dream Home“Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house they can afford,” says investor Warren Buffett, the third-richest man in the U.S., who still happens to reside in the 6,000-square-foot stucco house he bought in 1958 for $31,500.“Home ownership makes sense for most Americans, particularly at today’s lower prices and bargain interest rates,”; he wrote in a February 26 released letter he wrote to shareholders. But, “[a] house can be a nightmare if the buyer’s eyes are bigger than his wallet and if a lender — often protected by a government guarantee — facilitates his fantasy.” March 3, 2011
What’s Behind Home-sales-scuttling Low Appraisals?Low appraisals are hampering home sales, but whether they’re inaccurate is in dispute. Ten percent of the nation’s Realtors said they had sales canceled because appraisals came in below the prices buyers agreed to pay, according to a January survey by the National Association of Realtors. Another 15% said contracts were renegotiated after appraisals came in too low. Sellers dropped prices or buyers put up more cash. A third of home builders said they had lost sales because of low appraisals, according to an August survey by the National Association of Home Builders. That was up from 26% in a 2009 survey. March 1, 2011
Geithner Wants Housing Finance Overhaul Bill in 2 YearsThe Obama administration wants Congress to approve legislation within two years that gradually dissolves Fannie Mae and Freddie Mac, the nation’s huge but financially feeble housing market giants, Treasury Secretary Timothy Geithner is telling lawmakers. In remarks prepared for delivery Tuesday to the House Financial Services Committee, Geithner says failure to act by then would worsen market jitters and leave serious problems unaddressed. But in an apparent warning to some Republicans who want to quickly pull the government out of its role in supporting the mortgage system, he’s also warning that acting too fast would hurt too. March 1, 2011
Blackstone Buys 588 Shopping Malls for $9.4BStruggling shopping mall operator Centro Properties Group said Tuesday it has agreed to sell its 588 U.S. malls to New York-based Blackstone Group (BX) in a deal valued at $9.4 billion. The acquisition is Blackstone’s largest since its $20.1 billion takeover of Hilton Hotels Corp. in 2007 and shows faith that the weak U.S. retail market will improve. Centro, which is weighed down by massive debt, also announced a plan to pay off its creditors by giving them ownership of most of its Australian shopping malls. Ordinary shareholders and lower-ranked creditors would be left with about $100 million. March 1, 2011
HUD ISSUES GUIDANCE ON DISCRIMINATION COMPLAINTS FROM VICTIMS OF DOMESTIC VIOLENCEThe U.S. Department of Housing and Urban Development (HUD) recently issued guidance making it clear that residents who are denied or evicted from housing as a result of domestic violence may have basis to file a discrimination complaint with HUD under the federal Fair Housing Act. HUD’s guidance states that while the Violence Against Women Act (VAWA) provides some protections to victims of abuse who experience housing discrimination, the Fair Housing Act provides authority for HUD to investigate whether the denial or eviction violates the Act based on gender or another federally-protected basis. March 1, 2011
New-home Sales in January Drop 12.6%Sales of new homes fell significantly in January, a dismal sign after the worst year for that sector in nearly a half-century. New-home sales dropped to a seasonally adjusted rate of 284,000 homes last month, the Commerce Department said Thursday. That’s down from 325,000 in December and less than half the 600,000-a-year pace economists consider healthy. Bad weather likely hampered some sales, although the industry has been struggling since the housing bubble burst in 2006. February 25, 2011
U.S. House Republicans Move to End Foreclosure Aid ProgramsU.S. House Republicans plan to move forward with bills that would end anti-foreclosure programs put in place by President Barack Obama’s administration, saying they are doing more harm than good. The House Financial Services Committee will consider bills next week to terminate four mortgage assistance programs, including the Treasury Department’s Home Affordable Modification Program, or HAMP. “In an era of record-breaking deficits, it’s time to pull the plug on these programs that are actually doing more harm than good for struggling homeowners,” Representative Spencer Bachus of Alabama, the chairman of the panel, said today. “These programs may have been well-intentioned but they’re not working and, in reality, are making things worse.” February 25, 2011
‘Transformative’ Projects Eyed for Baltimore’s Business Districthe Downtown Partnership plans to unveil an ambitious proposal Friday to create more than $100 million worth of new parks and public plazas throughout the central business district, including major projects for the Inner Harbor, Charles Center and west side. The proposal would transform the downtown landscape, with a green oasis where the 1st Mariner Arena stands and possibly the demolition of the Lexington Market Arcade to reopen the street as a public thoroughfare. The proposed work could also involve the realignment of city streets to make way for plazas and streetscape improvements. February 25, 2011
Cash Deals Push Home Sales Higher, Prices DownMore people bought previously occupied homes in January, as sales surged on a rising number of foreclosure sales and cash deals. The rising number of distressed sales forced home prices down to their lowest level in nearly nine years, a troubling sign for the struggling housing sector. The National Association of Realtors said Wednesday that sales of previously occupied homes rose slightly last month to a seasonally adjusted annual rate of 5.36 million. That’s up 2.7% from 5.22 million in December. February 24, 2011
Government Settlement with Financial Industry Over Foreclosure Practices Draws NearState and federal officials, who have been negotiating with financial firms over how to address widespread abuses in foreclosure practices, are moving closer to a settlement that could force banks to reduce the principal on mortgages for some borrowers who owe more than their homes are worth. An official familiar with discussions between the government and the financial industry said the settlement also could require that banks increase their efforts to modify mortgages for distressed borrowers and pay penalties that could be used as restitution for homeowners who have wrongfully faced foreclosure. February 24, 2011
Home Prices Hit New Lows in Many Metro AreasHome prices in major U.S. cities tracked by a private trade group have fallen to their lowest levels since the housing bubble burst. The Standard & Poor’s/Case-Shiller home price index fell in December from November in all but one of the 20 cities it tracks. The 20-city index declined 1%. The only market to see a gain was Washington, D.C. February 23, 2011
Foreclosures Stretch to an Average 17 Months, May Get LongerThe average U.S. borrower in the throes of foreclosure hasn’t made a mortgage payment in 17 months, up from nearly 11 months two years ago — and the time frame may get even longer. Banks and mortgage servicers, who collect payments for lenders, are taking more time to complete foreclosures because of huge volumes of defaulted mortgages. Other factors include time-consuming reviews for loan modifications and additional delays that followed revelations late last year about improperly filed foreclosure documents in tens of thousands of cases. February 23, 2011
Strategies: Home Ownership is a Small-business IssueOwn a small business or hope to have one someday? Then pay attention when politicians start talking about making it harder to own a home because home ownership is a key factor in being able to finance your small-business dream, expand your existing small business, or keep your small business alive. Right now, both Democrats and Republicans are advocating policies that would make it far harder, and far more expensive, for most Americans to own a home. Listen closely, and you’ll hear commentators on both sides of the political spectrum say that it would be just fine for America to become a nation of renters. February 23, 2011
Bank Closings Tilt Toward Poor AreasUntil it closed its doors in December, the Ohio Savings Bank branch on North Moreland Boulevard was a neighborhood anchor in Cleveland, midway between the mansions of Shaker Heights and the ramshackle bungalows of the city’s east side. Now it sits boarded up, a victim not only of Cleveland’s economic troubles but also of a broader trend of bank branch closings that is falling more heavily on low- and moderate-income neighborhoods across the country. February 23, 2011
White House Wants Less Gov’t in Mortgage SystemThe Obama administration wants to shrink the government’s role in the mortgage system - a proposal that would remake decades of federal policy aimed at getting Americans to buy homes and would probably make home loans more expensive across the board. The Treasury Department rolled out a plan Friday to slowly dissolve Fannie Mae and Freddie Mac, the government-sponsored programs that bought up mortgages to encourage more lending and required bailouts during the 2008 financial crisis. February 23, 2011
Phasing out Freddie Mac, Fannie Mae could Boost What Other Borrowers Must PayFixed 30-year mortgage rates in the 5 percent range? Minimum down payments below 5 percent? Jumbo-size home loans for high-cost markets at regular interest rates? Kiss them good-bye - possibly sooner than you might guess. Take a snapshot of today’s mortgage market conditions and frame it, because it’s highly likely you’ll never see anything like these favorable combinations of rates and terms again. That’s the inescapable conclusion emerging from the Obama administration’s “white paper” on optional remedies for the two ailing giants of housing finance, Fannie Mae and Freddie Mac, along with events already underway in the national economy. February 23, 2011
Can You Ride a Rising Tide of Deductions?When you think of a second home, do you think of a secluded mountain cabin? Perhaps a pied-a-terre in an urban high-rise? What about a second home with no fixed address? One that floats? The Internal Revenue Service will even help you afford one of life’s great luxuries - a houseboat. How can this be? With budget deficits and fiscal austerity the theme of the day, how it is possible that the government will subsidize a boat purchase? February 23, 2011
Three Convicted in Mortgage-fraud SchemeA federal jury in Greenbelt convicted an Anne Arundel County woman and two men in connection with a $78 million mortgage scam that targeted homeowners and buyers, the U.S. attorney’s office in Maryland announced Friday. Alvita Karen Gunn, 33, of Hanover; Isaac Jerome Smith, 48, of Virginia; and Michael Anthony Hickson, 48, of New York were found guilty of fraud conspiracy, wire fraud and conspiracy to commit money laundering for their participation in the scheme while working for Metro Dream Homes. Two others previously pleaded guilty. February 23, 2011
Housing Data May Have Understated Extent of CollapseA housing trade association is examining the possibility that the data it releases underestimated the collapse of the housing industry, the Wall Street Journal reported on Monday. The National Association of Realtors, which issues the monthly existing home sales report that is closely watched by economists and financial markets, may have over-counted home sales dating as far back as 2007, the newspaper said in an article posted to its web site. February 23, 2011
JPMorgan Apologizes, Adds Programs for Military ClientsJPMorgan Chase on Tuesday announced programs geared toward military customers and veterans, and apologized for overcharging thousands of active-duty service members on mortgages and improperly foreclosing on more than a dozen. The steps include a program making certain military personnel eligible for reduced-rate mortgages; enhancing a mortgage modification program for personnel who are having trouble making payments; and a pledge not to foreclose on any active personnel while they’re deployed. JPMorgan Chase (JPM) Chairman and CEO Jamie Dimon said those programs and other initiatives “are a start, but in no way a finish” to the bank’s recent missteps involving military clients. February 16, 2011
HUD LAUNCHES “EVIDENCE MATTERS,” A NEW INDEPENDENT QUARTERLY PUBLICATION FOCUSED ON RESEARCH-BASED POLICYIn an effort to promote a new generation of data-driven and evidence-based policymaking, U.S. Housing and Urban Development Secretary Shaun Donovan today unveiled a new quarterly publication intended to inform housing and community development advocates, state and local policymakers, Congress and researchers on new approaches to issues related to housing and community development. Evidence Matters is an objective, unbiased publication intended to inform the broad housing and community development field on future policy directions based on research and data — in short, the evidence. February 16, 2011
FHA TAKES STEPS TO BOLSTER CAPITAL RESERVESAs part of ongoing efforts to strengthen the Federal Housing Administration’s (FHA) capital reserves, FHA Commissioner David H. Stevens today announced a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30- and 15-year loans. The upfront MIP will remain unchanged at 1.0 percent. This premium change was detailed in President Obama’s fiscal year 2012 budget, also released today, and will impact new loans insured by FHA on or after April 18, 2011. February 15, 2011
Fannie and Freddie: Obama Offers 3 Options for Mortgage Market OverhaulThe Obama administration laid out three broad options Friday for reducing the government’s role in the mortgage market. All three would almost certainly lead to higher interest rates and costs for borrowers. The administration said in a report that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down the troubled mortgage giants Fannie Mae and Freddie Mac. But rather than making a single recommendation, the administration offered Congress three scenarios and will let lawmakers shape the final policy. February 14, 2011
Housing Crash Is Hitting Cities Once Thought to Be StableThe rolling real estate crash that ravaged Florida and the Southwest is delivering a new wave of distress to communities once thought to be immune — economically diversified cities where the boom was relatively restrained. In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix. The bubble markets, where builders, buyers and banks ran wild, began falling first, economists say, so they are close to the end of the cycle and in some cases on their way back up. Nearly everyone else still has another season of pain. February 14, 2011
Avoiding Foreclosures: More States Give Help to HomeownersA $7.6 billion federal effort to help unemployed homeowners avoid foreclosure will soon be running in all 18 states sharing the funds. The Hardest Hit Fund, announced by President Obama a year ago and expanded to more states since then, largely targets lower-income jobless or underemployed homeowners. Those eligible receive forgivable loans for mortgage payments, or they may tap other programs, such as one to help them get current on mortgage payments. Generally, the loans are forgiven after five years if borrowers stay in the homes and keep current on payments. February 11, 2011
HUD AND VA ISSUE FIRST-EVER REPORT ON VETERAN HOMELESSNESS IN AMERICAFor the first time ever, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) today published the most authoritative analysis of the extent and nature of homelessness among American veterans. According to HUD and VA’s assessment, nearly 76,000 veterans were homeless on a given night in 2009 while roughly 136,000 veterans spent at least one night in a shelter during that year. This unprecedented assessment is based on an annual report HUD provides to Congress and explores in greater depth the demographics of veterans who are homeless, how veterans compare to others who are homeless, and how veterans access and use the nation’s homeless response system. February 11, 2011
Veterans More Likely to be Homeless, Study SaysMilitary veterans are much more likely to be homeless than other Americans, according to the government’s first in-depth study of homelessness among former servicemembers. About 16% of homeless adults in a one-night survey in January 2009 were veterans, though vets make up only 10% of the adult population. More than 75,000 veterans were living on the streets or in a temporary shelter that night. In that year, 136,334 veterans spent at least one night in a homeless shelter — a count that did not include homeless veterans living on the streets. The urgency of the problem is growing as more people return from service in Iraq and Afghanistan. The study found 11,300 younger veterans, 18 to 30, were in shelters at some point during 2009. Virtually all served in Iraq or Afghanistan, said Mark Johnston, deputy assistant secretary for special needs at the Department of Housing and Urban Development (HUD). February 10, 2011
Avoiding Foreclosures: More States Give Help to HomeownersA $7.6 billion federal effort to help unemployed homeowners avoid foreclosure will soon be running in all 18 states sharing the funds. The Hardest Hit Fund, announced by President Obama a year ago and expanded to more states since then, largely targets lower-income jobless or underemployed homeowners. Those eligible receive forgivable loans for mortgage payments, or they may tap other programs, such as one to help them get current on mortgage payments. Generally, the loans are forgiven after five years if borrowers stay in the homes and keep current on payments. Next month, all of the states plus the District of Columbia are expected to have launched partial, full or pilot programs, says Treasury Department spokeswoman Andrea Risotto. February 10, 2011
Counting by Race Can Throw Off Some NumbersThe federal Department of Education would categorize Michelle López-Mullins — a university student who is of Peruvian, Chinese, Irish, Shawnee and Cherokee descent — as “Hispanic.” But the National Center for Health Statistics, the government agency that tracks data on births and deaths, would pronounce her “Asian.” And what does Ms. López-Mullins’s birth certificate from the State of Maryland say? It doesn’t mention her race. Ms. López-Mullins, 20, usually marks “other” on surveys these days, but when she filled out a census form last year, she chose Asian, Hispanic, Native American and white. February 10, 2011
Unions to Press Chase on Modifying Additional MortgagesLeaders of two large New York City unions said Wednesday that they would push for their pension funds to sell their stocks and bonds in JPMorgan Chase if the bank did not help more struggling homeowners avoid foreclosure. The declarations were part of a campaign by New York Communities for Change to force the bank to modify more mortgages. Jon Kest, the group’s executive director, said Chase was singled out because it serviced a large number of mortgages in the city yet turned down a majority of requests for long-term mortgage modifications. February 10, 2011
Team Chosen for Work on Big Middle-Income Complex in QueensThe Bloomberg administration announced Wednesday that it had selected a team led by the Related Companies to construct the first phase of a development on the Queens waterfront that will be the largest middle-income complex built in the city since the 1970s. Related and its partners — Phipps Houses, the largest nonprofit operator of affordable housing in the city, and Monadnock Construction, one of the largest builders of affordable housing — will erect two towers at what is called Hunters Point South, with 908 rental apartments, at least 685 of which will be set aside for working- and middle-class families earning $32,000 to $130,000 a year. February 10, 2011
New Questions Raised in Mortgage FinancingBanks have been fighting with disgruntled bond investors and insurers for months, arguing that they do not need to buy back soured mortgages they placed inside securities before the financial crisis. Now, it turns out, some of those banks may have secretly collected partial payments on those same mortgages several years ago and pocketed that money. At least that is a theory being pursued by plaintiffs’ lawyers in some of the largest mortgage bond lawsuits, in which banks are accused of filling mortgage bonds with loans that did not belong there. The theory surfaced in a recently unsealed lawsuit against a mortgage unit at Bear Stearns, the failed investment bank that is now part of JPMorgan Chase. February 10, 2011
Bipartisan Support for Scrapping Fannie, Freddie Draws CriticismTo many Republicans and the Obama administration, Fannie Mae and Freddie Mac, the government’s mortgage giants, are ill. But rather than healing them, both sides agree that the companies should be left to die and that their support for the housing market should wither away. Some influential interest groups are taking issue with that surprising bipartisan consensus. They include small banks, real estate agents and consumer groups, who all say that Fannie and Freddie, or something similar, are crucial for sustaining the struggling housing market. February 10, 2011
Size of FHA-backed Mortgages Should Shrink, Report SaysThe size of mortgages backed by the Federal Housing Administration should shrink dramatically so the agency can protect itself against unnecessary financial risk, according to a report to be released this week by George Washington University. The FHA’s share of the mortgage market has surged in recent years, in part because it guarantees larger loans than at any other time in its history. As the mortgage crisis unfolded and credit markets froze, the FHA stepped in to insure loans of up to $729,750 for single-family homes in pricey markets, including the Washington region. February 10, 2011
Maryland Regulators Suspend Title Company’s LicenseMaryland regulators said Wednesday that they have suspended the license of a Crofton-based title company after learning that more than $1 million meant to be held aside for real estate transactions was instead used to pay business expenses. John J. Dwyer and Joseph C. Hughes, co-owners of Beltway Title and Abstract Inc. and related settlement companies, did not appear at a hearing Wednesday to defend themselves, the Maryland Insurance Administration said. Licenses for all the firms were suspended. February 10, 2011
Howard Home Values Plunge; Jobs Gone, Followed by Flat RevenuesHoward County’s main hope for new revenue over much of this decade must rest on growth in income tax collections — despite record-setting job losses during the recession — since declining home values will leave the property tax nearly flat over the next few years, county officials said.Prosperous Howard lost 6,400 jobs over the two years ending last spring, the first time two consecutive years of job losses have been recorded in the county’s history. However, new regional growth spurred by federal defense and cyber security jobs coming to the nearby Fort Meade area are expected to turn that around in the next few years, members of a county Spending Affordability Committee heard at a meeting Wednesday in the George Howard building. February 10, 2011
Mortgage Default Notices Slow Sharply in JanuaryFewer U.S. homes entered the foreclosure process in January than in any month in more than three years, the latest sign lenders are taking longer to move against homeowners who have fallen behind on mortgage payments. The number of homes that received an initial default notice fell 1 percent last month from December and tumbled 27 percent from January last year, foreclosure listing firm RealtyTrac Inc. said Thursday. Scheduled foreclosure auctions also fell to the lowest level in two years, the firm said. February 10, 2011
Winter’s Punch Crumbles Roofs in New EnglandThe woods may be lovely, dark and deep, but for small New England towns like this one, snow no longer brings the peaceful sweep of easy wind and downy flake. These days, a forecast of snow is more likely to elicit groans — both from weary humans demoralized by the pummeling from Mother Nature and from the many flat roofs on older buildings that are so common to this region. Down they have come, collapsing under record snow loads that are accumulating, gathering mass until the structures can no longer bear the weight. Homes, shopping plazas, a facility for people with mental illness, an airport hangar, a church, a saw mill, greenhouses, small businesses and at least 130 barns, those set pieces of the New England landscape — all have imploded under the snow. February 9, 2011
Homeowners Face ‘New Normal’ in Housing BustLife has changed in ways big and small in this central California county, which is still trapped in the wreckage of a housing boom that went bust five years ago. The median home price, $116,000, is down 68% from its peak in 2006. Three of five homeowners with a mortgage here owe more on their loans than their houses are worth, compared with about one in five nationally. Socked by a sharp loss of property and sales tax revenue, Merced County and its cities have slashed budgets, workers and services. The grass is being mowed less often in city parks. A senior center is open fewer hours. February 8, 2011
Only a Trickle of Underwater Homeowners Take Bite of AidA government program intended to help hundreds of thousands of underwater homeowners is off to a slow start. Since its September launch, only 38 homeowners have refinanced mortgages through the FHA Short Refinance program, backed with $11 billion in federal funds. The Federal Housing Administration has said the program could eventually help 500,000 to 1.5 million borrowers. The program requires mortgage owners to forgive at least 10% of a borrower’s unpaid principal so that the loan can be refinanced into an FHA loan at a lower interest rate. The goal: keep homeowners out of foreclosure even if they owe more on their homes than they are worth. February 8, 2011
U.S. Should Step Back from Mortgage Business, Industry Readers SayA group of Wall Street professionals meeting here Monday posed a central question facing the Obama administration: How do taxpayers get off the hook for supporting new home loans without doing damage to the struggling housing market? It is a multi-trillion-dollar question. And it’s gaining currency as the administration prepares to unveil this week a white paper on overhauling the nation’s mortgage system, which, as a result of the financial crisis, relies on the government to insure almost every home loan made today. February 8, 2011
More Stringent Screening Means Borrowers Must Watch Credit Until Closing DayOne loan officer describes it as a “financial colonoscopy” on your credit, and he suggests that anybody applying for a mortgage be prepared for it. What he’s talking about is the combined effect of new credit transparency standards that have been imposed on lenders by mortgage giants Freddie Mac and Fannie Mae. As of Feb. 1, Freddie Mac began requiring lenders to dig back 120 days into your credit bureau files to detect any “inquiries” - signs of your applying for credit anywhere else - and then to check out whether any applications were approved. If they resulted in significant new debts, your mortgage deal could be affected, and your lender might have to revise the terms or the rate you’re being offered. February 8, 2011
A Trust Would Ensure Estranged Husband Can’t Lay Claim to Her Inherited PropertyQ. I have a problem with my mother’s home in Virginia. She and her sister inherited the property from her mother. My mom’s only sister is deceased and had no children. My mom plans to will the home to me. My mother also has a son who is dysfunctional because of alcohol abuse and who has lived with me since the 1980s. My brother has an adult son who is estranged. My husband left me about three years ago. Four months after leaving me, he approached me to have his name removed from the house that we bought together years ago in Maryland. We changed the names on the home, and I took out financing on the home a couple of years ago… February 8, 2011
Homeowners Must be Prompt and Thorough When Eradicating MoldMold is a fungus that thrives indoors and outdoors in moist environments. Indoor mold grows on virtually all surfaces as long as there is sufficient moisture for it to survive. Mold reproduces rapidly by way of spores. Mold buildup often causes allergic reactions in people who come into physical contact with it or breathe mold floating in the air. Mold also deteriorates the surfaces on which it is hosted. Thus, not only is it harmful to humans from a medical perspective, causing skin rashes, nasal stuffiness, asthmatic reactions, headaches and other symptoms, but it also damages building materials such as drywall, wood and wood-based products. February 8, 2011
The Rise and Fall of a Foreclosure KingDuring the housing crash, it was good to be a foreclosure king. David Stern was Florida’s top foreclosure lawyer, and he lived like an oil sheik. He piled up a collection of trophy properties, glided through town in a fleet of six-figure sports cars and, with his bombshell wife, partied on an ocean cruiser the size of a small hotel. When homeowners fell behind on their mortgages, the banks flocked to “foreclosure mills” like Stern’s to push foreclosures through the courts on their behalf. To his megabank clients — Bank of America, Goldman Sachs, GMAC, Citibank and Wells Fargo — Stern was the ultimate Repo Man. February 8, 2011
Detroit Police Offered Renovated Homes for as Little as $1,000Unveiling the first concrete steps in a promised plan to bolster select Detroit neighborhoods, Mayor Dave Bing announced Monday he will begin luring 200 police officers back to the city by offering them renovated homes for as little as $1,000. Bing plans to use $30 million in federal stimulus money to rehab houses in the East English Village and Boston-Edison neighborhoods for officers enticed by forgivable loans, no down payments and energy-efficient homes. Officer LaDawn Russell, who left Detroit for Oak Park in 2007, in part for her children, is considering moving back. “Around New Year’s Eve, I don’t hear gunshots” in Oak Park, said Russell, 30. February 8, 2011
Obama Fast-tracks Mid-Atlantic Offshore Wind EnergyThe Obama administration announced plans Monday to spend $50 million to speed the development of offshore wind farms, aiming to lease wind farms off four Mid-Atlantic states by the end of this year. The Interior Department said it will expedite environmental reviews for four wind projects off the coasts of Virginia, Maryland, Delaware and New Jersey. This spring, it expects to identify other wind energy areas off Massachusetts, Rhode Island and the South Atlantic region, notably North Carolina. February 8, 2011
Picky First-time Buyers Losing Out on Great Housing DealsPicky, picky, picky! Are today’s first-time home buyers passing up great deals because they insist on flawless “move-in ready” houses requiring little or no changes - even at the starter-home price levels at which shoppers traditionally have been willing to factor fix-ups and renovations into their offers? Or are they simply reflecting market realities? They see record inventories of houses sitting unsold, and they may not have the money, time or inclination to do fix-ups after making the purchase. February 8, 2011
Empty Houses: The Ownership Society is OverWhile the overall number of empty homes rose nationwide, the biggest vacancy jump was in what’s called “principal cities.” These are the lower income, higher crime areas that Fannie Mae and Freddie Mac and prior administrations tried to bolster homeownership in. It’s close-in areas that are not attractive, according to Stephen East of Ticonderoga Securities. Vacancy rates actually fell in the suburbs to 2.3% in Q4 2010 from 2.5% a year ago and 2.4% in Q3. The increase in the overall rate was really driven by a 3.6% vacancy rate in “principal cities,” up from 3.1% a year ago and 2.9% in Q3. February 7, 2011
Can You Claim Home Buyer Tax Credit?If you bought a home last year, you may be eligible for a tax credit of up to $8,000 when you file your 2010 tax return. But before you start shopping for hardwood floors, make sure you qualify. And even if you’re eligible, you’ll need to take extra steps to prove that your claim is legitimate. Congress first enacted a home buyer’s tax credit in 2008 in an effort to revitalize the housing market. Since then, the credit has been revised and extended several times. Here are the factors that will determine your eligibility for the credit: February 4, 2011
Smaller New Orleans After Katrina, Census ShowsThe Census Bureau reported on Thursday that 343,829 people were living in the city of New Orleans on April 1, 2010, four years and seven months after it was virtually emptied by the floodwaters that followed the hurricane. The numbers portray a significantly smaller city than in the previous census, in 2000, though it should be said that New Orleans had been steadily shrinking even then. In 1990, it was the 24th-biggest city in the country, in 2000, the 31st, and now it has surely dropped from the top 50. The latest figure is lower than estimates cited widely by many here in recent months. It is lower, by roughly 10,000, than the official census estimate in the summer of 2009. February 4, 2011
Affordable Housing and the GulfThe gulf states are still living with the destruction wrought by Hurricanes Katrina and Rita, which swept away more than 70,000 units of affordable rental housing. Fewer than a third of those units, which are crucial to housing the poor, the elderly and the disabled, have been rebuilt. The 5,000 or so that are still on the drawing board might never be constructed unless Congress extends a program that encourages businesses to invest in housing by providing them offsets for tax liabilities. Congress tried to remedy the problem late last year by passing a one-year extension of the program. But investors insist that they need another 18 months to get the deals done, the units built and the tenants in place. If the projects come in late, the tax credits become invalid. February 4, 2011
New Jersey’s Ethnic Makeup Shifts, and Population Drifts SouthwardIn the last decade, the number of white people in New Jersey declined as the number of Asians and Hispanics soared, and the population shifted southward — some of the many shifts with broad cultural and political implications that were revealed in 2010 census figures released on Thursday. Newark, the state’s largest city, grew 1.3 percent, to more than 277,000 people, reversing five decades of contraction, and the second-largest, Jersey City, grew 3.1 percent, to more than 247,000. But populations declined in several of the largest and most heavily minority cities and towns, including Paterson, Trenton, Camden, Union City, East Orange, and Irvington. February 4, 2011
A Path to Homeownership Is Becoming a BurdenTenancies-in-common, a type of shared homeownership that is widespread in San Francisco, were once considered an affordable option for first-time home buyers in an expensive city. Now some homeowners, unable to sell, are calling them traps. Since the recession, sales and property values of T.I.C.’s have dropped more than the market as a whole. At the same time, mortgages for these properties have become scarce, which has diminished the pool of potential buyers. Some units have been on the market, unsold, for more than a year. February 4, 2011
Operation Storefront Aims to Fill Downtown Vacancies and Entrepreneurial DreamsAt a forgettable, long-shuttered building on North Liberty Street that people hurry past without a second glance, LaTrice Whitaker will be selling cupcakes, playing jazz and pouring mugs of gourmet coffee. At a similarly empty building nearby, two local men will showcase furniture they craft by hand from salvaged wood. And if Sarah Doherty has her way, after sundown every night, the blank facade of 307 W. Baltimore St. will become a virtual movie screen as she projects video artworks onto its arched front windows. February 4, 2011
Foreclosed Homeowners Go to Court on Their Own February 3, 2011
10 U.S. Cities with the Worst Drinking WaterUnknown to most Americans, a surprising number of U.S. cities have drinking water with unhealthy levels of chemicals and contaminants. In fact, some organizations and state environmental agencies that collect and analyze water data say the level of chemicals in some Americans’ drinking water not only exceeds recommended health guideline but the pollutants even exceed the limits set by the U.S. Environmental Protection Agency (EPA), the national legal authority in these matters. The website 24/7 Wall St examined the quality of water supplies in most major America cities, using data collected from multiple sources for five years (ending in 2009) by Environmental Working Group (EWG), based in Washington, D.C. The fact that the data covered a half-decade is important because it shows that the presence of certain chemicals is persistent. February 3, 2011
Fees for Home Mortgages IncreaseFor the first time since 2009, Fannie Mae and Freddie Mac are raising risk fees they charge lenders on loans they buy for resale to investors. The mortgage giants are also adding risk fees to more loans extended to people with stellar credit. To avoid a fee or to get a discount, most borrowers will need FICO scores of 740 or better and down payments of 25% or more. Lenders could absorb the cost, but most are expected to add it to loan costs within days, if they haven’t already, says Cameron Findlay, LendingTree economist. The increases affect most loans with longer than 15-year terms sent to Freddie starting March 1 and to Fannie on April 1. February 2, 2011
HUD REPORTS 20 PERCENT JUMP IN “WORST CASE NEEDS” FROM 2007 TO 2009In a report to Congress released today, the U.S. Department of Housing and Urban Development (HUD) found that “worst case housing needs” grew by nearly 1.2 million households, or more than 20 percent, from 2007 to 2009 and by 42 percent since 2001. “Worst case housing needs” are defined as low-income households who paid more than half their monthly income for rent, lived in severely substandard housing, or both. February 2, 2011
Bet on Foreclosure Boom Turns Sour for InvestorsDavid J. Stern may be the best-known beneficiary of the foreclosure boom, having made millions in recent years from evictions processed by his law firm, the largest of its kind in Florida. But when he took part of his firm public early last year, he had plenty of help from a constellation of investors also looking to cash in on people losing their homes. Early in 2010, the back-office processing operations of Mr. Stern’s law firm were converted into a publicly traded company called DJSP Enterprises. Mr. Stern pocketed nearly $60 million from that transaction, public filings show. February 2, 2011
Dakota Co-op Board Is Accused of BiasThe Dakota, the legendary New York apartment building, has long been famous for its celebrity residents, including Leonard Bernstein, Lauren Bacall and John Lennon. But it is also well known for having among the most restrictive co-op boards in Manhattan, having turned down would-be buyers including Billy Joel, Cher and the acting couple Melanie Griffith and Antonio Banderas. Now a lawsuit by a former board president is offering an inside look at how its enigmatic decisions are made, and to hear him tell it, the process is not at all in keeping with the Dakota’s rarefied reputation.The former board president, Alphonse Fletcher Jr., a prominent black Wall Street investor, has sued the Dakota, accusing the building and several of its board members of racial discrimination and defamation. February 2, 2011
Man Who Never Missed a Mortgage Payment but Lost Home Gets a TrialFor more than four years since he lost his Columbia home to foreclosure — despite never missing a mortgage payment — Kwaku Atta Poku has fought a legal battle for financial stability and personal vindication. After several legal setbacks, a federal judge’s ruling has given new hope to Atta Poku, who built a small taxi business along with a new life in America — only to watch as it was ruined by a mortgage nightmare that all agree he was not responsible for. “Thank God. Finally, somebody …” Atta Poku said Tuesday when he learned of the judge’s ruling. “I’m hoping something good will come out of that. This is the first time I had some level of good feeling about the [legal] system here.” February 2, 2011
City Property Owners Amend State Center LawsuitDowntown commercial property owners fighting the planned $1.5 billion State Center development in Baltimore are now questioning the legality of plans to build a $33 million parking garage that would be financed mostly by the state. In an amendment to a lawsuit the group filed in December, plaintiffs say the state allowed developers to bypass competitive bidding laws and privately select their own contractors, architects and engineers, even though the state Board of Public Works voted that month to pay for the underground garage through a bond sale. The bond sale has since been postponed. The plaintiffs accuse the state, which owns the site and is overseeing redevelopment, of engaging in a pattern of unlawfully awarding benefits and negotiating rights and development opportunities to the development team, led by Baltimore-based Ekistics LLC. February 2, 2011
Shovel That Roof, Before Something Bad HappensThe National Weather Service and the city are urging property owners and builders to clear rooftops, awnings and overhangs of snow ASAP, to avoid potential collapses when an ice storm is expected to hit New York early Tuesday. The city’s Department of Buildings is asking property owners to clear ice and snow from flat rooftops and overhangs and to clean out gutters to allow water to drain. “Property owners are legally obligated to maintain their properties in a safe condition,” says a Buildings Department statement. Property owners are also expected to clear snow and ice from areas used by the public. February 1, 2011
A Harlem Cultural Hub Is Threatened by DebtIn 2002 the National Black Theater, a cultural anchor of Harlem, invited the owners of Nubian Heritage, a growing beauty-care company with an African pedigree, to invest in its sprawling building at Fifth Avenue and 125th Street. The theater, created in the turmoil of the civil rights movement, had owned the building for 19 years. But now it faced foreclosure, as large construction loans remained unpaid. For the theater, its new partners held the promise of revenue and revival. For the businessmen, two former street vendors from Liberia, the building provided a flagship store in a historic neighborhood. February 1, 2011
OBAMA ADMINISTRATION RELEASES JANUARY HOUSING SCORECARDThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the January edition of the Obama Administration’s Housing Scorecard. The latest housing figures show increased new and existing home sales as home affordability remains high, but officials caution that the market remains fragile, as prices are unsettled. Foreclosure starts and completions remained low at the year’s end, as lenders continue to review internal servicing procedures. The Obama Administration’s complete housing scorecard on the nation’s housing market is available online at www.hud.gov/scorecard. February 1, 2011
One in Five Mortgages Default Again After ModificationOne in five U.S. homeowners whose loans were modified under a federal government program to help reduce foreclosures were at least 60 days late in their payments a year after their mortgages were reworked. The re-default rate for the Making Home Affordable Program averaged 20.4 percent after 12 months, 15.9 percent after nine months, 10.7 percent after six months and 4.6 percent after three months, according to a report released today by the Treasury Department. February 1, 2011
The Home’s Changing Role in Family FinancesHomeownership used to be the bedrock of the American dream, but the economic storm and its lasting effects have radically changed how everyone — no matter what stage of life they’re in — looks at their home. Many potential home buyers are now hesitating, taking a closer look at their options. “People are starting to realize that the American dream of homeownership is not right for everyone,” Kim McGrigg, community manager at Money Management International, a non-profit consumer credit counseling service. January 31, 2011
FHA EXTENDS ‘ANTI-FLIPPING WAIVER’ TO HELP STABLIZE HOUSING MARKETIn an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) Commissioner David H. Stevens today extended FHA’s temporary waiver of the agency’s ‘anti-flipping rule.’ The extension announced today is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight. January 31, 2011
New Meters Stir Fears for Health and HomePacific Gas and Electric’s campaign to introduce wireless smart meters in Northern California is facing fierce opposition from an eclectic mix of Tea Party conservatives and left-leaning individualists who say the meters threaten their liberties and their health. In the San Francisco Bay Area, “Stop Smart Meters” signs and bumper stickers have been multiplying on front lawns and cars. Four protesters have been arrested for blocking trucks seeking to deliver the meters. Since 2006, PG&E has installed more than seven million of the devices, which transmit real-time data on customers’ use of electricity. January 31, 2011
For Land Barons, Acres by the MillionsJohn C. Malone, a media mogul who is on the verge of buying nearly one million acres of timberland in Maine, could soon become the largest private landowner in the United States, catapulting him ahead of Ted Turner on the list of those who accumulate earth the way others accumulate, say, bison. Mr. Malone, who lives in Colorado, is chairman of Liberty Media and has extensive holdings in QVC, the cable channel; Expedia.com, the travel Web site; and Sirius XM satellite radio. Liberty Media also owns the Atlanta Braves, which Mr. Turner once owned. Last year, Forbes ranked Mr. Malone as the 110th richest person in America, and though he has been an aggressive media player for decades, he has operated largely out of the limelight. January 31, 2011
A Night Out, Counting the HomelessThe Department of Housing and Urban Development requires that a census be conducted every two years as a condition of receiving federal money under the McKinney-Vento Homeless Assistance Act. This year, San Francisco received $18 million from HUD under the program. Other Bay Area counties, and local jurisdictions around the country, also conducted their counts last week. The volunteers, for their safety and out of courtesy to the people they were counting, were instructed not to speak to the homeless, just to tally the number of people they saw who appeared to be living on the street. January 31, 2011
Despite Price Rebound, Many Washington Area Homeowners Still Face Steep LossesThe Washington area is one of the few regions in the country where home values have been consistently climbing in recent months, with typical prices increasing 8 percent since hitting bottom two years ago. The rebound has given a lift to the local economy and begun to ease the pressure on many struggling homeowners, who became more vulnerable to foreclosure when the equity in their property evaporated. January 31, 2011
ARM is Making Comeback — and Could Save Arm and a LegAfter years of virtual exile from the home-loan arena, is the adjustable-rate mortgage staging a quiet comeback? Could an ARM be on your shopping list the next time you need to buy or refinance a house? You might be surprised by what they offer. A new survey of 112 lenders by mortgage giant Freddie Mac found that ARMs are starting to attract applicants again. Adjustables accounted for just 3 percent of new home loans in early 2009, but are projected to be the final choice for nearly one in 10 borrowers this year. In the jumbo and super-jumbo segments, the share will be even larger, said Freddie Mac chief economist Frank Nothaft. January 31, 2011
Know the Rules About Deducting Mortgage Interest - Especially after a RefinanceIf you buy a really expensive house or a condominium (or even a cooperative apartment), the IRS has some good news for you. Despite the statutory limitation that prohibits you from deducting mortgage interest on any principal amount over $1 million, there is a loophole. You can also deduct interest on up to $100,000 more in home-equity loans. Mortgage interest and real estate taxes are the only real tax benefits available to American homeowners, although that may change in the coming years. A recent tax commission report has renewed discussion among politicians and economists that these deduction should be limited - if not eliminated entirely. January 31, 2011
Jumbo Loan Hinders RefinancingQ. I am a 78-year-old retired surgeon. I took a mortgage in 2002. A stroke in 2000 retired me from practice, and I had to move into a handicap-friendly home. My financial adviser advised me to get a big mortgage because interest rates were so low. So, the mortgage was for about $500,000 at a little above 6 percent, and the lender didn’t think twice about giving it to me. I have been paying $5,000 per month for my mortgage, taxes and insurance for the past nine years. I’ve never been late or missed a payment. I’m trying to refinance to lower my monthly payment and to give me a bit of a financial break. But the lenders I’ve talked to are shutting the door in my face. January 31, 2011
Baltimore Architectural Firm in Demand for Overseas ProjectsWhile many architectural and planning firms have seen a drop-off in design work as a result of the recession and the slow recovery, one Baltimore-based company has remained busy by finding work in other countries. Development Design Group has carved out a niche by designing retail centers, housing, arenas and large mixed-use communities for clients around the globe. This month, it announced that it has been hired to design China’s largest shopping center, a 4 million-square-foot retail component of a project called the Tianjin City Culture Center Development. January 31, 2011
Home Purchase Contracts, Mortgage Rates RiseThe number of people who signed contracts to buy homes rose in December, fifth increase in the past six months, as mortgage rates continued to rise. The National Association of Realtors says its index of sales agreements for previously occupied homes rose 2% last month from November. The index posted a 3.1% increase in November from October. Economists have cautioned that a big reason for the jump is that people are buying foreclosed homes. Still, the increase is likely to give the weak housing market a boost in the first few months of the year. Thats because there’s usually a one- to two-month lag between a sales contract and a completed deal. Contract signings were up in every region of the country except the West. January 28, 2011
U.S. Home Prices Slump Again, Hitting New LowsA new slide in housing prices has begun in earnest, with averages in major cities across the country falling to their lowest point in many years. Prices in 20 major metropolitan areas slid 1 percent in November from October, according to the Standard & Poor’s Case-Shiller Home Price Index released Tuesday. The index has fallen 1.6 percent from a year ago. Nine of the 20 cities in the index sank in November to new lows for this economic cycle: Chicago; Las Vegas; Detroit; Atlanta; Seattle; Charlotte, N.C.; Miami; Tampa; Fla.; and Portland, Ore. Only a handful of places — essentially, California and the District of Columbia — went counter to the trend and had rising prices over the last year. January 26, 2011
When Not to Walk Away From a MortgageIf you’re underwater — that is, you owe more on your home than it’s worth — a University of Arizona law professor, Brent White, can help you sort out your options. In his new book, “Underwater Home: What Should You Do if You Owe More on Your Home than It’s Worth?” Professor White outlines “when it makes financial sense to stay in your underwater home and when it makes sense to get out.” January 26, 2011
Housing-Sector Profitability Returns to Previous LevelsThe housing boom further increased our economy’s bias against business capital, but by 2010 housing profitability was back to normal. Last week I examined a measure of the profitability of housing capital: the value added by houses in the form of shelter and convenience for their occupants during a year, expressed as a fraction of the total value of homes. Before the housing boom, housing added much less value per dollar than business capital did, largely because business taxes restrict the supply of business capital. January 26, 2011
House Oversight Committee to Hear Testimony from TARP WatchdogRep. Darrell E. Issa (R-Calif.) on Wednesday will use his first hearing as chairman of the House Committee on Oversight and Government Reform to take a critical look at the Obama administration’s bank bailouts and its efforts to help homeowners avoid foreclosure. On tap is a warning from a federal watchdog that “we are running the risk of repeating the same mistakes that resulted in the American people footing the bill for the largest bailout in American history,” Issa said Tuesday in a statement ahead of the hearing. January 26, 2011
Home Prices Fall in Nearly All Major Cities, Heightening Fears of Double DipHome prices slipped in nearly every major metropolitan area in November, with a few cities hitting their lowest levels since prices peaked about four years ago, according to a closely watched index released Tuesday. From October to November, prices fell in 19 of the 20 metro areas tracked by the Standard & Poor’s/Case-Shiller index, widely considered a gauge of the housing market’s health. The only exception was San Diego, where prices were basically unchanged. January 26, 2011
BofA’s Countrywide Sued for ‘Massive Fraud’Bank of America Corp’s Countrywide mortgage unit has been sued by investors claiming they were victimized in a “massive fraud” when they bought mortgage-backed securities. The lawsuit was filed on Monday in a New York state court by 12 plaintiffs including the TIAA-CREF fund family, New York Life Insurance Co and Dexia Holdings Inc. According to the complaint, the investors bought hundreds of millions of dollars of Countrywide securities from 2005 to 2007 that they thought were “conservative, low-risk investments. January 26, 2011
Preservationists Challenge Superblock Demolition PlanThe Maryland Historical Trust is asking the state attorney general’s office for guidance on how to address concerns from preservationists who oppose a developer’s plans to raze certain buildings on Baltimore’s west side, including the former Read’s drugstore. The request comes after a statewide preservation group, Preservation Maryland, appealed a decision by the Maryland Historical Trust to allow the developer to proceed, saying a 2001 legal agreement calls for those buildings to be preserved if at all possible. January 25, 2011
Mortgage Giants Leave Legal Bills to the TaxpayersSince the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage finance companies and their former top executives in civil lawsuits accusing them of fraud. The cost was a closely guarded secret until last week, when the companies and their regulator produced an accounting at the request of Congress. The bulk of those expenditures — $132 million — went to defend Fannie Mae and its officials in various securities suits and government investigations into accounting irregularities that occurred years before the subprime lending crisis erupted. The legal payments show no sign of abating. January 24, 2011
Home Sellers Cope with Houses in Limbo January 24, 2011
Plumbing the Mysteries of Low Water PressureDEAR TIM: I’ve got low water pressure in my house. Is there any way to improve it? My neighbors all seem to have much better pressure, and we’re all on the same city water main out at the street. I also have this problem at a summer cabin where the water is supplied by a well. What are the main causes of poor water pressure? How can they be fixed? January 24, 2011
What to do after Phaseout of Incandescent Light BulbQ. We have heard that incandescent light bulbs are being phased out and the only thing available will be compact fluorescent bulbs or CFLs. We have also been told that CFLs can’t be used in covered fixtures, such as globe fixtures. We don’t want to have to install a lot of new fixtures, so what can we do? January 24, 2011
Lower Interest Deduction Better for DeficitAre you worried that the mortgage interest deduction will go away? After all, it’s a high-profile, high-cost target for federal budget-cutters and was prominently featured in the report of the presidential deficit-reduction commission late last year. Reformers have been trying to kill or at least clamp a ceiling on these write-offs for decades. But here’s an intriguing twist that has just emerged on Capitol Hill and that might encourage homeowners, realty agents and builders who oppose any cutbacks in tax benefits. According to new estimates compiled by the nonpartisan Joint Committee on Taxation, Congress’s top technical resource on all tax law matters, the mortgage interest deduction is not quite as big a hole in the federal budget as previously estimated. January 24, 2011
Determine What Items Will Remain after a Home SalePicture the happy home buyers completing their real estate settlement and driving from the settlement attorney’s office to their new home, only to discover there are no appliances in the kitchen and no washer or dryer in the laundry room. The charming chandelier in the dining room has been replaced by a cheap builder’s standard model, the built-in shelves and mirror in the basement wet bar are gone, the custom drapes covering the sliding glass doors leading to the back yard are gone, and the mature Japanese maple tree that once welcomed visitors in the front yard is now a patch of loose earth. How could this happen? January 24, 2011
‘If You Cut the Rate, People Will Come’Steve Walters has a modest proposal that makes Baltimore homeowners cheer and government bean-counters wince: slash the city’s property tax rate in half. The Loyola University Maryland economics professor, pointing to the modern rebirths of San Francisco and Boston after tax revolts forced drastic rate cuts three decades ago, has long argued that Baltimore would become a much healthier city if it followed suit voluntarily. More people would move in, he says. More owners would fix up dilapidated properties. In several years, revenue collection would be back to its old levels — and then surpass them, he predicts. January 24, 2011
Surge in December Sales Gives Housing Industry Hope for 2011Sales of U.S. previously owned homes jumped more than forecast in December as buyers tried to lock in low mortgage rates before the economic recovery pushed borrowing up further. Purchases of existing houses, which are tabulated when a contract closes, increased 12% from November to a 5.28 million annual rate, figures from the National Association of Realtors showed Thursday. That’s the most since May and exceeds the highest estimate of economists surveyed by Bloomberg News. The median price fell 1% from a year earlier, and the share of sales represented by foreclosures climbed. January 21, 2011
HUD PROPOSES NEW RULE TO ENSURE EQUAL ACCESS TO HOUSING REGARDLESS OF SEXUAL ORIENTATION OR GENDER IDENTITYThe U.S. Department of Housing and Urban Development today proposed new regulations intended to ensure that its core housing programs are open to all eligible persons, regardless of sexual orientation or gender identity. “This is a fundamental issue of fairness,” said HUD Secretary Shaun Donovan. “We have a responsibility to make certain that public programs are open to all Americans. With this proposed rule, we will make clear that a person’s eligibility for federal housing programs is, and should be, based on their need and not on their sexual orientation or gender identity.” January 21, 2011
Lack of Transmission Lines Is Restricting Wind PowerTexas is in the midst of a wind-power boom, and at the heart of it lies a conundrum: While plenty of ranchers are eager to host wind turbines, few want the unsightly high-voltage transmission lines needed to carry the power to distant cities running through their property. The lack of transmission lines — and the relatively low price of natural gas — has thwarted the ambitions of wind-power advocates to expand the use of this alternative energy source in Texas. The oilman T. Boone Pickens, for example, bet heavily on wind a couple of years ago, ordering hundreds of turbines and announcing plans to build the world’s largest wind farm in the Panhandle at a cost of up to $12 billion. He later scaled back, canceling some of the turbine orders, giving up his land lease and saying he was looking elsewhere to build. January 21, 2011
Solar Firms Frustrated by PermitsIn a new study, the industry estimates that the permit dance adds an average of $2,500 in costs to each installation, and streamlining things could provide a $1 billion stimulus to the residential and commercial solar power market over the next five years. The analysis, which will be released publicly on Thursday, was prepared by one of the nation’s largest solar leasing companies, SunRun, and endorsed by Verengo and at least a dozen other service and installation firms. At a time when the Obama administration has vowed to redouble its efforts to create a green economy — and, more recently, to remove regulatory roadblocks and promote growth — companies that sell and install solar panel systems for residential and commercial customers are clamoring to be among the first in line. January 21, 2011
Banks Want Pieces of Fannie-Freddie PieAs the Obama administration prepares a report on the future of Fannie Mae and Freddie Mac, some of the nation’s largest banks are offering a few suggestions. Wells Fargo and some other large banks would like private companies, perhaps even themselves, to become the new housing finance giants helping to bundle individual mortgages into securities — that would be stamped with a government guarantee. The banks have presented their ideas publicly through trade groups. Housing industry consultants and people familiar with recent meetings at the Treasury Department say these banks view the government’s overhaul of the mortgage market as a potential profit opportunity. January 21, 2011
Baltimore County Conducts its Annual Homeless CensusBaltimore County’s homeless survey first asks for a name, but it makes that answer optional. The second question is, “Where did you spend last night?” Replies, which often came in hushed tones Thursday as the one-day survey was conducted, included a shelter, a hospital emergency room, a tent in the woods, a doorway, a friend’s sofa and a car. “I ride the transit buses to stay warm at night,” said Frank A. Sollenberger Jr., 28, homeless since June. He lost all his belongings in an eviction and has been unable to find a job. He took the survey at the Assistance Center of Towson Churches, which served about 18,000 needy last year, many of them homeless. January 21, 2011
Additional Rebates Offered for Energy-efficient Home ImprovementsThe Maryland Energy Administration has announced $1 million in rebates for energy-efficient home improvements through the Maryland Home Performance program. Homeowners can now reserve rebates for up to 35 percent of the total cost of an energy-efficient project such as attic or wall insulation, up to $3,500. These state rebates can be combined with the 15 percent home improvement rebates offered through the state’s five largest utilities as well as federal incentives for additional savings. January 21, 2011
Housing-Sector ProfitabilityA house is a piece of capital, meaning that it produces value over a number of years. In the case of housing capital, the value is in the form of shelter and the convenience of a home. As with any piece of capital, a home’s profitability (its marginal product, as economists call it) can be calculated as the dollar value it creates during a year — after subtracting depreciation, costs of labor, maintenance and intermediate goods — per dollar invested. Owners of capital prefer their capital to be more profitable, rather than less. It’s the profitability of capital (after taxes and subsidies — more on those below) that makes an owner willing to purchase capital in the first place. January 19, 2011
Federal Officials Studying How to Protect Housing MarketFederal officials took two steps Tuesday to attempt to reduce the likelihood of a second financial crisis caused in large part by large declines in the housing market. The first would try to tackle the problem of foreclosures. The Federal Housing Finance Agency, which oversees the massive mortgage finance companies Fannie Mae and Freddie Mac, said it would consider a new approach to how home loans are managed by banks. Critics say the current system makes it more lucrative for a bank to foreclose than to find ways to modify loans to allow struggling borrowers to stay in their homes. January 19, 2011
Relaxing Anti-house-flipping Rules can be a Win-win SituationWhen you hear that the Obama administration plans to extend a policy that allows low-down-payment financing of “flipped” houses for 2011, your first reaction might be: No way. At this stage of the boom-to-bust-to-recovery cycle, is high-leverage house-flipping the type of activity the federal government should be encouraging? Definitely, it is not. A classic real estate flip involves the quick resale of a house or condominium at a significantly higher price than the purchaser paid with only cosmetic improvements to the property, if any at all. Sometimes only the contract itself is being signed over to a new buyer at a higher price. January 19, 2011
No. 2 Bank Overcharged Troops on Mortgages January 19, 2011
GMAC Dropping 250 Maryland Foreclosure CasesGMAC Mortgage said Tuesday it is dropping about 250 Maryland foreclosure cases that were apparently “robo-signed,” giving homeowners a second chance to save their properties — and raising the possibility that other lenders might follow suit. The company said it is asking Maryland courts to dismiss cases in which it submitted “potentially defective” affidavits, documents signed by an employee who didn’t confirm the information’s accuracy and that were improperly notarized. The practice, dubbed robo-signing, appears to have been widespread among large mortgage servicers. January 19, 2011
Mortgage Rates Drop Again; 30-year Average Dips to 4.71%Rates on fixed mortgages dipped for a second straight week as Treasury yields fell. Freddie Mac said Thursday that the average rate on 30-year mortgages dropped to 4.71% this week from 4.77% the previous week. It hit a 40-year low of 4.17% in November. The average rate on 15-year loans slipped to 4.08% from 4.13%. It reached 3.57% in November, lowest on records starting in 1991. January 14, 2011
Foreclosures Fell 26% in Dec., but 2010 Filings Set a RecordThe pace of foreclosures has slowed since revelations that thousands of foreclosure documents may have been improperly prepared, but for all 2010, almost 2.9 million U.S. properties received foreclosure filings, a record high, and up 2% from 2009. Nationwide, 1 in 45 homes received at least one foreclosure filing during the year. In December, actual bank repossessions nationwide totaled 69,847, down 24% from December 2009 but up 4% from November. January 13, 2011
Banks Repossess 1 Million Homes in 2010The bleakest year in foreclosure crisis has only just begun. Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and more will miss payments as they struggle with job losses and loans worth more than their home’s value, industry analysts forecast. “2011 is going to be the peak,” said Rick Sharga, a senior vice president at foreclosure tracker RealtyTrac Inc. January 13, 2011
Report on Homelessness Shows Increase Among Families During RecessionDuring the throes of the recession, the number of homeless people in the United States increased, and the number of homeless families increased at an even greater rate, according to a report released Wednesday. The findings by the National Alliance to End Homelessness, although not surprising, confirm the harsh toll that the recession - which began in December 2007 and ended in June 2009 - took on families. Historically, people struggling with mental illness, substance abuse or other chronic problems have been the focus of government homelessness efforts, and until recently the number of such homeless people had been declining. January 13, 2011
In Their Fight with Banks Over Mortgage Losses, Investors get on Borrowers’ SideThe fight between big banks and investors who lost a fortune on mortgage-backed securities is shifting from private litigation to the public arena. While the investors have been angry at the banks for several years for the losses, their legal efforts have not gotten far, mostly because of the difficulty of organizing enough peers for class-action lawsuits and of prying information from the lenders. But the recent uproar over the banks’ foreclosure practices has given the investors a way to pressure lenders outside the courts. January 13, 2011
State Center Faces Delay because of Pending LawsuitThe planned $1.5 billion transformation of the aging Maryland government complex in midtown Baltimore is facing a delay on the first phase of construction because of a pending lawsuit against the developers. Work to overhaul the 28-acre State Center was to start this winter with construction of an underground garage, mostly financed by the state through a planned $33 million bond sale. The sale would cover the state’s $28.2 million portion of construction as well as closing costs, interest and debt reserves, while the developer was to contribute at least $4 million toward construction. January 13, 2011
Former McCormick Site Auctioned for $11.5 millionA Baltimore County-based developer on Tuesday effectively gained control of one of the last major undeveloped parcels near Baltimore’s Inner Harbor when an affiliate of Questar Properties of Pikesville submitted the high bid for the former McCormick & Co. spice plant property in a foreclosure auction.The Light Street parcel was acquired for $11.5 million by 414 Light Street Associates LLC, an affiliate of Questar Properties and the primary note holder on the property. About three dozen people gathered at the property for the auction, handled by GoIndustry DoveBid of Owings Mills. Bidding started shortly after 1 p.m. at $8 million and stopped several minutes later at $11.5 million. January 13, 2011
November Home Prices Fall 5%, Expected to Fall MoreU.S. home prices fell 5.1% in November from a year earlier and are expected to go lower as the housing market struggles to find its recovery, according to a report Tuesday. Real estate analytics firm CoreLogic said that single-family home prices declined for the fourth month in a row and at a faster pace. They dropped 3.4% in October year-over-year. November declines occurred in 44 states, up from 18 in June when federal tax credits for home buyers were still pumping up sales. Sales and prices fell after the credits expired. January 12, 2011
Credit Scores get Easier to Track Down and Less SecretiveYou may be a pillar of your community, admired by your colleagues and beloved by friends and family, but if you have a mediocre credit score, you probably won’t be able to get a decent interest rate on a car loan, mortgage or credit card. That rankles a lot of people, but what really annoys borrowers is the secrecy surrounding the credit-scoring process. A federal law enacted in 2003 requires the three credit bureaus to provide consumers with a free annual copy of their credit reports, but they’re not required to include your credit score. If you want that, you usually have to pay, and even then it’s unclear whether the score you’ve purchased is the one lenders will use when you apply for a loan. January 11, 2011
Judges Berate Bank Lawyers in ForeclosuresWith judges looking ever more critically at home foreclosures, they are reaching beyond the bankers to heap some of their most scorching criticism on the lawyers. In numerous opinions, judges have accused lawyers of processing shoddy or even fabricated paperwork in foreclosure actions when representing the banks. Judge Arthur M. Schack of New York State Supreme Court in Brooklyn has taken aim at an upstate lawyer, Steven J. Baum, referring to one filing as “incredible, outrageous, ludicrous and disingenuous.” January 11, 2011
Superblock Plan Rejected after Civil Rights Leaders ProtestA $150 million plan to revitalize downtown Baltimore’s West Side was rejected Thursday by a city design review panel after local civil rights and preservation leaders warned that it would demolish a key landmark in the history of America’s civil rights movement. Baltimore’s Urban Design and Architecture Review Panel voted to withhold approval of schematic plans for the Lexington Square retail and housing project until the developers and city officials addressed questions about a proposal to tear down the former Read’s Drug Store at Howard and Lexington streets and other buildings within the so-called Superblock. January 11, 2011
Banks Lose Foreclosure Fight in Mass.; Mortgage Mess DeepensThe highest court in Massachusetts ruled against U.S. Bancorp and Wells Fargo on Friday in a pivotal mortgage foreclosure case that could spark more turmoil and uncertainty in a housing market already mired in depression. The Supreme Judicial Court affirmed a lower court judge’s ruling invalidating two mortgage foreclosure sales because the banks, in their capacity as trustees for mortgage securities, did not prove that they actually owned the mortgages at the time of foreclosure. January 10, 2011
Even with Great Credit and Big Down Payment, Home Loans Will Cost More in 2011Here’s mortgage giant Fannie Mae’s sobering New Year’s greeting for home buyers and refinancers in 2011: Give me more money. If you want a loan this year, you’re going to have to pay more - thousands of dollars more in some cases - even if you have stellar credit scores and bundles of cash handy for a down payment. Things could get much worse if your scores have been sagging with the economy and you don’t have much money up front. January 10, 2011
Buying or Selling a Home? Learn Whom You can Trust Before a Slip of the Lip.Most residential real estate transactions also involve several other parties, including one or more real estate agents, a settlement attorney, insurance agents for homeowners and the title insurance company and a lender. Sorting out who’s who, where their loyalties lie and what each party does will help keep your deal on track and help prevent you from inadvertently revealing confidential information to the wrong party. Every real estate purchase transaction has a seller and a buyer. The confusion arises when real estate agents are added to the picture. The real estate agent that represents the seller’s interests is called the “listing agent;” he or she enters into a listing agreement with the seller to sell the house. January 10, 2011
How to Get a Lone Holdout to Pay for Fair Share of Road RepairsQ. I live in a fully built subdivision that consists of six homes. We have never had a homeowners’ association but we do have a covenants, conditions and restrictions document. Twenty years ago we modified the document to provide a road agreement between the owners. The road is private and we make the repairs to it. Over the years we all contributed our share toward the repairs, and majority rule dictated what work was done. This spring we decided we needed to repave the road and got estimates, and five out of the six homeowners voted to go with the lowest bid. The sixth homeowner refused to participate and wanted more information before any work was done. January 10, 2011
7 Mortgage Trends to Expect in 2011Financial experts suggest that borrowers should apply for a new mortgage loan, or refinance their home loan when the time is right for their individual needs, rather than attempt to time the market. While risk takers may be enthusiastic about waiting until the last minute to lock in a low mortgage interest rate, most homeowners and homebuyers prefer to observe general mortgage market trends and focus more intently on their own finances. Predicting a specific mortgage rate for a particular time is pretty nearly impossible, but real estate market observers have identified a few trends that they anticipate will impact the mortgage market in 2011. January 10, 2011
Coalition saves 150 homes from tax auction block with $194,000Kimberlynn Collins says she cried when Ted Phillips appeared on her doorstep last summer and asked her whether she knew her house was going to be sold at auction because of delinquent property taxes. “I knew it was going to happen, but I didn’t think there was anything I could do about it,” said Collins, 49, of Detroit. She said a divorce and layoff from her job as a massage therapy instructor put her into a financial tailspin that caused her to fall $5,500 behind in property taxes on her two-story home on Detroit’s west side. But Phillips, executive director of United Community Housing Coalition in Detroit, was there to deliver hope, not doom. January 10, 2011
Bank of America to Pay Fannie, Freddie $2.8 BillionBank of America said it agreed Monday to pay $2.8 billion to taxpayer-funded Fannie Mae and Freddie Mac to settle claims that it sold the mortgage giants bad home loans. The agreement is the biggest so far between Fannie and Freddie and lenders that sold them loans during the subprime lending boom and before standards were tightened. More such agreements are likely as Fannie and Freddie, which now buy about two-thirds of all home loans, then package and sell them to investors with a promise to cover losses, seek restitution for loans that they say failed to meet their underwriting standards. January 4, 2011
A Year Later, Haiti Struggles BackAs if he had not budged since the earthquake, the Rev. Enso Sylvert sat one recent morning on the same metal chair under the same tarpaulin, now ripped, where he held court after the disaster. In the shadow of his collapsed church on Avenue Poupelard, Pastor Sylvert was still sporting a blazing orange shirt and wrinkled yellow tie, still preaching about the end of times. But his vow to rebuild in 2010 had been tempered by reality. The bank recently foreclosed on the property after he fell disastrously behind on loan payments because his parishioners could not afford donations. Any day now, he said, the bank will be seizing what remains of the church. January 4, 2011
Face of City Has Changed Dramatically, Census Estimates Show January 4, 2011
National Trends Could Drag Down D.C. Area Housing Market’s GainsAlthough Washington area housing has outperformed the national market , which has been devastated by the twin ills of unemployment and foreclosure, the question going into a new year is whether the rest of the country can follow the D.C. area into recovery - or whether the local market will be dragged down by national trends. Economic forecasters are singling out the housing sector as a weak spot even as the rest of the economy appears to be gaining steam. About 57 percent of the economists and real estate experts surveyed by Macro Markets in December said they don’t see home prices recovering until some time in 2012. About 35 percent said they don’t see that happening until 2013. January 4, 2011
Home Prices are Down, So Why Not Insurance?If you’re a homeowner, chances are your house is worth less than it was five years ago. But you could still be paying more to insure it. Despite the deep housing bust of the last few years, the cost of rebuilding a damaged home — in other words, what you pay insurance for — has not changed much, according to industry experts. That means that unless you have reduced coverage or increased your deductible, chances are you are paying as much or more to insure your home as before the housing bust. January 4, 2011
Subprime Lenders Remake Themselves as FixersPacWest Funding’s CEO watched in late 2007 as rival mortgage brokerages, banks and collaborators collapsed under the weight of the declining housing market. Fearing his company would be next, Curtis Melone restructured his business to offer what he felt people needed most: help with their crushing mortgage debt. Melone re-christened his company Green Credit Solutions, a loan modification firm dedicated to aiding people facing rapidly ballooning payments on loans many of them couldn’t afford in the first place. The journey from subprime-era lender into purported troubled homeowners’ helper has been a common post-meltdown path in the mortgage industry hotbed of Southern California. January 4, 2011
New Orleans Moves to Get Rid of Last FEMA TrailersThe era of the FEMA trailer — a symbol of the prolonged rebuilding from Hurricane Katrina — might be drawing to a close in New Orleans. Citing the remaining 221 trailers as blight, New Orleans officials have told the last remaining residents to be out by the start of 2011 or face steep fines. New Orleans once had more than 23,000 FEMA trailers, and for many people still living in them, they are akin to permanent homes. These residents say they will find it hard to make the city’s deadline.Edwin Weber Jr., 62, lives with his brother in a trailer crammed with stuff. He was seething at a “notice of violation” letter taped to his door shortly before Christmas. December 31, 2010
New Orleans Warehouse Fire Kills 8 HomelessThe deadliest city blaze in decades killed eight homeless squatters who were burning debris in an abandoned warehouse to stay warm Tuesday, authorities said. Firefighters said they could not tell the ages or genders of those who died because their bodies were so badly burned. A 23-year-old man who escaped told the American Red Cross he could not get back in to help his friends because of the smoke, agency volunteer Thomas Butler said. The Orleans Parish Coroner’s Office said it was uncertain when the dead would be identified. However, a group of young people sitting on the steps of an abandoned house near the scene later Tuesday said the dead included three women and five men. December 29, 2010
‘Doubling Up’ in Recession-Strained QuartersIn February, after being evicted from their Gainesville apartment, Holly, James, Madison and their good-natured pit bull, Caley, moved into a cramped bedroom in the house where Holly grew up. Neither of Madison’s parents had been able to find work for more than a year. Of the myriad ways the Great Recession has altered the country’s social fabric, the surge in households like the Maggis’, where relatives and friends have moved in together as a last resort, is one of the most concrete, yet underexplored, demographic shifts. Census Bureau data released in September showed that the number of multifamily households jumped 11.7 percent from 2008 to 2010, reaching 15.5 million, or 13.2 percent of all households. It is the highest proportion since at least 1968, accounting for 54 million people. December 29, 2010
Chicago to Redevelop U.S. Steel Site on Lakefront December 29, 2010
Housing Seen Rising to 3-Year High With Boost for JobsFederal Reserve Chairman Ben S. Bernanke may be about to get help in his attempt to boost the economy, from an industry at rock-bottom: housing. Job growth, even with unemployment at 9.4 percent or higher since May 2009, and an increasing U.S. population mean home construction probably will improve in 2011 from its near-record low, said Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, New Jersey. Mortgage rates are less than 5 percent, further supporting affordability. A rise in homebuilding would increase jobs for construction workers and also for people in industries supplying the stoves and sinks that go into new homes. As housing shrank to the smallest share of the economy on record, 2.23 percent, job growth slowed. The economy added 39,000 jobs in November; 5,000 construction jobs were lost. December 29, 2010
Allstate Sues Countrywide Over $700 Million InvestmentAllstate Corp. sued Bank of America Corp. and its Countrywide mortgage unit over $700 million in residential mortgage-backed securities the insurer purchased, claiming Countrywide misrepresented the investments. “The defendants knew the loans offloaded onto Allstate were a toxic mix of loans given to borrowers that could not afford the properties, and thus were highly likely to default,” Allstate said in a complaint filed in federal court in Manhattan yesterday. Allstate, based in Northbrook, Illinois, said in the complaint that the mortgage-backed securities, purchased from March 2005 to June 2007, suffered “drastic and rapid loss in value” when large numbers of homeowners began to default on their mortgages. December 29, 2010
New Property Assessments in Md. — and How to Appeal ThemAssessed values are down an average of 22 percent on homes Maryland assessors just evaluated, about one-third of properties in the state. The Maryland Department of Assessments and Taxation, which is announcing the details today as it mails out the notices, called it a record drop. (The group of homes reassessed late last year declined almost 20 percent on average.) December 29, 2010
Federal Housing Finance Agency Reports Mortgage Interest RatesThe Federal Housing Finance Agency today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.42 percent based on loans closed in November. This is a decrease of 0.07 percent from the previous month. The average interest rate on conventional, 30-year fixed-rate mortgage loans of $417,000 or less decreased 12 basis points to 4.38 percent in November. These rates are calculated from the FHFA’s Monthly Interest Rate Survey (MIRS) of purchase-money mortgages.These results reflect loans closed during the Nov. 23-30 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-October. December 28, 2010
State Poised to Sell Trophy Buildings to Unidentified InvestorsAs Gov. Arnold Schwarzenegger prepares to decamp from Sacramento on Jan. 3, he has displayed zealous determination to complete what critics say will be among the worst deals the state has ever made: the sale of 11 premier state office complexes to a group of politically connected private investors. The deal, which includes the San Francisco Civic Center, has been pitched as a way to generate much-needed cash. California would pocket about $1.3 billion after debt is paid off, but would then be a tenant in the same buildings. According to the nonpartisan Legislative Analyst’s Office, the deal would cost taxpayers $6 billion over 35 years. December 28, 2010
Michigan Town Is Left Pleading for BankruptcyBankruptcy, increasingly common among corporations and individuals, remains rare for municipalities. Local leaders who want to win elections find it unappealing and often have other choices for solving financial woes. Besides, states have a say in whether a municipality may pursue bankruptcy at all, and they have every reason to avoid such an outcome, not least of all for fear of a creating a ripple effect that could cripple the municipal bond market and drive up the cost of borrowing. Yet with anemic property tax revenues and forecasts of more dire financial times ahead, some experts and elected leaders fear that more localities may have to at least consider bankruptcy. December 28, 2010
Nonprofits Turn Foreclosures into First Homes December 28, 2010
HUD, FIRST NATIONAL BANK OF ST.LOUIS REACH AGREEMENT TO INCREASE INVESTMENT IN LOW-INCOME AND MINORITY COMMUNITIESThe U.S. Department of Housing and Urban Development (HUD), the Metropolitan St. Louis Equal Housing Opportunity Council (EHOC), and First National Bank of St. Louis today announced an agreement that will increase the bank’s commitment to minority and low-income communities.? As part of the agreement, the bank will invest more than $2.5 million over four years in St. Louis City, North St. Louis County, and St. Clair County, Illinois. The agreement comes after HUD investigated and conciliated a fair housing complaint that was filed by EHOC, a fair housing organization, alleging that the Bank failed to locate branches and provide banking services in African-American neighborhoods. December 22, 2010
In a Sign of Foreclosure Flaws, Suits Claim Break-Ins by BanksWhen Mimi Ash arrived at her mountain chalet here for a weekend ski trip, she discovered that someone had broken into the home and changed the locks. When she finally got into the house, it was empty. All of her possessions were gone: furniture, her son’s ski medals, winter clothes and family photos. Also missing was a wooden box, its top inscribed with the words “Together Forever,” that contained the ashes of her late husband, Robert. The culprit, Ms. Ash soon learned, was not a burglar but her bank. According to a federal lawsuit filed in October by Ms. Ash, Bank of America had wrongfully foreclosed on her house and thrown out her belongings, without alerting Ms. Ash beforehand. December 22, 2010
African Farmers Displaced as Investors Move InAcross Africa and the developing world, a new global land rush is gobbling up large expanses of arable land. Despite their ageless traditions, stunned villagers are discovering that African governments typically own their land and have been leasing it, often at bargain prices, to private investors and foreign governments for decades to come. Organizations like the United Nations and the World Bank say the practice, if done equitably, could help feed the growing global population by introducing large-scale commercial farming to places without it. But others condemn the deals as neocolonial land grabs that destroy villages, uproot tens of thousands of farmers and create a volatile mass of landless poor. Making matters worse, they contend, much of the food is bound for wealthier nations. December 22, 2010
After Grave Is Moved, Regulations Are ScrutinizedAfter her husband died suddenly at 74 after a brief illness, Juanita Guerra bought two plots in the San Benito Mont Meta cemetery in the Rio Grande Valley — one for her husband and one so she could be buried next to him. Her husband’s family members have been buried in the same section of the cemetery, which has been owned since 1995 by Service Corporation International, a corporate titan of after-life care. A few days after Mr. Guerra’s funeral, the cemetery contacted his family to say there had been a mistake. Someone else already owned the plot where Mr. Guerra was buried. Would the family mind if his grave was moved to another part of the cemetery? The Guerras did mind, and said so. At that point, Jaye Gaspard, the manager of Mont Meta, offered Mrs. Guerra any number of plots where both she and her husband could be buried, said her daughter Gracie Little. Mrs. Guerra continued to refuse. December 22, 2010
Banks Push Fed to Curb Borrowers’ Right to Rescind Mortgages December 22, 2010
Shady Landlord Schemes and How to Fight Back December 22, 2010
State Mortgage Program Lags on Modifying LoansDespite nationally recognized efforts to help residents avoid foreclosure, the state of Maryland has been slow to make mortgage payments more affordable for the struggling homeowners whose loans it owns. Gov. Martin O’Malley and his administration have pressed national loan servicers in recent years to work with homeowners rather than foreclose. But it wasn’t until four months ago that the state — which lends money to first-time homebuyers — designed a program to lower monthly mortgage payments to an amount that its borrowers in trouble could afford, The Baltimore Sun has learned. Only three such modifications have been approved so far. December 22, 2010
Homes at Risk, and No Help From Lawyers December 21, 2010
New Jersey Court May Order Foreclosure Freeze December 21, 2010
Homeowners Use ‘Show Me the Note’ to Fight ForeclosureSteven and Tamara Gewecke are three years behind on their mortgage payments, but they’ve fought off foreclosure. The Minnesota couple refinanced in 2006 to start a business. It failed. Debts mounted. The Geweckes went bankrupt and failed to win a loan modification. But they bought time. In 2009, the Geweckes filed a lawsuit to block their foreclosure. At the heart of their case is this question: Who owns their mortgage? They allege the investor trust that claims to doesn’t because there’s no proper record of the mortgage’s transfer to the trust. Their complaint also alleges that the mortgage didn’t get to the trust until 18 months after the trust closed to new loans. If US Bank, the trustee, can’t prove ownership, it can’t foreclose, the Geweckes say. December 21, 2010
D.C. Area’s Renters are Caught in SqueezeRents in the Washington area have soared to the highest level measured in at least 20 years as an array of economic and psychological forces thrust people into the rental market after the housing sector tanked in the last half of the decade. In this region, rental prices surged 22 percent in 2009 from a decade earlier, according to the latest inflation-adjusted Census figures. Rates jumped in part because 10,000 single-family houses that were occupied by their owners two years ago are now rental properties. Those houses tend to be larger and have higher rents than apartments. December 21, 2010
Recession Forces Rise in Low-wage Families, Report SaysThe Great Recession, responsible for boosting unemployment to its highest levels in a generation, has sharply increased the percentage of working people who earn wages so paltry that they are struggling to survive, according to a new report. The share of working families earning less than double the official poverty threshold - $43,512 for a family of four - increased from 28 to 30 percent between 2007 and 2009, according to a report released Tuesday by the Working Families Project, a nonprofit group that advocates on behalf of the working poor. December 21, 2010
For Mortgage Shoppers, a Mandatory Heads-up on Credit ScoresHome mortgage shoppers should see an unexpected addition to the application paper blitz starting Jan. 1 -a mandatory alert on how their credit scores might affect the rate quote and terms they receive from their lender. The new disclosure represents the end product of a congressional effort dating back to 2003 to make the crucial role played by credit scores in loan pricing more intelligible to consumers and to alert applicants when negative information in their credit bureau files triggers higher rates or adverse terms. December 21, 2010
While Families Lose Homes to Foreclosure, State Agency Delays Federal AidBenjamin Chavarria, an unemployed construction worker, has fallen $20,000 behind on his mortgage. If he does not pay the full amount by Jan. 6, his lender, the California Housing Finance Agency, said it will seize his four-bedroom home in Richmond, which is fast becoming the epicenter of the region’s foreclosure crisis. Since February, the state-run finance agency has received nearly $2 billion from the federal government to help people like Mr. Chavarria avoid losing their homes. But nearly a year after President Obama announced the delivery of the first $700 million installment for the Keep Your Home California initiative, the Housing Finance Agency, which administers the program, has not taken applications or compiled a waiting list for qualified borrowers. December 20, 2010
More See Walking on Mortgage as a Viable PlanMore Americans than ever are showing a willingness to walk away from their underwater homes, according to a recent survey. Chris Kelly is a perfect example of someone who never thought she would send the bank “jingle mail.” But she did. Until last year Kelly, a 46-year old administrative assistant, was living in a 3,000-square-foot home she owned with her ex-husband in the Seattle suburbs. The duo had put the three-bedroom, three-and-a-half bath home on the market before finalizing their divorce in the spring of 2009 but had no luck luring move-up buyers to the $600,000 home even after price markdowns. December 20, 2010
Mortgage Deduction: A Sacred Cow Whose Time is Up?Fifteen years ago, Carol Nietmann and her husband bought a spacious house in Calvert County near the Chesapeake Bay. And thanks to the time-honored tax deduction for mortgage interest, she says, their new place was a little bigger and a little nicer than they otherwise would have been able to afford.Perhaps the most sacred of all the sacred cows in the tax code, the home mortgage deduction has long been seen as critical to a major element in the American dream — owning your own home. It’s also a boon to home builders, construction workers, the financial services industry and local governments that benefited from fatter real estate tax revenue. December 20, 2010
Detroit, Midwest Leaders Visit European Cities on ReboundIn recent weeks, leaders from Detroit, Flint, Cleveland and other Midwest cities have traveled to Europe as part of a “Cities in Transition” exchange sponsored by the German Marshall Fund and the Kresge Foundation. A trip this month took leaders to Leipzig, Germany, and Manchester, England, following an earlier visit to Turin, Italy. All three cities are reversing decades of job losses and population decline. Whether European success translates to U.S. shores remains to be seen. Among key differences, Europeans tend to accept more government oversight than Americans. A more litigious U.S. society might stymie some of the more freewheeling, entrepreneurial programs Europeans are willing to try. December 20, 2010
Underwater Homeowner has 3 Ways to Avoid ForeclosureQUESTION: My nephew is underwater with his mortgage. He owes $115,000 on a townhome worth about $85,000. He just lost his job, but is current on the mortgage payment. Can he quitclaim the property to the bank that holds the mortgage and avoid foreclosure? December 20, 2010
FHA TAKES ACTION AGAINST CAMBRIDGE HOME CAPITALThe Federal Housing Administration’s Mortgagee Review Board (MRB) today announced that it is permanently withdrawing FHA approval of Cambridge Home Capital, LLC (CHC), a Great Neck, New York-based lender. In addition, the MRB will seek a monetary penalty of $182,000. Meanwhile, the U.S. Department of Housing and Urban Development, along with HUD’s Office of Inspector General, worked closely with the U.S. Attorney’s Office in the Southern District of New York in related civil fraud charges announced today against CHC. December 14, 2010
How Baltimore Neighborhoods Fared in the 2000sHigh-income Baltimore neighborhoods might have retained more of their housing-bubble gains than moderate- and low-income communities, a new analysis by Johns Hopkins graduate students suggests. The public-policy students, who wanted to understand how the drama-filled last decade affected 14 varied city neighborhoods, found that home prices in 2009 were far above their 2000 levels in most places — but as a group, the high-income spots held up the best. December 14, 2010
Project to Convert Old Detroit Free Press Building Expected to get Tax CreditsA $70-million plan to turn the old Detroit Free Press building downtown into loft apartments and office and retail space is expected to take another step forward today with anticipated approval of tax credits by the Michigan Economic Growth Authority. Developer Leo Phillips, one of the partners in the project, said the project is in line to receive approval for $9.8 million in brownfield tax credits when the MEGA board takes up the matter today in Lansing. December 14, 2010
Metro Detroit Housing Market Struggles with Lagging Sales, Negative-equity LoansMetro Detroit’s housing market continues to struggle, according to two reports out today. Area home sales were down 15.5% in November compared to a year ago when federal homebuyer tax credits spurred sales to record levels. And more metro Detroit homes were underwater in the third quarter, according to CoreLogic data. There were 124,429 properties with mortgages in negative equity, or 46.3%, in the three months ended Sept. 30. That compares to 123,320, or 44.36% of properties, in negative equity in the third quarter of 2009. December 14, 2010
Libraries Welcome Homeless to ‘Community Living Rooms’Public libraries are becoming more hospitable to the homeless by hosting social-service agencies, organizing events such as book clubs and movie matinees and redesigning their facilities. Instead of trying to deter the homeless from congregating, libraries welcome them and rely on codes of conduct that address issues such as hygiene and behavior to prevent their presence from intimidating other patrons, says Audra Caplan, president of the Public Library Association. The homeless “go to libraries because they don’t have anywhere else to go, and that’s a shame,” she says. December 13, 2010
Not Having a Mortgage Won’t Free You from Foreclosure MessChristopher Marconi was in the shower when he heard a loud banging on his door. By the time he grabbed a towel and hustled to his front step, a U.S. marshal’s sedan was peeling out of his driveway. Nailed to Marconi’s front door was a foreclosure summons from Wells Fargo, naming him as a defendant. But the notice was for a house Marconi had never seen — on a mortgage he never had. December 13, 2010
Los Angeles Seeks to Shed Homelessness ReputationAt a time when cities across the country have made significant progress over the past decade in reducing the number of homeless, in no small part by building permanent housing, the problem seems intractable in the County of Los Angeles. It has become a subject of acute embarrassment to some civic leaders, upset over the county’s faltering efforts, the glaring contrast of street poverty and mansion wealth, and any perception of a hardhearted Los Angeles unmoved by a problem that has motivated action in so many other cities. For national organizations trying to eradicate homelessness, Los Angeles — with its 48,000 people living on the streets, including 6,000 veterans, according to one count — stands as a stubborn anomaly, an outlier at a time when there has been progress, albeit modest and at times fitful, in so many cities. December 13, 2010
Housing Bust Batters Some, Spares OthersA variety of Baltimore neighborhoods ended the roller-coaster ride of the past decade with significantly higher home values than at the start, but some communities saw all the gains of the housing bubble erased by the bust. That’s the conclusion of a group of Johns Hopkins University graduate students who analyzed how the turbulent 2000s affected a mix of low-, moderate- and high-income areas in the city. Two recessions, a financial crisis and a housing run-up followed by collapse did not hit every neighborhood equally. December 13, 2010
HUD TO INVESTIGATE ALLEGATIONS THAT 22 BANKS AND MORTGAGE LENDERS DISCRIMINATE AGAINST AFRICAN AMERICAN AND LATINO LOAN SEEKERS December 9, 2010
The Worst Bathroom in New YorkLast December, I spent a lot of time in the Bronx. My map was a cat’s cradle of pen lines, evidence of crisscrossing the borough in search of the city’s most distressed buildings for a reporting project on derelict landlords. Let’s just say this was a hugely depressing assignment. I began my days by printing out city lists of buildings with the highest code violations, looking for repeat offenders, lead poisoning lawsuits, interesting street names, anything to quell the monotony, really, to distinguish one nondescript address from the next. Prior to visiting Lorillard, I had written about a building on a street facing the elevated Aqueduct Park, a property so neglected that a group of tenants were running a gambling parlor from an apartment on the first floor. December 9, 2010
Despite the Mayor’s Homeless Program, Many Return to Shelters, Critics SayOne of the Bloomberg administration’s signature antipoverty initiatives has come under fire from advocates for the homeless, who say the city has exaggerated its success and ignored data showing that a substantial number of families who enroll in the program end up back in shelters. City officials say the program, which provides generous housing subsidies for up to two years to homeless New Yorkers who find jobs, has helped lift thousands of families out of poverty. But an analysis of city data by advocates for the homeless concluded that, over the past three years, more than one-third of families in the program, known as Advantage, have ended up applying for shelter when their rental subsidies dried up and that one-fourth ultimately returned to a shelter. December 9, 2010
House Advantage: The Sure ThingAn animated explanation of how banks use securities lending to make a profit, while their customers cover the losses. December 9, 2010
Fairfax Neighborhoods Battle New Cell TowersA group of Fairfax County neighborhoods is battling plans to install mobile telephone antennas in a conflict that a county supervisor says appears to be occurring more often as telecom carriers push further into residential areas to satisfy the demand for smartphone service. On the eve of a county Planning Commission meeting Thursday, residents stepped up efforts to oppose two of the five antennas planned in the Providence district near Vienna. Elizabeth Slucher, 50, chair of the Lakevale Estates Community Association, said opponents of a 57-foot-tall antenna on Vale Road fear the new tower will mar the aesthetics in a neighborhood that was developed as part of an equestrian community in 1968. December 9, 2010
Metro Detroit Homeless Shelters Find Need High Year-roundHomeless people in metro Detroit could find themselves with nowhere to go during some of the season’s coldest weather this week. Area homeless shelters have been filled for months, and some warming centers are not scheduled to open until the new year. The demand for shelter at the Coalition on Temporary Shelter (COTS) in Detroit has been high most of the year, officials said. The facility was filled to capacity even some nights during the summer. The shelter has 140 beds. December 9, 2010
To Test Housing Program, Some Are Denied AidIt has long been the standard practice in medical testing: Give drug treatment to one group while another, the control group, goes without. Now, New York City is applying the same methodology to assess one of its programs to prevent homelessness. Half of the test subjects — people who are behind on rent and in danger of being evicted — are being denied assistance from the program for two years, with researchers tracking them to see if they end up homeless. The city’s Department of Homeless Services said the study was necessary to determine whether the $23 million program, called Homebase, helped the people for whom it was intended. Homebase, begun in 2004, offers job training, counseling services and emergency money to help people stay in their homes. December 8, 2010
Value Sinking Fastest on Homes Priced Low to StartDuring the great housing bubble, it was the least expensive homes whose prices went up the most. And now it is those homes that are suffering the most. “That is where the most creative lending was,” said David Blitzer, the chairman of the index committee at Standard & Poor’s, arguing that the lax lending standards played a significant role in the inflation of prices. The S.&P./Case-Shiller indexes released this week showed widespread declines in home prices in the third quarter of this year as the market suffered from the removal of temporary tax credits that had led to a small rally in home prices earlier in the year. No region had lost more than 5 percent in a quarter since mid-2009, but that happened to Phoenix in the third quarter. December 6, 2010
SF: Homeless, Mentally Ill and, Soon, Short a LifelineCaduceus Outreach Services, a nonprofit organization that has provided free psychiatric care to the city’s mentally ill homeless population since 1996, is scheduled to cease operations at the end of this year. There is no money to continue the program, even though it is inexpensive and operates, in large part, with volunteers. The demise comes at a time when the need is acute. Some in the 6th Street area said the number of people requiring help there had increased since the old Transbay Terminal bus station on Mission Street closed for demolition in August, displacing about 100 homeless people. December 6, 2010
U.S. ANNOUNCES SETTLEMENTS WITH TWO CINCINNATI LANDLORDS — 294 HOUSING UNITS TO BECOME LEAD SAFEThe U.S. Attorney’s Office for the Southern District of Ohio, the U.S. Department of Housing and Urban Development (HUD), and the U.S. Environmental Protection Agency (EPA) today announced two settlements against landlords for failing to inform tenants that their homes may contain potentially dangerous lead. The agreements require the landlords to replace windows and cleanup lead-based paint hazards in 31 residential properties containing a total of 294 units (see attached list). In addition to the $480,000 worth of lead abatement work being performed, the landlords also agree to pay civil penalties totalling $12,500. December 6, 2010
RESEARCHERS CALL FOR NEW APPROACHES TO BROWNFIELD REDEVELOPMENTAll across the country, there are environmentally challenged areas called ‘brownfields,’ contaminated properties that often require substantial cleanup before they can be reused for another purposes. In the latest issue of Cityscape, an independent journal published by the U.S. Department of Housing and Urban Development, several scholars are calling for new policies and approaches that could significantly accelerate stalled brownfield redevelopment. December 6, 2010
Glam Chicago Home Hides its 48 Rooftop Solar PanelsIn a traditional Chicago neighborhood, Michael Yannell’s new courtyard home has a distinctive butterfly-shaped roof that hides its 48 rooftop solar panels from street view. I had the good fortune to tour Yannell’s 2.675 square foot home, along with a group of about 50 architects and green building experts, while attending the recent Greenbuild conference. The private U.S. Green Building Council, which sponsored the conference, gave his project the top or platinum LEED (Leadership in Energy and Environmental Design) award. December 5, 2010
Don’t Forget about These 20 Costs of Home OwnershipWhen Bill Douglass and his wife bought their first home, he budgeted $250 a month for maintenance costs. He soon found out that it was $300 a month — just to maintain the lawn. “I have to admit, I was rather naïve about the costs involved in being a homeowner,” he said. Two months after they moved in, a FedEx truck accidentally backed into the house, damaging the gutter. That was $900. Then they had a baby girl! It cost an estimated $10,000 for the first year of a baby’s life, according to one baby calculator. December 5, 2010
Leisure World Residents Might have to Pay for Name, GlobeResidents of Leisure World in Silver Spring might be forced to abandon the long-standing name of “active adult” community and its landmark steel globe if they aren’t willing to pay for the right to use them. Leisure World has been a Montgomery County fixture for 44 years, and its 8,500 residents are considered one of Maryland’s most potent political forces. But the daughter of Leisure World’s developer says her company owns the trademark to the globe and name. After providing more than 40 years of free use, the company needs to protect its rights to the brand, which earns fees from real estate agents around the country who advertise themselves as “Leisure World specialists,” she says. December 5, 2010
Mediation Offer Now Required before D.C. ForeclosuresIf you are a District homeowner facing foreclosure, there may be some good news. Last month, Mayor Adrian Fenty signed into law emergency legislation intended to help struggling homeowners. Under the new law, effective Nov. 17, before a lender can foreclose on a residential property, the borrower must be given the opportunity to enter into mediation with the lender in an attempt to prevent the loss of the family home. The question now is straightforward: Will mediation work? Experience elsewhere may offer some insight. Currently, 23 states - including Maryland but not Virginia - have enacted some form of mediation legislation. December 5, 2010
Try to Get Current Lender to Match Bank’s Refinancing Rate OfferQ. Two months ago, I applied for refinancing with my current lender and was offered 4.875 percent (90-day rate lock) compared with my current 5.75 percent. I was told I could back out anytime and the cost to me would only be the appraisal cost of $380 and the cost of the survey. Both of these were charged to my credit card and the appraisal was done and was more than enough to qualify for the loan. For the last four weeks, I have been e-mailing and leaving messages asking if we can lower the rates, given that these have come down, and to get updates on the loan processing… December 5, 2010
Are Banks Unfairly Denying Certain Loan Applicants?A national consumer coalition plans to file a series of landmark federal fair housing complaints beginning Dec. 6, challenging a widespread practice by banks and mortgage lenders: requiring borrowers who apply for FHA loans to have FICO credit scores well above the 580 minimum set by the FHA for qualified applicants with 3.5 percent down payments. The complaints allege that the higher FICO requirements disproportionately discriminate against African American and Latino borrowers, many of whom have credit scores above the 580 threshold set by FHA but below the 620 to 660 minimums frequently imposed by private lenders. FICO scores run from 300 to 850, with higher scores correlated with lower future risk of default. December 5, 2010
When Borrowers Default on Second HomesSome affluent homeowners have been walking away from a second home or investment property that is worth less than what is owed on the mortgage, even though they can still afford to make the payments. But dumping that beach condo or country cottage, or even a home bought for an adult child — a practice known in the industry as a “strategic default” — is not the same as discarding a poorly performing stock or bond. Among the lingering effects is wrecked credit that can prevent the homeowner from getting another loan of any kind for 7 to 10 years. December 5, 2010
Despite Sharp Discounts, Foreclosure Sales Off 25% in 3QThe worst summer for home sales in decades also put a chill on foreclosure sales, even as the average discounts on the distressed properties got bigger compared with other types of homes. Foreclosure sales plunged 25% in the July-September quarter vs. the April-June period and were down 31% from the third quarter last year, foreclosure listing firm RealtyTrac said Thursday. Sales of non-foreclosed properties fell 29% from the second quarter and nearly 31% from the third quarter last year, the firm said. December 3, 2010
Homeless, Mentally Ill and, Soon, Short a LifelineCaduceus Outreach Services, a nonprofit organization that has provided free psychiatric care to the city’s mentally ill homeless population since 1996, is scheduled to cease operations at the end of this year. There is no money to continue the program, even though it is inexpensive and operates, in large part, with volunteers. The demise comes at a time when the need is acute. Some in the 6th Street area said the number of people requiring help there had increased since the old Transbay Terminal bus station on Mission Street closed for demolition in August, displacing about 100 homeless people. December 3, 2010
Banks’ Legal Right to Foreclose is Questioned in Testimony before House PanelThe system of pooling and selling mortgages around the world has caused widespread confusion about who owns the loans and raises questions about whether banks in some cases have the legal standing to foreclose, a state judge and consumer attorneys testified before Congress on Thursday. New York State Supreme Court Justice Dana Winslow said that “standing has become such a pervasive issue” in the cases he sees “that I frequently use the term ‘presumptive mortgagee’ ” to describe the entity trying to foreclose. Rep. John Conyers Jr. (D-Mich.), chairman of the House Judiciary Committee, emphasized that as of last year, about 2.5 million homes were lost to foreclosure and that projections estimate that as many as 13 million homes will be lost to foreclosure by the time the crisis abates. December 3, 2010
Consumers Show Renewed Strength on Positive Retail, Housing DataAfter two years on the sidelines, American consumers are spending again and raising hopes that they are ready to shoulder the burden of the nation’s economic recovery. Consumers’ growing strength was evident in data released in recent days across a wide array of sectors: Pending home sales shot up a surprising 10 percent, according to an industry group, a record increase. Sales at the Big Three automakers have increased by double-digit percentages. And many of the nation’s largest retailers reported better-than-expected sales from door-buster deals and midnight openings last month, with Cyber Monday alone raking in a historic $1 billion. December 3, 2010
Chicago Closes Cabrini-Green ProjectTo some, Cabrini-Green’s infamous high-rises were a symbol of urban blight — towering testaments to the failure of Chicago public housing to give safe shelter to the poorest of the poor. But to the remaining residents being ousted from the complex’s last building, Cabrini-Green was simply home.The closure of Cabrini’s high-rises this week marks the end of an ugly era in public housing. The 70-acre development was initially hailed as a salvation for the city’s poor that was emulated nationwide. But it quickly decayed into a virtual war zone, the kind of place where little boys were gunned down on their way to school and little girls were sexually assaulted and left for dead in stairwells. December 2, 2010
HUD SECRETARY DONOVAN ANNOUNCES THAT RECOVERY ACT FUNDING HAS PREVENTED OR ENDED HOMELESSNESS FOR OVER 750,000 PERSONSU.S. Housing and Urban Development (HUD) Secretary Shaun Donovan announced today that homelessness for 750,000 Americans was prevented or ended, thanks to HUD’s Homelessness Prevention and Rapid Re-housing Program (HPRP), funded through the American Recovery and Reinvestment Act of 2009. The program provided $1.5 billion to local communities to keep families in their homes or help them find other affordable housing after a sudden financial crisis, which might have otherwise led to homelessness. December 2, 2010
Distressed Homes in U.S. Sell at Biggest Discount in Five YearsU.S. homes in the foreclosure process sold for about 32 percent less than non-distressed properties in the third quarter, the biggest discount in five years, as buyer demand slumped, according to RealtyTrac Inc. The average discount for bank-owned real estate, residences in default or those scheduled for auction rose from 29 percent a year earlier, RealtyTrac said in a report today. A quarter of all U.S. transactions involved those types of homes, according to the Irvine, California-based data seller. Sales of foreclosure properties plunged 31 percent as the end of a buyer tax credit reduced purchases overall, RealtyTrac said. The decline came before loan servicers including Bank of America Corp. and JPMorgan Chase & Co. halted some home seizures amid claims that employees processed thousands of documents without verifying them, a practice known as robo-signing. December 2, 2010
Fannie, Freddie Say Mortgage Servicers Triggered Foreclosure CrisisFannie Mae and Freddie Mac defended their role in the foreclosure crisis in prepared testimony to Congress on Wednesday, while at least one federal regulator said the mortgage giants had contributed to the problem. Speaking to the Senate Banking Committee at a hearing on the national foreclosure debacle, Fannie and Freddie executives emphasized that they are not responsible for managing payments by borrowers on home loans or foreclosing on homeowners when they default. These tasks, executives say, are the responsibility of mortgage servicers and law firms with which the companies contract. December 2, 2010
Balto. Co. Restaurateur Vows to Take Zoning Fight to the BayLawrence J. Thanner Jr. has lost a years-long battle with Baltimore County to have live music at his waterfront restaurant, but he says he’ll take the fight to the Chesapeake Bay with a floating bandstand. Moving the music to the water would be the next turn in a case that the Board of Appeals said could have “far-reaching effects” in the county, because it could affect other restaurants that feature musical entertainment. The county contends that the music and other factors make the Dock of the Bay a nightclub, which is not permitted in that zone on Cuckold Point Road. Thanner says his establishment is a restaurant and has the proper zoning. December 2, 2010
Freddie Mac Halts Home Evictions for HolidaysFreddie Mac said Wednesday that it will suspend foreclosure evictions from Dec. 20 through Jan. 3 of next year. The temporary suspension applied only to those homes that have mortgages backed or guaranteed by Freddie Mac. This is the third straight year Freddie Mac has suspended evictions during the holiday season. Fannie Mae, its sibling company, also won’t be evicting people from their homes over the holidays, said company spokeswoman Janis Smith. The company has yet to put out a release regarding the suspension. Washington-based Fannie Mae and Freddie Mac own or guarantee about half of all U.S. mortgages. They purchase home loans from lenders, package them into bonds with a guarantee against default and sell them to investors. December 2, 2010
Foreclosures Weigh on Metro Home PricesMillions of foreclosures and weak demand from buyers are forcing home prices down in most major U.S. cities. Prices are falling even in such places as San Francisco and San Diego, which had posted strong increases a few months ago. Analysts say many markets won’t improve until they see fewer foreclosures and more job gains. “Unemployment is still high, people are afraid of losing their homes, and credit is hard to get,” said Maureen Maitland, vice president of Standard & Poor’s index services. December 1, 2010
A Renter With Piano-Sized IssuesThough she had rented in both Boston and Pittsburgh, Vivian Choi had no idea what she would be facing in a hunt for an apartment in New York. Ms. Choi, who was born in Seoul, Korea, and grew up in a suburb of Sydney, Australia, had friends in the city, so she knew housing was expensive and difficult to find. “But no one said it was so, so difficult,” she said. “I lived in some crazy places, I speak the language, I’ve been in America for five years — how difficult could it be?” Very difficult, if you are in New York on a student visa. And to complicate matters, Ms. Choi had a grand piano. December 1, 2010
House Approves Payments to Indians and Black FarmersThe House passed landmark legislation on Tuesday to pay for about $4.6 billion in settlements with American Indians and black farmers who say they faced discrimination and mistreatment by the government. Lawmakers voted 256 to 152 to send the measure to President Obama, whose administration brokered the settlements over the past year. The package would award about $3.4 billion to American Indians over claims that they were cheated out of royalties overseen by the Interior Department for resources like oil, gas and timber since 1887. Another $1.2 billion would go to African-Americans who claim that they were unfairly denied loans and other assistance from the Agriculture Department. December 1, 2010
A Solar Installation Spree as the Deadline for Federal Grants ApproachesOwners of commercial buildings are rushing in such numbers to meet an end-of-the-year deadline for a federal Treasury grant program for solar energy installations that inventories of some equipment have dried up, solar energy experts said. Incentives for owners to install solar panels on their warehouses, or even on excess land, have been growing in recent years, with one of the most important being a federal tax credit for 30 percent of the solar project’s cost. That credit was converted to a Treasury grant program in February 2009 as part of the American Recovery and Reinvestment Act. Instead of having to wait to take the credit against taxes owed, owners receive a check within 60 days of the project’s completion. December 1, 2010
Home Prices Falling at Faster Rate, New Report ShowsThe decline in home prices is accelerating across the nation, according to a new report, and a record number of foreclosures is expected to push prices down further through next year. But a second report released on Tuesday indicated that consumer confidence in the economy rose in November to the highest level in five months amid some more hopeful signs. The Standard & Poor’s Case-Shiller 20-city home price index released Tuesday fell 0.7 percent in September from August. Eighteen of the 20 cities recorded price declines. December 1, 2010
Historic Jacob House Cabin Resurrected in East TowsonPeople with spare means but sure hands built a cabin in East Towson in the 1800s, leaving their mark in tight joinery and chestnut logs. The builders put up a cabin that might now be one of the oldest structures in this area of town, which was settled by freed slaves and their descendants between the 1850s and the 1920s. The house has survived a literal trial by fire and now nears the beginning of its second life as a tiny museum furnished to represent a very modest home of its time. December 1, 2010
Close to Home: Decatur, Ill., Avoids Big Price SwingsDecatur, Ill., the soybean capital of the world, has stayed placid through the housing boom and bust. Even during the recession, when unemployment increased, home sales were mostly unruffled. “Our growth is about 3% a year,” says Terry Smith, board treasurer of Decatur Association of Realtors. “We just don’t have big swings in our market. And I’ve been doing this for 30 years.” November 30, 2010
Is Real Estate On Sale?With the collapse of the real estate market, record low interest rates, increased financing from the Small Business Administration, and the drop in demand, the game has changed. All businesses should be looking at their occupancy costs, whether they rent or own their property. And yet, a recent report by CIT Group, a provider of financing to small businesses and middle-market companies, found that only 28 percent of small-business owners believe that buying real estate right now is a “great” or “substantial” opportunity.” November 30, 2010
TARP Expected to Cost U.S. Only $25 Billion, CBO SaysThe Troubled Assets Relief Program, which was widely reviled as a $700 billion bailout for Wall Street titans, is now expected to cost the federal government a mere $25 billion - the equivalent of less than six months of emergency jobless benefits. A new report released Monday by the nonpartisan Congressional Budget Office found that the cost of TARP has plummeted since its passage in October 2008, when policymakers thought that the world stood on the brink of an economic meltdown. November 30, 2010
Home Prices in U.S. Cities Rose Less Than ForecastHome prices in 20 U.S. cities rose in September at the slowest pace in eight months, showing the latest slump in sales is destabilizing housing. The S&P/Case-Shiller index of property values climbed 0.6 percent from September 2009, the smallest gain since January, the last time prices declined year over year, the group said today in New York. The increase was smaller than the 1 percent median forecast in a Bloomberg News survey of economists. The end of a government tax credit and unemployment near 10 percent have led to a decrease in demand, delaying a recovery in the industry that precipitated the worst recession since the 1930s. Mounting foreclosures and declining home values threaten to undermine the improvement in consumer confidence that is helping boost spending and accelerate economic growth. November 30, 2010
FTC Outlaws Upfront Payments for Mortgage ModificationYou’ve probably seen the pitches on TV and the Internet or found them stuffed in your mailbox: official-looking communications complete with logos and letterheads that look vaguely like those used by the Treasury, Internal Revenue Service and other federal agencies. The promoters have names that resemble those of well-known, legitimate federal foreclosure-intervention programs such as Making Home Affordable or Home Affordable Modification. Some even use photos of President Obama or the Great Seal of the United States. November 30, 2010
Some Homeowners Still Owe after Short SaleSome former homeowners who went through short sales to avoid foreclosure are finding they are still in debt to their lenders. Because the short-sale concept, which allows people to sell their homes for less than they owe, is designed specifically to help homeowners avoid having to pay their lenders more money, some sellers have been careful to negotiate their deals so the lender, by contract, can’t later seek payment. Those who haven’t done so are at risk. November 29, 2010
New RCI System Makes Trading Time-share Weeks EasierRCI, one of the largest time-share exchange companies, has introduced new features that it says will give its 2 million members more options in trading their vacation properties. The changes are designed to stir more customers to trade, which would boost the company’s revenue at a time when the industry is still struggling to recover from a deep downturn. They’re also aimed at deflecting a common customer complaint in the past that trading up — say, converting a summer week in South Carolina to a week’s stay in Manhattan— is difficult or nearly impossible. November 29, 2010
Cause Sought in Fatal Fire; 130 Left Homeless in BronxInvestigators were trying on Sunday to determine the cause of a fire that broke out in the lobby of a Bronx apartment building on Saturday night and leapt up a staircase, forcing many residents to flee down fire escapes. A man was killed, and a woman was injured when she jumped from a second-floor fire escape. Firefighters found the body of the man in the stairwell of the building, at 131 East 169th Street. Nine people, including two firefighters, suffered minor injuries in the blaze, which took 106 firefighters more than a half-hour to bring under control. November 29, 2010
Lerner Loses Tysons Corner Land Price CaseIn the arduous process of acquiring the land needed to extend Metrorail to Tysons Corner, the Virginia Department of Transportation won a small battle recently with a big foe, real estate magnate and Washington Nationals owner Theodore N. Lerner. The state, needing some of Lerner’s land in Tysons to build a Metro station and tracks there, took it by eminent domain and paid the developer about $24 million for the property two years ago. Construction is underway on the new station, slated for the corner of Chain Bridge Road and Tysons Boulevard. November 29, 2010
Washington Area Housing Costs Eat Up Burdensome Share of Resident BudgetsOne in five renters and one in seven homeowners in the Washington area spend more than half their income on housing, according to census figures, a proportion that housing experts consider a severe burden. A Washington Post analysis of housing and income statistics included in the recent American Community Survey for 2009 underscores how affordable housing is particularly scarce for not only lower-income residents, but for many in the middle class. In Fairfax County, for example, more than half the renters with household incomes of $50,000 to $75,000 spent more than 30 percent of their income last year to keep a roof over their heads - exceeding the historical threshold deemed prudent to pay for shelter including utilities, real estate taxes, condo fees and other associated costs. November 29, 2010
Problems Abound for Vacant Homes’ NeighborsAbandoned buildings are a perennial problem in Baltimore — a city where many residents share connecting walls. Nearly one-third of the city’s 16,000 uninhabitable properties are near occupied homes, city officials say. And a key part of Mayor Stephanie Rawlings-Blake’s new plan to attack vacancies is ratcheting up code enforcement on blocks where many residents still live, issuing fines more quickly. November 29, 2010
Councilman Questions Tax Breaks for Harbor PointA Baltimore city councilman is raising concerns over a plan to grant $155 million in aid to a Southeast Baltimore development project led by bakery magnate and developer John Paterakis Sr. City development officials say the benefits of developing the waterfront parcel far outweigh the city’s investment. They have asked the council to quickly approve a development district encompassing a planned $800 million project at Harbor Point, which is sandwiched between Fells Point and Harbor East. November 29, 2010
Living Small Looms Large Amid Real Estate BustShafer, co-owner of the Tumbleweed Tiny House Company, designs and builds miniature homes with a minimalist style that prizes quality over quantity and makes sure no cubic inch goes to waste. Most can be hooked up to public utilities. The houses, which pack a range of amenities in spaces smaller than some people’s closets, are sold for $40,000 to $50,000 ready-made, but cost half as much if you build it yourself. In a country where most people want to live large, Schafer has become a leader in a small but growing corner of the American housing market: the tiny house. Tumbleweed’s business has grown significantly since the housing crisis began, Shafer said. He now sells about 50 blueprints, which cost $400 to $1,000 each, a year, up from 10 five years ago. The eight workshops he teaches around the country each year attract 40 participants on average, he said. November 29, 2010
Ally to Pay $462 Million to Settle Loan Deal with Fannie MaeAlly Financial said Monday it will pay $462 million to settle buyback claims on $292 billion in home loans that it sold to Fannie Mae before the industry tightened underwriting standards in the wake of the financial meltdown. GMAC Mortgage, which is part of Ally’s Residential Capital unit, originates and services loans then sells them to government-sponsored mortgage companies Fannie Mae and Freddie Mac. As part of their repurchasing deals, Fannie and Freddie have the option to go back and challenge Ally’s underwriting standards. If successful, they could have forced Ally to buy back the loans in question. November 28, 2010
DC Poised to Relax Affordable Housing in Waterfront DealThe DC Council is rushing to a final vote on Tuesday to roll back affordable housing at the Southwest Waterfront. The vote would relax existing requirements in the land deal that make 30% of new housing affordable for residents at low incomes. The Southwest Waterfront project will replace acres of parking lots and low wharf buildings with a lively, walkable district. But creating a great neighborhood means doing more than building high-end condos and attracting top-tier retailers. The neighborhood also needs to include a range of residents with different income levels. The Anacostia Waterfront Development law requires that the redeveloped public lands provide 30% affordable housing for families at very low incomes, protect water quality to a high standard, and include strong local hiring and workforce development. November 20, 2010
Foreclosure Mess Prompts Growing Number of Public Officials to Slow Down ProcessOne month ago, the city of Chicago and the surrounding suburbs of Cook County became a foreclosure-free zone. It wasn’t the banks or judges that instituted the moratorium, because they were still moving cases forward at a rapid clip. The holdup was elsewhere: at the sheriff’s office. Sheriff Thomas J. Dart, whose office is responsible for physically evicting delinquent homeowners, announced Oct. 19 that his deputies would “no longer be doing the banks’ work for them anymore.”“I can’t possibly be expected to evict people from their homes when the banks themselves can’t say for sure everything was done properly,” he explained. November 12, 2010
Obama to Name North Carolina Regulator Fannie, Freddie OverseerPresident Barack Obama will nominate North Carolina Banking Commissioner Joseph A. Smith Jr. to be chief regulator for Fannie Mae and Freddie Mac as the administration prepares to overhaul the mortgage firms, according to White House officials briefed on the matter. Smith, 61, will be named as soon as today as Obama’s choice to become director of the Federal Housing Finance Agency, according to the people, who declined to be identified because the decision hasn’t been made public. The agency has overseen the two companies since they were seized by regulators in September 2008. November 12, 2010
Homeowner, Facing Foreclosure, Goes on Hunger StrikeA Baltimore homeowner who fell behind on her mortgage payments after her property taxes unexpectedly spiked protested in an attention-grabbing way this week: She went on a hunger strike.Lauren Rymer started just after 7 a.m. Monday and spent an empty-stomach day camped out in Annapolis, trying to get an audience with Gov. Martin O’Malley and talking to passersby who wanted to share their stories of economic woe. By the time she ate something at 5 p.m. Tuesday, she’d had a foreclosure alternative offered to her by the state housing department, talked to someone from O’Malley’s office about the tax problem and given interviews to a bevvy of media from WBAL to the Huffington Post to MSNBC about her hope that elected officials will do more to help Americans avoid foreclosure. November 12, 2010
New Orleans’ Battle on Blight Seems to be WorkingBroadmoor, like other neighborhoods across New Orleans, continues to wrestle with abandoned homes, decrepit structures and overgrown lots even as it draws back residents and reopens schools. Katrina left more than 65,000 blighted structures or empty lots across the city — more than any other city in the USA — creating a major hurdle to recovery. That problem is steadily shrinking. The number of blighted homes or empty lots in New Orleans has dwindled from 65,428 in 2008 to 43,755 today — a 32% decrease in 2½ years, according to a recent analysis by the Greater New Orleans Community Data Center (GNOCDC). November 10, 2010
HUD ANNOUNCES PILOT PROGRAM TO HELP HOMEOWNERS PAY FOR ENERGY IMPROVEMENTS TO THEIR HOMESVice President Joe Biden and U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced a new pilot program that will offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. Backed by the Federal Housing Administration (FHA), these new FHA PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems. November 10, 2010
At Legal Fringe, Empty Houses Go to the NeedySave Florida Homes Inc. and its owner, Mark Guerette, have found foreclosed homes for several needy families here in Broward County, and his tenants could not be more pleased. Fabian Ferguson, his wife and two children now live a two-bedroom home they have transformed from damaged and abandoned to full and cozy. There is just one problem: Mr. Guerette is not the owner. Yet. In a sign of the odd ingenuity that has grown from the real estate collapse, he is banking on an 1869 Florida statute that says the bundle of properties he has seized will be his if the owners do not claim them within seven years. November 9, 2010
Ambac Files for Chapter 11 Bankruptcy ProtectionBond insurer Ambac Financial Group said Monday that it has filed for Chapter 11 bankruptcy protection after it failed to raise additional capital. The embattled company also failed to arrange a structured bankruptcy agreement with senior debt holders. It has tried for two years to regain its footing after getting pummeled by the collapse of the housing market. The company continues to operate under the jurisdiction of the bankruptcy court. As of June 30, it had $1.62 billion in debt. November 9, 2010
Low Rates Hurt Bonds for HousingIt is not just retired savers who are struggling with a sharp reduction in their investment income as interest rates hover near zero. Hundreds of affordable housing projects across the country are feeling the pain, too. That sets them apart from most borrowers in the municipal bond market, who see today’s low rates as a rare spot of cheer amid shrinking tax revenues and rising pension costs. But this battered collection of public borrowers is learning that low rates can be a two-edged sword — one that can slice their credit ratings to the bone, as detailed in a report to be released Tuesday by Standard & Poor’s Ratings Services. November 9, 2010
For One Real Estate Investor, Vinyl Siding Never Lost Its ShineTo Mr. Canfield, replacing vinyl siding that is in good shape, as some homebuyers do as soon as they have the deed, is like carelessly restoring antiques that came over on the Mayflower. He views vinyl siding facades as the key to preserving Williamsburg’s working-class traditions, which arguably has become its own facade. “It’s not the most beautiful thing, but it’s real,” he said. “It’s authentic. It’s tied to the history of the neighborhood.” In a neighborhood like Williamsburg where vinyl siding is as dominant as brownstone is in Park Slope and concrete is in Midtown, many residents are ready to fight with Mr. Canfield with equal passion. Real estate bloggers devote hours mercilessly photographing homes and posting online what they think are the most lowbrow examples. To the preservation-minded, vinyl siding and its close cousin, aluminum siding, are a hideous blot on the landscape. November 9, 2010
Some Judges Chastise Banks Over Foreclosure PaperworkA year ago, Long Island Judge Jeffrey Spinner concluded that a mortgage company’s paperwork in a foreclosure case was so flawed and its behavior in negotiations with the borrower so “repugnant” that he erased the family’s $292,500 debt and gave the house back for free. The judgment in favor of the homeowner, Diane Yano-Horoski, which is being appealed, has alarmed the nation’s biggest lenders, who say it could establish a dramatic new legal precedent and roil the nation’s foreclosure system.It is not the only case that has big banks worried. Spinner and some of colleagues in the New York City area estimate they are dismissing 20 to 50 percent of foreclosure cases on the basis of sloppy or fraudulent paperwork filed by lenders. November 9, 2010
Investors Raise Pressure on Mortgage LendersSince the housing bubble burst more than three years ago, lenders have been fending off legal challenges from homeowners who say they were duped by bad mortgages. Now the industry faces a potentially more formidable adversary: investors who bought bonds backed by those bad loans.Citibank became the latest lender to disclose that it faces legal challenges from investors demanding a refund on billions of dollars lost on bonds backed by faulty loans. On Friday, Citibank disclosed in a regulatory filling that Charles Schwab, the Federal Home Loan Banks of Chicago and Indianapolis and a hedge fund have filed lawsuits claiming the bank misled them when it sold bonds backed by pools of home mortgages. The key issue: Who will take the losses for billions of dollars worth of failing mortgages written during the height of the housing boom? November 9, 2010
Biden Unveils Plan to Score Homes for Energy EfficiencyU.S. homeowners will be able to get low-cost energy audits that rank a home’s efficiency on a scale of one to 10 and get federally insured loans for upgrades, under an Obama administration plan to be announced today. With the new Home Energy Score, consumers will find out how their home compares with others and how much money they could save by adding insulation, sealing air leaks or doing other upgrades. Nine U.S. communities will test the score, similar to a miles-per-gallon label for cars, before it’s rolled out nationally next summer. November 9, 2010
Taxpayers’ Bill on Freddie, Fannie Foreclosures: $2BTaxpayer-funded Fannie Mae and Freddie Mac have spent more than $2 billion this year on foreclosed property expenses after acquiring tens of thousands of homes through foreclosures. The mortgage giants owned more than 240,000 foreclosed homes on Sept. 30, they reported last week. That’s about 25% of all lender-owned homes in the U.S., according to RealtyTrac. Fannie and Freddie, which buy mortgages from lenders and package them into securities to sell to investors, own or guarantee half of all U.S. mortgages. Together, they have more than twice as many foreclosed homes now as they did this time last year, with a combined value of $24 billion. November 8, 2010
Cost of Green Power Makes Projects Tougher SellEven as many politicians, environmentalists and consumers want renewable energy and reduced dependence on fossil fuels, a growing number of projects are being canceled or delayed because governments are unwilling to add even small amounts to consumers’ electricity bills. Deals to buy renewable power have been scuttled or slowed in states including Florida, Idaho and Kentucky as well as Virginia. By the end of the third quarter, year-to-date installations of new wind power dropped 72 percent from 2009 levels, according to the American Wind Energy Association, a trade group. November 8, 2010
Building a New Life After Their Old Home Was RazedOn June 21, 2009, Ms. Diaz, now 37, was sitting on the couch in her family’s third-floor apartment on Myrtle Avenue in Clinton Hill, Brooklyn, when she heard a soft rustling from the wall behind her. Nothing out of the ordinary, she thought. Seconds later, her daughter, Faith, now 13, ran to her, saying the wall in her room was shaking. Ms. Diaz hurried to the bathroom and grabbed her son, Nicholas, now 17, who was fixing his hair and chatting on his cellphone, oblivious. Together, they raced out of the building and to the opposite sidewalk. Within minutes, the four-story apartment building adjacent to theirs had crumbled to the ground, leaving a plume of smoke and a pile of rubble in its place. November 8, 2010
Irish Debt Woes Revive Concern About EuropeA year ago, as cascading mortgage defaults brought down the biggest Irish banks, Ireland became the first major developed nation to impose an austerity program. The country was hailed worldwide as an exemplar of probity and national consensus. But as the full extent of the banking and real estate bust became evident, it was clear that the government of Prime Minister Cowen, which has been in power since the onset of the crisis more than two years ago, had underestimated the cost of fiscal recovery. Now the possibility that he will be forced from office or compelled to call a new election grows by the day. November 8, 2010
Taking on a Second Mortgage to Pay the Foreclosure LawyerFor some Florida residents, the price of getting out of foreclosure will include taking on a second mortgage — payable this time to their lawyers. The new mortgage, which takes effect only if the foreclosure is dismissed and the homeowner’s debt to the bank is reduced, is controversial among defense lawyers, some of whom call it “creepy” and “crass.” Yet even they acknowledge it offers a solution to a vexing question: How do they get paid? After recent revelations that banks were sloppy in processing many foreclosures and in some cases lack standing to seize a house, potential clients seeking to challenge their lenders are flocking to lawyers. But while these distressed homeowners might have a case, they generally lack the resources to pay legal fees. Being in foreclosure usually means being broke. November 8, 2010
Regulators Flawed in Foreclosure OversightAs foreclosures began to mount across the country three years ago, a group of state bank regulators suspected that some borrowers might be losing their homes unnecessarily. So the state officials asked the biggest national banks for details about their foreclosure operations. When two banks - J.P. Morgan Chase and Wells Fargo - declined to cooperate, the state officials asked the banks’ federal regulator for help, according to a letter they sent. But the Office of the Comptroller of the Currency, which oversees national banks, denied the states’ request, saying the firms should answer only to inquiries from federal officials. November 8, 2010
Mortgage Modifications May Lead to ForeclosureGrocery store owners William and Esperanza Casco were making enough money to stay current on their mortgage, but when JPMorgan Chase & Co. offered a plan that reduced their payments, they figured they could use the extra cash and signed up. The Cascos say they never missed a subsequent payment, so they were horrified when the bank decided the smaller payments weren’t enough and foreclosed on their modest Long Beach home. Their story is echoed across the country by people who claim — some in lawsuits — that banks didn’t live up to their end of the deal when they agreed to trial mortgage modifications. The suits add to a feeling among many struggling homeowners that they’re getting little help from the part of the government’s $700 billion Wall Street rescue that aimed to help them directly. November 8, 2010
HUD AND REALTORS® UNVEIL THREE HOW-TO VIDEOS TO HELP CONSUMERS NAVIGATE THE HOMEBUYING PROCESSEspecially in today’s housing market, the prospect of buying a home can seem overwhelming for many Americans who may not be aware of how to begin the process of shopping for a home or even a mortgage. To help consumers navigate this process, the U.S. Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR) today unveiled three how-to videos to help prospective homeowners find a home they can afford, shop for a mortgage they can sustain, and what to expect when they go to closing. HUD produced the three consumer education videos in coordination with NAR and released them at the Realtors® annual convention in New Orleans. Each video focuses on a critical part of the homebuying process including Shopping for your Home, Shopping for your Loan, and Closing the Deal. November 5, 2010
In the Capital, Rethinking Old Limits on BuildingsFor all the towering ambitions of this city’s residents, its buildings are generally short and boxy. Its low-slung architecture is no accident. In 1910, Congress passed an act limiting the heights of buildings in the capital. The first residential skyscraper, the Cairo, had been built, and at 12 stories, it was higher than fire ladders could reach and scandalously out of sync with its smaller neighbors. One hundred years later, most Washingtonians see the act as a good thing. Their sidewalks are shadowed by the outlines of trees, and the dome of the Capitol can be seen from most roof decks. The act, they say, preserves the unique nature of their city, whose landmarks draw millions of visitors each year. November 5, 2010
Higher Levels of Lead Seen in City Tap WaterNew York City health and environmental officials on Thursday advised residents to run their tap water for at least 30 seconds before drinking or cooking with it after testing showed a rise in the percentage of homes with elevated levels of lead. The city is required to test for lead in tap water each year under the federal Safe Drinking Water Act. In tests conducted from June to September in homes in older buildings known to have lead in their plumbing, 30 of 222 samples — or about 14 percent — exceeded allowable lead levels. Last year, only 5.4 percent of the samples had elevated levels, city officials said. November 5, 2010
To Harlem Churchgoers, Marathon Is a NuisanceAt Mile 21, the New York City Marathon cuts through Harlem, and runners enter the home stretch, down Fifth Avenue from 138th Street. Here many runners “hit the wall” and drop out, or begin a slower hobble toward the finish line in Central Park. And here, with Harlem essentially divided east and west at Fifth Avenue, life is seriously disrupted, especially during the midday churchgoing hours. Streets are blocked, and it can take an hour and a half to drive crosstown. Sunday routines are abandoned to allow every last runner the chance to fulfill his or her goal of completing that boast-worthy 26.2 miles. November 5, 2010
Fed Overlooked Foreclosed Homes in Asset Choices: Caroline BaumHow will we know if it’s working? The Federal Reserve surprised no one yesterday when it announced it would purchase $600 billion of long-term Treasuries, concentrated in 2 1/2- to 10-year maturities, by the end of the second quarter of next year. The move was about as well-advertised as it gets. Now comes the hard part. The Fed’s goal for quantitative easing, part II, is to lower other long-term rates, making it cheaper to buy homes and finance factories. With both ends of the yield curve now under the influence of the central bank, policy makers will lose one of the more important signaling measures they have. November 5, 2010
Builder Taps East Baltimore Roots to Transform Housing, NeighborhoodLloyd Williams, 46, president and CEO of The Verde Group, a Baltimore development company, decided that he wanted to help turn around his old neighborhood, starting with the North Bond Street home his grandfather bought in 1942. Documenting the decay was a starting point, and that’s what he set out to do nearly four years ago. Since then Williams has helped transform more than 20 vacant and rotting shells, mostly along a two-block stretch of North Bond Street, into energy-efficient homes with granite-appointed kitchens, exposed brick walls and, most important, new homeowners, he says. November 5, 2010
Freddie Mac Posts $4.1B Loss for Q3Mortgage buyer Freddie Mac (FMCC) on Wednesday posted a narrower loss of $4.1 billon in the July-September quarter. The government-controlled mortgage buyer also asked for an additional $100 million in federal aid, substantially less than the $1.8 billion it sought in the second quarter.
Freddie Mac’s third-quarter loss attributable to common stockholders works out to $1.25 a share. It takes into account $1.6 billion in dividend payments to the government. It compares with a loss of $6.7 billion, or $2.06 a share, in the third quarter 2009. November 4, 2010
Seeking a New Law’s Protection, Loft Tenants Instead Find GriefAfter New York State passed a law this summer extending residential rights to people living in illegal lofts in much of the city, the seven tenants of 360 Jefferson Street in Bushwick, Brooklyn, acted fast. Theirs was not a pretty building: two and a half stories of dung-colored bricks punctuated by windows encased in rusting metal mesh, on a forlorn street with sidewalks cracked like eggshells. But it was home and, by New York City standards, a deal: 1,200-square-foot expanses rented for about $1,500 a month. Midway through August, they applied for protection and legalization under the new loft law. November 4, 2010
Loan Recording Mess in Va. Allows Homeowners Who Don’t Qualify to Get Tax BreakCountless homeowners in Virginia are getting a tax break for which they don’t really qualify because a mortgage documentation mess makes it hard to determine who qualifies, officials say. The loss of tax revenue for local governments and the state is another result of the lending industry growing so fast and becoming so complex during its go-go years that it outstripped its paper trail. Because the problem involves blind spots in official records, no one can say how much revenue is being lost. But the amount could be significant. November 4, 2010
How the Election Will Affect HousingSince Fannie Mae and Freddie Mac were seized by the federal government in September 2008, lawmakers, with a few exceptions, have remained surprisingly mum about what will become of them. The Obama administration has promised to deliver a plan for the future of housing finance a few times, but ultimately put it off until next year. Restructuring Fannie and Freddie in any meaningful way would have been difficult enough when one party dominated Capitol Hill. Now, with polls predicting that Republicans will at least split the legislative branch — if not take it over outright — it may be completely impossible to restructure the government-sponsored entities. November 4, 2010
Oklahoma City Tops the List of Most AffordableOklahoma may be best known for wind sweepin’ down the plain and corn that’s as high as an elephant’s eye. But there’s a lot more going on in the Sooner State than Rodgers and Hammerstein musicals would lead you to believe. Just consider the state capital, Oklahoma City: It’s got good schools and universities, friendly residents and an unemployment rate well below the national average — 6.3 percent compared with the nationwide 9.5 percent. Thanks to good jobs and low cost of living, the Oklahoma City metro area ranks as America’s Most Affordable City. November 4, 2010
District, developers work to revive old DPS buildings Read more: District, developers work to revive old DPS buildingsLike many former Detroit Public Schools buildings, the old Malcolm X Academy might have sat vacant for many years, slowly rotting away. Instead, Detroit developer Joel Landy has taken over the building and has the option to buy it. He has been renovating it as a music recording studio and practice space, and says he has lined up some Grammy-winner talent to produce music there. The prospect of rescuing other vacant school buildings for productive new uses will be the focus of an all-day workshop being announced today by DPS. November 4, 2010
Solar-Panel Maker to Close a Factory and Delay ExpansionSolyndra, a Silicon Valley solar-panel maker that won half a billion dollars in federal aid to build a state-of-the-art robotic factory, plans to announce on Wednesday that it will shut down an older plant and lay off workers. The cost-cutting move, which will reduce the company’s previously announced production capacity, is a sign of the notable shift in the prospects for cutting-edge American solar companies, which now face intense price competition from Chinese manufacturers that use more established photovoltaic technologies. November 3, 2010
The Failure of Mortgage ModificationThe Obama administration’s Home Affordable Modification Program for reducing mortgages of homeowners who owe more than their houses are worth has fallen far short of its objectives. Officials seem surprised by that outcome and blame the result on administrative problems. But, all along, the program’s bad economics doomed it to failure. Home buyers take usually out mortgages that cover only part of the value of the houses they are buying. In other words, the house is worth more than the mortgage owed. This means that in the event a borrower defaults, the lender can, in most cases, be repaid in full by foreclosing on the house and selling it to someone else. November 3, 2010
Banks Ease Up on Foreclosures Amid Increased ScrutinyIn the Florida courtroom of Chief Judge Victor Tobin, there’s been a marked change the past month in the pace of foreclosures that mortgage companies ask him to approve. Tobin had been handling up to 200 cases a day in which delinquent borrowers weren’t contesting mortgage servicers’ motions seeking court approval to repossess their homes. Now, it’s about 50 a day. November 2, 2010
N.J. OKs Sale of Resorts, Atlantic City’s First CasinoWhen it opened 32 years ago, in May 1978, Resorts Atlantic City was the only place in the United States you could go gamble legally outside Nevada. On Wednesday, the New Jersey Casino Control Commission allowed veteran casino executive Dennis Gomes and New York real estate developer Morris Bailey to buy Resorts for the fire-sale price of $31.5 million. The sale is expected to close Monday. Resorts had been in danger of closing in recent months when its cash flow ran perilously low. That accounts in part for the price, by far the lowest ever paid for a casino in Atlantic City. November 2, 2010
An Opening for D.C. Foreclosure ChallengesD.C. Attorney General Peter Nickles this week created an opening for potentially tens of thousands of homeowners to challenge their foreclosures. He issued an enforcement statement emphasizing that District law requires that the assignment of a mortgage from one party to another be recorded within 30 days of the transfer. This is a problem because many of the country’s biggest mortgage companies list MERS, or the Mortgage Electronic Registration System, as the mortgage holder — rather than the actual owner of the mortgage — in local deed offices. November 1, 2010
Facing Foreclosure? Don’t Worry. You Can Still VoteAs the foreclosure crisis continues unabated and the midterm elections approach, at least 12 states have issued guidelines that address the complicated issue of voting while in foreclosure. Voters are required to register to vote in the county in which they live, but for individuals in the middle of a messy foreclosure, residency is sometimes difficult to pin down as they bounce from rental to rental or crash with family or friends. November 1, 2010
Amid Mortgage Mess, Owners BlindsidedAcross the country, struggling homeowners are increasingly tripped up by mortgage lenders that press ahead with foreclosures regardless of any effort they make to provide borrowers with relief on unaffordable mortgages. Amid the worst housing crisis since the Great Depression, mortgage companies have established a dual-track approach toward troubled homeowners, negotiating with them over loan modifications while trying to seize their homes. November 1, 2010
Self-Managed Buildings Turn Tenants Into SupersA small percentage of buildings in New York City, most of them with only a handful of units, operate on a system that might draw shudders from apartment owners accustomed to running to the super or calling a managing agent for any concern. Residents of self-managed buildings do everything themselves: They take out the trash. They shovel the snowy sidewalks. They hire the contractor to fix the roof. They balance the books. They file the forms and permits required by the city Department of Buildings and Department of Finance. They enforce the building rules — no exceptions for friends and (obviously) neighbors — on everything from pets to renovations. October 30, 2010
The States Take on ForeclosuresHave you noticed that the lead dogs investigating the mortgage foreclosure mess are not any federal prosecutors or national bank regulators, but rather the state attorneys general? I sure have. I can’t think of a more encouraging development. Yeah, yeah, a handful of federal investigations have also been announced, but we all know that they’re not going to amount to a hill of beans. Ever since the financial crisis began two years ago, the federal overseers of the banking industry have been consistently unwilling to take the rod to the institutions they regulate. The robo-signing scandal — and it is, unquestionably, a scandal — hasn’t changed that attitude one iota. October 30, 2010
Foreclosure Activity Up Across Most Metro AreasThe foreclosure crisis intensified across a majority of large U.S. metropolitan areas this summer, with Chicago and Seattle— cities outside of the states that have shouldered the worst of the housing downturn — seeing a sharp increase in foreclosure warnings. California, Nevada, Florida and Arizona remain the nation’s foreclosure hotbeds, accounting for 19 of the top 20 metropolitan areas with the highest foreclosure rates between July and September, foreclosure listing firm RealtyTrac said Thursday. Those states saw housing values surge during the housing boom years. When the boom ended, values collapsed and foreclosures soared. October 29, 2010
Mortgage Rates Rise Slightly but Remain Near Record LowsRates on 30-year fixed mortgages rose slightly this week to an average of 4.23%, just above the lowest level in decades. The average rate for 30-year fixed loans inched up from 4.21% the previous week, mortgage buyer Freddie Mac said Thursday. Earlier in the month, rates fell to 4.19%, the lowest average on records dating back to 1971. The average rate on 15-year fixed loans rose to 3.66%. That was up from 3.64% a week earlier. October 29, 2010
Solar Power Projects Face Potential HurdlesThe long-promised solar building boom in the desert Southwest is finally under way. Here in the Mojave Desert, a dice throw away from the Nevada border, giant road graders and a small army of laborers began turning the dirt for BrightSource Energy’s $2 billion Ivanpah project, the first large-scale solar thermal power plant to be built in the United States in two decades. The Ivanpah plant is the first of nine multibillion-dollar solar farms in California and Arizona that are expected to begin construction before the end of the year as developers race to qualify for tens of billions of dollars in federal grants and loan guarantees that are about to expire. The new plants will generate nearly 4,000 megawatts of electricity if built — enough to power three million homes. October 29, 2010
Title Insurers Drop Demands on Mortgage Lenders in Foreclosure CasesMortgage servicers have successfully pushed back an attempt to make them explicitly responsible for title problems resulting from their handling of foreclosure paperwork and legal procedures. Three major title insurance companies - First American Financial, Old Republic International and Stewart Information Services - told Wall Street analysts in conference calls Thursday that they had decided not to demand written indemnifications from lenders re-selling foreclosed homes. Combined, the three companies account for 52 percent of the title insurance market. October 29, 2010
America’s Biggest Landfills: Is One Near You?If you’ve ever gazed out the window while jetting cross country, you know that much of America remains a vast wilderness with plenty of nooks and crannies to accommodate the $50 billion annual business of burying the detritus of modern life. Like flushing the toilet and walking away, the waste Americans create, for the most part, quickly goes out of sight, out of mind. That is, unless you happen to live near one of America’s 10 biggest active landfills. October 29, 2010
Wells Fargo Provides Update on Foreclosure Affidavits And Mortgage SecuritizationsOut of an abundance of caution and to provide an additional level of assurance regarding its processes, the company is electing to submit supplemental affidavits for approximately 55,000 foreclosures which are pending before courts in 23 judicial foreclosure states. The process of submitting supplemental affidavits will begin immediately with a goal of having this process completed by mid-November 2010, subject to state and local requirements. If the company is unable to complete an individual court filing by the designated court review date, it will request a court extension to assure the file contains a supplemental affidavit before the judge rules on the case. Additionally, Wells Fargo reaffirms that it does not plan to institute a moratorium on foreclosure sales. October 28, 2010
Wells Fargo Admits Mistakes in 55K Foreclosures; Not Halting ProcessWells Fargo (WFC) admitted Wednesday it made mistakes in 55,000 foreclosure cases and promised to fix them. The San Francisco-based bank said it is plans to refile the documents by mid-November. The company described the mistakes as technical and said it has no plans to halt the foreclosure process. “We don’t believe that there are instances in which the foreclosures would not have occurred otherwise,” says Teri Schrettenbrunner, a Wells Fargo spokeswoman. The documents are being refiled in the 23 states where a judge’s approval is needed to complete a foreclosure. October 28, 2010
HUD STRENGTHENS PROTECTIONS FOR VICTIMS OF DOMESTIC VIOLENCEU.S. Housing and Urban Development Secretary Shaun Donovan announced today new, stronger affordable housing regulations that protect victims of domestic abuse as the nation concludes National Domestic Violence Awareness Month. “This rule recognizes the need to protect victims of domestic abuse from being evicted just because they were victimized. No one should be afraid of losing their home if they report abuse” said Donovan. “The Obama Administration has strengthened the existing interim regulation to further protect victims and ensures that current or former victims of domestic violence will not be turned down from HUD programs.” October 28, 2010
In Spain, Homes Are Taken but Debt StaysManolo Marbán, 59, is still living in his house in Toledo (Madrid) and going to work in the small pink-and-aqua pet grooming shop he bought here in 2006, when he got swept up in Spain’s giddy real estate boom. But Mr. Marbán does not own either anymore. The bank foreclosed on both properties last April, and he is waiting for the courts to issue the eviction notices. For most Americans facing foreclosure, that is the end of it. But for Mr. Marbán and thousands of others here, it is just the beginning of their troubles. When the gavel falls on his case, he will still owe the bank more than $140,000. “I will be working for the bank for the rest of my life,” Mr. Marbán said recently, tears welling in his eyes. “I will never own anything — not even a car.” October 28, 2010
Homeowners Facing Foreclosure Demand RecourseAs lenders have reviewed tens of thousands of mortgages for errors in recent weeks, more and more homeowners are stepping forward to say that they were victims of bank mistakes — and in many cases, demanding legal recourse. Some homeowners say the banks tried to foreclose on a house that did not even have a mortgage. Others say they believed they were negotiating with the bank in good faith. Still others say that even though they are delinquent on their mortgage payments, they deserve the right to due process before being evicted. October 28, 2010
On Upper East Side, Parking Laws Meet Parking CustomsNew Yorkers blessed and cursed with cars have learned that there are few things more frustrating than trying to find street parking. Yet, in front of some of the city’s priciest apartment buildings, often on the Upper East Side, there seems to be an abundance of spaces that drivers are not taking. These are, almost invariably, directly in front of building entrances, and are notated by a sign mounted on a brass stand that politely asks drivers not to park in front of their buildings. This makes it easier for residents and guests to come and go from cabs, cars and Escalades, but officially, it is legal for anyone to park there. October 28, 2010
Treasury Links Foreclosure Ills to Lower Housing PricesThe uncertainty over the legal status of foreclosed homes in the nation could further depress home prices and delay the recovery of the housing market, the Obama administration said on Wednesday. The warning came at the first Congressional hearing since the magnitude of the problem gained wide attention. Distressed properties make up one quarter of all home sales. Revelations about paperwork shortcuts and so-called robo-signed affidavits, as well as the likelihood of protracted legal battles by homeowners and inquiries by state and federal officials, will hinder foreclosure proceedings and discourage prospective buyers, a Treasury Department official said. October 28, 2010
Future of Housing FinanceFrom CNBC, insight on the mortgage mess, with Joseph Murin fmr. president of the Government National Mortgage Association, and Ken Langone, president of Invemed Associates. October 28, 2010
Federal Bailout Oversight Panel Raises Alarms Over Foreclosure CrisisMembers of a congressional panel charged with monitoring the government’s bailout programs expressed alarm and frustration over the potential repercussions of the unfolding home foreclosure crisis during a hearing Wednesday on Capitol Hill. The hearing called by the bipartisan Congressional Oversight Panel was intended to examine the Treasury Department’s foreclosure prevention programs, but panelists focused much of their attention on revelations that some of the nation’s largest mortgage servicers routinely submitted faulty and even fraudulent paperwork as they undertook hundreds of thousands of foreclosures. October 28, 2010
Federal Housing Finance Agency Reports Mortgage Interest RatesThe Federal Housing Finance Agency today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.55 percent based on loans closed in September. This is a decrease of 0.10 percent from the previous month. October 28, 2010
Foreclosure Activity Up Across Most US Metro AreasThe foreclosure crisis intensified across a majority of large U.S. metropolitan areas this summer, with Chicago and Seattle - cities outside of the states that have shouldered the worst of the housing downturn - seeing a sharp increase in foreclosure warnings. California, Nevada, Florida and Arizona remain the nation’s foreclosure hotbeds, accounting for 19 of the top 20 metropolitan areas with the highest foreclosure rates between July and September, foreclosure listing firm RealtyTrac Inc. said Thursday. October 28, 2010
Coalition Invests $80 Million for Poor in Five CitiesImagine investing in cities but only if public, private and philanthropic groups work together on long-term strategies to help low-income residents. Living Cities, a philanthropic collaborative of 22 of the world’s largest foundations and financial institutions, will do that Thursday when it announces $80 million in grants, loans and investments. Nineteen urban centers competed for the money, but five won for programs that challenge conventional wisdom: Baltimore, Cleveland, Detroit, Newark and Minneapolis-St. Paul. October 27, 2010
Stuyvesant Town’s Lenders Take Over PropertyLenders formally took control of Stuyvesant Town and Peter Cooper Village on Tuesday, ending a four-year odyssey that put the affordable middle-class enclave at the center of both the biggest real estate deal in history and a major financial debacle. CW Capital, the company representing the complexes’ senior lenders, is now expected to begin negotiations with tenants over what could be the country’s largest conversion of rental buildings to a condominium or cooperative. That could start battles among the 25,000 tenants over whether the apartments should remain affordable or be allowed to trade openly on the real estate market. October 27, 2010
Mortgage Scandal Boosts Investors’ Campaign to get Banks to Buy Back SecuritiesSince the financial crisis broke out two years ago, unhappy investors in mortgage securities have struggled to organize themselves and achieve a common goal - force big banks to buy back loans that went bad because of shoddy lending practices. Now, widespread reports of the banks botching their loan paperwork have breathed new life into the efforts by investors, and they say they are organizing their most aggressive legal offensive yet against the biggest bank in the country, Bank of America. October 27, 2010
Homeowners’ Cases Bring Foreclosure Irregularities to LightThe Maryland homeowners were simply trying — desperately — to save their houses from foreclosure. But this handful of borrowers inadvertently helped uncover problems in hundreds of cases across the state, prompting emergency action by the courts. Homeowner Gerald Lembach’s troubles began with a disastrous refinancing. The Army civilian retiree needed cash to finish an addition on his modest rancher-style home in Pasadena, which he and his wife bought 23 years ago. But he says the monthly cost for the new loan was much higher than what he expected. October 27, 2010
Home Prices are Weakening Around U.S.Home prices are falling further, suggesting a bottom hasn’t been reached in many metro areas. Millions of foreclosures are expected to pour onto the market in the coming years. That’s likely to force prices down and hurt even cities that had begun to rebound. Investigations into banks’ foreclosure paperwork could further deter buyers and weigh down prices. The past few months have been the worst time in a decade for the housing market. Few people have bought homes, and among the small pool of buyers, many have purchased foreclosures and other distressed properties. October 27, 2010
OBAMA ADMINISTRATION RELEASES OCTOBER HOUSING SCORECARDThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the October edition of the Obama Administration’s Housing Scorecard. The latest housing figures show continued signs of stabilization in house prices and high home affordability due in part to record low interest rates. The housing scorecard is a comprehensive report on the nation’s housing market. October 26, 2010
The Mortgage MorassThe mortgage mess just keeps getting messier. Last week, Bank of America announced that it had performed a “thorough review” of its processes, found nothing amiss and would soon restart 102,000 pending foreclosures. On Sunday, the bank acknowledged that it had in fact found errors in its filings, and would resume foreclosures only in a deliberate manner as new and corrected paperwork was submitted to the courts. October 26, 2010
Mortgage Modifications Slow in SeptemberEven as banks, borrowers and regulators battle over how much faulty documentation by lenders should impede foreclosures, fresh evidence came Monday that the housing market remained very wobbly. Only 28,000 defaulting borrowers received permanent loan modifications in September, the Treasury Department said. That was the lowest number since last fall when the program to help struggling homeowners stay in their homes was just getting started. October 26, 2010
Apartments are a Good Investment for SomeJust as there have been massive price drops for single-family homes in the past three years, there have been big price declines for apartment buildings. That suggests that it’s a good time for investors who want to be landlords to start buying. But as with all investments, the story isn’t quite so simple. Investors who thought that a tsunami of dirt-cheap multifamily properties would wash over the U.S. market in the past two years have been largely disappointed. The economic distress that led to lower prices was limited to certain places and property types, says Hessam Nadji, managing director at real estate investment services firm Marcus & Millichap. “The pain was concentrated where we had gross overbuilding in overall housing: Florida, Phoenix, Las Vegas, Southern California, and to some degree, smaller markets like Tucson, Charlotte and Atlanta.” October 26, 2010
New York Requires Lawyers to Sign Off on All ForeclosuresThe chief judge of New York’s courts implemented a rule Wednesday requiring every lawyer handling a foreclosure to sign a form verifying that all paperwork in the case is accurate. Attorneys already have an obligation to ensure that the documents they present to the court are valid, but New York Chief Judge Jonathan Lippman said having them sign something affirming that all papers got a proper review will hold them accountable like never before. October 22, 2010
Fannie, Freddie Bailout to Cost Taxpayers $154 BillionThe government bailout of mortgage giants Fannie Mae and Freddie Mac likely will cost taxpayers $154 billion — somewhat more than originally anticipated but less than recent worst-case projections, according to government estimates released Thursday. Since the government-sponsored mortgage giants already have received $135 billion in Treasury Department funds, they likely would draw another $19 billion by 2013 to offset losses from the mortgage crisis. October 22, 2010
HUD CHARGES WISCONSIN PROPERTY MANAGERS WITH DISCRIMINATING AGAINST A FAMILY BECAUSE THEY HAVE CHILDRENThe U.S. Department of Housing and Urban Development (HUD) today announced that it has charged Sharlene and Jerald Kuiper, managers of a three-bedroom duplex apartment in Outagamie County, Wisconsin, and the owner of the apartment, Kuiper Family Trust, with violating the Fair Housing Act by refusing to show an available apartment to a family with children. HUD’s charge alleges that the Kuipers falsely asserted that the unit was unavailable for viewing when it was, offered to show units only after families without children rejected them, and made discriminatory statements demonstrating a preference for renters without children. October 22, 2010
HUD CHARGES FLORIDA LANDLORDS WITH DISCRIMINATING AGAINST AFRICAN-AMERICAN FAMILYThe U.S. Department of Housing and Urban Development (HUD) today announced that it is charging the owners of a single-family home in Gibsonton, Florida with violating the Fair Housing Act for engaging in discriminatory housing practices, including reneging on their agreement to rent the house to a mother and her children because they are African American. HUD’s charge also alleges that the owners used racial slurs when referring to and addressing the family. October 22, 2010
HUD CHARGES MISSISSIPPI PROPERTY MANAGER AND OWNER WITH RACE DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) today announced that it is charging Vicksburg, Mississippi, rental property owner Richard Cowart and his property manager, Janie Kelly, with violating the Fair Housing Act by refusing to renew the lease of a white tenant at Shamrock Apartments because the tenant associated with African Americans and has a biracial daughter. The HUD charge also alleges the property manager made discriminatory statements about renting to African Americans and tenants associating with African Americans.　 October 22, 2010
Obama Official Says Banks Can Restart ForeclosuresPresident Barack Obama’s top housing official said Wednesday that lenders are within their rights to resume foreclosures this month despite allegations that they erred in processing documents. But he said the banks could face fines if found to have broken the law. Two big lenders —Bank of America and Ally Financial’s GMAC Mortgage unit — are restarting foreclosures after halting them temporarily. They had frozen those cases amid allegations that employees signed but didn’t read foreclosure documents that may have contained errors. The companies say they’re fixing the problems in the documents. October 22, 2010
Foreclosure Crisis Puts Wall Street Reform Legislation to The TestThe foreclosure problems that have unfolded in recent weeks present a test of whether financial regulators can respond more cohesively and aggressively to an emerging problem than they did to the subprime crisis three years ago. The Wall Street reform legislation that was passed over the summer created new procedures for financial policymakers to coordinate their response to big, overarching risks like this one. So far, officials at the Treasury Department, federal bank regulators and housing-related agencies say they are in frequent contact, swapping information about the crisis that has stemmed from faulty documentation behind many home foreclosures. October 22, 2010
Major Title Insurer Insists Lenders Vouch for Foreclosure PaperworkThe country’s largest title insurer said Wednesday that banks and other lenders must vouch for the accuracy of their mortgage documents before the firm will write insurance for a foreclosure sale. Fidelity National Financial announced the policy change - the strongest move yet by a title insurer to protect itself from possible losses - in a memo to its employees and agents, according to Peter Sadowski, the company’s chief legal officer. Recent reports of flawed paperwork have particularly worried title insurance companies, which are critical in the home-buying process. Lenders require buyers to buy coverage in case there is a dispute over who owns a home. October 22, 2010
Florida Activists Read between the Lines on Foreclosure PaperworkNearly a year before the national furor over foreclosures began, Lisa Epstein, a nurse, ran into three other amateur sleuths who separately were investigating shoddy practices at mortgage companies. While meeting for the first time in November at an old one-story law office in this city, the four strangers compared notes and began to piece together the scope of the problem: All over the United States, big financial firms might have been using fraudulent paperwork to evict struggling borrowers from their homes. Now tight-knit, the group is largely responsible for setting off the growing firestorm over foreclosures. October 22, 2010
Federal Agencies Investigate Mortgage ForeclosuresThe Obama administration said Tuesday that it has started its own investigation into mortgage foreclosures, joining the nation’s 50 state attorneys general in probing the alleged use of faulty or fraudulent documents to seize tens of thousands of homes. White House press secretary Robert Gibbs released a statement Tuesday morning saying two federal agencies “have undertaken their own regulatory and enforcement investigation into the foreclosure process.” October 22, 2010
30-year Mortgage Rates Inch Off Lows, Average 4.21%Rates on 30-year fixed mortgages rose slightly from their lowest level in decades, inching up to a national average of 4.21%. Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans was up from 4.19% the previous week. That was the lowest level on records dating back to 1971. The average rate on 15-year fixed loans rose to 3.64%. That was up from 3.62%, the lowest weekly average on records dating back to 1991. October 22, 2010
Ex-worker: Florida Law Firm Ran ‘Foreclosure Mill’Employees at a law firm that handled foreclosures for Freddie Mac and Fannie Mae changed thousands of documents and hid them in a room when company officials came to conduct audits, according to a sworn statement released Monday by the Florida attorney general. The law office of David Stern also enjoyed a cozy relationship with Freddie Mac and Fannie Mae, paying for hotels, rental cars and food for officials from the two federally chartered companies when they visited the law firm, according to a statement by Kelly Scott, a former legal assistant at the firm.Freddie Mac and Fannie Mae denied the assertion about having expenses paid, which would violate policy, and said they have stopped referring new foreclosure cases to the law firm. October 22, 2010
So You Bought a Foreclosed Home; Now What?It seemed too good to be true: You bought a house in foreclosure at a fraction of the former price. Maybe you even knocked out a wall or two and remodeled with all the money you saved. But now thousands of foreclosures around the country may be invalid because of bank paperwork problems. Should you worry? “Anyone who’s purchased a foreclosed property in the last three years should really be concerned,” says George Babcock, a Providence, R.I., attorney who represents homeowners who have been foreclosed on. October 22, 2010
Avoid Foreclosure Market Until the Dust SettlesAre you out of your mind to even consider buying a foreclosed property right now? Todd Phelps and Paul Whitehead didn’t think they were last month when they were the winning bidders in a foreclosure auction on the steps of the main Riverside, Calif., county courthouse. They thought they had won the lottery. For years, they had been living in a rent-controlled apartment in Santa Monica and waiting out the housing bubble in hopes of buying a weekend getaway in the Palm Springs area. And on Sept. 10, they thought they had finally done it, getting a house for $137,000. Several days later, however, they realized that what they had really bought was a second mortgage from Wachovia on a house that still had an enormous, unpaid primary loan. In other words, they did not own the home free and clear, and the auction company wouldn’t give back their $137,000 check. October 22, 2010
Answers to Your Questions on the Foreclosure Crisis, Part IIEarlier this week we asked you to submit questions for Thomas A. Lawler, a housing expert, about the foreclosure crisis. Mr. Lawler is a founder of Lawler Economic & Housing Consulting, and a former director and senior vice president at Fannie Mae. We posted his first set of responses yesterday; here is another. October 22, 2010
Battle Lines Forming in Clash Over ForeclosuresAbout a month after Washington Mutual Bank made a multimillion-dollar mortgage loan on a mountain home near Santa Barbara, Calif., a crucial piece of paperwork disappeared. But bank officials were unperturbed. After conducting a “due and diligent search,” an assistant vice president simply drew up an affidavit stating that the paperwork — a promissory note committing the borrower to repay the mortgage — could not be found, according to court documents. The handling of that lost note in 2006 was hardly unusual. Mortgage documents of all sorts were treated in an almost lackadaisical way during the dizzying mortgage lending spree from 2005 through 2007, according to court documents, analysts and interviews. October 22, 2010
Maryland’s High Court Approves Foreclosure ReviewMaryland courts got the go-ahead Tuesday to conduct sweeping reviews of possibly thousands of foreclosure cases to root out those with problematic or fraudulent documentation, while the federal government separately announced investigations into national foreclosure practices. The Court of Appeals, the state’s highest court, approved emergency rules to allow the hiring of part-time examiners to scrutinize paperwork. Thousands of files might need to be examined, said Alan M. Wilner, a retired judge who heads a committee that recommends rule changes to the Court of Appeals. He predicted “massive audits.” October 22, 2010
Foreclosure-document Mess Growing, FBI Now involvedThe foreclosure-document crisis just keeps on growing, and now the FBI is getting into the fray. A federal law enforcement official told the Associated Press that the agency is in the initial stages of trying to determine whether the financial industry may have broken criminal laws in the mortgage foreclosure crisis. The official said the question is whether some in the industry were acting with criminal intent or were simply overwhelmed by events in the wake of the housing market’s collapse. The official spoke on condition of anonymity because the investigation is just getting under way. October 22, 2010
Lack of Title Insurance Could Slow Sales of Foreclosed HomesForeclosed homes could get harder to buy now that one of the nation’s largest title insurance companies has stopped insuring titles to homes foreclosed by JPMorgan Chase and GMAC Mortgage.Old Republic National Title Insurance said last week that it will no longer insure title to any property foreclosed by Chase or GMAC after both mortgage servicers halted foreclosure sales in 23 states and said they are reviewing legal filings that may not have been properly verified or notarized. Most lenders won’t issue a mortgage without title insurance, which ensures buyers have clear title to the property and protects theirs and lenders’ financial interests if ownership disputes arise. October 5, 2010
Bank Exec Checked Only Date on Foreclosure DocsA Wells Fargo executive has acknowledged that he verified only the dates on the up to 150 foreclosure documents he signed daily. Wells Fargo Vice President Herman John Kennerty made his admission in a May deposition involving a Washington state homeowner. He said he relied on co-workers to ensure that other information in the documents was correct. Three other lenders, Ally Financial’s GMAC Mortgage unit, Bank of America and JPMorgan Chase have halted tens of thousands of foreclosures after similar practices became public. October 5, 2010
100 PERCENT OF RECOVERY ACT GREEN RETROFIT FUNDS ATWORK, CREATING JOBSToday, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan announced a Recovery Act milestone for the Department’s Green Retrofit Program: 100 percent of the program’s $250 million in grants and loans has been obligated by the September 30, 2010, statutory deadline, marking a significant achievement for a program that was created only eighteen months ago. The entire $250 million, awarded nationally, is now dedicated to developments to provide nearly 20,000 homes around the country with energy efficient upgrades. In addition to the green improvements, the green retrofit grants and loans will also create jobs, and reduce utility consumption by more than 25 percent on average, saving these low-income properties $12 million annually on utility bills. October 5, 2010
HUD CHARGES NEW YORK LANDLORD WITH DISCRIMINATING AGAINST A TENANT WITH DISABILITIESThe U.S. Department of Housing and Urban Development (HUD) today announced that it is charging Heatherwood-Norwich Gate LLC, the owner and manager of an apartment complex in East Norwich, New York, with violating the Fair Housing Act for allegedly denying a resident with disabilities an accessible parking space he requested. HUD’s charge also alleges that the complex refused to modify its first-come, first-served parking policy to accommodate the resident’s request. October 5, 2010
One Positive in Detroit Market: Jobs are StabilizingDetroit, an auto industry town weighed down by abandoned factories and foreclosed homes, has a housing market that’s stuck in park. Even the exclusive suburbs like Grosse Pointe, Mich., have not avoided unemployment and foreclosures. Prices have always been much higher in the suburbs, but since the housing bubble burst, they have fallen there, too. Many homes in Detroit still cost less than a new car. And the home buyer tax credit didn’t attract many buyers. September 30, 2010
More Families, Friends Move in TogetherThe Grundy family seemed to be headed down the conventional path followed by American families: Daughter goes to college, graduates, gets a job and her own apartment. Then something happened.“She lost her job,” Vel Grundy says about daughter Monika, 25. “She kept looking and got very, very discouraged. She moved back home.” Grown children returning home. Brothers and sisters moving in together. Families taking in grandparents. Friends living in the basement. Fueled by the dismal economy and high unemployment, more Americans — friends and families — are doubling up. September 30, 2010
Foreclosure Sales Pick Up Speed, Drag Down Home PricesForeclosures accelerated in the second quarter, driving down home prices and accounting for nearly half of all sales in several states. Nationally, homes sold at foreclosure accounted for 24% of all residential sales in the second quarter of 2010, RealtyTrac reports. The average price of properties sold while in some stage of foreclosure was more than 26% below the average for properties not in the foreclosure process. September 30, 2010
JPMorgan Chase Suspends Certain ForeclosuresJPMorgan Chase (JPM) said Wednesday it is suspending certain foreclosures as it reviews the legitimacy of certain affidavits in those cases. The bank is the second major company to take such action this month, underscoring a growing legal problem for servicers and lenders. The issue could stall an already overloaded foreclosure process, and may mean some homeowners lost their homes illegally.JPMorgan spokesman Tom Kelly said Wednesday that employees signed some affidavits about loan documents without personally verifying the files. These affidavits identify who holds the original mortgage note in foreclosure cases. September 30, 2010
Historic Lows in Mortgage Rates Fail to Motivate Buyers, OwnersConsumers are practically shrugging off the lowest mortgage rates in history. They have their reasons for hesitating to buy homes or to refinance existing mortgages, freeing up cash to spend:Eleven million residential properties are worth less than the mortgages on them. Nearly 15 million Americans are unemployed. Millions more are worried about their jobs; and still more are determined to cut their spending and pay down their debts, ignoring the siren song of cheap money. September 30, 2010
Baltimore: Ground-rent Owners Rush to RegisterTens of thousands of ground rents could be wiped out if they weren’t registered by Wednesday, when state officials were overwhelmed with owners racing at the last minute to meet the deadline. The state Department of Assessments and Taxation — which estimates that ground rents exist on about 115,000 residential properties — said it processed applications for 70,000 by Wednesday morning and was swamped by owners dropping off paperwork on the final day of the three-year application window. Some left computer disks with hundreds of applications. More registrations were likely mailed and will arrive in a few days. It could be several months before everything is processed, warned Robert E. Young, the agency’s acting deputy director. September 30, 2010
HUD TO PROVIDE PERMANENT HOUSING TO 550 HOMELESS VETERANS ACROSS THE U.S.U.S. Housing and Urban Development Secretary Shaun Donovan announced today that HUD will provide $4.3 million to local housing authorities in 19 states to provide permanent housing for 550 homeless veterans in America. The funding is provided through The Veterans Affairs Supportive Housing Program (HUD-VASH), a coordinated effort by HUD, the U.S. Department of Veterans Affairs (VA), and local housing authorities to provide permanent supportive housing for veterans experiencing homelessness. For a local breakdown of the rental vouchers announced today, visit HUD’s website. September 30, 2010
Housing Cost Unaffordable for More Than Half of RentersMore renters found housing unaffordable last year as incomes fell while costs increased, a one-two punch that squeezed lower-income households in particular. Affordability for homeowners, however, was stable. The share of renters spending 30% or more of their household income on housing costs — the threshold set by the government to determine if housing is unaffordable — rose to 51.5% from about 50% in 2008, according to 2009 Census data released Tuesday. September 29, 2010
Historic Lows in Mortgage Rates Fail to Motivate Buyers, OwnersConsumers are practically shrugging off the lowest mortgage rates in history. They have their reasons for hesitating to buy homes or to refinance existing mortgages, freeing up cash to spend:Eleven million residential properties are worth less than the mortgages on them. Nearly 15 million Americans are unemployed. Millions more are worried about their jobs; and still more are determined to cut their spending and pay down their debts, ignoring the siren song of cheap money. September 29, 2010
Home Prices Rise, but That May ChangeDon’t take the latest snapshot of U.S. home prices too seriously. The Standard & Poor’s/Case-Shiller 20-city index released Tuesday ticked up in July from June. But the gain is merely temporary, analysts say. They see home values taking a dive in many major markets well into next year. That’s because the peak home-buying season is now ending after a dismal summer. The hardest-hit markets, battered by foreclosures, are bracing for more homes sold at foreclosure or through short sales. A short sale is when a lender lets a homeowner sell for less than the mortgage is worth. September 29, 2010
Mistakes Widespread on Foreclosures, Lawyers SayPaperwork mistakes that led one of the nation’s largest mortgage servicers to halt foreclosure evictions in 23 states last week have happened elsewhere and affect tens of thousands of foreclosures, say lawyers for homeowners. Ally Financial’s GMAC Mortgage (GJM) acted after manager Jeffrey Stephan gave a statement to opposing lawyers that he had signed off on legal documents for 10,000 foreclosure papers a month without following verification procedures. Those lawyers say they’ve obtained similar statements from employees at JPMorgan Chase (JPM) and OneWest Bank — formerly IndyMac Federal Bank— that court papers weren’t properly verified before being filed. September 29, 2010
Ancient Italian Town Now Has Wind at Its BackThe towering white wind turbines that rise ramrod straight from gnarled ancient olive groves here speak to something extraordinary happening across Italy. Faced with sky-high electricity rates, small communities across a country known more for garbage than environmental citizenship are finding economic salvation in making renewable energy. More than 800 Italian communities now make more energy than they use because of the recent addition of renewable energy plants, according to a survey this year by the Italian environmental group Legambiente. Renewable energy has been such a boon for Tocco that it makes money from electricity production and has no local taxes or fees for services like garbage removal. September 29, 2010
Lost in the System That Took the HouseLuis Fernandez’s foreclosure documents never looked quite right. Critical papers regarding his Orlando home were missing dates, and some signatures appeared to him to be forged. The mortgage had been sold so often - including once in the middle of the foreclosure process - that at times it was hard to tell which company was trying to seize the house. He challenged the foreclosure in court but failed. Now, as Fernandez seeks to appeal his eviction and get his home back, he has learned that the law firm representing the banks is under investigation for fabricating foreclosure documents. And his file was signed by Jeffrey Stephan, a document processor who made headlines last week for approving what could be hundreds of thousands of cases without verifying whether the foreclosures were justified. September 29, 2010
Canadians Become Top Out-Of-State Homebuyers in Ariz.The collapse in housing prices and a strong Canadian dollar are luring north-of-the-border buyers to Arizona and other states where the weather is warm and the housing cheap. Canadians surpass Californians this year as top out-of-state buyers of Phoenix-area real estate. The Canadian dollar is gaining, up from an average of 80 cents on the U.S. dollar in 2005 to 97 cents last week. At the same time, home prices in the Phoenix area have dropped about 50% from their peak in early 2007. September 24, 2010
More Than Half Seeking Mortgage-relief Have Fallen Out of ProgramThe Obama administration’s flagship mortgage-relief effort is failing to ease the foreclosure crisis as more than half of those who have enrolled have fallen out of the program. As of August, approximately 680,000 homeowners who applied to get their mortgage payments lowered, or about 51%, have been disqualified, the Treasury Department said Wednesday. That’s up from about 48% in July. The report gives ammunition to critics who say the program has failed to slow the tide of foreclosures. They say it’s better to let troubled homeowners lose their homes and home prices fall. September 23, 2010
Warren and Geithner Tackle Mortgage FormsThe Obama administration is promising to move quickly to simplify the paperwork consumers receive when taking out a home mortgage. Obama adviser Elizabeth Warren and Treasury Secretary Timothy Geithner said Tuesday that the administration is committed to implementing, as soon as possible, several consumer protections that are part of the sweeping overhaul of the financial system that Congress passed in the summer. Geithner and Warren made the comments as part of a forum they held at the Treasury Department with a number of consumer advocacy groups, financial literacy counselors and representatives of the mortgage industry to receive input on ways to simplify mortgage disclosure forms. September 23, 2010
HUD OFFERS $19 MILLION TO CLEAN UP HAZARDS IN HOUSINGThe U.S. Department of Housing and Urban Development is offering $19.6 million in grants to prevent and correct housing-related health and safety hazards in low-income housing and to support programs for the control of asthma among residents in federally assisted multifamily housing. HUD is making these grants available through its Healthy Homes Production, Asthma Interventions in Public and Assisted Multifamily Housing, Lead Technical Studies, and Healthy Homes Technical Studies grant programs. September 23, 2010
Ally Financial legal Issue With Foreclosures May Affect Other Mortgage CompaniesSome of the nation’s largest mortgage companies used a single document processor who said he signed off on foreclosures without having read the paperwork - an admission that may open the door for homeowners across the country to challenge foreclosure proceedings. The legal predicament compelled Ally Financial, the nation’s fourth-largest home lender, to halt evictions of homeowners in 23 states this week. Now it appears hundreds of other companies, including mortgage giants Fannie Mae and Freddie Mac, may also be affected because they use Ally to service their loans. September 23, 2010
Condo Ruling May Let Many Cancel DealsA federal judge ruled on Wednesday that the Related Companies, the sponsor of a luxury condominium building on the Upper East Side, must return a $510,000 buyer’s deposit, a decision that lawyers said could chill development in New York and across the country. Judge P. Kevin Castel of Federal District Court in Manhattan said an affiliate of Related had failed to comply with an obscure federal law known as the Interstate Land Sales Full Disclosure Act. That entitled the buyers, Vasilis Bacolitsas, a Greek shipping executive, and Sofia Nikolaidou, to rescind their sales contract for a $3.4 million apartment at the Brompton, at 205 East 85th Street, and to get back their deposit, plus interest. September 23, 2010
Amid Mountain of Paperwork, Shortcuts and Forgeries Mar Foreclosure ProcessThe nation’s overburdened foreclosure system is riddled with faked documents, forged signatures and lenders who take shortcuts reviewing borrower’s files, according to court documents and interviews with attorneys, housing advocates and company officials. The problems, which are so widespread that some judges approving the foreclosures ignore them, are coming to light after Ally Financial, the country’s fourth-biggest mortgage lender, halted home evictions in 23 states this week. September 23, 2010
A Property-tax Reminder for New BuyersA colleague of mine had an unfortunate new-homeowner surprise this summer: She got her first full fiscal year property-tax bill, and the monthly cost is a lot higher than she expected based on the taxes she paid for part of the last fiscal year. She’s hardly the first to be caught off guard, thanks to the state’s complex Homestead tax credit. I did a post recently that explains how you can calculate your property-tax bill in advance to avoid a shock come July 1. But here are more details on how the Homestead credit works, since it seems to be a frequent point of confusion. September 23, 2010
Squatters Moving Into Upscale NeighborhoodsOn the big screen, actor Randy Quaid may be best known for his mooching, move-in-and-never-leave character “Cousin Eddie” from National Lampoon’s “Vacation” films. Last weekend, he allegedly followed his own Hollywood script. Quaid and his wife, Evi, were arrested Saturday after they were found living in a guest house on a million-dollar, Montecito, Calif., property Quaid once owned. While Quaid claims his name remains on the deed, the actor and his wife were jailed until they were able to post $10,000 bail. Quaid is hardly alone in his distinctly post-bubble legal trouble. Such high-end “mansion squatting” has becomg an increasingly visible irritant in or near Seattle, St. Louis, Chicago and Los Angeles and probably elsewhere, industry experts say. September 23, 2010
Energy States, Idaho Leading Comeback from RecessionTexas, North Carolina, Idaho and a handful of other states are leading the nation’s crawl out of the worst recession since the 1930s, a USA TODAY analysis finds. Since the recession officially ended in June 2009, a group of about 10 states that have outperformed the nation almost continuously for 25 or more years again is generating new income at a faster pace than the rest of the nation. “Our pipeline of companies looking to expand or relocate here is the biggest it’s been in a decade,” says Bibiana Nertney of the Idaho Department of Commerce. September 21, 2010
HUD ALLOCATES $50 MILLION IN DISASTER RECOVERY GRANTS TO THREE STATES SEVERELY IMPACTED BY STORMS AND FLOODINGU.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today allocated $50 million in disaster funding slated for Kentucky, Rhode Island, and Tennessee. The supplemental disaster funding, provided through HUD’s Community Development Block Grant (CDBG) Program, will help support the long-term disaster recovery and critical infrastructure needs in each state and local government receiving funds. September 21, 2010
Homebuilders’ Confidence Stuck at 18-month LowHomebuilders’ confidence in the housing market stayed this month at the lowest level in 18 months, and more worry that the traffic of potential buyers is falling. The National Association of Home Builders said Monday that its monthly index of builders’ sentiment was unchanged in September at 13. Readings below 50 indicate negative sentiment about the market. The last time the index was above 50 was in April 2006. September 21, 2010
Solar Power in Bangladesh Used to Empower People in Poor, Rural AreasIn Bonn, Germany this week are representatives of the Bangladeshi organization Grameen Shakti, which makes loans and offers technical assistance to allow poor, rural people to install solar power in their homes, often granting access to electricity for the first time in their family’s history. They have helped install more than 110,000 systems, often with a woman hired to maintain the system, creating jobs, empowering women, and raising the standard of living. September 21, 2010
Painting Roofs White Promoted As Way to Fight Global WarmingThe idea of painting roofs white is catching on across the country; Energy Secretary Steven Chu has said it could contribute to the fight against global warming. “Cool roofs are one of the quickest and lowest-cost ways we can reduce our global carbon emissions and begin the hard work of slowing climate change,” said Chu in July, while announcing that Department of Energy buildings would be painted white wherever possible. While white roofs keep homes cool in summer by letting less heat in, they have little impact on winter heating bills, according to the Cool Roof Rating Council, a non-profit group created in 1998 to research and implement the technology. That’s generally because the sun is less intense in winter, the group said, and less important as a heat source. The roofs do not let any more heat escape than other roofs, it said. September 20, 2010
Builders Install Solar Systems So Owners Can Lease ThemMore home builders are putting solar panels on new homes and have come up with a novel way of making solar more affordable for buyers. Builders Lennar and Toll Bros. recently opened new home developments in California in which solar panels are included at no upfront cost to buyers. Solar companies own the systems, and the new homeowners lease them from the company. Solar companies have offered solar lease programs for owners of existing homes for several years. Now, the option is spreading to new homes. September 20, 2010
More Employee-assistance Calls Seek Housing AidHousing problems have for the first time replaced child care as the No. 1 subject of employee-assistance calls, a new report says. Of more than 25,000 calls from January to June 2010, 41% were related to moving. Of those, 77% sought help finding an apartment, and two-thirds of those seeking apartments said it was “foreclosure related,” according to ComPsych, which has tracked employee-assistance calls since 1984. The company, which provides employee-assistance programs to 13,000 organizations with 33 million workers worldwide, will release the report Thursday. September 20, 2010
Homes Lost to Foreclosure Up 25% From Last AugustLenders took back more homes in August than in any month since the start of the U.S. mortgage crisis. The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac said Thursday. In all, banks repossessed 95,364 properties last month, up 3% from July and an increase of 25% from August 2009, RealtyTrac said. September 20, 2010
Can You Steal a Whole Building? Thieves Cart Off St. Louis BricksIt is a crime that has increased with the recession. Where thieves in many cities harvest copper, aluminum and other materials from vacant buildings, brick rustling has emerged more recently as a sort of scrapper’s endgame, exploited once the rest of a building’s architectural elements have been exhausted. “Cleveland is suffering from this,” said Royce Yeater, Midwest director for the National Trust for Historic Preservation. “I’ve also heard of it happening in Detroit.” September 20, 2010
More Rent Relief for AIDS Patients Is VetoedGov. David A. Paterson has vetoed a bill that would have offered more rent relief to roughly 11,000 New Yorkers with H.I.V. or AIDS, his office announced on Sunday, saying the proposed law would strain the state’s already imperiled finances because it was not clear where the money to pay for it would come from. “This is my most difficult veto,” Mr. Paterson said in a statement. “I recognize, sadly, the history of the inadequacy of services government has brought to bear for those with H.I.V./AIDS.” But he added, “I have pledged not to impose unfunded mandates on cash-strapped localities, and to prevent the state from taking on additional financial burdens outside the budget process without an identified funding source.” September 20, 2010
Medical, Health Buildings Bright Spot in Commercial Real Estate MarketWhile the commercial real estate market as a whole experiences some of the highest vacancy rates in years and struggles to rebound, developers and brokers are seeing a bright spot in the demand for buildings that can house medical offices. The health care field is taking advantage of leasing deals and in some instances locating to desirable spaces that might not be available in boom times. September 20, 2010
Home Mortgage Modification Snags Spark LawsuitsAnthony and April Soper’s financial troubles were only starting last October when they applied for a mortgage adjustment through the Obama administration’s Home Affordable Modification Program.Bank of America, their mortgage servicer, put them on a HAMP trial payment plan in December that cut their monthly payments from about $4,000 a month to about $3,130 a month. They say they made their reduced monthly payments early and did everything else that was asked of them. But they didn’t get a permanent modification, and they say they don’t know why. September 14, 2010
HUD RELEASES FIRST COMPREHENSIVE HOUSING SURVEY OF NEW ORLEANS METROPOLITAN AREA SINCE HURRICANE KATRINAIn the five years since Hurricane Katrina struck the Gulf coast, the New Orleans metropolitan area lost 75,000 housing units or nearly 13 percent of its housing stock. In addition, the median monthly cost of housing rose by nearly 33 percent, from $662 in 2004 to $882 in 2009. These are among the key findings of a new housing survey presented today by the U.S. Department of Housing and Urban Development. September 14, 2010
Stuyvesant Town Tenants Are Offered Co-op PlanTwo investors vying for control of the financially troubled Stuyvesant Town and Peter Cooper Village complexes in Manhattan have proposed an unprecedented partnership with the 25,000 tenants there that would create an affordable housing co-op and allow the investors to reap a profit. A number of issues would have to be decided before the partnership is finalized, including who controls the fate of the buildings. But if it is successful, the investors hope to outmaneuver a rival lending group and conduct the largest co-op conversion in the country’s history at what is still considered to be a real estate gem: an 80-acre complex in the heart of Manhattan that has historically been an affordable enclave for the middle class. September 14, 2010
Constellation’s renewable energy business growingConstellation Energy Group is amassing a client list as diverse as spicemaker McCormick & Co., the New York Stock Exchange, the National Baseball Hall of Fame and Museum and the Denver International Airport. The Baltimore energy company put up solar panels on McCormick’s Hunt Valley distribution center and spice mill and is working on a second project at its Belcamp plant. Constellation is selling “renewable energy certificates” to the stock exchange and baseball museum.And Constellation plans to announce today the development of a 4.4-megawatt solar facility at the Denver airport, enough to power 634 homes a year. September 14, 2010
Jesse Jackson Slams Urban FarmingThe Rev. Jesse Jackson dismissed urban farming as “cute but foolish” and joked about the recent theft of his car during an appearance today before the City Council. One day before Mayor Dave Bing is set to talk to the council about his vision for reshaping Detroit, Jackson told the panel that the city needs more industry, such as a $303 million battery plant in Holland that will supply electric vehicles to General Motors and Ford. “The governor, a Democrat, brags about Michigan getting a battery plant, built north of Grand Rapids, as opposed to Detroit, the engine that drives the state,” Jackson said. September 8, 2010
FHA Asks Lenders to Forgive 10% of ‘Underwater’ MortgagesThe Obama administration is trying to jump-start its sputtering attempts to tackle the foreclosure crisis with an effort to assist homeowners who owe more on their properties than their homes are worth. Starting Tuesday, the Federal Housing Administration will permit lenders to give these borrowers refinanced loans backed by the government. The lenders will be required to forgive at least 10% of the original mortgage amount. Investors who have control over the mortgages as part of their large portfolios will select which borrowers are invited to participate. September 8, 2010
FHA SHORT REFINANCE OPTION NOW AVAILABLEIn an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today will begin providing an additional refinancing option for underwater borrowers. Originally announced in March, this enhancement of Federal Housing Administration (FHA) refinance program will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lien holders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage. September 8, 2010
The Bears and the State of HousingOf all the uncertainties in our halting economic recovery, the housing market may be the most confusing of all. At times, real estate seems to be in the early stages of a severe double dip. Home sales plunged in July, and some analysts are now predicting that the market will struggle for years, if not decades. Others argue that the worst is over. As Karl Case, the eminent real estate economist (and the Case in the Case-Shiller price index), recently wrote, “Buying a house now can make a lot of sense.” September 8, 2010
Hope for a Bronx Tower of Hip-Hop LoreHousing advocates, tenants and elected officials have declared a victory in the Bronx with the announcement of the sale of the mortgage on an apartment building that has been called the birthplace of hip-hop. The sale, which was financed with significant help from city agencies, was the first step toward bringing in new owners after what tenants called an era of neglect. The group trying to take over the building, Workforce Housing Advisors, pledged to address the many violations and improve maintenance at the building, which had been highlighted by elected officials and tenant advocates as an emblem of New York’s affordable housing crisis. September 8, 2010
Housing Woes Bring a New Cry: Let the Market FallThe unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid. Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market, using tax credits, mortgage modification programs, low interest rates, government-backed loans and other assistance intended to keep values up and delinquent borrowers out of foreclosure. The goal was to stabilize the market until a resurgent economy created new households that demanded places to live. September 8, 2010
As Stadiums Vanish, Their Debt Lives OnIt’s the gift that keeps on taking. The old Giants Stadium, demolished to make way for New Meadowlands Stadium, still carries about $110 million in debt, or nearly $13 for every New Jersey resident, even though it is now a parking lot. The financial hole was dug over decades by politicians who passed along the cost of building and fixing the stadium, and it is getting deeper. With the razing of the old stadium and the Giantsand the Jets moving into their splashy new home next door, a big source of revenue to pay down the debt has shriveled. September 8, 2010
Bing Tells City Council of Plan to Revitalize DetroitDetroit Mayor Dave Bing and members of his administration this morning are addressing City Council about efforts to strengthen the core of city neighborhoods, improve the delivery of services and attract businesses to Detroit. Bing began his presentation by stating that the 12-18 month initiative reaches far beyond land use, though the city has about 60,000 vacant parcels and has experienced a 60% population decline over the last four decades. September 8, 2010
Group Gets Homeless on Feet and RunningBack on My Feet is a support group for the homeless, many of them on drugs and alcohol, that is meant to help them get their lives in order by instilling discipline and improving their health and self-esteem.

The program, which began in Philadelphia, is going national. It started groups in shelters and transitional housing in Baltimore last year and Washington and Boston this year. It plans to be in Chicago, Dallas, Atlanta and Minneapolis before 2012. The program began three years ago when marathoner Anne Mahlum regularly ran past a homeless shelter in Philadelphia and began talking to the guys hanging out in the front. September 7, 2010
Ginnie Mae Mortgage-backed Securities Have A Solid RecordThree years after the start of the credit crisis sparked by mortgage-backed securities, a top-performing investment has been … mortgage-backed securities. But only those backed by the government or packaged by Fannie Mae or Freddie Mac. The average mutual fund that invests in mortgage-backed securities (MBS) issued by Ginnie Mae has gained 24.8% the past three years, including reinvested interest, vs. 20.2% for funds that invest in Treasury securities, according to Lipper. The Standard & Poor’s 500-stock index has fallen 20.8% since Aug. 31, 2007. September 7, 2010
Donovan Not Ready to ‘Declare Victory’ on U.S. Housing ProgressHome sales, showing new signs of life two years after the credit crunch drove down home prices, must gain more ground before policy makers can “declare victory,” Housing and Urban Development Secretary Shaun Donovan said. “It is too early to certainly declare victory,” Donovan said in an interview for Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend. He said prices picked up over the last year and Americans added $1.1 trillion in equity to their homes. September 7, 2010
Deciding to Walk Away From Mortgage and HomeHundreds of thousands of Americans — perhaps as many as one in eight borrowers behind on payments in recent months — have done the same, researchers estimate. Criticized by some as immoral, hailed by others as righteously logical, these “strategic defaulters” have launched a national debate about the right and wrong of personal finance in the wake of the worst housing slump since the Depression. The moving truck pulled away from the curb, loaded with Wallace Farmer’s possessions. He locked the front door for the last time and left town — clutched by a long-simmering anger that finally gave way to relief. Farmer didn’t sell his Baltimore house, worth far less than the $180,000 he paid in 2006. And he didn’t lose it to foreclosure. He walked away from the rowhouse and the mortgage. It’s the bank’s problem now. September 7, 2010
Survey: Mortgage Closing Costs 37% HigherA new federal rule this year requiring mortgage lenders to give borrowers reliable estimates of closing costs appears to be working — whether it’s also costing borrowers more money is uncertain. A recent survey by Bankrate.com found that, on average, origination and third-party fees on a $200,000 purchase mortgage added up to $3,741 — a 37% jump over last year’s average of $2,739. The fees can include appraisals, credit reports, a closing or settlement attorney and surveys. August 31, 2010
Using Private Eyes to Keep Track of TenantsIn a high-rent borough like Manhattan with plenty of rent-regulated apartments ripe for exploitation, real estate investigation has long been a big business. Private detectives say it has picked up in the past year as some New Yorkers have tried to find extra money by moving out of their apartments and subletting to other renters for more than they are paying, which is not allowed. And, of course, there are landlords pressed for cash, trying to root out people who are using rent-controlled or rent-stabilized apartments illegally. This would allow the landlords to find new tenants and raise the rent by 20 percent or more under state housing law. During the speculation boom of the last decade, some large landlords were accused of using private investigators to harass legal tenants out of their apartments in order to raise rents to cover large mortgages and increase their profits. August 31, 2010
Community & Resistance After Katrina: Jordan Flaherty and Tracie Washington on the Fight to Save New OrleansDemocracy Now! President Obama visited New Orleans on Sunday and praised the recovery of the city and the resilience of its people five years after Hurricane Katrina. We talk to lifelong New Orleans resident and civil rights attorney, Tracie Washington, and Jordan Flaherty, a community organizer and author of Floodlines: Community and Resistance from Katrina to the Jena Six. August 31, 2010
Hurricane Katrina 5th Anniversary Ceremonies Mourn What is Lost, Rejoice at What is to BeWith prayers and the solemn tolling of bells, but also with second-line parades and the drumming of Mardi Gras Indians, New Orleanians throughout the region on Sunday took stock of their rebuilt lives in the five years since the worst event in the region’s history, and promised each other to keep the recovery going. Observances of the fifth anniversary of Hurricane Katrina and its levee failures entailed a complicated day-long inventory conducted as a light, steady rain drenched the landscape. The day was filled with equal parts gratitude, mourning, frustration and hope in the face of a mammoth rebuilding job started but not yet complete. August 30, 2010
Many FEMA Claims from Hurricane Katrina Remain OpenFive years after thousands of taxpayer-owned assets were laid to waste in the New Orleans area, local governments continue to haggle with FEMA over how much the feds will pony up to replace the critical infrastructure. That’s not to say that FEMA’s Public Assistance program, which reimburses local governments and nonprofits for repairs to disaster-damaged assets, hasn’t opened its wallet wide for the region. So far, FEMA has authorized $8.9 billion to restore thousands of properties across Louisiana that were wrecked by Hurricanes Katrina and Rita, from schools to police stations to water plants. About $5.7 billion of that has hit the streets. August 30, 2010
Mortgage Brokers are Becoming a Vanishing BreedMost of the mortgage brokers that seemed to populate every office building and commercial street in cities nationwide just five years ago have vanished. Ken Blaudow, owner of Indy Mortgage had 85 employees originating home loans in 2003. Now he has three and is about to give up his leased office in Castleton, Ind., and move his company into two bedrooms of his house. Much of the decline has come from the implosion of the housing sector since 2007. Prices and sales plunged during the recession. Foreclosures hit record highs almost everywhere. August 30, 2010
The Changing Landscape of the Lower Ninth WardBefore Hurricane Katrina, New Orleans’s Lower 9th Ward was home to an estimated 18,000 people. But five years later, only about a quarter of that number live in the hard-hit neighborhood. Andrew Curtis, a university researcher, leads a team of students and local community members that is documenting the substantial changes in the area. Take a tour of the evolving landscape of the Lower Ninth Ward and read what local residents and researchers have to say. August 30, 2010
Mapping the Recovery of New OrleansWhile New Orleans has not fully recovered from the effects of Hurricane Katrina, a local research group, GCR & Associates, estimates that up to 80 percent of the city’s population before the storm has returned. The group analyzed utility, sanitation, mail and voter activity statistics to track the number of people resettling in the city. Click below or on the map to get more details on resettlement patterns in New Orleans or one of four key neighborhoods. August 30, 2010
Equity in your home doesn’t translate to net worthI have my own spin to put on the news that sales of existing homes plunged 27 percent in July: Stop thinking of your home as your cash cow. In the past few decades, borrowers have heavily leveraged themselves by using their houses to buy the things they’ve wanted-cars, vacations, college educations, better kitchens or bathrooms. That’s one of the advantages of entering into a mortgage for a home: You can still use the home as collateral to borrow more money. But an estimated one in seven homeowners now has a home worth less than what they owe on their mortgages, and nearly 5 million need their home prices to rebound by 25 percent before they are back above water, according to a “State of the Nation’s Housing” report released this summer by the Joint Center for Housing Studies of Harvard University. August 30, 2010
Reluctant landlords in metro Detroit rent to pay mortgagesTom Youngblood Jr., 38, lived every landlord’s worst nightmare with his first rental — he learned all about eviction law when his tenant wouldn’t pay up. “She paid me the first month, and then October rolled around and she started giving me empty promises,” he said. “My first taste of it was tough.” The human resources director for Detroit Testing Laboratory in Warren is among hundreds of homeowners across metro Detroit becoming reluctant landlords because they can’t sell their homes. August 30, 2010
New Orleans Landfills, Prone to Flooding, Remain Controversial — and Possibly Dangerous — for City ResidentsIn the late summer of 1965 — almost 40 years to the day before Hurricane Katrina — Betsy, a Category Four hurricane, devastated New Orleans. City officials reopened a shuttered dump in the Upper Ninth Ward to collect debris and waste left by the massive flooding. The dump, which became known as the Agriculture Street Landfill, closed in 1966. Ten years later, the city covered it with dirt and repurposed it as a residential community, and mostly lower-income black families moved in. None of the residents knew they were living on a former dump. Then people started getting sick, the cancer rate significantly higher than in nearby neighborhoods. August 30, 2010
Radio Personality to File $100-million Discrimination SuitRadio personality George Willborn and his family are filing a $100-million discrimination lawsuit in federal court against real estate agencies Lowe Group and Prudential Rubloff Properties, according to a news release from Mr. Willborn’s attorneys. The announcement comes roughly two weeks after the U.S. Department of Housing and Urban Development accused the Lowe Group’s Jeff Lowe and his clients, Daniel and Adrienne Sabbia, of committing housing discrimination in an administrative complaint. August 30, 2010
Mercury News Editorial: Failure of Foreclosure Bill Shows Lobbyists Rule SacramentoWho, exactly, is in charge in Sacramento? Nominally, it’s the Democrats, who have a majority in the Legislature. But, in reality, they have abdicated their power to lobbyists. That outrageous betrayal of the public interest is particularly evident in the Assembly, where Senate Bill 1275, a modest attempt to protect homeowners facing foreclosure, was voted down earlier this week. Rather than join 27 colleagues in standing up to an army of bank lobbyists, 24 Assembly Democrats abandoned the foundation on which their party purports to stand: helping ordinary people get a fair shake. August 30, 2010
Teaneck Woman Holds Garage Sales to Stave Off ForeclosureA single mother who has held a couple of yard sales at her Tilden Avenue home in an attempt to stave off foreclosure is on her way to meeting her goal. As of Thursday, Karen Simmons-Braswell said she has raised $8,831 through the sale of items at yard sales held over two weekends this month and the receipt of donated funds. “I’m grateful to God first and thankful to all of the people who God moved upon their hearts and allowed them to give,” she said. “People were really very generous.” The funds have been deposited into an account that will be used to help with about $60,000 in house payments that are in arrears. August 30, 2010
4 Things for Homeowners to Consider Before RemodelingHome remodeling is on the rise. And no wonder. Owners having trouble selling their homes in this sluggish real estate market want to give them as much buyer appeal as they can afford. Others are deciding that if they can’t move, they might as well make the most of the house they may be calling home for a long time. After a year of decline in home remodeling, the number of homeowners saying they plan to remodel in the next 12 months increased from last year, according to RemodelOrMove.com, a website that provides homeowners remodeling options and has conducted semiannual surveys of owners since 2005. August 27, 2010
One in 10 With a Mortgage Face ForeclosureOne in 10 American households with a mortgage was at risk of foreclosure this summer as the government’s efforts to help have had little impact stemming the housing crisis. About 9.9% of homeowners had missed at least one mortgage payment as of June 30, the Mortgage Bankers Association said Thursday. That number, which is adjusted for seasonal factors, is down slightly from a record-high of more than 10% as of April 30. In a worrisome sign, the number of homeowners starting to have problems with their mortgages rose after trending downward last year. August 27, 2010
HUD AWARDS $312 MILLION IN DISASTER RECOVERY GRANTS TO HELP STATES REDUCE DAMAGES FROM FUTURE DISASTERSU.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today awarded nearly $312 million to 13 states to invest in efforts to reduce the human, physical, and economic toll of future disasters. The grants announced today are provided through HUD’s Disaster Recovery Enhancement Fund (DREF) and are intended to encourage states to undertake activities and long-term strategies that focus on reducing damages from future natural disasters. August 27, 2010
Struggling Cities Shut Firehouses in Budget CrisisFire departments around the nation are cutting jobs, closing firehouses and increasingly resorting to “rolling brownouts” in which they shut different fire companies on different days as the economic downturn forces many cities and towns to make deep cuts that are slowing their responses to fires and other emergencies. Philadelphia began rolling brownouts this month, joining cities from Baltimore to Sacramento that now shut some units every day. San Jose, Calif., laid off 49 firefighters last month. And Lawrence, Mass., north of Boston, has laid off firefighters and shut down half of its six firehouses, forcing the city to rely on help from neighboring departments each time a fire goes to a second alarm. August 27, 2010
An Autopsy of Fannie Mae and Freddie MacHere’s a last-minute option for summer reading material: An autopsy on Fannie Mae and Freddie Mac by their overseer, the Federal Housing Finance Agency. The report aims to inform the continuing debate in Washington about the future of the government’s role in housing finance. It’s not hard sledding, just 15 pages of bullet points and charts. And it does a good job of making a few key points: August 27, 2010
Huge Losses Put Federal Flood Insurance Plan in the RedIn Wilkinson County, Miss., a home has been flooded 34 times since 1978. Extraordinary as the damage may be, even more extraordinary is that an insurer has paid claims every time, required no flood proofing, never raised premiums after a claim and vowed to continue insuring the house. Forever. The home’s value is $69,900. Yet the total insurance payments are nearly 10 times that: $663,000. It’s no surprise that the insurer faces huge financial problems. The insurer? The federal government. August 26, 2010
5 Years After Katrina, Homeowners Insurance Costs MoreFive years after Hurricane Katrina leveled a large part of the Gulf Coast, homeowners as far away as Maine are still paying the bill. Home insurance rates for some coastal areas have shot up 30% or more. Thousands of homeowners who live along the East Coast have had their policies canceled. And when the next disaster hits, many homeowners will be forced to bear a greater share of the cost of rebuilding. Insurance industry executives say the unprecedented cost of Katrina, combined with predictions of more violent weather in the future, forced insurers to review their exposure to vulnerable areas. August 26, 2010
HUD CHARGES NORTHEAST OHIO LANDLORD WITH HOUSING DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) today announced that it is charging Testa Family Enterprises, LTD, owner of Royal Arms Apartments in Ravenna, Ohio, and the complex’s manager with housing discrimination for allegedly refusing to rent certain apartments to families with young children. HUD’s charge alleges that manager Christine Testa and Testa Family Enterprises, LTD, violated the Fair Housing Act by limiting or refusing to rent to families with small children. August 26, 2010
Post-Katrina, Stalwart Miss. Retirees RebuildHurricane Katrina pushed 27 feet of water into this low-lying marina village on Aug. 29, 2005, destroying close to 300 homes near Interstate 10. Five years later, Gene and Leona Wolfe are still rebuilding, and still not sure how they managed to escape when their home collapsed. As water rushed into the attic, Gene, now 74, was banging a hole in the roof with an old crutch while Leona, now 71, lashed foam mattresses together as makeshift life preservers. Leona shouted as the house began to lurch off its foundation. August 26, 2010
Former Countrywide CEO Mozilo Faces More AllegationsFederal regulators say former Countrywide Financial CEO Angelo Mozilo personally approved mortgages for favored borrowers that violated the company’s policies and lending standards. The Securities and Exchange Commission had previously accused Mozilo of civil fraud and illegal insider trading. Now, it says Mozilo played a direct role in a preferential program for borrowers that has been the focus of congressional ethics inquiries. Mozilo criticized Countrywide’s chief risk officer for trying to block one of the loans, telling the officer that the company could well afford to approve the special mortgages, the SEC said in a court filing last Wednesday. August 26, 2010
Home Sales Plunge 27% to Lowest Level in 15 YearsExisting-home sales in July plunged to the lowest level in 15 years, deepening worries that the housing market’s tenuous recovery is threatened by buyers’ shaky confidence in the economy. Economic forecasts were plenty pessimistic ahead of Tuesday’s report by the National Association of Realtors because of other data pointing to weakening sales since the federal tax credit ended in April.The actual numbers were far worse — sales fell more than 27% from June and 25% from a year ago to an annual rate of 3.83 million units. August 26, 2010
Housing Market Plunged in July, Fueling AnxietyAmericans’ long infatuation with owning a home, which even the economic collapse of 2008 could not kill, shuddered and stalled last month. Housing sales in July plunged 25.5 percent below the level of a year ago, the National Association of Realtors said on Tuesday, as buyers lost the spur of a government tax credit. The steep descent surprised nearly every analyst and put the volume of single-family home sales at the lowest level since 1995. The financial markets took the news badly, with the Dow Jones industrial average closing down 134 points to a six-month low. As investors sought security, the yield on the two-year Treasury note fell to a record low. August 26, 2010
In a Hoarder’s Home, Going All Out to Find the FloorHoarders have long held a special grasp on popular imagination. One of the best-known cases was that of the Collyer brothers, whose bodies were found in 1947 inside their booby-trapped Harlem brownstone packed with more than 100 tons of phone books, newspapers and tin cans. Today, two cable-television shows — “Hoarders,” on A&E, and TLC’s “Hoarding: Buried Alive” — compete to lure viewers into hoarders’ overstuffed homes. The cleanup effort in the Bedford Park apartment this week played out like a real-life episode, only without the spooky music and sound effects. August 26, 2010
Does the Recovery Depend on Housing?Single-family home sales in July plunged 25.5 percent below the level of a year ago, according to the National Association of Realtors, its lowest level since 1995. On Wednesday, the Commerce Department reported that new-home sales last month fell 12.4 percent from June. Overheated real estate was one cause of the recession. But can the economy recover without a turn-around in the housing market? Many say job numbers have to improve first, but the bad news in home sales has spread a new gloom on the fragile recovery. Does the real estate market have to lead the way out of the hole? August 26, 2010
Hurricane Katrina Altered Demographic Picture in New Orleans AreaAfter thousands of individual decisions to stay or go, years of grueling work, and tens of billions in investment, a slightly reconfigured New Orleans has emerged from the ruins left by Hurricane Katrina and the levee failures the storm triggered five years ago. New Orleans has not become a Disneyfied version of its former self, as some residents feared when the first wave of planners arrived in early 2006 eager to re-imagine the city. But neither does it look quite like it did on Aug. 28, 2005.Demographers and data-miners tracking New Orleans’ recovery help sketch the New Orleans of 2010.In quick strokes: The city is about 22 percent smaller, and not quite so poor. August 26, 2010
Hurricane Katrinia As Archived by the Times-PicayuneNew Orleans will forever exist as two cities: The one that existed before that date, and the one after. From this page, access the latest news of the recovery effort. Browse through the extraordinary archive of The Times-Picayune’s Pulitzer Prize-winning coverage. And join the thousands of voices by sharing your Katrina story. August 26, 2010
Some 3-month Mortgage Modification Trials Dragging OnBank of America (BAC) and JPMorgan Chase (JPM) service the mortgages for half the homeowners who have been awaiting decisions on permanent mortgage modifications for three months or more, according to a government report. Through July, the government’s mortgage-aid program had a backlog of 118,000 borrowers whose trial plans have run at least six months — three months past the typical duration for determining if they qualified for a permanent modification, the government said Friday. Bank of America and JPMorgan Chase, the two biggest banks, account for about 59,000 of the cases. August 23, 2010
Katrina Still Has Emotional Grip on Thousands of ChildrenFive years later, Hurricane Katrina continues to wreak havoc in the lives of thousands of children who suffer from serious emotional disturbances, often compounded by a lack of stable housing, a study reports today. Children displaced by the storm are nearly five times more likely than other kids to have severe emotional disturbances, and fewer than half of the children believed to need psychological help got it, the study says. It’s published in the journal Disaster Medicine and Public Health Preparedness. August 23, 2010
Housing Fades as a Means to Build Wealth, Analysts SayHousing will eventually recover from its great swoon. But many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg. The wealth generated by housing in those decades, particularly on the coasts, did more than assure the owners a comfortable retirement. It powered the economy, paying for the education of children and grandchildren, keeping the cruise ships and golf courses full and the restaurants humming. More than likely, that era is gone for good. August 23, 2010
The Open Road Wasn’t Quite Open to All August 23, 2010
U.S. Examines Private Sector’s Role in Ensuring Affordable HousingThe Obama administration is grappling over how much to force private lenders to pay for apartments and homes for the poor as it presses ahead with a major overhaul of the government’s housing policy, officials said. The question is among the thorniest facing the administration as it tries to build consensus around a new system that would ensure ordinary Americans have the financing they need for their homes without the government backing nearly every mortgage, as it is doing today. August 23, 2010
Catalog Homes Sprouted in Metro Detroit, Across The StateGreg Rogers was working in his backyard last year, when a passerby came back to say: “Do you know this is probably a Sears house? Now he knows. Rogers, 29, and his fiancée, Tania Hinman, 28, learned their charming little English-style Birmingham cottage is a 1928 Sears, Roebuck catalog house called the Dover. Rogers and Hinman identified their 3-bedroom, 1 1/2 -bath Sears house by comparing its exact details to those in the Sears catalog. Even their doorknobs were original. According to the Sears archive Web site, the whole Dover kit cost anywhere from $1,613 to $2,311 — some assembly required. August 23, 2010
Gulf Real Estate Sales Still SufferIn Grand Isle, La., this is typically a busy season for Realtor Beverly Curole. Interested buyers come to check out the available properties in this barrier island known for its July fishing rodeo, sandy beaches and vacation homes. But since the Gulf oil spill sent a sheen of oil into the island’s bay, Curole’s buyers have fled. First, they put closings on hold. Then they canceled contracts. Now she’s hoping to get some money from BP for lost commissions. August 20, 2010
Gulf Real Estate Sales Still SufferIn Grand Isle, La., this is typically a busy season for Realtor Beverly Curole. Interested buyers come to check out the available properties in this barrier island known for its July fishing rodeo, sandy beaches and vacation homes. But since the Gulf oil spill sent a sheen of oil into the island’s bay, Curole’s buyers have fled. First, they put closings on hold. Then they canceled contracts. Now she’s hoping to get some money from BP for lost commissions. August 20, 2010
HUD SECRETARY DONOVAN ANNOUNCES THAT OVER 8,000 AFFORDABLE HOMES WILL BECOME MORE ENERGY EFFICIENT AS A RESULT OF THE FIRST 100U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan announced today a major Recovery Act milestone: 100 affordable housing developments, including 8,112 homes, around the country have been awarded more than $100 million to complete energy efficient renovations with Recovery Act funds. These renovations will not only generate many necessary upgrades to thousands of affordable apartments, but they will also create jobs and save money for thousands of residents. August 20, 2010
HUD SECRETARY ANNOUNCES DISASTER ASSISTANCE FOR MISSOURI STORM VICTIMSU.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to 29 counties in Missouri and provide support to homeowners and low-income renters forced from their homes following severe storms, flooding and tornadoes last month. On Tuesday, President Obama issued a disaster declaration for Adair, Andrew, Atchison, Buchanan, Caldwell, Carroll, Cass, Chariton, Clark, Clinton, Daviess, DeKalb, Gentry, Grundy, Harrison, Holt, Howard, Jackson, Lafayette, Lewis, Livingston, Mercer, Nodaway, Putnam, Ray, Schuyler, Scotland, Sullivan, and Worth Counties. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county. August 20, 2010
Basking in Energy-Efficient A.C.Of all the things I could spend $8,800 to buy, a new central air-conditioning system is not near the top of my most-wanted list. But that’s what I did this week, and I actually feel pretty good about it. I am happy about the $1,500 tax credit I am going to get for buying a very efficient system, one that is going to save me hundreds of dollars a year. To sweeten the pot, the manufacturer offered a plan that allows me to pay for the system over three years with no interest. My installer told me that the financing deal was unusual for this time of year, but business has been slow in these recessionary times. August 20, 2010
Mortgage Fraud Thrives in Good and Bad TimesThe house on the 53rd block of South Wood Street in Chicago’s Back of the Yards doesn’t look like a $355,000 home. There is no front door and most of the windows are boarded up. Public records show it was sold in foreclosure for $25,500 in January 2009, then resold for $355,000 in October. In between, a $110,000 mortgage was taken out on the home, supposedly for renovations. This June, the property went back into foreclosure. To Emilio Carrasquillo, head of the local office of non-profit lender Neighborhood Housing Services of Chicago (NHS), the numbers don’t add up. He believes this is a case of mortgage fraud. August 20, 2010
Refinancing Homeowners are Going ShortChirakos was paying 5.375 percent on a 30-year loan before he became a victim of downsizing at toolmaker Snap-on Inc. As rates sank and slipped over the summer, he watched and waited. Then he pounced, locking in a 20-year, fixed-rate loan at 4.3 percent and slashing $140 off the monthly bill for his $220,000 home. With excellent credit and little debt, the re-fi cost him $900, so will pay for itself in about six months. “Every little bit helps,” he said. For many refinancing homeowners, going shorter is suddenly more appealing. Fixed mortgages of 15 and 20 years are quickly gaining fans among those who previously held 30-year loans, balloon mortgages and adjustable rates, according to a new report from mortgage giant Freddie Mac. The number of fixed-rate, 15- and 20-year loans are at their highest level since 2004, the government-controlled company said. August 20, 2010
Helen Washington Lang, Public Housing Advocate, dies at 80Helen Washington Lang, a community activist and public housing tenant leader known for her charm and tenaciousness in dealing with the Housing Authority of New Orleans, died Saturday at the Care Center in Baton Rouge. She was 80. As a young woman, Mrs. Lang moved into the St. Bernard public housing development, where she became a resident-council leader and activist, pushing for HANO to build a community center in the development and for residents’ concerns to be heard. She was also active during the civil rights movement of the 1960s, first marching with the Black Panthers and then with the Rev. A.L. Davis in the march on City Hall to demand the end of Jim Crow segregation. Her involvement in that movement “motivated her to continue fighting for her people,” longtime friend Bette Carter said. August 20, 2010
Right Time to Bargain for A Better Price: The Housing Market has Options Across All Categories? Affordable, Mid-income and LuxurThe spurt of launches in the real estate market is not news anymore. With new names getting added to the list every month, there’s already a supply glut. And, the pertinent question now is whether it makes sense to buy a house at this point. A report released on 18 August by ICICI Securities Ltd, Real Estate Pulse II, says that under-construction supply in the residential space over eight tier I cities is 213 million sq. ft. Of this, 19.8 million sq. ft is ready to move, says the report, which surveyed the market in June and July. Data provided by property consultants Jones Lang LaSalle shows that at least 122,000 units were launched across seven metro cities between January and June. August 20, 2010
Cops: Vacant, Foreclosed Houses Attract Homeless SquattersPolice think family members arrested at an Ocoee home this week are part of a network of squatters who live in houses facing foreclosure. Detectives are investigating whether three other houses in the city are occupied by people with no legal authority to be there, Ocoee police Sgt. Mike Bryant said. At least some of those residents are thought to be related, he said. These takeovers of empty homes have increased as foreclosures have skyrocketed, authorities said. In July, the Orlando area had the eighth-highest foreclosure activity in the nation. Florida has thousands of empty dwellings where the homeless can stay. August 20, 2010
Source-of-income Housing Reforms Must Move AheadThose battered by the sour New York economy, including the poor and elderly, disabled veterans and others who receive income or benefits from government sources, won’t be getting any extra help from Albany when it comes to preserving or expanding their housing opportunities. Gov. David Paterson, while apparently moved by their plight, wasn’t moved enough to stand up on their behalf. Citing potential economic harm to small landlords and high implementation costs, Paterson has vetoed legislation barring discrimination against housing applicants based on the source of their income — be it from employment, child support, alimony, Social Security and disability benefits, or Section 8 housing vouchers. The legislation easily passed the Assembly, 136-4, and the Senate, 34-27, but died on Paterson’s desk. August 20, 2010
A Proposal to Limit Rent Subsidies to Those Who Need ThemIn 1945 the New York State Legislature enacted an Emergency Tenant Protection Act to safeguard returning soldiers from price gouging because very few apartments had been built as a result of the Great Depression and World War II. Today, 65 years later, low supply of rentals is still a major issue in New York City. Also, as a result of the Rent Control Law, Rent Stabilization Law and the consequent suspension of the Law of Supply and Demand, it is unlikely that the shortage will ever end. At the same time, all of New York City’s residents who reside in free-market apartments are subsidizing those in rent controlled or rent stabilized units. August 20, 2010
New Marketing Team Turns Leasing Around at East Harlem’s 1,230-Unit Riverton SquareNew York, N.Y.—In the midst of a lackluster multifamily market, Rose Associates Inc., the new marketing and leasing team for Riverton Square in East Harlem, N.Y., has wasted precious little time in transforming leasing activity at the 1,230-unit apartment complex from lethargic to lively. Developed in 1944, Riverton Square encompasses 12 buildings stretching from Fifth Avenue to the Harlem River. The predominantly market-rate apartment community features one- and two-bedroom residences with rents ranging from $1,300 to $1,800 per month. Rose Associates, tapped by the special servicer for the foreclosed upon property, has orchestrated 30 new lease agreements in the last 60 days. August 20, 2010
Mortgage Bonds Slump on ‘Mega-Refi’ Concern: Credit MarketsGovernment-backed mortgage bonds are underperforming Treasuries by the most this year, after reaching record high prices, amid concern refinancing will accelerate. Fannie Mae, Freddie Mac and Ginnie Mae securities have returned 24 basis points, or 0.24 percentage point, less than U.S. debt this month, the worst relative results since December, Barclays Capital indexes show. Fannie Mae’s 6.5 percent bonds fell to 109.16 cents on the dollar from the high of 109.94 cents on July 27, according to data compiled by Bloomberg. August 19, 2010
Home Again at Last, but Hit by Another BlowThis was supposed to be the summer Alex Hubbard came back home. After five years of living with his family in a Salvation Army shelter, a hotel room, a FEMA trailer and then a place in Mississippi that belongs to his sister-in-law, he was finally going to move back into his own house in the Lower Ninth Ward. Then the BP blowout in the Gulf of Mexico happened. And the slowdown of the oil drilling business offshore. And, finally, the six-month federal moratorium on exploratory drilling. Now Mr. Hubbard, an offshore technician, sits on a bucket in his empty house on Lizardi Street. With no work for months, other than a day here or a couple days there, he has no money to buy a refrigerator, a bedroom set or even a few chairs. August 18, 2010
Mortgage Role for U.S. Is AffirmedThe Obama administration has been barraged with ideas for reworking the government’s role in housing finance, spanning the spectrum from guaranteeing all mortgage loans to eliminating all federal subsidies for homeownership. Treasury Secretary Timothy F. Geithner, speaking Tuesday at a conference to discuss the possibilities, made clear that the administration was not pondering such radical kinds of surgery as it develops a proposal it hopes to unveil in January. August 18, 2010
2-year Tenants’ Strike at Marbury Plaza Ends With Plan for $5 Million in RepairsA two-year tenants’ rent strike at a Southeast Washington apartment complex, started after the deaths of a toddler and her mother in a 2005 laundry room explosion exposed longstanding security and maintenance issues, has been settled, with the complex’s owner agreeing to pay $5 million for repairs. Tenants at the 672-unit Marbury Plaza in the 2300 block of Good Hope Road struck the deal this month with building manager Urban Investment Partners of Washington to repair or replace roofs and heating, air-conditioning, hot water and building-access systems. New windows will be installed throughout the complex, which includes two towers and several garden-style apartment buildings. A little more than $401,000 has already been spent, according to the settlement. August 18, 2010
Skepticism Reigns in SE Over Construction Start of New Skyland Town CenterThe long-awaited redevelopment of one of the largest commercial properties east of the Anacostia River is inching its way to fruition, buoyed by approval by the District’s zoning commission last month. But the city’s use of eminent domain to purchase Skyland’s 18 acres, bordered by Alabama Avenue and Naylor and Good Hope roads in Southeast Washington, is still playing out in D.C. Superior Court. Several lawsuits against the city are pending on appeals, and one attorney for landowners is threatening a suit on constitutional grounds. Also, developers must secure financing for at least 280,000 square feet of retail space and more than 450 condominium units planned for the site. August 18, 2010
If God is Willing and the Creek Don’t RiseIF GOD IS WILLING AND DA CREEK DON’T RISE continues the story of the birth of the Big Easy, begun in film maker Spike Lee’s, Emmy and Peabody-winning 2006 documentary ” When the Levees Broke: A Requiem in Four Acts.” Alongside the city’s storied ability to celebrate life with unmatchable ebullience, Lee documents the successes and failures in the ongoing efforts to restore housing, healthcare, education, economic growth and law and order to a battered but unbowed community. August 18, 2010
Dem. Frank Says Abolish Freddie and FannieFannie Mae and Freddie Mac should be abolished rather than reformed as part of the Obama administration’s planned overhaul of the government’s role in housing finance, Rep. Barney Frank, chairman of the House Financial Services committee, said on Tuesday. “They should be abolished,” Frank said in an interview on Fox Business, when asked whether the mortgage giants should be elements in housing market reform. “They only question is what do you put in their place,” Frank said. August 18, 2010
Population Density to Guide Detroit’s DestinyThis may come as a shock to cynics who say nobody lives in Detroit anymore. Even after a half-century of people leaving, Detroit’s population density — the number of residents per square mile — remains roughly twice that of such Sunbelt havens as Phoenix and Houston. Detroit has about 6,000 residents per square mile compared with 3,000 in those sprawling warm-weather cities. An even more dramatic comparison: Jacksonville, Fla., with a population roughly the same as Detroit’s, around 800,000, sprawls out over an area roughly five times Detroit’s 139-square-mile footprint, giving Jacksonville a population density of just 1,000 — or a sixth of Detroit’s concentration of people. August 18, 2010
California: Foreclosures in State Hit Latino Homes HardestA review of the damage wreaked on California communities by the housing bust shows that Latino households suffered nearly 50 percent of the foreclosures and that loan defaults are concentrated in the state’s Central Valley. That area, which includes the Sacramento and San Joaquin valleys, features six of the top 10 California metro areas for foreclosure concentrations, according to the Center for Responsible Lending, which released a comprehensive report Tuesday. August 18, 2010
The Worst Bet in Real Estate Today: Construction LoansThe biggest bank killer around isn’t some exotic derivative investment concocted by Wall Street’s financial alchemists. It’s the plain old construction loan, Main Street banks’ bread and butter for decades. Deutsche Bank has called them “without doubt, the riskiest commercial real estate loan product.” The Congressional Oversight Panel, a financial watchdog, has warned that construction loans have deteriorated faster and inflicted bigger losses on banks than any other real estate loans. August 17, 2010
Conference on Future of Fannie, Freddie is Under WayTalk of shrinking the government’s involvement in the mortgage market is growing. Just don’t expect action soon. A conference Tuesday at the Treasury Department is the first of many steps toward restructuring the nearly $11 trillion mortgage market. So far, rescuing mortgage giants Fannie Mae and Freddie Mac has cost the government more than $148 billion, and that number is expected to grow. Treasury Secretary Timothy Geithner will address Tuesday’s conference but is not expected to offer an exit strategy yet. The administration has said it won’t offer its plan until next year. August 17, 2010
Shorter-term Mortgages Gain Favor for RefinancingMore homeowners are refinancing into shorter-term loans, saving a bundle by taking advantage of the lowest mortgage rates in decades. Nearly a third of borrowers refinancing fixed 30-year loans in April through June picked loans with 15- or 20-year terms, according to mortgage finance giant Freddie Mac. It was the highest share since 2004. The trend has been driven by near-weekly drops in rates all summer. August 17, 2010
Air-Conditioners That Run When Nobody’s HomeIn a handsome prewar building in Greenwich Village, a tenant struggled to remember the last time she turned off her air-conditioner. Upstairs, a young couple admitted to having let the window unit run for four days while they went out of town for a funeral, thinking it would be nice, amid the July heat wave, to return to a cool apartment. Con Edison counts about 250,000 apartments across the city, not including public housing projects, that do not have individual meters tracking electricity consumption, compared with roughly 1.75 million that do. One large management company, Cooper Square, estimates that these units expend at least 30 percent more electricity year-round than their counterparts. August 17, 2010
With Luxury Hotel-Apartment Complex, Williamsburg Continues Its EvolutionThe project — a pair of six-story condominium buildings and a 64-room hotel running from North 11th to North 12th Streets near McCarren Park — is being marketed as the first development in the area to combine luxury apartment living with access to hotel amenities. Once the project’s Hotel Williamsburg opens, as early as March, residents of the condominium buildings will be able to lounge at the hotel pool or rooftop bar, order an in-home massage or have the concierge book a table at Nobu. August 17, 2010
When Personal Style Impedes a SaleIt is one of the central maxims of real estate, right up there with “location, location, location”: A home should be staged so that buyers can imagine themselves living in it. That means removing the seller’s thrift-store discoveries and funky artwork to encourage potential buyers to mentally install their own thrift-store discoveries and funky artwork. Nonetheless, many sellers leave behind their favorite ice-breakers, at the risk of having them become deal-breakers. August 17, 2010
No Quick Fix Seen for Fannie, FreddieThe Obama administration will pick the brains of housing finance leaders on how to fix Fannie Mae and Freddie Mac, but made one thing clear on Tuesday: there is no going back to their pre-crisis structure. Treasury Secretary Timothy Geithner, in excerpts of remarks to be delivered at a Treasury conference on restructuring the two government-controlled mortgage finance giants, called that task one of the most “consequential and complicated” problems facing the United States. August 17, 2010
Quicken’s Move Could Inspire More Firms to Come DowntownWhen 700 employees of Quicken Loans arrived for work Monday at the Compuware building, they each found a gift bag stuffed with discount coupons from nearby downtown restaurants and shops very eager to make their acquaintance. Amid the excitement, it helps to remember that the Quicken move reflects a transfer of jobs within metro Detroit, rather than new jobs or growth from outside the region. And it also may bear remembering that when Quicken founder and Chairman Dan Gilbert first announced he would move his headquarters downtown from Livonia, in November 2007, he was projecting bringing 4,000 workers downtown and building his own headquarters skyscraper. August 17, 2010
Study Finds Prejudicial LendingMortgage lenders are more likely to deny a loan to blacks and Hispanics in Fort Smith than almost any other group, according to a preliminary study.

Robert Gaudin, director of research and planning for Portland, Ore.-based Western Economic Services, said Monday that across all income levels, lenders denied loans in Fort Smith to 22 percent of blacks, 21.8 percent of Hispanics, 16.2 percent of whites, 15.8 percent of Asians and 24.1 percent of American Indians. He said the rate for American Indians was drawn from a very small number of loan applicants. About 17.2 percent of blacks in Fort Smith with more than $75,000 in annual household income were denied a mortgage between 2002 and 2008. August 17, 2010
Philadelphia Housing Authority Chief Carl Greene Facing ForeclosureThe mortgage foreclosure crisis has claimed an unlikely victim: Carl R. Greene, executive director of the Philadelphia Housing Authority (PHA). Wells Fargo Bank has foreclosed on Greene’s $615,035 condominium in the upscale Naval Square development in the city’s Schuylkill section. In a lawsuit filed July 27, Wells Fargo said the amount in dispute was $386,685.22. Greene, 53, runs the nation’s fourth-largest public housing agency and is one of the highest-paid public officials in the city. His salary is $306,370, and last year he got a $44,188 bonus. Kirk Dorn, a spokesman for Greene, confirmed Thursday that the housing chief was “involved in a dispute with his mortgage company.” August 17, 2010
Special Report: Flipping, Flopping and Booming Mortgage FraudThe house on the 53rd block of South Wood Street in Chicago’s Back of the Yards doesn’t look like a $355,000 home. There is no front door and most of the windows are boarded up. Public records show it sold in foreclosure for $25,500 in January 2009, then resold for $355,000 in October. In between, a $110,000 mortgage was taken out on the home, supposedly for renovations. This June, the property went back into foreclosure. To Emilio Carrasquillo, head of the local office of non-profit lender Neighborhood Housing Services of Chicago (NHS), the numbers don’t add up. He believes this is a case of mortgage fraud. August 17, 2010
NY: Port Chester to Westchester County: Thanks, But We’ll Control Our Own ZoningPort Chester officials are banking on strength in numbers. The village, like most places in Westchester, gets federal money through Community Development Block Grants. But recently, there’s been a catch — since Westchester County distributes the money, it’s attached new strings to the grants. If towns and villages want the grant money for projects, they’ll have to agree to give the county the first pick of property within town borders, and they’ll have to agree to a “model zoning ordinance” — legal-speak that means towns would have to make sure 10 percent of homes count as affordable housing. August 17, 2010
Mortgage Delinquency Rates Edge Up in Bay AreaMortgage delinquencies in the Bay Area are higher than the national average but lower than the California average, according to a report being released today. Of mortgaged homes, 7.97 percent were behind on payments by more than 60 days in the San Francisco metropolitan area (the counties of San Francisco, Alameda, Contra Costa, Marin and San Mateo) in the second quarter, according to TransUnion, one of the nation’s three big credit bureaus. That was up from a 7.07 percent rate a year earlier. August 17, 2010
CA: Foreclosures and Loan Modification ProgramsThe state Senate passed a bill that bars lenders from starting foreclosure proceedings against borrowers until after they’re found to be ineligible for a modification. We urge the Assembly to move the bill forward. Despite the vital interest that both lenders and borrowers have in avoiding money-losing foreclosures, the number of failing mortgages remains stubbornly high. Part of the problem is borrowers who’ve sunk too deeply into debt — they bought homes they simply couldn’t afford, or their income plummeted during the recession. But another part is the inability of some loan servicers to deal with the volume of defaults that ensued after the housing bubble burst and the economy collapsed. August 17, 2010
Banks: Foreclosure Ruling FlawedMortgage giants Wells Fargo and U.S. Bank say a 2009 ruling that potentially voids thousands of Massachusetts foreclosures is “a plain error” that the state’s top court should reverse. “The (lower) court’s rulings cannot stand as a matter of law or policy,” bank attorneys wrote in a brief asking the Supreme Judicial Court to overturn what’s known as the Ibanez decision. The lenders want the SJC to reject a 2009 ruling in which Land Court Justice Keith Long invalidated two Bay State foreclosures due to paperwork flaws. August 17, 2010
Chicago: Apparently Little Has Changed in BridgeportNot even in Bridgeport would you expect a home seller to actually say, “We would rather not sell to an African American.” But according to a complaint filed by the U.S. Housing and Urban Development, Daniel Sabbia did just that. HUD claims that Sabbia and his wife, Adrienne, refused to sell their 8,000- square-foot home at 33rd and Normal to George and Peytyn Willborn because they are black. A lot of white people might not know this, but George Willborn is one of the most popular black comedians to come out of Chicago since the late Bernie Mac emerged as a “King of Comedy.” August 17, 2010
HUD CHARGES PENNSYLVANIA PROPERTY OWNERS AND MANAGERS WITH HOUSING DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging several Bristol, Pennsylvania property owners and their management company with housing discrimination for refusing to rent a one-bedroom apartment to a mother and her seven-year-old daughter. According to HUD’s charge, managers and owners Quality Realty Associates and Vincent Quattrocchi, and owners Louis Quattrocchi and Cecilia Quattrocchi, violated the Fair Housing Act by turning away the mother because they did not permit children to live at their 26 apartment units. August 13, 2010
OBAMA ADMINISTRATION ANNOUNCES ADDITIONAL SUPPORT FOR TARGETED FORECLOSURE-PREVENTION PROGRAMS TO HELP HOMEOWNERS STRUGGLING WITThe Obama Administration today announced additional support to help homeowners struggling with unemployment through two targeted foreclosure-prevention programs. Through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (the Hardest Hit Fund), the U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment. Additionally, the U.S. Department of Housing and Urban Development (HUD) will soon launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance — for up to 24 months — to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition. August 13, 2010
OBAMA ADMINISTRATION ANNOUNCES ADDITIONAL SUPPORT FOR TARGETED FORECLOSURE-PREVENTION PROGRAMS TO HELP HOMEOWNERS STRUGGLING WITThe Obama Administration today announced additional support to help homeowners struggling with unemployment through two targeted foreclosure-prevention programs. Through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (the Hardest Hit Fund), the U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment. Additionally, the U.S. Department of Housing and Urban Development (HUD) will soon launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance — for up to 24 months — to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition. August 13, 2010
HUD CHARGES CHICAGO REAL ESTATE GROUP AND PROPERTY OWNERS WITH HOUSING DISCRIMINATION August 13, 2010
30-year Mortgage Rates Hit Another Low: 4.44%Mortgage rates sank to the lowest level in decades this week, pushed down by the Federal Reserve’s move to buy up government debt to help lift the economic recovery. Mortgage buyer Freddie Mac said Thursday that the average rate for 30-year fixed loans this week was 4.44%, down from 4.49% last week. That’s the lowest since Freddie Mac began tracking rates in 1971. The average rate on the 15-year fixed loan dropped to 3.92% from 3.95%, also the lowest on record. Rates have fallen since spring as investors sought the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields. August 13, 2010
Home Prices Rise in Most Cities, but Gain May Not Last; See ChartHome prices rose in nearly two-thirds of U.S. cities this spring as buyers took advantage of tax incentives that gave the struggling housing market a temporary jolt. The median sales price for previously occupied homes rose compared with last year in 100 out of 155 metropolitan areas tracked in the April-to-June quarter, the National Association of Realtors said Wednesday. That compares with 91 out of 152 cities in the January-to-March quarter. Fourteen cities had double-digit price increases. August 13, 2010
Homes Lost to Foreclosure Up 6% From Last YearThe number of U.S. homes lost to foreclosure surged in July, another sign lenders are moving quicker to take back properties from homeowners behind in payments. Lenders repossessed 92,858 properties last month, up 9% from June and an increase of 6% from July 2009, foreclosure listing firm RealtyTrac said Thursday. Banks have stepped up repossessions this year to clear out the backlog of bad loans. July makes the eighth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. August 13, 2010
An Uninhabited or Rented Home Gets Different Insurance CoverageIn many neighborhoods around the country, “for sale” signs outnumber telephone poles, and some of those signs are looking awfully weather-beaten. Even owners of oceanfront properties are having trouble finding buyers, at least at a price that will cover the amount they owe on the home. Standard homeowners policies are designed to cover homes that are occupied. If you leave your home uninhabited for a month or longer, your policy may not cover damage or losses, says Michael McRaith, director of the Illinois Department of Insurance. August 13, 2010
Faltering Harlem Housing Deal Won City CashIn the early 1990s, with New York City eager to find creative ways of rehabilitating its troubled neighborhoods, it struck a multimillion-dollar deal with the Greater Harlem Chamber of Commerce: The city sold the chamber a collection of dilapidated Harlem apartment buildings for a nominal amount, and arranged for close to $10 million in low-cost loans to help fix and restore the buildings. The deal could hardly have gone worse — in almost every way, and over many, many years. The chamber’s development arm twice faced foreclosure on the collection of properties; utility bills went unpaid, and renovations were never done. August 13, 2010
HUD TO OBSERVE NEIGHBORHOOD NETWORKS WEEK AUGUST 2—7The U.S. Department of Housing and Urban Development (HUD) announced today Neighborhood Networks Week 2010 will be held August 2—7 with the theme, “A Successful Past, A Promising Future.” The week-long observance is intended to raise public awareness about Neighborhood Networks, an education and technology-based initiative designed to improve the lives of residents living in HUD-assisted housing. August 3, 2010
Anger and Debate in Harlem Over What to Do With a Long-Vacant SchoolWhen Public School 186 opened on West 145th Street in 1903, it was a five-story building with a red brick facade, large windows and an open courtyard. It served the neighborhood for the next 72 years. These days, trees sprout through the roof and the windows of the abandoned school. Three large locks prevent entrance to a courtyard filled with garbage. For nearly 25 years the building has fueled anger because it remains unused, and proposed plans for its development have divided West Harlem. August 3, 2010
Homeownership Rate Continues to SlideMillions of houses on the verge of foreclosure threaten to send homeownership to its lowest level in 50 years, according to new industry estimates. Fresh projections say the rate could plummet to about 62% as early as 2012 and almost certainly by the end of the decade. Homeownership rates haven’t been that low since they hit 61.9% in 1960. The share of households that own their homes has been sliding since the housing bubble burst in 2006. The rate fell again in the second quarter of this year to 66.9% — the lowest since 1999 — from a peak of 69.4% in 2004, the Census Bureau says. August 2, 2010
Special Military Leases Give Developers a Leg UpJust inside Aberdeen Proving Ground, Md., where new Army employees are arriving from New Jersey as part of a military base relocation process, a new business complex is taking shape. But in this case, the tenants aren’t military employees. They are contractors hoping to take advantage of a specially negotiated lease that allows developers to build on federal land and, in return, gives military installations a new way to get maintenance and construction done. August 2, 2010
Fed Finds No Good Deed Goes Unpunished as Mortgage Trades FailFor all the good the Federal Reserve’s $1.25 trillion of mortgage-bond purchases have done, they’ve also left part of the market broken. By acquiring about a quarter of home-loan bonds with government-backed guarantees to bolster housing prices and the U.S. economy, the Fed helped make some securities so hard to find that Wall Street has been unable to complete an unprecedented amount of trades. Failures to deliver or receive mortgage debt totaled $1.34 trillion in the week ended July 21, compared with a weekly average of $150 billion in the five years through 2009, according to Fed data. August 2, 2010
Fines, Small Tax Bill Send Baltimore Home to Tax SaleTim Nickels’ rowhouse in Baltimore went to tax sale over less than $4 in unpaid property taxes and hundreds of dollars in citations for a messy yard. Perfectly legal, under the city’s rules. But Nickels was flabbergasted. Baltimore’s annual tax sale, an effort by the city to collect on delinquent accounts, has drawn criticism for putting residents at risk of losing their homes over municipal bills as small as $250. Nickels’ past-due tab of $955.60 — including the citation fines and late fees — was one of 6,421 unpaid city bills recently sold as liens to investors, who can move to foreclose later this year if the owners don’t pay up with interest. August 2, 2010
Builders Find That Smaller Homes Keep Businesses AfloatWhen the air sputtered out of the housing bubble, new home builders struggling to survive went with smaller homes that could appeal to a broader base of buyers. Case in point: The Bedford, the most-popular floor plan this year at his Rivers Edge at Cherry Hill development in Canton, has a slimmed-down version. The starting price for the 2,400-square-foot floor plan five years ago was in the low-$300,000 range. Now, the builder offers an 1,800-square-foot version priced at just under $200,000. He sold nine of them through June of this year. August 2, 2010
Citigroup Paying $75M to Settle Charges Over Subprime LossesBanking titan Citigroup is paying $75 million to settle civil charges that it misled investors about its potential losses from subprime mortgages as the housing bust hit in 2007. The Securities and Exchange Commission announced the settlement with Citigroup (C) on Thursday. It said the company repeatedly made misleading statements in calls with analysts and regulatory filings about the extent of its holdings tied to high-risk mortgages. The bank had said the exposure was $13 billion or less. The SEC said it exceeded $50 billion. July 30, 2010
Mortgage Rates Hit 4.54%, Fifth Low in Six WeeksMortgage rates dropped to the lowest level on record for the fifth time in six weeks, making homebuying and refinancing the most attractive in decades for those who can get loans. The average rate for 30-year fixed loans this week was 4.54%, down from 4.56 last week, mortgage company Freddie Mac said Thursday. That’s the lowest since Freddie Mac began tracking rates in 1971. The last time rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years. July 30, 2010
Mortgage Brokers to be Fingerprinted, RegisteredMortgage loan originators will have to be fingerprinted and sign up to a central registry to do business in future, according to final rules issued on Wednesday by the Federal Reserve and other regulators. The rules are part of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, also called the S.A.F.E. Act. They were issued by the Fed, Comptroller of the Currency, Federal Deposit Insurance Corp, Office of Thrift Supervision, Farm Credit Administration and National Credit Union Administration. Mortgage brokers came under tough scrutiny in the wake of the 2007-09 financial crisis, with some lawmakers and regulators sharply critical of underwriting standards and practices that were seen as so loose they helped foster a housing price bubble. July 30, 2010
Closing Costs: How Much to BudgetRenada, a New Yorker ready to make the switch from renter to owner, thought she’d sailed through the home buying process. She was approved for a loan, found a condominium in Hell’s Kitchen and signed a purchase agreement, all in a relatively short period of time. She expected more of the same during her closing appointment. As she reviewed the closing paperwork, though, she realized that she was in unknown and unexpected territory: The list of fees associated with her purchase was dizzyingly long, and the price tag higher than she’d imagined. July 30, 2010
Help for America’s HomeOwners Media Campaign by HUD, Treasury Dept. and the Ad CouncilThe U.S. Department of the Treasury, the U.S. Department of Housing and Urban Development (HUD) and the Ad Council have partnered on the creation of a public service advertising campaign (PSA) targeting homeowners who are struggling to keep their homes. The PSAs communicate to these homeowners that there is free help available through the Making Home Affordable program. The PSAs feature real homeowners who have benefited from the program and encourage viewers to learn about their options. As with all Ad Council campaigns, all the ad space is donated. July 29, 2010
Homes Will Sell if Priced Right; Foreclosures Have ImpactEmily Rennie’s three-bedroom house in Oakland was a beauty in a sweet location. Walking distance to the lakeshore. Close to shops. A refurbished patio in the back. Inside, a modern kitchen with granite countertops. Listed at $539,000 when she put it on the market, the Excelsior Avenue house was missing one crucial thing: The right price. After a few weeks with no offers, she cut the price to $499,000 in May. Then she cut it to $475,000 in June. She is still hoping for an offer. Rennie is discovering the cold reality of post-housing-bust prices: No matter what she thinks her house is worth, what matters is what buyers are willing to pay. July 29, 2010
Foreclosures Boom Among Nation’s Most CreditworthyA record number of borrowers once judged the most creditworthy are heading into foreclosure as the job market leaves more homeowners unable to keep up with mortgage payments. Foreclosures among borrowers with prime conforming loans have shot up 425% since January 2008, according to Lender Processing Services, which compiles mortgage data. Conforming loans are those eligible for purchase by Fannie Mae and Freddie Mac, the federal agencies that buy mortgages from lenders.Jumbo prime loans not eligible for purchase by Fannie or Freddie have done even worse — foreclosures on those have increased nearly 600%. Jumbo loans are typically mortgages worth more than $729,750. July 29, 2010
Apartment Occupancy Up Amid ForeclosuresLandlords are seeing a surge in apartment rentals as mounting foreclosures reduce homeownership and an improving job market for young adults encourages them to find their own places. The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half of the year, according to MPF Research. That’s almost double the increase in occupied units in all of 2009 and the most since the firm began tracking rates in 1992. The vacancy rate declined to 6.6% in June from 8.2% in December. July 29, 2010
Localities, States Scramble to Spend Foreclosure Relief AidLocal governments are at risk of losing more than $1 billion in foreclosure relief funds they can’t spend quickly enough. With use-it-or-lose-it spending deadlines weeks away, cities and counties are scrambling to shore up neighborhoods by buying foreclosed and abandoned properties — but are often stymied by market forces, federal regulations and a lack of staffing. The $3.9 billion Neighborhood Stabilization Program (NSP), passed in 2008, was intended to help areas hardest hit by the housing crisis buy foreclosed homes and residential properties. In 2009, Congress added $2 billion via the stimulus bill. Last week, President Obama signed into law another $1 billion for a third round of spending, for a total of $6.9 billion. July 28, 2010
Doomsday Shelters Making a ComebackJason Hodge, father of four children from Barstow, Calif., says he’s “not paranoid” but he is concerned, and that’s why he bought space in what might be labeled a doomsday shelter. Hodge bought into the first of a proposed nationwide group of 20 fortified, underground shelters — the Vivos shelter network — that are intended to protect those inside for up to a year from catastrophes such as a nuclear attack, killer asteroids or tsunamis, according to the project’s developers. “It’s an investment in life,” says Hodge, a Teamsters union representative. “I want to make sure I have a place I can take me and my family if that worst-case scenario were to happen.” July 28, 2010
Apartment Occupancy Up Amid ForeclosuresLandlords are seeing a surge in apartment rentals as mounting foreclosures reduce homeownership and an improving job market for young adults encourages them to find their own places. The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half of the year, according to MPF Research. That’s almost double the increase in occupied units in all of 2009 and the most since the firm began tracking rates in 1992. The vacancy rate declined to 6.6% in June from 8.2% in December. July 28, 2010
Treasury Sets Conference on Future of Mortgage Giants Fannie, FreddieThe Obama administration, which has been under fire for not developing a concrete plan for mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC), says it will hold a conference in next month to discuss their future. The administration said Tuesday the event will be held Aug. 17 at the Treasury Department. The financial overhaul signed by President Barack Obama didn’t address their future, despite protest from Republicans that it was incomplete without a plan for the two companies. The Obama administration has said it wants to wait until next year to determine their future. July 28, 2010
D.C. Area Housing Market Relatively Insulated from Downturn, Report FindsWhile the nation’s housing market struggles amid a sudden downdraft that has once again battered sales, the Washington region appears relatively insulated and poised for a turnaround. Home-buying activity in the second quarter was well above where it was in the comparable period a year ago, and homes sold more quickly and at higher prices, according to a study compiled by the Delta Associates consulting firm and Metropolitan Regional Information Systems, the local multiple listing service.“We feel quite comfortable in saying that the bottom has passed in this region,” said Sandy Paul, Delta’s national research director. “But if the national and global economies take a turn for the worse, all bets are off.” July 28, 2010
Wells Fargo Accused of Predatory Lending on MortgagesThe Pennsylvania Human Relations Commission Tuesday accused Wells Fargo, N.A., of engaging in predatory lending practices in primarily African American neighborhoods in Philadelphia. In a complaint, the panel said that since 2004, Wells Fargo had engaged in lending practices contributing to the “disproportionately large number of foreclosures” in these neighborhoods. July 28, 2010
Oak Cliff Residents Angered by Plan to Move 17 Homeless People into Cliff Manor Next WeekThe first meeting of a task force seeking public input about moving the homeless into north Oak Cliff ended with an announcement that left neighbors furious: 17 homeless people are moving into Cliff Manor starting next week. The Metro Dallas Homeless Alliance and Dallas Housing Authority have planned for months to move homeless people into as many as 100 units at the public housing tower. City officials told residents the project was on hold last month after a heated public meeting, and the task force was formed. The unexpected news surfaced late Monday at a closed-door task force meeting of neighborhood leaders and officials with the city, the homeless alliance and DHA. July 28, 2010
Census: Moves Because of Evictions IncreaseMore Americans say they moved because they were evicted or wanted to spend less money and now live in a worse house with more people, new Census data show. The 2009 American Housing Survey shows the stark effect the recession and housing crisis have had on some people’s lifestyles in just two years. The survey, last conducted in 2007, captures the brunt of the downturn’s impact on housing. July 27, 2010
FHA’S MORTGAGEE REVIEW BOARD TAKES ACTION AGAINST HUNDREDS OF LENDERSThe Federal Housing Administration’s Mortgagee Review Board (MRB) today published a notice in the Federal Register to announce dozens of administrative actions against FHA-approved lenders who failed to meet its requirements. This year alone, the MRB took nearly 1,500 administrative sanctions against lenders, including reprimands, probations, suspensions, withdrawals of approval, and civil money penalties. July 27, 2010
HUD CHARGES CHICAGO ARCHITECT, DEVELOPER WITH FAILURE TO BUILD APARTMENTS THAT ARE ACCESSIBLE TO PERSONS WITH DISABILITIESThe U.S. Department of Housing and Urban Development (HUD) today announced that it is charging a Chicago developer and architect with housing discrimination for designing and constructing apartments that fail to meet the accessibility requirements of the Fair Housing Act. HUD’s charge contends that Hector Castillo, Hector Castillo Architects, Inc., and 914 W. Hubbard, Inc. is inaccessible to persons with disabilities in several ways, including having doorways that are too narrow, and kitchens and bathrooms that do not contain adequate maneuvering space. July 27, 2010
Refinancing Mortgage Often Smart Even if You Have to PayAt the height of the housing boom, refinancing was doubly rewarding: You could lower your monthly payment and extract some cash to spiff up the kitchen. With mortgage rates at record lows, refinancing still offers the promise of lower monthly payments. But forget about that Sub-Zero refrigerator. Instead of taking cash out, you may have to pay cash upfront when you refinance. Here’s why: If the loan-to-value ratio of your new loan is above 80%, a lender will probably require you to pay private mortgage insurance, which could wipe out the benefits of reducing your interest rate. You may also be ineligible for the lowest rates. July 27, 2010
Cities View Homesteads as a Source of IncomeGive away land to make money? It hardly sounds like a prudent scheme. But in a bit of déjà vu, that is exactly what this small Nebraska city aims to do. Beatrice was a starting point for the Homestead Act of 1862, the federal law that handed land to pioneering farmers. Back then, the goal was to settle the West. The goal of Beatrice’s “Homestead Act of 2010,” is, in part, to replenish city coffers. The calculus is simple, if counterintuitive: hand out city land now to ensure property tax revenues in the future. July 27, 2010
Don’t Hold Your Breath for a Bounce in Home PricesThought the housing crisis was over? Not quite. Despite four years of falling prices and recent signs that they were finally bottoming out, homes are expected to lose still more value in many metro areas over the next year. Parts of the country already pummeled by the housing crisis, like Las Vegas, Phoenix and Miami, will be hit hardest. But even some places that have rebounded or held up relatively well — including New York, Los Angeles and Washington, D.C. — will suffer, too. That’s the conclusion of economists who have been reducing their estimates for home prices as the outlook for the economic recovery has darkened. The number of homes for sale or headed for foreclosure is so high that they think prices will be even lower by next July. July 27, 2010
Debating the Securitization of MortgagesHas the securitization of mortgages been a great boon or a terrible curse? Assets backed by American mortgages enable global risk-sharing, but securitization may also have weakened lenders’ incentives to screen out bad borrowers and to renegotiate bad loans. And should the government continue to subsidize securitization through entities such as Fannie Mae and Freddie Mac? Since the crash, a counter-narrative has emerged that emphasizes the dark side of securitization. If mortgage issuers passed along the default risk to Freddie Mac and Fannie Mae or to the buyers of mortgage-backed securities, those issuers would have little incentive to screen borrowers properly. July 27, 2010
D.C. Area Housing Market Relatively Insulated From Downturn, Report FindsWhile the nation’s housing market struggles amid a sudden downdraft that has once again battered sales, the Washington region appears relatively insulated and poised for a turnaround. Home-buying activity in the second quarter was well above where it was in the comparable period a year ago, and homes sold more quickly and at higher prices, according to a study compiled by the Delta Associates consulting firm and Metropolitan Regional Information Systems, the local multiple listing service. July 27, 2010
D.C. Affordable Housing Law has Put Up a Goose EggNearly a year after the D.C. government put a contentious affordable housing provision into place, the policy has not created any new affordable homes. The city’s inclusionary zoning law went into effect Aug. 14 of last year. It requires builders of new multifamily properties of 10 units or more to provide 8 to 10 percent of the homes at below market rental rates or sale prices. In return, developers are permitted to build more total units. But according to a report by the D.C. Department of Housing and Community Development, no affordable units had been created under the new provision as of March. July 27, 2010
Home Shoppers Taking Fresh Look at RentingWhen Mark and Joanne Cleaver sold their 3,000-square-foot Arts & Crafts-style bungalow in Milwaukee earlier this year and relocated to Chicago, they did something they hadn’t done in 28 years: They became renters. As a 50-something couple who’d moved up the property ladder — from a starter condo to a Victorian duplex to a metro Chicago bungalow and then to the Milwaukee home they bought in 2004 — they never thought that they’d spend their middle years renting. But after selling their Milwaukee home in May for $13,000 less than they paid for it, a loss compounded by costly renovations and a 6 percent agent fees on the $280,000 selling price, they decided to embark on what Joanne Cleaver calls a “reset” of their life and real estate’s role in it. July 27, 2010
More Homeowners Get Help Outside of Federal ProgramDespite the attention given to the federal government’s $50 billion Home Affordable Modification Program (HAMP), a program to lower monthly mortgage payments for five years, the majority of financially distressed homeowners are getting alternative modifications through their lenders without any government involvement. In 2010, servicers completed more than 800,000 alternative modifications with borrowers, according to Hope Now, a consortium of counseling agencies, servicers and investors. Since its start in spring 2009, HAMP has produced only 389,198 permanent modifications through June. July 23, 2010
Mortgage Securities It Holds Pose Sticky Problem for FedThe Federal Reserve provided most of the money for new mortgages in the United States last year, effectively lending more than $1 trillion to American homeowners. Now the legacy of that extraordinary intervention is hanging over the central bank as it faces growing demands for an encore to help revive the flagging economy. While officials and economists generally regard the program as successful in supporting the housing market, it has left the Fed holding a vast pile of mortgage securities — basically i.o.u.’s from homeowners — that it does not want and cannot sell. July 23, 2010
Nevada Leads Nation in Unemployment, Foreclosures, BankruptciesDemocracy Now! broadcasts from Las Vegas, Nevada, the state with the highest unemployment rate in the nation. The official jobless rate in Nevada set an all-time high of 14.2 percent in June, according to a state report released on Monday. Nevada also leads the nation in foreclosures and bankruptcies. Amy Goodman speaks with Launce Rake of the Progressive Leadership Alliance of Nevada. July 23, 2010
Existing-home Sales Drop for Second Month; End of Tax Credit Seen as a CauseSales of previously owned homes dipped in June for the second consecutive month and are expected to keep dropping at least through the rest of the summer, now that a lucrative homebuyer tax credit has expired. Purchases of existing single-family homes, condominiums and townhouses fell 5.1 percent in June from May to a seasonally adjusted annual rate of 5.37 million, the National Association of Realtors reported Thursday. The results, which measure only completed transactions, are better than analysts expected and capture the lingering effects of the tax credit. To qualify, buyers had to sign a contract by April 30 and close on it by June 30 — though that closing deadline was recently extended to Sept. 30. July 23, 2010
Court Awards $700,000 to Victim of Foreclosure Rescue ScamA Maryland law designed to protect homeowners from so-called foreclosure rescue scams has paved the way for recent judgments in favor of property owners, including one of the largest for more than $700,000 to an Ellicott City woman. Susan Spicer, the homeowner, won her case late last month in Baltimore County Circuit Court against foreclosure consultant New Town Properties LLC and lender Royal Financial Services Inc. Her lawsuit accused the Owings Mills companies and principal Robert Hurd of stealing the equity in her home through a scam. July 23, 2010
Nearly 50 Percent Leave Obama Mortgage-aid ProgramNearly half of the 1.3 million homeowners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out. The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments. Friday’s report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the United States, economists say. July 23, 2010
U.S. Monthly House Price Index Rises 0.5 Percent From April to MayU.S. house prices rose 0.5 percent on a seasonally adjusted basis from April to May, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.8 percent increase in April was revised upward to 0.9 percent. For the 12 months ending in May, U.S. prices fell 1.2 percent. The U.S. index is 12.3 percent below its April 2007 peak. The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally adjusted monthly price changes from April to May ranged from -0.6 percent in the East North Central Division to +1.8 percent in the Pacific Division. July 22, 2010
HUD Accepting Complaints About Mortgage LendersThe Department of Housing and Urban Development said today that it would take complaints from individuals who believe they have been harmed by the practices of certain lenders who may have illegally denied mortgages because applicants were pregnant or on short-term disability. HUD may pursue the matter on behalf of individuals if the department learns of any possible violations, said Bryan Greene, the department’s deputy assistant secretary for fair housing enforcement programs. He said the department had reason to believe that more individuals might come forward. If the investigation uncovers any violations, the department plans to pursue them in court. “A judge can order that the lender cease the discriminatory practices, pay monetary damages to victims of discrimination, and impose civil money penalties for each violation,” Mr. Greene added. July 22, 2010
About 40% Leave Federal Mortgage Aid ProgramThe number of homeowners dropped from the Obama administration’s signature program to modify mortgages for cash-strapped homeowners is larger than the number of those receiving permanently lower monthly payments under the program. The program puts homeowners into five-year programs with lower monthly payments on their mortgages, but first they must provide proof of income and get through a three-month trial period making all payments on time. About 530,000 homeowners, or about 40% of 1.3 million borrowers enrolled, have had their lower mortgage payments canceled, the Treasury Department reported Tuesday. July 21, 2010
Making Home Affordable Program: Servicer Performance Report Through June 2010 July 21, 2010
OBAMA ADMINISTRATION HOUSING SCORECARD SHOWS CONTINUED INCREASE IN HOME AFFORDABILITY, NEIGHBORHOOD STABILIZATION, BUT CHALLENGEThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the second edition of the Administration’s Housing Scorecard showing that, thanks in part to interest rates continuing at all-time lows, home affordability in the U.S. remains near the most attractive levels in 10 years. In addition, for the first time, the report now tracks the impact of HUD’s Neighborhood Stabilization Program (NSP), which has spurred local investment and is beginning to make affordably-priced homes available to consumers. The Housing Scorecard is the Administration’s comprehensive report on the nation’s housing market. July 21, 2010
Home Construction Sinks in June, but Building Permits GainHome construction plunged last month to the lowest level since October as the economy remained weak and demand for housing plummeted. But building permit applications, a sign of future activity, rose 2.1% from a month earlier to an annual rate of 586,000. The Commerce Department says construction of new homes and apartments in June fell 5% from a month earlier to a seasonally adjusted annual rate of 549,000. May’s figure was revised down to 578,000. Driving the June decline in housing starts was a more than 20% drop in the volatile condominium and apartment market. Construction of single-family homes, the biggest part of the market, dropped only 0.7%. July 21, 2010
Obama’s Next Focus of Reform: Housing FinanceAfter President Obama signs into law an overhaul of financial regulation at a ceremony set for Wednesday, his administration will turn to reforming an area at the root of the financial crisis: the U.S. housing market. Responding to the collapse in home prices and the huge number of foreclosures, the Obama administration is pursuing an overhaul of government policy that could diverge from the emphasis on homeownership embraced by former administrations. July 21, 2010
Bankruptcy Can Save Your House From ForeclosureSlick TV commercials and online ads tell delinquent borrowers that they can save their homes by filing for personal bankruptcy. But is it true — or just too good to be true? True! Bankruptcy can bring foreclosure proceedings to a halt, end harassment from debt collectors, and give borrowers time to make up missed payments and reorganize their finances. In some cases, bankruptcy can also help mortgage borrowers save their homes permanently. It’s not, however, going to help every troubled homeowner. If, for example, the homeowner’s biggest problem is not enough money, bankruptcy is not going to solve that. July 21, 2010
Foreclosures Hit Suburban Condo MarketSome of the most recent Chicago-area homes to enter foreclosure are hard to spot. There are no weedy front yards or plywood-covered windows. That’s because they are condos. While single-family homes continue to represent the bulk of initial foreclosure filings in the Chicago area, the rate at which condominiums are entering the foreclosure process, particularly in parts of suburban Cook County, is startling, according to a study to be released Wednesday. July 21, 2010
NC. Measure Would Make Some Military Home Foreclosures More DifficultThe North Carolina legislature this month approved a bill designed to help military service members who fall behind on their mortgages. If signed into law by Gov. Bev Perdue - and her office says she expects to to sign it - the new law would make it more difficult for lenders to foreclose and sell the homes of military personnel who fall behind on mortgage payments. But the new law applies only in a limited circumstance: The service member had to borrow the money before going on active duty. July 21, 2010
Over 25% of Us Have Nasty Credit Scores, but They’re FixableThe financial reform bill President Obama is expected to sign this week requires lenders to give customers who have been turned down for a loan a copy of the credit score used to make that decision. Lenders will also be required to give you a free credit score if you’re offered a loan with a higher interest rate than the rate offered to borrowers with excellent credit. The requirement won’t be limited to lenders. You’ll be entitled to receive a copy of your credit score any time it results in an “adverse action” against you, which could include everything from a higher auto insurance premium to a landlord’s refusal to rent you an apartment. July 20, 2010
Real Estate Doldrums on Gulf Coast BeachesNick Wilmott bent down on the beach near the high-tide mark and touched one of the reddish-brown pads of oil. It had washed up overnight from the BP spill off Louisiana and had yet to be cleaned up by the machines that sweep the beaches here every night. “Here’s your problem,” said Mr. Wilmott, president of the Baldwin County Association of Realtors. “Imagine we’re on the balcony of a condo that I’m trying to sell you, and you look out and see this.” Sales of beachfront condominiums and homes have plummeted since late April, when oil started gushing into the Gulf of Mexico after the explosion of the Deepwater Horizon rig. Property values are dropping, and the number of apartment rentals is half what it usually is. July 20, 2010
Need a Mortgage? Don’t Get PregnantExpectant parents shopping for a home are not the only ones concerned about the date of the baby’s arrival. Mortgage lenders are taking a harder look at prospective borrowers whose income has temporarily fallen while they are on leave, including new parents at home taking care of a baby. Even if a parent plans on returning to work within weeks, some lenders are balking at approving the loans. Back in the slapdash days of easy credit, lenders were more likely to overlook the fact that a parent was out on maternity or paternity leave. But now that lenders have become more conservative, they are requiring new parents to jump through more hoops to prove their income will be enough to cover the mortgage. July 20, 2010
Stricter Rules Likely to Make Fewer Eligible for City Rent SubsidiesNadeah Rasheed got an offer in 2008 that she could not refuse: find a stable job and the city would pay virtually all her rent. If everything went as planned, she and her two daughters would leave homelessness behind forever. But now that her two years of subsidies have run out and the city’s vouchers have stopped arriving, Ms. Rasheed, 43, faces eviction and finds herself on the brink of returning to a shelter. “I’m hopeless,” said Ms. Rasheed, who earns $270 a week from a job at a J. C. Penney store in the Bronx, adding, “I can’t do anything.” Many of the city’s poorest families may soon confront a similar fate. A weak job market and a scarcity of affordable housing options are putting new pressure on a signature antipoverty effort of the Bloomberg administration. July 20, 2010
Finding Community in the ShadowsFor three years, Andrea Star Reese, a former filmmaker, has been photographing homeless people living in West Harlem. Her first project, “The Urban Cave,” will be exhibited at Visa pour l’Image, the international festival of photojournalism held in Perpignan, France, beginning Aug. 28. James Estrin met with Ms. Reese, 58, in New York, where she lives. July 20, 2010
N2Care Debuts MedCottage, A Portable Dwelling for Elder RelativesA small Virginia firm hoping to revolutionize the way Americans care for aging family members has unveiled its first prototype of a portable, high-tech dwelling that would provide temporary shelter for a sick or elderly relative in their family’s back yard. On Monday, N2Care, a company formed by a Methodist minister in Salem, Va., showed off its first MedCottage, a 12-by-24-foot prototype filled with biometric technology that would allow a family and health-care providers to monitor the condition of an aging or disabled relative. The cottage contains air-filtration systems, video links, devices that allow the remote monitoring of vital signs and sensors that could detect an occupant’s fall. July 20, 2010
Curb Ramps Being Redone in Detroit to Comply with Federal LawNearly five years after a federal judge ordered the City of Detroit to comply with the Americans with Disabilities Act by installing curb ramps at intersections, several streets still have not been fitted with properly constructed access ramps. That’s because hundreds of curb ramps that enable physically disabled or impaired people to cross city streets were improperly installed and are now being redone.By the end of the year, $41.2 million will have been spent on getting the city in compliance with the federal act. July 20, 2010
Fannie Mae Gets Tough on ‘Strategic’ Mortgage DefaultsBorrowers who walk away from mortgages they can afford to pay — making “strategic defaults” — are running increasing risks that they’ll be penalized for doing so. Starting in October, Fannie Mae says, strategic defaulters will be disqualified for new Fannie Mae-backed loans for seven years after their foreclosures. Fannie also says it will go to court where it can to recoup outstanding mortgage debt from borrowers who strategically default. July 19, 2010
JUDGE ORDERS IOWA LANDLORD TO PAY $52,150 TO RESOLVE HOUSING DISCRIMINATION CASEThe U.S. Department of Housing and Urban Development (HUD) today announced that a HUD Administrative Law Judge has ordered an Iowa landlord to pay $52,150 in damages and civil penalties for retaliating against a single mother of three by threatening to evict her because she filed a housing discrimination complaint. July 19, 2010
HUD RETAINS GILMORE KEAN, LLC TO LEAD NEW ORLEANS HOUSING AUTHORITYAfter conducting a competitive national search for a long-term administrator to lead the Housing Authority of New Orleans (HANO), the U.S. Department of Housing and Urban Development announced today that the current receivership team, Gilmore Kean, LLC will continue to lead the agency from recovery to revitalization over the next three years. “In less than a year, David Gilmore and his team have done a tremendous job stabilizing and strengthening operations at HANO,” said HUD Assistant Secretary Sandra Henriquez. “Hands down, we feel this team is the most qualified candidate for this assignment.” July 19, 2010
Furniture to be Greener, but PricierA law signed this month by President Obama limiting the amount of formaldehyde in wood is expected to lead to higher furniture and cabinet prices, but healthier — and greener — homes. It’s also likely to increase consumer awareness of a little-known chemical and its effects. Formaldehyde, which is used in many building materials, is linked to cancer and has long been known to cause respiratory problems. July 19, 2010
Rescued From Blight, Falling Back Into DecayHundreds of buildings, from the South Bronx to central Brooklyn, whose renovation and rescue from ruinous debt were critical to the rebirth of blighted neighborhoods, are again in severe financial trouble. That poses a dilemma for the city, which began unloading the properties in the mid-1990s as part of an arduous effort to divest itself of thousands of decrepit buildings seized because of tax delinquencies. Filled with unemployed tenants unable to make rent or mortgage payments and squeezed by soaring city fees, about 442 buildings are in serious default on property taxes and far behind on municipal bills. July 19, 2010
Restoring New York Streets to Their Bumpier PastsApproximately 15 miles of cobblestone still remain in the five boroughs, according to the New York City Department of Transportation, mostly preserved in historic districts including SoHo, Greenwich Village and Brooklyn Heights. Now, a few cobblestone projects are under way around the city. Stone Street in the financial district, which city officials say was one of the first cobblestone streets, was recently restored to its original state. Water, Washington and Old Fulton Streets in Brooklyn are also under construction, scheduled for completion by September 2011. Cobblestones are being installed for the 9/11 memorial scheduled to open on the 10th anniversary of the attack. July 19, 2010
Hurricane Katrinia: 5 Years LaterRebuilding the city’s flood-protection system has been a costly and time-consuming process — five years and $14 billion — and it’s not finished yet. Still, though all agree that the new system is an improvement over what existed pre-Katrina, some insist it’s not enough. July 17, 2010
Financial Overhaul and You: Mortgages, Debit Cards, More …Lenders would no longer be allowed to pay mortgage brokers a commission based on the interest rate for a home loan. Critics have charged that this fee, known as the yield spread premium, encourages mortgage brokers to steer borrowers into risky loans with high interest rates. The law would bar brokers from receiving any compensation tied to the terms of the loan, other than the principal amount. The yield spread premium “is sort of a secret deal between the lender and the broker” that often ends up hurting the consumer, says Ruth Susswein, deputy director for Consumer Action. July 16, 2010
HUD ALLEGES ADS BY DENVER AREA CONDO ASSOCIATION DISCRIMINATE AGAINST FAMILIES WITH CHILDRENThe U.S. Department of Housing and Urban Development (HUD) announced today that it has charged a Denver condominium association with violating the Fair Housing Act by discriminating against families with children under the age of 18. According to HUD’s charge, Windsor Gardens Association allegedly maintained discriminatory restrictions and published discriminatory statements and advertisements that limited or denied housing to families with children. One statement read: “Head of household must be 50 years of age; children under the age of 17 are not permitted.” July 16, 2010
Extra Credit Checks Required by Fannie Make Some Lenders AnxiousPeople who applied for a mortgage as of June 1 might see their finances — specifically their debt — under renewed scrutiny days before they are scheduled to complete a home purchase. Fannie Mae, the giant government-run mortgage finance company, rolled out a new policy this summer that encourages lenders to retrieve a borrower’s “refreshed” credit report just before a loan closes. The goal is to check whether the borrower has taken on additional debt or opened new lines of credit since applying — such as a second mortgage or an auto loan. Such new debt could undermine the ability to repay the mortgage. July 16, 2010
Federal Regulator Subpoenas Firms as Fannie and Freddie Attempt to Regain LossesA federal regulator subpoenaed mortgage lenders and other companies for loan documents Monday in an effort to reclaim funds they may owe government-backed firms Fannie Mae and Freddie Mac.In the years of the housing boom, Fannie and Freddie bought hundreds of billions of dollars in investments known as private-label securities. Those securities often comprised subprime loans and other risky mortgages. Fannie and Freddie insist that they were sold billions of dollars of these loans on deceptive grounds — and that the companies that sold them the loans should be held responsible for their heavy losses on them. July 16, 2010
Study Finds Fraud, Abuse in Md. Energy ProgramAbout 11,000 dead people in seven states, including Maryland, have gotten government heating aid over the past year or so, according to congressional investigators. They say that the grave is cold, but it’s illegal to receive energy subsidies when your address is six feet under. Plenty of other Marylanders may also be ripping off the $5 billion Low-Income Home Energy Assistance Program, to judge from last month’s report from the U.S. Government Accountability Office. In the seven states, the GAO found households receiving more than $100 million in benefits even though recipients weren’t sufficiently documented on state records as being eligible. July 16, 2010
A Luxury Getaway, That Really is Getting AwayHomes that cost $10 million or more are expected to boast certain luxuries, and the gated compound called The Brentwood has all the amenities a trophy home should: a three-tiered screening room, billiards hall equipped with wet bar, master bathroom with a fireside Jacuzzi and 10-spigot shower, guest homes, lushly wooded surroundings, tennis court and boat dock. What’s unusual about the Brentwood is its location: Big Chippewa Lake, Minn. Two hours outside Minneapolis, it is worlds away from moneyed areas like Beverly Hills, Calif. or Vail, Colo., where the vast majority of astronomically expensive homes are clustered. July 16, 2010
Detroit Water Department Land Deal Has Suburbs SteamingSuburban officials told the Free Press this week that the City of Detroit may have tried to shift part of the expense for a $34-million planning blunder to suburban water customers by selling 3 acres along the Detroit River to the water system for more than $17 million. The parcel just east of the Renaissance Center, which the Detroit Water and Sewerage Department plans to use for a sewage retention basin, was part of 6.6 acres the city acquired for casino development. After litigation and interest costs, the city paid $34 million for the property. In 2008, the city sold half the property to the water system, for more than $17 million — more than $5 million per acre. July 16, 2010
Mortgage Aid Calls Crash System; 17,000 to QualifyDay one of Michigan’s plan to help unemployed people hang on to their homes started with long telephone hold times, a lack of information and frustration for some. The Michigan Hardest Hit program could help up to 17,000 unemployed or underwater borrowers keep their homes with $154.5 million in federal funds. But because it is not mandatory for lenders to participate, the state was still waiting to hear from large mortgage servicers such as Bank of America and Citibank. By 10 a.m., the state had already been hit with 30,000 calls. Later in the day, its phone system crashed. July 16, 2010
1.65 Million Properties Receive Foreclosure Filings in First Half of 2010RealtyTrac® (http://www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Midyear 2010 U.S. Foreclosure Market Report, which shows a total of 1,961,894 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,654,634 U.S. properties in the first six months of 2010, a 5 percent decrease in total properties from the previous six months but an 8 percent increase in total properties from the first six months of 2009. The report also shows that 1.28 percent of all U.S. housing units (one in 78) received at least one foreclosure filing in the first half of the year. July 16, 2010
Mobile Home Parks are Invisible Pawns in Battle Over Saltworks ProjectIn one of the most contentious development fights in the Bay Area’s recent history, America’s largest private company, Cargill Inc., and Arizona-based luxury home developer, DMB Associates, propose to build a new city of 30,000 people on retired salt ponds in Redwood City. The development, which would build 12,000 new units, has been fiercely contested by environmentalists, led by Save the Bay, who seek to restore the salt ponds back to tidal marsh. July 16, 2010
Foreclosure Could Claim More Than 1 Million Homes in 2010More than 1 million U.S. households could lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans, according to RealtyTrac, a foreclosure tracking service. Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, RealtyTrac says. July 15, 2010
Land Ownership at the Crux of Haiti’s Stalled ReconstructionSix months after the earthquake, many Haitians told us they have seen little in terms of recovery efforts despite the billions of dollars in aid pledged from around the world. At the heart of the matter is the issue of land ownership. Democracy Now! speaks with journalist Kim Ives of Haiti Liberté. In his latest article, he writes the way the Interim Commission to Reconstruct Haiti is dealing with the issue of land “is the Haitian equivalent of the US bank bailout.” July 15, 2010
A Queens Development Raises Ethnic TensionsDevelopers see an opportunity to cash in on a thriving area already bursting at the seams. Outside Times Square, according to city transportation officials, Flushing is home to the city’s busiest transportation hub and intersection, Main Street and Roosevelt Avenue, about two blocks from the parking lot. A builder from Manhattan and another from Flushing, whom the city chose in 2005, have pledged to spend $850 million on 600 new housing units, 420,000 square feet of commercial space, a Y and a park on the five-acre lot. As with any other large project, opponents quickly rose up to criticize the scope of the plan. But the project, named Flushing Commons, has also revealed deeper tensions in the overwhelmingly Asian neighborhood, divisions that cut largely across lines of neighbors’ country of origin. July 15, 2010
NYC: After High Line’s Success, Other Cities Look UpPhone calls and visitors and, yes, dreams from around the world are pouring into the small offices of the Friends of the High Line on West 20th Street in Manhattan these days. Detroit is thinking big about an abandoned train station. Jersey City and Philadelphia have defunct railroad beds, and Chicago has old train tracks that don’t look like much now, but maybe they too. The High Line’s success as an elevated park, its improbable evolution from old trestle into glittering urban amenity, has motivated a whole host of public officials and city planners to consider or revisit efforts to convert relics from their own industrial pasts into potential economic engines. July 15, 2010
Wrong Tax Bills Sent to Nearly 8,000 Baltimore HomeownersAn error in the state’s computerized property records prompted Baltimore tax collectors to send incorrect bills to nearly 8,000 city homeowners in the last few weeks — including some who were told they were overdue to the tune of thousands of dollars. Owen C. Charles, supervisor of the state Department of Assessments and Taxation office in Baltimore, said a programming mix-up in his office’s database of city properties changed the dollar amount of tax credits the homeowners were due. Once the wrong information got to the city, it was automatically used to generate bills. Some homeowners received past-due notices for the tax year that ended June 30. Others were sent incorrect bills for the current year, with an amount owed that was either too high or too low. July 15, 2010
OBAMA ADMINISTRATION ANNOUNCES MORE THAN $550 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PERSONS WITH DISABILITIESThousands of senior citizens and persons with disabilities will soon be able to find affordable housing, thanks to more than $550 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). The funding will provide interest-free capital advances to non-profit developers so they can produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities. The grants are provided through HUD’s Section 202 and Section 811 Supporting Housing programs. They will fund 169 projects in 46 states. July 13, 2010
Empire State Building Goes Green, One Window at a TimeThe building, for four decades the world’s tallest and still the tallest in New York, is spending $13 million on windows, insulation and other upgrades to cut energy use by 38% and save about $4.4 million a year. Never has a structure so old and so tall gone so green. “It’s the most recognizable building energy retrofit in the world,” says Arah Schuur, director of a conservation program at former president Bill Clinton’s foundation If you can retrofit the Empire State Building, you can retrofit anything, says Kevin Surace, president of Serious Materials. July 13, 2010
U.S. Trying to Recoup Some Fannie, Freddie LossesA federal regulator is taking steps that could lead to the recovery of some losses sustained by mortgage giants Fannie Mae and Freddie Mac. The Federal Housing Finance Agency said Monday it is looking to get back money that the two government-controlled companies have lost on mortgage securities packaged and sold by Wall Street firms. During the housing market’s boom years, the two government-sponsored companies snapped up those securities, which contained some of the riskier loans made during the housing boom years. But they declined dramatically in value after the market went bust. July 13, 2010
Mortgage Rates Drop to Record Low of 4.57%, Says Freddie MacMortgage rates fell for the second straight week to the lowest point in five decades. But many people either don’t qualify for new mortgages or have already taken advantage of the low rates this year. As a result, the housing market and the broader economy may not benefit much from the lower rates. The average rate on a 30-year fixed mortgage dropped to 4.57% this week, mortgage company Freddie Mac reported Thursday. That’s down from the previous record low of 4.58% set last week. It’s the lowest since Freddie Mac began tracking rates in 1971. The last time rates were lower was in the 1950s, when most long-term home loans lasted just 20 or 25 years. July 9, 2010
FHA ANNOUNCES ENHANCED RISK MANAGEMENT AND INCREASED OVERSIGHT OF MULTIFAMILY LENDERS AND UNDERWRITERSAs part of the Federal Housing Administration’s (FHA) ongoing efforts to enhance risk management practices, Commissioner David H. Stevens today announced plans to implement a series of changes to the multifamily insurance programs that will update underwriting policies, increase lender and underwriter quality, and align loan application, submission and approval standards. FHA’s Multifamily Program Office consulted with stakeholders to bring these changes to market. The policy changes announced by Mortgage Letter 2010-21 will affect all multifamily rental programs. July 9, 2010
Fannie, Freddie to Trade Over-The-Counter, Delisted from NYSEShares of Fannie Mae and Freddie Mac will begin trading over-the-counter Thursday, nearly a month after the government-sponsored mortgage buyers said they could no longer meet the requirements of companies listed on the New York Stock Exchange. Freddie Mac’s common stock, now unlisted, will trade under the symbol “FMCC.” Investors will be able to trade Freddie Mac’s 20 classes of preferred stock. Fannie Mae’s common stock will trade under the symbol “FNMA.” Its preferred shares also will be listed. July 9, 2010
The Ecology of ForeclosuresTwo years ago, when I began writing about the housing crisis, I got to know a bungalow in Sulphur Springs, a Tampa, Fla., neighborhood that was famous in the 1920s for its sprawling oaks, giant water slide and shopping arcade, but which is now a ghetto. The oaks are still mostly there, but the water slide is long gone, the arcade a parking lot for a dog track. Suffer Springs is what a lot of folks call it these days. July 9, 2010
Biggest Defaulters on Mortgages Are the RichNo need for tears, but the well-off are losing their master suites and saying goodbye to their wine cellars. The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves like this one in Silicon Valley. Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population. July 9, 2010
Monitor Again Rejects Westchester Housing PlanFor the second time in the 11 months since Westchester County signed a landmark housing desegregation agreement, a federal monitor has rejected its plan to create hundreds of homes for moderate-income people in predominantly white communities. The court-appointed monitor, James E. Johnson, said that while the county “has made progress on a number of aspects” of the plan, “the revised submission still falls short of a true plan to comply with either the stipulation’s specific terms or its overarching goal of building a more integrated Westchester.” He told the county to try again. The stipulation, agreed to last August, settled a federal lawsuit filed by the Anti-Discrimination Center, a fair-housing advocacy and litigation group based in New York City. July 9, 2010
Md. Mortgage Program Offers Enticement to BRAC BuyersA state mortgage program aimed primarily at first-time buyers is lowering its interest rate and setting aside $100 million to lure people relocating as part of the military’s base realignment and closure initiative. Officials want to help those buyers and aid the region’s still-struggling housing market at the same time. Thousands of federal workers and contractors are moving to take jobs at Aberdeen Proving Ground, Fort Meade or one of several other installations in Maryland as part of the base changes, known as BRAC. Officials say the mortgage program would give them a reason to buy rather than rent — or commute, as those now based in Northern Virginia could do. July 9, 2010
The Big Thinking in Condos Now Is To Get SmallGorbokon’s attitude about real estate is typical of her generation’s, says John McIlwain, a senior fellow for housing at The Urban Land Institute in Washington D.C. McIlwain says many new in-city condo and apartment buildings are offering smaller footprints to satisfy not only downsizing Baby Boomers but, especially, members of Generation Y who are moving out of dorms and parents’ places and setting up their own households. Generation Y, he says, views a home’s location as more important than its size. They may also see living small and in-city as an environmentally responsible lifestyle. July 9, 2010
Despite a Rare Pedigree, Plan for Affordable Housing CollapsesThe deal was brokered recently in private by an unusual team of rivals, including one of San Francisco’s most prominent developers and a vociferous housing activist. The result, by all accounts, was unprecedented: an estimated $50 million for affordable housing in the city each year. One developer who participated in the negotiations, which took place over the last six weeks in a City Hall annex, described the agreement as a “once-every-50-years alignment of the planets.” July 9, 2010
Chicago’s Foreclosure EpidemicIn the Austin neighborhood on the city’s far west side, 14 houses in a single block are in foreclosure. Several are boarded up, and the lawns have turned into small overgrown fields. At least 28 families have been displaced from these homes. Other foreclosures are not so obvious. In some cases, families were forced out before they even had time to move, and their houses sit fully furnished, waiting to be broken into. July 9, 2010
Regulators Push for Home Energy-Efficiency Program To be Put on HoldA program that encourages homeowners to take on debt to make their homes more energy efficient could damage the already fragile mortgage system and leave homeowners at risk, financial regulators said Tuesday. The Federal Housing Finance Agency (FHFA), which oversees mortgage finance giants Fannie Mae and Freddie Mac, urged state and local governments to put the program on hold and reconsider it. The initiative enables homeowners to install insulation, new windows and the like using loans that get tacked onto their property tax bills. The loans typically place a first lien on the property, meaning they leapfrog ahead of mortgages in line for repayment. The loans stay with the property if it is sold or foreclosed upon. July 7, 2010
Strategic Defaults Give Mortgage Lenders Challenge: Those Who Can Pay But Don’tWith tougher mortgage underwriting rules a virtual certainty under Congress’s financial reform legislation, lenders have begun confronting still another vexing issue: Can homebuyers who have high credit scores be trusted not to pull the plug — strategically default — when the economy hits a rough patch and home values tank? July 6, 2010
Allied Mortgage Company Survives Despite Repeated SanctionsAs his competitors imploded one by one, Jim Hodge, the folksy founder of Allied Home Mortgage Capital, touted his sprawling Houston firm as a survivor. Not only was Allied still standing, Hodge told employees in a company newsletter in December, it was thriving. “The good news,” Hodge wrote, “is that even though we are all having to work harder, most branches are making lots of money.” But an examination of Hodge’s mortgage company by ProPublica found that its prosperity has come at a price for dozens of customers who claim Allied brokers have put their homes at risk, lied to them or improperly siphoned money from their deals. July 2, 2010
HUD RELEASES 2009 AMERICAN HOUSING SURVEYMost families with young children live within a mile of a public elementary school. The most common home heating fuel in the U.S. is gas. Only a third of American homes have a working carbon monoxide detector. These are just some of the findings of a comprehensive national sample of the more than 130 million residential housing units released today by the U.S. Department of Housing and Urban Development. HUD’s 2009 American Housing Survey (AHS) is the most thorough look inside the homes of millions of Americans and reveals everything from the square footage of the unit to how many homes have front porches, garages or even usable fireplaces. July 2, 2010
At Age 30, Harborplace Shifting Gears to Cater More to Area Residents, WorkersThirty years after the opening of Baltimore’s Harborplace pavilions triggered a wave of redevelopment along the city’s shoreline, owners are planning sweeping changes that they say will bring in new retailers and restaurants and help attract local residents and office workers as well as tourists. Representatives for General Growth Properties, the owner of Harborplace, say they are close to signing leases with three large tenants that would fill much of the vacant space inside the two waterside pavilions by next spring. The goal, they say, is to adjust the tenant mix so Harborplace is seen less as a “seasonal” attraction aimed at tourists and conventioneers and more as a year-round destination for downtown office workers and people who live nearby. July 2, 2010
“Green Housing for the 21st Century: Retrofitting the Past and Building an Energy Efficient Future” July 1, 2010
Mortgage Applications for Purchase Drop AgainLow interest rates are doing little to motivate home buyers, which could point to a sharp drop in sales later this summer. Mortgage applications for purchases fell again last week, the seventh time in the past eight weeks, the Mortgage Bankers Association reported Wednesday. The MBA’s purchase index remains at 13-year lows despite the lowest interest rates in decades. The average rate on a 30-year, fixed mortgage was 4.69%, down from 5.42%a year ago, Freddie Mac said last week. Its latest weekly survey on mortgage rates is Thursday, July 1st. July 1, 2010
Black Landowners Fight to Reclaim Georgia HomeWhen the managers from the federal Fish and Wildlife Service talk about this 2,800-acre preserve of moss-draped cypress, palmetto and marsh, they speak of endangered wood stork rookeries and disappearing marsh habitat, dike maintenance and interpretive kiosks. But when the members of the Harris Neck Land Trust talk about it, they speak of injustice, racism and a place they used to call home.In 1942, Harris Neck, a thriving community of black landowners who hunted, farmed and gathered oysters, was taken by the federal government to build an airstrip. Now, the elders — who remember barefoot childhoods spent climbing trees and waking to watch the Canada geese depart in formation — want to know why they cannot have it back. July 1, 2010
Banned Trailers Return for Latest Gulf DisasterIn the wake of Hurricane Katrina, they became a symbol of the government’s inept response to that disaster: the 120,000 or so trailers provided by the Federal Emergency Management Agency to people who had lost their homes. The trailers were discovered to have such high levels of formaldehyde that the government banned them from ever being used for long-term housing again. Some of the trailers, though, are getting a second life amid the latest disaster here — as living quarters for workers involved with the cleanup of the oil spill. They have been showing up in mobile-home parks, open fields and local boatyards as thousands of cleanup workers have scrambled to find housing. July 1, 2010
In Manhattan, Apartment Sales Rose but Prices Were FlatThe number of apartments sold in Manhattan rose significantly in the last three months, but prices were flat, with some categories dipping slightly compared with the previous quarter, according to sales reports to be released on Thursday by the city’s largest brokerage firms. The reports showed that there were 80 percent more transactions in the second quarter of this year than the same period in 2009 and 15 percent more than the previous quarter of this year, a return to historically normal levels after a virtual standstill early last year. But even though brokers are reporting much heavier traffic at open houses and bidding wars on certain properties, prices have not rebounded. July 1, 2010
Deal Restores Public Housing SubsidiesA brewing housing crisis that could have resulted in thousands of struggling families losing their rental subsidies has been averted, officials said, thanks to an intricate $32 million plan devised by city and state agencies that received federal approval on Wednesday. Under the plan, the city’s Department of Housing Preservation and Development will basically rescue the city’s public housing authority by taking responsibility for financing thousands of rental subsidy vouchers. The rental subsidies, meted out under a program called Section 8, enable recipients to put 30 percent of their income toward rent at private apartments while vouchers pay for the rest. The city’s public housing agency, the New York City Housing Authority, administers about 100,000 of the vouchers with money provided by the federal government. July 1, 2010
Loan Giants Threaten Energy-Efficiency ProgramsThe Obama administration is devoting $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills. At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they might not accept loans for homes that take advantage of the special financing. The mixed messages have alarmed state officials and prompted many local governments to freeze their programs, which have been hailed as an innovative way to help homeowners afford the retrofitting of a house with solar panels, which can cost $30,000 or more before incentives. July 1, 2010
Financial Overhaul Wins Final Approval in HouseThe House on Wednesday adopted legislation to revamp the nation’s financial regulatory system, voting mostly along party lines as partisan acrimony impeded cooperation even on the shared goals of averting future economic crises. The vote in the House was 237 to 192, with all but three Republicans standing in opposition to a measure that President Obama in his State of the Union speech said embodied one of the highest priorities of his administration: “serious financial reform.”“If this bill were to fail,” the House speaker, Nancy Pelosi, said, “We would be preserving a status quo that has left our economy in a wretched state.” July 1, 2010
Title Agency Head Indicted on Fraud ChargesLike many homeowners facing a teetering economy, Suzanne Hall decided to refinance her Cockeysville home. She wanted out of her adjustable-rate mortgage, so she locked in a conventional, 30-year fixed loan with PNC Bank. Her interest rate was to drop from 6.5 percent to 5 1/8 percent, translating into a $150 a month savings on her payments. Maple Leaf Title took $379,258.17 from PNC Bank and was supposed to pay off Hall’s old loan through MetLife. But the money never reached its destination, federal prosecutors said, and instead was pocketed by the Towson-based title company. July 1, 2010
Lax Oversight Enables Title-insurance CrooksIn January 2009, as financial markets burned and the Bernard Madoff scandal broke, an alarmed lawyer asked Maryland Title Co. owner George Sybert Sr. about a bounced check from a mortgage-closing escrow account. Sybert admitted taking $300,000 out of the account. Investigators later discovered that he actually took $690,000 by forging the lawyer’s name on two checks, according to documents from the Maryland Insurance Administration and prosecutors. And that was only the beginning of the grim accounting. Last week Sybert, 67, was sentenced to eight years in prison after pleading guilty to stealing nearly $6 million from clients, banks and the lawyer. July 1, 2010
CA: Ripon Couple Accused of Stripping Foreclosed HomeA married couple stand accused of stripping up to $100,000 in light fixtures, appliances, interior doors and more from their foreclosed Ripon home and then trying to sell the valuables back to the new owners. John and Janette Freitas face a three-count criminal complaint filed in San Joaquin County Superior Court charging them with grand theft, extortion and attempted extortion - all felonies. They’re due in a Stockton courtroom today for arraignment. San Joaquin County Deputy District Attorney Stephen Taylor said this is one in a stack of similar cases his office is filing against people who are up to such outlandish things as digging up trees and taking down fences while vacating their foreclosed homes. July 1, 2010
House Votes to Extend Home Buyer Credit 3 MonthsHomebuyers would get an extra three months to complete their purchases and qualify for a generous tax credit under a bill overwhelmingly passed by the House on Tuesday. Under current law, homebuyers who signed purchase agreements by April 30 have until Wednesday to close on the sale to qualify for tax credits of up to $8,000. The bill would give buyers until Sept. 30 to complete their purchases. The extended deadline only applies to people who signed purchase agreements by April 30. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the Wednesday deadline. June 30, 2010
HUD ACCUSES NEW YORK APARTMENT MANAGEMENT COMPANY WITH DISCRIMINATING AGAINST CHILD WITH DISABILITIESThe U.S. Department of Housing and Urban Development today announced that it is charging an Albany, New York-area apartment management company with violating the Fair Housing Act by denying a child who has disabilities a reasonable accommodation and retaliating against her family. According to HUD’s charge, Paulsen Development Company effectively barred the child from using the apartment complex swimming pool by prohibiting her needed service animal from accompanying her. After her mother complained to HUD, the company refused to renew their lease. June 30, 2010
Year After Evacuation, Brooklyn Tenants Still Aren’t Back HomeIt is not the most obvious form of home improvement: hacking away at a building’s foundation until the entire structure threatens to collapse. Yet that is precisely what displaced tenants of a modest Brooklyn apartment building have accused their landlord of having done. The building, at 172 North Eighth Street, is a four-story, eight-unit red-brick walk-up that sits close to Bedford Avenue, in the middle of trendy, youth-centric Williamsburg. Aside from a few tenants’ brief return two weeks ago — after they broke a front-door padlock to get in — the building has been vacant for a year. In June 2009, the city Buildings Department ordered an evacuation because of what it said was illegal excavation work that compromised the stability of the building. June 30, 2010
Kenneth Harney: Foreclosure Alternative Gaining FavorShort sales have been the hot solution for financially stressed homeowners and their lenders for the past year, but here’s another potent foreclosure alternative that’s about to take center stage: deeds in lieu. Some of the largest mortgage servicers and lenders in the country are gearing up campaigns to reach out to carefully targeted borrowers with cash incentives that sometimes range into five figures, plus a simple message: Let’s bypass the time-consuming hassles of short sales and foreclosures. Just deed us the title to your underwater home, and we’ll call it a deal. June 29, 2010
Northern Overexposure?The Olympics are over, and the Village is for sale. The complex in Vancouver, British Columbia, that housed the athletes during the 2010 Winter Olympics has been converted into 1,100 luxury condos. About 450 have been pre-sold, and the sales of the remainder may well render a verdict on a mystery that looms over this city like Grouse Mountain: Did Canada prudently steer its way clear of the worst of the financial crisis only to be rewarded with a massive housing bubble of its own? June 29, 2010
Fannie Mae Gets Tough on Homeowners Who Walk AwayGovernment-sponsored mortgage purchaser Fannie Mae is trying to encourage distressed homeowners to find alternatives to foreclosure by banning those who walk away from getting new loans for seven years. Troubled borrowers who do not try in good faith to work out a deal, but have the capacity to pay, are targeted by the policy announced Wednesday. “Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting,” said Terence Edwards, executive vice president for credit portfolio management. June 24, 2010
Mortgage Application Volume Falls Off Last WeekMortgage applications volume dropped off by 5.9% last week even as mortgage rates decreased, a sign the housing market is struggling with government incentives, according to a report Wednesday from the Mortgage Bankers Association. Refinancing activity fell 7.3% on an adjusted basis during the week ending June 18, compared with the previous week. Purchase volume slipped 1.2%. Customers looking to refinance existing mortgages accounted for 73.8% of total applications, down from 74.8% the previous week. June 24, 2010
NYC: Gem Tower Tenants Could Receive Low-Interest LoansThe 34-story International Gem Tower in the city’s diamond district has been struggling to get up from the ground, but that has not stopped it from receiving a string of government subsidies and tax breaks. The city is already offering the developer $49.6 million in tax breaks, and the federal government recently declared the building a foreign trade zone, absolving jewelry manufacturers of having to pay custom duties on many imports and exports. And on Thursday, Gov. David A. Paterson’s top economic development officials are expected to approve the largest loan ever under the state’s jobs program for future tenants in the tower, up to $100 million. June 24, 2010
Canada’s Conservative Approach to Mortgage Finance Could Provide Model for U.S.When he bought a home last week with a 40 percent down payment, lawyer Kevin Fritz didn’t see the transaction as particularly relevant to the debate over global financial stability. But consider: With U.S. home sales and prices still shaky, Fritz bought in a Canadian market that already has rebounded beyond pre-crisis levels. Without the key tax advantages available to U.S. home buyers, he amassed as much as possible for the down payment, and he expects to pay off his 15-year mortgage with the same bank that gave him the loan — a rarity in the United States, where finance companies typically resell mortgages. June 24, 2010
OBAMA ADMINISTRATION UNVEILS NATIONAL STRATEGIC PLAN TO PREVENT AND END HOMELESSNESSToday, the lead Cabinet secretaries from the United States Interagency Council on Homelessness (USICH) — from the U.S. Departments of Housing and Urban Development (HUD), Labor (DOL), Health and Human Services (HHS), and Veterans Affairs (VA) — joined Executive Director of the USICH Barbara Poppe to unveil and submit to the President and Congress the nation’s first comprehensive strategy to prevent and end homelessness. Domestic Policy Council Director Melody Barnes accepted the plan on behalf of President Barack Obama. The full report, titled Opening Doors: Federal Strategic Plan to Prevent and End Homelessness, is available at www.usich.gov. June 23, 2010
Administration Broadens Effort to Fight HomelessnessThe Obama administration released a strategy Tuesday to end homelessness by expanding programs to secure housing for veterans and families with young children and by building on efforts to help chronically homeless people. With the wars in Afghanistan and Iraq highlighting the needs of veterans and the economic crisis straining more families, the administration’s plan widens the role envisioned for the federal government in curbing and ending homelessness. June 23, 2010
Getting Older Now Means More Housing DistressAmma Holmes expected to pay off the mortgage on her Tampa, Florida, home in the next few years. Instead, she lost her job and her two adult sons have moved back in to help pay her bills. She isn’t alone. For the first time in generations, getting older means carrying more mortgage debt and less savings into retirement, thanks to the housing crash and rising joblessness among those 45 and older. The average age of borrowers seeking foreclosure prevention help from CredAbility, a national nonprofit credit counseling agency based in Atlanta, rose this year to 48 from 46 last year, and 43 in 2006. June 23, 2010
OBAMA ADMINISTRATION INTRODUCES MONTHLY HOUSING SCORECARDThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today introduced a monthly scorecard on the nation’s housing market. Each month, the scorecard will incorporate key housing market indicators and highlight the impact of the Administration’s unprecedented housing recovery efforts, including assistance to homeowners through the Federal Housing Administration (FHA) and the Home Affordable Modification Program (HAMP). June 22, 2010
USDOT and HUD Launch Groundbreaking, Collaborative Effort to Create Sustainable, Livable CommunitiesU.S. Transportation Secretary Ray LaHood and U.S. Housing and Urban Development Secretary Shaun Donovan today announced a groundbreaking collaborative effort designed to help foster planning for more livable, sustainable communities — places where transportation, housing and commercial development investments are coordinated to better serve the people living in those communities.Together, the U.S. Departments of Transportation (DOT) and Housing and Urban Development (HUD), for the first time ever, will join forces to award up to $75 million in funding — $35 million in TIGER (Transportation Investment Generating Economic Recovery) II Planning Grants and $40 million in Sustainable Community Challenge Grants for localized planning activities that ultimately lead to projects that integrate transportation, housing and economic development. June 22, 2010
Nebraska City Approves illegal-immigrant LawThe city of Fremont, Neb., became the latest to insert itself into the national immigration debate when residents approved a ban Monday on hiring or renting property to illegal immigrants. About 57% of voters supported the measure, according to unofficial results that must be certified by the election commissioner. The measure is likely to be challenged in court. The American Civil Liberties Union said it will try to block it before it goes into effect. June 22, 2010
A Booming Enterprise: Recycling Whole HousesRecycling is expanding from newspapers and bottles to entire houses as foreclosures, tax credits and landfill costs prompt businesses and non-profit organizations to salvage materials from old homes.Stores are springing up to sell used lumber, appliances, cabinetry and flooring. Habitat for Humanity, a non-profit that builds and rehabs affordable homes, has 550 such retail outlets, called “ReStores.” Mark Andrews, Habitat’s director of U.S. operations, says the number is growing “almost daily.” He expects an additional 100 stores in the next year. June 22, 2010
More Homeowners Exit Obama’s Mortgage Aid ProgramMore troubled mortgage borrowers are failing out of the Obama administration’s foreclosure-prevention program than are winning permanently lower home payments, the government reported Monday. Borrowers who qualify for the Making Home Affordable program receive a three-month trial modification, and if they stay current on payments, they can receive a permanent modification. June 22, 2010
Battles in California Over MortgagesAs the housing market continues to sputter, the real estate industry is increasingly split on the responsibilities of overextended and foreclosed homeowners. On one side are the bankers, who say borrowers should be liable for what they owe. On the other side are real estate agents, who say those who lost their houses should not be so burdened by debt that they cannot move on. The differences have real financial consequences: bankers want to collect on billions of dollars in outstanding loans; real estate agents want as many people as possible to return to the housing market. June 22, 2010
America’s Money is Moving to Florida, TexasSurprise: America’s wealthy like warm weather and low taxes. That’s the takeaway from IRS data, analyzed by Forbes, on moves between counties. We looked for counties that the rich are moving to in big numbers. Topping the list: Collier County, Fla., which includes the city of Naples. Tax returns accounting for 15,150 people showed moves to Collier County from other parts of the country in 2008, the latest year for which IRS data is available. Their average reported income: $76,161 per person — equivalent to $304,644 for a family of four. Although slightly more taxpayers moved out of Collier County than into it, the departing residents’ average income came out to just $26,128 per person. June 22, 2010
AG Focuses On Foreclosure Rescue Scams In OhioAs part of a national mortgage fraud sweep dubbed “Operation Stolen Dreams,” Ohio Attorney General Richard Cordray has filed lawsuits against two Ohio foreclosure rescue businesses for failing to provide services for which consumers paid. JLS & Associates Financial Services LLC (JLS), based in Cleveland, and Freedom Equity Savings LLC (FES), located in the Columbus area, are accused of defrauding homeowners across the state out of thousands of dollars. June 22, 2010
Tours Descend on West Side ForeclosuresForeclosure home tours are staples of Florida, California and Las Vegas, where large numbers of foreclosed property are located. Those tours have arrived inland and now are part of the Cincinnati real estate landscape. Exit Realty West in Green Township is running a free foreclosure home tour most Saturdays through fall. Greg Unthank, a Realtor and partner with Exit Realty, started them last summer after he read that a real estate agent in Cleveland was giving foreclosure tours. “It seemed like a good idea,” Unthank said. “We feel that the buyer side of the foreclosure business tends to be more unrepresented on where agents focus their time. We do try to get short-sale listings and foreclosure listings. It was an unserved niche, in our opinion.” June 22, 2010
House-Senate Negotiators to Weigh Consumer Agency, Mortgage-Risk RetentionHouse-Senate negotiators working to resolve differences in financial-regulation legislation will seek accord on a consumer protection bureau and rules to prevent home foreclosures they aim to complete the sweeping overhaul. Members of a congressional conference committee begin a third week of meetings today after Representative Barney Frank, the Massachusetts Democrat leading the talks, accepted a Senate plan to put the consumer agency in the Federal Reserve. Frank, in a set of proposed changes released yesterday, called for excluding auto dealers from the bureau’s oversight, a step that may spark further debate. June 22, 2010
USGBC Works with Harvard University on “The State of the Nation’s Housing”The U.S. Green Building Council (USGBC) has co-sponsored a report from the Joint Center for Housing Studies of Harvard University entitled The State of the Nation’s Housing 2010, which studied the affordability, energy and location efficiency within the existing U.S. housing stock. For the first time, the report also looked at the utility and transportation costs associated with current trends in the residential real estate market, finding that housing can be made more affordable through efficiency upgrades. June 22, 2010
30-year Mortgage Rates Hit 4.56%, Another Record LowMortgage rates fell to a record low for the fourth time in five weeks. But low rates haven’t been enough to lift a struggling housing market. The average rate for 30-year fixed loans this week was 4.56%, down from 4.57% last week, mortgage company Freddie Mac said Thursday. That’s the lowest since Freddie Mac began tracking rates in 1971. The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years. June 22, 2010
HUD AND VA LAUNCH $15 MILLION DEMONSTRATION PROGRAM TO PREVENT VETERAN HOMELESSNESSIn an effort to prevent homelessness among veterans, primarily those returning from the wars in Afghanistan and Iraq, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) today announced that both agencies will invest a combined $15 million in five selected communities near military installations. The HUD and VA grant funding is intended to provide housing assistance and supportive services to veterans who might otherwise be living in homeless shelters or on the streets. June 22, 2010
More Firms Develop Products for Rooftop GardeningUsing heat from a forge that turns orange-hot metal into everything from car parts to hand tools, a Michigan manufacturer is developing an energy-efficient way to warm a year-round greenhouse on the company’s roof. Trenton Forging President David Moxlow started growing fruit and vegetables atop the plant southwest of Detroit in November and has already harvested greens, peppers, broccoli, strawberries and tomatoes that are shared with employees and visitors. June 21, 2010
HUD CHARGES NEW HAMPSHIRE LANDLORD WITH DISCRIMINATING AGAINST INTERETHNIC COUPLEThe U.S. Department of Housing and Urban Development today announced that it is charging a Monroe, New Hampshire, landlord with violating the Fair Housing Act for harassment of tenants who are an interethnic couple. According to HUD’s charge, landlord Lothar Riba told a female tenant that he didn’t think it was appropriate for her to be married to a “Spanish guy.” HUD alleges that Riba harassed and threatened the family by monitoring and photographing their activity, removing their apartment’s window handles, and physically assaulting and injuring the wife. Riba allegedly told the wife that she should get her “monkey” family off of his property and that her Hispanic sister in-law could not visit, remarking, “If one comes, they all start coming like a bunch of cockroaches.” June 21, 2010
FHA to AMake Reverse Mortgage Less Forgiving for Seniors Late on TaxesHere’s a sobering message for anyone who has a federally insured reverse mortgage or plans to apply for one: If you don’t pay your local property taxes or hazard-insurance premiums, the risk of losing your house to foreclosure is about to increase. Although the Federal Housing Administration, which runs the dominant reverse-mortgage program, often has been lenient and forgiving in the past about tax and insurance delinquencies by seniors, the agency is likely to take a more disciplined approach in new guidelines due this summer. June 21, 2010
Unsettled Questions Surround Tax Breaks for Conservation EasementsQ: My neighbor just gave an easement in her property to some company and claims that she will get a huge tax benefit when she files her next income tax return. What is that, and are there really any tax benefits available? June 21, 2010
Warranties Protect Owners of New HomesYour home is your castle — but even a palace would be unpleasant if it’s drafty, leaky or crumbling.Under state law, new homes built in Maryland are protected by a one-year warranty, and they’re guaranteed against structural defects for two years. This coverage can help buyers who discover defects after they move in. But persistence will be required, as Thomas Brower and his parents discovered. Their builder, Ryland Homes, had fixed several problems, such as a leaky gas fireplace, on the Rosedale house they bought in August. The company also completed repairs such as addressing puckers in the roof that Ryland officials felt were cosmetic. June 21, 2010
Foreclosures Stifle St. Louis Area Bank ProfitsSt. Louis banks are stuck with 33 percent more foreclosed property now than they had a year ago. In banking parlance, it’s called other real estate owned, and it totaled $445.8 million as of March 31 at 78 commercial banks chartered here, according to Federal Reserve Bank of St. Louis statistics. That’s up from $334.4 million a year earlier. Seventeen of the banks have foreclosed real estate that amounts to 2 percent or more of their total assets. “The danger point is anything over 2 percent,” said Tim Bosch, vice president of safety and soundness at the St. Louis Fed. “The higher it goes, the more non-earning assets a bank has, so it’s much harder to generate profits or capital.” June 21, 2010
Lawmakers Battle Over Foreclosure RemediesThe number of mortgage defaults and home foreclosures is falling in the Inland area and around the state, but the tug of war between the lending industry and people pushing for new borrower protections is still going strong at the state Capitol. “Foreclosures have dropped. That’s a good sign,” said Assemblyman Ted Lieu, D-Torrance, the author of several bills on the subject. “But we still have to do more because there are a lot of people not communicating.” June 21, 2010
‘Extreme Makeover’ Home Gets Its Big UnveilingThe crowd was ready. So were the television cameras. The only part of the “Extreme Makeover: Home Edition” extravaganza that wasn’t completely prepared for the big revealing Sunday was the home. As thousands of volunteers and spectators cheered in anticipation of the big moment, workers were frenetically putting finishing touches on the massive house in Northeast Baltimore — from interior paint to hanging the front door. Little wonder. At 11,120 square feet, the home is the largest built in the popular reality TV show’s history — a lot of work to squeeze into a week. And torrential rain interrupted, throwing the schedule off by two days. June 19, 2010
Feds Charge 1,200 People in Mortgage Fraud CrackdownIn a nationwide effort, officials file criminal charges against individuals allegedly responsible for $2.3 billion in fraud. ‘These schemes are despicable; they are dangerous to our economy,’ Atty. Gen. Eric Holder says. Reporting from Orange County, Washington and New — Seeking to show victories against the kind of ground-level fraud that contributed to the housing crash, federal authorities said Thursday that they had filed criminal charges in recent months against 1,200 mortgage brokers and others accused of cheating banks and borrowers of $2.3 billion. White-collar crime experts said the size and scope of what the government presented Thursday — dubbed Operation Stolen Dreams — represented an unprecedented crackdown on mortgage fraud. June 18, 2010
Feds Have Made Nearly 500 Arrests in Mortgage Fraud ProbeThe Justice Department announced Thursday that investigators have made nearly 500 arrests since March in a major crackdown on mortgage fraud. The nationwide initiative called Operation Stolen Dreams is the largest collective enforcement effort aimed at confronting the problem of mortgage fraud, Attorney General Eric Holder told a news conference. It involves 1,215 criminal defendants in cases that uncovered more than $2.3 billion in losses. The Justice Department also has engaged in civil enforcement actions to recover more than $147 million in the operation. June 18, 2010
Attorney General Eric Holder Speaks at the Operation Stolen Dreams Press ConferenceWe are here to announce the results of Operation Stolen Dreams — a three and a half month takedown of mortgage fraud schemes throughout the country. This operation began on March 1, and to date involved 1,215 criminal defendants nationwide, defendants who were allegedly responsible for more than $2.3 billion in losses. In addition, the operation involved 191 civil enforcement actions through which more than $147 million has been ordered recovered, with still millions more pending court approval. This represents the largest collective enforcement effort ever brought to bear in confronting mortgage fraud. June 18, 2010
HUD AWARDS $2.3 BILLION TO MORE THAN 3,000 PUBLIC HOUSING AUTHORITIES TO IMPROVE, PRESERVE PUBLIC HOUSING ACROSS THE U.S.U.S. Housing and Urban Development Secretary Shaun Donovan today awarded more than $2.3 billion to 3,131 public housing authorities across the U.S, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The funds will allow these agencies to make major capital improvements to their public housing units. To view the full list of grantees, visit HUD’s website. “Housing authorities will add this funding to the $4 billion from the American Recovery and Reinvestment Act of 2009 they received last year to continue addressing long-standing capital improvements that public housing communities need,” said Donovan. “This funding will also stimulate the economy and create jobs in these communities.” June 18, 2010
HUD AWARDS $2.3 BILLION TO MORE THAN 3,000 PUBLIC HOUSING AUTHORITIES TO IMPROVE, PRESERVE PUBLIC HOUSING ACROSS THE U.S.U.S. Housing and Urban Development Secretary Shaun Donovan today awarded more than $2.3 billion to 3,131 public housing authorities across the U.S, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The funds will allow these agencies to make major capital improvements to their public housing units. To view the full list of grantees, visit HUD’s website. “Housing authorities will add this funding to the $4 billion from the American Recovery and Reinvestment Act of 2009 they received last year to continue addressing long-standing capital improvements that public housing communities need,” said Donovan. “This funding will also stimulate the economy and create jobs in these communities.” June 18, 2010
Sale of Ministry Property Positioned Pastor to GainFor 25 years, the Rev. Floyd H. Flake’s Greater Allen African Methodist Episcopal Cathedral of New York successfully ran a 300-unit apartment complex for the elderly in southeastern Queens. The two eight-story buildings, built and subsidized with public money, were well maintained by one of the church’s charities. There was also a city-financed van service, a meals program for seniors and a women’s shelter, all on the site. Then, about four years ago, the church sold the project for $14 million to a for-profit partnership. Tenants received a notice in the mail, and Mayor Michael R. Bloomberg hailed the transaction as contributing to his efforts to preserve and build housing for moderate- and low-income residents. June 18, 2010
Homeless Find Shelter in Affluent DistrictsSan Francisco’s homeless people usually find homes in poorer parts of the city, like the Tenderloin and the Mission. There are 4,745 units in these areas (Districts 6 and 9), according to the city, accounting for 83 percent of San Francisco’s “supportive housing” — permanent residences that also offer services. These accommodations should be spread around, said Don Falk, executive director of the Tenderloin Neighborhood Development Corporation, which developed Zygmunt Arendt House with Community Housing Partnership. “Good neighborhoods should not only be reserved for people with means,” he said. But building in nicer neighborhoods is difficult. Currently, residents of the affluent Marina district are vociferously opposing converting the Edward II Inn and Suites into transitional housing for 18- to 24-year-olds who have left the foster care system. June 18, 2010
Justices Debate Issues in an Oceanfront CaseA project to restore eroded beaches in the Florida Panhandle did not violate the Constitution’s takings clause even though the state claimed ownership of the strip of land the project created next to the ocean, the Supreme Court ruled on Thursday. The vote was 8 to 0 against property owners who challenged a ruling of the Florida Supreme Court that had, as they put it, turned oceanfront property into ocean-view property. But the justices’ unanimity was superficial. They agreed on the proper result but were deeply divided about how to reach it. June 18, 2010
TBW Mortgage Chief Arrested for Fraud Involving TARPA federal grand jury has indicted the head of what was once among the largest privately held mortgage lending companies for allegedly scheming to steal more than half a billion dollars from the government’s Troubled Asset Relief Program. The indictment in Virginia alleges that Lee Bentley Farkas and co-conspirators carried out the alleged plot at their company, Taylor, Bean & Whitaker of Ocala, Fla., where Farkas was chief executive. Farkas was arrested Tuesday night while working out in a gym that he owns in Ocala, said Shawn Henry, head of the FBI’s Washington, D.C., field office. June 17, 2010
HUD ISSUES 2009 ANNUAL HOMELESS ASSESSMENT REPORT TO CONGRESSThe total number of homeless persons in America dropped slightly between 2008 and 2009 although the number of homeless families increased, almost certainly due to the ongoing effects of the recession. That’s the conclusion of the 2009 Annual Homeless Assessment Report to Congress, a yearly study by the U.S. Department of Housing and Urban Development designed to measure the scope of homelessness across the country. HUD’s latest report finds that 643,000 persons were homeless on a given night in 2009 while roughly 1.56 million people, or one in every 200 Americans, spent at least one night in a shelter during 2009. While the total estimated number of persons who experience homelessness as individuals declined by 5 percent, the number of homeless families increased for the second straight year. June 17, 2010
Thousands of Home Sales Depend on Tax Credit ExtensionThousands of pending home sales may be in jeopardy unless Congress extends the June 30 deadline for buyers to close on their deals and claim a tax credit. The Senate on Wednesday approved a three-month extension, giving buyers until Sept. 30 to close, but it’s attached to another bill that still has to be passed by the House. The extension would apply only to buyers that met the April 30 deadline to have signed purchase contracts in hand. The tax credit is worth up to $6,500 for repeat buyers and up to $8,000 for first-time buyers. June 17, 2010
Home Construction Sinks; Wholesale Price Index DropsHome construction plunged last month to the lowest level since December, and building permits fell as builders scaled back construction plans. In a second report Wednesday, the Labor Department said its wholesale price index dropped in May for a second month, first time that has happened in a year, reflecting big declines in the cost of energy and food. The Labor Department said the price index dropped 0.3% in May following a 0.1% decline in April. Core inflation, which excludes energy and food, posted a 0.2% increase. Core prices are up just 1.3% the past 12 months. June 17, 2010
Housing Market Slows as Buyers Get PickyBefore the recession, people simply looked for a house to buy. Later they got squeamish just thinking about buying. Now they are on a quest for perfection at the perfect price. Exacting buyers are upending the battered real estate market, agents and other experts say, leading to last-minute demands for multiple concessions, bruised feelings on all sides and many more collapsed deals than usual. It is a reversal of roles from the boom, when competing buyers were sometimes reduced to writing heartfelt letters saying how much they loved the house and how they promised to eternally worship the memory of the previous owners. These days, it is the buyers who are coldly seeking the absolute best deal while the sellers are left in emotional turmoil. June 17, 2010
U.S. Recognizes an Indian Tribe on Long Island, Clearing the Way for a CasinoThe Shinnecock Indians’ 32-year battle for federal recognition ended with prayer, drumming and an Algonquin victory song on Long Island on Tuesday after the Obama administration approved the tribe’s petition. Now comes the next big challenge: serious negotiations over a casino in a region filled with competing gambling interests. With federal recognition, the tribe can build a casino on its 800-acre reservation in Southampton, N.Y., but the tribe, the state and local officials would prefer to find another location, in New York City or its suburbs, for the casino. That would mean plunging into a thicket of complex federal law, court rulings and political considerations. June 17, 2010
Unclogging Sewer Lines: Weird Debris, but No Alligators“I’ve seen parts of cars,” said Chris Laudando, a superintendent for the city’s Department of Environmental Protection, which oversees the system. “I’ve seen sections of boats. Anything that will fit down a catch basin or will fit down a manhole, I’ve seen. I’ve seen rodents, raccoons. All sorts of furry creatures. No alligators.” The sewers are New York’s other great mass transit system; 7,400 miles of sewer lines rush more than 1.3 billion gallons of wastewater a day to 14 treatment plants. Wastewater is a polite description for the stuff: human waste from flushed toilets, food scraps from dishwashing machines, all that water from the shower you and roughly eight million of your neighbors took this morning. (Some homes in the city — primarily in parts of Staten Island and Queens — still evoke life in the country by relying not on the sewer system but on private septic tanks.) June 17, 2010
Obama’s Gulf Coast Restoration Plan is Short on DetailsPresident Obama made an ambitious promise Tuesday to bring the Gulf Coast’s habitat back to health. How and when that will happen is another matter. The White House could offer almost no details Wednesday about the “Gulf Coast Restoration Plan” pledged by the president in his Oval Office address. Experts, meanwhile, said any meaningful plan to restore a region damaged by decades of poor industrial planning, frequent hurricanes and now the oil spill could cost as much as $30 billion over the next 15 to 20 years. Such a sum would dwarf the country’s largest environmental restoration project so far — the $12 billion plan for the Florida Everglades. June 17, 2010
MD: Charles County Has Second-Highest Foreclosure Rate in StateCharles County’s foreclosure rate was the second-highest in the state in April, according to statistics compiled by a real estate analysis firm. The county had one in every 297 housing units receiving at least one foreclosure filing, according to RealtyTrac. The number includes homeowners in any stage of the process, from receiving a notice of default to having the bank seize the home. The rate is almost 1 1/2 times the state average, which in turn is higher than the national rate of one in 387. June 17, 2010
Lawmakers Weigh COAH ReplacementThe New Jersey Senate voted to pass a controversial affordable-housing bill on Thursday, June 10 with a vote of 28-3. The bill will next advance to the Assembly. The bill, S-1, abolishes the Council on Affordable Housing, or COAH, while allowing municipalities to administer their own affordable housing obligations. The state’s imposed calculations of affordable housing needs would be done away with and local governments would take charge of planning their own opportunities. As part of the transfer of responsibility from COAH to municipalities, S-1 requires an amendment of the “Municipal Land Use Law,” to make a housing element a mandatory part of a municipal master plan. June 17, 2010
Transitional Housing: A Way Out? Or Holding Tank That Keeps People Homeless?Many people, having been through the trauma of whatever crisis caused them to become homeless, need a place to stay in between being in the shelter and going back to market-rate housing. Social workers are usually present at the transitional-housing sites, and the residents have a time limit on how long they can stay, which is supposed to give them incentive to get their lives together and get in to market-rate housing. The time limit can be from 3 to 24 months. Many transitional housing programs are funded by HUD. The King County government spent $4.7 million on transitional housing in 2009. June 17, 2010
May Foreclosures in State DoubleWarren Group, a Boston firm that tracks local real estate, reported that 1,283 residents lost their homes in May, a 119.7 percent increase from the 584 foreclosures reported in May 2009. There were 6,107 completed foreclosures reported from January to May, a 48.4 percent hike from the same time last year. But fewer homeowners are now on the precipice of foreclosure, which means the problem may eventually begin to ebb. June 17, 2010
Tenants Swelter Without Air-conditioning at Fort Worth Apartment ComplexThe main air conditioning unit at Lackland Court Apartments in west Fort Worth hasn’t been working properly for a couple of months. Some residents have installed window units, but most people at the complex in the 3200 block of Lackland Road can’t afford that. Since March, city code officials have issued citations to the complex’s owners for violations including lack of hot water and air conditioning, said Brandon Scott Bennett, the city’s code compliance director. The owners have not appeared in court on the citations, he said. June 17, 2010
CitiMortgage Announces Foreclosure Suspension Program to Help Distressed Homeowners in the Gulf of Mexico RegionCiti Chief Executive Officer Vikram Pandit today announced a foreclosure suspension program for CitiMortgage-owned mortgages in coastal areas hard-hit by the oil spill in the Gulf of Mexico. The aim of this program is to allow distressed homeowners to remain in their homes during these uncertain times as the Gulf communities respond to the oil spill and its economic repercussions. During the three-month suspension, effective June 17 through September 17, 2010, borrowers with first mortgage loans owned by CitiMortgage and who meet certain other criteria will not be subject to foreclosure sales or foreclosure notifications. June 17, 2010
Foreclosure Rate steadies in May; See State-By-State ChartThe foreclosure crisis leveled off in May as the number of people facing foreclosure was nearly flat from a year ago, according to RealtyTrac, a private foreclosure listing service. A third fewer people are receiving legal warnings that they could lose their homes. And foreclosures are receding in some of the hardest-hit cities, the report says. Still, the number of foreclosures remains extraordinarily high. Experts caution that a big reason for the stabilization is that banks are letting delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. New consumer protection laws, which vary by state, have also meant borrowers can spend more time in their homes. June 16, 2010
Families in Homeless Shelters Increased 7% in ‘09The recession continued to take its toll as more families with children became homeless for the second straight year, a U.S. government report shows. The number of families in homeless shelters increased 7% to 170,129 from fiscal year 2008 through fiscal year 2009, a report released today by the U.S. Department of Housing and Urban Development found. At the same time, the overall number of homeless people in shelters fell 2% to 1.56 million. June 16, 2010
HUD CHARGES OWNERS, MANAGERS OF WISCONSIN APARTMENT COMPLEX WITH DENYING ACCESSIBLE PARKING SPACE TO TENANT WITH DISABILITIESThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging the owner of a Walworth, Wisconsin apartment complex and its management company with discrimination for denying an accessible parking space to a tenant who has difficulty walking. In the charge, HUD alleges that WHPC-DWR, LLC and Cardinal Capital Management, Inc., violated the Fair Housing Act in denying the request of the tenant, who has braces on both legs. The Fair Housing Act requires landlords to make reasonable accommodations in their rules, policies, practices, or services when needed to provide persons with disabilities an equal opportunity to use or enjoy a dwelling. June 16, 2010
Stimulus Bond Program Has Unforeseen CostsThey are supposed to help states and cities that are short of cash build roads, schools and bridges. But Build America Bonds, part of President Obama’s economic stimulus plan, are also building something else: controversy. States and cities have embraced these taxable bonds to borrow money at what they assume are favorable interest rates. The federal government pays 35 percent of the interest costs on the bonds, a huge potential saving. But questions about this multibillion-dollar program are piling up. June 16, 2010
Study Finds Fraud, Abuse in Md. Energy ProgramAbout 11,000 dead people in seven states, including Maryland, have gotten government heating aid over the past year or so, according to congressional investigators. They say that the grave is cold, but it’s illegal to receive energy subsidies when your address is six feet under. Plenty of other Marylanders may also be ripping off the $5 billion Low-Income Home Energy Assistance Program, to judge from last month’s report from the U.S. Government Accountability Office. In the seven states, the GAO found households receiving more than $100 million in benefits even though recipients weren’t sufficiently documented on state records as being eligible. June 16, 2010
HUD: June is National Homeownership MonthDuring National Homeownership Month 2010, we recognize that American families deserve the opportunity to achieve and sustain the dream of homeownership. The Obama Administration has taken immediate action to help existing homeowners stay in their homes, to offer a second chance to millions of responsible families, to encourage wise and affordable home purchases and to stabilize our households, neighborhoods and communities. This month, we focus on Protecting the American Dream. June 15, 2010
HUD is Asking a Lot of Questions About ‘Required Use’The Obama administration wants to stir the pot on a highly contentious issue involving homebuilders and their customers: the legality of the discounts, rebates, closing costs, upgrades and other lures that builders often dangle in front of buyers — but only if they agree to use the builder’s affiliated mortgage lender. In the real estate business, the issue is known as “required use.” Under the Real Estate Settlement Procedures Act, consumers cannot be compelled to use the services of affiliates of realty firms, title companies, builders and other market participants. June 15, 2010
Turning to the Property Toll After the FloodAs search crews on Monday found the 20th victim of the flash floods that ripped through a remote Arkansas camping area last week, local residents and officials began turning their attention to the financial effect of the disaster. Officials said that on Tuesday they expected to begin assessing the property damage at the Albert Pike campground, which took the brunt of the blow when more than 23 feet of water swept through the campground early Friday morning. The area, part of the Ouachita National Forest, has about 200 campsites, many of which have cabins that people use as vacation homes and permanent residences. June 15, 2010
HUD Puts Grant Money Behind New LEED StandardThe federal government put even more of its weight behind the green building movement when the U.S. Department of Housing and Urban Development announced recently that LEED for Neighborhood Development (LEED-ND) will be used to score the location efficiency of grant applications. HUD will apply the LEED criteria to grant submissions to the upcoming Sustainable Communities Planning Grants and others, totaling $3.25 billion in grant funds. “Location efficient” neighborhoods are ones in which residents can walk easily from their homes to retail establishment, entertainment and recreational venues, schools, and public transportation. Residents of location-efficient neighborhoods don’t need to drive as much as residents of less convenient locations, so they save money on transportation costs. June 15, 2010
Why Chicago Foreclosure Homes Are on an Uptrend And Measures to …Chicago is the third most populous state in the United States and is a vibrant city that attracts millions of tourists and settlers every year. Chicago foreclosure homes were flooding the market, especially spiking in activity in April 2010. Chicago foreclosures are increasing due to increasing unemployment and government is taking measures like reducing monthly mortgage payments so that home owners can avoid foreclosures. June 15, 2010
Elena Kagan — Friend of Renters?In 1987, Elena Kagan, as clerk to Supreme Court Justice Thurgood Marshall, stood up for rent control, characterizing a challenge to its constitutionality as “absurd” and “outrageous.” In the mid-1990s, Kagan, as counsel to President Bill Clinton, authored a memo supporting a landlords’ right to discriminate based on marital status. So which is it? Is Kagan sympathetic to the rights or renters or not? The Senate Judiciary Committee needs to find out. June 15, 2010
Shelters From the StormMany of the women Jimenez works with come from troubled, abusive families, and have been living this life since they were teenagers. By the time they are 18, when they can no longer stay in foster care or group homes, they turn to prostitution for want of other options. “They had no love in their lives, no caring, no direction, no sense of community, no place to belong to,” Jimenez said. “They’re tired, and they want a way out by the time they’re 20.” June 15, 2010
FHA ANNOUNCES NEW CONTRACTS TO IMPROVE SYSTEM OF MAINTAINING AND SELLING INVENTORY OF ‘HUD HOMES’The U.S. Department of Housing and Urban Development (HUD) today announced it is awarding contracts to 23 companies to serve as Asset Managers (AM) and 32 other firms to serve as Field Service Managers (FSM) under the third generation of its Management and Marketing (M&M) program, known as M&M III. The new contracts announced today are intended to reduce risk, increase sale prices and accelerate the pace of reselling HUD’s inventory of foreclosed FHA homes. Under prior agreements, M&M contractors were responsible for both maintenance and marketing of the Department’s real estate-owned or REO properties. The change announced today separates those functions, which require significantly different skill sets, thereby increasing the effectiveness of the Department’s asset disposition program. June 14, 2010
Lawmakers Consider Home Tax Credit ExtensionHomebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring. Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale. The proposal would only allow people who already have signed contracts to finish at the later date. June 14, 2010
Mortgage Applications Fall Despite Lower RatesThe average rate on 30-year, fixed mortgages is near a record low again, but that may not be enough to bring lots of buyers into the market. Mortgage finance giant Freddie Mac says the average for a 30-year mortgage is 4.72%, down from 4.79% a week ago and just a shade above the record low of 4.71% reached early last December. Despite low rates, the Mortgage Bankers Association reported this week that the volume of new mortgage applications for buying homes fell to a 13-year low. June 14, 2010
Countrywide Settles Fee ComplaintCountrywide Home Loans and its mortgage servicing unit, which are now part of Bank of America, agreed on Monday to pay $108 million to settle federal charges that the company overcharged customers who were struggling to hang onto their homes. The Federal Trade Commission claimed that Countrywide charged highly inflated amounts — $300 to mow a lawn, in one instance — to more than 200,000 homeowners whose mortgages Countrywide serviced as part of its home loan business.The company assessed the fees on customers who had sought to reorganize their debts and save their homes or on homeowners who, the company claimed, sometimes falsely, were in default on their loans. June 8, 2010
City Proceeds With Big Middle-Income Housing Project on Queens WaterfrontAfter four years of planning and delays, the city will start soliciting bids on Monday to begin building what could become the city’s largest development for middle-income residents in 40 years. The Bloomberg administration, which is heavily subsidizing the project, is asking developers to compete to build 1,000 apartments on a once industrial strip of Queens land known as Hunters Point South, where Newtown Creek enters the East River. At least 60 percent of the apartments would be reserved for families earning $63,000 to $130,000 a year. Although construction is not scheduled to begin until 2012, the project would mark the first section of a waterfront community of 5,000 apartments with shops, a school and a 10-acre public park. June 7, 2010
Inviting Attorneys Into the Homebuying ProcessProspective home buyers turn to real estate agents and loan officers when they want new homes. They rarely hire a lawyer. Diane Cipollone is trying to change that. Cipollone, an attorney with the nonprofit law firm Civil Justice Inc. in Baltimore, has worked with scores of homeowners in danger of foreclosure, and she’s convinced that many could have avoided trouble by consulting with an attorney before buying their home or refinancing their loan. No one walked them through the financial implications or pointed out booby traps in the mortgage documents — until it was too late. June 7, 2010
Auction Could Reset Prices for the Luxury-Home MarketA Baltimore developer will try to jump-start sales of high-end waterfront homes this month by slashing prices as much as 75 percent, a move that could lure more buyers to the region’s long-stalled luxury market but also depress values for builders and homeowners. Eleven properties in Pier Homes at HarborView, where about half the 88 waterfront townhouses finished two years ago have yet to be sold, will go to auction June 28. Minimum bids the developer would accept start as low as $329,000 for a home that’s on the market now for $1.2 million up to $665,000 for a home with a current asking price of just under $2 million. The auctioneer plans to announce the terms Wednesday. June 7, 2010
Life Estates are a Complex Area of LawQ: My wife and I have owned our house for many years. I am several years older, so she is likely to outlive me. I want to make sure she will be able to stay in the house for the rest of her life and have heard that a “life estate” could take care of that. Can you explain how it works? June 7, 2010
Foreclosure Glut: Is ‘Shadow Inventory’ Really a Threat?Every once in a while, the term “shadow inventory” makes it into the business headlines. Invariably, stories warn of a looming flood of foreclosures that will drag the housing market down as soon as homeowners begin to feel optimistic again. But what is shadow inventory — and is it really such a big threat? Different experts have different definitions. Some only include homes that have already been repossessed by banks and are awaiting distressed sales. Others include those whose owners are long-overdue on mortgage payments, while others still count homes whose owners would like to sell but are waiting for conditions to improve. June 7, 2010
Arizona Alleges Brazen Foreclosure ScamScottsdale-based Discount Mortgage Relief fraudulently “guaranteed” thousands of people of loan modifications for $1,350 to $5,000 apiece, the Arizona attorney general says. Not only did clients lose homes to foreclosure, the company continued insisting it was “FBI Certified” even after the FBI executed a search warrant on its office this year, the state says. Attorney General Terry Goddard claims the company told many clients they were “pre-qualified,” and “guaranteed” the loan modification, but failed to deliver, and that clients “in some cases, ended up losing their homes to foreclosure.” June 7, 2010
Foreclosures Go Wrong as Lenders, Cleanup Crews Cut Legal CornersSome Michigan residents have returned home to find their windows broken, houses ransacked and valuables missing. Not from burglars, but overzealous mortgage lenders and their trash-out teams: unlicensed crews hired to clean out and secure property during foreclosures. Lawsuits filed across Michigan and the nation paint an ugly picture of impersonal foreclosures bent on speed that cut legal corners without concern for homeowners who have paid up. June 7, 2010
Banks Bear Weight of Bad LoansBanks in Tennessee have nearly three times more foreclosed properties on their books than lenders nationwide, a stark reminder of potential economic development that came to a grinding halt in Middle Tennessee. According to the first quarter 2010 tally, “other real estate owned” — properties foreclosed on by banks to recoup money from borrowers failing to pay back loans — made up 0.91 percent of the assets of institutions in Tennessee, according to the Federal Deposit Insurance Corp. June 7, 2010
HUD TO PROVIDE PERMANENT HOUSING TO NEARLY 8,000 HOMELESS VETERANSU.S. Housing and Urban Development (HUD) Secretary Shaun Donovan announced today that nearly 8,000 homeless veterans will get permanent housing assistance through a HUD rental assistance program that connects homeless veterans from local Veterans Affairs Medical Centers (VAMC) with rental assistance vouchers provided by local public housing agencies. HUD’s Veterans Affairs Supportive Housing Program (HUD-VASH) will provide local public housing agencies with $58.6 million in funding specifically targeted to assist homeless veterans in their area. June 4, 2010
Standing in a Tunnel’s Path, and Forced to LeaveChristine A. Moore, a hat designer on 34th Street in Midtown Manhattan, is one of the unlucky 100. Like other businesses and landlords in the area, she has been warned that a giant tunnel-boring machine is coming to her neighborhood and that she will have to move as her building is marked for demolition. The Port Authority of New York and New Jersey this week began to send letters to more than 3,000 occupants of a wide swath of the West Side that surrounds the path of one of the biggest public-works projects in the nation: an $8.7 billion commuter train tunnel under the Hudson River. The letters lay out the plan and schedule for construction of the tunnel — twin tunnels, actually — which will end at a new terminal deep under 34th Street at the foot of the Macy’s flagship store. June 4, 2010
Going Solar Is Harder Than It Looks, a Valley FindsThe nightmare in the Gulf of Mexico, as oil spews unchecked from BP’s wrecked well, makes this high mountain valley seem even more idyllic than it is. Energy here, from the sun, is free, abundant and clean. For generations of farmers, and the hippies in the 1970s who went off the grid with their sun-powered water-heaters, and most recently the large-scale solar companies that have come looking for a new kind of harvest in one of the nation’s sweet spots for renewable energy, the sun is an anchor of life. June 4, 2010
HUD AWARDS SIX HOUSING AUTHORITIES $113.6 MILLION TO REVITALIZE PUBLIC HOUSING, TRANSFORM SURROUNDING NEIGHBORHOODU.S. Housing and Urban Development Secretary Shaun Donovan announced today that six public housing authorities will receive $113.6 million to transform distressed public housing developments in their cities into mixed-income communities. Housing authorities in Charlotte, NC, Covington, KY, Dallas, TX, Jersey City and Trenton, NJ, and Memphis, TN were each able to develop highly successful revitalization plans, including effectively incorporating early childhood education programs— a priority for the Obama Administration. June 3, 2010
A Fresh Oasis Thrives in a Chicago Food DesertMr. Montgomery charges grocery shoppers up to $8 for rides home from the Food 4 Less, a full-service grocery store that opened four years ago in Englewood. He rests on a handicap cart at the front of the store, waiting for cashiers to send him shoppers who traveled there without a car. Mr. Montgomery, a retiree who will not give his age, said patrons rode with him because they did not want to worry about having their grocery bags stolen on the bus, and because they couldn’t buy what they needed from corner stores closer to home. They live in food deserts, poor areas that are dotted with vacant lots, dollar stores, and liquor marts, but bereft of fresh-food grocers. June 3, 2010
Owners Stop Paying Mortgages, and Stop FrettingA growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by. This type of modification does not beg for a lender’s permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads. Foreclosure procedures have been initiated against 1.7 million of the nation’s households. The pace of resolving these problem loans is slow and getting slower because of legal challenges, foreclosure moratoriums, government pressure to offer modifications and the inability of the lenders to cope with so many souring mortgages. June 1, 2010
Blacks in Memphis Lose Decades of Economic GainsNot so long ago, Memphis, a city where a majority of the residents are black, was a symbol of a South where racial history no longer tightly constrained the choices of a rising black working and middle class. Now this city epitomizes something more grim: How rising unemployment and growing foreclosures in the recession have combined to destroy black wealth and income and erase two decades of slow progress. The median income of black homeowners in Memphis rose steadily until five or six years ago. Now it has receded to a level below that of 1990 — and roughly half that of white Memphis homeowners, according to an analysis conducted by Queens College Sociology Department for The New York Times. June 1, 2010
Behind Unassuming Walls, a War of Words Among Co-op Board MembersOn its surface, the unassuming red-brick building would not seem to be a natural setting for the co-op board equivalent of “The Jerry Springer Show.” Real estate brokers praise the 130-unit co-op for its relatively low maintenance and solid finances, and several apartments have recently sold for less than 10 percent off their asking price, according to StreetEasy.com, a Web site that tracks real estate listing data. None of the board members deny that the building is in good shape, and even the ones sending the most contentious e-mail messages agree that it has been well run for decades. June 1, 2010
Ohio Foreclosure Legislation Shelved Until FallForeclosure legislation is headed back into the freezer until fall. Senate Republicans had considered moving legislation designed to increase protections for renters and require registration for loan servicers as a watered-down substitute for a stronger foreclosure moratorium bill passed more than a year ago by House Democrats. But Senate Finance Chairman John Carey, a southern Ohio Republican, said this week that the plug has been pulled on any foreclosure legislation because he didn’t get much support for his Plan B. June 1, 2010
Low-income Housing Restrictions Limiting Owners’ Options to ResellDenver’s affordable-housing program seemed like the perfect solution to help Kevin Kate Albizu and her husband, Ryan, buy a home three years ago. Now the Albizus, like scores of others in the program, say they find it nearly impossible to resell their homes because of city restrictions. The crunch is occurring because the program’s rules require those who bought the discounted homes under income restrictions to resell only to people who meet those same income restrictions, said Damon Knop, a real estate agent who represents many trying to resell homes in the program. Tighter lending requirements these days make that difficult, Knop and other critics say. June 1, 2010
Foreclosures Shifting to Affluent ZIP CodesForeclosures are going upscale across the Bay Area. Nearly 1,000 homes valued above $730,000 were repossessed by banks in the nine-county region in each of the past two years, according to a Chronicle review of public records compiled by MDA DataQuick, a San Diego research firm. This year is on track for similar numbers, with 223 homes in that price bracket repossessed by banks since January. Back in the real estate boom year of 2005, just 42 Bay Area homes valued above $730,000 went into foreclosure; in 2006, the number was 80. June 1, 2010
Summit Highlighted Supportive Housing ConceptsA coalition that has successfully brought supportive housing to battle homelessness at tribes in the Midwest now aims to expand into the Southwest and Northwest. Independently, another supportive housing project is set to serve homeless urban Indians in Albuquerque. The American Indian Supportive Housing Initiative recently co-hosted a summit at the Sandia Pueblo in New Mexico to carry the supportive housing concept into rural tribal areas in the Southwest. Indians make up 1.5 percent of the nation’s population but 8.5 percent of its homeless population, according to AISHI, making them perfect candidates for this kind of intervention, where supportive services like mental and medical health care, vocational and employment services, child care, independent living skills training and substance abuse counseling are supplied to them where they live. June 1, 2010
Legal Mess Over Foreclosures DeepeningAn attempt to fix the sloppy legal work plaguing thousands of foreclosure cases in Florida has been ineffective, and has now caused a legal mess of its own. The Florida Supreme Court got tough on attorneys for banks and lenders in February, responding to stories of homeowners losing their property based on shoddy or incomplete paperwork. The incomplete filings also wasted judicial resources and clogged up the courts. To combat that, a new rule enacted by the high court requires the attorney or bank filing a foreclosure to verify — under penalty of perjury — that the allegations and paperwork are accurate when a residential property is at stake. But attorneys have not followed the rule. June 1, 2010
TX: Report Sites Gap Between Wages, Affordable Rental HomesKaren Stegall’s hunt for a new rental home started in January after she lost her accounting job. As a single mother of three, she knew she could no longer afford the $1,200 monthly rent on the family’s three-bedroom home — not on her $1,600 monthly unemployment checks. For four months, she couldn’t find anything that fit her budget, had three or four bedrooms and was well-maintained. Complicating her search was Stegall’s desire to stay in Mansfield, where her children are involved at school but rents are higher. June 1, 2010
National Guard Helps Officer Losing Home to HOA ForeclosureUnlike the other American flags flying in Capt. Michael Clauer’s Frisco neighborhood, the one he flies actually fluttered over Iraq during his recent combat mission. Inside his home this Memorial Day, Clauer read some of the thousands of online comments about his personal battle with the Heritage Lakes Homeowners Association. Clauer has one word for how he feels: “Overwhelmed.” Last year, Capt. Clauer went on active duty for training and then combat in Iraq. In his absence, his wife May became depressed, stopped opening mail, and missed paying her bills. She fell $800 behind in their homeowners’ association dues. June 1, 2010
NYC Proposes Mandatory Saving for Homeless with JobsHomeless New Yorkers who live in shelters but have jobs would be required to put part of their wages into savings under a new city proposal. Almost 36,000 people, including 8,350 families with children, live in shelters in New York. About 20% have jobs, according to the city Department of Homeless Services. A family of three earning $10,000 a year would need to put aside $36 a month in interest-bearing savings under the proposal. The family would get access to the money upon moving out of the shelter. May 28, 2010
More Homeowners Turn to Mediation after ForeclosureWhen Mark Weeks was laid off from his $90,000-a-year construction job 2½ years ago,he vowed to hang onto his family’s house here, where he’d lived with his wife, their three children and two dogs for the last six years. But his new job as a safety officer for a Cocoa, Fla., crane rental company barely paid a third of what he used to make, and he wound up unable to pay his mortgage. At first, he tried, unsuccessfully, to get mortgage-holder Wells Fargo to defer or lower his payments. May 28, 2010
Mortgage Rates are Back Near Record LowTurmoil in the stock market and the European debt crisis are making life easier for American homebuyers and families looking to refinance: Mortgage rates are inching closer to a record low. The window of opportunity may close soon. Home loan rates will rise if investors grow more confident and shift money out of the safety of government bonds, which influence mortgage rates. For now, though, rates are tantalizingly low. The average 30-year fixed-rate loan sank to 4.78 percent this week, the lowest this year and barely above the record of 4.71 percent set in December. And 15-year loans are at their lowest rates in two decades. May 28, 2010
HUD CHARGES BUFFALO AREA REAL ESTATE COMPANY AND BROKER FOR DISCRIMINATING AGAINST FAMILIES WITH CHILDRENThe U.S. Department of Housing and Urban Development (HUD) announced today that it is charging an Amherst, New York real estate company and one of its brokers with discriminating against families with children in violation of the Fair Housing Act. Specifically, HUD’s Charge of Discrimination alleges that RE/MAX North’s broker refused to rent an apartment to a family with children and refused to show another apartment to a family looking for housing. May 27, 2010
Domestic Detox: Extreme Home CleaningMr. Waletzke is a “building biology” consultant, which means he has trained for a year with the Institute for Bau-Biologie & Ecology, a Florida-based, mostly online school that teaches its students to test water, air and building materials for a checklist of toxins and then prescribe a cure. (They will also vet the cleaning products under your sink and the lotions and cosmetics in your medicine chest.) The training and its tenets are a European import, developed in post-World War II Germany to deal with the problems that emerged as new housing went up and some inhabitants began to suffer what would be later identified as “sick building syndrome,” or a sensitivity to chemicals like formaldehyde used in construction. May 27, 2010
Seattle’s Backyard Cottages Make a Dent in Housing NeedJohn Stoeck is building a one-bedroom, 437-square-foot cottage on the spot where his garage stood before a tree fell on it. Construction costs: about $50,000. When the cottage is finished this summer, he plans to rent it for at least $900 a month, which will make a nice dent in his mortgage payments.His is just one of about 50 tiny cottages sprouting in backyards across the city as it tries to expand affordable housing options in established neighborhoods without resorting to high rises and apartment complexes. The city changed zoning rules to allow cottages in single-family neighborhoods citywide, rejected a proposed cap of 50 cottages a year and helped organize a design competition to spur creation of reasonably priced plans. The point is not just to allow the cottages, but to encourage them. May 26, 2010
Luxury Homebuilder Toll Brothers Takes Smaller 2Q lossLuxury homebuilder Toll Brothers (TOL) said Wednesday that it took a smaller loss in its second quarter as write-downs of assets decreased. Contracts and the value of the company’s backlog increased for the first time in years, and Toll Brothers said it is seeing increased confidence among buyers. Toll did not benefit as much from a government tax credit as some of its competitors because it sells larger and more expensive houses. But that means it should feel less pain from the recent expiration of the credit. Eligible buyers needed to sign contracts for a home by April 30 and must close those deals by June 30 to qualify for the credit. May 26, 2010
HUD SECRETARY DONOVAN ISSUES STATEMENT ON HUD EFFORT TO TRANSFORM RENTAL ASSISTANCETuesday U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan testified before the U.S. House of Representatives Committee on Financial Services on The Preservation, Enhancement and Transformation of Rental Assistance Act (PETRA).The multi-year initiative proposed in President Obama’s FY2011 Budget seeks to preserve HUD-funded public and assisted housing, enhance housing choice for residents and streamline the department’s rental assistance programs. May 26, 2010
Bias Payments Come Too Late for Some FarmersOn a recent Sunday in rural Macon, N.C., John W. Boyd Jr., the president of the National Black Farmers Association, went to his fourth funeral in a week. Mr. Boyd has been burying his group’s members with bitter frequency, attending two or three funerals most weeks. Each death makes him feel as if he is running out of time. Wrangling over the federal budget in Washington has delayed payouts from a $1.25 billion settlement that Mr. Boyd and several others helped negotiate with the federal government to compensate black farmers who claimed that the Agriculture Department had discriminated against them in making loans. May 26, 2010
Vanishing Treasure: The Rent-Regulated ApartmentRent-controlled and rent-stabilized apartments carry mythic significance to New Yorkers starved for space. These are the high-ceiling homes featured in Woody Allen movies, the places secured by celebrities like Carly Simon, Cyndi Lauper and Ed Koch. An informal survey of some major landlords and real estate agencies turned up an Upper East Side woman paying $156.20 for two conjoined studios, a Lower East Side man paying $60 a month for a walk-up, and octogenarians and nonagenarians sprinkled through Little Italy paying $58 to $102 a month. Most of these tenants with time-warped rents declined to be interviewed, because of the hate mail they believed they would receive. But one such tenant did agree to go on the record, and he wants his fellow New Yorkers to know that he has not been able to keep his cheap apartment without a long fight. May 26, 2010
Price of Single-family Homes Drop for Sixth Straight MonthHome prices remained weak through the early months of this year, according to a closely watched housing index released Tuesday, an indication that the housing market continues to struggle despite recent improvements. The Standard & Poor’s/Case-Shiller home price index showed that prices of single-family homes were down 0.5 percent between February and March, the sixth consecutive month-over-month decline. On a seasonally adjusted basis, prices were flat, according to the index. May 26, 2010
Tax Credit Pushes April Home Sales Up 7.6% from MarchExisting home sales jumped in April as buyers rushed to take advantage of home buyers tax credits before they expired last month. Sales increased 7.6% to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, according to a report Monday from the National Association of Realtors (NAR). That’s 22.8% above the 4.70 million-unit pace in April 2009. May 25, 2010
New York’s Tallest Skyscrapers Go GreenNew York City’s two tallest skyscrapers are going green. The Bank of America Tower, the second-tallest building, became its first commercial high-righ last week to win the top or platinum rating from the non-profit U.S. Green Building Council, according to Reuters. The 54-story building, completed in 2008 at a cost of $2 billion, has its own 4.6-megawatt co-generation plant. Its steel was made of 87% recycled material, and its concrete from 45% recycled content, according to the story. May 25, 2010
Anger at The Root of Mortgage Default Problem, Study FindsMemo to the bank: Take this money-sucking, underwater house and shove it! Go ahead and wreck my credit for years to come. I’m walking away, no matter what. Why? That’s the question posed by Brent T. White, a University of Arizona law professor whose academic paper last year on the fast-spreading “strategic default” phenomenon drew sharp criticism from lenders and Wall Street, who viewed him as the Pied Piper of the walk-away movement. May 25, 2010
Housing Counsel: Investing Condo Association Money Wisely (and Legally)Q. The treasurer on our condominium’s board of directors is a stockbroker. He has persuaded our board to allow him to invest our condo association’s funds with his company. Is this legal? The board votes to approve investments, and the treasurer recuses himself from the vote. Unfortunately, it appears that this stockbroker-treasurer has a powerful impact on the rest of the board. May 25, 2010
Fannie Mae and Freddie Mac Launch Joint Effort to Improve Loan and Appraisal Data CollectionThe Federal Housing Finance Agency (FHFA) has announced a major new initiative by Freddie Mac and Fannie Mae (the Enterprises) to improve the consistency and quality of data for appraisals and other loan information. This will enhance the depth of collateral, borrower and loan data submitted to the Enterprises. The Uniform Mortgage Data Program is a long-term, joint effort to create improved and uniform data standards and collection processes. The Enterprises have worked with industry participants to develop the uniform standards. May 25, 2010
Vermont Attorney General Warns of Foreclosure Relief ScamsVermont Attorney General William H. Sorrell is warning homeowners in financial distress to avoid offers of quick fixes for their mortgage or foreclosure problems. A series of recent consumer complaints to his office have focused attention on out-of-state companies, many of them in California. The company makes promises, including to “reduce your mortgage,” “lower your monthly house payments,” “get past-due payments eliminated,” “stop foreclosure.” These “foreclosure rescue scams” have collected amounts from consumers in the range of $1,000 to $2,500 but have done nothing to assist homeowners, Sorrell said. May 25, 2010
CA: Housing in Vallejo Area Less Affordable Amid Economic RecoveryHousing in the Vallejo area is becoming less affordable, and that’s an indicator of a possible real estate market recovery, local experts said Monday. The California Building Industry Association’s latest housing affordability index shows Solano County tied with Olympia, Wash. as the nation’s 92nd least affordable out of 135 metro areas. Solano was the country’s 118th least affordable area in the last quarter of 2009, according to the index. “What that means is that the prices of our houses are going up,” local Realtor George Oakes said. The Napa area was America’s 10th least affordable area in the last quarter of 2009, and remains so in the first quarter of 2010, the index shows. May 25, 2010
More Than 400 Homeowners Meet with Lenders to Try to Stop ForeclosureHundreds of central Ohioans gathered at the Greater Columbus Convention Center yesterday, united by a question: How can I keep my home? Many had lost their jobs. Some had gone through a divorce. And some were simply in over their heads. But all were behind on their mortgages. Armed with financial documents and, in a few cases, with children in tow, they were determined to meet face to face with lenders in hopes of avoiding foreclosure. May 25, 2010
Racine, WI: Affirmative Action: City Close to Updating 37-year-old Housing Discrimination OrdinanceA city committee will have new power to investigate and fine incidents of housing discrimination under an ordinance that’s headed to the City Council. The Finance and Personnel Committee voted 3-0 Monday night to give the city’s Affirmative Action and Human Rights Commission remarkable new powers. Under the ordinance, the volunteer commission will be able to hold hearings on housing discrimination complaints and fine landlords or homeowners up to $25,000 for violating discrimination laws.

The ordinance essentially localizes housing discrimination complaints that had been handled by the federal government in the past. Federal complaints took months, even years, to resolve. The local ordinance should give city residents a faster resolution to housing discrimination complaints, officials said. May 25, 2010
NYC: Judge Lets Bway Triangle Suit Move ForwardCity officials criticized a judge’s ruling last week allowing a lawsuit against a major rezoning initiative to move forward — saying that the decision to allow the suit to continue would delay construction of new housing on the South Williamsburg site. Justice Emily Goodman’s decision, city attorneys argued, could stall development of the Broadway Triangle for several months, endangering state money promised to two nonprofit organizations slated to develop it. Forty community groups filed a lawsuit in December, accusing the city of discriminating against them by rezoning the area with the strong backing of the City Council. May 25, 2010
Some Harlem Churches in Fight for Survival May 24, 2010
For Some Brokers, Location Is All RelativeAt newly built Brooklyn apartment buildings along the Brooklyn-Queens Expressway in Williamsburg and Greenpoint, David Maundrell, the president of Aptsandlofts.com, had to persuade some developers to turn their condos into rentals or cut prices. He advises brokers to be direct but also to have a sense of humor. He suggests jokes like “At least you’ll always know what the traffic is like.” Lindsay Greene and her fiancé, Ricardo Colon, who moved into a $1,750-a-month one-bedroom at 60 Monitor Street in Williamsburg, said that they had never dreamed they could afford to rent a new apartment. After they moved in, Ms. Greene said, “Rick and I felt like we were living in a hotel.” May 20, 2010
Mortgage Data Leaves Bankers Uncertain of TrendData released Wednesday by the Mortgage Bankers Association showed the mortgage delinquency rate rose in the first quarter to 9.38 percent of all loans outstanding, from 8.22 percent in same period last year. When adjusted for seasonal variations, the default rate rose over 10 percent for the first time.Seasonal adjustments are used to smooth out data in ordinary times, but in these extraordinary times the bankers’ group said it was not sure how much they could be trusted. In the first quarter the seasonal adjustments showed the delinquency rate worsened considerably. The raw data, on the other hand, indicated a marked improvement. May 20, 2010
10% of Homeowners Missed A Mortgage Payment in Q1The number of homeowners who missed at least one payment on their mortgage surged to a record in the first quarter of the year. More than 10% of homeowners had missed at least one mortgage payment in the January-March period, the Mortgage Bankers Association said Wednesday. That number was up from 9.5% in the fourth quarter of last year and 9.1% a year earlier. May 20, 2010
Affordable Housing Loan Will Safeguard Abington’s Chestnut GlenA Rhode Island real-estate company has been awarded a $14.2 million loan by MassHousing to purchase and rehabilitate Chestnut Glen, a 130-unit subsidized housing development at 585 Chestnut St. MassHousing announced the loan to Rhode Island Homes LLC, a subsidiary of Providence Realty Investment.The loan is part of $110 million in loan commitments for the preservation of affordable housing for seniors and families in 10 apartment communities. “Without this transaction, the previous owner (of Chestnut Glen) would have been eligible to potentially pay off their existing subsidized mortgage loan in a couple of years and convert the units to market units, which would have displaced many elderly residents,” MassHousing spokesman Eric Gedstad said. May 20, 2010
Greed’s Role in the Economic, Housing CrisisWhile some foreclosures can be blamed on predators who strapped unwitting buyers into homes and loans they could never afford, a new study by researchers at the University of Arkansas maintains that the majority of foreclosures in 2007-2008 occurred to buyers who overreached and spent recklessly. The study found that most of the two million homes in foreclosure during those years were owned by “Cash & Careers” Gen-Xers, a demographic group described as “relatively affluent and highly educated people, with few or no children.” Born between the mid-1960s and the early 1970s, these buyers were given too much loan credit and bought more home than they could afford, anticipating that they “could always sell it for more than they paid.” May 20, 2010
New Foreclosure Rescue Scam Unleashed in IdahoThe Idaho attorney general says scam artists are exploiting troubled homeowners with half-truths and lies. So-called forensic auditors, mortgage-loan auditors and foreclosure-prevention auditors charge upfront fees ranging from $1,000 to $1,500 to review consumers’ mortgage documents, reportedly to determine whether lenders complied with mortgage lending laws, Attorney General Lawrence Wasden said Wednesday. May 20, 2010
At First Blush, Northern New Jersey Officials are Pleased with the Governor’s Revamped Affordable Housing PlanLocal officials seemed pleased with the plan Governor Chris Christie unveiled Thursday that would eliminate the state’s Council on Affordable Housing (COAH) and return decisions to local control. Municipalities will be required to conduct an inventory of existing affordable housing to determine what their future needs will require. Pequannock Mayor Ed Engelbart’s reaction to Christie’s proposal is that it looked much more “doable” for New Jersey’s municipalities, especially Pequannock, which under COAH’s old formula, still had to build more than 300 units. May 20, 2010
Lack of Affordable Housing Disproportionately Affects People with HIV/AIDSNearly three decades into the AIDS epidemic, a lack of affordable housing for those who live with the virus leaves them increasingly vulnerable as cities struggle to balance their budgets. In Atlanta, wheelchair-bound AIDS activist Patrick Ford became homeless when a friend with whom he was living moved away and he could not find affordable housing. New York City Mayor Michael Bloomberg has proposed slashing the AIDS housing funding municipal law mandates. And in San Francisco, where the phrase “affordable housing” is a permanent oxymoron, those with HIV/AIDS on government assistance often cannot qualify for what housing there is, and they face rampant homophobia from staff and fellow city shelter residents. May 20, 2010
Housing and HomelessnessMore than 70% of extremely low-income households spend more than half of their income on housing— exceeding HUD’s affordability standard — and more than 3.5 million people experience homelessness each year — the most visible and vicious symptom of our affordable housing crisis. This is not just limited to the rental market; the increase in home foreclosures recently has also contributed to homelessness. Most of the homeless providers surveyed in 2009 said that they were serving clients who were homeless because the home they were occupying had been foreclosed upon. May 20, 2010
Angry Group Doesn’t Want ‘Affordable Housing’ Near ThemAn angry group of people - probably 70 to 75 individuals - jammed the meeting room of the Veterans Park Community Center and nearly took over the meeting, delaying the regular part of the meeting for an hour while LACPC President Edd Weiner banged his gavel several times to quiet the audience. The people were upset that an “affordable housing complex” was being build in their neighborhood of Covington Meadows, a small development just off Beth Stacey Blvd. May 20, 2010
Work to Begin Soon on Public Housing ReplacementsGalveston Housing Authority commissioners have awarded a $2.75 million contract to a construction company to build 20 duplexes, the first of 569 units replacing hurricane-damaged public housing.Construction could begin this month, authority spokesman Justin Herter said. Crews already have removed dead trees from the property. The authority Monday awarded the contract to Guaranteed Builders, which built the original Oaks development, a neighborhood of single-family federally subsidized homes. May 20, 2010
HUD Foreclosure Aid May Yield Windfall for Major Md. LocalitiesMontgomery, Prince George’s and Baltimore counties may receive an additional $3 million to $6 million total this fall through a federal program that helps communities buy and redevelop foreclosed properties, according to estimates released Tuesday by the Department of Housing and Urban Development. The program aims to stabilize neighborhoods plagued by foreclosures, after which properties tend to sell at fire sale prices and drag down surrounding property values. The Bush administration awarded $4 billion to various states when it launched the program in 2008. May 20, 2010
Housing Market Diagnosis: BipolarBipolar is what comes to mind when diagnosing the post-homebuyer tax credit market. There are two separate forces pulling it in opposite directions, and experts aren’t yet sure which path the market will take. On one hand, sales and prices are rising, indicating recovery. On the other hand, so are interest rates and repossessions, which most certainly do not. And then there are the millions of foreclosures that need to be sold but haven’t yet been listed — so-called shadow inventory — that could derail a real recovery if they hit the market in floods. May 20, 2010
Foreclosures Threaten Metro Detroit Housing RecoveryA budding recovery in Metro Detroit home prices could soon be wiped out by a new wave of foreclosures and a growing stockpile of bank-owned homes and condos. April’s report that the median home price for the 10-county southeastern Michigan region rose from $25,225 to $37,000 seemed like the rare ray of good news in the region’s troubled housing market. The cause for that improvement included a drop in the supply of unsold homes and the fact that regular home sales were finally outpacing the sale of foreclosed properties, according to data from RealComp II, a Farmington Hills real estate data firm. May 20, 2010
Ohio Homeowners Receiving Loan Help Less OftenToo few Ohioans are making it into a federal program that helps homeowners avoid foreclosure, according to counselors who guide people through red tape to modify their loans. The federal Home Affordable Modification Program has resulted in modifications to 16.6 percent of loans that are 90 days or more past due in Ohio. That places the state’s rate of loan modifications nearly last among the 50 states and the District of Columbia. “It’s amazing. Month after month we remain 48th out of 51,” said Paul Bellamy, who tracks the numbers as director of the Cuyahoga County Foreclosure Prevention Program. “No one has ever stood up from the industry and said ‘Here’s what’s going on.’” May 20, 2010
Mortgage Delinquency at Record High, but Borrowers Falling Behind at Slower RateThe number of U.S. homeowners who are behind on their mortgages rose to a record level in the first quarter, according to industry data released Wednesday that also included tentative signs that the nation’s foreclosure crisis may be starting to ease. The increase in mortgage delinquency was a surprising and unwelcome sign for economists expecting the recent improvements in the economy to translate into fewer homeowners falling into trouble. On a seasonally adjusted basis, about 10 percent of borrowers were delinquent on their mortgages during the first three months of this year — a record, according to the survey by the Mortgage Bankers Association. That is up from about 9.1 percent during the same period last year and 9.5 percent during the fourth quarter of 2009. May 20, 2010
Fannie Mae, Freddie Mac to Deploy Appraisal Complaint ProcessFannie Mae and Freddie Mac will deploy a complaint process for violations of the Home Valuation Code of Conduct (HVCC), according to a letter from FHFA Acting Director Edward J. DeMarco to New York Attorney General Andrew Cuomo. The letter, which outlines developments with the HVCC and related agreements, states that Fannie Mae and Freddie Mac, now in conservatorship, will not be funding the Independent Valuation Protection Institute (IVPI). May 20, 2010
Balconies Declared Unsafe at 16 New York BuildingsThousands of residents in 16 buildings across New York City have been ordered to stop using balconies that were found to be unsafe by the Department of Buildings. The warnings came as inspectors conducted safety reviews around the city after a man fell to his death in March when part of the railing on his balcony gave way. Inspectors have also found that about 800 building owners have failed to file inspection reports, required every five years, demonstrating the safety of their balconies and terraces. Teams have been conducting street-level examinations, with inspectors and engineers peering up at balconies with binoculars and entering buildings for physical inspections. They have found loose railings, crumbing concrete and unsecured railing posts. May 18, 2010
Stall in Applications for Federal Mortgage ProgramA major effort by the Obama administration to keep homeowners out of foreclosure may be reaching its limits long before the crisis abates. The government’s loan modification program has helped about 300,000 defaulting households get permanent new loans, according to federal data released on Monday. But that is only a small fraction of the estimated four million households in danger of foreclosure and of the 1.7 million households that the governments thinks would qualify for the program. Begun only a year ago, the Making Home Affordable Program already seems to be running low on applicants. The number of borrowers that enrolled in the trial phrase in April was only about a third of the number that signed up in September. May 18, 2010
Building Is Booming in a City of Empty HousesHome prices in Las Vegas are down by 60 percent from 2006 in one of the steepest descents in modern times. There are 9,517 spanking new houses sitting empty. An additional 5,600 homes were repossessed by lenders in the first three months of this year and could soon be for sale. Yet builders here are putting up 1,100 homes, and they are frantically buying lots for even more. Las Vegas is trying to recover by building what it does not need. It is an unlikely pattern being repeated in many of the areas where the housing crash was most severe. May 18, 2010
Applying for Mortgage? Starting June 1, You Could Face Another Credit ScreeningIf you’re thinking about applying for a home mortgage, here’s some important news: Beginning June 1, your lender is likely to order a second full credit screening immediately before closing. The last-minute credit report will be designed to find out whether you have obtained — or even shopped for — new debt between the date of your loan application and the closing. If you’ve made applications for credit of any type — for furnishings and appliances for the new house, a car, landscaping, a home equity line, a new credit card, you name it — the closing could be put on hold pending additional research by the lender. May 18, 2010
Rush is On to Claim First-time Home Buyers Tax CreditAfter breaking up with her longtime boyfriend and finding a job she loves in Denver, Quinn Kelsey decided last Friday to take advantage of the home buyers’ tax credit. She found a condo she liked in her neighborhood and called a local Realtor’s office to hire an agent. She got preapproved for a loan in an hour. Early this week, she put in her offer, with just one contingency: Her offer had to be accepted before the tax credit deadline Friday. April 29, 2010
Cities Offer Discounts on Green MowersWhen a gasoline-powered mower rumbles along a lawn, the tiny puff of carbon monoxide it coughs up is barely noticeable. But multiply that puff by 44 million — the number of gasoline-powered push mowers the U.S. Environmental Protection Agency estimates are in use in the USA — and it’s an air quality issue, especially in areas facing the likelihood of violating clean air standards that will take effect Aug. 31, EPA spokesman Dave Ryan says. April 29, 2010
Real Estate: Chicago-area Home Sales Take OffChicago-area home sales are surging — up more than 45% from a year ago. The Windy City housing market didn’t suffer as badly as Florida and Nevada, for example, “But we were not unscathed by any means,” says Genie Birch, president of the Chicago Association of Realtors. Low prices, low mortgage rates and the federal first-time home buyer tax credit have changed the market. Regional sales steadily increased the past six months, spurred by lower home prices and the tax credit. In March, home sales were 45.4% higher than in March 2009. April 27, 2010
Mortgage Fraud Incidents Rise 7% Last YearIncidents of residential mortgage fraud increased last year, a sign that scammers are still targeting the industry despite more diligent efforts to find and report it. The number of mortgage fraud reports among loans made in 2009 grew 7%, a smaller increase than the 26% jump the previous year, according to a study released Monday by the LexisNexis Mortgage Asset Research Institute. As for the types of fraud, misrepresentation of information on mortgage applications accounted for 59% of reported incidents. Fraud related to appraisals was second, increasing to 33% of reported incidents last year from 22% in 2008. April 27, 2010
Mortgage Deals Under Scrutiny as Goldman Faces SenatorsThe legal storm buffeting Goldman Sachs continued to rage Tuesday just ahead of what is expected to be a contentious Senate hearing at which bank executives plan to defend their actions during the housing crisis. Senate investigators on Monday claimed that Goldman Sachs had devised not one but a series of complex deals to profit from the collapse of the home mortgage market. The claims suggested for the first time that the inquiries into Goldman were stretching beyond the sole mortgage deal singled out by the Securities and Exchange Commission. The S.E.C. has accused Goldman of defrauding investors in that single transaction, Abacus 2007-AC1, have thrust the bank into a legal whirlwind. April 27, 2010
Inspector Says He Faked Data in New York Building TestsA safety inspector licensed to make critical assessments of asbestos and lead risks in buildings and at construction sites across the city made a stunning admission in federal court: Despite filing hundreds of reports saying his tests had found no danger, he had not performed a single one of the tests. The inspector, Saverio F. Todaro, 68, submitted clean asbestos or lead test results for well over 200 buildings and apartments, including some that were demolished or renovated to make way for publicly financed projects under the Bloomberg administration’s affordable-housing program, according to people briefed on the matter and court papers. April 27, 2010
Eager to Rebuild Willets Point, City Faces Legal Fight From Property OwnersIt is one of Mayor Michael R. Bloomberg’s signature projects — the sweeping transformation of Willets Point, a slice of Queens that has long been among the city’s most neglected pieces of real estate. And a little over a year ago, it seemed like a done deal. The City Council approved the proposal, which would sweep aside the car-repair shops, junkyards and small factories in the shadow of Citi Field to make room for 5,500 apartments, parks, office buildings, stores, restaurants and a hotel.Many of the largest property owners agreed to sell to the city, and the city could use eminent domain to force out those who refused. April 27, 2010
Home Tax Credit Called Successful, but CostlyRealtors, home buyers and sellers are rushing to complete sales agreements before the tax credit for home purchases expires this week. Home buyers must have a deal by April 30 and close by June 30 to qualify for the federal tax break, up to $8,000 for first-timers and $6,500 for those merely moving to a different residence. Though the Treasury Department and the real estate industry have termed the program a success, helping 1.8 million people buy homes, many tax policy experts say it has been singularly cost-ineffective… April 27, 2010
Cape Cod Project Is Crucial Step for U.S. Wind IndustryMore than 800 giant wind turbines spin off the coasts of Denmark, Britain and seven other European countries, generating enough electricity from strong ocean breezes to power hundreds of thousands of homes. China’s first offshore wind farm, a 102-megawatt venture near Shanghai, goes online this month, with more in the pipeline. But despite a decade of efforts, not a single offshore turbine has been built in the United States. Experts say progress has been slowed by a variety of factors, including poor economics, an uncertain regulatory framework and local opposition. April 27, 2010
Probe, Suit Force Goldman to Defend Actions in CrisisMost big Wall Street firms sold investments that contributed to the financial crisis. And most suffered in the markets, with some forced out of business. But it’s Goldman Sachs, the bank that not only survived but prospered from the crisis, whose executives are being called before a congressional firing line Tuesday over accusations that the firm bet against the American homeowner, betrayed its clients and helped fuel the financial meltdown. Unlike most others, however, Goldman also profited by betting against the housing market as it began to falter and unloaded bad investments to other parties, according to the committee. April 27, 2010
Opinion: The Wrong Approach to Helping Struggling Borrowers Stay in Their HomesCalifornia legislators are currently considering Senate Bill 1275, a measure proponents see as welcome help to deal with the foreclosure crisis, providing homeowners a chance to stay in their homes while they seek a loan modification. At first glance, this would seem to be a worthwhile public policy proposal. However, SB 1275 is nothing more than a litigation minefield that goes far beyond that goal, ignoring several years worth of collaboration among the financial services industry, consumer groups and policy makers to achieve meaningful reforms currently assisting struggling borrowers. April 27, 2010
Federal Housing Finance Agency Reports Mortgage Interest RatesThe Federal Housing Finance Agency today reported that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 4 basis points to 5.09 percent in March. The average interest rate on 15-year, fixed-rate loans of $417,000 decreased 8 basis points to 4.57 percent in March. These rates are calculated from the FHFA’s Monthly Interest Rate Survey (MIRS) of purchase-money mortgages. April 27, 2010
5 Key Steps to Buying Your First Home, Tax Credit or NoAs a Realtor, Lacy Williams gives presentations to first-time home buyers about what to expect when buying a home. She often finds she must start at the beginning, helping novice buyers decide whether it makes more financial sense to rent or buy. Then she gets down to the nuts and bolts: how to get a loan, pick a Realtor and look for a home. “I tell people there are no stupid questions. Ask anything you don’t understand,” says Williams, with Joyner Fine Properties in Richmond, Va. “One of the biggest mistakes they make is they go to an open house and wind up buying from the listing agent. The listing agent represents the seller. They need a Realtor who represents them.” April 26, 2010
Housing Counsel: Addressing Concerns About Fraudulent Property Deed TransfersQ: My father is in his 90s and in frail health. He owns a house in the District, free and clear of any debt, and my cousin just told me that she now owns it. I am concerned that my cousin forged my dad’s name on the deed. My father has always assured me that I would inherit the house, and he does not remember signing any documents. What should I do? April 26, 2010
New-home Sales Jump 27%, Biggest Gain in 47 YearsSales of new homes surged 27% last month, bouncing off the previous month’s record low and blowing past expectations as better weather and government incentives boosted sales. The Commerce Department said Friday that new-home sales rose in March to a seasonally adjusted annual sales pace of 411,000. It was the strongest month since last July and the biggest monthly increase in 47 years. Economists surveyed by Thomson Reuters had expected a sales pace of 330,000. February’s results were revised upward to 324,000, but remained an all-time low. Sales had been especially weak over the winter, partly due to bad weather in much of the country. April 23, 2010
MICHIGAN FAIR HOUSING GROUPS AWARDED $1.1 MILLION TO HELP FIGHT DISCRIMINATIONThe U.S. Department of Housing and Urban Development today presented over $1.1 million to five fair housing organizations to help fight housing discrimination in Michigan. John Trasviña, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity, made the grant presentations to Fair Housing Center of Metropolitan Detroit, Fair Housing Center of Southeastern Michigan, Legal Services of Eastern Michigan, and Fair Housing Center of West Michigan (see attached list below for project descriptions). Earlier this year, HUD awarded $26.3 million to 98 fair housing organizations and other non-profit agencies in 37 states and the District of Columbia to assist people who believe they have been victims of housing discrimination. April 23, 2010
ON EARTH DAY HUD SECRETARY DONOVAN ANNOUNCES RECOVERY ACT FUNDS TO RETROFIT AFFORDABLE HOUSING IN WASHINGTON, D.C.On the 40th Anniversary of Earth Day, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced that 94 apartments in Southeast Washington, D.C. will become greener and more energy efficient as a result of $1.5 million in Recovery Act funding being awarded to Garfield Hills Apartments, an affordable housing development. Secretary Donovan announced the funding at an event at Garfield Hills with Congresswoman Holmes Norton and Mayor Fenty. April 23, 2010
Fewer Blacks in City Could Affect the PoliticsWhether you’re Mayor Richard M. Daley or Mayor-In-His-Mind-Rahm Emanuel, no voting group is more important for a Democrat than the city’s African-Americans. Increasingly, there are fewer of them. Like Rod R. Blagojevich, the Census keeps on giving, and newly-crunched data shows a big decline in the city’s black population. The reasons aren’t mysterious, nor are the ramifications. But the decline may surprise some and might prompt questions about the impact on mayoral and other political races. April 23, 2010
Buildings Superintendent Harassed Women, Suit SaysA convicted child sex offender who worked for eight years as a superintendent at three buildings on Manhattan’s Upper West Side has been sued by the United States attorney’s office, which accused him of sexually harassing female tenants and demanding sexual favors in exchange for reductions in rent. According to the lawsuit, filed Tuesday in United States District Court in Manhattan, the superintendent, William Barnason, 57, made unwanted verbal advances and threats to female tenants of the three buildings, on West 73rd and West 75th Streets. He grabbed several women inappropriately, the lawsuit said, and attempted to enter their apartments while drunk. April 23, 2010
Credit-rating Agencies were Lax, Senate Probe FindsA probe of the credit-rating industry by the Senate Permanent Subcommittee on Investigations found that firms used outdated models, were influenced by their clients and waited too long to downgrade investments as the collapse in the housing market intensified in the year before the financial crisis. The probe shows that some employees at the credit-rating companies were hungry for fees and apparently willing to compromise objective analysis of the quality of investments, according to material released Thursday. April 23, 2010
Earth Day: 10 Lessons for Building a Green HouseOur contemporary, though six-bedroom, home in the upscale Washington suburb of McLean, Va., never seemed extravagant, or stuffed. For good reason. At 4,500 square feet — not to mention the 500 square feet of unfinished storage space and a two-car garage — it was nearly twice the size of an average U.S. home, three times the size of the home in which we had started our family. It was so big that seven sofas didn’t crowd it, nor did the six TVs, exercise equipment or the arcade-sized air hockey table. So began the journey to our green home, now only semi-complete. We expect to get our building permit and break ground early next month. April 22, 2010
Houses of 2020 Will be All About EnergyThe American house of 2020 will likely be smaller, smarter, more urban and efficient. Builders already are including basic features such as programmable thermostats, found a January survey by the National Association of Home Builders. “It’s not rocket science, but it helps control energy costs,” says NAHB’s Stephen Mellmen. “Affordability is driving these decisions.” Perhaps the most obvious change will be home size. Of builders surveyed, 96% plan to build smaller. The trend began with upscale buyers before the recession and has intensified, says Kermit Baker of Harvard University’s Joint Center for Housing Studies. April 22, 2010
HUD CHARGES MIAMI HOUSING CORPORATION WITH DISCRIMINATING AGAINST DISABLED VETERANThe U.S. Department of Housing and Urban Development today announced that it is charging the Urban League Housing Corporation of Greater Miami, Inc., its president, and a management company with violating the Fair Housing Act by refusing to make one of its units accessible for a disabled veteran. HUD brings the charge on behalf of a 71 year-old double amputee veteran, who uses a wheelchair for mobility. In addition, the Corporation allegedly refused to transfer the veteran to an accessible unit and threatened to evict him after he sought assistance from the Miami-Dade County Commissioner’s office. April 22, 2010
National Campaign Launches to Protect Children and Families from Lead Poisoning April 22, 2010
Goldman CEO Lloyd Blankfein to Testify at Senate HearingThe SEC filed a civil lawsuit last week alleging that Goldman, and specifically Tourre, failed to disclose important information about a $1 billion security that they sold — a collateralized debt obligation called ABACUS 2007 AC-1, which was tied to the value of subprime mortgages. Tourre enabled hedge fund investor John Paulson to help choose the mortgages behind ABACUS, but didn’t let on that he planned to bet that it would fail, the lawsuit says. A collateralized debt obligation is a contract that bets on the future value of certain assets but does not include the properties themselves. ABACUS became worthless within months after it was sold when the housing market collapsed April 22, 2010
Firm Tries to Jump Start Market for Mortgage SecuritiesIn a move that could be good news for high-end home buyers, a California firm will try to jump-start the dormant market for mortgage securities. If more companies follow, it could lead to lower mortgage rates. Redwood Trust of Mill Valley, Calif., said Wednesday it would sell $222 million in securities backed by pools of mortgages. It would be the first private sale of mortgage investments backed by new loans in two years. “Increasing investor appetite for bonds backed by large mortgages will help bring rates lower,” said Greg McBride, senior financial analyst at Bankrate.com. “It’s a very positive development, and one that’s been a long time in coming.” April 22, 2010
Cities Consider Selling Water, Sewer Systems for CashTight budgets and falling revenues are prompting cities across the USA to consider selling municipal water and sewer systems to private companies. American Water, which operates in 35 states, is discussing deals with 75 municipalities and other entities — the most in at least four years, CEO Don Correll says. Aqua America, which operates in 14 states, sent letters to thousands of cities in the past year and is talking with about 40 of them, CEO Nick DeBenedictis says. He expects to acquire about 20 systems this year. April 22, 2010
At 40, Earth Day Is Now Big BusinessWhile the momentum for the first Earth Day came from the grass roots, many corporations say that it is often the business community that now leads the way in environmental innovation — and they want to get their customers interested. In an era when the population is more divided on the importance of environmental issues than it was four decades ago, the April event offers a rare window, they say, when customers are game to learn about the environmentally friendly changes the companies have made. Frank Sherman, United States green officer for TD Bank, said the company hurried to get its prototype of a highly energy-efficient bank branch building in Queens ready for Earth Day because that’s when “people are paying attention.” April 22, 2010
In Sour Home Market, Buying Often Beats RentingIn some once bubbly markets, prices have fallen so far that buying a home appears to be a bargain, based on a New York Times analysis of prices and rents in 54 metropolitan areas. In South Florida, Phoenix and Las Vegas, house prices — relative to rents — are as low as in places that never experienced a bubble, like Indianapolis and St. Louis. But in a handful of other areas, including San Francisco, Seattle and Portland, Ore., house prices remain significantly higher than they were before the bubble began. People who buy a home in these areas will face higher monthly costs than if they rented, even after taking tax deductions into account. As a result, buyers are effectively betting that prices will rise enough in future years to cover the difference. April 22, 2010
U.S. Offers a Hand to Those on Eviction’s EdgeTwo years into a merciless downward spiral, Antonio Moore was threatened with living on the street. He had lost his $75,000-a-year job as a mortgage consultant, his three-bedroom house with a Jacuzzi, his Lexus sedan. He could no longer pay even the rent on his cramped studio apartment — not on his $10-an-hour part-time job as a fry cook at a fast food restaurant. Faced with eviction, he was staring last month at the imminent prospect of joining the teeming ranks of the homeless. His last hope was a new $1.5 billion federal program aimed at preventing that fate. April 22, 2010
A State With Plenty of Jobs but Few Places to LiveNorth Dakota has a novel problem: plenty of jobs, but nowhere to put the people who hold them. The same forces that have resulted in more homelessness elsewhere — unemployment, foreclosure, economic misery — have pushed laid off workers from California, Florida, Minnesota, Michigan and Wyoming to abundant jobs here, especially in the booming oil fields. But in this city rising from the long empty stretches of North Dakota, hundreds are sleeping in their cars or living in motel rooms, pup tents and tiny campers meant for weekend getaways in warmer climes. They are staying on cots in offices and in sleeping bags in the concrete basements of people they barely know. April 22, 2010
Lead Poisoning, a Stubborn NemesisLead poisoning among young children, which can cause learning and behavior problems, has decreased so sharply in recent decades that it is tempting to consider it a problem of the past. The Centers for Disease Control and Prevention was so confident about the decline in childhood lead poisoning that it set a goal of 2010 for eliminating it. But federal health officials now say eradication may still be years away because hazards remain in often poor urban pockets — mostly from old, badly maintained housing with lead-based paint. April 22, 2010
Economy Has Shifted Americans’ Attitudes About Homeownership and MoneySince 2007, Americans have suffered through the worst economic conditions since the Great Depression. The real estate market collapsed, banks failed and unemployment became commonplace. As many people who lived through the privation of the 1930s developed lifelong frugality, we, too, may emerge from the recession with our beliefs about real estate and personal finance permanently transformed. In fact, the number of people who think that homes are safe investments has fallen 13 percentage points (to about 70 percent) in the past seven years, according to a poll released this week by Fannie Mae, a mortgage finance company that has operated under federal conservatorship since 2008. April 22, 2010
Urgent Mortgage Moves Need not Destroy Credit ScoresFinancially stressed homeowners looking to cut their mortgage payments through a loan modification, short sale or principal reduction under one of the Obama administration’s programs needn’t wreck their credit scores in the process. In fact, according to a new study covering more than 400,000 active consumer credit files, some modification options can increase your scores rather than depress them. Other alternatives to modification — such as foreclosure and bankruptcy filings — can tank your scores and take years to rehabilitate. April 22, 2010
Former KB Home CEO Convicted in Backdating TrialThe former head of construction giant KB Home was convicted Wednesday of four felony counts in a stock option backdating scam. A federal jury in Los Angeles found Bruce Karatz guilty of two counts of mail fraud, one count of lying to company accountants and one count of making false statements in reports to the Securities and Exchange Commission. Karatz was acquitted on 16 other counts. April 22, 2010
California Home Default Cases PlungeThe California foreclosure crisis appears to be abating, new data show, as the federal government and big lenders step up efforts to keep troubled borrowers in their homes. Mortgage default notices — the first step toward foreclosure — plunged 40.2% statewide in the first three months of the year compared with the same period in 2009, according to San Diego research firm MDA DataQuick. Foreclosure sales dropped 1.7% from a year earlier and 16.1% from the last three months of 2009, DataQuick said Tuesday. The numbers suggest that the housing market won’t be flooded by a fresh wave of bank repossessions, which had been seen as a major threat to the market’s recovery. April 22, 2010
U.S. Monthly House Price Index Declines 0.2 Percent from January to FebruaryU.S. house prices fell 0.2 percent on a seasonally adjusted basis from January to February, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.6 percent decline in January was unchanged. For the 12 months ending in February, U.S. prices fell 3.4 percent. The U.S. index is 13.3 percent below its April 2007 peak. April 22, 2010
U.S. Foreclosure Filings Rise 16% as Bank Seizures Set RecordForeclosure filings in the U.S. rose 16 percent in the first quarter from a year earlier and bank seizures hit a record as lenders stepped up action against delinquent homeowners, according to RealtyTrac Inc. A total of 932,234 homes, or one out of every 138 households, received a default or auction notice, or were repossessed by banks, the Irvine, California-based firm said today. In March, filings rose 8 percent to the most in any month since RealtyTrac began publishing reports in January 2005. April 22, 2010
Hawaii Rents, Already Least Affordable in Nation, Get WorseAt a time when Hawai’i families are weathering pay cuts and job losses, here’s more gloomy news: The income needed to afford a modest two-bedroom rental in the Islands rose by nearly $3,000 this year to $64,396 annually — $26,000 more than the national average, a report on housing affordability shows. The National Low Income Housing Coalition’s 2010 Out of Reach study, which was released yesterday, again ranks Hawai’i as the least affordable state in the nation for renters — a spot it has held since 2005. The study puts Hawai’i’s “housing wage,” a calculation of the minimum hourly pay needed to rent a two-bedroom home, at $30.96 in 2010, up from $29.53 (or $61,428 annually) the year before. April 22, 2010
How Foreclosure Impacts Your Credit ScoreIf you’re delinquent on your mortgage, your credit score will suffer. Everyone knows that. The question is, by how much? Until recently, those answers were hard to come by. Credit bureaus were uncommunicative about expressing, in points, just how much impact different foreclosure types of mortgage delinquencies have on scores. Recently, Fair Isaac, which developed FICO scores, pulled back the curtain a bit, revealing some estimates of point-score declines following mortgage delinquency problems. April 22, 2010
A Tide of Homelessness Tests The New Safety NetTwo years into a merciless downward spiral, Antonio Moore was threatened with living on the street. He had lost his $75,000-a-year job as a mortgage consultant, his three-bedroom house with a Jacuzzi, his Lexus sedan. He could no longer pay even the rent on his cramped studio apartment — not on his $10-an-hour part-time job as a fry cook at a fast-food restaurant. Faced with eviction, he was staring last month at the imminent prospect of joining the teeming ranks of the homeless. His last hope was a new $1.5 billion federal program aimed at preventing that fate. Within days of applying, a check for $775 was on its way to Moore’s landlord, enabling him to stay — at least for now. April 22, 2010
NC—Foxx: Fix Low-income Housing RulesCharlotte Mayor Anthony Foxx, who says the city’s current efforts to disperse low-income housing have failed, wants Charlotte to offer developers incentives to build public housing in areas where there is none. Foxx said the city could allow developers to build more houses or condos than zoning allows if they include affordable units. He has also floated the idea of speeding up the permitting process and of offsetting their costs with taxpayer money. April 22, 2010
Spike Seen in Number of Homeowners Who Lost Federal Mortgage AidHomeowners taking advantage of mortgage aid under a federal foreclosure-prevention plan are being dropped from the program at an increasing rate, potentially forcing more borrowers out of their homes as the program struggles to make an impact, according to Treasury data released Monday.The program, known as Making Home Affordable, pays lenders to lower the mortgage payments of distressed borrowers, but it has struggled to have a significant effect on the country’s foreclosure crisis. Now it is increasingly losing borrowers who didn’t submit enough documentation to prove they qualified for the help or who fell behind on their new lower mortgage payments. April 18, 2010
Brian Gilmore / Obama Must Do More to Help People Facing ForeclosureEvery week, more and more consumers contact the housing clinic I direct at the Howard University School of Law seeking assistance with their housing problems. Most of the consumers are facing imminent foreclosure and are looking for counsel about negotiating loan modifications on their loans that have gone bad. There are so many people in search of help now that we have to turn some away. April 16, 2010
HUD CHARGES PHILADELPHIA-AREA LANDLORDS WITH DISCRIMINATING AGAINST ADOPTIVE MOMThe U.S. Department of Housing and Urban Development announced today that it is charging the owners of several apartment buildings in suburban Philadelphia with discriminating against families with children. HUD charges Charles and Patricia Trucksess with illegally terminating the lease of a single mother because she adopted an 11-year old child. In addition, the Department alleges that the landlords made discriminatory statements indicating that they did not rent to families with children and that they discouraged other families from applying for available rental units by understating the number of bedrooms. April 16, 2010
A Reprieve for Some Who Receive Housing AidSome of the 10,000 low-income families in danger of losing the rental assistance they get through a voucher program will probably keep receiving it, thanks to $23.5 million that the New York City Housing Authority is to receive from the federal government, officials said Thursday. The money, from the federal Department of Housing and Urban Development, will help bridge a $45 million budget gap in the authority’s rental-voucher assistance program. The housing authority had said it might have to cut assistance for up to 10,000 lower-income families in the program, known as Section 8, because of the budget gap. The authority did not estimate on Thursday how many families could still lose their vouchers if no additional financing came through. April 16, 2010
Foreclosures Rise as Banks Repossess More HomesMore people lost their homes to foreclosure during the first quarter of this year as banks worked through a backlog of troubled borrowers and repossessed more properties, according to data released Thursday by RealtyTrac. The number of homes repossessed, the final stage of the foreclosure process, reached 257,944 during the quarter. That is up 9 percent from the previous quarter and 35 percent from the first quarter of 2009, according to RealtyTrac, an online service that estimates that it tracks about 90 percent of the housing market. April 16, 2010
Law Bars Homeowner from Installing Solar Panels on PierMaryland is so eager for its residents to try solar power that it offers homeowners thousands of dollars in grants to mount photovoltaic panels on or around their homes to generate electricity from the sun. Just don’t try to put them on your boat pier. That’s what Robert Bruninga found out when he proposed putting PV panels on a wooden pier jutting out into Marley Creek in Glen Burnie. An engineer at the Naval Academy in Annapolis, Bruninga says he needs to use his pier because there are too many trees elsewhere on his property to get a steady dose of the sun’s energy-producing rays. April 16, 2010
Housing Starts Hit Highest Level Since Nov. 2008U.S. housing starts rose more than expected in March to their highest level since November 2008 and permits to build new homes scaled a 17- month high, according to a government report on Friday that offered hope the housing market recovery remained on course. The Commerce Department said housing starts rose 1.6 percent to a seasonally adjusted annual rate of 626,000 units. February’s housing starts were revised up to show a 1.1 percent increase, which was previously reported as a 5.9 percent drop. April 16, 2010
Wells Fargo Analysis: 50% Fail HAMP EligibilityWells Fargo has 523,336 borrowers either in trial or approved mortgage modifications as of March 31, more of them as part of the lender’s own foreclosure prevention efforts. Of those, 144,932 are part of the government’s Home Affordable Modification Program, HAMP, with active trial and completed modifications, also as of March 31. Wells Fargo, which services about 16 percent of U.S. mortgages, said it initiated or completed three modifications for every one foreclosure sale on owner-occupied properties from October 2009 through March 2010. April 16, 2010
Study: Bias Against Black Renters, Ashland, ORA study commissioned by the city shows a “shockingly high rate of discrimination” against blacks seeking to rent housing in Ashland. The Fair Housing Council of Oregon found that six of nine landlords, or two-thirds, expressed racial bias when showing a rental to a black tester. The study, completed in June, also found that three of seven testers with children and three of seven with disabilities, or about 43 percent in each category, received discriminatory treatment. The council completed 33 housing discrimination tests in all in spring 2009. “It’s unfortunate that, still in the day and age, this type of discrimination is commonplace, but it is — even in Ashland,” said Brandon Goldman, senior planner with the city. April 16, 2010
Former NAACP leader Benjamin L. Hooks dies at 85Benjamin L. Hooks, 85, a lawyer and Baptist minister who led lunch-counter sit-in demonstrations during the 1960s and was the longtime head of the NAACP as it struggled to find its way in the post-civil rights era, died April 15 at his home in Memphis. The cause of death was not reported. He successfully lobbied for the King holiday and several civil rights, fair housing and voting rights bills. “His legacy was really enforcing civil rights victories on corporate America,” said Benjamin Jealous, NAACP president, “saying to corporate leaders, ‘segregation is illegal but it still exists inside your company, and we have to find a way to work together to change that.’ “ April 16, 2010
Foreclosures Rise in Spite of Aid Program’s EffortsHome foreclosures are accelerating — and many more people are losing their homes — more than a year after the government launched a program to aid financially distressed borrowers. Foreclosure filings in March totaled 367,056, jumping nearly 19% from February and up almost 8% from March 2009, according to RealtyTrac. It was the highest monthly total since January 2005, when RealtyTrac began issuing its reports. April 15, 2010
U.S. Seeks Ideas on Fannie and Freddie?Got any ideas for how to remake the mortgage market? The Obama administration wants to hear them.The administration on Wednesday published a list of seven questions about how to remake the institutions that provide money for home loans. The idea is to get comments from banking and securities industry groups, academic experts and consumer organizations. The administration has not drafted any formal proposals to reform the housing finance system. Mortgage finance companies Fannie Mae and Freddie Mac nearly collapsed in September 2008. Propping them up has cost taxpayers about $126 billion so far. April 15, 2010
Homeowners Have Saved a Cumulative $3 Billion Under HAMP to DateThe U.S. Department of the Treasury and the Department of Housing and Urban Development today released March data for the Administration’s Home Affordable Modification Program (HAMP). As of the end of the month, more than 1.4 million homeowners received offers for trial modifications, and more than 1.1 million borrowers were receiving a median savings of $500 each month. Permanent modifications have been granted to more than 230,000 homeowners, and an additional 108,000 permanent modifications have been approved by servicers and are pending only borrower acceptance. Homeowners’ lower monthly mortgage payments under HAMP represent a cumulative savings of more than $3 billion. April 15, 2010
Program for Rural Homebuyers is Nearly BrokeA federal loan program that has helped hundreds of thousands of Americans buy homes in rural areas is about to run out of money, potentially crippling the real estate market in many small communities. Since last fall, the loans from the Department of Agriculture have fueled much of the real estate business in some parts of the country. Real estate agents are pleading with Congress to find a way to keep the money flowing until more funding becomes available later in the year. April 15, 2010
Report Shows Elderly Homelessness To Double Over Next 30 YearsA recent report released by the National Alliance to End Homelessness projects an increase in the number of elderly people experiencing homelessness in the decades to come. The Alliance predicts that the elderly homelessness population will increase by 33 percent by 2020 and more than double by 2050. The report reviews current federal housing and service programs targeted at the older homeless population. April 15, 2010
Will Tax Credit Help First-time Buyers Ignite Home Sales?This month, Jamie Watt and her fiancé, Ben Arnold, expect to own their first home, a three-story townhouse with a spacious deck for entertaining and a spanking-new kitchen with a stone countertop.As first-time home buyers, they’re part of a critical demographic shaping the spring housing market.Whether enough first-time buyers such as Watt and Arnold come forward in the next few months could undermine — or stabilize — the housing market’s already wobbly recovery. April 14, 2010
More Homeowners Keep Up with Their MortgageThe share of homeowners behind on their mortgages fell in the first quarter, the first drop in four years and a possible sign that the foreclosure crisis has peaked. The portion of mortgages that were delinquent 30 days or more fell to 6.57% in the first quarter from 6.60% in the last three months of 2009, according to Equifax and Moody’s Economy.com. That’s a drop of about 16,630 delinquent loans and, though modest, it is the first decline in the delinquency rate since early 2006. April 14, 2010
The Price for Building a Home in This Town: $300,000 Water MeterMarc Dwaileebe would like to build a house for his family on land he owns in this bucolic town just 20 miles north of San Francisco. But he cannot hook up to the water main that runs right past his property unless he has a water meter. And a water meter, in Bolinas, could cost more than $300,000. That is the minimum bid for a meter being auctioned off through Friday. The auction is the unlikely result of a water meter moratorium imposed by antidevelopment forces here in 1971. For most of the last 39 years, “the only way a water meter came free was when a house burnt down, or fell off a cliff,” said Barbara Rothwell, a longtime Bolinas resident. April 14, 2010
One Last Place to Get Fleeced on a MortgageSal Pane Jr.’s expert advice on distressed mortgages: Hire a specialist to negotiate a better deal with the lenders — someone like, well, Sal Pane Jr., the owner of two companies that provide precisely those kinds of services, the American Modification Agency and Amerimod Inc. “Oh yes,” said Sandra Catus, a client of Mr. Pane’s. “They didn’t stop selling.” At the time Mr. Pane appeared on CBS last March, Ms. Catus, a legal secretary who lived in St. Albans, Queens, had paid one of his companies $3,200 in return for a promise that it would get her out from under an adjustable mortgage that was sinking her. It didn’t. She was one in a flock of people who, as the recent subprime mortgage era was winding down, managed to find one last place to get themselves fleeced. April 14, 2010
Plan Would Require Homeless to Work to Qualify for Rent SubsidiesThe Bloomberg administration is planning to require more homeless families to get jobs in order to qualify for rent subsidies, city officials said Tuesday. For the last three years, the city had provided certain homeless families with vouchers good for one or two years of free or steeply discounted rent. Since the program began, more than 18,000 families, and some single adults, have received the so-called Advantage vouchers, more than 7,500 of them last year. April 14, 2010
New HUD Form Confuses Borrowers, LendersFor anyone buying a home this spring, beware: There could be some kinks with the paperwork. In January, the Department of Housing and Urban Development rolled out sweeping changes to the Good Faith Estimate, a key consumer protection document. The agency has given the real estate industry four months to change over to the new form, and the questions and complaints are widespread. “Borrowers are looking at this form and saying, ‘This doesn’t make any sense for us, why can’t we have something that’s more simple?’” said Pava Leyrer, president of Heritage National Mortgage in Grandville, Mich. April 14, 2010
U.S. Foreclosure Program Helps Few Borrowers, Watchdog SaysU.S. Treasury Department efforts to avert foreclosures are helping few troubled borrowers and sending mixed signals to lenders, said the chairwoman of a congressional panel overseeing the U.S. financial bailout. “Treasury is still fighting to get its foreclosure programs off the ground,” said Elizabeth Warren, head of the Congressional Oversight Panel on the Troubled Asset Relief Program. Warren spoke to reporters yesterday about the panel’s April report, its third on the Treasury’s foreclosure efforts. All have criticized the agency as being too slow to respond to the housing crisis. April 14, 2010
Impending Foreclosure Clash: Banks vs. BuildersThe predicted wave of commercial real estate foreclosures could harm the struggling economy in Florida even more than in other boom states. The specter of that $100 billion hit to Florida businesses has led to the inevitable jockeying during the last weeks of the state Legislature’s session among groups looking to gain advantage in surviving the latest round of economy-jolting foreclosures. Many of the office buildings, retail stores and other commercial properties built during the boom were done with the “personal” guarantee of the developer. That means that when the loans on those properties come due — and commercial property loans generally are only five to seven years in length — the bank can go after the personal wealth of the borrower even before the property. April 14, 2010
Banks Resist Plans to Reduce Mortgage BalancesIn a rebuff to the Obama administration, two big banks on Tuesday drew a line in the sand on cutting the mortgage balances of beleaguered homeowners, saying that the tool would be applied sparingly. The idea of reducing loan principals last month became a centerpiece of the administration’s efforts to help seven million households threatened with foreclosure. But an official at one of the banks, David Lowman of JPMorgan Chase, said principal reduction could reward households for consuming more than they could afford, might punish future homeowners by raising the cost of borrowing and in any case was simply unworkable. April 14, 2010
Density Worries for Proposed Senior HousingThe senior building is being proposed for a site right across from the park on Harrison where The Oak Leaf Lounge, Forest Park Foreign Car Repair and H&R Towing now sit. The developers are the 7400-7412 Harrison Street Properties LLC, which includes Tony Kaldis, Constantine Fourlas, and Tim Locopoulos, teaming with the non-profit group Heartland Housing, a part of the Chicago based non-profit Heartland Alliance. Heartland Housing has extensive experience in developing affordable multi-unit housing having developed about 1,600 units in the city of Chicago. The developers are currently re-examining their proposal and will try to address the concerns at a special meeting of the Plan Commission on April 20. April 14, 2010
Senate Finds Fraud in Washington Mutual Mortgage LendingSenate investigators say they found that the mortgage lending operations of Washington Mutual, the biggest U.S. bank ever to fail, were threaded through with fraud. And the bank’s own probes failed to stem the deceptive practices, the investigators say in a report on the 2008 failure of WaMu. The panel says the bank’s pay system rewarded loan officers for the volume and speed of the subprime mortgage loans they closed on. April 13, 2010
NYC: Before City’s Worst Fire in Years, History of NeglectThe building in Chinatown where an enormous blaze started late Sunday night had more than two dozen open violations for hazardous conditions, including missing smoke detectors, lead paint and other problems that signified a history of neglect, city records show. Late Monday night, firefighters recovered the body of a missing 87-year-old man from the top floor of one of the three buildings where the fire had spread. Earlier, they had been unable to get into the building to search because of the danger of a collapse, but at 8:20 p.m., they found the body of a man identified by his relatives as Sing Ho. April 13, 2010
New York City Takes Over Governors IslandAfter more than a year of negotiations, New York City has reached a deal to take control of Governors Island from the state, moving a prime 172-acre piece of waterfront real estate into the hands of a land-starved city and closer to an ambitious redevelopment, city and state officials announced on Sunday. The agreement would allow the city to convert much of the former military outpost into a public park. The city also plans to add a high school, some commercial development and potentially a satellite campus for New York University on Governors Island, which sits a half mile off the southern tip of Manhattan. April 13, 2010
Governors Island Vision Adds Hills and Hammocks April 13, 2010
Europe Finds Clean Energy in Trash, but U.S. LagsThe lawyers and engineers who dwell in an elegant enclave here are at peace with the hulking neighbor just over the back fence: a vast energy plant that burns thousands of tons of household garbage and industrial waste, round the clock. Far cleaner than conventional incinerators, this new type of plant converts local trash into heat and electricity. Dozens of filters catch pollutants, from mercury to dioxin, that would have emerged from its smokestack only a decade ago. In that time, such plants have become both the mainstay of garbage disposal and a crucial fuel source across Denmark, from wealthy exurbs like Horsholm to Copenhagen’s downtown area. April 13, 2010
Real Estate Troubles Causing Jump in Rental ScamsTroubles in the real estate market are being blamed for helping to fuel what was once a rare type of scam - swindling hopeful tenants out of money by pretending to be a landlord, according to officials. With a dramatic increase in the number of vacant and foreclosed homes, the number of prospective tenants swindled by scammers posing as landlords has been rising in the past few years, officials said. Because the victims of what’s being termed “landlord impersonation” have made their deposits in cash, catching the phony landlords is difficult, according to police. Some victims are also reluctant to report they’ve been duped. April 12, 2010
Renting Isn’t Reckless if You’re Not Ready for HomeownershipThroughout my childhood, my grandmother Big Mama extolled the virtues of owning a home. Even though I was in my early 20s, I was ready for ownership. I had no debt. I could easily afford the monthly mortgage payment, which was well below 36 percent of my net monthly pay. My grandmother pushed homeownership, but not as an almighty way to increase my net worth. She taught me to view my home as a place to live and a way to stabilize my monthly housing expense. If your home appreciated in value, that was an added bonus. April 12, 2010
Edison Blankets Warehouse Roofs with Solar PanelsThe view from a warehouse roof here is consistent. In every direction, there are blocks and blocks of warehouse roofs baking in the Southern California sun. Rather than letting them sit bare, a California utility hopes to blanket roofs like these with solar panels to produce enough electricity to power 162,000 homes. Southern California Edison has installed solar on two warehouse roofs and is working on another in the Los Angeles region. The utility expects to do 100 to 125 more, totaling about 1.5 square miles of roof space in the next five years. April 12, 2010
Ex-Fannie Mae Execs Blame Wall Street Competition for Mortgage FiascoTwo former Fannie Mae executives said Friday that competitive pressures, combined with the political goal of increasing homeownership, were to blame for the company’s decision to back riskier mortgages that fueled the housing bubble. Daniel Mudd, Fannie Mae’s former chief executive, and Robert Levin, the company’s former chief business officer, testified before a panel examining the roots of the financial crisis. Both executives left Fannie Mae after it was seized by regulators in fall 2008 April 12, 2010
Don’t Bet the Farm on the Housing RecoveryMuch hope has been pinned on the recovery in home prices that began about a year ago. A long-lasting housing recovery might provide a balm to households, mortgage lenders and the entire United States economy. But will the recovery be sustained? Alas, the evidence is equivocal at best.The most obvious reason for hope is that, unlike stock prices, home prices tend to show a great deal of momentum. Correcting for seasonal effects, home prices as measured by the S.&P./Case-Shiller 10-City Home Price Index increased each month from June 1995 to April 2006, then decreased almost every month to May 2009. Since then, they have risen through January, the latest month for which data is available. April 12, 2010
Judge Awards Families $2.6M Over Tainted Chinese DrywallA New Orleans federal judge on Thursday awarded seven Virginia families $2.6 million in damages for homes ruined by sulfur-emitting drywall made in China, a decision that could affect how lawsuits by thousands of other homeowners are settled. It remains to be seen how the plaintiffs can collect from Chinese companies that do not have to respond to U.S courts, although some have talked about getting orders to seize U.S.-bound ships and cargoes from the drywall companies. Thousands of homeowners, mostly in Florida, Virginia, Mississippi, Alabama and Louisiana, have reported problems with the drywall, which was imported in large quantities during the housing boom and after a string of Gulf Coast hurricanes. April 9, 2010
Bank Takes Back Geppi Mansion at AuctionThe Baltimore County mansion known as Cliffeholme, built in the mid-19th century and owned by businessman Stephen A. Geppi, was bought back at a foreclosure sale Thursday by the mortgage lender. A trustee for lender Bank of America bid $2.8 million for the nearly 14,000-square-foot residence on 9 acres in Green Spring Valley. Geppi and his wife, Melinda, who bought the property in 2004 for $4.8 million, defaulted on the loan in February 2009 and owed $3.2 million on the mortgage, according to court documents. The Geppis had put the home on the market in January 2008 after moving to another home. April 9, 2010
The worst-selling Housing Markets in AmericaLast year in Milwaukee, unsold homes clogged the market — 42 percent more at the end of 2009 than the same time the previous year. During the housing boom, developers built copious luxury condominiums to meet rising demand, often far from the city center. Now that the market has contracted, those gleaming but remote designer apartments are harder than ever to sell, affecting the larger housing market. April 9, 2010
After Katrina, Staying Afloat With MusicDavid Simon’s new HBO series is called “Treme” and the title alone suggests the difficulty of the subject. Treme doesn’t rhyme with ream; it’s pronounced truh-MAY, and it’s the name of an old New Orleans neighborhood famous for music — and, in some parts, for crime. It’s the kind of area sought out by intrepid travelers eager to bypass the tourist traps on Bourbon Street, the kind of place that guidebooks label “authentic.” April 9, 2010
A Legacy of Katrina: Green HomesIn this city on the mend, hundreds of state-of-the-art sustainable, energy-efficient homes are being built in lower-income neighborhoods, a trend that’s outpacing most of the rest of the country. More than 500 homes are being built with features such as solar panels, rain-catching cisterns and eco-friendly materials in neighborhoods that received the brunt of the damage from the 2005 floods following Hurricane Katrina. Hundreds of other homes are being given green upgrades. April 8, 2010
EPA Lead Rule Will Cover More Than Half of U.S. HomesMore than half of U.S. homes could soon be affected by a little-known federal rule to reduce lead exposure. On April 22, the Environmental Protection Agency will begin requiring that contractors who work on pre-1978 homes be certified in lead-safe practices or face daily fines of up to $37,500. The EPA is rolling out ads later this month to explain the rule and lead’s health hazards. The rule applies to all homes built before lead paint was banned in 1978 unless contractors can show, using an EPA-approved test, that the job area doesn’t contain lead. Of 129 million U.S. housing units, 76.5 million were built before 1980, according to the Census Bureau. April 8, 2010
Homebuyers Scramble as Mortgage Rates JumpThe era of record-low mortgage rates may be over. The average rate on a 30-year loan has jumped from about 5% to more than 5.3% in just the past week. As mortgages get more expensive, more would-be homeowners are priced out of the market — a threat to the fragile recovery in the housing market. And if you wanted to refinance at a super-low rate, you may have missed your chance. Rates under 4% are still available, but only for loans that reset in five or seven years, probably to higher rates. April 8, 2010
Suspense Builds Over Census for New OrleansThis year’s census will be revealing and important in every city, of course, according to the crude math that each citizen equals a certain amount of government money and political clout. But the stakes of the census here, as in other hurricane-battered cities and towns from Moss Point, Miss., to Galveston, Tex., are more profound. The final numbers, no matter how much people here may challenge them — and challenges are almost a certainty — will go far in determining how New Orleans thinks about itself, whether it is continuing to mount a steady comeback or whether it has sputtered and stalled, how far it has fallen in the ranks of the country’s cities, and how quickly it is likely to rise again. April 8, 2010
Thousands in City May Lose Rental VouchersBecause of a $45 million deficit, the New York City Housing Authority may have to revoke rental-assistance vouchers from up to 10,500 low-income tenants, an unprecedented move that could cause families to lose their apartments. The federal government gave the housing authority less money for the voucher program, known as Section 8, than it expected. But the authority made matters worse by continuing to issue new vouchers until December, eight months after the government warned it to stop doing so because the program was likely to run a deficit. April 7, 2010
HUD CHARGES SEATTLE-AREA APARTMENT COMPLEX WITH HOUSING DISCRIMINATIONThe U.S. Department of Housing and Urban Development today announced that it has charged a King County, Washington, landlord with violating the Fair Housing Act. HUD contends that Summerhill Place LLC, the owners of Summerhill Apartments in Renton, WA, its management company GRAN Inc., and on-site manager Rita Lovejoy, engaged in a pattern of adverse treatment of African Americans, Hispanics, Asian Americans, and families with children, in violation of the Fair Housing Act. The Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, familial status, and disability. April 7, 2010
NEW FHA RULES STRENGTHEN RISK MANAGEMENTThe Federal Housing Administration (FHA) today announced new regulations to further reduce and better manage counterparty risks to its insurance funds as it continues to play a critical role in today’s housing market. FHA will issue regulations to increase the net worth requirements of FHA-approved lenders, strengthen lender approval criteria, and make lenders liable for the oversight of mortgage brokers. The final rule permits FHA to more effectively focus its resources on lenders that pose the greatest potential threat to its insurance funds and to ensure that lenders possess the resources appropriate for the financial services they deliver. FHA solicited public comments on this new regulation and considered those comments in the development of the final rule. April 6, 2010
Short-sale Program Aims to Help ‘Underwater’ HomeownersThe government launched an effort on Monday to speed up the time-consuming, often-frustrating process of selling your home if you owe more than it’s worth. The Obama administration will give $3,000 for moving expenses to homeowners who complete such a sale — known as a short sale — or agree to turn over the deed of the property to the lender. It’s designed for homeowners who are in financial trouble but don’t qualify for the administration’s $75 billion mortgage modification program. April 6, 2010
Faith in Homeownership Drops, Fannie Mae Poll ShowsDespite turbulence in the housing market during the past three years, most people still think homeownership is important and preferable to renting, but many remain skeptical that home prices will rebound soon, according to a survey by Fannie Mae to be released Tuesday. The survey is Fannie Mae’s first attempt to gauge how the foreclosure crisis has affected public attitudes about homeownership. The crisis was unprecedented in many aspects, including the widespread decline in home values and the prevalence of risky subprime loans, company officials said. April 6, 2010
Measure Hastens Adoption of SolarMaryland is moving to require utility companies to accelerate their use of solar power - an idea rankling some lawmakers who are concerned that an impractical quota would needlessly raise the price consumers pay for electricity. A plan working through the General Assembly would push energy suppliers such as Baltimore Gas and Electric to rely on a higher percentage of solar power in the next few years than mandated by current law. The bill was approved Friday by the Senate and is moving through the House of Delegates. April 6, 2010
Dallas: Metroplex Families Avoiding Homelessness with Federal Stimulus MoneyDonnell McDavid lost his job at a temp service in August 2008. The 37-year-old is blunt: “I was a deadbeat dad on drugs. Because of the strong addiction I had to drugs, I didn’t even want to go to work.” McDavid has since turned his life around, but by the time he graduated from a drug rehabilitation program, he was facing homelessness. That’s when friends at Victory Temple of Praise Church suggested that he call Catholic Charities Diocese of Fort Worth to seek assistance. Federal stimulus money now keeps McDavid and his family under a roof while he tries to find work. McDavid’s is among 432 area households assisted through the Homelessness Prevention and Rapid Re-Housing Program. The stimulus dollars, aimed at preventing families from becoming or staying homeless, are being tracked by the Tarrant County Homeless Coalition. April 6, 2010
Homes with Chinese Drywall Should be Gutted, Feds SayThousands of U.S. homes tainted by Chinese drywall should be completely gutted, according to guidelines released Friday by the Consumer Product Safety Commission. The guidelines recommend that electrical wiring, outlets, circuit breakers, fire alarm systems, carbon monoxide alarms, fire sprinklers, gas pipes and drywall need to be removed. About 3,000 homeowners, mostly in Florida, Virginia, Mississippi, Alabama and Louisiana, have reported problems with the Chinese-made drywall, which was imported in large quantities during the housing boom and after a string of Gulf Coast hurricanes. April 5, 2010
HUD AND CPSC ISSUE GUIDANCE ON REPAIRING HOMES WITH PROBLEM DRYWALLThe U.S. Department of Housing and Urban Development (HUD) and the U.S. Consumer Product Safety Commission (CPSC) today issued interim remediation guidance to help homeowners struggling to rid their properties of problem drywall linked to corrosion of metal in their homes such as electrical components. Earlier this year, HUD and CPSC issued a protocol to help identify problem drywall in the home. Today’s interim remediation guidance is being released in recognition that many homeowners want to begin remediating their homes and offers a next step to homeowners whose homes have been determined to have problem drywall. April 5, 2010
As Demolitions Begin, Community Activists See Detroit Urban Renewal Plan as Land-GrabDemocracy Now! broadcasts from Detroit, where demolition crews have begun tearing town 3,000 buildings that the city has deemed dangerous as part of an estimated 10,000 buildings set to be demolished over the next four years. City officials claim the demolitions are taking place in abandoned neighborhoods and that they will be replaced with farmland. While the Mayor’s urban renewal plan has high-level backing, many have condemned it as a form of land-grabbing. April 5, 2010
HUD CELEBRATES APRIL AS FAIR HOUSING MONTHA Massachusetts family is billed by the landlord when children play in an outdoor common area and are fined when they file a fair housing complaint. An Alabama landlord is charged with turning off the water and evicting a white family because one tenant has an African-American boyfriend. An Illinois university student who is vision impaired and epileptic is refused dormitory housing because she has a trained service dog. HUD and private groups bring these and other discrimination cases under the Fair Housing Act, 42 years after it became law in April 1968. In honor of Fair Housing Month, celebrated each April, HUD has declared 2010 a “Time to Act!” April 5, 2010
FHA TAKES ACTION AGAINST RSA FINANCIAL and 1st ALLIANCE MORTGAGEThe Federal Housing Administration (FHA) today announced that it is permanently withdrawing its approval of Atlanta-based RSA Financial, Inc. and 1st Alliance Mortgage LLC of Houston, Texas. The actions announced today prevent these lenders from originating and underwriting new FHA-insured mortgages or from participating in the FHA single family insurance program. The U.S. Department of Housing and Urban Development’s Mortgagee Review Board (MRB) also voted to impose a $15,000 civil penalty against RSA and seek $267,900 from 1st Alliance. April 5, 2010
Problem of Vacant Houses Resists Easy SolutionOnly three years before, the house had sold for $470,000. But in just over an hour, Mr. Martin reduced it to a compact pile of rubble to be hauled away. In many respects, vacant buildings like the one on Washtenaw Avenue have long been fixtures of the urban landscape. But the current collapse of the nation’s housing industry has made abandoned housing a far more pervasive problem in Chicago and other cities. Officially, the City of Chicago identifies 5,800 structures on its registry of vacant buildings, a listing where banks and property owners can avoid fines by registering vacant houses and committing to routine maintenance. April 5, 2010
Black Farmers Still Waiting for Settlement CashNearly two months since the administration announced a $1.2 billion agreement to settle decades-old racial discrimination claims against the Department of Agriculture, the nation’s black farmers are still looking for the money. And the checks are not in the mail. A March 31 deadline in the federal court agreement passed without Congress providing the money that is to be paid to thousands of farmers. The missed deadline does not end the settlement but does allow the farmers to reopen the class action lawsuit. April 2, 2010
HUD CELEBRATES APRIL AS FAIR HOUSING MONTHn honor of Fair Housing Month, celebrated each April, HUD has declared 2010 a “Time to Act!” The Fair Housing Act makes it illegal to discriminate in housing transactions based on race, color, national origin, religion, gender, disability, or familial status. Each year HUD and communities and organizations across the country recognize Fair Housing Month by hosting an array of activities that enhance the public’s awareness of their fair housing rights and highlight the national commitment to end housing discrimination. The theme for this year’s activities, “Fair Housing in 2010: Time to Act,” reflects the urgent need to ensure fair housing. April 2, 2010
FHA TAKES ACTION AGAINST RSA FINANCIAL and 1st ALLIANCE MORTGAGEThe Federal Housing Administration (FHA) today announced that it is permanently withdrawing its approval of Atlanta-based RSA Financial, Inc. and 1st Alliance Mortgage LLC of Houston, Texas. The actions announced today prevent these lenders from originating and underwriting new FHA-insured mortgages or from participating in the FHA single family insurance program. The U.S. Department of Housing and Urban Development’s Mortgagee Review Board (MRB) also voted to impose a $15,000 civil penalty against RSA and seek $267,900 from 1st Alliance. April 2, 2010
Fed Ends Its Purchasing of Mortgage SecuritiesThe Federal Reserve’s single largest intervention to prop up the American economy, its $1.25 trillion program to buy mortgage-backed securities, came to a long-anticipated end on Wednesday. The program has been credited with holding mortgage interest rates at near-record lows and slowing the nationwide decline in home prices that threatened to send the economy into an extended slump.When the central bank announced the program two days before Thanksgiving 2008, the spread, or difference, between the rates for a 30-year fixed-rate mortgage and a 10-year Treasury note exceeded 2.5 percentage points, or 250 basis points, nearly twice the typical spread. April 1, 2010
After Fight, a Brooklyn Brownstone’s Costly RescueWhen he worked at one of New York’s most respected preservation firms, Timothy Lynch would have spared no effort to save brownstones like the two that stood before him on a January morning. They were landmarks on one of the prettiest streets in Brooklyn. But contractors renovating one of the three-story buildings had accidentally knocked down a load-bearing wall, threatening both with collapse. Mr. Lynch, an engineer who had once helped restore well-known buildings like the Park Slope Armory and the Brooklyn Academy of Music, now worked for the city’s Department of Buildings; his priorities were different. April 1, 2010
The Curious Case of a Housing Complex’s Puzzling NameThere was a time when public-housing buildings were named after the greats. Jacob Riis. Walt Whitman. Eleanor Roosevelt. And then there was everything that came after all that, which goes some distance toward explaining how a public-housing complex in the Bronx acquired the unlikely name Morrisania Air Rights. The development was dragged into the public spotlight last week, after a shootout with the police left an officer injured and the gunman dead. April 1, 2010
New England Flooding Drowns Homes and DreamsFlooding on a scale rarely seen in New England forced hundreds of people from their homes Wednesday, overwhelmed sewage systems to the point that families were asked to stop flushing toilets, and washed out bridges and highways from Maine to Connecticut. Hardest hit by three days of record-breaking rain was Rhode Island, where the worst flooding in 200 years could persist for several more days and permanently close businesses already struggling in the weak economy. April 1, 2010
‘Act of Congress’ to Sell HouseLenders often say they don’t want to repossess houses. So you might expect that a borrower selling to avoid foreclosure — and not via short sale — would delight them. But Bonnie Jordan, exactly that sort of borrower, says her lender endangered the sale of her Edgewater house by not promptly providing a key number: how much she owed. “I’ve never seen anything quite like it before,” said Diane Olsen, Jordan’s real estate agent. “They just gave her the worst runaround.” April 1, 2010
TX: Luxury Developer Faces Foreclosure on Lots in 3 Colleyville SubdivisionsReal estate partnerships controlled by David S. Bagwell, a developer known for creating luxury subdivisions decorated with architecturally impressive homes, face foreclosure on his remaining lots in three Colleyville neighborhoods. Last week, Bagwell said he recently learned that the mortgage notes he originally secured through Texas State Bank had been put into default and then acquired by Toll Brothers, a Pennsylvania-based homebuilder now operating in the Dallas-Fort Worth market. April 1, 2010
40 Years After the Fair Housing Act, Two Chicagoans Remember Their “Changing Neighborhoods”In recognition of the work that has yet to be done, and in commemoration of National Fair Housing Month in April, this month’s videos feature two of Chicago’s most engaging storytellers talking about growing up in changing neighborhoods. Both women—one Irish-American, one African-American—remember growing up on the south side in the 1960s. April 1, 2010
Home Market Stabilizes, with Prices Only Slightly LowerHome prices showed little change in January after a welcome rebound last year, and economists say a new wave of foreclosures is likely to yield a lackluster market the rest of the year. Tuesday’s housing news, along with a report that consumer confidence bounced back smartly in March but remains mired at low levels, underscored the sometimes halting nature of the recovery. For the fourth consecutive month, housing prices fell slightly, dipping 0.4% from December on a non-seasonally adjusted basis, according to the Standard & Poor’s/Case-Shiller home price index, which tracks 20 large cities. Values dropped in 18 of 20 metro areas, with only Los Angeles and San Diego posting modest gains. March 31, 2010
A Plan to Spur Growth Away From Haiti’s CapitalEven as outsiders feel sympathy for Haiti’s suffering, they tend to look upon it as a country beyond saving. Now there is a plan to do just that, and it is surprisingly convincing. The lucid, far-reaching reconstruction guidelines that the Haitian government is scheduled to unveil on Wednesday at a donors’ conference at the United Nations should give all who care about Haiti’s future cause for hope.Prepared by a group of urban planners from the Haitian government agency responsible for the country’s development, the plan is built around a bold central idea: to redistribute large parts of the population of Port-au-Prince to smaller Haitian cities, many of them at a safe distance from areas most vulnerable to natural disaster. March 31, 2010
Real Estate’s Crash Recasts a Scorned Landlord as a Potential SaviorTenant advocates and many of his own renters regard Laurence Gluck as the scourge of subsidized middle-class housing. He has bought more than a dozen New York City complexes since 2004 and removed rent ceilings from thousands of apartments. He borrowed $250 million to buy and renovate the storied Riverton Houses in Harlem, pocketed tens of millions in profit and then lost the buildings in foreclosure earlier this month, leaving them an early casualty of the speculative real estate boom.But city and federal housing officials looking to rescue a troubled development in Crown Heights, Brooklyn, have begun viewing Mr. Gluck in a different light: as its possible savior. March 31, 2010
DemocratsWwant GOP Action on Foreclosures in OhioWith Ohio set to get $172million in federal help to battle an ever-worsening foreclosure problem, state House Democrats and housing advocates say it’s also time for Republicans to stop sitting on foreclosure-prevention bills. Ten months ago, the Democratic-controlled House passed a bill that would impose a six-month moratorium on foreclosure filings in Ohio, regulate loan servicers and create a $750 foreclosure filing fee to fund foreclosure counseling, education and rescue loans. March 31, 2010
Canadians Struggle with High Housing Costs, Report FindsSome 67 per cent of Metro Vancouver households struggle with the high cost of housing, the Conference Board of Canada reported Tuesday, a day that saw more banks edge key mortgage rates up, a move destined to push housing costs even higher. The Conference Board report, titled Building From the Ground Up: Enhancing Affordable Housing in Canada, defined housing as unaffordable if households paid more than 30 per cent of their pre-tax income to keep a roof over their heads.On that basis, the board, relying on Census and Canada Mortgage and Housing Corp. data, estimated that nationally, a lack of affordable housing supply left one in five households — some three million in total — spending too much on housing. March 31, 2010
FL: Broward Creates Foreclosure Mediation ProgramA new program is in the works to help Broward County homeowners save their homes from foreclosure. Later this summer, a mediation program will go into effect, aimed at bringing struggling homeowners and banks together as soon as a foreclosure action is filed. The program is the result of a study by the Florida Supreme Court seeking ways to reduce the crushing backlog of foreclosure cases in the courts and find solutions to the foreclosure crisis. March 31, 2010
Homeowners Balk as Property Tax Bills Stay HighFrom Florida beachfronts to Nevada deserts, fed-up homeowners are challenging property tax bills that have stayed high despite the housing crisis. Retiree Carol Schneider, 63, of Ferguson, Mo., never saw herself as a tax rebel: “In the past, I just paid my taxes whether I agreed with them or not,” she says. “But the last tax bill increased so much … I decided to fight it.” She prevailed, persuading St. Louis County to cut her tax bill in half. Angry homeowners like Schneider and Hyland say their tax assessments and tax bills haven’t come down as fast as real estate prices in the worst housing collapse since the 1930s. March 30, 2010
Gov’t to Give $600M in Housing Aid to 5 StatesThe Obama administration unveiled Monday $600 million in financial aid for five more states with high unemployment that have been slammed by the housing bust. The funding is for North Carolina, Ohio, Oregon, South Carolina and Rhode Island. t comes on top of the $1.5 billion in funding announced last month by the Obama administration for Arizona, California, Florida, Michigan and Nevada, which all have deeply depressed home prices. March 30, 2010
Times Square’s Homeless Holdout, Not BudgingAs long as there have been homeless people sleeping in Times Square, there have been social workers and city officials trying to persuade them to leave. In the past, the homeless were offered a free ride to one of the city’s warehouselike shelters. These days, workers for nonprofit groups help people move into apartments, keeping track as the number of the chronically homeless in Times Square goes down.According to their records, by 2005, there were only 55. Last summer, it was down to 7. Now there is one. March 30, 2010
A Lawyer Rejoins a Cause That First Gripped Her 70 Years AgoFor the past two decades, Ms. Siegel hadn’t practiced much law, focusing instead on teaching and traveling. She picked it up again in earnest in 2008, through a foreclosure project at the City Bar Justice Center. The news of so many losing their homes was pressing enough that Ms. Siegel found a compelling reason to return to the cause that first captured her intellect as an undergraduate at Barnard in the late 1930s. “My interest was always to work to help people get decent housing they could afford,” Ms. Siegel said. “That’s what inspired the New Deal programs for public housing. And I guess I never got over it, that’s all.” March 30, 2010
Spurt of Home Buying as End of Tax Credit LoomsReal estate agents say buyers and sellers are hurrying to take advantage of the tax credit, which is worth up to $8,000 for home buyers. But the last-minute rush is also prompting some foreboding about what will happen to the market on April 30 when the credit ends — and whether it is too risky to let it end at all. James M. Poterba, an economist at the Massachusetts Institute of Technology, calls this “the exit strategy problem.” March 30, 2010
Walking Away from Mortgages Harder to Do in MarylandIndeed, in Maryland and the majority of states, walking away is no guarantee that mortgage debt won’t come back to haunt you. These are so-called recourse states, where a lender can pursue you for any shortfall after it sells the house. So if you walk away from a $350,000 mortgage and the lender turns around and sells the house for $250,000, you can still be on the hook for $100,000. March 30, 2010
Survey Finds Racial Disparities Under Anti-Foreclosure ProgramBlack homeowners are roughly 50 percent less likely than whites to receive help under the largest of the administration’s anti-foreclosure programs, according to a new survey of qualified families. The findings have raised questions on Capitol Hill about the fairness of the program, led housing advocates to reiterate calls for a more aggressive foreclosure prevention initiative, and put the White House on the defensive just as it steps up its multi-pronged strategy to stabilize the troubled housing market. March 30, 2010
HOUSING PROGRAM ENHANCEMENTS OFFER ADDITIONAL OPTIONS FOR STRUGGLING HOMEOWNERSFriday, as part of its ongoing commitment to continuously improve housing relief efforts, the Administration announced adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) programs. These program adjustments will better assist responsible homeowners who have been affected by the economic crisis through no fault of their own. The program modifications will expand flexibility for mortgage servicers and originators to assist more unemployed homeowners and to help more people who owe more on their mortgage than their home is worth because their local markets saw large declines in home values. March 29, 2010
HUD PROGRAM BRINGS SENIORS BACK HOME TO NEW ORLEANSThanks to a little-known federal program, 46 low-income seniors who were displaced by Hurricane Katrina received a grand welcome home celebration today in New Orleans at the Terraces on Tulane senior housing community that will ultimately house 200 families. Carol Galante, U.S. Housing and Urban Development Deputy Assistant Secretary for the Office of Multifamily Housing, joined Charles W. Gould, Volunteers of America (VOA) National President and Jim LeBlanc, CEO of VOA’s Greater New Orleans area office for the grand opening of the new senior housing community that replaced Forest Towers East that was severely damaged by Hurricane Katrina. March 29, 2010
Cities Slap Fees on Storm RunoffNew environmental regulations are prompting cities to impose fees on property owners for the cost of managing storm water runoff, the leading cause of water pollution in most of the nation. The Environmental Protection Agency (EPA) has started issuing a series of limits on storm water pollution that will require local governments to spend large amounts of money on water quality and soon start slowly reshaping America’s roads, housing developments and even the traditional lawn. The EPA for the first time is placing specific limits on how much storm water pollution can flow into the nation’s streams, rivers, lakes and bays. Federal courts have ruled that the Clean Water Act requires more stringent regulations. March 29, 2010
Portland’s Sewers Right as RainThe most surprising tourist attraction in Portland, Ore., is its storm sewer system. Eco-friendly tourists flock to the city to understand how Portland’s innovative system of curbs, gutters, roofs and rain gardens sharply cuts water pollution. So popular is the “Green Streets” program that the city publishes a map on its website directing tourists to the most exciting storm sewer sites. March 29, 2010
Expanded Mortgage Aid Should Cut ForeclosuresThe Obama administration’s revamped mortgage program may help more borrowers keep their homes, but economists say it could also delay foreclosures that can’t be prevented. The program requires lenders to reduce mortgage payments for three to six months for unemployed homeowners. It also encourages mortgage servicers to consider reducing principal for borrowers who stay current on their loans. In addition, some homeowners who owe more than their homes are worth may be able to refinance into loans backed by the Federal Housing Administration. March 29, 2010
In New York, Breaking a Law on RoommatesMr. Moua lives with five roommates. And in New York, home to some of the nation’s highest rents and more than eight million people, many of them single, it is illegal for more than three unrelated people to live in an apartment or a house. The law, for decades part of the city’s Housing Maintenance Code, is little known, widely broken and infrequently enforced. Three citations have been issued since July, according to the Department of Housing Preservation and Development. When the law is enforced, it is usually because of a complaint from a neighbor or because inspectors spotted a violation while responding to a maintenance problem. The violation is rarely written up unless it is accompanied by a host of others. Rarer still are the tenants who call up the city to turn in their landlord. March 29, 2010
Upper West Side Church Offers Homeless a Home, and MoreCrystal Chatwood and Eugene Thomas had hitchhiked from Georgia to Florida in search of work, and finding none, had taken a ride north to New York with another couple. The couple dropped them off in Central Park, promising to return in a few hours. That was last summer. Mr. Thomas, who said he had left his last $87 with the vanished couple, and Ms. Chatwood slept on a park bench that night. Rousted by the police, they moved to Riverside Park and then took refuge on the steps of the Church of St. Paul and St. Andrew, a United Methodist congregation on West 86th Street at West End Avenue. March 29, 2010
Resolving housing problems outside court can save time and moneyQ: I was about to go to closing last week and learned at the last minute that the seller decided not to complete the transaction. I am trying to determine the reason for this, but I am concerned about the legal fees that I will have to pay a lawyer. If I decide to file suit against the seller, does she have to reimburse me for legal fees? March 29, 2010
Anti-fraud Help for Home Buyers, Refinancing OwnersIf you’ve bought a house or refinanced a mortgage, you signed a lot of paperwork. Did you understand every word? (Did you even read it?) Civil Justice, a Baltimore nonprofit that offers legal help to people on real estate matters, has found the answer is a resounding no. Even among the well educated and high income. Now it has a grant from the Governor’s Office of Crime Control & Prevention to try to change that. The new Maryland Mortgage Fraud Prevention Project will match eligible buyers and refinancing homeowners with pro bono attorneys, who will look over documents, explain them and help folks figure out whether it’s actually a good idea to sign them. March 29, 2010
Foreign Buyers Return to Big Apple Real EstateSigns are that some overseas buyers are drifting back into the New York real estate market, betting a decline in prices may be about to turn. The dollar’s recent rally, rather than putting off foreign buyers, is encouraging them to jump into the market before it rallies further and drives up prices, insiders say.“People are thinking it might run away from them because there are these predictions the dollar will even go further,” said Richard Martin, specialist at DE Capital Mortgage. “We are March 29, 2010
Neighbors Step Up for Widow, 100, Facing Foreclosure, Tax, Code IssuesThe Monee Police Department is looking into the case of Agnes Albinger, the 100-year-old widow who raised 40 foster kids by herself on her Monee farm. Last week, the SouthtownStar wrote about Albinger’s desire to stay in her house despite a triple threat of foreclosure, delinquent taxes and myriad building code violations. Friday, police announced they have opened an investigation into whether any “criminal wrongdoing” was committed by those in charge of watching over her care and finances. “If there is any, we are going to pursue it,” said Monee Deputy Police Chief John Cipkar. “Anything we can do, we will expedite it.” March 29, 2010
Don’t Foreclose! Do A Short SaleShort sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals. “Banks have ramped up short sale approvals,” said Duane Legate of House Buyer Network, which connects short sellers with buyers. “They’re hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales.” March 29, 2010
Mortgage-banking Veteran Bott Leads FHA Foreclosure-prevention EffortVicki Bott hastily uprooted her husband, their three children, two dogs and a motor home from Austin to join the Federal Housing Administration six months ago and helped unveil the Obama administration’s plan to revamp its faltering foreclosure-prevention efforts last week. As head of FHA’s single-family housing programs, Bott is charged with rolling out a key part of the administration’s initiative by putting in place policies that will enable lenders to refinance for some homeowners. A similar FHA program launched by the previous administration flopped, and the spotlight is now on the agency’s new plan. March 29, 2010
New Apartments Help Some Struggling Residents Turn the CornerAmeenah Joiner moved from Chicago to escape from the domestic violence that had created turmoil in her life. After spending time in a women’s shelter, she moved into the transitional living housing program at N. 39th and W. Lisbon Ave. run by United Methodist Children’s Services. But now she and her two young children have moved next door into a new, three-bedroom home at the Washington Park Apartments. Joiner beams, remembering the precise time and date of the big move. March 29, 2010
Mortgage Aid Plan May Lower Monthly Payments for SomeThe Obama administration today is expected to announce major changes to its program for financially troubled homeowners, including a mandate that lenders temporarily reduce mortgage payments for some borrowers who have lost their jobs. Under the plan, lenders would grant three months forbearance to homeowners who are out of work, according to two administration officials. They declined to be identified because the program has not been announced. March 26, 2010
Households Facing Foreclosure Rose in 4th QuarterThe ranks of those facing foreclosure swelled by a quarter-million households in the fourth quarter, new government data shows. Households that are at least 90 days delinquent on their mortgage payment now number at least 1.6 million, according to a report Thursday issued by the Office of the Comptroller of the Currency and the Office of Thrift Supervision. Though more people are in worse trouble, the good news is that fewer households are entering delinquency. The number of people who were only one payment behind actually dropped in the quarter by 16,000. March 26, 2010
Audit Faults ‘Honor System’ for Aid to City’s HomelessThe Bloomberg administration has done a poor job of monitoring nonprofit agencies that provide services to the homeless, doling out more than $152 million in “handshake deals” in 2008 to providers that did not have contracts, according to an audit released on Thursday by John C. Liu, the city comptroller. The lack of contracts makes it nearly impossible, the report said, to adequately assess how providers are spending the city’s money. Besides poor financial control, the audit also said the city failed to determine if providers were meeting their goals for moving the homeless into permanent housing. March 26, 2010
NYC: As City Squeezes in Housing, Some Perks Are Squeezed OutA small asphalt lot fills a nondescript corner of Chelsea, visually bland, wrapped in iron fencing and carpeted with a couple dozen cars. The only thing remarkable about it is that it exists. The lot provides cheap parking for tenants in the adjoining public housing development, the Elliott-Chelsea Houses, an unlikely perk in a neighborhood synonymous with the trappings and traps of success. But the lot’s valiant fight against the physics of real estate and government finance is about to come to an end. The city Housing Authority is selling it to a developer for $4 million. March 26, 2010
Portable Real Estate Listings — but With a DifferenceOpen the mobile phone application offered by a French real estate agency and point your phone at a building along the Champs-Élysées or some other street in Paris. Within seconds, you will see the property’s value per square meter, superimposed over a live image of the building streamed through the phone’s camera. Speed and convenience delivered with the aim of a smartphone. Could this be the new frontier of on-demand property search? It depends whom you ask. The application, engineered by Layar, a 10-month-old company based in Amsterdam, uses “augmented reality” technology, or A.R., to harness a phone’s camera, global positioning system and compass. Elements like statistics and 3-D images are, essentially, layered over a live picture so the user gets a single view with all available information. March 26, 2010
Obama Readies Steps to Fight Foreclosures, Particularly for UnemployedThe Obama administration plans to overhaul how it is tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday. Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower’s income, which would typically be the amount of unemployment insurance, for three to six months. In some cases, administration officials said, a lender could allow a borrower to skip payments altogether. March 26, 2010
Downtown Low-income Apartments Receive Warm WelcomeOfficials celebrated the grand opening Thursday of CityWalk@Akard, where affordable housing for low-income and formerly homeless residents in downtown Dallas is now a reality. The formerly vacant 15-story office tower will offer 200 units of housing for low-income residents, including 50 apartments for the formerly homeless. In remarks at the ribbon-cutting event, Mayor Tom Leppert said the $35 million apartment building at 511 N. Akard St. complements the many projects in the works to revitalize downtown. March 26, 2010
Underwater Mortgages Drain Equity, Dampen RetirementWhen Jennifer and David Wakefield bought their home at the end of 2005, they believed its value would rise. After all, the couple they’d bought it from made a $100,000 profit in just three years. But instead, the housing market foundered, and the house in Oviedo, Fla., that the Wakefields bought for about $230,000 is now worth just $115,000. Jennifer Wakefield says she’s put off hopes of moving to a larger home. She once thought she could use a home-equity loan to help cover the $30,000 cost of adopting a child, but now there’s no equity to tap into. March 25, 2010
Bank of America Introduces Earned Principal Forgiveness Among Enhancements to Its National Homeownership Retention ProgramBank of America announced it will look first at principal forgiveness - ahead of an interest rate reduction - when modifying certain subprime, Pay-Option and prime two-year hybrid mortgages qualifying for its National Homeownership Retention Program (NHRP). Several enhancements are being made to the program, including the introduction of an earned principal forgiveness approach to modifying mortgages that are severely underwater. The program changes are designed to encourage greater customer participation in the company’s aggressive homeownership retention programs, including our continued strong commitment to the federal government’s Home Affordable Modification Program (HAMP). March 25, 2010
Walking Away from Underwater Mortgage has ConsequencesMore homeowners are walking away from their mortgages, even if they can keep up the payments. Falling into foreclosure — voluntarily or not — has become less taboo for many people as they have watched their house values tumble far below the amount they owe, putting them “underwater.”Purposely defaulting on a mortgage, often called “strategic default,” may be a very rational personal finance decision, but it’s not without major consequences. And it’s not necessarily the best option for anyone underwater who can afford to make monthly mortgage payments but who does not want to wait up to 10 years for the housing market to turn around. March 25, 2010
Study: Homeless Shelters Stays can Cost More Than RentCities, states and the federal government pay more to provide the homeless with short-term shelter and services than what it would cost to rent permanent housing, the U.S. government reports. A study of 9,000 families and individuals being released today by the Department of Housing and Urban Development finds that costs to house the newly homeless vary widely, depending on the type of shelter and social services provided by the six cities in the report. Emergency shelter for families was the most costly. In Washington, D.C., the average bill for a month in an emergency shelter ranges from $2,500 to $3,700. In Houston, the average is $1,391. March 25, 2010
3,100 PUBLIC HOUSING AUTHORITIES MEET CRITICAL RECOVERY ACT DEADLINE, CREATE NEARLY 9,000 JOBS AND REHAB 150,000 HOMES FOR LOW-IU.S. Housing and Urban Development Secretary Shaun Donovan Wednesday announced that over 3,100 public housing authorities across the U.S. successfully met a critical funding deadline outlined in the American Reinvestment and Recovery Act of 2009 (Recovery Act). As a result, the nearly $3 billion in Public Housing Capital Fund grants awarded through the Recovery Act one year ago are being used to make significant improvements to tens of thousands of public housing units nationwide; creating jobs and growing the economy. March 25, 2010
U.S. Fails to Convince Israel on Housing DisputeWith Israeli officials saying that construction on a contentious Jewish housing project in East Jerusalem could begin at any time, President Obama seemed to have failed on Wednesday to persuade Prime Minister Benjamin Netanyahu to give a written commitment to rein in any further building and to move ahead on peace talks with the Palestinians. Israeli and American negotiators huddled in Washington for a second straight day but Mr. Netanyahu continued to balk at American demands that he find a way to reverse another East Jerusalem housing plan: the one in the Ramat Shlomo neighborhood that was announced during Vice President Joseph R. Biden Jr.’s trip to Israel this month, igniting a diplomatic storm. March 25, 2010
HUD Taking a Closer Look at Added Realty FeesHelen R. Kanovsky, general counsel at the Department of Housing and Urban Development, clarified the government’s position on controversial add-on fees in a recent letter to industry lawyers. During the past several years, many brokerage companies began adding fees onto their commissions to generate higher revenue. The fees came with a variety of names — “processing” and “ABC” among others — and were charged to sellers and buyers, payable at closing. March 25, 2010
Stall in Housing Market Threatens EconomyThe recovery in the housing market is at risk of collapsing. Home sales are sliding, prices are stalling and foreclosures are rising. And mortgage rates are likely to go up after next week, when the Federal Reserve ends a program that has driven them down. The trend could threaten the broader economy, economists warn. People whose home equity is stagnant or shrinking are less likely to spend freely. March 25, 2010
Nigeria: Expert Faults Mark On Social Housing PolicyBarely few weeks after the Senate president David Mark lead other top government officials to the unveiling of Diamond Estate, Isheri-Olofin in Lagos, investors and estate developers have faulted the claims of the senator on concentration of mass housing in only major cities of the country, saying the urban region of every economy would continue to command high demand for housing than the rural setting. March 25, 2010
Foreclosure Program May Prolong Crisis, Study SaysThe Obama administration’s main foreclosure-prevention program risks helping few borrowers and may do more harm than good by “merely spreading out the foreclosure crisis” over several years, investigators said. “A year into the program, although more than a million trial modifications have been initiated, the number of permanent modifications thus far, 168,708, has been, even according to Treasury, disappointing,” according to a report by a government watchdog. “The program will not be a long-term success if large amounts of borrowers simply re-default and end up facing foreclosure anyway.” March 25, 2010
Albanian Women Deserve Justice March 25, 2010
Make Less Than $62K? Can’t Afford Home in ChicagoHomes in the Chicago area have dropped in price, and so has the income needed to purchase them. But that hasn’t made it any easier for many working adults to afford them, a new study shows. Homeownership remains out of reach for elementary school teachers, police officers, some nurses and many others in Chicago. The annual income needed to purchase a home was $62,686 at the end of 2009, according to the Center for Housing Policy’s annual Paycheck to Paycheck study on housing costs. March 25, 2010
If Hot China Real Estate Market Stumbles, Will USA get Bruised?In this former Chinese fishing village where skyscrapers are springing up almost as quickly as the population of 9 million is growing, it’s not hard to find people who think real estate prices will keep rising, as well. Zhao Jin is a believer. In late 2008, as sales of the licorice-scented tea that Zhao exports from Hunan province took off, he bought a modest three-bedroom apartment on the outskirts of Shenzhen. The property’s value has soared 63%, prompting an avalanche of calls from property agents asking whether he wants to sell (the answer is no). March 24, 2010
Vows to Pick Up Where ACORN Left Off are MadeFormer ACORN members and employees said Tuesday that they are dismayed by news that the group is disbanding amid money woes and scandal after 40 years of community activism. “I’m very sad that it all had to come to this,” said Mary Keith, who worked for ACORN’s Cleveland chapter for six years. “Without ACORN, I don’t know how effective we’re going to be, but we’re still going to fight” school closings and foreclosures in her neighborhood, she said. The announcement that the Association of Community Organizations for Reform Now is folding came six months after conservative activists pretending to be a pimp and prostitute released videos showing ACORN workers giving them tax advice. March 24, 2010
Closing Schools Affects Communities as Well as KidsSuperintendents of struggling districts are winning praise for confronting budget woes by shuttering half-empty and underperforming schools, a move often blocked by local politics in the past. In many cases, the schools have been declining for years, but were never closed because residents and local advocacy groups fought to keep them. Now school leaders have an argument that trumps any parent outrage: The struggling economy makes these schools a luxury that districts can no longer afford. March 24, 2010
Stock Market: Stocks Rise as Housing Report Buoys InvestorsStocks extended their streak of gains Thursday after sales of existing homes fell less than expected.The Dow Jones industrial average rose more than 100 points and broader indexes also climbed. The report from the National Association of Realtors was typical of recent economic numbers that have been somewhat better than expected but still point to a weak economy. Sales of previously occupied homes fell 0.6% last month to an annual rate of 5.02 million. Analysts expected sales would fall to 5 million units, according to Thomson Reuters. March 24, 2010
Debate on the future of Fannie, Freddie Heats UpU.S. lawmakers are starting to wrestle with how to replace Fannie Mae and Freddie Mac, the mortgage giants that nearly collapsed at the start of the financial meltdown. In September 2008, the government seized control of Fannie and Freddie — massive companies that purchase home loans, package them into investments and guarantee them against default. Since then, the government has pumped a combined $126 billion into the companies to keep them afloat. House lawmakers on Tuesday took tentative steps toward figuring out what to do next, holding their first hearing about how to restructure the mortgage system in the wake of the financial crisis. For the time being, the market is still resting on three government pillars: Fannie, Freddie and the Federal Housing Administration. March 24, 2010
Gridlock May Not Be Constant, but Slow Going Is Here to StayTraffic in Manhattan has a rhythm all its own, and, according to a new study by the city, it is not quite the constant gridlock that it seems. Using data from the GPS devices in all New York City cabs, officials tracked the routes of tens of millions of taxi trips over the past two years. The result: a database of speeds and travel routes that can be broken down by minute, month and neighborhood. “It’s like an M.R.I.,” said Bruce Schaller, a deputy transportation commissioner who supervised the city’s study.For traffic planners, the data provides an entirely new resource for targeting their tweaks to the streetscape. Officials are already using the information to help improve traffic patterns along 34th Street. March 24, 2010
U.S. Banks Pay Lip Service to Second MortgagesChase announced today that it will provide additional help to struggling homeowners by joining the second-lien program of the federal government’s Home Affordable Modification Program. The Second-Lien Modification Program, known as 2MP, is designed to work in tandem with HAMP to lower homeowners’ payments on both their first and second mortgages. “We have invested significant resources to modify mortgages and keep more families in their homes,” said David Lowman, head of home lending at Chase, part of JPMorgan Chase & Co. “This program makes it easier to coordinate with other servicers by using consistent 2MP standards.” March 24, 2010
Reviving a Poor Neighborhood for Its InhabitantsThe Resource Access Center, a $47 million complex that will provide affordable housing and a shelter and services for homeless people, is the focal point of a 10-year plan to end homelessness here. The eight-story, 106,000-square-foot center, which will open next year, is expected to help catalyze development in the north end of Old Town/Chinatown, a neglected area that supporters say is poised for significant growth. “The R.A.C. will be at an intersection of our education system, transportation system and economic development laboratory,” said Nick Fish, a city commissioner who oversees the Portland Housing Bureau, which works on behalf of low-income residents. “It will be a showcase for the city.” March 24, 2010
Existing-home Sales Fall for Third Straight MonthExisting-home sales fell for the third consecutive month in February, fueling concerns that the tax credit for home buyers that helped revive the market last year won’t provide a comparable boost during this spring’s buying season. An $8,000 tax credit for qualified first-time home buyers helped give the nation’s sagging housing market a lift in 2009. But sales levels have fallen 23 percent since November, when the tax credit was initially scheduled to expire. March 24, 2010
For Many, Housing in Md. Still Out of ReachInterest rates and home prices haven’t fallen far enough to put homeownership within reach of many moderate-income workers in the Baltimore metro area, a new study suggests. A buyer making a 10 percent down payment would need to earn $70,000 a year to afford the Baltimore area’s median home price of $235,000, according to a report released Tuesday by the Center for Housing Policy. Police and elementary school teachers make about $52,000, the nonprofit research group said. Nurses earn about $41,000. March 24, 2010
TARP Watchdog Slams Obama Foreclosure ProgramPresident Obama’s foreclosure prevention program will likely fall far short of its goal and may even do more harm than good, a government watchdog said Tuesday. The Special Inspector General for the Troubled Asset Relief Program said the Treasury Department set targets that weren’t “meaningful,” mismanaged the implementation of the program, and now risks a substantial number of “re-defaults,” with many participants ultimately losing their homes anyway. March 24, 2010
Homeowners Sue Bank of America Over Failed Loan ModificationsAs many Americans struggle to avoid foreclosure, a Seattle attorney claims the big banks who took big bailouts are refusing to help bail out their customers. Steve Berman of the firm Hagens has filed a lawsuit in federal court against Bank of America. “I wouldn’t have filed this suit if this is the first time I heard this story. But we have been hearing about this for a year,” Berman said. The issue is the program aimed at helping struggling homeowners to avoid foreclosure, but allowing banks to modify loans and reduce monthly payments. March 24, 2010
Rise in Metro-area HomelessnessThe number of homeless people in the Omaha metropolitan area grew this year by 13 percent, according to a count released this week. The Metro Area Continuum of Care for the Homeless counted 1,429 homeless people in shelters, hospitals and on the street on Jan. 27. That’s up 164 from the same time last year. The Continuum of Care leads two such point-in-time counts a year as a way to establish baseline measures of homelessness. In 2009, the group counted 1,265 homeless people on Jan. 29 and 1,322 on Aug. 6. Erin Porterfield, the continuum’s executive director, attributed the rise in homeless numbers to “a lack of money.” March 24, 2010
NJ: Report Seeks Changes in Affordable Housing RulesA task force commissioned by Gov. Christie to examine state mandates to towns regarding affordable housing issued a report yesterday that suggested 10 percent of all new housing must be deemed affordable and expanded the definition of the units to include everything from dorms to trailers. The task force recommended changing the way a town’s obligation is counted to focus more on rehabbing existing homes than building new affordable housing. New Jersey courts have ruled that towns have an obligation to provide housing for lower-income people but haven’t set a quota. March 24, 2010
TX: Sunnyvale Held in Contempt of Affordable-housing SettlementA federal judge has held Sunnyvale in contempt of court for failing to live up to a 2005 settlement agreement regarding affordable housing within the town limits. U.S. District Judge Reed O’Connor gave the town and the plaintiff — Inclusive Communities Project, a nonprofit fair-housing organization — until April 13 to present arguments for potential remedies. He signed the order Monday. March 24, 2010
Many Renters Unaware of Foreclosure RightsLast year witnessed a record number of foreclosure filings, with 2.8 million properties receiving either a default notice, scheduled foreclosure auction or bank repossession. Despite keeping up on their payments, renters are often affected by their landlord’s financial fallbacks. A federal law was passed last year to protect the rights of these individuals. The 2009 Protecting Tenants at Foreclosure Act requires that lenders give at least 90 days’ notice following a foreclosure sale’s “redemption period” before evicting them from a property. March 24, 2010
Microcosm of Housing Crisis on an Arizona StreetTwo in five homeowners in this sprawling development 30 miles northeast of Phoenix are underwater on their mortgages. And that reality is wearing away household budgets and people’s patience.Arizona is one of five states that, with money from Washington, hopes to help at least some of these people hold on to their homes. Under a new, federally financed pilot program for the hardest-hit housing markets, state officials will decide who will get a homeowner bailout, and who will not. March 23, 2010
Acorn to Shut All Its Offices by April 1The community organizing group Acorn announced Monday that it would close all its remaining state affiliates and field offices by April 1. The organization is “developing a plan to resolve all outstanding debts, obligations and other issues,” said a statement released by the group. Acorn has been battered by criticism from the right and has lost federal money and private donations since a video sting was publicized last fall. Acorn employees were shown in the videos advising two young conservative activists — posing as a pimp and a prostitute — how to conceal their criminal activities. March 23, 2010
Facing a Financial Pinch, and Moving In With Mom and DadCarlos Cruz is 38. He works full time at a law firm and part time as a scuba instructor on the weekends. He lives with his parents and grandmother in a four-bedroom apartment in Washington Heights, for reasons of family and finances. A census analysis by The New York Times confirms earlier surveys, including one last fall by the Pew Research Center, suggesting that parents need not be so concerned about becoming empty nesters when their children become adults. Since 2000, more people in the 25-to-39 age group have been living in their parents’ homes. March 23, 2010
The Case for Ending the Mortgage DeductionMortgages should be made less attractive. That’s one lesson of the recent housing bubble and bust. As long as borrowing seems like the easy road to riches, people will do too much of it. But right now in the United States, the tax code encourages many people to take out big mortgages. That’s why it’s a good idea to put the elimination of the tax deductibility of mortgage interest on the political agenda. American homeowners can for tax purposes deduct interest on mortgages of up to $1 million. It’s a politically popular arrangement, and the lure of paying a bit less to the government has been an incentive to stretch housing budgets up to, or past, the limit. March 23, 2010
FHA mortgage delinquencies dropped in FebruaryThe share of recent loans backed by the Federal Housing Administration that are seriously delinquent fell in February to the lowest point since last summer, reversing an alarming increase in the agency’s default rate. About 4.8 percent of FHA-backed loans made in the two years ended Feb. 28 were at least three months late, down from 5 percent in the two-year period ended Jan. 31, according to the agency’s most recent public data. About 154,000 loans were seriously behind and another 8,500 had gone bad, requiring the agency to pay claims to lenders. March 23, 2010
Feb. Blizzards Drained Home Associations’ BudgetsThe Dorsey Hall Condominium Association in Ellicott City overran its snow-removal budget by about $30,000 in back-to-back blizzards last month - the equivalent of $200 extra for each of the 132 households in the neighborhood. Snow expenses are piling up across the Baltimore area. The February storms that dumped more than 40 inches on the region in the space of a week have strained homeowner and condo associations, draining reserves and leaving many with a tough choice: Cut services or raise residents’ fees. “Something will suffer, that’s for sure,” said Vivek Mehta, Dorsey Hall association president. March 23, 2010
Property Flipping, Meet ‘Flopping’“Flipping” has a shady reputation in Baltimore, “Flip This House” and similar shows notwithstanding. Reselling a house for more than you paid soon after you bought it is no crime — unless you made the numbers work through deception, which happened in scores of cases here in the ’90s and early part of the decade. As Susan Gaffney put it in 2000, when she was inspector general of the U.S. Department of Housing and Urban Development, “When we see properties with FHA mortgage insurance bought and sold the same day for a 50 percent or a 100 percent profit, we can be reasonably certain that something is wrong. In most cases, the profit results from false and fraudulent documentation provided by one or more of the parties to the transaction, such as the lender and/or the appraiser.” March 23, 2010
Greenspan Denies Fed Fueled Housing BubbleFormer Federal Reserve Chairman Alan Greenspan, whose legacy has been tarnished by the global financial crisis, on Thursday laid out a scholarly defense of why Fed policy did not fuel the housing bubble. Greenspan did offer somewhat of a mea culpa, though, noting that the regulatory system failed by not demanding financial firms hold much larger capital buffers. Greenspan, who led the U.S. central bank from 1987 to 2006, has been criticized by some analysts who argue he kept short-term, benchmark interest rates too low for too long in the early 2000s. March 23, 2010
Is Urban Farming Detroit’s Cash Cow?Community gardeners in Detroit harvest a good deal of fruits and vegetables each year, but not much of that other type of green: profit. This year, though, Detroit’s small-scale, volunteer urban farm movement will see the most dramatic steps yet toward making urban farming an economically viable industry. These steps promise that within the next few years, urban growers in Detroit will produce jobs and a tax base along with their salad greens. March 23, 2010
Investors with Cash are Buying HousesMore home buyers are snapping up properties with cash, a trend driven in large part by investors returning to the market after four years of falling prices around the country. The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, according to the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment. March 22, 2010
FHA HIRES COMPLIANCE MANAGER TO OVERSEE INVENTORY OF ‘HUD HOMES’The U.S. Department of Housing and Urban Development (HUD) today announced the agency is contracting with Michaelson, Connor & Boul, Inc. (MCB) of Huntington Beach, California to serve as a Mortgagee Compliance Manager. MCB will be responsible for ensuring that Federal Housing Administration (FHA)-approved lenders and loan servicers convey foreclosed properties to the FHA in acceptable condition. MCB will establish a central office for lender compliance oversight in Oklahoma City, which is projected to create 75 - 100 new professional jobs. HUD’s National Servicing Center (NSC) in Oklahoma City will be responsible for the direct oversight of the new compliance manager contract. March 22, 2010
When Not to Pay Down a MortgageThis week, the Federal Reserve reaffirmed its intention to stop buying mortgage-backed securities, signaling the likelihood that the mortgage rates you can get today are as good as they’re going to be for a long while. Once the Fed stops buying, after all, rates are likely to go up. And current rates are quite good. At about 5 percent, in fact, they’re so good that they’ve helped change the age-old debate over whether homeowners should make extra mortgage payments to pay off their debt well before their loan periods are up. March 22, 2010
Justice Department Resolves Discrimination Lawsuit with Scranton, Pennsylvania, Apartment ComplexThe United States has reached a settlement resolving a housing discrimination lawsuit in Pennsylvania concerning discrimination against families with children, the Justice Department announced. Under the terms of the consent decree, filed today in federal court in Scranton, Pa., defendants Gerard Joyce, Katie Joyce, Daniel Joyce, Normandy Holdings LLC, Lofts at the Mill LP and Lofts GP LLC, are required to pay $35,000 in monetary relief to two victims of discrimination and to the United States. March 22, 2010
Finding in Foreclosure a Beginning, Not an EndJane Petion lived in her home for 15 years and saw its value rise slowly, rise rapidly and, when the housing bubble burst, plunge at a sickening pace that left her owing $400,000 on a house worth closer to $250,000. Last June, her lender foreclosed on the property. The family received notices of eviction and appeared in housing court. Then they discovered a surprising paradox within the nation’s housing crisis: Their power to negotiate began after foreclosure, rather than ending there. March 22, 2010
A Shelter for Families in Need of a PushDenise Benson runs a no-nonsense, no-frills homeless shelter for the city in Queens. There is no common room for lounging and watching television. Most homeless families meet with their caseworkers several times a week. Staff members escort residents to job interviews and to tour available apartments. Ms. Benson is on the front lines of the Bloomberg administration’s unsuccessful war against homelessness. During the eight years that Mayor Michael R. Bloomberg has been in office, the number of homeless people filling city shelters has sharply risen, currently approaching 38,000, including 8,600 families with children. The number of families entering shelters has increased by more than 50 percent in the past two years. In February, 1,152 families entered shelters. More than 400 had been in the shelter system before. March 22, 2010
HUD Taking a Closer Look at Added Realty FeesDoes it matter whether a real estate agent charges you a flat commission rate — say 6 percent — or quotes you a flat rate but adds hundreds of dollars labeled an “admin” or administrative fee? A top federal housing official says it might matter a lot, especially when minimal or no separate services are performed to justify charges beyond the regular commission. March 22, 2010
Adjustable-rate Mortgage Holders Vulnerable to Sudden Rate IncreaseMany mortgage borrowers with adjustable-rate mortgages on which the rate has adjusted in recent years are currently enjoying extremely low interest rates. This reflects the unusually low levels of the rate indexes used by most ARMs. But these low rates are accompanied by high anxiety, because of widespread expectations that rates will rise. March 22, 2010
Skanska Development to Build Office Building in Downtown WashingtonNot long ago, office buildings sprouted at a rapid pace in Washington’s business districts. But then the bust came. Companies began slashing jobs, prompting them to shed space instead of spreading out. Vacancy rates soared. Newly completed office buildings sat empty. Now office construction has nearly ground to a halt. Building on speculation — before tenants are lined up — has especially become taboo. So, does a plan by a Swedish developer to break ground this spring on a 10-story, 165,000-square-foot Class A office building near Verizon Center — which has no tenants pre-leased — signal a return to the glory days? March 22, 2010
‘Treme’ Excitement a Bit too Much for Affected Black Pearl NeighborhoodAs New Orleans revels under the label of “Hollywood South,” attracting film crews, celebrities, and convoys of big trucks to the region with the promise of tax incentives and incomparable scenery stretching from Audubon Park to the Lower 9th Ward, one neighborhood isn’t welcoming the limelight.In a riverside block of Lowerline Street, the limelight — which according to some neighbors is an onslaught of cameras, lights, noise and parking problems — is scheduled to start at 5 a.m. today and last until 11 p.m. Tuesday. Fliers putting the neighborhood on notice are circulated by the makers of the HBO original series “Treme,” the second coming of television drama from David Simon, who created “The Wire,” a six-season HBO series that some critics compared to Dickens. March 22, 2010
New Legal Push For Foreclosure Victims March 22, 2010
A New Breed of Guard Dog Attacks BedbugsIncreasingly, real estate lawyers are urging buyers in contract to inspect apartments before they close, and in their advertising, many pest control companies exhort would-be tenants to “inspect before you rent.” And dogs like Cruiser can inspect a room in minutes, whereas lesser mammals like human beings need hours to conduct a visual inspection. Bedbug-sniffing dogs, adorable yet stunningly accurate — entomology researchers at the University of Florida report that well-trained dogs can detect a single live bug or egg with 96 percent accuracy — are the new and furry front line in an escalating and confounding domestic war. March 12, 2010
Chicago: Enforcement of Landscape Ordinance Comes at a Bad TimeAlready hurt by the economy, small-business owners across the city say they are being forced to stretch too far to meet the city’s strict requirements for new fencing and planting trees or bushes. The city first singled out downtown buildings for such improvements, but now that the focus has turned to smaller businesses, letters like the one Mr. Perrotta received are hitting business owners just as the recession is knocking them, too. Complaints from furious constituents have prompted some aldermen to call for a two-year break in enforcing the landscaping ordinance. On Wednesday, Alderman Eugene Schulter (47th Ward), a co-sponsor of the original ordinance, introduced a measure that would enact a moratorium. March 12, 2010
New Round of Foreclosures Threatens Housing MarketThe housing market is facing swelling ranks of homeowners who are seriously delinquent but have yet to lose their homes, and this is threatening a new wave of foreclosures that could hit just as the real estate market has begun to stabilize. About 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. Some economists project it could take nearly three years before all these homes have been put on the market and purchased by new owners. And the number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then, if they can’t obtain mortgage relief, wade through the foreclosure process, which often takes more than a year to complete. March 12, 2010
FHA Challenged on Projected Risk to TaxpayersThe Federal Housing Administration will need taxpayer money because it failed to properly project how borrowers with FHA-backed loans are affected by job losses and diminished equity in their homes, New York University professor Andrew Caplin told a House panel Thursday. The agency, which insures lenders against defaults, has nearly depleted the cash it must set aside to deal with unexpected losses. But a recent audit of FHA’s finances concluded that the agency will not need taxpayer money except in two catastrophic scenarios. March 12, 2010
Proposed Housing Bill would Change Affordable Housing BarNearly half of New Jersey’s towns would already be deemed as having enough affordable housing under an updated bill that would replace the way the state approaches housing for lower income residents. The bill’s sponsor, Sen. Ray Lesniak (D-Union), said yesterday it is not designed to produce more affordable housing but rather to comply with a landmark state Supreme Court ruling that towns could not block residents from access to affordable housing. The current approach of assigning how much affordable housing each town must produce is under attack by the Legislature and the governor. It has been in place since 1985 but has not worked well, Lesniak said. March 12, 2010
Goddard Hires Firm to Probe Lending; Pulte Sues Over ItAttorney General Terry Goddard has hired an outside law firm to investigate possible predatory-lending practices by home builders and their mortgage firms, including whether any lender provided borrowers with false or misleading information. Bid documents obtained by Capitol Media Services show Goddard has agreed to pay a Washington, D.C., law firm a share of whatever it helps him recover in civil penalties against those being investigated. Under the terms of the deal, the firm could get up to one-fifth of anything collected. But that contract has generated a lawsuit of its own, with the largest U.S. home builder and its lending arm accusing Goddard of violating their constitutional rights by hiring a law firm with links to a major labor union to investigate them. March 12, 2010
Foreclosure Rates Up by Smallest Amount in 4 yearsThe foreclosure crisis isn’t over, but the pace of growth may finally be slowing down. RealtyTrac said Thursday that the number of U.S. households facing foreclosure in February grew 6% from the year-ago level, the smallest annual increase in four years. More than 308,000 households, or one in every 418 homes, received a foreclosure-related notice, the Irvine, Calif.-based foreclosure listings company reported. That was down more than 2% from January. Still, fears remain about the hundreds of thousands of homeowners who are still being evaluated for help under loan modification programs. Many analysts say most of those borrowers will eventually lose their homes, sparking a new round of foreclosures later this year. March 11, 2010
With New Homes, Town Makes Amends for Its BiasEven though more than 50 years have passed since Sallie Sanders was a confused little girl wondering why her family was kicked out of their house for being on the wrong side of the color line here, the pain seems fresh. “Just abruptly, we had to end up staying with relatives and friends,” said Ms. Sanders, a retired state worker who is black and who, at age 60, still has trouble recounting the ordeal without breaking into tears. “It was kind of devastating. My parents tried to protect us quite a bit, but I knew something was wrong.” And something was. In 1971, a federal judge found that this old manufacturing town, five miles from downtown Detroit, had deliberately used urban renewal projects throughout the 1950s and ’60s to obliterate black areas from its two square miles, displacing hundreds of families. March 11, 2010
Albany Sides With Owner in a Rent Suit in TriBeCaSeveral months after the highest court in New York ruled that Stuyvesant Town’s owners were wrong to deregulate apartments while receiving tax breaks, the state’s housing agency has determined that another landlord who once received the breaks had the right to charge market-rate rents. Although the new case, which involves Independence Plaza North, a TriBeCa complex with 1,300 apartments, has similarities to the Stuyvesant Town case, there were some differences. March 11, 2010
District Attorney Raids Office of Construction CompanyThe Manhattan district attorney’s office raided the offices of Lehr Construction early Wednesday, seizing project records, bidding documents and other records as part of a growing investigation into the interior construction industry. More than a dozen state troopers and plainclothes detectives from the district attorney’s Construction Industry Strike Force arrived with a search warrant at Lehr’s offices at 902 Broadway, near 21st Street, in Manhattan, at 7 a.m. as employees were coming in. The authorities also raided the Long Island home of one of the company’s executives, according to construction industry and law enforcement figures. March 11, 2010
Politics, Shaky Economy Create No Rush to Restructure Fannie and FreddieThe federal government has spent the past half year seeking to roll back its emergency efforts at propping up the financial markets — with the notable exception of its involvement in mortgage giants Fannie Mae and Freddie Mac. As the government has pledged more and more money to cover the companies’ losses, it has assured the public that planning was underway for overhauling the firms so the bailouts would end. As recently as December, the Obama administration said it expected to release a preliminary report on how to remake Fannie Mae and Freddie Mac around Feb. 1. March 11, 2010
FHA Considers Down Payment RequirementsThe Federal Housing Administration has concluded that its loan volume would have dipped by 40 percent in the next fiscal year and that 300,000 first-time home buyers would have been shut out of the housing market if it had raised its down payment requirements, as critics have pressured it to do, a top housing official plans to tell Congress on Thursday. Borrowers who take out loans backed by the FHA are permitted to put down as little as 3.5 percent. The agency’s cash reserves have dwindled as defaults have climbed in recent years, creating concerns that taxpayers may ultimately have to come to FHA’s rescue. March 11, 2010
Area Home Sales Rose 9% in FebBack-to-back snowstorms shut down the region for days last month, but people still managed to buy and sell more homes. The number of homes changing hands in the Baltimore metro area increased almost 10 percent from a year earlier, on par with the previous two months, Metropolitan Regional Information Systems said Wednesday. Pending deals appeared to be more affected: The 7 percent uptick in contracts signed in February was the smallest year-over-year increase in months. And values continued to drop. The average sale price was about $271,200, a decrease of almost 4 percent from a year earlier. March 11, 2010
Section 8 Housing Lottery Selections to be Announced Next WeekThe Housing Authority of New Orleans attracted nearly 30,000 families - roughly one in five New Orleans households - when it launched a Section 8 lottery six months ago, but none of the hopefuls has yet received a housing assistance voucher. The process is expected to get rolling next week when applicants such as Vashti Jenkins should get letters telling them their ranking in the random lottery. March 11, 2010
Survey: Pace of Foreclosures May be SlowingThe foreclosure crisis isn’t over, but the pace of growth may finally be slowing down. RealtyTrac Inc. said Thursday that the number of U.S. households facing foreclosure in February grew 6 percent from the year-ago level, the smallest annual increase in four years. More than 308,000 households, or one in every 418 homes, received a foreclosure-related notice, the Irvine, Calif.-based foreclosure listings company reported. That was down more than 2 percent from January. March 11, 2010
Bank Sorry for Taking ParrotBank of America Corp. apologized after its local contractor entered the home of a mortgage borrower when she was away, cut off utilities, padlocked the door and confiscated her pet parrot, Luke. Angela Iannelli, 46 years old, alleged in a lawsuit Monday that the October incident—which separated her from her 11-year-old parrot for more than a week—caused so much “emotional distress” that she needed a prescription medication for anxiety. A Bank of America spokesman said Wednesday a bank employee erroneously believed the house was vacant and sent the contractor there with instructions to install a new lock and otherwise “secure” the property. The bank spokesman said those instructions were inappropriate because Ms. Iannelli wasn’t in default and the house wasn’t vacant. March 11, 2010
New Bank Tactic - Foreclose First, Ask Questions LaterOne of the nation’s leading banks has recently faced at least four lawsuits in different cities across the country, having allegedly foreclosed on and seized the wrong homes. And given the record volume of foreclosure activity out there, with a few million more homes expected to be padlocked this year alone, don’t be surprised if more such cases crawl out of the woodwork. RealtyTrac reports today that foreclosure activity across the country rose 6 percent in February over the same month in 2009. March 11, 2010
The Subprime Lending Business Survives, Even ThrivesPoor credit? It’s still no problem for some lenders. The financial crisis was supposed to ring the death knell for companies that make loans to people who have had problems with debt. But a year and a half later, so-called subprime lending is alive and well. What’s more, fears that increased regulation following the credit crisis would dramatically curtail the profits of these lenders is receding. A deal struck in the Senate would reportedly dramatically weaken a proposal meant to crack down on so-called payday lenders and other specialty finance firms that cater to people with lower credit scores. March 11, 2010
Brockton Group to Pressure Bank of America to Address ForeclosuresThe nonprofit Brockton Interfaith Community plans to ask members to consider pulling money out of Bank of America unless the bank takes certain actions on home foreclosures. The organization represents 8,000 people in 13 city religious congregations and has been active in fighting foreclosures in recent years. Within the next two weeks, heads of the congregations will begin asking members to commit to withdrawing all money from Bank of America accounts if certain conditions aren’t met, said Janine Carreiro, BIC’s lead organizer. March 11, 2010
Affordable, Green Housing Will be Partnership FocusCharlotte environmentalists and green-building advocates announced a national partnership Wednesday with a tour in the Cherry neighborhood of North Carolina’s first LEED-certified multifamily housing project for low-income tenants. The Sierra Club and the U.S. Green Building Council will work together to promote environmentally friendly buildings, initially focusing on affordable housing. The building council sponsors the Leadership in Energy and Environmental Design, or LEED, certification program. March 11, 2010
HUD STEPS UP ENFORCEMENT OF JOB CREATION REQUIREMENTS FOR STATE AND LOCAL GOVERNMENTSMore than 3,100 state and local government agencies have responded to the U.S. Department of Housing and Urban Development’s campaign to expand hiring and contracting opportunities for low-income persons. As a result of the effort, three out of four HUD-funded state and local agencies submitted required annual reports, the largest response since HUD made Section 3 reporting mandatory. “HUD’s mission is to invest in people as well as buildings,” said John Trasviña, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “This initiative is a huge step toward creating job opportunities for low- and very low-income individuals and ensuring that state and local governments partner with HUD. March 9, 2010
MD—Montgomery County weighs Clarksburg development interestsPatrick Darby wants to open a bookstore in Clarksburg’s historic district, a short walk from thousands of homes springing up nearby. Victor Peeke would like to sell his historic house, which used to be a doctor’s office. Niki Lewis, who owns an organic market, says if more stores can open, she can attract more customers. But the property owners face a complex set of problems that defies a quick fix. Most of the 40-odd buildings in the northern Montgomery County community’s historic downtown lack a public sewer system, something most Washington area residents take for granted. And the chances of getting the pipes installed anytime soon are linked to another problem: stream pollution caused by development in another part of Clarksburg known for construction irregularities. March 9, 2010
Analysis: Minorities had Greater Share of 2008 Subprime Loans“Eleven-point-six-nine percent,” Hammond resident Art Julkes said plainly. Julkes, referring to the rate on his mortgage, said he is delinquent thousands of dollars on his more than $900 monthly payment. In 2005, the 66-year-old retired maintenance worker refinanced the loan on his modest Hoffman Street home with Household Finance lending company on the premise it would help him financially. Julkes’ new mortgage rate was nearly 6 percentage points higher than the 2005 average rate on a 30-year, fixed-rate loan for prime borrowers, according to Freddie Mac data. March 9, 2010
MassHousing Awards Funding for Affordable Sober HousingThe MassHousing grant of $150,000 for the sober housing being developed by the Women’s Institute for Housing and Development at the former Ingraham School will come from the Center for Community Recovery Innovations, Inc. (CCRI), a nonprofit subsidiary corporation of MassHousing that creates and preserves affordable sober housing in Massachusetts for recovering substance abusers. CCRI to date has awarded more than $4 million in grants for sober housing for more than 1,000 units of substance-free housing in more than two dozen communities for men, women, families, veterans, the homeless and ex-offenders. March 9, 2010
Program Will Pay Homeowners to Sell at a LossIn an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave. This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions. More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done. March 8, 2010
Sex Offender Allowed to Live Near SchoolA convicted sex offender has moved into a home across the street from Wildwood Elementary School in Piedmont, infuriating parents, who are asking school officials and the police why the 2006 state law mandating a minimum distance of 2,000 feet between schools and the residences of sex offenders is not being enforced. But the Piedmont police, on the advice of county and state law enforcement officials, say there is nothing they can do. On Feb. 12, James F. Donnelly, 71, a convicted sex offender, registered his new address as 256 Wildwood Avenue, where a blue-hued house overlooks Piedmont, Oakland’s upscale, uphill neighbor. March 8, 2010
Ex-Building Inspector Charged With Selling Training CertificatesA former city building inspector was arrested Friday and charged with selling scores of safety-training certificates to be used by New York construction workers who never completed the required training, federal prosecutors and the city’s Department of Investigation said. The man, Michael Dinardo, 52, of Queens, admitted to investigators, according to a criminal complaint, that he regularly sold the training cards to a number of companies to issue to their workers. March 8, 2010
Norfolk—Va. City uses State Law to Address Derelict HomesWhen Derrick McCraw bought a house in South Bayview in 1992, he didn’t think anything of the boarded-up white bungalow across the street. After all, the empty building was the only one of its kind on a block lined by well-cared-for homes. McCraw figured the vacant house would soon be rented or sold. But 18 years later, his picture-perfect house and lawn still face boarded-up windows. Tall grass and weeds have been a consistent problem, he said.

But maybe not for much longer March 8, 2010
Deadline Looms for Elevation GrantsRoad Home recipients have until Wednesday to tell state officials whether they want additional money to help with elevating their houses or protecting windows, roofs or large household equipment against future storms. So far, about 40,000 homeowners have expressed interest in the Hazard Mitigation Grant Program, a state-run, FEMA-financed effort to help homeowners rebuild safer and stronger from Hurricanes Katrina and Rita. But only 293 participants have been paid so far, and all but 16 of them have received just part of their payments after midpoint inspections. March 8, 2010
Foreclosures an Added Challenge for CensusThe 2010 Census presents an unprecedented challenge for census takers: Counting people where they live even as the economy is uprooting them from their homes in record numbers. The U.S. Census Bureau acknowledges that foreclosures are a people-counting problem, but says there’s little they can do other than encourage people to fill out the form completely and follow up with those who don’t. The once-a-decade census requires heads of households to report everyone living there as of April 1 - regardless of how they got there or how temporary the situation. March 8, 2010
NY—Protecting Senior Citizens from Unlicensed Assisted Living Facilities — or “Look-a-likes”On Tuesday, March 9, members of the Empire State Association of Assisted Living (ESAAL) will meet with lawmakers at the State Capitol in Albany and urge them to pass legislation granting the NYS Department of Health the authority to ensure that all senior housing residences providing adult home or assisted living services are properly licensed, strengthening resident protections. Since the 1970s, licensed assisted living residences who are members of the Empire State Association of Assisted Living (ESAAL) have worked side by side with the NYS Department of Health to develop regulations that will ensure the safety of all assisted living residents. March 8, 2010
At EIU This Week: Author Mixes History with Her Chicago RootsBeryl Satter will come back to Illinois on Wednesday to talk about a subject that can break her heart, but inspire her as well. Her book, “Family Properties: Race, Real Estate, and the Exploitation of Black Urban America,” tells of a history that is compelling for anyone with Chicago roots, like herself, but also personal because it covers the struggles of her father, Mark Satter, a lawyer who fought for African American families exploited by discrimination in the Chicago real estate market after World War II. March 8, 2010
Fighting Foreclosure and Sometimes WinningAfter she fell behind on her house payments, the phone calls came in constantly, warning Sandusky resident Helen Robinson she risked losing her home. “I was a nervous wreck. I was scared to death. It was just phone call after phone call,” Robinson, 76, said in an interview last week. “It was terrible to have to go through.” After hiring an attorney who specializes in dealing with foreclosures, Robinson was able to save her home. Figures suggest many people who live in the Sandusky area won’t be so lucky. Economists have declared the recession is over, but new figures released by the Ohio Supreme Court suggest the mortgage foreclosure problem is as big as ever. March 8, 2010
Financial Crisis Panel Turns to Risky MortgagesA panel investigating the roots of the financial crisis will press current and former executives of Citigroup at hearings this week about the bank’s role in spreading trillions of dollars in risky mortgage debt through the banking system. The hearings are the first by the Financial Crisis Inquiry Commission to focus on a single company. Witnesses include former Citi CEO Chuck Prince and former Chairman Robert Rubin, who was Treasury secretary during the Clinton administration. March 6, 2010
Short-sale Program Aims to Help ‘Underwater’ HomeownersThe government launched an effort on Monday to speed up the time-consuming, often-frustrating process of selling your home if you owe more than it’s worth. The Obama administration will give $3,000 for moving expenses to homeowners who complete such a sale — known as a short sale — or agree to turn over the deed of the property to the lender. It’s designed for homeowners who are in financial trouble but don’t qualify for the administration’s $75 billion mortgage modification program. March 6, 2010
HUD CHARGES NEW YORK LANDLORDS WITH DISCRIMINATING AGAINST VETERAN WITH DISABILITIESThe U.S. Department of Housing and Urban Development today announced that it is charging two Poughkeepsie, New York-area landlords with violating the Fair Housing Act for allegedly refusing to allow a Vietnam-era veteran suffering from Post-Traumatic Stress Disorder to have a therapeutic service dog in his apartment. In addition, HUD’s charge contends that the landlords, Gerald and Patrick Paribelli, who manage and own the Apartment Buildings of South Street Builders, Inc., in Highland, NY, retaliated against the veteran by threatening to evict him because he filed a housing discrimination complaint. March 5, 2010
An Agent of Evictions, Surprised by the Humanity She SeesIn the dark hours when people learn they are losing their homes, it is Susan J. Parker’s face they see, her hand that proffers the eviction notice, her voice they hear: “You’ve been served.” Ms. Parker is a process server, “the bearer of bad news,” in her words. Like bankruptcy lawyers, repo men and second-hand stores, she is in a business — doing the face-to-face dirty work on behalf of banks, lawyers and businesses — that is flourishing amid the economic detritus of the recession. March 5, 2010
Controversial Architect Is Barred by CityRobert M. Scarano Jr., a Brooklyn architect who has long been criticized by community groups for flouting zoning laws, was barred by the Department of Buildings on Wednesday from filing construction plans — threatening, at least temporarily, his ability to work as an architect in the city. The order, which applies both to pending applications that Mr. Scarano has before the Buildings Department and to any new ones he might want to file, came after a scathing recommendation by an administrative law judge, who found that he had made numerous false statements about three properties in Brooklyn. March 5, 2010
Market Defies Fear of Real Estate Bubble in ChinaEveryone agrees China is in the middle of a spectacular real estate boom. The question is whether it is in the middle of a rapidly growing real estate bubble. When other recent booms collapsed — in the United States, for instance — they depressed entire economies. In China’s case, a bursting bubble could affect much of the world. China is the fastest-growing large economy and, so far, a main engine pulling the world out of recession. Beijing is clearly concerned. Authorities have recently moved to rein in the easy credit that has helped finance China’s hyperdevelopment, including making it more difficult for home buyers to take out a second mortgage. March 5, 2010
Environmentalist Prods Fellow Blacks to Join in Her Crusade“Instead of waiting for the people to come to us, we go to them, wherever they are,” she said. “We’re going into the bars, the parks, the churches, the schools, the stores with this new green-economy education. We have to spread the word. Otherwise, people of color are going to be left behind.”Ms. Davis is the founder and president of Blacks in Green, a three-year-old trade association and education and advocacy group based in Chicago that “teaches the benefits of the new green economy to communities of color through classes, programs, activities and enterprises.” She is part of a new generation of black and Latino environmentalists who hope to revitalize their battered neighborhoods, struggling suburbs and rural towns with green-collar jobs and businesses. March 5, 2010
AIG Units Settle Lending Discrimination AllegationsAIG Federal Savings Bank and Wilmington Finance settled Justice Department claims that they broke the law by allowing wholesale mortgage brokers to charge higher direct broker fees to black borrowers.In a consent order filed Thursday in federal court in Wilmington, Del., the banks — both units of New York-based American International Group — agreed to pay at least $6.1 million to resolve the allegations. March 5, 2010
Hurricane Recovery Grant Program is Not for Everyone, but is Accomplishing Its GoalsA year after Mayor Ray Nagin launched a $10 million grant program for lower-income elderly and disabled homeowners, it is arguably the administration’s most successful housing aid effort to date, but not for how much money it has disbursed or how many homes it has rebuilt. It began last March with a crush of more than 6,000 applicants for 300 forgivable loans of as much as $35,000. A year later, it has approved about $1.4 million in payments, with 26 repair jobs done and 27 more in construction. March 5, 2010
Mind the Deadline for Road Home Elevation Grants: An EditorialThousands of South Louisianians who received Road Home grants also have started the process of seeking additional money to elevate their homes or to make them more hurricane resistant. That’s smart rebuilding. But not all homeowners who may be eligible for the extra aid have let the state know that they are interested in it, and those residents face a March 10 deadline to do so. People who chose Option 1 to rebuild or repair their homes are the only ones eligible for this aid. It’s to their advantage to take full advantage of these programs and send in the paperwork by the deadline. March 5, 2010
MA—Brockton Woman to Meet with Federal Reserve Chairman about ForeclosuresA leader from the Brockton Interfaith Community will meet with Federal Reserve Chairman Ben Bernanke on Tuesday to discuss issues affecting the city’s foreclosure crisis. Katie Sanford of Brockton will urge Bernanke to use his influence to strengthen the Community Reinvestment Act and other laws around housing, according to the Brockton Interfaith Community. BIC is made up of 13 religious congregations in the area. Sanford will be joined at the meeting by other activists from communities around the U.S. that have struggled with high rates of home foreclosures. March 5, 2010
Foreclosure Auctions are White Hot as They Sweep the NationHome foreclosure auction sales are white hot this year. Real Estate Disposition, LLC, (REDC), the nation’s leading real estate auction company, is auctioning foreclosures at a record pace this year and is showing no signs of slowing down this year. The company has auctioned a U.S.-leading 5,700 properties so far this year for $322 million. The company is in the midst of conducting a record 125 auctions in a 71-day span. March 5, 2010
Foreclosure Figures Raise Other FearsEven as each day bring more snippets of upbeat news about the nation’s fitful economic recovery, one statistic remains stubbornly downcast. Waves of foreclosures are still making their way through Delaware and the country as homeowners struggle to make payments amid a job market that will likely be the last piece of the economy to recover. On Thursday, the First American CoreLogic research firm said both the foreclosure and delinquency rates in the Philadelphia area rose in January from the same period last year. Meanwhile, January’s national rate of foreclosure filings, while they have eased since December, remain 15 percent above the level of a year ago, according to RealtyTrac. March 5, 2010
Portland, OR—Affordable-housing Plan Hits ResistanceA group of property owners is fighting a proposed affordable housing development in the city’s arts district, arguing that it would lower property values and inhibit the area’s economic resurgence. Supporters say the project would provide housing for artists and people who work in low-wage service jobs downtown. Avesta Housing plans to build a 37-unit, four-story apartment building on Oak Street, behind Five Fifty-Five, an upscale restaurant at 555 Congress St. The 9,600-square-foot lot is now used for monthly parking. March 5, 2010
Judge Hears Arguments in Sunnyvale Housing Discrimination LawsuitA federal judge on Thursday heard arguments on whether Sunnyvale violated terms of a settlement of a housing discrimination lawsuit that stretches back decades. Attorneys for Inclusive Communities Project, a Dallas fair housing agency, said that in rejecting an apartment zoning application last year and in not securing at least 70 potential low-income housing sites by an April 2008 deadline, the town is in breach of a 2005 agreement. But Sunnyvale’s attorneys argued that it was not required to lock down owners who would guarantee that they would rent or sell their homes to people with Section 8 vouchers. March 5, 2010
Justice Department Files Lawsuit Alleging Racial Discrimination at Ann Arbor, Michigan, Apartment ComplexThe Justice Department today filed a lawsuit against the owner and property manager of a 48-unit apartment complex in Ann Arbor, Mich., alleging that the defendants discriminated on the basis of race or color in the rental of apartments, the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Michigan announced. “Housing is a basic human need, and no individual should be subjected to indignity of discrimination as they look for a home for their family,” said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. “This lawsuit demonstrates that the Justice Department will not tolerate violations of our nation’s fair housing laws.” March 4, 2010
Shifting Soil Threatens Homes’ FoundationsHis is not the only house buffeted by shifting soil. Extreme weather possibly linked to climate change, as well as construction on less stable ground, have provoked unprecedented foundation failures in houses nationwide. Foundation repair companies report a doubling and tripling of their business in the last two decades with no let-up even during the recession. “We’ve seen a tremendous influx of pretty severe cases due to either drought or too much rain,” said Dan Jaggers, vice president of technical services at Olshan Foundation Repair, which has offices in the South, Midwest and Great Plains. March 4, 2010
It’s Polluted, but the Canal Is Home, and InspirationThe rain had stopped; the streets were empty. A block from the Gowanus Canal, a woman called Terri squinted into the headlights of passing cars, searched for clients and found none. Her head was wrapped in a powder-blue scarf. The white towers of the Wyckoff Houses rose behind her. She had worked these streets in Brooklyn for years, as the neighborhood turned from a rusty industrial hub into a budding art colony, and lately, a draw for developers dreaming of condominiums. On Tuesday, the Environmental Protection Agency designated the canal a Superfund site, a weighty tag with unknown consequences for the artists and sex workers, auto mechanics and homeowners who live and trade along the border zone called Gowanus. March 4, 2010
Shutting Off of Sprinklers Is Cited in Fire at CourthousePart of the sprinkler system in the basement of a Manhattan courthouse was illegally disconnected, allowing a fire that erupted there to grow before firefighters arrived to control it, the authorities said Wednesday. It was unclear when or why that portion of the sprinkler system had been disconnected, but the Buildings Department issued a violation to the Department of Citywide Administrative Services, which manages the building for the court system, according to Tony Sclafani, a spokesman for the Buildings Department. March 4, 2010
More Foreclosure Scams May Hit The Boston Real Estate MarketAccording to Mortgagefit.com, “Forensic loan audits are the latest variation of loan modification scams. California Department of Real Estate and the State Bar of California have already warned homeowners to avoid such scams because these loan audits offer no help towards saving their home from foreclosure. The scams are more prevalent in states with high foreclosure rates, but Massachusetts is not an automatically excluded target. March 4, 2010
Justice Department to Help New Life Ministries in Discrimination Suit Againt CountyOn the verge of going broke, New Life Outreach Ministries, a Lakeland addictions program for men, may indeed have found new life. The U.S. Department of Justice has notified Polk County of its intent to represent New Life and its founder, Larry Mitchell, in his years-long battle to sue the county for violating federal discrimination laws. In that 2007 suit, Mitchell charged that Polk reneged on a zoning issue that would have allowed New Life to convert a former assisted-living facility to a group home for chronically homeless men. March 4, 2010
Dallas Housing Authority halts church services at complex for seniorsFor 14 years, Lake Highlands United Methodist Church has brought Sunday morning worship to elderly residents of Audelia Manor, a public housing apartment complex in northeast Dallas. But now the Dallas Housing Authority has ordered the church to stop, arguing that the services violate church-state separation required by the U.S. Constitution. MaryAnn Russ, president and chief executive officer of the Dallas Housing Authority, said the worship services violate the agency’s contract with the U.S. Department of Housing and Urban Development, which funds its public housing programs. March 4, 2010
U.Va. Planning Professor’s Book Sheds New Light on ForeclosuresA new book by University of Virginia planning professor William Lucy looks more deeply at the reasons behind the foreclosure crisis and its future impact on cities and suburbs. “Foreclosing the Dream: How America’s Housing Crisis Is Changing Our Cities and Suburbs,” published by the American Planning Association, examines factors beyond financial manipulations that fueled the crisis, and identifies signs that herald a fundamental change in our communities — change that Lucy predicts will continue and gain momentum in the coming years. Lucy examined 236 counties in the 35 largest metropolitan areas, combined with housing and income data in each of the 50 states. March 4, 2010
NY—Pols Pitch New Law on TrailersThe county Legislature has again delayed a plan to free up cash needed to start removing the sex offender trailers in Riverside and Westhampton. In addition, two western Suffolk lawmakers have filed a bill to permanently keep the trailers on the East End. The Legislature tabled, or postponed, a vote to increase a Department of Social Services petty cash fund limit from $8,500 to $25,000 at its meeting Tuesday at the County Center. That change is needed to enact a plan to close the trailers and switch to a new plan under which homeless sex offenders would be given vouchers of up to $90 per day in order to find their own room and board. March 4, 2010
Energy Savers May get RebatesPresident Obama on Tuesday revealed details of a program to boost the energy efficiency of the nation’s homes, create jobs and cut energy bills. The Home Star program, which needs congressional approval, envisions rebates of $1,000 to $1,500, or 50% of the cost, for simple upgrades, such as windows and insulation, for a maximum of $3,000 per home. March 3, 2010
Montgomery, Md., Council Approves New Zoning Rules for White Flint AreaThe Montgomery County Council unanimously approved a new building zone Tuesday that is widely considered the template for a major revision of the county’s zoning rules. The measure, which paves the way for developers to begin remaking the White Flint area along Rockville Pike, is part of a larger effort to simplify the zoning code and promote more urban development in the largely suburban county. March 3, 2010
A timeline for Home Buyers Who Want the Tax CreditIntending to snag the $8,000 tax credit for first-time buyers or the $6,500 credit for repeat buyers? If you haven’t done anything except think about what you’d do with the dough, Realtor.com — run by the National Association of Realtors — suggests you get a move on. March 3, 2010
Minority Real Estate Groups Make Recommendations to Address Housing CrisisThe combined 70,500 members and affiliates of the National Association of Hispanic Real Estate Professionals, The Asian Real Estate Association of America (AREAA) and the National Association of Real Estate Brokers (NAREB) plan to share The Five-Point Plan: Creating A Sustainable Path to Minority Homeownership during their 2010 Multicultural Real Estate & Policy Conference this week in Washington, D.C. Leaders from the three national trade groups are appealing to lawmakers during Capitol Hill visits to take actions that stabilize the market, expand consumer protections, preserve liquidity and stop the spiral of losses in minority communities. March 3, 2010
Fort Lauderdale to Replace Low-income ComplexA collection of simple, concrete homes for poor people on Broward Boulevard will be torn down and replaced with new housing, city commissioners agreed late Tuesday. The Fort Lauderdale Housing Authority won approval for the controversial re-do of the Dr. Kennedy Homes, on the south side of Broward Boulevard, between 11th and Ninth avenues. March 3, 2010
Montgomery County Needs More Affordable Housing, Officials SayThe demographics have changed in Montgomery County, leading to an influx of poorer residents and a need for more affordable housing, according to a local housing advocate. If Montgomery County stopped building today, by 2015 the county would have 35,000 fewer affordable housing units than it needs, said Barbara Goldberg Goldman, co-chairwoman of the Affordable Housing Conference of Montgomery County. March 3, 2010
Inclusive Public Housing: Services for the Hard to HouseWhile HOPE VI has changed the face of public housing, it has not been a solution for the most vulnerable families. The Chicago Family Case Management Demonstration, an innovative model for serving these residents, provides them with intensive family case management, along with relocation, employment, financial literacy, mental health and substance use supports. This report focuses on one of the major challenges to serving vulnerable families: identifying which clients require the full intensive services. March 3, 2010
Judge Orders New York City to Move Mentally Ill Out of Large, Institutional HousingNew York State must begin moving thousands of people with mental illness into their own apartments or small homes and out of large, institutional adult homes that keep them segregated from society, a federal judge ordered on Monday. The decision, by Judge Nicholas G. Garaufis of Federal District Court in Brooklyn, followed his ruling in September that the conditions at more than two dozen privately run adult homes in New York City violated the Americans With Disabilities Act by leaving approximately 4,300 mentally ill residents isolated in warehouselike conditions. March 2, 2010
Bank Declines to Accept Winning Bid on Patterson Park BuildingPatterson Park neighbors joined forces to try to acquire a building they consider the “living room” of the Baltimore neighborhood, and they came out on top at the Friday auction - but walked away empty-handed just the same. M&T Bank, which holds the loan on the now-empty property at Baltimore Street and Linwood Avenue, decided not to accept the residents’ bid of $298,000. Building owner Patterson Park Community Development Corp., which is going through bankruptcy proceedings, owes more than $790,000 March 2, 2010
New Ghost Towns: Industrial Communities Teeter on the EdgeWhen Henry Kaiser arrived 55 years ago, this place was no place — “a rural problem area,” the government called it, so poor and isolated that the population had dropped 15% since 1940. Ravenswood, with 4,000 people and one big factory, is like many towns in the USA where things still are made: caught in a winter between recession and recovery, hoping the latter will arrive before the former kills the last decent blue-collar job. March 2, 2010
Walking Away from a MortgageIf you listen to media coverage about the current housing and mortgage crisis, you are likely to hear tales about people who are walking away from their mortgages when they find themselves owing more on their homes than their homes are worth. The stories range from people leaving their homes and simply mailing their keys to the bank, to those engaging in something called “buy and bail.” “Buy and bail” is a scheme where homeowners apply for mortgages claiming that the rental income on their current home will cover a new home’s mortgage payments. March 2, 2010
Recovery in Action wants Drake Neighborhood HomeThe Drake neighborhood may become home to a residential facility for eight recovering alcoholics and drug addicts. Recovery In Action, an organization that provides sober housing to recovering addicts, went in front of the Des Moines Zoning Board of Adjustments Wednesday seeking approval for “reasonable accommodation” for eight people to live in a house at 1007 33rd St. After an hour of discussion and questions, the board voted to postpone a vote on the request until March because several members wanted more information. March 2, 2010
Obama Directs Secretary of HUD to Research LGBT Housing DiscriminationWith thanks to a directive from President Obama, Secretary Shaun Donovan of the U.S. Department of Housing and Urban Development, (otherwise known as HUD) is preparing to launch a ground-breaking national study of housing discrimination against members of the LGBT community in the sale and rental of housing. Before designing this unprecedented research effort, HUD is conducting a national listening tour with public meetings such as that which began in San Francisco today, to follow with Chicago and New York. In addition, HUD will provide an opportunity for public comment for those living outside these metropolitan areas. March 2, 2010
Trio Fined for Predatory Lending in Greeley AreaThree people were fined $10,000 each and ordered to stop all illegal discriminatory housing practices in Colorado. Colorado Division of Civil Rights Director Steven Chavez found that Dean Juhl, Charles Brandt and Jessica Felicano of JC Distinguished Finance LLC violated Colorado’s Fair Housing laws by targeting Latino homebuyers in the Greeley area using discriminatory, predatory-lending practices that eventually forced the homebuyers into foreclosure. Juhl, a former director of failed New Frontier Bank, Brandt and Felicano could not be reached for comment. March 2, 2010
Tailoring Job Relief to America’s Diverse CommunitiesJobless rates and other economic measures have human dimensions that vary dramatically across the nation. The White House has two responses to this issue: one, that the president cannot focus solely on African Americans; he must be concerned with all Americans. The other response suggests that African Americans and other communities of color — disproportionately affected by foreclosures, lack of health insurance and joblessness — will be the primary beneficiaries of a universal economic recovery program for all Americans. March 2, 2010
HUD ADVANCES FIGHT AGAINST LOAN MODIFICATION SCAMSThe U.S. Department of Housing and Urban Development, in partnership with the Loan Modification Scam Prevention Network, today announced the launch of PreventLoanScams.org. ” Homeowners at risk of foreclosure can be easy prey for home loan modification scammers. Often, dishonest individuals lure vulnerable homeowners into foreclosure rescue scams by making false promises. Scammers frequently claim they can lower mortgage payments or stop the foreclosure process. “ March 1, 2010
Warren Buffett Sees Housing Market Bouncing Back by 2011Billionaire Warren Buffett said the U.S. will recover from the residential real estate slump by 2011 as demand for houses catches up with the supply that accumulated during the bubble. “Within a year or so, residential housing problems should largely be behind us,” Buffett wrote Saturday in his annual letter to the shareholders of his Berkshire Hathaway. “Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits. Indeed, many families that couldn’t afford to buy an appropriate home a few years ago now find it well within their means.” Record foreclosures flooded a U.S. real estate market already glutted with unsold property, causing housing starts to fall. March 1, 2010
Be Aware of Good-faith Estimate’ Rules, or It Could Cost YouIf you are planning to take out a mortgage or refinance, you might want to hear this blunt message from federal officials: Don’t fly blind. When you’re shopping among competing lenders for the best terms and fees, make sure you know which quotes come with a guarantee and which do not. March 1, 2010
Condo Board has Two Options on Delinquent FeesQ: I am president of a six-unit condominium association in the District. Five of the owners reliably pay their monthly condo fee, but one does not. She owes more than $3,500. What options do we have? We understand that the unit owner is also delinquent on her mortgage payments. Can we foreclose on the unit, and if so, what do we have to do about the mortgage? March 1, 2010
More Homeowners may Start to Walk Away from Underwater LoansAccording to new research by First American CoreLogic that will be published in the coming “Negative Equity Report,” homeowners whose homes are worth less than 75 percent of the mortgage amount are most apt to simply walk away and let the home fall into foreclosure, even if they have the means to pay. March 1, 2010
Move Here if You Want to get Ahead QuicklyWith three-year income growth of 11 percent between 2007 and 2009, Delaware County is one of 10 places Forbes found best for professionals to get ahead. The fastest-growing county in the state, it has benefited from both a diverse mix of jobs that has kept the economy strong, and family-friendly neighborhoods that expanded out from the city center. March 1, 2010
Homebuyer Credit not Jolting Housing MarketIn November, the federal government extended a tax credit of up to $8,000 for people who hadn’t owned a home for three years. This credit had helped boost home sales last summer and fall. Seeking to build on that momentum, the government added a new credit of up to $6,500 for current homeowners, hoping it would transform them into house-hunters this winter and spring. March 1, 2010
Mortgage Task Force to Probe Foreclosures, FraudThe popular notion that Buffalo weathered the mortgage meltdown better than most cities is attracting the attention of federal prosecutors who don’t buy it. The government, convinced that the fraud and foreclosure problem here is worse than expected, has formed a Mortgage Fraud Task Force to uncover civil and criminal wrongdoing among brokers, lenders and buyers. “It’s a much larger problem than first forecast,” U.S. Attorney Kathleen M. Mehltretter said of mortgage foreclosures here. March 1, 2010
Myrtle Beach Sees Potential ShelterTwo empty buildings on Mr. Joe White Avenue could become part of Myrtle Beach’s latest offering to get disabled homeless people off the streets. Using $1 million in federal stimulus money and another $400,000 in a community development block grant and other grant and loan money, Myrtle Beach wants to buy the property directly west of The Food Depot at 1101 Mr. Joe White Ave., tear down the buildings and construct an 11-unit apartment complex for those in need of permanent supportive housing. March 1, 2010
DONOVAN AND REID ANNOUNCE $1.3 MILLION TO HELP LAS VEGAS AND CLARK COUNTY STABILIZE NEIGHBORHOODS GRAPPLING WITH FORECLOSURESU.S. Housing and Urban Development Secretary Shaun Donovan and Nevada Senator Harry Reid today announced up to $1.3 million in emergency technical assistance to help reverse the effects of foreclosure and abandonment in certain neighborhoods in the City of Las Vegas and Clark County. The unprecedented aid announced today is funded through the American Recovery and Reinvestment Act and is part of the Obama Administration’s plan to help communities hardest hit by the downturn in the housing market. February 26, 2010
Justice Department Resolves Lawsuit Alleging Disability-Based Housing Discrimination at 21 Multifamily Housing Complexes in TennThe Justice Department today announced a settlement of its lawsuit alleging that the owners and developers involved in the design and construction of 21 multifamily housing complexes in Tennessee discriminated on the basis of disability. The complexes, which were built with the assistance of federal low-income housing tax credits, contain more than 800 units covered by the Fair Housing Act’s accessibility provisions along with areas of public accommodation covered by the Americans with Disabilities Act. February 26, 2010
FDIC to Test Principal Reduction for Underwater BorrowersThe Federal Deposit Insurance Corp. is developing a program to test whether cutting the mortgage balances of distressed borrowers who owe significantly more than their homes are worth is an effective method for saving homeowners from foreclosure. The program would be aimed at a growing population of homeowners who are underwater on their loans, estimated at more than 20 percent of borrowers, or 11 million homeowners. February 26, 2010
Mortgage Rates Climb Over the 5 Percent MarkRates for 30-year home loans rose above the 5 percent threshold for the first time in three weeks, but remained near historically low levels. The average rate on a 30-year fixed rate mortgage was 5.05 percent this week, up from 4.93 percent a week earlier, mortgage finance company Freddie Mac said Thursday. Rates had dropped to a record low of 4.71 percent in December, pushed down by an aggressive government campaign to reduce consumers’ borrowing costs. February 26, 2010
Toxic Towns: People of Mossville ‘Are Like an Experiment’Gather current and former Mossville, Louisiana, residents in a room and you’re likely to hear a litany of health problems and a list of friends and relatives who died young. “I got cancer. My dad had cancer. In fact, he died of cancer. It’s a lot of people in this area who died of cancer,” says Herman Singleton Jr., 51, who also lost two uncles and an aunt to cancer. Singleton and many others in this predominantly African-American community in southwest Louisiana suspect the 14 chemical plants nearby have played a role in the cancer and other diseases they say have ravaged the area. For decades, Mossville residents have complained about their health problems to industry, and to state and federal agencies. Now with a new Environmental Protection Agency administrator outspoken about her commitment to environmental justice, expectations are growing. February 26, 2010
Feds Defend Ohio’s Exclusion from Foreclosure Relief ProgramRep. Dennis Kucinich and other members of Congress from Ohio on Thursday called the Obama administration on the carpet for excluding Ohio from a new $1.5 billion program to fight mortgage foreclosures. The program announced last week will redirect money from the bank bailout to state housing agencies in California, Nevada, Florida, Arizona and Michigan. Ohio gets nothing. February 26, 2010
Housing Authority Eyes Plan as a Private LandlordNearly half of Rochester’s single-family public housing units would become privately owned and rented to low-income tenants with federal Section 8 vouchers under a Rochester Housing Authority plan to reduce its public housing stock and draw additional revenue. The plan would remove 117 of the authority’s 263 so-called “scattered-site” houses — detached houses, duplexes and triplexes dotting the city — from the public housing inventory and put them in the care of two for-profit companies created and owned by the authority. February 26, 2010
Cambridge Resident Provides Shelter for Haiti’s HomelessSix weeks after the devastating earthquake in Haiti, the country’s leaders are pleading to other nations for tents to shelter the thousands of homeless victims who live on the streets of Port Au Prince. Last week, Cambridge resident Dr. S. Allen Counter, professor of neurology at Harvard Medical School and director of the Harvard Foundation, delivered over 150 tents to homeless families in earthquake ravaged Port Au Prince area. Each tent can provide temporary housing for a family of six to eight persons. February 26, 2010
NJ—Mt. Laurel Supports Affordable-housing FreezeMount Laurel filed papers yesterday with the Appellate Division of Superior Court requesting that an executive order freezing affordable-housing regulations for 90 days be upheld. The township filed its brief in response to an appellate panel’s Feb. 18 decision to temporarily stay Gov. Christie’s freeze. “Executive Order #12 is the Governor’s reasonable response to enabling the reasonable reform of our state’s affordable-housing laws,” Mount Laurel solicitor Chris Norman wrote. Christie’s Feb. 9 order created a task force to evaluate New Jersey’s affordable-housing laws and issue a report with recommendations in 90 days. The order barred the state Council on Affordable Housing from enforcing regulations during that period. February 26, 2010
New Rochelle Development would Include Affordable Homes, Upscale FixturesA planned downtown development, if built, would achieve two firsts in this city. It would be the first to set aside 10 percent of units as affordable housing under a four-year-old city law, and the first where the city would control what fixtures are put inside each residence. Equity Land Developers wants to build a four-story, 30-unit condominium building on Burling Lane, including three affordable housing units. Under a 2006 city housing law, developers building more than 10 units must make 10 percent of the residential square footage affordable housing, or make payments to the city instead. February 26, 2010
NY—Make Room for People Who Need Rent SubsidiesA recent federal housing discrimination settlement in Rockland helps one agency continue to provide appropriate housing for people with mental illness and disabilities. But the heart of the dispute between the affordable housing group Loeb House and the owners of a Garnerville apartment complex — whether a landlord can treat a tenant’s source of income differently if it comes from a subsidy — needs more attention. February 26, 2010
WY—Rental Rehabilitation Program to Improve Sub-standard HousingCasper’s City Council recently approved a Rental Rehabilitation Program that will help landlords make needed improvements to their properties. The council has set aside $100,000 of its annual allocation of U.S. Department of Housing & Urban Development (HUD) Community Development Block Grant (CDBG) funds to assist landlords with improvements in their rental properties. The program will provide loans to property owners that desire to rehabilitate their rental properties. February 26, 2010
HUD RELEASES GROUNDBREAKING STUDY ON COSTS OF FIRST-TIME HOMELESSNESS FOR INDIVIDUALS AND FAMILIES February 26, 2010
HUD CHARGES PUERTO RICO CONDO DEVELOPER WITH DISCRIMINATING AGAINST HOMEOWNER WITH DISABILITIESThe U.S. Department of Housing and Urban Development today announced that it is charging a San Juan, PR, housing developer with violating the Fair Housing Act by allegedly denying a homeowner with disabilities an accessible parking space close to her home, even though the woman can only walk very short distances. HUD’s charge further alleges that the developer, HAL Development Corporation (HAL), offered her the use of a handicapped parking space on a first-come, first-served basis; an option that was unacceptable, given the homeowner’s mobility limitations. The Fair Housing Act makes it unlawful to refuse to make reasonable accommodations when they are needed to enable persons with disabilities to fully use and enjoy their home. February 25, 2010
DONOVAN ANNOUNCES $26.5 MILLION IN “SWEAT EQUITY” GRANTSThe U.S. Department of Housing and Urban Development today awarded $26.5 million in “sweat equity” grants to produce at least 1,500 affordable homes for low-income individuals and families. Funded through HUD’s Self-Help Homeownership Opportunity Program (SHOP), the funding awarded today, along with the labor contributed by these households, will significantly lower the cost of homeownership. “These families will become homeowners not only because of our grants, but because they’ve devoted their own sweat and labor to their American Dream,” said Mercedes M. Márquez, HUD’s Assistant Secretary for Community Planning and Development. “Our job is to support sustainable homeownership and these self-help programs do exactly that.” February 25, 2010
TED TOZER SWORN IN AS PRESIDENT OF THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATIONTed Tozer was sworn in today as the President of the Government National Mortgage Association (Ginnie Mae). Tozer will be responsible for ensuring Ginnie Mae safely guarantees the principal and interest payments on mortgage-backed securities (MBS) backed by loans insured or guaranteed by the FHA, VA, HUD’s Office of Public and Indian Housing, and the USDA’s Rural Development Housing & Community Facilities Programs. February 25, 2010
Hedge Fund Moves on Stuyvesant Town and Peter Cooper VillageA hedge fund that has acquired a significant portion of the debt on the troubled Stuyvesant Town and Peter Cooper Village complexes in Manhattan moved in court this week to take control of them. The move is expected to complicate the already byzantine political and financial situation surrounding the largest apartment complexes in Manhattan, and to send tremors though 25,000 tenants worried about the future. Stuyvesant Town and Peter Cooper Village were bought by a partnership of Tishman Speyer Properties and BlackRock Realty in 2006 for a record $5.4 billion. But the owners defaulted on their $3 billion mortgage in January and have since agreed to turn the properties, long an affordable oasis for working- and middle-class tenants, over to lenders. February 25, 2010
Economists Surprised as New-home Sales Fall to Lowest Level in Nearly 50 YearsSales of newly built homes unexpectedly plummeted in January to their lowest level in nearly five decades, providing more evidence of the housing market’s fragility. Purchases of new single-family homes dropped 11.2 percent in January from December to a seasonally adjusted annual rate of 309,000, the Commerce Department reported Wednesday. Sales fell in every region except the Midwest, and the raw number of new homes on the market rose for the first time in nearly three years. February 25, 2010
Freddie Mac Posts Loss, but Says Federal Aid Not Needed for NowFreddie Mac, one of the two big mortgage finance companies taken over by the government, said Wednesday that it’s still losing billions of dollars but has received enough taxpayer assistance that it doesn’t need any more help for now. The McLean-based company reported that it lost $7.8 billion ($2.39 a share) in the final three months of last year, but said that for the third consecutive quarter, it would not require another infusion of government aid. Over the past year and a half, Freddie Mac has received $51 billion in federal support. February 25, 2010
Housing Discrimination Suit SettledThe U.S. Justice Department has settled its lawsuit alleging that 21 multi-family housing complexes in Tennessee discriminated on the basis of disability. The suit had been filed against the owners and developers involved in the design and construction of the complexes.The settlement must be approved by the U.S. District Court in Nashville. February 25, 2010
Holland, MI—Aging in Place: Housing Key Element to Prepare for Older PopulationNow is the time to adapt housing for the needs of an aging population. Many communities are already behind in the complex planning process, which includes everything from zoning to transportation to public safety. “Very few communities were thinking about this demographic shift because it wasn’t on people’s radar,” said Irene Garnett, COO of Partners for Livable Communities. “What we’re really hoping is that communities can start to set themselves up so that anybody can age in place, no matter what their income.” February 25, 2010
Hartford Courant Makes Millions From Mandatory Foreclosure AdvertisingVictims of foreclosure in Central Connecticut are required to pay The Hartford Courant at least twice as much for foreclosure ads as what real estate agents are charged for similarly sized ads. Real estate attorneys who handle foreclosures told me this week that homeowners or banks pay $1,441.20 to $2,600 for each foreclosure ad that is published on two Sundays in The Courant’s Real Estate section. Windsor Atty. Kevin Deneen said he paid $2,600 for his ad while Hartford lawyer Patrick Rosenberger said he paid the smaller amount and the smaller ad. February 25, 2010
Warning Issued on Foreclosure ScamsStruggling homeowners on the verge of foreclosure are being warned by the state Attorney General’s Office of the latest mortgage-relief scam known as “forensic loan audits.” Forensic loan audits are what state Attorney General Jerry Brown calls “phony mortgage relief services” that charge upfront fees for a forensic review of loans but will never lead to lowered monthly payments or loan principle.California is a minefield for scams, because it accounted for 22 percent of the nation’s 632,573 foreclosures in 2009. The metropolitan Stockton area has ranked at or near the top of the nation in foreclosure filings since the housing bubble burst in 2007. February 25, 2010
City Obligated to Release Funds for Public HousingThe Galveston City Council should allow Galveston Housing Authority to spend $25 million to rebuild public housing destroyed by Hurricane Ike. Beyond that, the council also should make a statement that the city intends to comply with the Fair Housing Act. If you’re just tuning in, the council already authorized the $25 million for public housing. It’s being asked today to release the conditions it attached to the disbursement of those funds. In authorizing the money, the council said the housing authority must get approval of its plans from the Planning Commission. The plans were approved unanimously on Feb. 16. February 25, 2010
Doyle Approves “Lock Out Abusers” Act to Protect Victims of ViolenceOn Feb. 11 Gov. Jim Doyle signed the Lock Out Abusers Act, which keeps perpetrators of domestic abuse from re-entering their victims homes by requiring a lock change on victims’ doors within 48 hours. This law helps victims of domestic and sexual abuse, as well as victims of sexual assault and stalking. It is often difficult to obtain safety in your own home if you are a victim of domestic violence, because there are limited places to go. This law, with written legal documentation, will help victims create a safe haven in their homes again. February 25, 2010
Freddie Mac Loses $7.8B in 4Q, Will Need more Taxpayer CashFreddie Mac(FRE) lost $7.8 billion in the final three months last year, but the mortgage finance company didn’t need a federal cash infusion for the third quarter in a row. Freddie Mac, which has been controlled by federal regulators since September 2008, lost $2.39 a share, the company said Wednesday. The loss included $1.3 billion in dividends paid to the Treasury Department, which has an almost 80% stake in the company, based in McLean, Va. The results were a marked improvement over the fourth quarter 2008, when Freddie lost $23.9 billion, or $7.37 a share. February 24, 2010
New-home Sales Drop to Record Low in JanuarySales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades. The Commerce Department reported Wednesday that new home sales dropped 11.2% last month from December, to a seasonally adjusted annual sales pace of 309,000 units, lowest level on records going back nearly a half century. The big drop was a surprise to economists who had expected sales would rise about 5% over December’s pace. February 24, 2010
Landlords’ Convictions Overturned in Deaths of 2 FirefightersA Bronx judge on Tuesday overturned the convictions of the owner and former owner of a building where two firefighters leapt to their deaths from a fourth-floor window to escape advancing flames. A jury convicted the defendants of criminally negligent homicide and reckless endangerment a year ago; prosecutors had argued that they knew about the illegal partitions that had turned the apartment building into a dangerous maze that helped disorient the firefighters as the flames quickly spread. February 24, 2010
Treasury Secretary Backs Fannie, Freddie ReshapingTreasury Secretary Timothy F. Geithner on Tuesday told a congressional panel considering the future of Fannie Mae and Freddie Mac that the Obama administration would seek to keep in place aspects of the housing-finance system that have worked well during the past few decades as it overhauls the parts that did not. February 24, 2010
Obama Considers Changes to Mortgage PlanThe Obama administration is soon expected to unveil additional protections to ensure homeowners are treated fairly and consistently under its mortgage relief program. The policies, outlined in a draft Treasury Department document would address long-standing complaints from housing counselors. They have cited cases of lenders continuing with foreclosures while homeowners were being evaluated for help. That practice would be banned under the new rules. Government officials acknowledge treatment of homeowners has been a problem under the $75 billion mortgage relief effort. February 23, 2010
The Boy Who Cried Housing Recovery!Lowe’s reported a better-than-expected profit for the fourth quarter on Monday, and the nation’s second-largest home-improvement retailer indicated that 2010 would be a better year for the housing market. It’s tempting to dismiss more good news about the housing market as simply another head fake — “The boy who cried housing recovery!” But it might be finally time to say the market is slowly but surely getting better. February 23, 2010
Affordable Housing Faces a Shortfall as Contracts ExpireWith the current recession coming to an end, housing is still one of the main topics of discussion. In particular, affordable housing faces a serious shortfall in the next four years. Many existing Section 8 developments have government contracts that are approaching expiration, which allow the landlords to increase rent at market rate, forcing the poor and middle class to either stay and pay or go elsewhere. February 23, 2010
With ‘Make Way for Tomorrow,’ Criterion Honors Thy Mother, Father and a Fine Film“Make Way for Tomorrow” is an exceptional, wrenching American film that most Americans have never heard of, let alone seen. The frank, finely acted drama from director Leo McCarey was released at what could not have been a more timely moment: 1937, when the country was trying to claw its way out of the Great Depression and immersed in ongoing debate about the recently passed Social Security Act. Of course, it’s precisely that timeliness that may have worked against “Tomorrow’s” box office success. At such a historically trying moment, perhaps moviegoers weren’t motivated to watch what happens to an elderly couple who are forced to live apart, each with one of their burdened children, after a bank takes possession of their home. February 23, 2010
With City Loans, Homeowners go Green Now, Pay LaterPutting solar or other green upgrades on homes and businesses is getting less painful in more cities that are rapidly launching programs to enable owners to pay back upfront costs over years. The programs let property owners borrow money for upgrades, then pay it back over up to 20 years as a special assessment on property tax bills. February 22, 2010
First-time Buyer? More $100,000 Green Homes are AvailableIf you want a new green home but are tight on cash, good news. The number of affordable, energy-efficient modular homes continues to increase as Pennsylvania-based builder Excel Homes offers a new line aimed at first-time buyers. The homes in its “Starting Line Up Series” are targeted to be sold for under $100,000, and depending on region, for as low as $60,000. They have less than 1,000 square feet, but with vaulted ceilings, sunken living rooms and hardwood floors, Excel Homes says they have all the style of larger homes. February 22, 2010
After Years of Poor Conditions, a Night of Sudden RepairsThe residents of the Bedford-Stuyvesant Rehabs, a group of three buildings, said they had complained for years about poor conditions to their landlord, the New York City Housing Authority. They had scheduled a press conference on Thursday to air their grievances and urge the agency to make fixes.Then, the night before, a curious thing happened: A squad of 8 to 12 repairmen from the housing authority descended on their buildings, the tenants said, patching holes and painting walls. February 22, 2010
Getting a Mortgage Can Be More Difficult if You Are Self-EmployedRita Lewis is 52 and has never owned a home. After renting for many years in Capitol Heights, she is ready to change that. She has about $50,000 in savings and a credit score above 700. But there is one thing working against her: She is self-employed. On paper, self-employed people can look risky to lenders, particularly now because of the credit crunch. In fact, they have never looked great on paper, partly because there is not enough of a paper trail on them. Lewis doesn’t get W-2 forms. Her income varies from year to year. Deduct business expenses from it, which she and other self-employed people can do, and it looks like she doesn’t make much money at all. February 22, 2010
How to Downsize Your Home with Less Hassle, HardshipWhen Edith Frank, 83, got an offer on her three-bedroom Florida house, there was a catch: The buyer wanted to close in two weeks. No way, she thought; she couldn’t possibly sort through a lifetime’s possessions so quickly. But at her daughter’s urging, she took the offer and started getting rid of most of her belongings. “It was extremely painful,” Frank said recently at Heritage Pointe of Teaneck, N.J., where she lives in a one-bedroom apartment. But her daughter advised her to look forward, not back. “My daughter told me, ‘You have to think about where you’re going and how lovely it’s going to be. Think about how the apartment is going to look.’” February 22, 2010
The Coming Foreclosure FloodHeartened by the recent rise in home prices? Don’t get too comfortable. Standard & Poor’s, the credit-rating agency that tells investors what mortgage-backed securities are worth, reports that the increase was just an illusion. It predicts the nation is about to see a deluge of new foreclosures that will drive real estate values back down. Blame the “shadow inventory” — nearly 1.8 million homes that are on the road to foreclosure but for all kinds of reasons haven’t gotten there yet. February 18, 2010
The Birth of Paul Williams in 1894 is Marked on this DateThe birth of Paul Williams in 1894 is marked on this date. He was an African-American architect. Williams worked for large architectural firms until he gained sufficient experience in all branches of his profession to open his own office. Williams’s firm took on projects both large and small; working in a mixture of architectural styles, much of his firm’s work was residential. Williams not only designed mansions for film stars such as Lon Chaney, Lucille Ball, and Tyrone Power, but also planned thousands of small houses in developments throughout California and Nevada. February 18, 2010
Mortgage Plan Helps only 12% of Borrowers Reduce PaymentsA year after the federal government announced a $75 billion plan to slow the rate of foreclosures, more than 1 million homeowners have gotten temporary reductions in their mortgage payments.But only 12% — about 116,000 — have received permanent modifications after a three-month trial period. Some economists say that’s too few to make a meaningful impact when millions of homeowners are in foreclosure or delinquent on their mortgages. February 18, 2010
Retirees Trade Work for Rent at Cash-Poor ParksThe life of a work-camper, volunteering in places like Falcon State Park in deep South Texas in return for free rent, is not without its bumps. But as Ms. Smith also quickly discovered, the rewards can be deep as well — like making cinnamon rolls as part of her job at the camp recreation center, where she and Mr. Smith are working as hosts through the end of March. An itinerant, footloose army of available and willing retirees in their 60s and 70s is marching through the American outback, looking to stretch retirement dollars by volunteering to work in parks, campgrounds and wildlife sanctuaries, usually in exchange for camping space. February 18, 2010
Espada’s Bill on Rent Limits Draws Criticism From Tenant GroupsPedro Espada Jr., the State Senate majority leader, introduced a housing bill on Wednesday that he described as a major lifeline to New Yorkers with lower incomes, and that a tenants’ group denounced as a “Trojan horse.” Mr. Espada’s bill would freeze rent for 10 years for an estimated 750,000 people. But critics say it would also allow landlords who had improperly removed apartments from rent stabilization to keep the units at market rates.”At a minimum, he’s trying to protect the landlords from having these apartments put back under rent regulation,” said Michael McKee, a tenants’ advocate. “It’s a landlord bill posing as a tenant bill.” February 18, 2010
Administration Pushed to Expand Foreclosure-prevention ProgramThe Obama administration is facing increasing pressure from lawmakers and housing advocates to retool its troubled mortgage relief program a year after its debut as the housing crisis continues to deepen and spreads to more creditworthy borrowers. The $75 billion program pays lenders to modify the mortgages of troubled borrowers, typically lowering their payments by about $500 a month. February 18, 2010
Federal Housing Finance Agency Proposes New Housing Goals for Fannie Mae and Freddie MacThe Federal Housing Finance Agency (FHFA) has sent a proposed rule to the Federal Register establishing new housing goals for Fannie Mae and Freddie Mac (the Enterprises). The Housing and Economic Recovery Act of 2008 (HERA) gave FHFA authority for establishing housing goals for the Enterprises. Previously the Department of Housing and Urban Development (HUD) set the Enterprises’ housing goals. February 17, 2010
DOUG CRISCITELLO SWORN IN AS CHIEF FINANCIAL OFFICER FOR THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTDoug Criscitello was sworn in Tuesday as the Chief Financial Officer at the U.S. Department of Housing and Urban Development. Criscitello is responsible for overseeing the financial management practices that ensure the U.S. Department of Housing and Urban Development meets the needs of the housing community. His duties include preparing and accounting for HUD’s budget, strategic and budget planning, and establishing and maintaining financial systems which process millions of transactions annually to support HUD projects. February 17, 2010
Utilities’ Transition to Smart Frid has Promise, but Potholes, tooFor Dennis Arfmann, the smart grid worked as it should. In 2008, as part of a pilot project with his utility, Xcel Energy, his home was equipped with technology to let him check via the Internet how much electricity he used. Arfmann, 58, an environmental lawyer in Boulder, Colo., discovered that an old refrigerator in his garage sucked huge amounts of juice, as did an electric dryer. He unplugged both. He replaced his lights and kitchen appliances with more energy-efficient ones. His electricity use fell more than 50%. February 17, 2010
Chicago Mission on Front Lines of Homeless CrisisOlive Branch Mission has been providing shelter to those in need since it opened its doors in 1867 to teach prostitutes to sew and to feed emancipated slaves. Today, it is on the front lines of the new homelessness crisis. Growing need, shrinking resources and a shift in the face of homelessness from male panhandlers to entire families are challenging Olive Branch in ways rarely seen in its long history, President and CEO David Bates says. February 16, 2010
Pipeline of Help to Haiti Comes from N.Y. CommunityWhen Valerie Placide arrived here last month from Haiti to join the staff of a Haitian community center, she had just endured the quake that transformed the job ahead. She recalls, in Haiti on Jan. 12, a noise that she at first thought was a bus, then screaming, collapsing walls and blood everywhere. Since that day, she says, “every time that I hear a noise, it takes me one second to identify it, but first I’m getting scared.” February 16, 2010
Simon Properties makes $10B Bid for General GrowthMall owner Simon Property Group (SPG) is making a $10 billion hostile bid to acquire its ailing rival, General Growth Properties (GGWPQ). The deal would allow General Growth, the No. 2 owner of shopping centers, to emerge from Chapter 11 bankruptcy protection. General Growth filed for bankruptcy last year after buckling under the weight of billions in debt it racked up during a massive expansion effort fueled by cheap credit. General Growth’s best known centers include the Glendale Galleria in Southern California and the South Street Seaport in Manhattan. February 16, 2010
U.S. Looks to Reluctant Foreign Investors to Help Fund the Housing MarketAs the U.S. housing market boomed in the past decade and fueled a bull market in mortgage investments, Norway’s government-owned fund went along for the ride — and the fall. After that fund recorded its worst-ever year in 2008, managers cited investments backed by U.S. mortgages as a key culprit and began to cut back. Now, U.S. officials are looking to foreign government funds again. The Federal Reserve is scheduled at the end of March to halt its purchases of mortgage-backed securities, a move that could drive up the low interest rates that have helped the housing market show new signs of life. February 16, 2010
Citi to let Distressed Homeowners Stay for 6 MonthsCitigroup Inc. plans to let homeowners on the verge of foreclosure stay in their homes for six months — if they turn over the deed to their property. Citi said Thursday it is launching the pilot program, dubbed “Foreclosure Alternatives,” this week in Texas, Florida, Illinois, Michigan, New Jersey and Ohio. Initially, about 1,000 homeowners are expected to participate. Citi may expand the program nationwide. February 12, 2010
Mixteco Women get Help Leaving Abusive PartnersA new educational outreach program that targets domestic abuse has helped hundreds of immigrant families confront the consequences of family violence, say the creators of a program designed for Ventura County’s Mixteco community. “We’re trying to help women leave abusive relationships and spreading the message of women’s rights to a marginalized population where neither English or Spanish is the spoken language,” said Sandy Young, who helped shape the program and is executive director of the Oxnard-based Mixteco Indigena Community Organizing Project, a nonprofit organization that assists indigenous farmworkers who are from the southern Mexican state of Oaxaca. February 9, 2010
Earl A. Barthé, a Master of Plaster, Dies at 87Mr. Barthé, who died on Jan. 11 at the age of 87, created cornices, friezes and ceiling medallions whose character and workmanship drew recognition from the Smithsonian and the National Endowment for the Arts. And when Hurricane Katrina flooded his home, shop and the city he loved, Mr. Barthé deployed his skills to help reassemble interiors, whether it was a Bourbon Street restaurant or a Ninth Ward shotgun shack. February 2, 2010
Want a Loan Modification? Bring DocumentsHomeowners applying for mortgage modifications will soon have to provide paperwork upfront showing that they qualify. The new documentation process is aimed at getting homeowners more rapidly into permanent modifications with lower monthly payments. To accept homeowners into the program, many lenders accepted borrowers by taking proof of income over the phone. Getting the documentation needed to get into a permanent modification then took time, lengthening the process.Under the change, homeowners will provide the documentation upfront. January 29, 2010
ADMINISTRATION UPDATES DOCUMENTATION COLLECTION PROCESS AND RELEASES GUIDANCE TO EXPEDITE PERMANENT MODIFICATIONSAs part of the Administration’s ongoing housing market stabilization plan, the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today released updated guidance for servicers participating in the Administration’s mortgage modification program. This guidance refines the documentation requirements in order to expedite conversions of current trial modifications to permanent ones. January 29, 2010
HUD AND CPSC ISSUE GUIDANCE ON IDENTIFYING PROBLEM DRYWALL IN HOMESThe U.S. Department of Housing and Urban Development and the U.S. Consumer Product Safety Commission (CPSC) today issued guidance on how to identify the presence of metal corrosion, as well as other indicators of problem drywall in homes. The guidance takes into account visual signs of metal corrosion, evidence of drywall installation in the relevant time period, and the identification of other corroborating evidence or characteristics. HUD and CPSC’s two-step guidance requires a visual inspection that must show blackening of copper electrical wiring and/or air conditioning evaporator coils; and the installation of new drywall (for new construction or renovations) between 2001 and 2008. January 29, 2010
Landlord Faces Lawsuit for HarassmentState Attorney General Andrew M. Cuomo announced Thursday that he intends to sue a major New York landlord that he says harassed hundreds of tenants in rent-regulated apartments in Queens and Manhattan in a systematic effort to force their departure to create vacancies for higher-paying tenants.The landlord, Vantage Properties, routinely filed eviction notices and other legal actions against working-class and immigrant families in tenements that the company had recently acquired to generate “substantial tenant turnover,” investigators and tenant advocates said. But most of the legal notices, the attorney general said in a letter to Vantage, contained “deceptive and misleading representations.” Investigators said the majority of those notices were ev January 29, 2010
Home Prices Decline a Bit from October to NovemberHome prices slid in November, raising questions about whether the housing recovery is robust enough to maintain a sustained turnaround. From October to November, home prices fell 0.2% after declining 0.1% in October, according to a report Tuesday by Standard & Poor’s/Case-Shiller’s home price index. Only five of the 20 metro areas tracked by the index saw price increases for the month.On an annual basis, prices were 5.3% lower in November than in November 2008. Prices were the same as in late 2003. January 27, 2010
Ruling Could Mean Lower Rents for 300,000To most renters in New York City, it sounds like a modest, even enviable, rent increase: Pay an additional $45 if your monthly rent happened to be less than $1,000 and you had been living in the same apartment for more than six years. But to the City Council, and advocates for New York’s lower-paying tenants, the increase issued by the city’s Rent Guidelines Board in 2008 amounted to what they called a “poor tax.” And in a ruling last week, Justice Emily Jane Goodman of State Supreme Court in Manhattan agreed. Should the ruling stand — the city plans to appeal it — some 300,000 rent-stabilized tenants could receive rebates and small reductions in their rent. January 27, 2010
James O’Keefe Charged in Alleged Plot to Bug Senator Mary Landrieu’s OfficeThe conservative young filmmaker whose undercover sting damaged a liberal activist group last year faces federal criminal charges in an alleged plot to bug the New Orleans office of Sen. Mary Landrieu (D-La.). O’Keefe, 25, became a conservative hero last year after he and fellow activist Hannah Giles secretly videotaped several regional offices of the Association of Community Organizations for Reform Now (ACORN) while posting as a pimp and a prostitute. O’Keefe’s videos showed ACORN staffers appearing to offer them housing help and advice on concealing their purported prostitution business. January 27, 2010
Housing Recovery could take a Decade, Economists WarnEven as the housing market shows signs of improvement, including in new data released Tuesday, economists warn that it could take up to a decade for many homeowners to regain equity in their homes, while some people in the hardest-hit regions of the country may not see a recovery during their lifetime. January 27, 2010
HUD Fines Timonium Broker Over AdsGreat Oak Lending Partners, a Timonium broker, is being fined $11,000 for what U.S. officials describe as misleading advertising about Federal Housing Administration mortgages. The Department of Housing and Urban Development, which oversees FHA, said this week that its mortgagee review board found several problems with Great Oak Lending’s direct-mail ads. In addition to the fine, the company will have to forward its advertising to the FHA for monthly reviews during a six-month probation, HUD said. Great Oak Lending Partners can appeal the decision. January 27, 2010
Housing Authority of New Orleans Expects to Meet Deadline for using Federal Stimulus MoneyAfter approving $11.5 million in contracts Tuesday, Housing Authority of New Orleans receiver David Gilmore said his staff would next month achieve a task that critics thought impossible: allocating all of its federal stimulus money before a crucial March deadline. All stimulus money must be obligated by March 5 or returned. So Gilmore, his 12 person fix-it team and key HANO employees were under the gun from the very day team members stepped into the building to start work in November. January 27, 2010
FHA WITHDRAWS THREE LENDERS, SUSPENDS A FOURTHThe Federal Housing Administration’s Mortgagee Review Board (MRB) today announced that it is immediately and permanently withdrawing the FHA approval of three mortgage lenders and is suspending a fourth. The MRB withdrew the FHA approval of Strategic Mortgage Corporation (Strategic), ProMortgage Inc., and Americare Investment Group Inc. (doing business as Premier Capital Lending. Additionally, the MRB has suspended the FHA approval of Home Mortgage, Inc. (HMI) of Burr Ridge, Illinois. “FHA takes its oversight role very seriously and will move swiftly and decisively to protect borrowers from unscrupulous lenders,” said FHA Commissioner David Stevens. “Any lender who refuses to comply with FHA requirements will simply no longer enjoy the privilege of participating in FHA programs.” January 26, 2010
FHA AND GINNIE MAE TAKE ACTION AGAINST TOPDOT MORTGAGEThe Federal Housing Administration’s Mortgagee Review Board (MRB) today immediately and permanently withdrew the FHA approval of Premium Capital Funding, LLC, a Jericho, New York-based lender doing business as TopDot Mortgage. Today’s action prevents TopDot from participating in FHA programs and seeks a monetary penalty of $674,000. In addition, the Government National Mortgage Association (Ginnie Mae) is defaulting and terminating TopDot as an issuer in its Mortgage-Backed Securities (MBS) program and is ending the Company’s ability to continue to service Ginnie Mae securities. Servicing of TopDot’s $181.2 million dollar Ginnie Mae portfolio will be transferred to LoanCare Servicing Center, Inc. January 26, 2010
Haiti’s Homeless Plead for Tents After EarthquakeThe dusty soccer field lined with spacious tents is an oasis for earthquake survivors among Haiti’s homeless sheltering in acres (hectares) of squalid camps. Competition for the canvas homes has boiled into arguments and machete fights, a sign of the desperation felt by the hundreds of thousands of people without homes struggling for shelter in this wrecked city. Haiti’s president has asked the world for 200,000 tents and says he will sleep in one himself. Fenela Jacobs, 39, lives in a 4-by-4-meter (13-by-13-foot) abode provided by the Britain-based Islamic Relief Worldwide. She says the group offered her two tents for 21 survivors but she ended up putting everyone in one tent after people threatened to burn both down if she didn’t give a tent up. January 26, 2010
Charles Mathias, Former U.S. Senator, Dies at 87Charles McC. Mathias, a former United States senator from Maryland who as a liberal Republican clashed with the Nixon and Reagan administrations and who was called “the conscience of the Senate” by its Democratic leader, Mike Mansfield, died Monday at his home in Chevy Chase, Md. He was 87. Mr. Mathias, who was known as Mac, played a major role in drafting the 1964 Civil Rights Act as a subordinate to Republican leaders who provided the margin of victory in the House. He was a key supporter of later measures on voting and housing and of efforts to thwart Reagan administration efforts to roll back those victories. January 26, 2010
Existing-home Sales take a Big Fall in DecemberSales of previously owned homes took their biggest tumble in at least 40 years last month as the impact of a buying spree spurred by a tax credit for first-time buyers waned, according to industry data released Monday. Those who rushed to meet the original November deadline to take advantage of an $8,000 tax credit for first-time home buyers caused a surge in sales earlier in 2009, but left the market wobbly by the end of the year. First-time buyers, who made up more than 50 percent of sales earlier last year, represented just 43 percent of the market in December. The shift also resulted in fewer sales of lower-cost homes, which first-time buyers typically seek. January 26, 2010
Foreclosure Relief Program Riddled with FlawsMillions of Americans who are struggling to save their homes from foreclosure are trapped in a labyrinth of disappointment and misinformation created by the very institutions they’ve been told are trying to help them. Ten months into the government’s third program in two years to stop a record wave of foreclosures, homeowners, housing counselors, consumer advocates and attorneys working with borrowers report that the latest effort is falling far short of its goal. In many cases, lenders are moving to foreclose even after homeowners get approved for loan modification, housing counselors and attorneys say. January 26, 2010
FHA TO PROVIDE EARLY RELIEF TO STRUGGLING HOMEOWNERSHomeowners with FHA-insured mortgage loans who are experiencing financial hardship are now eligible for loss mitigation assistance before they fall behind on their mortgage payments. Previously, these homeowners were not eligible for such assistance until after they had missed payments.The Helping Families Save Their Home Act of 2009 signed into law by President Obama expanded FHA’s authority to use its loss mitigation tools to assist FHA borrowers avoid foreclosure to include those facing “imminent default” as defined by the Secretary. FHA today issued guidance to FHA-approved loan servicers on how to assist these FHA borrowers. January 25, 2010
Huge Housing Complex in N.Y. Returned to Creditors January 25, 2010
2010: The Year of the Renter?Scores of stalled construction projects can be found scattered around New York City, but one category of building that doesn’t seem to have been sidetracked by the recession is the luxury apartment rental. At least 16 new rental buildings are expected to open in Manhattan in coming months, ranging from small buildings to 500-unit high-rises, for a total of more than 3,500 apartments. Brooklyn will get an additional 3,500 new apartments as well, including units in some buildings that opened in late 2009. While 7,000 new apartments is a relatively small number for a city where 70 percent of 8 million residents live in rentals, many of the new buildings are concentrated in just three neighborhoods: Manhattan’s Hudson Yards area, downtown Brooklyn and Williamsburg. January 25, 2010
Stakes are High as Government Plans Exit from Mortgage MarketsFor more than a year, the government pulled out the stops to revive home buying by driving down mortgage rates. Now, whether the housing market is ready or not, the government is pulling out. The wind-down of federal support for mortgage rates, set to end in two months, is a momentous test of whether the Obama administration and the Federal Reserve have succeeded in jump-starting the housing market and ensuring it can hold its own. The stakes for the economy are massive: If the market again falls into a tailspin, homeowners could face another wave of trouble, and it would deal a body blow to President Obama’s efforts to get the economy on track. January 25, 2010
Homeowners Have More than Interest to Consider at Tax TimeInterest rates gain the most attention from mortgage borrowers, but two other expenses, points and mortgage insurance premiums, are significant, as well. And both may come into play as you fill out your tax returns this year. When you shop for a mortgage loan — which is something every potential home buyer should do — you will be given a lot of information. Loan points are among the items that must be listed on the good-faith estimate of closing costs given to you before you commit to the loan. The GFE attempts to explain — in simple English — all of the terms and conditions of the mortgage loan you are considering. January 25, 2010
Rep. Barney Frank Calls for Abolishing Fannie Mae, Freddie MacA top lawmaker on Capitol Hill is calling for the elimination of mortgage finance companies Fannie Mae and Freddie Mac and the establishment of a new system to provide money for U.S. home loans.Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee, said Friday he supports replacing the two companies entirely. “I believe this committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,” Frank said at a hearing on executive compensation issues. “That’s the approach, rather than the piecemeal one.” January 25, 2010
New Mortgage Rules Curb Closing-cost SurprisesBuying a home should be a joyful experience, but all too often, the mortgage settlement process leaves consumers confused, angry and paying more than they anticipated. The reason? Closing costs and fees that are significantly higher than the lender’s original estimates. Borrowers find themselves faced with two unappealing choices: Pony up or walk away and start searching for another house. January 25, 2010
Home Buyer Tax Credits: Frequently Asked QuestionsIf you’re in the market for a home, the world is your oyster. Interest rates are at record lows. Housing prices in many parts of the country are still depressed. And you may be eligible for a generous tax break, even if the home you buy isn’t your first. On Nov. 6, President Obama signed legislation that provides a $6,500 tax credit for some current homeowners who buy another home. The law also extends the $8,000 tax credit for first-time home buyers, scheduled to expire Nov. 30, until next spring. November 24, 2009
Housing Bust Halts Growing SuburbsThe recession and housing collapse have halted four decades of double-digit growth for nearly half of the nation’s biggest rapidly expanding suburbs. Twenty-four of the 53 cities of 100,000 or more that grew by at least 10% every decade since 1970 lost population in the last two years. Fifteen are likely to end the decade with less than a 10% gain in population, largely because of recent losses. Among them: Bellevue, Wash., near Seattle; Coral Springs, Fla., near Fort Lauderdale; Fullerton, Calif., near Los Angeles; and Lakewood, Colo., near Denver. November 20, 2009
Mortgage Delinquencies Hit Record-high in 3QMore than 14% of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of September, a record-high for the ninth straight quarter and a problem that could threaten the U.S. economic recovery. The Mortgage Bankers Association’s report Thursday adds to fears that the housing market and broader recovery could be thwarted by the continuing surge in home loan defaults, especially as the unemployment rate keeps rising. Lost jobs, rather than the shady loans made during the housing boom, are now the main reason homeowners fall behind on their mortgages. November 20, 2009
Another Wave of Foreclosures LoomsA second wave of foreclosures is poised to hit the market, potentially undermining housing recovery efforts as more homes add to the glut of inventory and drive down prices. These homes largely represent loans that are delinquent but have not yet resulted in foreclosure sales. About 7 million properties are destined to go into foreclosure, according to a September study by Amherst Securities Group, compared with 1.27 million properties in early 2005. “There’s a huge supply out there,” says Dean Baker, co-director of the Center for Economic and Policy Research in Washington, D.C. “The foreclosure process can take a long time. When it comes to (the housing recovery), we’re not home free.” November 20, 2009
Fire Reveals Illegal Homes Hide in Plain SightFor at least two years before a fire killed three men in an illegally divided house next door, Diane Ross and her family lived in an illegal apartment at 42-38 65th Street in Woodside, Queens. Their life there — in a basement divided into one apartment and four single-room units, with six others upstairs, all crammed into a two-family house — seemed to them to be business as usual, and attracted no special notice. Neither the tenants nor their landlord, who said he charged $107 a month for each room, tried to hide it. Con Edison workers entered the house in 2007 to make repairs. The city taxed the house as a three-family home, even though it was built for two. And the Ross family and their landlord say that city agencies visited their apartment and helped pay their rent for about two years — until Nov. 7, when the fatal blaze swept through the basement next door, killing the three men. November 20, 2009
With F.H.A. Help, Easy Loans in Expensive AreasIn January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston. A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary. “It was kind of crazy we could get this big a loan,” said Mr. Rowland, 27. “If a government official came out here, I would slap him a high-five.” November 20, 2009
Ruling on Katrina Flooding Favors HomeownersA federal judge found Wednesday evening that poor maintenance of a major navigation channel by the Army Corps of Engineers led to some of the worst flooding after Hurricane Katrina. The ruling was a major victory for homeowners who suffered damage in the aftermath of the storm. It was the first time that the government has been held liable for any of the flooding that inundated the New Orleans area after Aug. 29, 2005, vindicating the long-held contention of many in the region that the flooding was far more than an act of God. November 19, 2009
Flush in a Recession, a Bronx Landlord Is Ready to ShopIn the feudal world of Bronx real estate, where a handful of landlords claim ownership to its skyline of cramped apartments, Jacob Selechnik is most certainly royalty. He has been buying buildings in the city’s poorest borough for nearly 50 years, amassing an empire that reached a peak of more than 7,000 apartments. Brokers estimate his net worth at more than half a billion dollars. What’s more, Mr. Selechnik, who has $300 million in proceeds from recent sales and uncommon good will from banks, sees the hemorrhaging real estate market as an open season for bargain hunting. November 19, 2009
Philadelphia Gives Homeowners a Way to Stay PutChristopher Hall stepped tentatively through the entranceway of City Hall Courtroom 676 and took his place among dozens of others confronting foreclosure purgatory. His hopes all but extinguished, he fully expected the morning to end with a final indignity: He would sign over the deed to his house — his grandfather’s two-story row house; the only house in which he had ever lived; the house where he had raised three children. A union roofer, Mr. Hall, 42, had not worked since August 2008, when the contractor that employed him as a foreman went broke and laid off more than 40 people. He had not made a mortgage payment in more than a year, and his lender, Bank of America, was threatening to auction off his house through the sheriff’s office. November 18, 2009
Counseling Helps Borrowers Avoid Foreclosure, Study FindsTroubled homeowners who receive housing counseling are 60 percent more likely to avoid foreclosure and have their mortgage payments lowered significantly than borrowers who navigate the process themselves, according to a study to be released Wednesday. The study, by the D.C.-based Urban Institute, examines the effectiveness of the government-funded National Foreclosure Mitigation Counseling program, established in late 2007 to counter growing foreclosure rates. More than $300 million has been awarded to 1,700 nonprofit housing-counseling agencies since December 2007 to hire staff and conduct outreach to troubled borrowers. November 18, 2009
Banks, Collection Firms Pursue Claims after Homes ForeclosedHank Lane figured that when he lost his Groton home to foreclosure in 2008, at least his long-running financial nightmare had come to an end. He was wrong. The $550,000 that Lane’s home fetched at auction covered most of his $650,000 first mortgage, but none of his $200,000 second mortgage - and the second lender wants its money. “I thought this was finally over, but it’s one of these things where there’s no end in sight,” said Lane, a 65-year-old biotech executive who fell on hard times after losing his job and coming down with cancer. Massachusetts homeowners who’ve lost properties to the state’s foreclosure crisis are finding that their troubles don’t necessarily end when the auctioneer’s gavel falls. November 2, 2009
Retrofitting Suburbia Means Rediscovering the PeopleWhen big cities came to be recognized as congested, dirty and unhealthy, the car came to the rescue. It carried city workers to the real-life scenes of “Leave It to Beaver” in suburban households across the country — and then carried the workers back to the city for their daily jobs. To Frank Lloyd Wright, the vision of the “horizontal city” included freestanding homes on individual plots, taking advantage of new technology — the automobile — to make better use of America’s abundant lands, says Anthony Flint in his new book, “Wrestling with Moses.” It was an attitude and philosophy shared by virtually all the modernist architects and architecture schools of the day. November 2, 2009
HUD TAKES ACTION AGAINST REVERSE MORTGAGE LENDER IN HAWAIIThe U.S. Department of Housing and Urban Development today announced that its Mortgagee Review Board (MRB) is proposing to permanently withdraw the HUD/FHA approval of Financial Mortgage USA, Inc., a Home Equity Conversion Mortgage (HECM or reverse mortgage) lender based in Honolulu, Hawaii. HUD’s MRB alleges the Company failed to implement an FHA-required quality control plan; separate its lending operations from those of its affiliated insurance company; conform to prudent lending practices; and properly provide borrowers with housing counseling services. Financial Mortgage USA (FMUSA) has 30 days to respond to the Board’s proposed withdrawal and seek a hearing before an Administrative Law Judge. November 2, 2009
Home Prices Rise, but Housing Market Still Faces ChallengesHome prices in major cities rose for a third consecutive month, but declining consumer confidence and a soon-to-expire tax credit for first-time home buyers could reverse the improving trend, economists said Tuesday. Home prices in major cities rose for a third consecutive month, but declining consumer confidence and a soon-to-expire tax credit for first-time home buyers could reverse the improving trend, economists said Tuesday. Seasonally adjusted home prices increased in August, following increases in July and June, according to the Standard & Poor’s/Case-Shiller 20-city index released Tuesday. Prices rose in 17 of the 20 metro areas, and 14 saw prices jump for the third month in a row. October 28, 2009
Cities, Volunteers Fight Blight Caused by Foreclosure CrisisCity workers are taking a hands-on approach, literally, to fight the blight caused by abandoned foreclosed houses. They are mowing lawns, trimming shrubs, boarding up windows and doors, replacing stolen fences and clearing out trash, then charging property owners for the work. The work stems from city ordinances in nearly every state to stop foreclosed properties from turning into eyesores that drag down property values and endanger neighborhoods, says James Brooks, program director for community development at the National League of Cities. Otherwise, the foreclosure crisis can undo decades of investment in neighborhoods, he says. “Cities are trying to get financial institutions to do this, but does that mean that the public works director also goes in with a lawn mower? Yes,” Brooks says. “Cities are doing that all over the place because, in some cases, they have to.” October 27, 2009
Nelson Says Senate to Extend, Reduce Homebuyer CreditSenate leaders are negotiating to extend and gradually reduce an $8,000 tax credit for first-time homebuyers through 2010, Senator Bill Nelson of Florida said. “We should be able to extend that later this week,” Nelson, a Democrat, told reporters traveling today with President Barack Obama on Air Force One to a speech in Jacksonville, Florida. Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus of Montana, both Democrats, may seek to add the homebuyers extension to legislation extending unemployment benefits that may be debated as early as this week, according to Regan Lachapelle, an aide to Reid. October 27, 2009
From No Home to Back Home on Broadway October 27, 2009
For Runaways on the Street, Sex Buys SurvivalShe ran away from her group home in Medford, Ore., and spent weeks sleeping in parks and under bridges. Finally, Nicole Clark, 14 years old, grew so desperate that she accepted a young man’s offer of a place to stay. The price would come later. They had sex, and he soon became her boyfriend. Then one day he threatened to kick her out if she did not have sex with several of his friends in exchange for money. She agreed, fearing she had no choice. “Where was I going to go?” said Nicole, now 17 and living here, just down the Interstate from Medford. That first exchange of money for sex led to a downward spiral of prostitution that lasted for 14 months, until she escaped last year from a pimp who she said often locked her in his garage apartment for months. October 27, 2009
Recession Drives Surge in Youth RunawaysDressed in soaked green pajamas, Betty Snyder, 14, huddled under a cold drizzle at the city park as several older boys decided what to do with her. Betty said she had run away from home a week earlier after a violent argument with her mother. Shivering and sullen-faced, she vowed that she was not going to sleep by herself again behind the hedges downtown, where older homeless men and methamphetamine addicts might find her. The boys were also runaways. But unlike them, Betty said, she had been reported missing to the police. That meant that if the boys let her stay overnight in their hidden tent encampment by the freeway, they risked being arrested for harboring a fugitive. October 27, 2009
Help Your Family, but Beware ‘Phantom Interest’Q: I plan to lend my son and daughter-in-law $100,000 to assist them in buying their first home, a condominium in Maryland. I have heard about a legal concept called “imputed interest” and don’t want to get caught in some kind of Internal Revenue Service trap. Exactly what is “imputed interest?” October 27, 2009
O’Malley Urging Mediation before ForeclosuresMore than a year after Maryland officials set out to quell the foreclosure crisis with some of the most aggressive prevention programs in the nation, the number of homeowners on the brink is again on the rise. “We’re not doing a heck of a lot better now than we were before,” Gov. Martin O’Malley said in a recent interview. “So we’ve got to try to do something different to try to get the numbers moving in a better direction.” The O’Malley administration is working on a new tactic: using mediators to ensure lenders are making a good-faith effort to renegotiate more affordable loan terms, and to ensure homeowners understand those terms. The governor, a Democrat, plans to introduce legislation requiring mediation in foreclosure cases when the General Assembly convenes in January. October 27, 2009
Stuyvesant Town Ruling Worries Tenants and Landlords AlikeTenants and landlords spent much of Thursday struggling to figure out what the state high court’s ruling on the future of Stuyvesant Town and Peter Cooper Village meant for all types of New Yorkers. Real estate moguls feared the news would cripple their industry, and tenants worried about their rents.Despite the lack of clarity, the ruling by the New York Court of Appeals had an immediate chilling effect on real estate in New York: Landlords questioned whether they could raise rents, and some even went so far as to cancel plans to buy more apartments in buildings with tax subsidies. October 23, 2009
Joy and Questions Among Residents of ComplexThomas Lim, 54, stood at an entrance to the Stuyvesant Town apartment complex on the East Side of Manhattan on Thursday afternoon, applauding. The state’s highest court, the Court of Appeals, ruled Thursday that the owners of Stuyvesant Town and Peter Cooper Village had wrongfully raised rents and deregulated thousands of apartments while receiving city tax breaks. A cluster of elected officials and others converged on the sidewalk a few feet away from Mr. Lim, but the main cause of his happiness was not political in nature. It was financial. Living in a rent-regulated apartment is the New York City equivalent of hitting the housing lotto: cheaper rents and better protections. October 23, 2009
Freddie Mac’s Secrecy Pacts Face Court TestOne year after the government took over and bailed out Freddie Mac, the giant mortgage finance company, federal regulators are blocking former employees from revealing information to investors who are suing the company for fraud, lawyers for shareholders say. The Treasury has propped up Freddie Mac with more than $50 billion in taxpayer money since the company nearly collapsed more than a year ago, and officials warn that the company will probably need additional billions in the months ahead. Federal prosecutors in Virginia and the Securities and Exchange Commission are already investigating whether the company misled investors about the risks it was taking with securities backed by subprime mortgages and no-document loans. October 23, 2009
White House Skeptical on Renewing Home Buyers’ CreditThe Obama administration is still considering whether to back extending a popular tax credit for first-time home buyers but is skeptical the government can afford the cost, Housing and Urban Development Secretary Shaun Donovan said Tuesday. The $8,000 tax credit, which will expire at the end of November, has boosted home sales in recent months, helping to revive a flagging housing market that had been a key factor driving the recession. Donovan told the Senate Banking Committee that while he was aware the program was popular with lawmakers, “At the same time, I am mindful that these proposals can be very expensive, especially at a time of significant budget deficits.” October 22, 2009
Mortgage Applications Drop again as Rates ClimbMortgage applications fell for a second week, led by a plunge in demand for home refinancing as interest rates climbed, an industry group said Wednesday. The Mortgage Bankers Association said rates on 30-year fixed-rate mortgages, the most widely used loan, remained above 5%, a level seen as a psychological tipping point, in the week ended Oct. 16. The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, fell 13.7% to its lowest point since the week ended Sept. 11. October 22, 2009
$4 Billion to go Toward ZMaking Houses GreenA Columbia-based national affordable-housing financier intends to funnel $4 billion in the next five years toward building and retrofitting homes that aren’t just affordable, but also green. Enterprise Community Partners, a nonprofit that raises money from corporations, foundations and government agencies, said Wednesday that it believes that investment can build or renovate 75,000 homes and apartments. At the same time, it challenged builders across the country to go green on all projects aimed at lower- and moderate-income residents. Increasing energy efficiency, improving indoor air quality and using environmentally friendly materials are cost-effective, the group said. October 22, 2009
CEG Kicks in on Furnace RepairsA donation of shareholder money from the parent of Maryland’s largest utility will help fix aging furnaces for some low-income Baltimore homeowners struggling to pay home heating costs.
Constellation Energy Group has partnered with Baltimore officials to donate $1 million to the Baltimore Community Foundation to replace or repair failing or broken heating systems over three years. The Baltimore Gas and Electric Co. Heating System Fund piggybacks on weatherization initiatives funded by federal stimulus dollars to install insulation, caulking around windows, water heater blankets and other steps to keep bills in check. October 22, 2009
Another Item for the Housing Authority of New Orleans’ Clean-up Team: An EditorialThe Obama administration’s team assigned to clean up corruption and mismanagement at the Housing Authority of New Orleans is expected to arrive by the end of the month. They’d better hurry up, before the list of HANO messes gets any longer. The latest worrisome additions are numerous no-bid deals the federal overseers of HANO granted to the Houston firm Mir Fox Rodriguez to run housing programs, including disaster assistance after Hurricane Katrina and more recently the agency’s Section 8 vouchers. The contracts, worth a combined $17 million, came as HANO declared emergencies to sidestep competitive bid processes. But the first of these contracts for Mir Fox, a $4.1-million deal to run the Katrina disaster housing program, was awarded in November 2008, more than three years after the storm. October 22, 2009
‘Double Bubble’ Means more Real Estate TroubleThat big whoosh you’re hearing is the air rushing out of a commercial real estate bubble. More than two years into the worst housing crisis in decades, commercial real estate is shaping up as the second half of what some are calling a “double bubble.” Owners of shopping malls, hotels, office space and apartment buildings — and the bankers who financed them — face a major crunch over the next two years as the mortgages on those properties start coming due. Much like homeowners who now owe more on their mortgage than their house is worth, many commercial property owners have seen the value of their properties plummet, increasing the risk of default on hundreds of billions in commercial real estate loans. October 22, 2009
Foreclosures Force Ex-Homeowners to Turn to SheltersThe first night after she surrendered her house to foreclosure, Sheri West endured the darkness in her Hyundai sedan. She parked in her old driveway, with her flower-print dresses and hats piled in boxes on the back seat, and three cherished houseplants on the floor. She used her backyard as a restroom. The second night, she stayed with a friend, and so it continued for more than a year: Ms. West — mother of three grown children, grandmother to six and great-grandmother to one — passed months on the couches of friends and relatives, and in the front seat of her car. But this fall, she exhausted all options. She had once owned and overseen a group home for homeless people. Now, she succumbed to that status herself, checking in to a shelter. October 19, 2009
Billionaire Wilbur Ross Helps in Economic RecoveryForeclosed homes, failed banks, and toxic assets produced during the current recession might look like a mountain of garbage to most people. But to billionaire investor Wilbur Ross, they are “a once-in-a-lifetime opportunity.” This year, Ross has emerged as one of the government’s closest allies in mopping up the mess resulting from the financial crisis. Earlier this month, his firm WL Ross partnered with a consortium of investors and paid $554 million to buy a pool of bad loans from failed Chicago bank Corus. And last May, he was part of a group that bought BankUnited, a failed Florida bank, for $900 million. October 19, 2009
Homebuilder Sentiment Index Falls in OctoberHomebuilders are growing less optimistic about their fortunes as a temporary tax credit for first-time homebuyers that boosted home sales this year nears its end. The National Association of Home Builders said Monday this month’s housing market index, which tracks industry confidence, slipped by one point to 18, the first dip since June when the reading fell to 15. Builders also are feeling less positive about the likelihood of sales between now and the next six months and said home-shopper foot traffic has softened since September. October 19, 2009
Can’t Sell? You May Still Be Able to Save Your Tax Exemption.Q: After living in the Washington area my entire life (I’m now 68), my wife and I retired to another state in January 2007. We tried to sell our Virginia condo while purchasing a new home where we now live. The D.C. market was in bad shape, and we were unable to sell. We decided to rent our condo until the market settled. Unfortunately, this still hasn’t happened. October 19, 2009
Beth CourtThis series explores how a block of eight homes in Moreno Valley, Calif., about 60 miles from Los Angeles, has been reshaped by the housing bust and recession. October 19, 2009
Controversial Wind Farm to Build Turbine Plant in USACompanies planning a controversial wind farm in Texas that would seek millions in federal stimulus funds said Tuesday that they’d build a U.S. plant to make wind turbines and employ 1,000 people.The news follows criticism that the farm planned to use Chinese-made turbines and that too many federal stimulus dollars have gone to foreign-owned wind firms. The companies didn’t say when the plant — to be one of the biggest in the U.S. for wind turbines — would be built or whether it would supply turbines to the Texas farm. Sen. Charles Schumer, D-N.Y., has asked the Obama administration to block federal stimulus funds from going to the Texas farm unless it uses U.S.-made turbines. October 18, 2009
41 People Charged in Mortgage FraudA mortgage fraud crackdown announced Thursday resulted in the arrests of dozens of people, including six lawyers, seven loan officers and three mortgage brokers in four states. Thirty-one people were arrested in New York, Pennsylvania, Ohio and North Carolina. They were among 41 people charged with engaging in mortgage fraud scams that defrauded lenders out of more than $64 million in home mortgage loans. Of the 10 other defendants, one was expected to surrender later Thursday, four were previously charged and five remained at large. October 16, 2009
HUD CHARGES OWNERS OF MICHIGAN RESIDENTIAL MOTEL WITH REFUSING TO RENT TO WOMENThe U.S. Department of Housing and Urban Development today announced that it is charging David and Yvonne Parker, the owners of Kirtwood Motel, a residential motel in Temperance, Michigan, with discriminating against women. The HUD charge alleges that Mr. Parker refused to rent to females, limiting the housing to men-only. The Fair Housing Act prohibits housing discrimination based on a person’s sex. October 16, 2009
WORK BEGINS AT NEW ORLEANS’ B.W. COOPER COMMUNITYU. S. Housing and Urban Development Secretary Shaun Donovan grabbed a ceremonial shovel today for the second time in two months — celebrating another groundbreaking and redevelopment of a Housing Authority of New Orleans (HANO) public housing site. Donovan joined Senator Mary Landrieu, Mayor Ray Nagin, other city leaders, public housing officials and resident leaders to mark the start of construction on the $142 million first phase of the B.W. Cooper Community — almost two months after joining many of the same officials at the groundbreaking of the Lafitte Community. B.W. Cooper is the last of New Orleans’ “Big Four” public housing communities to start construction. October 16, 2009
Insurers Dropping Chinese Drywall PoliciesJames and Maria Ivory’s dreams of a relaxing retirement on Florida’s Gulf Coast were put on hold when they discovered their new home had been built with Chinese drywall that emits sulfuric fumes and corrodes pipes. It got worse when they asked their insurer for help — not only was their claim denied, but they’ve been told their entire policy won’t be renewed. Thousands of homeowners nationwide who bought new houses constructed from the defective building materials are finding their hopes dashed, their lives in limbo. And experts warn that cases like the Ivorys’, in which insurers drop policies or send notices of non-renewal based on the presence of Chinese drywall, will become rampant as insurance companies process the hundreds of claims currently in the pipeline. October 16, 2009
Obama Meets Critics in New OrleansPresident Obama, making his first visit here Thursday as president, confronted the impatience and frustration of a city still struggling to recover and rebuild four years after Hurricane Katrina and the resulting flooding ravaged the region. Mr. Obama flew here for a four-hour stop to promote progress in clearing up bureaucratic delays, pumping more aid to the region and putting people back in homes. Deflecting criticism that he has not paid enough attention to the area, Mr. Obama acknowledged more work must be done and vowed that he would “not forget about New Orleans.” October 16, 2009
Foreclosures in 3rd Quarter up Nearly 23% from 2008Foreclosures are continuing at a rapid-fire pace that may accelerate in 2010, driven by rising unemployment and more adjustable-rate loans resetting to higher monthly payments. Foreclosure filings were reported on 937,840 properties in the third quarter, an increase of nearly 23% from the third quarter of 2008, according to a report today by RealtyTrac. The number of properties in some stage of foreclosure was 5% higher than in the second quarter. One in every 136 U.S. housing units received a foreclosure filing during the quarter, the highest quarterly foreclosure rate since RealtyTrac’s reports began in the first quarter of 2005. October 15, 2009
Housing Counselors Try to Help Prevent Foreclosures, Ease StressCarol Robinson looks confused. A housing counselor at Home Free USA, she just found out that a client — an elderly man whose income dropped following heart surgery — was denied a modification to his mortgage. Undeterred, Robinson calls the homeowner and the lender to find out why. Turns out someone made a mistake, and it wasn’t denied after all. The calls take nearly an hour. Robinson hangs up the phone with a sigh. For housing counselors aiding the legions of homeowners seeking modifications from their banks, this is what it’s like to be on the front lines. October 15, 2009
Fed Officials Disagreed on Ending Mortgage Rate AidUncertain about the strength of the budding recovery, Federal Reserve policymakers last month were conflicted over whether to expand or cut back a program intended to drive down mortgage rates and prop up the housing market, according to a document released Wednesday. In the end, Fed Chairman Ben Bernanke and his colleagues agreed to slow down the pace of a $1.25 trillion program to buy mortgage securities from Fannie Mae and Freddie Mac. Instead of wrapping up the purchases by the end of this year, the Fed said it would stretch it out through the end of March. The purchases push mortgage rates down by providing more cash for lenders. October 15, 2009
As City Adds Housing for Poor, Market Subtracts ItMayor Michael R. Bloomberg is closing in on a milestone: building or preserving 165,000 city-financed apartments and houses for low-, moderate- and middle-income families, the goal of a $7.5 billion housing plan he announced in 2002 and expanded in 2005. It has already financed the creation or preservation of 94,000 units, including 72,000 for low-income households, city officials say. But those efforts have been overwhelmed by a far larger number — the 200,000 apartments affordable to low-income renters that New York City has lost over all, because of market forces, during the mayor’s tenure. October 15, 2009
Man Charged in Scheme to Sell Harlem PropertyIn late 2007, Henry Vargas began shopping what he said was his 60 percent stake in a plum piece of Harlem real estate.He wooed potential buyers with the name of his father, Victor — a well-established Harlem landlord — saying that his father owned a 30 percent stake in the commercial property, a triangular lot just north of Central Park, at Lenox and St. Nicholas Avenues. A third man with a stake in the lot, Manuel Duran Jr., was an elderly dirt farmer from the Dominican Republic whose share was only 10 percent, Mr. Vargas told potential buyers. October 15, 2009
In Hong Kong, a $56.6 Million ApartmentOne of Hong Kong’s largest developers announced Wednesday that it had sold an apartment for 439 million Hong Kong dollars, setting a record, just hours after the city’s chief executive warned that the city might be facing a real estate bubble. The deal, valued at the equivalent of $56.6 million, set a record price per square foot for Hong Kong, and the developer, Henderson Land, said it was not aware of a higher figure’s having been paid anywhere else. October 15, 2009
Tracks to Go on BlockA federal bankruptcy judge approved Wednesday a plan to auction Pimlico Race Course and Laurel Park early next year, over objections from the tracks’ former owners, who opposed the speed of the sale. Meanwhile, two potential Maryland buyers - developers David S. Cordish and Carl Verstandig - reiterated their interest in bidding on the tracks and the Preakness Stakes. Magna Entertainment Corp., the Canadian firm that owns the racetracks and the Preakness Stakes and filed for bankruptcy protection in March, said the auction should be held quickly because Maryland law gives the state 60 days to review a deal and the right to match any bid. October 15, 2009
Foreclosures Keep Soaring as Unemployment Remains Main Cause of Housing WoesThe number of households caught up in the foreclosure crisis rose more than 5 percent from summer to fall as a federal effort to assist struggling borrowers was overwhelmed by a flood of defaults among people who lost their jobs. The foreclosure crisis affected nearly 938,000 properties in the July-September quarter, compared with about 890,000 in the prior three months, according to a report released Thursday by RealtyTrac Inc. That puts foreclosure-related filings on a pace to hit about 3.5 million this year, up from more than 2.3 million last year. October 15, 2009
La. Parish Tries New Approach to Fending Off HurricanesThis skinny spit of land at the southern tip of Louisiana— one blacktop road leading in, another out — seems an unlikely place for cutting-edge scientific innovation. But it’s here that Plaquemines Parish leaders have developed a novel way to protect the area from storms: by usurping federal plans and barricading the region with barrier islands, marshes and cypress trees. That approach could change the way coastal experts and engineers strategize hurricane protection. October 14, 2009
‘Tent City’ of Homeless Is Rejected in FloridaWhen retirees say they have bought guns to protect themselves from a plan to house the homeless a quarter mile from their neighborhood, Florida politicians pay attention. When 200 people show up at a 9 a.m. meeting, some wearing yellow T-shirts that say “no tent city,” elected officials tend to go along.That may be the lesson of a 4-to-3 vote Tuesday by the Hillsborough County Commission, which killed a plan from Catholic Charities to create an encampment for the homeless in Tampa. It was the end, for now, of an emotional dispute between residents fearful of the homeless and advocates who had argued for immediate help in a county with the state’s largest homeless population and where the recession has been especially severe. October 14, 2009
Town Settles Homeless Case With ChurchA town in central Pennsylvania that tried to shut down a church-run homeless shelter citing zoning code violations has agreed to pay the church and its lawyers $100,000 to settle a civil suit. “I’m just thankful,” the Rev. Jack Wisor, pastor of First Apostles’ Doctrine Church in Brookville, Pa., said Tuesday after the settlement was announced. “I knew in my heart that once the truth was exposed, God would show we were doing the right thing.” The church, which runs the Just for Jesus shelter in a century-old church building just off the Main Street business district, sued the town in November, saying it was infringing on the church’s religious liberty by forcing it to stop housing homeless people. October 14, 2009
Census Director: Foreclosures will Add Challenges, Costs to Next Year’s Decennial CensusForeclosures will make it tougher and more expensive to get an accurate census count next year as families move in with relatives or are left homeless, the Census Bureau’s director said Tuesday. Director Robert Groves said he expects some of the census questionnaires mailed out in 2010 will land at empty homes in areas hard hit by the housing crisis. That means census workers will need to make more door-to-door visits to verify whether anyone lives at these addresses, and that costs more money. “One absolutely unambiguous impact of the foreclosures is there’s going to be more people knocking on doors. It’s going to be more expensive to do that,” Groves told reporters during a visit to Los Angeles. October 14, 2009
HUD NAMES NEW LEADERSHIP AT HOUSING AUTHORITY OF NEW ORLEANS October 13, 2009
Report Criticizes Mortgage ProgramA federal program that has cut mortgage payments for more than 500,000 homeowners since spring is falling well short of what’s needed to fix the nation’s foreclosure crisis, warns a congressional panel’s report out Friday. “We’re concerned that not enough foreclosures will be prevented,” said Elizabeth Warren, who chairs the Congressional Oversight Panel for the $700 billion financial bailout program approved last year. The panel’s report says the government’s mortgage modification: program has three key problems October 13, 2009
OBAMA ADMINISTRATION RELEASES NEW DATA ON MAKING HOME AFFORDABLE PROGRAM, ACHIEVES KEY MILESTONE WEEKS AHEAD OF SCHEDULEAlmost one month ahead of a November 1 benchmark set earlier this year, the U.S. Department of the Treasury and U.S. Department of Housing and Urban Development (HUD) announced a new milestone of more than 500,000 trial loan modifications in progress under the Making Home Affordable program. The goal of 500,000 trial loan modifications by November 1 initially set in July pushed servicers to ramp up program implementation and sustain a faster pace of modifications; trial modifications are now being issued at a faster rate than new homeowners are becoming eligible. Still, the Administration believes that more can and should be done to assist struggling homeowners and to stabilize the housing market. October 13, 2009
Cleansing the Air at the Expense of WaterwaysFor years, residents here complained about the yellow smoke pouring from the tall chimneys of the nearby coal-fired power plant, which left a film on their cars and pebbles of coal waste in their yards. Five states — including New York and New Jersey — sued the plant’s owner, Allegheny Energy, claiming the air pollution was causing respiratory diseases and acid rain. So three years ago, when Allegheny Energy decided to install scrubbers to clean the plant’s air emissions, environmentalists were overjoyed. The technology would spray water and chemicals through the plant’s chimneys, trapping more than 150,000 tons of pollutants each year before they escaped into the sky. October 13, 2009
Another Landlord Worry: Is the Elevator Kosher?Tangible things occupy the days of most building managers in New York City. Hot water, floods, bugs, rent checks and so on.But last week, newly added to the tenant issues facing building managers like Harold M. Jacob, who runs a co-op on the Lower East Side where Orthodox Jews inhabit a substantial portion of the 2,500 apartments, was this almost ontological question: Does that elevator “know” how many people are on it? The question is at the core of a ruling issued by a group of prominent rabbis in Israel on Sept. 29 that seems to ban the use of many so-called Shabbos elevators: elevators fixed to stop on every floor from Friday evening until Saturday evening so that observant Jews do not have to press any buttons. October 13, 2009
Housing Chief Rebuts Warning of FHA BailoutA former Fannie Mae executive warned a House panel Thursday that the Federal Housing Administration is destined for a multibillion-dollar taxpayer bailout in 24 to 36 months, an analysis that the agency’s top official immediately dismissed as “completely unfounded.” At a hearing before a House Financial Services panel, Edward J. Pinto predicted that the FHA will suffer $40 billion in losses, leaving it unable to cover its bad loans without taxpayer help. Pinto, a real estate finance consultant who served as Fannie Mae’s chief credit officer from 1987 to 1989, said he testified so lawmakers would “not be able to say that no one told them of the magnitude of the impending losses.” October 13, 2009
A New D.C. Tax on Cooperative HousingIf you are planning to buy or sell a cooperative apartment in the District, you will be in for a real shock. Unless D.C. Council members change their minds, a new law will impose a tax on your purchase or sale. For years, cooperative buyers did not have to pay the same recordation/transfer tax that people buying condominiums and single-family homes must pay. Currently, that tax is 2.9 percent of the purchase price over $400,000 and 2.2 percent for prices under that amount. Typically — although not always — these taxes are split equally between buyer and seller. October 13, 2009
36% in Baltimore Area Who Bought this Decade and Sold in First Half of ‘09 Settling for LessLori and Aaron Travis thought the brick rowhouse in Upper Fells Point was beautiful, so they bought it for $309,000 five years ago. Now - after a job loss and failed negotiations with their lender - they’re trying to sell. For $190,000. They have plenty of company. The dramatic change from booming housing market to slump has left an increasing number of homeowners selling at a loss. More than a third of the Baltimore-area homes bought this decade and then resold between January and June changed hands for less than their previous purchase price, according to a Baltimore Sun analysis of state assessment data. In 2008, 19 percent sold for less than their previous purchase price. In 2007, it was just 5 percent. October 13, 2009
Green Walls, with Similar Benefits to Green Roofs, take Root in Environmental Building DesignThe next big thing in green building design might be to turn an existing idea on its side. PNC Financial Services Group Inc. recently installed a green wall the size of two tennis courts on one side of its headquarters. Like green roofs — their perpendicular counterparts — green walls are covered in vegetation and provide the benefits of natural insulation and removal of air pollutants. PNC, which provides banking and wealth management services, estimates it will be 25 percent cooler behind the wall than the ambient summer temperatures. Green walls also can be visually engaging. October 13, 2009
HUD CHARGES SOUTH DAKOTA LANDLORDS WITH HOUSING DISCRIMINATION September 10, 2009
Failing Loans for Commercial Real Estate Threaten Small BanksBank stocks have roared back from a near-death experience, which might be diverting attention from a new threat looming for the industry: commercial real estate. The speed at which loans on commercial properties such as office buildings and malls are souring is “unprecedented,” a recent report from Deutsche Bank said. The delinquency rates on these loans reached 4.1% in June, more than double the March rate. Banks are most vulnerable because they hold about $1 trillion of commercial real estate loans and an additional $530 billion in construction loans.Job losses have led to rising office vacancies. Tight-fisted consumers have helped close retailers such as Circuit City, forcing mall landlords to default on loans. September 10, 2009
Mortgage Relief Program is Still Too Slow, Many SayJust 12% of eligible mortgages have been modified under a $75 billion federal program to rework home loans into more affordable monthly payments, according to a Treasury Department report Wednesday. A total of 360,165 mortgage modifications are in a three-month trial period, and another 571,354 offers for modifications have been made to struggling homeowners, the report says. The goal of the program, announced in March, is to keep up to 4 million borrowers in their homes, an unprecedented federal effort aimed at stemming the foreclosures that are undermining the housing market. September 10, 2009
Buyers of Huge Manhattan Complex Face Default Risk September 10, 2009
As an Exotic Mortgage Resets, Payments SkyrocketEdward and Maria Moller are worried about losing their house — not now, but in 2013. That is when the suburban San Diego schoolteachers will see their mortgage payments jump, most likely beyond their ability to pay. Like millions of buyers during the boom, the Mollers leveraged their way into a house they could not otherwise afford by taking out a loan that required them to make only interest payments at first, putting off payments on the principal for several years. It was a “buy now, pay later” strategy on a grand scale, meant for a market where home prices went only up, and now the bill is starting to come due. September 10, 2009
A Hush in Cleveland ParkNext door, the upscale furniture consignment store has moved out. At Supercuts, one door down, two signs announce “We’re closing soon!” Up Connecticut Avenue, an ice cream parlor is “closed until further notice,” and a tailor warns customers to pick up their orders soon. After 23 years, a sign on the door says the shop is “closing for good” Tuesday. The number of empty and soon-to-be-vacant storefronts — one in six— in this three-block stretch is the source of discussion on local blogs and the Cleveland Park e-mail group list: How did one of the District’s most affluent and stable neighborhoods fall on hard times? (“It’s official,” one blogger declared recently. “Cleveland Park is dead.”) How will the historic neighborhood rebound? September 10, 2009
Clotheslines a Hang-up for Some CommunitiesDevin Ceartas would no sooner give up drying his laundry on a clothesline than he would dig up his spice garden, overturn his rain barrel or get rid of his compost heap. Air drying is one of the simple, old-fashioned ways the 42-year-old computer programmer and his wife try to make their life in a Chapel Hill subdivision kinder to the environment. So when their homeowners’ association told them two years ago to take down the clothesline, they organized their neighbors. Today, laundry hangs freely from the backyard balconies of Village West townhouses, and aesthetic complaints can be taken up with Ceartas, who last fall became association president. September 8, 2009
Tenants Making Way for Subway Ask: You Want Me to Move Where?Finding an apartment in Manhattan can be tough. Just ask the Metropolitan Transportation Authority. Next year, dozens of New Yorkers in some of the city’s wealthiest ZIP codes are set to be evicted to make way for the long-delayed Second Avenue subway, and federal law requires the transit agency to find them comparable new homes. So far, it has not been going so well. Dave Zigerelli was told to consider low-income housing across from an on-ramp to the Queensboro Bridge. The first apartment shown to Nicolle Poian was half the size of her own. Ann and Conrad Riedi, ensconced in the same rent-stabilized apartment for 40 years, said they were encouraged to move out of Manhattan — and their dog, Biscuit, might not be allowed to come along. September 8, 2009
Mortgage Market Bound by Major U.S. RoleIn the go-go years of the U.S. housing boom, virtually anybody could get a few hundred thousand dollars to buy a home, and private lenders flooded the market, aggressively pursuing borrowers no matter their means or financial history. Now the pendulum has swung to the other extreme. Only one lender of consequence remains: the federal government, which undertook one of its earliest and most dramatic rescues of the financial crisis by seizing control a year ago of the two largest mortgage finance companies in the world, Fannie Mae and Freddie Mac. September 8, 2009
Homeowners Facing Foreclosure Fall Prey to False SchemesHomeowners desperate to save their houses from foreclosure are searching for hope, and that can land them in worse trouble. Regulators say mortgage modification schemes found on the Internet or advertised elsewhere often contain “hope” in their name, in an apparent attempt to link themselves to legitimate programs, such as the nonprofit Hope Now that has partnered with the government to help distressed homeowners. Maryland’s program to help troubled homeowners is called Maryland Hope. “People think they are talking to a state or think they are talking to the federal government and they are really talking to a for-profit,” says Joe Cox, program director of Maryland ACORN. September 8, 2009
7th Ward House is Almost a Home Again, Four Years after KatrinaHis house is almost habitable. That makes Earnest Hammond, 71, almost giddy. “C’mon and look at this!” he said on a recent afternoon, eager to usher a visitor through his front door. Stacks of wallboard sat sit in his living room, waiting to be installed. Throughout the 7th Ward house that Hammond bought in 1973, the freshly sandblasted interior smelled like new wood, and the wall frames were strung with brand-new wiring and filled with insulation, thanks to the Episcopal Diocese of Louisiana’s Rebuild Program and its volunteers. September 8, 2009
SECRETARY DONOVAN ANNOUNCES NEARLY 100 MILLION DOLLARS IN RECOVERY ACT GRANTS TO IMPROVE PUBLIC HOUSINGU.S. Department of Housing and Urban Development Secretary Donovan today announced that HUD is awarding $96 million in grants to 15 public housing authorities across the country to make substantial improvements to thousands of public housing units nationwide. The Public Housing Capital Funds being awarded today are provided through The American Recovery and Reinvestment Act of 2009 (Recovery Act) and are specifically designated for public housing transformation, to help redevelop public housing that is blighted and distressing to the surrounding community. These grants will address the factors creating blighted public housing through renovation of existing housing or demolition and redevelopment of new public housing or a mixture of public housing and non-public housing on the site. September 4, 2009
Judges’ Frustration Grows With Mortgage ServicersBobbi Giguere had no luck in securing a loan modification from her mortgage servicer, Wells Fargo. For months, she had sent the bank the financial documents it requested to process her modification. But each time she called to check on the request, she was told to send her paperwork again. “I submitted the paperwork three times, and nothing happened,” said Mrs. Giguere, 41, who has a high school education and worked as restaurant manager before losing her job. On Thursday, something happened. She questioned a Wells Fargo official about the bank’s lack of response — under oath. The spectacle of a high-ranking banking executive being grilled by an ordinary homeowner was the result of an unusual decision by Judge Randolph J. Haines of the United States Bankruptcy Court to summon a senior executive from Wells Fargo to appear in Mrs. Giguere’s bankruptcy case. September 4, 2009
Stay on Top of New Rules to Help BorrowersOver the next two years, consumers may feel like an overscheduled soccer mom when trying to keep track of the effective dates of new rules and regulations written to give them greater protections. There are restrictions on credit card issuers, most of which become law in February. Starting next month, prohibitions on certain mortgage lending practices, as well as new disclosure requirements, will be in place. I want to focus on the mortgage lending rules. It will no longer be enough to just inform consumers of their rights with densely written disclosure statements. September 4, 2009
City gets Power to Fine Property OwnersFor years, the only way Baltimore code enforcers could prod property owners to fix problems - if asking didn’t work - was taking them to court. Now the city can slap them with a fine. And it intends to. “We’re going to be increasingly relying on citations for enforcement,” said Michael Braverman, the city’s deputy commissioner for permits and code enforcement. “We want the message to get out: Respond to the violation notice. Don’t think about waiting for a summons to appear in District Court. … This will allow us to get timely outcomes in a way we have never been able to do to date.” September 4, 2009
Mortgage Rates Dip, Still Above Record LowsRates for 30-year home loans edged down this week, remaining close to record lows reached over the spring. The average rate for a 30-year fixed mortgage was 5.08 percent, down from 5.14 percent a week earlier, mortgage company Freddie Mac said Thursday. Rates, while above the record low of 4.78 percent hit in the spring, are still at attractive levels for people looking to buy a home or refinance.“Low mortgage rates are helping to keep housing very affordable,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. September 4, 2009
MN: Woodbury gets Foreclosures off Market with Loan HelpJason Arney-O’Neil, a Woodbury firefighter and paramedic, thought long and hard about buying a house before settling on a prospect just two blocks from where he grew up. He combined a $25,000 loan from the city with his own cash to pay 20 percent down on the foreclosed house. “It’s saving me a lot of money right now,” he said of the city loan, which requires monthly payments of $62.50 to pay back 3 percent interest. September 4, 2009
Developer Preserves Affordable Housing in Delaware Using Stimulus FundsOn Monday September 1, 2009, dozens gathered at Hollybrook Farms, a 124-unit affordable apartment community in Laurel, Delaware, to celebrate a stimulus success. Joining the celebrationwere Delaware Governor Jack Markell and U. S. Senator Tom Carper. Hollybrook Farms received a variety of public and private financing in 2008 to complete the extensive renovations of the aging community. The majority of financing was in the form of private equity raised from the sale of FederalLow Income Housing Tax Credits (LIHTC). In May of 2009, while the renovations were 58% complete, the investor defaulted on their contractual obligations, leaving the project with a $4.8 million funding gap. September 4, 2009
Foreclosure Sales Rule Market, Key to Market’s RecoveryInvestors and first-time buyers dominate home purchases in Las Vegas, and their investments will be key to burning foreclosure inventory, a research company reported. Almost 70 percent of the area homes and condos sold in July were foreclosure sales, meaning those homes had been foreclosed in the past 12 months, said Andrew LePage, a spokesman for MDA DataQuick, a San Diego research firm.July’s percentage of foreclosure sales was the same as June, but up from 62.5 percent in July 2008, LePage said. The peak was 73.7 percent in April September 4, 2009
Foreclosure Activity Reaches RecordN.C. regulators are looking for new ways to help more homeowners as the foreclosure crisis spreads, hitting another unwelcome record last month. Statewide, foreclosure filings rose 43 percent in August, compared with a year ago, according to Observer analysis of court data compiled by the state. Filings, which mark the start of foreclosures, rose above 6,500 for the first time last month.Mecklenburg County saw an 80 percent increase, to 1,316, the second highest number on record for the county. September 4, 2009
Dane County Tightens Housing Discrimination OrdinanceThe Dane County Board approved changes to its housing discrimination ordinance Thursday, bringing the county’s rules more in line with Madison’s. The changes include prohibiting discrimination beyond two years after the completion of a court-ordered sentence, a clause proposed by Sup. Carousel Bayrd, of Madison, during the board discussion. The changes passed on a 19-17 vote with one member absent. Some board members objected to the proposal, questioning the effect Madison’s housing discrimination ordinance has had on allowing landlords to screen out problem tenants. September 4, 2009
Meltdown on Wall Street, and Homeowners Left in the Lurch on Main Street September 3, 2009
“American Casino”—Doc Investigates Roots of the Subprime Mortgage Meltdown and Tells the Stories of Its VictimsDEMOCRACY NOW!—The subprime mortgage meltdown was at the heart of what’s been called the Great Recession of 2008. It caused more than a million Americans to lose their homes and brought Wall Street to its knees. A new documentary opening today in New York takes on the subprime crisis, tracking its roots on Wall Street and Washington and profiling some of its victims, mainly African American families who lost their homes. We play highlights and speak with filmmakers Leslie and Andrew Cockburn. [includes rush transcript] September 3, 2009
Even in Slump, Big Houses are ExpensiveNo community has proved immune to the housing slump, least of all expensive places. But they’re still expensive. The 10 priciest ZIP codes in the Baltimore metro area all had averages above $500,000 during the first half of the year, topping off at nearly $845,000 in Howard County’s Glenwood community. Baltimore’s Homeland, with its six lakes and historic homes, was the most expensive neighborhood in the city and also had average sale prices above half a million. What many of the suburban communities have in common are big homes with super-sized yards. That’s true of Glenwood, in a part of Howard County that rapidly turned from farms to subdivisions. September 3, 2009
Industry Urges Fannie, Freddie OverhaulThe U.S. Mortgage Bankers Association said on Wednesday it will ask Congress to transform mortgage lenders Fannie Mae and Freddie Mac into several smaller, privately held companies that would issue mortgage securities with a government guarantee. The proposed framework from the industry group would give successor entities to Fannie Mae and Freddie Mac the authority to create securities backed by certain types of mortgage. September 3, 2009
FHA on Track for Busiest Year as it Backs 23% of MortgagesAlmost a year after the federal government launched its rescue of the housing market, nearly one in four new mortgages is insured by the Federal Housing Administration. With less than a month to go in the 2009 fiscal year, the FHA is on pace for its busiest year. From Oct. 1 through mid-August, applications for FHA single-family-home mortgages were up 50%, to 2.52 million, from the same period a year earlier. Approvals for purchases, refinancings and reverse mortgages rose 70% to 1.67 million. September 2, 2009
Justice Department to Recharge Civil Rights EnforcementSeven months after taking office, Attorney General Eric H. Holder Jr. is reshaping the Justice Department’s Civil Rights Division by pushing it back into some of the most important areas of American political life, including voting rights, housing, employment, bank lending practices and redistricting after the 2010 census. As part of this shift, the Obama administration is planning a major revival of high-impact civil rights enforcement against policies, in areas ranging from housing to hiring, where statistics show that minorities fare disproportionately poorly. President George W. Bush’s appointees had discouraged such tactics, preferring to focus on individual cases in which there is evidence of intentional discrimination. September 2, 2009
City Seeks to Turn Stalled Projects Into Moderate-Income HousingAs a rising number of half-finished and half-empty condo projects clutter the skyline, state and city officials have begun developing programs to turn hundreds of these apartments into moderate-income housing. But those efforts have proved far from easy. With budgets tighter than ever, there are few financial incentives to entice developers and lenders. And there are the practical challenges of selling apartments to buyers for far less than what their neighbors paid, not least among them possible complications for market-rent buyers, whose mortgages often depend on the building’s financial status. As housing officials work through the early stages of devising the programs, questions abound in the industry. September 2, 2009
For Commercial Real Estate, Hard Times Have Just BegunAs the commercial real estate market heated up earlier in the decade and lenders competed feverishly to issue ever-riskier mortgages, hundreds of bankers, investors, lawyers, brokers, appraisers, accountants and analysts flocked to an investors’ conference in Florida each January to celebrate their good fortune with lavish beach parties featuring bikini-clad models and popular entertainers. But in what a Prudential Real Estate Investors report described as “a move of near-perfect symbolism,” the conference sponsor, the Commercial Mortgage Securities Association, recently announced that next year’s event would be relocated from South Beach to Washington, where the industry has been lobbying strenuously for federal assistance. September 2, 2009
A ‘Little Judge’ Who Rejects Foreclosures, Brooklyn StyleThe judge waves you into his chambers in the State Supreme Court building in Brooklyn, past the caveat taped to his wall — “Be sure brain in gear before engaging mouth” — and into his inner office, where foreclosure motions are piled high enough to form a minor Alpine chain. Every week, the nation’s mightiest banks come to his court seeking to take the homes of New Yorkers who cannot pay their mortgages. And nearly as often, the judge says, they file foreclosure papers speckled with errors.He plucks out one motion and leafs through: a Deutsche Bank representative signed an affidavit claiming to be the vice president of two different banks. His office was in Kansas City, Mo., but the signature was notarized in Texas. And the bank did not even own the mortgage when it began to foreclose on the homeowner. The judge’s lips pucker as if he had inhaled a pickle; he rejected this one. September 1, 2009
Albany Leader Fires Aide Over Real Estate WoesPedro Espada Jr., the majority leader of the State Senate who is already at odds with tenant advocacy groups, appointed a new deputy chief of staff last month who in recent years managed dozens of low-income buildings with chronic housing code violations. The aide, Onix A. Sosa, supervised operations at about 35 buildings in Upper Manhattan and the Bronx as of late 2006 that had nearly 7,400 unresolved violations, including nearly 1,100 deemed immediately hazardous, according to city officials. He has also been named in more than 100 court cases in which the city or tenants sought to force building repairs, officials said. September 1, 2009
A Quick Lesson on Short Sales and TaxesQ. I am in the process of selling my house in a short sale. My mortgage is $450,000. The current value of my house is $375,000, and my lender has agreed to allow me to sell it for that price. Under the terms of the sale, my broker will get a 3 percent commission and after all closing costs are paid, the lender will get all of the net sales proceeds — $360,000. I have been told that I will have to pay some kind of income tax. Please advise. September 1, 2009
America’s Most Stressed-out CitiesSinking property values, high unemployment and prices, and poor environments add to the pressure felt by residents in these metros. Few enjoy their commute. Just ask Stephen Dinwiddie, M.D., a psychiatrist at the University of Chicago. “I think anybody who, like I do, commutes on the Kennedy on a daily basis knows exactly what stress is,” he says, of his daily home-to-work commute on Chicago’s expressway that extends from the Chicago Loop to O’Hare International Airport. “It takes anywhere from 30 minutes to several centuries — at least subjectively.” September 1, 2009
Financial Crisis Cripples New Affordable HousingFor thousands of low-income renters nationwide — but especially in rural towns and small cities — the recession is hitting home in an unexpected way. Nationwide, funding to build low-cost apartments has dropped by more than half in two years to $4 billion. Hundreds of projects can’t get off the ground because the federal tax credits that help offset development costs are currently worthless to traditional investors. Georgia, for example, typically funds about 30 projects a year using up to $20 million in federal tax credits. So far, only nine deals have closed for 2008 and none this year. In Savannah, one project was halted mid-development because of a financing gap. September 1, 2009
Technical Experts will help Communities Better Manage Backlog of Foreclosed HomesU.S. Department of Housing and Urban Development Secretary Shaun Donovan today announced HUD is launching a $50 million effort to help state and local governments address the inventory of foreclosed properties assisted under the Department’s Neighborhood Stabilization Program (NSP). HUD is awarding $44.5 million to nine national organizations and another $5.5 million to help local communities purchase, rehabilitate and resell foreclosed properties in especially hard-hit neighborhoods. Provided through the American Recovery and Reinvestment Act of 2009 (the Recovery Act), these grants will allow HUD to dispatch teams of experts to help improve the effectiveness of neighborhood stabilization programs, particularly in communities with few staff and technical expertise. August 27, 2009
Loans That Looked Easy Pose Threats to RecoveryMr. Clavon, 63, was planning to sell the home in a few years and retire to Palm Springs. So he got a loan called an option adjustable rate mortgage, or option ARM, which allowed him to pay less than the interest for the first five years. On his annual salary of $100,000 as a television camera operator, he could afford the $2,200 initial mortgage payments. And he planned to sell the home before the mortgage reset. Now Mr. Clavon is part of what many economists say is a looming threat to a housing recovery: more than a half-million option ARMs scheduled to reset in the next four years, at rates many homeowners cannot afford. His mortgage payments have risen to $2,700 a month because of a clause he did not notice on his contract, and are scheduled to rise above $4,000 in two years. August 27, 2009
Buying and Selling in Bedbug CityComplaints about bedbugs have risen sharply over the last few years in New York, according to city officials, and no neighborhood in the city has been spared. While the pests do not pose a dangerous health risk, they inflict considerable psychological distress on their unwilling hosts. Moreover, the uninvited guests can be excruciatingly difficult and costly to evict. According to the law, sellers and their brokers must acknowledge a problem if asked. But conflicts of interest aside, neither can be expected to know whether an infestation exists elsewhere in the building. August 27, 2009
More Sun for Less: Solar Panels Drop in PriceFor solar shoppers these days, the price is right. Panel prices have fallen about 40 percent since the middle of last year, driven down partly by an increase in the supply of a crucial ingredient for panels, according to analysts at the investment bank Piper Jaffray. The price drops — coupled with recently expanded federal incentives — could shrink the time it takes solar panels to pay for themselves to 16 years, from 22 years, in places with high electricity costs, according to Glenn Harris, chief executive of SunCentric, a solar consulting group. That calculation does not include state rebates, which can sometimes improve the economics considerably. August 27, 2009
A Big Gain in July for New-Home SalesThe Commerce Department reported Wednesday that new-home sales rose 9.6 percent to a seasonally adjusted rate of 433,000 last month. The numbers came on the heels of other reports that have showed housing prices rising in many big cities and sales of previously owned homes picking up.Sales, however, were still down 13.4 percent from a year ago, and the housing market is still in critical condition. Economists attributed some of the month’s increase to a government tax credit of up to $8,000 for first-time home buyers, and they pointed out that sales could struggle as more people lose their jobs and more loans go bad. August 27, 2009
Foreclosure Guilt Haunts Home BuyersRight about now, Anya Sanko should be enjoying the thrill of being a first-time home buyer. She bided her time, saved her money and jumped into the market in time to snap up a 1,785-square-foot home with a pool for $143,000. Yet Sanko, 37, is having a hard time celebrating. Her parents lost their house in Michigan to foreclosure after her father lost his job, her sister’s home equity has evaporated and friends struggling with mortgages don’t want to hear it. August 27, 2009
Homeless People Learn to Feed Others as ChefsChef Cecil Morris Jr., 46, of Mobile, Ala., knows what it’s like to be on both sides of the soup kitchen line. He was homeless and addicted to drugs and alcohol in 1992 when he entered the local Salvation Army’s adult rehab center. After a year in the program, Morris asked the chef in charge of the kitchen to teach him how to cook. That chef gave him the skills he uses today as the culinary arts director at the Salvation Army in his community, which serves more than 400 meals daily. Morris now teaches other unemployed people his trade. “I believe this is my calling,” he says. August 27, 2009
More Marylanders Fall Behind on MortgageOne in eight Maryland borrowers were behind on their mortgages this spring, a new report shows, a record caused by job losses and foreclosures feeding on each other in a vicious cycle. That adds up to about 132,000 homeowners who were at least 30 days late, according to a survey released Thursday by the Mortgage Bankers Association. That’s up nearly 60 percent from a year ago and includes people whose lenders were trying to foreclose as of June. August 21, 2009
‘Shovel-ready’ Housing Projects around State get Stimulus FundsMaryland’s housing department has authorized developers of 15 “shovel-ready” multifamily rental housing projects around the state to receive $33.5 million funds that will enable them to create $216.7 million worth of new or rehabbed “work force” housing for families and seniors — 1,439 units in all. August 21, 2009
Frustration Rises over Mortgage Relief ProgramAfter months of dead ends, rejections and runarounds from bank representatives, Dan Binder is still in loan modification limbo. When Binder lost his job as a media researcher, he and his wife left their southern California home in July 2008 and relocated to North Carolina where he found a new job in the media business. Since then, he’s never missed a payment on the three-bedroom home in Riverside County, Calif., he said, though it’s lost about half its value since he bought it in 2005 for $418,000. When his wife lost her job after the move, he called his lender, Wells Fargo, to see if the bank could rewrite the loan to lower the monthly payments. August 21, 2009
Wells Fargo Sued Over Home Equity Lines of CreditThe banking unit of Wells Fargo (WFC) is facing a lawsuit claiming it illegally reduced the size of customers’ home equity lines of credit. The suit, which was filed in Illinois, claims Wells Fargo failed to accurately assess the value of customers’ houses before deciding to cut the size of their credit lines. San Francisco-based Wells Fargo is being accused of using unreliable computer models that wrongly valued home prices too low to justify cutting the size of customers’ loans. August 20, 2009
Reactions Mixed to Settlement of Westchester Desegregation Suit August 20, 2009
Centex, Pulte Shareholders OK Deal, Creating Largest U.S. HomebuilderPulte Home’s (PHM) $1.53 billion takeover of rival Centex (CTX) was approved by shareholders of both companies Tuesday, creating the largest homebuilder in the United States. The deal matches Pulte’s division for retirement-age homebuyers with Centex’s focus on young first-time buyers. By absorbing Centex, Pulte is now positioned to sell homes in 29 states and Washington D.C., under brands such as Del Webb, DiVosta and Fox & Jacobs. Pulte also gains large tracts of land in Texas, North Carolina and South Carolina. “It was a very satisfying victory,” said Richard Dugas Jr., Pulte’s president and CEO, who now adds the title of chairman. He said he expected the transaction to be finalized by the end of the day. August 19, 2009
Single-family Housing Starts Rise; Wholesale Inflation FallsThe Commerce Department said Tuesday that construction started on homes and apartments fell 1% in July to a seasonally adjusted annual rate of 581,000 units, from an upwardly revised rate of 587,000 in June. But although single-family home construction is still 73% below the frenzied peak in January 2006, it is up 37% from the bottom hit last winter. Builders say they are seeing more buyers walk through the door, ready to sign contracts. The confidence level of builders is the highest this month than its been in more than a year, the National Association of Home Builders said Monday. August 19, 2009
In Appraisal Shift, Lenders Gain Power and CriticsMike Kennedy, a real estate appraiser in Monroe, N.Y., was examining a suburban house a few years ago when he discovered five feet of water in the basement. The mortgage broker arranging the owner’s refinancing asked him to pretend it was not there. Brokers, real estate agents and banks asked appraisers to do a lot of pretending during the housing boom, pumping up values while ignoring defects. While Mr. Kennedy says he never complied, many appraisers did, some of them thinking they had no choice if they wanted work. A profession that should have been a brake on the spiral in home prices instead became a big contributor. August 19, 2009
Hotel Monaco Could Go on Auction BlockThe corporation that just opened the $65 million, 202-room Hotel Monaco inside Baltimore’s historic B&O Building is in danger of losing the property at a public auction next month for not paying a Millersville lumber supplier $184,000 for doors, wood trim and other materials used in the project.A Circuit Court for Baltimore City judge this month issued a final order establishing a mechanic’s lien and directing the sale to move forward on the premises unless the building owner pays the J. F. Johnson Lumber Co. $184,000 plus interest and attorneys fees by Aug. 31. August 19, 2009
St. John Public Housing gets Security CamerasSt. John the Baptist Parish Housing Authority officials are watching over residents and trying to make their complexes safe havens by installing surveillance cameras. Shortly after an armed robbery at one of the Housing Authority complexes, surveillance cameras were installed at each of the authority’s four locations. Housing Authority Director Lawand Johnson, who said she was prompted to install the cameras after two drive-by shootings in April, hopes the new cameras will deter crime and protect the 812 residents in the four complexes. Signs in the authority’s main office in LaPlace read: “Notice — this area is under 24 hour surveillance.” August 19, 2009
HUD CHARGES NEW YORK LANDLORDS WITH HOUSING DISCRIMINATIONThe United States Department of Housing and Urban Development (HUD) today announced that it is charging two Queens, New York apartment owners with violating the Fair Housing Act by allegedly making discriminatory statements, including objecting to an African-American roommate coming to a “white neighborhood.” The Fair Housing Act prohibits landlords from making statements regarding the sale or rental of housing that indicate a preference or discrimination based on race, color, or national origin. HUD’s Charge of Discrimination, issued on behalf of the National Fair Housing Alliance (NFHA) and Long Island Housing Services Inc., (LIHS) alleges that Vyacheslav Uvaydov made several statements to testers for NFHA and LIHS that discriminated based on race, color and national origin. August 18, 2009
Commercial Real Estate Gets WorseThe commercial real estate downturn is deepening, threatening to slow the economic recovery. To try to contain the damage, the Federal Reserve said Monday that it will extend into 2010 a program to help investors buy commercial property loans. But some say that will have limited impact. “We seem to be nearing the end of the recession but the situation in the commercial real estate market is getting worse,” says Patrick Newport, an analyst at IHS Global Insight. August 18, 2009
Builder Survey Shows a Jump in Expected Home SalesThe National Association of Home Builders said Monday its housing market index rose in August to the highest point in more than a year, as homebuyers hurried to take advantage of a federal tax credit before it expires. The Washington-based trade association said Monday the index rose one point to 18, a level not seen since June 2008. The federal tax credit that covers 10% of a home price up to $8,000 for first-time buyers is set to expire at the end of November. August 18, 2009
Tax Bills Put Pressure on Struggling HomeownersHard times are causing more homeowners to fall behind on their property taxes. But in thousands of cases, they are not responsible to their local governments, but to private companies that charge double-digit interest and thousands of dollars in service fees. This is because in recent years struggling cities and counties have sold their delinquent tax bills to the highest bidder. It seemed a painless way to turn old debts into cash to finance schools or public services. But housing advocates say the private companies may be exacerbating the foreclosure crisis, pushing out homeowners faster than would governments, which are increasingly concerned about neighborhoods becoming wastelands of abandoned properties. August 18, 2009
Ask About Immigrants and HousingThis week, Emily Rosenbaum, professor of sociology at Fordham University and co-author of “The Housing Divide: How Generations of Immigrants Fare in New York’s Housing Market,” will respond to readers’ questions about how race influences immigrants’ housing options, and what this may mean for the future prospects of some immigrant groups. August 18, 2009
Stimulus Will Finance Four Housing DevelopmentsFour affordable housing projects in New York City will be among the first in the country to get started with financing provided by the federal stimulus plan, city and state officials said on Monday. Speaking on an empty lot in East Harlem, the officials announced that the city would spend $60 million of the stimulus funding it has received to build 739 units of affordable housing at the four developments: three in East Harlem and one in East New York, Brooklyn. The projects would consume most of the $85 million in funding for affordable housing that the city has received from the stimulus program. August 18, 2009
In Westchester, an Open Plea to Accept a Housing AccordA week after Westchester County entered into a settlement that will require creating 750 moderately priced homes in overwhelmingly white suburbs and marketing them aggressively to black and Hispanic families, the county executive, Andrew J. Spano, made a rare and emotional appearance before the County Legislature to plead that it ratify the agreement. “Do not make us the symbol of racism,” he told the Board of Legislators’ budget committee on Monday morning. The settlement appeared headed for approval after the committee endorsed it without a dissenting vote. Michael B. Kaplowitz, vice chairman of the 17-person board, said the members had misgivings about a settlement that would cost more than $50 million, but believed they had no choice because penalties for not approving it would amount to $180 million. August 18, 2009
Unemployment Spike Compounds Foreclosure CrisisThe country’s growing unemployment is overtaking subprime mortgages as the main driver of foreclosures, according to bankers and economists, threatening to send even higher the number of borrowers who will lose their homes and making the foreclosure crisis far more complicated to unwind. Economists estimate that 1.8 million borrowers will lose their homes this year, up from 1.4 million last year, according to Moody’s Economy.com. And the government, which has already committed billions of dollars to foreclosure-prevention efforts, has found it far more difficult to help people who have lost their paychecks than those whose mortgage payments became unaffordable because of an interest-rate increase. August 18, 2009
What Happens to the Loan When a Couple Separates?Q: My husband and I bought a house four years ago. We were legally separated 16 months ago, and the house was deeded to me. I have been paying the mortgage since our separation. I tried to contact the lender several times but was told I need my husband’s permission to talk to them because the loan is in his name only. I can’t claim the mortgage-interest tax deduction even though I am making the mortgage payments. When I contacted the lender, I was told that the mortgage is not assumable. What are my options? Do I stop paying the mortgage or continue to pay? August 17, 2009
Mortgage Rates Climb to 5.29 PercentRates on 30-year mortgages rose this week, remaining above 5 percent after reaching a record low earlier this year, Freddie Mac said Thursday. The average rate on a 30-year fixed-rate mortgage was 5.29 percent this week, up from 5.22 percent last week, Freddie Mac said. Last year at this time, the 30-year fixed-rate mortgage averaged 6.52 percent. Rates on 30-year mortgages dropped to a record low of 4.78 percent earlier this year, but have been above 5 percent since June. August 17, 2009
Baltimore Launching Grass-roots Campaign to Save EnergyWith free gadgets and tips, Baltimore is launching a campaign to get residents to save money and fight climate change by switching to energy-saving light bulbs, putting low-flow nozzles on showers and making other simple, relatively inexpensive changes in their homes. Mayor Sheila Dixon is scheduled to kick off the Baltimore Neighborhood Energy Challenge today at the West Baltimore home of one of the campaign’s volunteer “captains.” Leaders are being lined up in nine neighborhoods to sign up participants in what officials say is City Hall’s first major initiative to fulfill the city’s “sustainability plan” adopted this year. August 12, 2009
Westchester Adds Housing to Desegregation PactWestchester County entered into a landmark desegregation agreement on Monday that would compel it to create hundreds of houses and apartments for moderate-income people in overwhelmingly white communities and aggressively market them to nonwhites in Westchester and New York City. The agreement, if ratified by the county’s Board of Legislators, would settle a lawsuit filed by an antidiscrimination group and could become a template for increased scrutiny of local governments’ housing policies by the Obama administration. “This is consistent with the president’s desire to see a fully integrated society,” said Ron Sims, the deputy secretary of housing and urban development, which helped broker the settlement along with the Justice Department. “Until now, we tended to lay dormant. This is historic, because we are going to hold people’s feet to the fire.” August 11, 2009
HUD AND JUSTICE DEPARTMENT ANNOUNCE LANDMARK CIVIL RIGHTS AGREEMENT IN WESTCHESTER, COUNTYThe U.S. Department of Housing and Urban Development and the U.S. Department of Justice today announced a historic civil rights settlement with Westchester County, New York. The landmark agreement will result in the construction of 750 units of affordable housing in neighborhoods with small minority populations; will remove existing impediments to fair and affordable housing; and will require the County to take active steps to ensure its housing and development practices are fair to families without regard to their race or ethnicity. August 11, 2009
Don’t Cheat Home-Buyer’s Tax CreditThe IRS has an urgent message for would-be home purchasers: Make the most of the $8,000 first-time-buyer tax credit before it disappears Dec. 1 — if you qualify. But if you don’t truly qualify, don’t try to play games with the credit. The IRS already has 24 criminal investigations of suspected fraud underway around the country. It has executed seven search warrants, and last month a tax preparer in Florida entered a guilty plea on federal charges of fraud in connection with the first-time-buyer credit. He’s awaiting sentencing and faces up to three years in prison, a $250,000 fine or both. August 11, 2009
Establishing a Distressed Homeowner’s ‘Right to Rent’You home has just been foreclosed on. Where do you go? And what happens to your house, which now stands vacant, lowering property values in the neighborhood? The foreclosure sale did not attract any real bidders, and your lender now owns the property. A proposal to allow the former homeowners to rent the house — which first came up two years ago — is now being seriously proposed at all levels of the federal government. Dean Baker, co-director of the Center for Economic and Policy Research, a District think tank, is recognized as the originator of this concept. August 11, 2009
House where Rats Killed Baby is CondemnedThe house where a 3-month-old girl died from rat bites last month was ordered demolished by the Westwego City Council on Monday. The council unanimously ordered Charles Dufrene to tear down his home at 721 Central Ave. within 30 days, or the city would do it. The home is where Natalie Hill was found dead in her crib with hundreds of rat bites on July 16. Hill’s parents have said they previously heard rats scratching in the walls of the building. Dufrene owns the home, but he rented it to his stepson Robby Hill, and his wife Casey Laine, the parents of the dead child. August 11, 2009
Foreclosures Bring Out Cleanup Crews393 Ed Douglas Road was a hot potato now, not a home — just another ghost property in the resale pipeline with curtainless windows, a yard populated by fire ants and weeds, and the telltale flier taped to the front door: “U.S. Government Property.” Nick Hazel shoved a key in the lock. “Don’t look now, but we got company.” Above his head, and along the eaves, dangled nests in plump, grapelike clusters. “Hornets,” he muttered, then with a forced grin, “I looooove hornets.” August 11, 2009
Just 9% of Eligible Homeowners have had Mortgage ModifiedSome of the nation’s largest servicers are making minor progress in reworking home mortgages into more affordable monthly payments for financially strapped homeowners. In total, just 9% of eligible homeowners who are delinquent have gotten a trial mortgage modification under a federal program, according to a report Tuesday by the Treasury Department. The report lists the modification progress of major lenders since the Obama administration first announced a $75 billion housing recovery plan in March. August 5, 2009
Home Sellers Frustrated as Short-sale Deals CollapseScores of homeowners who thought they’d cut a deal with their banks to sell their houses for less than their unpaid mortgages are seeing those agreements fall apart months later, contributing to the mounting foreclosures that threaten the housing market’s recovery. The sales of homes for less than the amount owed the bank, known as “short sales,” have been widely viewed as an alternative that could help slow the foreclosure epidemic. In theory, delinquent homeowners escape a mortgage they cannot afford, and lenders, although taking a loss, avoid the even costlier process of completing a foreclosure. August 5, 2009
DEPUTY SECRETARY SIMS VISITS $14 MILLION AFFORDABLE HOUSING PROJECT IN SAN DIEGO JUMPSTARTED AS A RESULT OF RECOVERY ACT FUNDSU.S. Housing and Urban Development Deputy Secretary Ron Sims today visited Cedar Gateway Developments in San Diego, CA, an affordable housing development that was under construction but came to a halt last March due to the loss of tax credit funding. HUD Tax Credit Assistance Program (TCAP) funding, provided through American Recovery and Reinvestment Act of 2009 (Recovery Act), will now allow the project’s construction to restart in November, along with thousands of others throughout the country, creating quality jobs in the hard-hit construction industry. August 5, 2009
FHA SUSPENDS TAYLOR, BEAN & WHITAKER MORTGAGE CORP. AND PROPOSES TO SANCTION TWO TOP OFFICIALSThe Federal Housing Administration (FHA) today suspended Taylor, Bean and Whitaker Mortgage Corporation (TBW) of Ocala, Florida, thereby preventing the Company from originating and underwriting new FHA-insured mortgages. The Government National Mortgage Association (Ginnie Mae) is also defaulting and terminating TBW as an issuer in its Mortgage-Backed Securities (MBS) program and is ending TBW’s ability to continue to service Ginnie Mae securities. This means that, effective immediately, TBW will not be able to issue Ginnie Mae securities, and Ginnie Mae will take control of TBW’s nearly $25 billion Ginnie Mae portfolio. August 5, 2009
Old Feuds Resurface in a Brooklyn Rezoning FightMayor Michael R. Bloomberg has made a plan to create housing for half a million low- and moderate-income New Yorkers one of his signature initiatives, driving the rezoning of swaths of New York City to create what city planners call the largest municipal affordable housing plan in the nation. But in one neighborhood, the rush to build affordable housing, which rarely attracts opposition, has done exactly that — and the rush seems to be part of the problem: A coalition of community groups in Williamsburg say the city and its powerful allies have charged forward with a plan to rezone a 31-acre patch called the Broadway Triangle, ignoring vociferous protests about a planning process they called opaque. August 5, 2009
Board Votes Down Wind TurbineA Federal Hill woman seeking to become the first Baltimore resident with a wind turbine on her roof failed to win approval from city officials yesterday. The effort by Marsha Vitow brought opposition from neighbors concerned about safety and aesthetics and confounded city officials, who work for a mayor with a “cleaner, greener” agenda but had to deal with the city codes now on the books. Vitow needed a variance to build above the 35-foot residential height limit but the law didn’t allow for wind turbines. August 5, 2009
Help Slow to Arrive for Troubled HomeownersFor the past 16 months, Courtney Scott has been trying to get her lender, Bank of America, to modify the mortgage on her Atlanta-area home. She’s sent dozens of letters and e-mails to state and federal officials, bank representatives and mortgage assistance groups like HOPE Now. For a time, she said, she got little response. Lately, she’s been getting at least a call a week from different Bank of America representatives. Lots of calls, but little progress discussing a new loan. August 5, 2009
U.S. Counting on Public Shame to Help Mortgage ModificationsThe Obama administration wants to shame the mortgage industry into doing a better job of helping borrowers avoid losing their homes to foreclosure. By publishing the names of companies that are lagging in the government’s plan to ease the housing crisis, officials are counting on public outrage to get the industry on track. The Treasury Department on Tuesday plans to report on the progress of loan servicers — companies that collect mortgage payments — that are in line for up to $50 billion in subsidies. “We want to go faster,” said Michael Barr, the Treasury Department’s assistant secretary for financial institutions. “There are a bunch of servicers that are lacking in performance. They have to lift their game.” August 4, 2009
AP analysis: Foreclosures Stabilize in Key StatesEven as Americans suffer rising unemployment, foreclosure rates in three states hit hardest by the housing bust —California, Arizona and Florida— stabilized in June, offering hope that the worst of the real estate crisis is over, according to the Associated Press’ monthly analysis of economic stress in more than 3,100 counties. The latest results of AP’s Economic Stress Index show foreclosure and bankruptcy rates held steady from May in some states. Yet mounting unemployment is hampering an economic recovery in some regions, especially the Southeast and industrial Midwest. August 4, 2009
HUD MAKES FUNDS AVAILABLE TO HOUSING AGENCIES WITH SECTION 8 DIFFICULTIESThe U.S. Department of Housing and Urban Development (HUD) is today advising all public housing agencies that administer HUD’s Housing Choice Voucher (HCV) program that additional funds have been made available to help them address funding shortfalls that may limit them from serving families participating in their HCV rental assistance programs. HUD issued this guidance to minimize the impact on families and prevent terminating housing vouchers. August 4, 2009
Vacation Homes going on Auction BlockThe ballroom was so packed that people spilled into an adjoining room, the air heavy with body heat and anticipation. Nothing brings out a crowd - more than 600, in this case - like word that new beach condos once listed for as much as $850,000 could be auctioned off for as little as $85,000. The event in Annapolis last weekend, for a Delaware project, was one answer to a pressing question for builders big and small: What does it take to sell second homes in the longest economic slump since the Great Depression? U.S. vacation-home sales dropped by half between 2006 and last year, according to the National Association of Realtors. August 4, 2009
Lone Tenants in Fla. High-rise Seek Exit from DealVictor Vangelakos and his family never have to worry about noisy neighbors in their luxury condo on the Caloosahatchee River. There are no neighbors. Vangelakos, 45, his wife, Cathy, and their three children are the only residents in the 32-story Oasis I condo on the east edge of downtown Fort Myers.The Weehawken, N.J., firefighter bought the condo from The Related Group, based in Miami, for $430,000 and closed on it in November. He planned to make it a vacation getaway and eventually his full-time residence when he retires in four years — but prices have fallen hard since the real estate bubble burst in early 2006. August 3, 2009
Nowhere to Go but Up? Housing Begins Slow ReboundIt was — note the past tense — the worst housing recession anyone but survivors of the Great Depression can remember. From the frenzied peak of the real estate boom in 2005-2006 to the recession’s trough earlier this year, home resales fell 38% and sales of new homes tumbled 76%. Construction of homes and apartments skidded 79%. And for the first time in more than four decades of record keeping, home prices posted consecutive annual declines. A staggering $4 trillion in home equity was wiped out, and millions of Americans lost their homes through foreclosure. Now take a deep breath and exhale. The worst is over. August 3, 2009
In Tough Times, Conflicts Rise on Co-op BoardsThe signs of a nascent coup in an apartment building are unmistakable. An anonymous letter filled with angry accusations gets slipped under apartment doors. Clutches of residents whisper in the lobby. And then there’s the knock on the door, followed by hushed but urgent pleading for a vote to unseat, or maybe keep, a certain board member. Many co-op and condominium boards recently held their annual meetings, which made it prime season for this type of building intrigue. Most meetings are nonevents, with current members easily re-elected. But for those buildings where dissent has been brewing and is finally served up openly, the tension can be thick and vicious. August 3, 2009
Will a New Agency Protect Your Finances?Health-care reform has drawn most of the attention on Capitol Hill lately, but for home buyers and sellers and mortgage applicants, the legislative ballgame will really get underway in September. That’s when Congress begins serious work on the proposed Consumer Financial Protection Agency.Legislation creating the new agency is already pending in the House, pushed by Financial Services Committee Chairman Barney Frank (D-Mass.), its principal author. The Obama administration outlined a similar plan at the end of June and considers passage of a bill a top priority. August 3, 2009
Establishing a Distressed Homeowner’s ‘Right to Rent’You home has just been foreclosed on. Where do you go? And what happens to your house, which now stands vacant, lowering property values in the neighborhood? The foreclosure sale did not attract any real bidders, and your lender now owns the property. A proposal to allow the former homeowners to rent the house — which first came up two years ago — is now being seriously proposed at all levels of the federal government. Dean Baker, co-director of the Center for Economic and Policy Research, a District think tank, is recognized as the originator of this concept. August 3, 2009
HUD CHARGES ATLANTA CONDO ASSOCIATION AND REAL ESTATE AGENT WITH DISCRIMINATION FOR REFUSING TO SELL TO FAMILIES WITH CHILDRENThe U.S. Department of Housing and Urban Development today announced that it is charging an Atlanta condominium association, a local real estate company, and its agent with housing discrimination for refusing to sell to families with children. HUD’s charge of violating the Fair Housing Act is against Georgian Manor Condominium Association, Inc., HN Real Estate Group, Jennifer Sherrouse, and the Estate of Jean Branch. The Fair Housing Act prohibits a housing provider from discriminating against families with children unless the housing meets certain requirements for housing for older persons. July 31, 2009
Living in Tents, and by the Rules, Under a BridgeThe chief emerges from his tent to face the leaden morning light. It had been a rare, rough night in his homeless Brigadoon: a boozy brawl, the wielding of a knife taped to a stick. But the community handled it, he says with pride, his day’s first cigar already aglow. By community he means 80 or so people living in tents on a spit of state land beside the dusky Providence River: Camp Runamuck, no certain address, downtown Providence. Because the two men in the fight had violated the community’s written compact, they were escorted off the camp, away from the protection of an abandoned overpass. One was told we’ll discuss this in the morning; the other was voted off the island, his knife tossed into the river, his tent taken down. July 31, 2009
White Roofs Catch On as Energy Cost CuttersReturning to their ranch-style house in Sacramento after a long summer workday, Jon and Kim Waldrep were routinely met by a wall of heat. “We’d come home in the summer, and the house would be 115 degrees, stifling,” said Mr. Waldrep, a regional manager for a national company. He or his wife would race to the thermostat and turn on the air-conditioning as their four small children, just picked up from day care, awaited relief. All that changed last month. “Now we come home on days when it’s over 100 degrees outside, and the house is at 80 degrees,” Mr. Waldrep said. Their solution was a new roof: a shiny plasticized white covering that experts say is not only an energy saver but also a way to help cool the planet. July 31, 2009
Fannie, Freddie Unlikely to Return AidThe regulator of Fannie Mae and Freddie Mac said it was unlikely that the federal government would ever be paid back the entire $85 billion spent so far on bailing out the firms — and added that the cost was going to rise as additional funds are drawn. “Their book is so large,” James Lockhart, director of the Federal Housing Finance Agency, said at the National Press Club. “It’s hard for me to see that they will be able to repay all of that.” Lockhart’s comments were a blunt acknowledgment that while the government has long said its bailout of the financial sector largely represents an investment that will be repaid, billions of dollars are likely to be lost. July 31, 2009
Housing Market Teeters Between Recovery, RelapseThe battered housing market appears to be on the mend, with sales climbing nationally and prices leveling off, even rising in some spots. But swelling unemployment and the related delinquencies and foreclosures threaten to upend these gains, industry experts said. “That’s a huge cloud hanging over the housing market,” said Guy Cecala, publisher of Inside Mortgage Finance. “We can no longer blame the problems on bad mortgage products. It’s now about people losing their jobs, and that’s an even tougher problem for the government to address.” July 31, 2009
New Federal Housing Administration Loan AssistanceLoans backed by the Federal Housing Administration will be eligible for payment reductions similar to the Obama administration’s loan modification program, the government will announce Thursday.Effective Aug. 15, financially troubled homeowners who have an FHA-insured loan can apply for a modification under a program parallel to “Making Home Affordable” to help lower their payments and avoid foreclosure. The program, launched in March, is designed to lower monthly payments for 3 million to 4 million borrowers, although only about 200,000 have been helped so far. Lenders agreed this week to adjust 500,000 loans by Nov. 1. July 31, 2009
Disabled to Leave Streets for Homes of Their OwnFor three years, Dorothy Grace has slept beneath a concrete overpass in a 7th Ward park, selling bottled water to survive and scrawling notes with her always-handy pen and paper to try to combat forgetfulness that may mark the onset of Alzheimer’s disease. But today, Grace will move into her own apartment. The 56-year-old woman will be one of the first helped by a long-awaited housing program for the disabled homeless. “I like it, ” she said of her new place. “It’s inside.” This week, UNITY of Greater New Orleans is housing five of its clients through the new “permanent supportive-housing” program run by the Office of Aging and Adult Services, part of the state Department of Health and Hospitals. The program provides rental assistance linked to supportive services, allowing disabled people to live independently, avoiding institutionalization or further homelessness. July 31, 2009
HUD CHARGES LONG ISLAND HOUSING COMPLEX WITH DISCRIMINATING AGAINST PERSONS NEEDING SERVICE ANIMALSThe U.S. Department of Housing and Urban Development announced today that it has charged Sunrise Villas, LLC, with housing discrimination for allegedly refusing to allow residents at its Long Island, NY, age 55-and-over housing complex to have service animals that assist persons with disabilities. The Fair Housing Act makes it unlawful to discriminate based on disability by refusing to make reasonable accommodations in rules, policies, practices, or services, when such accommodation may be necessary to afford a person with disabilities equal opportunity to use and enjoy a dwelling. July 28, 2009
Homeless Families Could Face Eviction Over RulesHomeless families can be kicked out of city shelters for repeatedly breaking rules like staying out past curfew or for refusing apartments offered to them, according to a tougher policy that takes effect Tuesday. The new policy gives the city greater latitude to push families out of the shelter system, which had swelled to a near-high of 9,720 families as of Sunday. Families could always be evicted for illegal behavior like bringing in drugs or weapons, but they can now be ousted for any of 28 violations, including failing to sign in and out or not keeping an active case file with city welfare agencies. July 28, 2009
Foreclosures Are Often In Lenders’ Best InterestGovernment initiatives to stem the country’s mounting foreclosures are hampered because banks and other lenders in many cases have more financial incentive to let borrowers lose their homes than to work out settlements, some economists have concluded. Policymakers often say it’s a good deal for lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable. July 28, 2009
Home Sales Surge, Raising Hope That Sector Is RecoveringMore homes sold more quickly in the Washington area during the second quarter than in the period a year ago, while home prices showed some signs of stabilizing, according to a real estate industry study scheduled for release Tuesday. The local trend jibes with some national statistics released by the federal government Monday, which show that sales of newly built homes surged 11 percent in June from the previous month, the largest monthly gain in nine years. Sales of previously owned homes also jumped 3.6 percent in June, the third-straight month of increase, according to industry data released Thursday. July 28, 2009
Executive Testifies on Senators’ MortgagesThe Senate ethics committee has interviewed a former Countrywide Financial executive who testified under oath that Sens. Christopher J. Dodd (D-Conn.) and Kent Conrad (D-N.D.) were aware that they were accessing a special program to give below-market-rate mortgages to the powerful and famous when he arranged their loans, according to the executive’s attorneys. The statements from Robert Feinberg, who worked as a loan officer at the mortgage lender, stand in direct contradiction to statements made by Dodd and Conrad, who maintain that they did not know they were part of the Countrywide program created by its chief executive at the time, Angelo Mozilo. July 28, 2009
Government Readies Biggest Ever Push for Energy SavingYou’re probably familiar with some of the federal government’s incentives for home energy efficiency — heftier tax credits for solar panels, solar water heaters, geothermal heat pumps, heavy-duty insulation and windows and electricity-saving air conditioning and the like. But these come-ons are just the beginning of an unprecedented government-wide push for energy conservation in housing — and even “locational efficiency” — benefits. July 27, 2009
New Disclosure Rules Could Mean a Later SettlementNew disclosure rules, going into effect for all new loan applications July 30, may delay your settlement. In fact, some of the major mortgage lenders have begun to alert loan applicants that the new rules will cause brief delays in closing. PNC Mortgage, for example, is cautioning buyers, sellers and real estate agents that “it is wise to plan for at least a 30-day close.” The Truth in Lending Act became law in 1968. Its stated purpose was to promote the informed use of consumer credit by requiring disclosures about loan terms and costs. Unfortunately, over the years, these disclosures have become meaningless and confusing. July 27, 2009
Katrina’s devastation rewrote the playbook; local groups say relief about half finishedLeaders of a local consortium of Katrina relief groups say they are approaching a milestone in their piece of the regional recovery, having distributed $25 million in money, muscle and construction material to about 1,000 families around New Orleans since Hurricane Katrina. Yet with the fourth anniversary of the storm approaching, they estimate the region’s recovery is only at the halfway point, at best. July 27, 2009
HUD AWARDS $21.4 MILLION IN HIV/AIDS HOUSING GRANTS TO 19 LOCAL PROGRAMSHundreds of extremely low-income families living with HIV/AIDS will receive support in maintaining a permanent affordable home as a result of $21.4 million in grants announced today by the U.S. Department of Housing and Urban Development. In each of the next three years, these grants are expected to help 1,159 households address the challenges of living with HIV by improving their ability to manage illnesses and consistently engage in appropriate care as a result of their on-going housing arrangements. The funding announced today is offered through HUD’s Housing Opportunities for Persons with AIDS Program (HOPWA) and will renew HUD’s support of 19 projects in Alaska, California, Illinois, Hawaii, Massachusetts, Maine, Missouri, Montana, New Hampshire, Texas, Vermont and Wisconsin. July 23, 2009
Homeowners Struggle, and the Vultures CircleState and federal law enforcement officials are teaming up across the country to stop despondent homeowners from needlessly shelling out thousands of dollars to save their homes from foreclosure.The Federal Trade Commission recently announced that it is leading “Operation Loan Lies,” an effort by 25 federal and state agencies to shut down firms that are deceptively marketing foreclosure rescue and mortgage-modification services. These companies often do little or nothing to help homeowners renegotiate their mortgages or stop foreclosures, officials from the FTC and other agencies say. July 23, 2009
Running Program gets Homeless Residents on Track Emotionally, PhysicallyUntil July 2007, Michael Solomon hadn’t been for a run in 20 years. His wife had just died, and he was living at the Sunday Breakfast Rescue Mission in Philadelphia when Anne Mahlum walked into the shelter looking for a few running partners. Solomon says he originally decided to start running with her to relieve stress and get a good workout, but then “one thing led to another, and this running was a little more than a workout.” Two years later, Solomon graduated from the Metro Career Center in Philadelphia in computer technology and competed in a marathon, coming up just a few miles short of finishing. He credits much of his success to Mahlum’s Back on My Feet program. July 22, 2009
HUD CHARGES RHODE ISLAND LANDLORD AND REALTY COMPANY WITH VIOLATING FAIR HOUSING ACTThe U.S. Department of Housing and Urban Development today announced that it has charged a Cranston, Rhode Island, landlord and real estate company with two separate acts of housing discrimination. HUD charged Velna Marti Irrevocable Income Trust, its owner and two real estate professionals at RE/MAX Five Star with violating the Fair Housing Act by refusing to rent to families with children. The Fair Housing Act prohibits a housing provider from discriminating based on race, color, national origin, religion, sex, familial status or disability. The law includes refusing to rent to families with children (unless the housing meets certain requirements for housing for older persons) and making or publishing, in print or on-line, any statement or advertisement that states a limitation against families with children. July 22, 2009
Surreal Estate AssessmentsMENTION BRPAA to any D.C. resident, and the likely response will be a blank stare; mention the acronym (pronounced BUR-pa) to any official charged with the city’s fiscal health, and the common reaction is eyes rolled in exasperation. This obscure but important board decides challenges to real property assessments, and it’s long been troubled. Officials may have been able to ignore these deficiencies in a flush economy, but it’s past time for an overhaul of a body that directly affects a quarter of the District’s revenue. July 22, 2009
Freddie Mac Taps Finance Veteran as Fourth CEO in a YearFreddie Mac named Charles E. Haldeman Jr. on Tuesday as its new chief executive, the fourth person in a year to hold the top job at the federally controlled mortgage finance giant. After a year of tumult at McLean-based Freddie Mac, Haldeman will oversee the direction of the company as Congress and the Obama administration mull how to restructure it and its larger rival, District-based Fannie Mae. The government seized both companies in September, installed new leadership and has since been using them to prop up the housing market. July 22, 2009
No Bidders for Infamous Watergate HotelThe Watergate Hotel, part of the complex made famous by a presidential scandal, failed to attract any bids at auction Tuesday and was taken back by the lender that held the $40 million note on it. PB Capital Corp. took back the property after the auction opened at $25 million to a silent room. July 22, 2009
New Orleans Mayor Ray Nagin Creates Home Loan FrustrationMayor Ray Nagin’s decision to “reprogram” $20 million away from a popular mortgage subsidy program threatens to derail deals for close to 100 families of moderate means who already had been approved for the aid, with fully renovated homes under contract. It’s the latest stumble for a program that started under a cloud of confusion a year ago, but had been going like gangbusters of late. Close to 200 families recently purchased their first homes thanks to forgivable “soft second” mortgages of up to $65,000 plus grants of up to $10,000 to cover closing costs. July 22, 2009
Which Cities will, and won’t, Recover the FastestThe three most important things in real estate: location, location, location. It’s true for recovery from a real estate bubble too. Overall, many economists expect the national economy to return to growth later in 2009, perhaps as soon as this summer. But that won’t be the case everywhere. While some cities are poised for a quick rebound, others face a slog to recovery that could take years. Poised for swift recovery are many Texas cities, such as Austin, San Antonio, Dallas and McAllen. These areas did not see the massive real estate bubble that formed in states like California, Nevada and Florida. The economy is diverse, with heavy growth coming from education and health care in recent years. July 22, 2009
Buying is Now Cost-effective for Some RentersFor Aaron Carter, a musician who was struggling to fit a drum set, a piano and three guitars into his 600-square-foot apartment in Phoenix, the math on owning a home finally began to work in his favor.Rent for the apartment he shared with his wife: $615. Mortgage payment for a home with twice the space: $760. And the interest on a mortgage is tax-deductible. So they jumped at the chance to buy some elbow room. July 22, 2009
Stores Go Dark Where Buyers Once RoamedAmong the marks of Manhattan’s prosperity in recent years were the thousands of restaurants and shops that opened to meet an ever-growing demand. Confident in the appetite for spending — on expensive shampoo at 24-hour drugstores, cheese plates at sleek wine bars and clothes at minimalist boutiques — store owners signed high-rent leases with little haggling. But as New Yorkers have drastically cut back, the shops that line the streets, from chain outlets to family-run shops, have started to disappear. July 21, 2009
Apartments Updated after Carbon Monoxide illnessIn what they called “an abundance of caution,” the owners of a Northeast Baltimore apartment building in which nine people were sickened by a carbon monoxide leak said Monday that they would replace water heaters in four of the complex’s 803 units. Sawyer Realty Holdings LLC issued a statement saying the Sunday leak at the Dutch Village Townhomes appeared to have come from a faulty water heater in a vacant unit. The carbon-monoxide detector in that unit went off and alerted tenants in a neighboring apartment. July 21, 2009
Warming to Tax CreditsFaced with replacing a 35-year old oil furnace in their Ellicott City home, Baltimore Symphony musicians Robert Barney and his wife, Julie Parcells, decided on a geothermal heating and cooling system with a hefty price tag of $30,000. But between tax credits from Howard County, the state and federal governments and hoped-for energy savings, they expect to recoup their cost in five years. July 21, 2009
Low-priced Foreclosures Incite Bidding WarsEach time Lance and Kelli Thorson thought they had found their first home, someone would outbid them. It’s already happened at least 15 times. This wasn’t how it was supposed to be in a depressed housing market like Phoenix. Buyers are supposed to be able to walk in, and get pretty much whatever they want. Now, the Thorsons have taken up a tactic not seen since the heydays of the housing bubble — they are making offers on homes before they’ve seen them, as many as three per day. July 21, 2009
Banks Report using Government Assistance for LoansThe internal watchdog overseeing the government’s financial bailout is pressing Treasury to seek more information from banks that receive taxpayer assistance, brandishing his own bank survey as evidence that such data can be obtained. More than eight out of 10 banks responding to Special Inspector General Neil Barofsky’s survey said money they received from the government had been used for loans or to avoid reduced lending. Fewer than a third of the 360 banks surveyed said their lending levels would have been lower without money from the $700 billion Troubled Asset Relief Program. Banks also reported using the money to provide additional cushions of capital or to buy other institutions. July 20, 2009
Cashing In, Again, on Risky MortgagesFrom the ninth floor of a downtown office building on Wilshire Boulevard, Jack Soussana delivered staggering numbers of mortgages to homeowners during the real estate boom, amassing a fortune. By Mr. Soussana’s own account, his customers fared less happily. He specialized in the exotic mortgages that have proved most prone to sliding into foreclosure, leaving many now scrambling to save their homes. Yet the dangers assailing Mr. Soussana’s clients have yielded fresh business for him: Late last year, he and his team — ensconced in the same office where they used to broker mortgages — began working for a loan modification company. For fees reaching $3,495, with most of the money collected upfront, they promised to negotiate with lenders to lower payments on the now-delinquent mortgages they and their counterparts had sprinkled liberally across Southern California. July 20, 2009
Gotta Move, Gotta Sell July 20, 2009
Subprime Brokers Resurface as Dubious Loan FixersFrom the ninth floor of a downtown office building on Wilshire Boulevard, Jack Soussana delivered staggering numbers of mortgages to homeowners during the real estate boom, amassing a fortune. By Mr. Soussana’s own account, his customers fared less happily. He specialized in the exotic mortgages that have proved most prone to sliding into foreclosure, leaving many now scrambling to save their homes. Yet the dangers assailing Mr. Soussana’s clients have yielded fresh business for him: Late last year, he and his team — ensconced in the same office where they used to broker mortgages — began working for a loan modification company. For fees reaching $3,495, with most of the money collected upfront, they promised to negotiate with lenders to lower payments on the now-delinquent mortgages they and their counterparts had sprinkled liberally across Southern California. July 20, 2009
If Tax Escrow Ends Up Short, Set Aside Funds Through the YearQ: I am a senior citizen who is being priced out of my home of 10 years due to the consistent shortage in my escrow account. I asked my lender to allow me to pay my own taxes and insurance, but that request was denied. The lender’s representatives said that although they understand my desire to take over payment of property taxes on my own, it is their policy to maintain an escrow account on all loans where an escrow account was required at the time of closing. July 20, 2009
If Tax Escrow Ends Up Short, Set Aside Funds Through the YearQ: I am a senior citizen who is being priced out of my home of 10 years due to the consistent shortage in my escrow account. I asked my lender to allow me to pay my own taxes and insurance, but that request was denied. The lender’s representatives said that although they understand my desire to take over payment of property taxes on my own, it is their policy to maintain an escrow account on all loans where an escrow account was required at the time of closing. July 20, 2009
Governors See Good Signs of Hurricane Recovery in Mississippi, but There’s Still Long Way to GoGovernors attending their national convention on Mississippi’s Gulf Coast have seen signs of Hurricane Katrina recovery — glitzy casinos packed with tourists, new condominium towers rising along the beach, the major expansion of a bustling state port. However, unless the governors skip the receptions with cocktails and jumbo shrimp, they probably won’t see the neighborhoods reduced to vacant lots and detached concrete steps to front porches that no longer exist four years after the monster storm. They won’t see the roads still torn up in the tiny town of Waveland or learn about the lagging city services in Pass Christian, where the tax base has eroded because its beachside Wal-Mart was gutted by Katrina and is still being rebuilt. July 20, 2009
Housing Construction Hits a 7-month HighConstruction of new U.S. homes rose in June to the highest level in seven months as builders rushed to pour foundations for homes that must be completed by the end of November for first-time buyers to take advantage of a special tax break. The Commerce Department said Friday that construction of new homes and apartments jumped 3.6 percent last month to a seasonally adjusted annual rate of 582,000 units, from an upwardly revised rate of 562,000 in May. July 20, 2009
Housing Rescue Plan gets Slow Start as Loan Modifications DragAbout 325,000 homeowners have been offered mortgage modifications since the Obama administration launched its housing rescue program in March — far fewer than the number who have fallen into foreclosure in that time, officials said Thursday. The program has been plagued by homeowner complaints about long delays and misleading information from mortgage servicers. The administration is prodding the 27 participating servicers to ramp up their progress by adding staff, expanding call centers and improving training. The servicers have been summoned to a meeting with top officials in Washington on July 28, and the government intends to begin publishing monthly reports on individual servicers’ performance by Aug. 4. July 17, 2009
Administration Weighs More Foreclosure AidA top Treasury Department official told a Senate panel yesterday that the government is considering a proposal to allow homeowners to stay in their home as renters after a foreclosure. If enacted, the plan would attempt to address the glut of vacant properties in neighborhoods across the country, helping drag down home values. It would be yet another acknowledgment by the Obama administration that some borrowers cannot be saved from foreclosure despite government and industry efforts. July 17, 2009
Barclay Redevelopment Project could Start Next YearWork could start early next year on the $18 million first phase of redevelopment of 268 city-owned properties in a blighted North Baltimore neighborhood south of Charles Village. Developer Telesis Baltimore Corp., selected by city housing officials more than three years ago, has secured public financing to move forward with 72 affordable rental apartments and townhouses and hopes to start construction next year as well on for-sale housing, Catherine Simmons, a Telesis project manager, said Thursday. The developer on Thursday presented a city design panel with one piece of the multi-phase plan - construction of 19 new, affordable rental townhouses in the 2100 and 2200 blocks of Barclay St. July 17, 2009
Lease-Backs Turn Owners Into TenantsHere are two real estate questions getting a lot of attention on Capitol Hill and from the Obama administration: When homeowners lose their houses to foreclosure, should they be able to stay in the property, leasing it back at fair market rent from the lender? Should they also get an option to purchase the house from the bank at the end of the lease term, assuming they have the income to afford it? July 17, 2009
HUD SECRETARY DONOVAN ENCOURAGES COMMUNITIES, DEVELOPERS TO BUILD ENERGY-EFFICIENT, AFFORDABLE HOUSINU.S. Housing and Urban Development Secretary Shaun Donovan today encouraged a gathering of public housing officials, energy experts, developers and architects to continue exploring innovative practices to build energy-efficient, affordable housing and communities through HUD’s HOPE VI Revitalization program. “President Obama is committed to passing comprehensive energy and climate legislation that will generate millions of jobs, reduce the threat of deadly pollution and restore America’s role as a global leader in the clean energy industry,” Donovan said. “Increasing energy efficiency among American’s affordable housing stock is a central goal of both HUD and the Obama Administration, because it will not only create jobs, but will also lower operating costs for residents, public housing authorities and taxpayers.” July 16, 2009
Foreclosures Up: 1 in 84 Homes Affected in First Half of YearForeclosures are continuing to set records despite the Obama administration’s $75 billion plan to help borrowers at risk of losing their homes. There were 1.9 million foreclosure filings in the first six months of this year, a 15% increase from the first six months of 2008, according to a report today from RealtyTrac. One in 84 homes received a foreclosure filing in the first half of the year. June was the fourth consecutive month that foreclosure filings surpassed 300,000, RealtyTrac says, and the number of properties receiving one or more filings in the second quarter totaled 889,829 — the highest since RealtyTrac began issuing its report in 2005. July 16, 2009
Homes Not HandcuffsThe National Law Center on Homelessness & Poverty (NLCHP) and the National Coalition for the Homeless (NCH) released a report today, Homes Not Handcuffs, tracking a growing trend in U.S. cities - the criminalization of homelessness. The report focuses on specific city measures from 2007 and 2008 that have targeted homeless persons, such as laws that make it illegal to sleep, eat, or sit in public spaces. The report includes information about 273 cities nationwide. Homes Not Handcuffs also ranks the top 10 U.S. cities with the worst practices in relation to criminalizing homelessness. July 16, 2009
Suburbs get Urban MakeoverGleaming high-rises and dense development in white-picket-fence suburbia? From Anaheim and Fremont in California to Irving, Texas; Queens, N.Y.; and Arlington, Va., development has taken a dramatic turn from cul-de-sacs to city centers that mix residences, businesses and entertainment spots. Suburbs that had not allowed development to rise too high above the single-family homes that have shaped suburbia for decades are beginning to embrace the “urban” in “suburban.” July 16, 2009
Foreclosures Rise 15% in First Half of ‘09The number of U.S. households on the verge of losing their homes soared by nearly 15% in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills.The mushrooming foreclosure crisis affected more than 1.5 million homes in the first six months of the year, according to a report released Thursday by foreclosure listing service RealtyTrac Inc. The data show that, despite the Obama administration’s plan to encourage the lending industry to prevent foreclosures by handing out $50 billion in subsidies, the nation’s housing woes continue to spread. Experts don’t expect foreclosures to peak until the middle of next year. July 16, 2009
HUD OFFERS PERMANENT HOMES FOR MORE THAN 10,000 HOMELESS VETSU.S. Department of Housing and Urban Development announced today the final allocations of more than 10,000 vouchers to local public housing authorities across the country to provide permanent supportive housing for homeless veterans. For a local breakdown of the rental vouchers announced today, visit HUD’s website. “Numerous men and women voluntarily leave their families and put their lives on the line to ensure that we, their fellow Americans, live safely in our homes,” said HUD Secretary Shaun Donovan, who announced the $75 million in funding last month with Veterans Affairs Secretary Eric K. Shinseki. “These vouchers offer veterans a permanent home and critically needed supportive services to those who have served our nation.” July 16, 2009
Real Estate Agent Is Charged With Mortgage FraudAn Ashburn real estate agent has been charged with several counts of mortgage fraud after helping more than 100 people buy houses they couldn’t afford and defrauding lenders of about $50 million, the Loudoun County sheriff said yesterday. Diane H. Frederick Atari, 42, fixed her clients’ poor credit scores and inflated their incomes so they could qualify for mortgages they otherwise would not have gotten, county authorities said. The alleged fraud occurred between 2006 and last year. Many of the homes were bought in eastern Loudoun and in Fairfax County. July 16, 2009
Metairie Woman Pleads Guilty to Defrauding FEMAA Metairie woman pleaded guilty Wednesday to defrauding FEMA of $18,224 after reporting she lived in an apartment ruined in Hurricane Katrina. In reality, she had been evicted before the storm, and the apartment wasn’t damaged, prosecutors said. Rhonda D. Williams, 44, admitted in federal court to making false statements to the Federal Emergency Management Agency. She faces the possibility of a five-year prison sentence and a $250,000 fine, although maximum sentences are rare in federal court. Sentencing is scheduled Oct. 28. July 16, 2009
Upscale Home Sales Lag as Jumbo Loans are Hard to GetMore than four months after the Obama administration launched its housing rescue plan, scores of lenders are focused on rewriting mortgage loans to make them more affordable. But one demographic is being largely ignored: homeowners with higher-price loans. They don’t qualify for mortgage modifications under the Obama plan. They can’t get today’s low interest rates if they try to refinance. And with newly cautious lenders warier about who they lend to, just try to sell a home that costs $730,000 or more these days. In many cases, finding a buyer who can get financing takes far longer than for lower-price homes, because banks want as much as 30% down and six months of mortgage payments in reserve. July 15, 2009
New Home Appraisal Rules Stir Industry BacklashLess than three months after new rules for home appraisers kicked in, the real estate industry is in uproar. Realtors, homebuilders, mortgage brokers and the appraisal industry itself all agree the rules are causing problems. Some are backing a bill in Congress to kill them. The new guidelines bar mortgage brokers from ordering appraisals themselves, forcing them to do so through a mortgage lender. Lenders may order appraisals through in-house staff or appraisers hired by outside firms known as appraisal-management companies. But neither may talk to the appraisers about the value of the property they’re evaluating. July 15, 2009
HUD ANNOUNCES $113 MILLION AVAILABLE FOR PUBLIC HOUSING TRANSFORMATION, COMMUNITY REVITALIZATIONU.S. Department of Housing and Urban Development Secretary Shaun Donovan announced the availability of $113 million in HOPE VI funding today in a keynote address on the future of urban revitalization at the National Press Club during the Brookings Institution’s event, “From Despair to Hope: Two HUD Secretaries on Urban Revitalization and Opportunity.” Donovan joined former HUD Secretary Henry Cisneros in a comprehensive discussion about the HOPE VI revitalization program and the Obama Administration’s proposed Choice Neighborhoods Initiative, which seeks to build on the lessons from HOPE VI and expand urban revitalization beyond public housing. July 15, 2009
Struggling Landlords Leaving Repairs UndoneAs property owners run into trouble paying their mortgages, neighborhoods around New York City have been witnessing a disturbing consequence: Small and large apartment buildings are being abandoned in a state of disrepair, leaving tenants in limbo without basic services or even landlords.In the Bronx, anybody can walk into a four-story building on East 178th Street near the Cross-Bronx Expressway. Someone took the front door off the hinges and sold it for scrap metal. Drugs have been sold out of vacant apartments. “A nightmare,” said Cesar Guzman, 29, who lives in the building. “I can’t describe it as anything else.” July 15, 2009
Mortgages Are Now a Bank’s Best FriendFor the last two years, housing has been at the center of the banking industry’s troubles. But for at least one quarter, it will help lift its results. Even as banks remain cautious about lending and millions of borrowers still risk losing their homes, the mortgage business is returning as one of the most lucrative corners of the financial industry. The clearest evidence is emerging this week, as the nation’s biggest banks report their second-quarter numbers. July 15, 2009
4 Families Rebuilding Finances Post-foreclosureEven after a sheriff’s sale, the financial and emotional strains that surround a foreclosure are rarely over. For the past six months, the Associated Press has followed four families who lost their homes in the past year. Three of them are regaining their financial footing, but one has sunk deeper into poverty and depression. There have been more than 1.6 million foreclosures since the beginning of 2007, according to RealtyTrac. Today, a record 12% of American homeowners with a mortgage are either behind on their payments or facing foreclosure. And that record is expected to be broken repeatedly for another year, depending on how many people lose their jobs in the recession. July 14, 2009
HUD CHARGES KENTUCKY LANDLORD AND MANAGEMENT COMPANY WITH HOUSING DISCRIMINATIONThe U.S. Department of Housing and Urban Development (HUD) announced today that it has charged the managers and owners of a Kentucky apartment complex with housing discrimination. HUD alleges that Mary Sue Brooks, Jan Partin and Brooks Properties, LLC, violated the Fair Housing Act when they evicted an African-American family following a home invasion at West Park Village Apartments in Paducah. The Fair Housing Act makes it unlawful to discriminate in housing because of race and/or color and sex. July 14, 2009
Illnesses Afflict Homes With a Criminal Past July 14, 2009
Debate on Clean Energy Leads to Regional DivideWhile most lawmakers accept that more renewable energy is needed on the nation’s grid, the debate over the giant climate-change and energy bill now before Congress is exposing a fundamental rift. For many players, the energy not only has to be clean and free of carbon-dioxide emissions, it also has to be generated nearby. The division has set off a fight between Eastern and Midwestern politicians and grid officials over parts of the bill dealing with transmission lines and solar and wind energy. Many officials, including President Obama, say that the grid is antiquated and that thousands of miles of new power lines are needed to allow construction of wind farms and solar fields in the most promising spots. Many of the best wind sites are in the Midwest, far from the electric load in populous East Coast cities. July 14, 2009
When Default Is a StrategyWould you, under any circumstances, default on your home mortgage, even if you could afford to make the monthly payments? That’s a trickier question than you might assume, according to new research from the University of Chicago’s Booth School of Business and Northwestern University’s Kellogg School of Management. The study found that 26 percent of the record numbers of home-mortgage defaults across the country are “strategic” — that is, calculated economic decisions to bail out of loans by owners who actually have the money to make the payments but can’t handle the negative equity they’re carrying because of declining property values. July 14, 2009
Condo Officers Can’t Pay Themselves Fees if Bylaws Forbid ItQ: I am an 80-year-old woman who lives in a townhouse condominium. There are 95 units, and my condo fee is $325 a month. It was recently raised by $25, and it appears that the board plans to raise it again. Our officers decided they should be paid a monthly fee. There are several other complexes in our area where the condominium fee is lower and officers do not get paid. Our president is awarded gift certificates from the board for anything he does. I have never heard of a volunteer given a salary. Have times changed that much? July 14, 2009
Rents Fise as HANO Trudges through Transition from Disaster Assistance ProgramSeveral thousand low-income households that rely on federal rental assistance have seen their portion of rent climb in recent months — in most cases beyond their means — because of delays in transferring them from the temporary Disaster Housing Assistance Program to long-term Section 8 rental assistance. The lag appears to stem partly from the volume of applicants: About 4,000 local families who participated after Hurricane Katrina in the federally financed disaster housing program, dubbed DHAP, have so far met income requirements for the U.S. Department of Housing and Urban Development’s standard rental voucher program, known as Section 8. July 14, 2009
Judge Orders Changes to Metairie Metal BuildingA judge has stepped into the peculiar case of a partially built, metal building in Metairie that the owner claims will be a house, ordering him to remove one of its sheet metal walls and submit new plans showing the exterior will be constructed with bricks, stucco or residential siding, according to court documents. The structure began rising last year at the corner of Causeway Boulevard and 40th Street, prompting dismay from neighbors and parish officials. July 14, 2009
Homelessness in Suburbs, Rural Areas IncreasesAs the recession took hold last year, homelessness shifted toward rural and suburban areas and gripped a growing number of families, the U.S. government reports today. The number of homeless people receiving shelter, 1.6 million, was largely unchanged from 2007, but the number of those in families rose 9% from about 473,000 to 517,000, according to the Department of Housing and Urban Development report. The figures are for the fiscal year ending Sept. 30. July 9, 2009
13 Real Estate Professionals Are Indicted on Mortgage Fraud ChargesThe Manhattan district attorney announced the indictment of 13 people on Wednesday in what he called a multimillion-dollar mortgage-fraud scheme that victimized lenders and low-income homeowners. The 13, employed in nearly every profession in the real estate industry — including lawyers, real estate agents, appraisers and bank workers — were accused of participating in 19 sham real estate transactions. Each of the defendants has been charged with a handful of larceny and fraud charges, the most serious of which, enterprise corruption, could result in 25-year sentences. July 9, 2009
Harlem’s Real Estate Boom Becomes a Bust July 9, 2009
MD: Montgomery Urged to Revisit Watershed Development PlansMontgomery County should reconsider a proposed $85 million bus depot and delay approval of 1,600 houses near the fragile Ten Mile Creek watershed to see whether more can be done to protect the creek while still allowing development, county planners and environmental officials say in a report to be discussed today. Among the possible solutions that a proposed two-year study would examine are “more stringent controls, decreasing development, or a different type of development,” said Mark Pfefferle, who oversees the county planning agency’s environmental staff. July 9, 2009
Potential Home Buyers Skittish, Poll ShowsMore than half of potential homebuyers say they’re still not prepared to jump into the market, and fear of losing their jobs is the No. 1 reason, a new poll shows. With unemployment at a 26-year-high and rising, nearly 53 percent of consumers who said they were planning to buy a home in the future cautioned they’re not ready to take such a large financial step right now, according to the survey released Thursday by Realtor.com. July 9, 2009
For Many Minorities, Saving isn’t so EasyMany Americans fear they’ll outlive their savings, but African Americans and Hispanics face an even greater risk of spending the end of their lives in poverty. Members of those two groups are less likely than white and Asian workers to participate in their employers’ 401(k) plans, and when they do contribute, they save less, according to a study scheduled for release today by Ariel Education Initiative and Hewitt Associates. African Americans and Hispanics also are much more likely to take money out of their 401(k) plans for emergencies, which could further stunt long-term savings growth. And they are less likely to invest in stocks in favor of low-risk investments and real estate, increasing the risk that their savings won’t keep pace with inflation, retirement specialists say. July 7, 2009
SECRETARY DONOVAN ANNOUNCES RECOVERY ACT FUNDS TO SUPPORT COMMUNITY DEVELOPMENT IN ALABAMA July 7, 2009
Summer Brings a Wave of Homeless FamiliesAs the school year sailed to a close last month, Arielle Figueras crossed the stage in her cap and gown and proudly accepted her fifth-grade diploma. The next day, she was homeless. Arielle, a petite 11-year-old, and her parents, brother and sister packed their belongings and arrived at the intake center for homeless families in the South Bronx. Though they had been fighting with their landlord for months and their gas and electricity had long been shut off, they refused to leave their apartment while school was in session. “She was graduating, so we had to wait,” Arielle’s mother, Marilyn Maldonado, said. “We just didn’t want to disrupt their routines. We couldn’t do that to them.” July 7, 2009
Local Office Vacancies Soar, Driving Down RentThe office vacancy rates in the District, Northern Virginia and suburban Maryland rose substantially in the second quarter, forcing building owners to push down rents to fill empty space, according to an analysis released yesterday. The District, which benefited for years from a building boom, hit a double-digit vacancy rate for the first time since 1997, according to the study by CB Richard Ellis. Real estate experts attributed the soaring rates to declining demand from companies seeking new space and a growing inventory of newly constructed properties entering the market. July 7, 2009
Lowball Appraisals Spark UproarIt’s by far the hottest controversy in real estate this summer, and it could directly affect the value of your house — probably negatively — by tens of thousands of dollars. The issue involves lowballed appraisals and the new rules guiding appraisers in both price-depressed and rebounding markets. Consider these snapshots: In San Diego, Steve Doyle, division president for Brookfield Homes, is trying to close out the final 20 houses of a 120-unit single-family subdivision. Prices range from $340,000 to $350,000. July 7, 2009
Shop Around for That Refinance, but Don’t DelayQ: I am shopping to refinance my condominium mortgage of about $400,000. The outstanding loan balance is $160,000, and my credit is stellar. In order to refinance with my current lender, they want $2,200 in closing costs. I just financed with this lender three years ago, and there seems to be no special benefit for refinancing with them again. I don’t understand why they wouldn’t want to keep a good customer and not charge me anything. Any insight? July 7, 2009
Schmoke, O’Malley Saw Water’s Edge PotentialThe push for intense development along the water’s edge can be traced largely to the administrations of Kurt L. Schmoke and Martin O’Malley, who recognized the water’s ability to draw businesses of all kinds. From the 1960s to the 1990s, the city had strong restrictions on waterfront development. Its master plan called for low- and mid-rise buildings close to the water and taller buildings several blocks inland, a strategy that limited the amount of new construction along the water’s edge. July 7, 2009
Eastward Shift for Baltimore’s DowntownJust 12 blocks separate the old headquarters of Legg Mason at 100 Light St. in downtown Baltimore from its glassy new headquarters at 100 International Drive in Harbor East. But it’s a quantum leap for the global asset manager - and the city that fought to keep it in town. The 24-story Legg Mason Tower is part of a wave of waterfront development that marks an expansion and redefinition of Baltimore’s downtown - from a relatively compact core with a well-defined business district to a new, linear city that encircles the harbor, with eight miles of shoreline and companies and residences spread out all along the water’s edge. July 7, 2009
Rental Housing Affordability Worsens NationwideThe financial plight of the nation’s 34 million renters has deteriorated rapidly since the beginning of the decade, yet they are rarely included in conversations about housing affordability. Half of all renters now spend at least 30 percent of their before-tax income on rent and utility payments, that’s up from about 40 percent of renters in 2000, according to an analysis by the Associated Press. One in four uses more than half of their income to cover those expenses, up from one in five. July 7, 2009
‘Ghostboxes’ Haunt Communities Across U.S.Hundreds of anxious shoppers watched as city officials used power saws to cut 2-by-4s during Home Depot Inc.’s ribbon-cutting ceremony for its 102,700-square-foot building center in Bismarck. Less than three years later, the home improvement retailer shuttered the underperforming store, leaving a big orange empty eyesore on the outskirts of town. The building, sitting derelict and silent on acres of asphalt, is now listed for sale at $10.5 million. But there’s been little interest in the near windowless warehouse-like building that occupies a lot the size of a dozen football fields. July 7, 2009
Foreclosure Help will Reach more HomeownersThe government will allow more distressed borrowers who owe more than their homes are worth to be eligible for refinancing assistance under an Obama administration housing rescue program.Currently, homeowners who owe 5% more than their homes are worth can refinance mortgages through Fannie Mae and Freddie Mac, part of a two-pronged approach to reduce the rapid-fire pace of foreclosures. On Wednesday, Housing Secretary Shaun Donovan said the program will be expanded, allowing homeowners who owe 25% more than their homes are worth on the market to get refinancing help through the federal agencies. Owing more on a home than it’s worth is referred to as being “underwater.” July 2, 2009
Beazer Homes Reaches Deal on Fraud ChargesFederal prosecutors filed criminal conspiracy charges on Wednesday against one of the nation’s 10 largest home builders and reached a deal that allows it to clear its record after it pays millions of dollars to compensate borrowers who were defrauded by its former mortgage arm. The charges against Beazer Homes USA, detailed in a criminal information filed in federal court in Charlotte, N.C., involve the company’s loan origination practices, which came under federal scrutiny in March 2007 after a series of articles in The Charlotte Observer. Beazer Homes, based in Atlanta, said on Wednesday that it had closed its mortgage unit in February 2008 and revised its financial reports in May 2008 to correct improper accounting practices. July 2, 2009
2 Builders Plead Guilty to Misusing Clients’ FundsIn a rare criminal case against a Maryland homebuilder, a brother and sister who ran a Baltimore County company have pleaded guilty to misusing more than $225,000 in deposits from customers expecting new homes, the state attorney general said Wednesday. Walter Osborne Ely Jr. and Kimberly Zahrey started JAE Developers in 2002 and collected between $1,000 and $50,000 in upfront payments from prospective home buyers, according to Attorney General Douglas F. Gansler’s statement of fact submitted to Baltimore County Circuit Court Judge Vicki Ballou-Watts. Instead of putting the money in escrow accounts as required, the two quickly spent it. Some of the money went to business expenses that had nothing to do with building the customers’ homes, the state said. Some of it Ely and Zahrey spent on themselves, the state said. July 2, 2009
Foreclosure is a Problem for Celebrities tooIt seems like just yesterday — excess was in and celebrities lived it up, buying lavish cars, expensive toys and over-the-top homes. Now, they’re losing it like everyone else. Victoria Gotti, daughter of deceased Gambino family crime boss John Gotti, let audiences into her lavish $4.2 million Long Island estate for her reality TV show, Growing Up Gotti. But now, the mafia princess turned New York Post columnist is behind by $650,000 on her mortgage and will likely lose her home. Part of the problem for some celebrities is that they were allowed to borrow huge amounts of money because of their sizable paychecks during boom times. July 2, 2009
Population Numbers Bounce back in CitiesThe housing crisis and economic downturn that have forced many Americans to stay put are boosting older cities where population had been shrinking or was stagnant, according to Census estimates out Wednesday. Last year, Los Angeles recorded its biggest annual increase since 2002 and New York its second largest this decade. Chicago, where population had declined for five years this decade, grew by 0.73%. July 1, 2009
Middle Class may be Developers’ 2nd ShotCities that have high housing costs are trying to make lemonade out of real estate lemons: turning failed developments into affordable housing for the shrinking urban middle class. New York City elected officials are working on a plan to subsidize unsold or half-built apartment towers to make them affordable to middle-income residents. “We love the idea. Now we’re trying to execute it. Now we’re trying to come up with the money,” says Robert Lieber, deputy mayor for economic development. July 1, 2009
Philadelphia Program Saves 60% of Homes from ForeclosureA program in Philadelphia to avert residential mortgage foreclosures has saved almost 60% of its participants from losing their homes in a sheriff’s sale, officials said Tuesday. Philadelphia’s Mortgage Foreclosure Diversion Pilot Program, seen as a national model to stem the foreclosure crisis, resulted in 2,776 properties permanently or temporarily saved from sale between its inception in June 2008 and May 31 this year out of 4,690 that were referred to the program, according to new data. The program, overseen by the Philadelphia Court of Common Pleas, brings together borrowers in mortgage arrears with lenders, judges, housing advocates and attorneys who try to reach an agreement that will allow distressed homeowners to remain in their homes. July 1, 2009
SECRETARY DONOVAN AWARDS OVER $1 BILLION IN RECOVERY ACT FUNDS TO JUMP-START AFFORDABLE HOUSING CONSTRUCTION IN 26 STATESU.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is approving plans submitted by state housing finance agencies for $1,035,322,485 to jump start affordable housing programs in states throughout the country that are currently stalled due to the economic recession. Funded through American Recovery and Reinvestment Act of 2009 (Recovery Act), HUD’s new Tax Credit Assistance Program (TCAP) will allow 26 state housing finance agencies to resume funding of affordable rental housing projects across the nation while stimulating employment in the hard-hit construction trades. July 1, 2009
Tax Credit Assistance ProgramThe Tax Credit Assistance Program (TCAP) provides grant funding for capital investment in Low Income Housing Tax Credit (LIHTC) projects via a formula-based allocation to State housing credit allocation agencies. The housing credit agencies in each State shall distribute these funds competitively and according to their qualified allocation plan. Projects awarded low income housing tax credits in fiscal years 2007, 2008, or 2009 are eligible for funding, but housing credit agencies must give priority to projects that are expected to be completed by February 2012. Seventy-five percent of TCAP funds must be committed by February 2010, 75 percent must be expended by February 2011, and 100 percent of the funds must be expended by February 2012. July 1, 2009
Mortgage Applications Fall to 7-month LowU.S. mortgage applications plunged to a seven-month low last week as demand for home refinancing loans tumbled 30 percent, data from an industry group showed on Wednesday. The drop does not bode well for the hard-hit U.S. housing market, which has been showing some signs of stabilization, with sales rising and home price declines moderating in many regions of the country. July 1, 2009
States can Apply own Laws to National LendersThe Supreme Court ruled that states can apply some of their own laws to big national banks operating within their borders, a decision proponents called a huge win for consumers and for states seeking more power to regulate financial activities. In yesterday’s ruling, the high court said state attorneys general cannot on their own issue a subpoena against a bank that has branches in that state and others. But the court also said that national banks are subject to some state laws under the National Banking Act, and attorneys general can go to court to enforce those laws. July 1, 2009
Home Prices in Major U.S. Cities Probably Fell on ForeclosuresHome prices in 20 major metropolitan areas probably fell in April at about the same pace as in prior months as foreclosures climbed, economists said ahead of a report today. The S&P/Case-Shiller home-price index fell 18.6 percent from a year earlier following an 18.7 percent drop in March, according to the median of 33 forecasts in a Bloomberg News survey. Another report may show consumer confidence rose to a nine-month high in June. June 30, 2009
Wells Fargo Awaits Ruling in Baltimore Reverse-redlining SuitAt the fourth and final hearing to determine whether the city of Baltimore’s Fair Housing Act suit against Wells Fargo Bank N.A. is worthy of further investigation, attorneys for each side presented radically different explanations for the city’s vacant and blighted housing problem. And the presiding judge in the first-of-its-kind case was nearly as talkative as he seemed to be still working through whether the city’s theory — that Wells Fargo owes the city money for the costs it bore as a result of the bank’s foreclosures — is plausible. John P. Relman, the lead attorney for the city, called the logic of the lawsuit “absolutely inescapable” and the evidence marshaled thus far, even before full-scale discovery has been authorized, “extraordinary.” June 30, 2009
Judge’s Ruling in Mortgage-lending Case is Days AwayHaving heard what he called a “test run” of Baltimore’s discriminatory lending claim against Wells Fargo on Monday, a federal judge said he will rule within days on whether the civil case can proceed to discovery - a process that could reveal the inner workings of one of the region’s largest mortgage lenders. Baltimore’s lawsuit against Wells Fargo, filed in January last year, alleges that the company violated the federal Fair Housing Act by disproportionately pushing black borrowers into oppressive subprime loans that were “destined to fail.” Many of those homeowners, the lawyers say, went into foreclosure, which cost the city millions in lost property tax revenue and expenses related to the upkeep of vacant houses. June 30, 2009
Hard-working Women Need Help with HousingOn May 14, I traveled to Trenton to participate in the Housing and Community Development Network of New Jersey’s Lobby Day. Our goal was to call attention to the lack of affordable housing in our state. Since that day, I have been unable to get the voice of one brave young woman out of my head: “Help me get my foot in the door. Help me get a chance,” she pleaded. Her name is Denise. She was one of three women who spoke during a press conference that day on the “Out of Reach Report,” an annual report that reveals just how “out of reach” an affordable place to live is for so many in the Garden State. These women, who are all grappling with homelessness, put a human face on the report’s statistics. June 30, 2009
Linking Homlessness to ForeclosuresA partnership of national homeless organizations, including the National Coalition for the Homeless, the National Health Care for the Homeless Council, the National Alliance to End Homelessness, the National Association for the Education of Homeless Children and Youth, National Law Center on Homelessness and Poverty, the National Low Income Housing Coalition, and the National Policy and Advocacy Council on Homelessness; have release a joint report on the impact of the foreclosure and economic crises and the unprecedented growth in the number of individuals and families left without a home in the United States. June 30, 2009
Beware the Reverse-mortgage RipoffFor an elderly person with few assets, a reverse mortgage can be a lifesaver: It enables cash-poor retirees to tap equity in their house for living expenses, home repairs or health care needs. If you’re 62 or older, reverse mortgages allow you to borrow against the value of your home and not repay the loan until you sell the house, move out or die. If the amount owed is more than the value of the house, the lender eats the difference. If it’s less, you (or your heirs) keep what’s left over after paying off the loan. In the meantime, the loan provides income, which you can take as a lump sum, monthly payout or line of credit drawn on as needed. June 30, 2009
South Milwaukee Accused of Discrimination in Court Fight over ApartmentsThe city is fighting racial discrimination allegations over its attempts to raze an apartment complex in a case that is about to go to trial in federal court. City officials maintain that their opposition to the Lake Bluff Apartments stems from the fact that they were built illegally. The officials also say the discrimination allegations didn’t surface until years after the dispute, now 17 years old, first began to roil the community. June 29, 2009
Thousands Still in FEMA TrailersFour years since the devastation of Hurricane Katrina, there are still nearly 3,000 mobile homes and trailers across the Gulf Coast housing victims of that disaster. In Louisiana, there are 2,100 families living in trailers, most of them homeowners struggling to rebuild their homes, according to figures released by the Federal Emergency Management Agency (FEMA). Mississippi has 781 families in trailers. The numbers are down considerably from the 134,000 temporary trailers and mobile homes that dotted the Gulf Coast immediately after Katrina slammed the area in August 2005, leading to nearly 1,800 dead and thousands more homeless. Some trailer dwellers are also victims of Hurricanes Gustav and Ike, which hit Louisiana last summer. June 29, 2009
New-home Orders up at KB HomeKB Homesaid Friday its new-home orders in the second quarter spiked 59% over first quarter levels, but its financial results still missed Wall Street’s estimates. KB Home (KBH) lost $78.4 million, or $1.03 a share, for the three months ended May 31. In the second fiscal quarter last year the company lost $255.9 million, or $3.30 cents a share. Analysts had expected a smaller loss of 64 cents a share. Their estimates typically exclude one-time items. Quarterly revenue tumbled 40% to $384.5 million. June 29, 2009
MARQUEZ CONFIRMED AS HUD ASSISTANT SECRETARYMercedes Marquez was unanimously confirmed as an Assistant Secretary at the U.S. Department of Housing and Urban Development. As the former general manager of the City of Los Angeles Housing Department (LAHD), Marquez will lead HUD’s Office of Community Planning and Development which administers nearly $8 billion in programs designed to stimulate community development, affordable housing, as well as a variety of special needs assistance programs. June 29, 2009
A Plan to Stem Foreclosures, Buried in a Paper Avalanche June 29, 2009
Your Neighbor’s Open House, Your RightsQ: My wife and I own a condo in a four-unit building. One of our neighbors, who bought the property only two years ago, put her unit on the market in early April. Since then, the listing agent has held three open houses per week — two hours on Tuesdays and three hours on each Saturday and Sunday. This has created quite a bit of interference in our lifestyles in terms of commotion, driveway blocking, etc. In addition, the asking price has been significantly reduced, thus lowering our comparable value… June 29, 2009
New Neighborhood may RiseSoutheast Baltimore has stable neighborhoods such as Canton, Highlandtown, Fells Point, Brewer’s Hill and Greektown. Now there’s an opportunity to create a new neighborhood that could add 3,500 to 4,000 residences to the same part of town over the next 10 years, with a stop on the proposed Red Line as the focal point. The “Highlandtown Loft District” is one suggested name for the neighborhood, which could have some of the character of Baltimore’s Clipper Mill precinct, the vitality of the Station North arts and entertainment district, and the amenities of a new area such as Albemarle Square. June 29, 2009
City to Make Case against Wells FargoBaltimore City will attempt to show a federal judge on Monday that it has lost millions of dollars because of what it contends were racially biased predatory lending practices by Wells Fargo. In what will amount to a mini-trial before U.S. District Judge Benson E. Legg, attorneys for Baltimore and Wells Fargo will present evidence and call witnesses, as the city fights the California-based bank’s motion to dismiss its lawsuit. It is a critical juncture in the city’s suit against the lender, because if Legg allows the case to continue, Baltimore could gain access to Wells Fargo documents and subpoena its employees. That potentially could shine a light on the practices of one of the largest mortgage providers in the region. June 29, 2009
Some Veterans of Recent Wars find Homelessness at Home June 29, 2009
Fifth Avenue Shocker: The Building Wore RedFrank Lloud Wright made his name as an architectural revolutionary, but in the case of the color of his 1959 Guggenheim Museum, he started out waving a flag of red, but ended up with PV020 Buff. The 50th anniversary exhibition now on view will surprise anyone who thinks the spiral is the most startling aspect of his design. Historically, New York’s colors have been red brick and the white and buff of marble, limestone and, in the 1960s, glazed brick. Indeed, we often complain bitterly when someone violates the norm. Thus, the 1962 blue-glazed brick apartment house at Madison Avenue and 65th Street was a target of indignation, as if the ubiquitous white glazed brick was somehow preferable. The building became brown in 2004, ending the argument. June 26, 2009
Montgomery Approves Project Before MoratoriumMontgomery County planners pushed through the approval yesterday for a 497-unit apartment building in downtown Bethesda before a residential development moratorium takes effect, despite concerns about the building’s design and its potential to add students to crowded schools. Board members said their biggest concern was not the looming moratorium but whether the 18-story apartment building at Rugby and Woodmont avenues and a nearby commercial office building at Wisconsin Avenue and Battery Lane would be uninviting bulky structures that would do little to enhance street life in Bethesda’s quiet Woodmont Triangle. June 26, 2009
Mortgage Rates Tick Up, Remain Above LowsRates for 30-year home loans edged up this week, remaining above record lows reached over the spring. The average rate for a 30-year fixed mortgage was 5.42 percent, up from 5.38 percent a week earlier, mortgage company Freddie Mac said Thursday. “Mixed economic reports on the state of the housing market helped hold mortgage rates fairly flat,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. June 26, 2009
Sears Tower to get $350 Million Green RemodelWind turbines, roof gardens and solar panels will join the pair of antennas atop the Sears Tower’s staggered rooftops, said building officials who announced Wednesday that the skyscraper would undergo a $350 million green renovation. The 5-year project would reduce the tower’s electricity use by 80% and save 24 million gallons of water a year, building owners and architects said. Separately, a 50-story, 500-room privately funded luxury hotel with its own green components would be built next to the skyscraper in 3 1/2 to 5 years. June 25, 2009
Durable Goods Orders Surge in May, but New-home Sales DipOrders to factories for big-ticket manufactured goods rose sharply for a second straight month in May, and a key indicator of business investment surged by the largest amount in nearly five years. But another report showed that new-home sales dipped in May, as the bumpy economic recovery continues. The Commerce Department said Wednesday that demand for durable goods rose 1.8% last month, far better than the 0.6% decline that economists expected. It matched the rise in April, with both months posting the best performance since December 2007, when the recession began. June 25, 2009
Reclaiming Blighted NeighborhoodsDavid Brown Kinloch could have lived elsewhere, but he chose to move into an abandoned home in a distressed Louisville neighborhood that others were leaving in droves. In the 25 years since, Brown Kinloch has seen the Phoenix Hill neighborhood transformed from unsightly rows of vacant homes where crime flourished into a model of urban renewal. Under the stewardship of an active neighborhood association, new homes sprung up on weed-infested lots and boarded up houses were renovated. A small park and a communal vegetable garden offer green space. June 25, 2009
Existing Home Sales Rise 2.4% in MaySales of previously owned homes in the United States rose at a slower-than-expected pace in May, an industry survey showed Tuesday, pointing to a sluggish recovery from the severe economic recession.The National Association of Realtors said sales rose 2.4% to an annual rate of 4.77 million units from a downwardly revised 4.66 million pace in April. That compared to market forecasts for a 4.81 million-unit pace. However, sales increased for a second straight month in May. June 24, 2009
City Seeks New Powers in Its Stalled Fight Against HomelessnessIn June 2004, Mayor Michael R. Bloomberg made a lofty promise to address one of the city’s most intractable problems: he would reduce the homeless population of 38,000 by two-thirds in five years. Today, with the total homeless population down only slightly, and with more families in shelters than five years ago, the administration is seeking state approval for a new set of policies designed to move families out more quickly, applying the same market-driven, incentive-based philosophy to homeless shelters that it has used in schools and antipoverty programs. June 24, 2009
Not Paying the Mortgage, Yet Stuck With the KeysA growing number of American homeowners are falling into financial limbo: They’re badly behind on payments, but their banks have not yet foreclosed. The backlog of seriously delinquent mortgages, which so far affects about 1 million borrowers, is a shadow over hopes for a rebound in the nation’s housing markets. It masks the full extent of the foreclosure crisis and threatens to depress prices even further just as some parts of the country are hinting at recovery. For lenders, it could portend even more financial losses tied to the mortgage meltdown June 24, 2009
Thousands in Md. Risk Losing Utility ServiceThousands of Maryland residents are in danger of having their utility service terminated because of overdue bills, company representatives said. After thousands of complaints of sky-high bills this winter, the Maryland Public Service Commission ordered five utility companies - BGE, Pepco, Delmarva, Allegheny Power and Washington Gas Light - to work out payment plans with customers before sending turnoff notices. About 50,000 Baltimore Gas and Electric customers successfully began interest-free payment plans, but about 74,000 remained at risk of termination as of Friday, said a company spokesman, Robert Gould. June 24, 2009
Former C.J. Peete Site in New Orleans Ready for HomesConstruction will begin Monday in Central City on 10 of 50 single-family homes that will be sold to low-income families, with preference given to former public housing tenants. In a formal groundbreaking ceremony Tuesday, federal and local housing officials gathered on Magnolia Street in the shadow of two prototype homes built by the New Orleans Neighborhood Development Collaborative, one of the developers of Harmony Oaks, which will be built on the site of the demolished C.J. Peete public housing complex. June 24, 2009
Lost Jobs Forcing more out of HomesThe nation’s foreclosure crisis — once largely confined to only a few corners of the country — is spreading to new areas as the economy teeters. The foreclosure rates in 40 of the nation’s counties that have the most households have already doubled from last year, a USA TODAY analysis of data from the listing firm RealtyTrac shows. Most were in areas far removed from the avalanche of bad mortgages and lost homes that have hammered the U.S. housing market. Among the new areas: Boise and Green Bay, Wis. June 23, 2009
HUD TO OFFER HOUSING ASSISTANCE TO 4,000 AMERICANS WITH DISABILITIESThe U.S. Department of Housing and Urban Development today joined President Obama’s commemoration of the tenth anniversary of the Supreme Court’s Olmstead decision by announcing that it will offer rental assistance to 4,000 non-elderly families with disabilities, including 1,000 vouchers specifically targeted to those transitioning out of nursing homes and other care facilities. Through its funding notice, HUD is seeking comment from public housing authorities and others to ensure this critically needed assistance is distributed and administered in the most effective manner possible. Today’s announcement coincides with the tenth anniversary of the Supreme Court’s ruling in Olmstead v. L.C. & E.W. which affirmed the rights of individuals with disabilities to live independently. To commemorate this landmark decision, President Obama declared 2009 the Year of Community Living. June 23, 2009
Tax Credit for Home Purchase could RiseLawmakers and businesses are calling for expansion of a tax credit for first-time home buyers that has helped spark home sales in an otherwise dismal real estate market. With the tax credit scheduled to expire in fall, some business groups say the amount of the credit, now capped at $8,000, should be raised to $15,000 and applied to anyone who buys a home. First-time buyers make up a hefty 40% of home purchases, according to the National Association of Realtors (NAR), which is about 5 percentage points higher than the historical average. June 22, 2009
Selective Code Enforcement Raises Fairness QuestionsWest 25th Street Envy Lounge owner Zlantan Miskan better known as “Z” to friends and customers says that he has received more than his share of citations in the past year since Ari Maron purchased a strip of property where a development project is soon scheduled to begin in Ohio City. While tapping on the “No Dancing” sign posted in plain view of the lounge entranceway, “at least be fair,” he said. Mr. “Z” stated, “the same thing that’s going on in Tremont is going on over here. If you’re going to cite me for doing something then go down the street and cite everybody. They’re trying to run me out so that they can make this a yuppie neighborhood” June 22, 2009
HUD OFFERS $4 MILLION FOR HEALTHY HOMES RESEARCHThe U.S. Department of Housing and Urban Development today announced that $4 million is available to improve methods to detect and control lead-based paint, mold and other housing-related safety hazards that harm children. These grants will be awarded competitively to multiple Academic and non-profit institutions, State, Tribal or local governments that advance the recognition and control of residential health and safety hazards or improve our understanding of the link between housing and health. June 22, 2009
Getting Transferred? Securing a Mortgage Could Be Harder.Real estate may be showing signs of a turnaround in many local markets, but the nation’s largest mortgage players are continuing to ratchet up their underwriting rules, making home purchases more difficult for some buyers. Mortgage giant Fannie Mae, for example, issued a laundry list of tougher policies on June 8 that could directly affect thousands of buyers in the coming months, especially those involved in job-related transfers. June 22, 2009
For Maryland Condo Owners, Misfortune Just Got More ExpensiveEffective June 1, Maryland condominium owners may have to pay up to $5,000 if a fire or other hazard causes damage within their own unit. Equally important, if the proper disclosures about a new insurance law are not given to a prospective buyer, the real estate sales contract is not enforceable.A brief bit of background is important. Last year, the Maryland Court of Appeals (the highest court in the state) ruled that condo associations are not required to repair or replace property inside owners’ units if it is damaged. For years, many condominium associations obtained what is known as a “single-entity” insurance coverage. The “master policy” would pay the association to repair and replace certain damage — both in the common elements as well as within a unit itself, subject to any deductible spelled out in the policy. June 22, 2009
Live-in Curators Fix up Historic, often run-down woodland housesWhen Nora O’Brien hosts guests at the secluded Victorian farmhouse she has painstakingly restored, friends have been known to carp about the deafening chorus of summertime tree frogs. “I’ve had dinner parties where people say, ‘Can’t you make them shut up?’ ” said the 49-year-old landscape company owner and mother of three. But she and dozens of other families across the state are willing to put up with such inconveniences. For them, living rent-free inside a Maryland state park outweighs getting chased by skunks, startled by snakes or clearing horse droppings from unpaved driveways that double as public riding trails. June 22, 2009
‘Vanilla’ Home Loans could help BorrowersIf President Barack Obama gets his way, consumers who take out mortgages would automatically get a “plain vanilla” loan - such as a traditional 30-year fixed-rate mortgage - unless they opted for a riskier variety. Obama’s plan to revamp financial regulation aims to protect borrowers from the confusing and high-risk mortgages that fed a pandemic of delinquencies and foreclosures, led to the worst financial crisis in decades and thrust the nation into a deep recession. June 22, 2009
Where will Housing be in 2012?Americans have not seen a boring housing market since the last millennium. You know — the average, ordinary kind of market where supply just about matches demand, prices are steady, and real estate ceases to be a topic of daily conversation. Instead, we’ve had six years of upside craziness followed by three years of downside terror. Now we’re in a tug-of-war between those who think we’ve finally found a bottom and those who are convinced that the overhang of unsold homes is going to push prices considerably lower. June 22, 2009
Mortgage Foreclosures Heading through the RoofThe Obama administration’s $75 billion program to reduce foreclosures has been beset by backlogs and delays, leading many overstretched homeowners to complain about unreturned phone calls and inaccurate information from lenders, while others say they were denied help for reasons that weren’t clear. Details of the plan were unveiled in early March. The goal is to prevent up to 4 million foreclosures by having banks modify loans into more affordable monthly payments. Since its debut, the plan has led to offers of more than 190,000 mortgage modifications with lower monthly payments, according to the Treasury Department. June 20, 2009
Firefighters See Cuts Eroding SafetyThousands of firefighters across the country face possible layoffs this year, prompting concern that deep local government budget cuts will delay emergency response times. Since late last year, cities have been forced to shutter local fire stations, reduce services at others and cut the number of firefighters dispatched on emergency calls. Firefighting positions have been eliminated or are on the chopping block in cities such as Orlando, Atlanta, Flint, Mich., and Columbus, Ohio. “Whatever you do that results in increasing response times (to fires), you are absolutely playing Russian roulette,” says Harold Schaitberger, head of the International Association of Firefighters (IAFF). June 20, 2009
HUD and VA announce $75 million for HUD-VASH program to provide rental housing and support for homeless veteransThe United States Interagency Council on Homelessness (USICH) met today for the first time under the Obama Administration. U.S. Secretary of Veterans Affairs Eric K. Shinseki chaired the meeting, at which U.S. Housing and Urban Development Secretary Shaun Donovan was elected rotating Chair for the upcoming year and U.S. Labor Secretary Hilda Solis was elected Vice Chair. U.S. Health and Human Services Secretary Kathleen Sebelius and Melody Barnes, Director of the White House Domestic Policy Council, attended the meeting. The mission of the USICH is to coordinate the federal response to homelessness and to create a national partnership with every level of government and the private sector to address homelessness in the nation. June 20, 2009
Plan to give House to Triple-Amputee Veteran Collapses“We’re shocked,” said John Gonsalves, the founder of Homes for Our Troops, which has helped build 40 houses for injured veterans in 30 states. “It’s disappointing anyone would take advantage of a community’s big heart this way.” A tearful Lakeisa Battle said the family didn’t know they had to disclose their ownership of other properties, which she said they bought as investments after arrangements for the Anne Arundel County home were set. The tangled story began in 2007, when Battle - an infantry private who was born in La Plata and graduated from the Freestate Challenge Academy at Aberdeen Proving Ground - was deployed to Iraq. June 20, 2009
Mortgage Rates Fall Back from 7-month HighRates for 30-year home loans fell back this week after soaring to the highest level in seven months a week earlier. The average rate for a 30-year fixed mortgage was 5.38 percent this week, down from 5.59 percent a week earlier, mortgage company Freddie Mac said. Rates had risen for three consecutive weeks after yields on long-term government debt, which are closely tied to mortgages rates, had been climbing as investors worried that the huge surplus of government debt hitting the market could trigger inflation. June 20, 2009
New Rules Give Buyers More Protection at ClosingIf you’re applying for a loan to purchase a primary or secondary home, or planning to refinance, you should be aware of a little-publicized new set of federal consumer-protection rules that takes effect July 30. Among other key changes, the new Federal Reserve guidelines require lenders to give you initial disclosures of your mortgage costs within three business days of your loan application. If you don’t get them, you can pull the plug. June 20, 2009
HUD OFFERS $58 MILLION FOR HOUSING COUNSELINGThe U.S. Department of Housing and Urban Development today announced that more than $58 million is available for a broad range of housing counseling programs to help families find and preserve housing. The funding is an increase of $11 million, or 23 percent, over last year. These grants will be awarded competitively to hundreds of HUD-approved counseling agencies and State Housing Finance Agencies that offer a variety of services including how to purchase or rent a home, how to avoid foreclosure, how to improve credit scores, and how to qualify for a reverse mortgage. June 18, 2009
New Website Offers Translation of HUD Vital Documents for FreeThe U.S. Department of Housing and Urban Development (HUD) today unveiled an enhanced website to promote equal access to housing programs by providing important HUD documents in 12 different languages. HUD’s expanded Limited English Proficiency (LEP) website features factsheets, housing brochures and other forms in Amharic, Arabic, Armenian, Cambodian, Chinese, Farsi, French, Korean, Portuguese, Spanish, Tagalog, and Vietnamese, in addition to English. June 18, 2009
Evictions Questioned in the BronxShekila Kemp was living on public assistance and struggling financially when she received notice last year that she was facing eviction from her Bronx apartment for failing to pay the rent. She fought the case, but learned months later that there was a serious problem with the paperwork filed against her in Housing Court. The Bronx lawyer who claimed to represent the landlord, Robert Klein, is listed in the court papers as having an office at 2925 Mickle Avenue in the Bronx. There are no Robert Kleins at that address registered to practice law in New York State, according to the state’s Office of Court Administration. Longtime lawyers for tenants and landlords in the Bronx say they do not know him. June 18, 2009
Subpoenas Issued to Landlords Who Rented to CouncilmanFederal investigators have begun issuing subpoenas to landlords who leased space to City Councilman Larry B. Seabrook and several nonprofit groups closely linked to him after a published report last week that the groups had billed New York City more than $100,000 in inflated rent payments. At least one of the landlords confirmed receiving a subpoena this week from the Justice Department but said he was instructed not to discuss it. “I got it, that’s all I can say,” said Herb Brooks, who leases a building at 3687 White Plains Road in the Bronx and sublets it to Mr. Seabrook for his City Council district office and for nonprofit groups linked to him. June 18, 2009
Urban Farming, a Bit Closer to the SunThis summer, Tony Tomelden hopes to be making bloody marys at the Pug in Washington, D.C., with tomatoes and chilies grown above the bar, thanks to the city’s incentives for green roofs. Mr. Tomelden, the Pug’s principal owner, says he’s planting a garden to take advantage of tax subsidies the city offers in his neighborhood if he covers his roof with plants. “If I can do something in my corner for the environment, that seemed a reasonable thing to do,” he said. “Plus I can save money on the tomatoes.” June 18, 2009
Judge Denies Bid to Evict Essex FamilyAn Essex family staved off eviction Monday when a District Court judge declined Baltimore County’s request that he order the family off the property. Judge Norman R. Stone III told an attorney representing the county that the issues involved in the case were too complex for easy resolution and that county officials had not proved they were entitled to remove James M. Schneider, his wife and their children from their home without helping them relocate.“I wish I could put a stake through the heart of this case,” Stone said, “but I can’t.” June 18, 2009
Rising Mortgage Rates Dampen Home Builder Sentiment in JuneHomebuilder sentiment slipped in June, a private survey showed Monday, as higher mortgage rates and an ongoing credit crunch damped expectations for the sector. The National Association of Home Builders/Wells Fargo Housing Index slipped to 15 from 16 in May. Analysts had expected the index to climb one point. The deep slump in the U.S. housing market has shown some signs of abating. However, the NAHB said consumer anxiety over jobs and the economy’s health has created an uncertain picture for the sector’s recovery. June 16, 2009
Chinese Drywall Lawsuits to be Consolidated in Federal Court in New OrleansA panel of federal judges ruled Monday that lawsuits filed around the country against home builders, suppliers and manufacturers of Chinese drywall be moved to New Orleans, where U.S. District Judge Eldon Fallon will preside over discovery and pre-trial hearings. By transferring all of the cases to federal court in New Orleans, the judicial panel tried to ensure that lawyers for both the plaintiffs and the defense would not have to duplicate their efforts in multiple courts during discovery. The panel also wanted to prevent judges in different districts from handing down inconsistent rulings. June 16, 2009
Myrna Fights Foreclosure in Queens, NYMyrna is in her 70’s and lives in the home she shared with her husband who passed away in 2000. The house was paid off, but she took out an equity for some repairs. She was never asked about any income, and did not know how much her payment would be until she received her statement for 00 a month. She is retired and on a fixed income, and is facing foreclosure. June 16, 2009
Bend Foreclosures on the Rise; Squatters Take AdvantageAs more houses in Central Oregon and nationwide fall into foreclosure and sit empty, a new problem is creeping up: Squatters are breaking in and doing drugs, lighting fires, leaving a mess - and police are having a hard time finding them all. Squatters in Bend are either transients looking for shelter or kids looking for a place to party, officers said Monday. Police and local Realtors agree the problem is getting out of hand, now that the housing bubble has burst. June 16, 2009
As Moratoriums Expire, Home Ejectments ClimbEven as Philadelphia’s cutting-edge efforts to stem foreclosures are being widely copied, the number of ejectments and evictions that result from foreclosures seems to be growing here, the city Sheriff’s Office said yesterday. Ejectments - in which homeowners are ordered to vacate properties sold at sheriff’s sale - more than doubled, from 47 in January to 107 in April, spokeswoman Wanda D. Davis said. And in the first 11 days of June alone, there were 49, she said, adding, “Ejectments have backed up.” No data were available on evictions of tenants from foreclosed rental properties, although these, too, appear to be increasing, Davis said. Evictions are handled by officers of the Municipal Landlord Tenant Court, rather than by the Sheriff’s Office. June 16, 2009
Monterey County’s only Safe House for Abused Women at RiskThe Department of Public Health estimates 105,000 people across California would lose access to emergency shelter, food, clothing, counseling, transitional housing and legal assistance. “It will leave women who face severe domestic violence much more vulnerable,” said Elliot Robinson, director of the county’s Department of Social Services. “A confidential shelter is an important tool to help them escape the violence and move on the road toward rediscovering life.” The proposed state budget would leave YWCA of Monterey County without $202,000 in state funding for its shelter and other programs. June 16, 2009
London Mansion Seized in ForeclosureA seven-bedroom house in London’s swanky Mayfair neighborhood has been repossessed, in what analysts said is believed to be Britain’s largest foreclosure. The house belonged to Cevdet Caner, who bought it in 2007 for 16 million pounds ($24 million) and spent a few million more fixing it up, The Daily Mail reported. Caner put the house on the market in December but had no luck finding a buyer. Caner was chief executive officer of Level One, a Monaco-based company that developed low-cost housing in Germany. The company declared bankruptcy last year, reporting it owed 1.2 billion pounds ($1.8 billion). June 16, 2009
Penetrating the Maze of Mortgage ReliefSince President Obama unveiled a mortgage modification program in March to help people who are at risk of losing their homes, housing counselors in the New York area have fielded hundreds of calls along the lines of: “How do I get one of those 2 percent mortgages?” The answer has often been, “Well, it’s not that simple.” Housing advocates who work with homeowners in foreclosure or on the verge of it say that while the loan modification program could help thousands of New Yorkers, it has been slow to get off the ground and a majority of people who have applied for help have yet to hear whether they will receive it.One thing is clear: Homeowners who have a HUD-approved housing counselor championing their cause are more likely to get a modification than those who try it on their own. June 15, 2009
Issue of Property Rights Is Likely to Arise in Sotomayor’s Confirmation HearingsSupreme Court nominees almost never comment on recent decisions from the court they hope to join. But both Chief Justice John G. Roberts Jr. and Justice Samuel A. Alito Jr. broke with protocol and perhaps prudence at their confirmation hearings when it came to a decision that had been issued just months before, Kelo v. City of New London. Without quite saying Kelo had been incorrectly decided, both men, at the time federal appeals court judges, spoke at length about their doubts concerning its wisdom and consequences. The decision, a 5-to-4 ruling in 2005, allowed local governments to take private property for business development and provoked outrage across the political spectrum. June 15, 2009
Lawmakers Move To Expand Buyer CreditIf first-time buyers are getting thousands of dollars in tax credits from the federal government to stimulate the economy, why shouldn’t all home buyers get equal treatment? And what about refinancers? Couldn’t they make good use of a tax credit to help defray closing costs and loan fees?Whatever your thoughts on these questions, there is an effort getting underway in Congress to extend tax credits to anyone who buys a new or existing home in the coming year, with no income limitations. In one case, legislation would even create a new “temporary” $3,000 tax credit to help defray the costs of refinancing mortgages on principal residences. June 15, 2009
Even as You Stare Down Documents at Settlement, Be Ready for Disaster at HomeQ: Last year my wife and I bought a new home. A couple of weeks later, the town where we live was heavily damaged by a tornado and strong straight-line winds. Our neighborhood was particularly hard hit, with at least two homes destroyed. Our house sustained damage as well, and we received a fair insurance settlement to make necessary repairs. We have a mortgage, and the insurance check was made out to us and to the mortgage company. We were informed that the lender would distribute the insurance proceeds only after it receives estimates from contractors and itemized lists of the cost of materials and labor. June 15, 2009
Warren Uses Grant to Trim too-tall Grass at ForeclosuresThe foreclosure crisis is littering metro Detroit with unoccupied properties and forcing local governments to ramp up their maintenance efforts. According to Fouts, tall grass on vacant and foreclosed properties can turn stable neighborhoods into havens for vermin and eventually crime. The City of Warren already had hired three contractors through its normal bid process, but the expanding number of foreclosed properties in the city is adding to the workload. There are 1,219 foreclosed homes in Warren, according to the city’s Web site. June 15, 2009
Mayors Helping to Solve Housing CrisisCommunities across the country are struggling with the fallout of the foreclosure crisis. While President Obama has announced a major program to help families facing foreclosure, implementation has been slow, and Congress has failed to enact bankruptcy protections that would have facilitated more mortgage modifications. With limited federal solutions, mayors across the country are considering innovative measures to address the problem in their local communities. Mayors did not cause this crisis, but they are stepping up to solve it. June 15, 2009
Are Lower Foreclosure Rates Here To Stay?The states that suffered the brunt of the bubble burst continue to lead the nation in foreclosure rates, according to the RealtyTrac report. In fact, just over three quarters of the foreclosure activity in the United States is taking place in the ten states most affected by the bursting of the housing bubble. In the top three foreclosure states — Nevada, California, and Florida — there are foreclosure pockets with rates far above the national average. In Las Vegas, for example, “one in every 54 housing units — more than seven times the national average” received foreclosure filings. June 15, 2009
Making New Memories in the Old HomesteadThe old house — the red brick one on Park Road NW, next to the new Giant supermarket — was once filled with the laughter of a little girl who tugged on her grandmother’s apron. Yesterday, Sandy Paregol giggled and cried with delight as she walked through the 109-year-old Columbia Heights townhouse for the first time in 45 years, a visit arranged after she sent the owner a letter. June 15, 2009
HUD’s 2010 Budget SummaryThe HUD budget will put in place systemic reform and policy innovation, and harness private sector capital and talent as well as new kinds of partnership and collaboration to respond to the nation’s housing crisis, address new national priorities, and change the way HUD does business. June 14, 2009
Homeowner Associations Start Foreclosures to Collect DuesThousands of Americans who have generally kept up with their mortgages are still in danger of losing their homes because they made a fateful trade-off in this shaky economy: They let their homeowner association dues slide. Many homeowners are learning to their surprise that condo and neighborhood associations that oversee security patrols, mow lawns, plant flowers and clean the community swimming pool might have the right to foreclose when dues aren’t paid. That right is often written into the purchase agreement signed by the homeowner. June 12, 2009
Savvy Home Shoppers can Save at SettlementHome buyers dicker about appliances, cabinet styles and the move-in date but often question little when it comes to a pricey part of their purchase. Closing costs — fees paid at settlement — can add up to thousands of dollars. Yet, the costs and settlement process are mysterious for many. Half of mortgage applicants in a 2007 Federal Trade Commission study could not identify their loan amount on settlement forms. June 12, 2009
Foreclosure Rate Dips in May, but Remains HighThe pace of foreclosures remains at a historic high and mortgage demand is tumbling as interest rates climb, reflecting a wobbly housing recovery that could falter if rates continue to rise. While foreclosure filings dipped 6% in May compared with a month earlier, the overall pace of foreclosures was still the third-highest month on record, according to a report today from RealtyTrac. Foreclosure filings were reported on 321,480 homes during May, an increase of 18% from May 2008. One in every 398 homes received a foreclosure filing last month. June 11, 2009
HUD SUSPENDS THREE LENDERS FROM FHAThe U.S. Department of Housing and Urban Development’s Mortgagee Review Board has suspended three lenders based on evidence of serious violations under HUD’s regulations. The three lenders are Golden First Mortgage Corp of Great Neck, NY; Great Country Mortgage Bankers, Inc. of Coral Gables, FL; and Beneficial Mortgage Corporation of San Juan, PR. Lenders subject to suspension are prohibited from originating new FHA-insured mortgages pending completion of HUD’s investigation into their lending practices. The Board found that Golden First Mortgage (GFM) failed to notify HUD/FHA of an investigation by the Office of Thrift Supervision (OTS) into the business activities of the company’s president, including his involvement in a civil money penalty with OTS. June 11, 2009
DONOVAN ANNOUNCES $3.7 BILLION IN DISASTER ASSISTANCE TO 11 STATES IMPACTED BY 2008 NATURAL DISASTERS June 11, 2009
U.S. Tax Credit May Help You Buy HouseYou might be able to use the $8,000 first-time homebuyer credit to buy your house, instead of having to purchase the house first and then claim the credit on your tax return. The U.S. Department of Housing and Urban Development says that the tax credit can be applied to cover purchase costs, including in certain cases the down payment, if you are taking out a mortgage insured by the Federal Housing Administration. This doesn’t apply to other types of mortgages. June 11, 2009
ICF’s Oversight of Road Home Program Comes to an EndThree years after state officials hired a Virginia company to run the largest disaster recovery program in U.S. history, the Road Home can be seen as a force for both ruin and rebuilding. As ICF International’s contract ends Thursday, the company is generally reviled by Louisianians and essentially banned from new business with the state, but walks away $900 million richer and holding lucrative contracts with governments across the country. The program’s slow start and poor initial performance torpedoed former Gov. Kathleen Blanco’s political career, but because of that delay, the last year has seen a burst of home-building that has buffered Louisiana from some national economic forces, something that hasn’t hurt Blanco’s successor, Gov. Bobby Jindal. June 11, 2009
HUD AND ACTING SURGEON GENERAL UNVEIL NATIONAL STRATEGY TO PRODUCE HEALTHY HOMESThere must be a coordinated national effort to produce healthier housing. That was the central message from U.S. Housing and Urban Development Deputy Secretary Ron Sims and Acting Surgeon General Steven K. Galson as they issued a national ‘call to action’ to confront the prevalence of home-related preventable diseases such as lead poisoning and asthma. During a news conference at the National Building Museum, Sims and Galson unveiled HUD’s Healthy Homes Strategic Plan and the Surgeon General’s Call to Action to Promote Healthy Homes as a coordinated effort with other public and private partners to stimulate a national dialogue about creating healthier homes. June 10, 2009
Localities Aid Developers, but Critics Cry ‘Bailouts’On a stunning bluff overlooking the Pacific Ocean near Los Angeles, a new luxury hotel and golf resort are ready to open. But, first, they need a little help from taxpayers. Like a growing number of businesses, the swank Terranea resort knocked on the door of City Hall for financial aid. The developer asked for, and received, an $8 million loan from the city of Rancho Palos Verdes, Calif., to finance the cost of opening the resort Friday. June 9, 2009
Localities Aid Developers, but Critics Cry ‘Bailouts’On a stunning bluff overlooking the Pacific Ocean near Los Angeles, a new luxury hotel and golf resort are ready to open. But, first, they need a little help from taxpayers. Like a growing number of businesses, the swank Terranea resort knocked on the door of City Hall for financial aid. The developer asked for, and received, an $8 million loan from the city of Rancho Palos Verdes, Calif., to finance the cost of opening the resort Friday. June 9, 2009
Foreclosure Crisis Spreads from Subprime to Prime MortgagesThe pace of prime borrowers going into foreclosure is accelerating, especially in states with mounting unemployment or property values that saw a big run-up during the housing boom. It’s a marked shift from earlier this year, when foreclosures were driven by defaults on subprime loans. And it has major implications — ravaging the credit scores of borrowers who once had unblemished records and dragging down property values in more affluent neighborhoods. It also threatens to undermine the housing recovery. June 9, 2009
HUD and Fair Housing Group Partner to Fight Foreclosures and DiscriminationToday, Department of Housing and Urban Development (HUD) Secretary Shaun Donovan and the National Fair Housing Alliance (NFHA) rolled out their national media campaign to fight foreclosures and discrimination. NFHA and HUD have partnered to create a national media campaign that informs consumers about alternatives to foreclosure, how to avoid predatory loan terms and how to recognize and report rental discrimination. NFHA’s members nationwide, the Leadership Conference on Civil Rights, and other groups will assist with distributing the materials. June 9, 2009
Honk if You Think It’s OverThe panic in the Manhattan real estate market of the winter of 2009 lifted in the last few weeks, brokers say, as more and more buyers and sellers have found the courage and the comfort level to sign on the dotted line. A bidding war has even occasionally broken out, though at prices far below those of a year ago, and often considerably below asking price. There is considerable room for skepticism, since the number of closed sales filed with the city remains near the lowest level in many years. Prices are still down as much as 30 percent and show no signs of rising, low-ball offers remain common and some of these latest deals may never come to fruition. But brokers say the climate has definitely changed, producing sales at all price points, as some buyers, tired of looking and waiting, are seizing the moment. Suddenly, brokers say, it is exciting to be in real estate again. June 9, 2009
More People Homeless in BaltimoreBaltimore’s homeless population is on the rise, a study released Monday shows, bolstering Mayor Sheila Dixon’s case for spending millions on year-round emergency shelters and the construction of a proposed permanent facility. The census, conducted Jan. 22, found 3,419 homeless people, including those who live in shelters as well as more than 1,000 street dwellers. The total was up 12 percent from two years ago, and nearly 28 percent since the census began in 2003. The U.S. Department of Housing and Urban Development requires the biannual survey for federal funding. June 9, 2009
Parents Pulling the Plugs on Williamsburg Trust-FundersFamed for its concentration of heavily subsidized 20-something residents — also nicknamed trust-funders or trustafarians — Williamsburg is showing signs of trouble. Parents whose money helped fuel one of the city’s most radical gentrifications in recent years have stopped buying their children new luxury condos, subsidizing rents and providing cash to spend at Bedford Avenue’s boutiques and coffee houses. For 18 months after graduating from Colby College, Jack Drury, 24, lived the way many Williamsburg residents do: He followed his passions, working in satellite radio and playing guitar. He earned money as a bicycle messenger and, on occasion, turned to his parents for money. June 8, 2009
Insight From Inside the Mortgage Crisis“Busted: Life Inside the Great Mortgage Meltdown” (W.W. Norton, $25.95) by Edmund L. Andrews is the story of how a well-educated, highly paid economics reporter for the New York Times, whose beat includes covering the Federal Reserve, ended up with almost a half-million-dollar mortgage that he and his wife, Patty, couldn’t afford. Unfortunately, a rather regrettable omission mars this intriguing personal account. Andrews failed to mention that his wife had filed for bankruptcy — twice. She filed once to get out from under debt accumulated because of her failed first marriage and a second time to again shed debt amassed while raising four children as a single mother with little, if any, child support. June 8, 2009
Closing Cash From Uncle SamThe Obama administration has put out the official word: Starting soon, first-time home buyers will be able to turn their $8,000 federal tax credits into cash for use at closing if they use Federal Housing Administration mortgage financing. But in its final guidelines to lenders and buyers issued May 29, the Department of Housing and Urban Development clarified that purchasers obtaining FHA loans through private lenders will have to invest at least some of their own funds — whether from personal savings or gifts from relatives — in the form of a minimum 3.5 percent down payment. June 8, 2009
Who Qualifies For Home Buyers’ Tax Credit?Q: I recently read that if my spouse or I did not own a home in the three years before settling on a new home, we are entitled to claim a tax credit of up to $8,000. I own a condo, but my husband has never owned a home. We just signed a contract to purchase a home and settlement will take place within the next few weeks. Are we eligible for this credit? June 8, 2009
Maryland Builder Leaves Buyers FumingAll are complaints against Altieri Homes, a family-owned business that has built hundreds of houses in Maryland and Pennsylvania over the past decade but now faces numerous lawsuits and complaints. On Friday, Maryland’s attorney general announced charges against the Columbia-based builder for either failing to start or finish construction of at least 20 homes in Harford and Howard counties after taking deposits and payments. Against the backdrop of a recession and the worst real estate market in decades, the homeowners’ battle provides a cautionary tale. June 8, 2009
Can’t Refinance? Call Your CongressmanCan’t afford your mortgage payment? If the bank won’t take your call, your member of Congress just might. Several lawmakers whose districts are drowning in foreclosures are taking unprecedented steps to help people stay in their homes, including picking up the phone themselves to negotiate with banks on behalf of their constituents. The pain of being put on hold for an eternity can be an educating experience for a member of Congress. June 8, 2009
Katrina Victims Will Not Have to Vacate TrailersHurricane Katrina victims around the Gulf Coast who were told to vacate their temporary trailers by the end of May will instead be allowed to buy them for $5 or less, White House officials announced on Wednesday. The Department of Housing and Urban Development will also give the 3,450 families still in trailers or temporary housing — including many elderly, poor and disabled people — priority for $50 million in permanent housing vouchers. The money for the vouchers was appropriated by Congress last year. June 6, 2009
Mortgage Crisis Robbing Seniors of Golden YearsHoward Weiss is 77 and scared. This year, the semiretired distributor from Phoenix ran into financial problems and stopped making his mortgage payments. He was told his home was scheduled for a foreclosure auction in May. So Weiss scraped together more than $2,000 to stave off the foreclosure. He’s still trying to figure out if he can get a mortgage modification so he can afford his home. “This is the biggest mess I’ve had in my life,” Weiss says. “I could break down and cry. I was about to lose everything. I’ve been through (the Korean War), through a lot of crises. Now I’ve turned everything over to the Lord. … I’m so stressed this is going to kill me.” June 5, 2009
Mortgage Rates Rise to 6-month High Above 5%Mortgage rates have risen to their highest levels in six months, threatening to delay a housing turnaround by discouraging potential home buyers. The average rate on a 30-year, fixed-rate home loan climbed to 5.29% for the week ended Thursday, Freddie Mac reported. That’s the highest since December and up from 4.91% a week earlier. In early and late April, the rate was at a record low: 4.78%. June 5, 2009
Nine Accused in $92 Million New York Mortgage FraudNine people have been indicted on charges of conspiring to defraud Washington Mutual Bank and DLJ Mortgage Capital, a unit of Credit Suisse Group, in a $92 million mortgage fraud, prosecutors said Thursday. Real estate developer Thomas Kontogiannis, 60, and eight other defendants are accused of orchestrating fraudulent loans that were subsequently sold to the financial firms. Federal prosecutors and the FBI say the scheme centered on property that Kontogiannis bought and subdivided from 2001 to 2003 in the New York City boroughs of Brooklyn and Queens. June 5, 2009
SEC Charges ex-Countrywide CEO Mozilo with FraudFormer Countrywide Financial CEO Angelo Mozilo and two other former officials of the mortgage giant were charged with fraud by federal regulators Thursday in the first government lawsuit against top corporate executives for actions related to the financial crisis. The Securities and Exchange Commission accused Mozilo, 70; former Countrywide CFO Eric Sieracki, 52; and David Sambol, 49, former president, of falsely leading investors to believe the mortgage giant had avoided subprime-lending mistakes, even as Countrywide issued “riskier and riskier” loans. June 5, 2009
Altieri Homes Faces ChargesColumbia-based home builder Altieri Homes has been charged by Maryland’s attorney general with taking deposits and payments from at least 20 homebuyers in Howard and Harford counties but failing to either start or finish building the homes, The Baltimore Sun learned late Thursday. The charges, by a unit of the Consumer Protection Division, also say the regional builder, with custom-home developments in Maryland and Pennsylvania, failed to pay subcontractors or refund consumers’ deposits or advance payments, a spokeswoman for the attorney general’s office said. The attorney general’s office is expected to announce the charges today, said spokeswoman Raquel Guillory. June 5, 2009
Tony Vegas Development Struggles in DownturnIt was a symbol of Las Vegas largesse during the good times. Now it’s an emblem of recession blues.With a manmade lake in the desert, an Italian-style village beyond the suburban sprawl and neighborhoods fit for diva Celine Dion, the Lake Las Vegas resort development flouted good sense and modesty in the tradition of all great Las Vegas dreams. But it has fast turned sour for some. June 5, 2009
AP: FEMA May put Storm Victims in Foreclosed HomesThe federal government is exploring how to put Florida hurricane evacuees in foreclosed homes if a Katrina-like storm devastates the region and shelters, hotels and other housing options are full.Officials told the Associated Press on Tuesday that it is an effort to find some usefulness in the foreclosure crisis and keep people close to their homes and communities instead of scattering them around the country, which happened when Hurricane Katrina devastated New Orleans and other parts of coastal Louisiana and Mississippi almost four years ago. Thousands of victims who lost their homes in the storm moved to Houston, Atlanta and other cities, and many never returned. New Orleans has been slow to recover, partly because of the lost population. June 4, 2009
A Fluid Definition of Self-Sufficiency June 4, 2009
In Hard Times, a Harlem Church Still Raises FundsHolding a gala fund-raiser is never easy in a recession. But it was going to be especially difficult for the Abyssinian Development Corporation, an arm of Harlem’s Abyssinian Baptist Church: For two decades, the corporation has depended heavily on the financial industry to help sustain its real estate ventures and outreach projects through the year. This year, when corporation officials were planning a party, they lowered their expectations and added some levity. Instead of renting a dramatic space at City College or the Waldorf-Astoria, they pitched a white tent on the playground of Public School 175. They planned for fewer guests and booked Ray Chew and the Crew so guests could rumba and Lindy Hop their recession worries away. June 4, 2009
Urban Gardens Ease Bills, Brighten CityscapeEvery little bit helps for Earlean White’s family. The neighborhood garden a block from her home was the source of fresh tomatoes, cucumbers and peppers for her family last summer. So on a recent sunny Saturday, White, 48, enlisted two of her kids — Katherine White, 9, and David Smith, 13 — and her grandson Robert Puritan, 8, to start planting for this year’s growing season. White says the garden helps ease her grocery bill and “helps the community and makes it look better.” June 3, 2009
Cities Cleaning, ‘Greening’ Urban AlleysCities are starting to see the thousands of miles of alleyways that line the backside of homes and buildings in a new light. Rather than dismissing them as dark, dank and often dangerous spots used mainly for trash pickup and garage access, they’re treating them as valuable real estate that can help the environment and improve city life. Cities are getting rid of unsightly trash bins and creating things such as gardens and sidewalk cafes to attract people to these long-ignored spaces. In many cities, alleys are being resurfaced with porous materials that can absorb rainwater and reduce runoff. June 3, 2009
Promised Help Is Elusive for Some HomeownersShe had seen the advertisements for the new government program offering relief. She had heard President Obama promise that help was on the way for homeowners like her, people who had lost jobs and could no longer make their mortgage payments. But when Eileen Ulery called her mortgage company — Countrywide, now part of Bank of America — the bank did not offer to alter her mortgage. Rather, the bank tried to sell her a new loan with a slightly lower monthly payment while asking her to pay $13,000 toward the principal and a fresh $5,000 in fees. June 3, 2009
SC Slave Cabins Were Home to Family Through ’60sEighty-six-year-old Johnnie Leach leans on his cane as he sits in warm sunshine on the steps of the old slave cabin where he raised 13 children four decades ago. Despite the humble setting and the terrible history of the place, living there is a time he and his family remember fondly. ”The good Lord blessed me. I sent three of them to college from here,” he says, reminiscing about his old home. The building is one of four former slave cabins at Magnolia Plantation and Gardens that have been restored to show visitors the path of blacks from slavery to freedom. June 3, 2009
Feds Plan Solutions for People Stuck in FEMA TrailersThe Obama administration is poised to unveil a plan today that it says will help find safe and affordable housing for Gulf Coast families still living in FEMA trailers, without anyone being evicted. The plan includes making $50 million in new housing voucher rental assistance available to Gulf Coast housing authorities; providing more hands-on case management for every family still in temporary housing; and offering those families the opportunity to buy mobile homes and smaller park models from FEMA for as little as $1. June 3, 2009
Real Estate Meltdown Hits Home for GeithnerThe real estate market’s troubles are hitting close to home for Treasury Secretary Timothy Geithner.After reducing the price on his house in a tony New York City suburb to less than he paid for it, Geithner still couldn’t sell and recently rented it out instead, according to real estate agents familiar with the deal. Geithner put his five-bedroom Tudor near leafy Larchmont on the market for $1.635 million in February, after heading to Washington for his job as the nation’s top economic official. June 3, 2009
Prefab Homes Sprout Green Designs, Improve AffordabilityMichelle Kaufmann couldn’t find an affordable, eco-friendly home in the San Francisco area in 2003, so she built her own. Construction took 14 months. “This needs to be easier,” the architect recalls thinking. To make green homes more accessible, she says, she “stalked” factories until she found some that agreed to build her modern designs. She built dozens of prefabricated homes, including several identical to her own, each taking four months at 15% less cost. She won an innovation award this month from the National Association of Home Builders and became a sort of rock star of sustainability. June 2, 2009
Restrictive Rules Help Buffer Baltimore from Housing WoesDuring the red-hot housing boom, Baltimore-area developers sometimes struggled to get new construction permits because of restrictive rules. What was then cause for major frustration now looks pretty good given the subsequent nationwide housing meltdown: The region was not saturated with new homes. Home prices have remained relatively stable, and there have been fewer foreclosures in the region than other parts of the country, says Anirban Basu, CEO of Sage Policy Group, an economic consulting firm in Baltimore. June 2, 2009
DONOVAN ANNOUNCES RECOVERY ACT’S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOMESpeaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country. June 2, 2009
Half a Billion Dollars Says U.S. Is Getting Serious About Busting FraudIt may not have made a big splash on network news or in print, but for real estate it was the equivalent of a congressional declaration of war — a war against mortgage fraud. Just as security and intelligence agencies were given huge funding boosts by Congress after 9/11, the FBI, Justice Department, Secret Service and U.S. Postal Service combined have gotten half a billion dollars in new funding authority to investigate and prosecute individuals and companies suspected of mortgage fraud. President Obama signed the legislation May 20. June 2, 2009
Property Rights and Responsibilities After a Loved One DiesQ My dad is 94 years old and very ill. I am his executor and want to handle his wishes correctly upon his death. Dad’s will states that his property is to be divided among his wife of 10 years, my two sisters and me. His wife has told us that after he dies, she does not wish to remain in the house, which is just in his name. She wants to move into an apartment or condo but seems worried about how soon she will have to move after dad dies. I have told her we would never force her out on the street and would give her plenty of time to find a place to live. What does the law say about how long she will be allowed to stay in this house? June 2, 2009
Foreclosed Homes may Add to Hurricane ThreatsMike Manikchand points toward his neighbors — a half-dozen empty, foreclosed-upon homes, sitting on weed-strewn yards — and he wonders: What will happen if a hurricane slams into southwest Florida this year? His simple answer: “A lot of these places will get destroyed.” Unoccupied, these homes would be defenseless in a storm; there will be no one to put up shutters, batten down garage doors and otherwise secure homes. But that’s not all. Nearby homes and their residents would also be at risk from wind-propelled debris. June 2, 2009
Home Mortgage Delinquencies Hit Highest Rate Since 1972Nearly 1 in 8 of the nation’s home mortgage holders were behind in their payments in the first quarter — the most since at least 1972, the Mortgage Bankers Association said Thursday. It said more than 12% of residential mortgage loans were delinquent or in some stage of foreclosure. The rate of foreclosure actions begun the past quarter also beat MBA figures going back to 1972. Delinquencies and foreclosures rose despite aggressive federal efforts to curb foreclosures by getting homeowners into more affordable mortgages. May 29, 2009
Detroit Community Groups Work for City’s New Glory DaysDespair shows on the faces of many people at soup kitchens and in unemployment lines here. And desperation is evident in Craigslist posts from a single mom who needs $950 for medical bills and a man who can afford to pay just $650 for a used car he needs to job hunt. There is something else, though, in this shrinking city beset by chronic poverty and the unraveling of the industry that once made it great: hope. May 29, 2009
Home Prices in Maryland Fall Faster than in Most StatesMaryland had one of the biggest drops in home prices in the nation this year through March, according to a federal house price index released Wednesday. Prices fell more than 10 percent when adjusted for seasonal changes, compared with the first three months of 2008, the Federal Housing Finance Agency said. The decline was the sixth steepest in the U.S., with only Nevada, Florida, California, Arizona and Washington, D.C., showing greater depreciation. Home prices fell the most in Nevada, by more than 31 percent. May 29, 2009
Number of Md. Borrowers Facing Foreclosure on the RiseThe number of Maryland borrowers who face foreclosure or have missed mortgage payments rose to nearly 121,000 in the first three months of the year, up slightly from the fall but an increase of 67 percent from a year earlier, the Mortgage Bankers Association said Thursday. Loans in the foreclosure process plus those late by at least a month accounted for 11.3 percent of the more than 1 million outstanding mortgages in Maryland at the end of March, the MBA said in its quarterly loan delinquency survey. May 29, 2009
Repeat Buyers, Low Prices Boost Sales of Existing HomesMore repeat buyers appear to be buying homes, contributing to a slight uptick in existing-home sales this spring. First-time buyers’ share of existing-home sales in April declined to 40% from over half in March, according to the National Association of Realtors. The majority of buyers are now repeat buyers, which includes owner-occupants who are moving up to larger or more expensive homes. Investors make up the rest of the market. May 28, 2009
Condo Market Fights to Recover as Prices Remain DownWhile evidence mounts that the single-family-home market is stabilizing, the condominium market remains “substantially weaker,” says Lawrence Yun, chief economist for the National Association of Realtors. In April, resale condo and co-op sales nationwide were down 9.4% from a year ago vs. a 2.8% drop for single-family homes, the association said Wednesday. Median prices fared worse, too, with condo prices down 18.5% year-over-year vs. 15% for single-family homes. May 28, 2009
Announcement Comes During Visit to Montana Native American Tribes and Housing AuthoritiesU.S. Department of Housing and Urban Development Secretary Shaun Donovan announced today that HUD is offering more than $252 million to Indian tribes and Alaskan native communities to improve housing and stimulate community development. Provided through The American Recovery and Reinvestment Act of 2009, signed into law by President Obama on February 17, 2009, these grants are intended to promote greater energy efficiency, mold remediation, and energy conservation retrofit investments. May 28, 2009
Number of Home Sales Rises, but Prices Keep PlummetingBargain hunters drove home sales up slightly in April, but prices plunged and do not appear close to stabilizing, according to industry data released yesterday. Existing-home sales rose 2.9 percent from March, to a seasonally adjusted annual rate of 4.68 million units, according to the National Association of Realtors. That was slightly better than analysts expected. The April numbers represented a 3.5 percent drop in sales compared with April 2008. May 28, 2009
Face-Lift for Foreclosure PreventionThe Obama administration is attempting to revive a stalled government foreclosure prevention program that could restore equity to hundreds of thousands of borrowers whose home values have plummeted. After eight months, the program, known as Hope for Homeowners, has helped just one borrower secure a more affordable loan. President Obama signed legislation last week simplifying and lowering the cost of the program for lenders and borrowers. Lenders that participate also are eligible for incentive payments from government bailout funds. May 26, 2009
First-Time Home Buyers Can Turn Tax Credit Into CashThe $8,000 federal tax credit for first-time home purchasers is about to morph into a ready-cash down payment source, thanks to a federal policy change. Buyers eligible for the credit who apply for mortgages insured by the Federal Housing Administration may soon also be eligible for bridge loans or cash advances — up to $8,000 — that they can use for the down payment, closing costs or other loan expenses pending receipt of their tax credit check from the IRS. May 26, 2009
An Easier Short-Sale ProcessIf you owe more on your home than it’s worth, you may be hearing a lot about short sales. That’s when you sell your property for the current market value, even though that’s less than your mortgage. Your lender agrees to take the proceeds, and you walk away from the house. Since the foreclosure frenzy began last year, many consumers who have embarked on short sales have found the process complex and time consuming. Lenders can delay decisions for months on whether to accept the process. May 26, 2009
How a Greener City gets GrowingSmallwood said many seeds are already planted: He’s one of many urban and suburban dwellers growing food at home or in community gardens from Upper Fells Point to Rodgers Forge. And people are turning out in droves at area farmers’ markets in downtown Baltimore, Towson and Annapolis, among others, fueling a nationwide increase in markets by more than 25 percent since 2004, according to government statistics. Across the nation and Canada, there were 18,000-20,000 community gardens last year, the American Community Garden Association estimates. A Baltimore group has tracked nearly 100. May 26, 2009
Mobile Real Estate Next Big Thing, Agents SayOften when real estate agent Karen Fick is showing a house, the prospective buyers will spot another home for sale down the street and wonder about that one. Can they afford it? How many bedrooms does it have? Could it be the one? As an agent with access to Realtor listings, Fick can call up the information on her mobile phone. But with the growth of software and Web sites that enable mobile searches of listings and neighborhoods, both agents and consumers alike will increasingly be doing instant home searches on the go, industry experts believe. May 26, 2009
‘No official Plan’ yet, but Change Rumbles through Iberville Housing ComplexHousing Authority of New Orleans officials say Mayor Ray Nagin spoke prematurely when he announced last week a new “mixed-income development” at Iberville. But while no plans have crossed the drawing board, City Hall, HANO and public housing tenant leaders agree that the aging complex across from the French Quarter will be redeveloped soon. There is “no official plan,” said mayoral policy director Maggie Merrill. But Nagin saw his State of the City address as “a chance to make an announcement to people, especially those at the Iberville, that we’re ready to move forward and make changes,” she said. May 26, 2009
LA: Slidell Residents Say Fees Misused by DeveloperNearly 50 residents who live in Clipper Estates near Slidell have filed a federal lawsuit against the man who developed their subdivision, alleging he used money that he assessed the residents to repair roads and other common areas after Hurricane Katrina to fund his other business interests. The residents filed the lawsuit May 11 in U.S. District Court in New Orleans against Joseph S. “Joey” Tufaro, who also serves as the president of the Clipper Estates Master Homeowners Association. The suit is filed under the Racketeering Influenced and Corrupt Organizations, or RICO, Act. May 26, 2009
Good Mortgages now Growing Foreclosure RiskAs job losses rise, growing numbers of American homeowners with once solid credit are falling behind on their mortgages, amplifying a wave of foreclosures. In the latest phase of the nation’s real estate disaster, the locus of trouble has shifted from subprime loans — those extended to home buyers with troubled credit — to the far more numerous prime loans issued to those with decent financial histories. May 26, 2009
HUD ANNOUNCES SANCTIONS AGAINST MORE THAN 120 FHA-APPROVED LENDERSThe U.S. Department of Housing and Urban Development’s Mortgagee Review Board today announced actions against more than 120 lenders for violating FHA requirements. Violations range from failure to conduct sufficient quality control, to failure to continue to meet FHA recertification requirements, to falsifying loan documents. Yesterday, President Barack Obama signed the Helping Families Save Their Homes Act that grants FHA more authority to keep bad actors out of the FHA programs and provided additional enforcement tools to police those lenders who employ false or misleading marketing tactics. May 22, 2009
City Temporarily Stops Charging Rent to the Working HomelessThe Bloomberg administration has stopped charging rent to homeless people who have income and live in city shelters, temporarily suspending a state-mandated program that has been marked by mismanagement and the threat of a lawsuit. In a memo sent by e-mail to 56 family shelter providers on Thursday morning, Anne Heller, a deputy commissioner at the Department of Homeless Services, said that “technical issues” had forced officials to shut down the program until the issues are resolved.The three-week-old rent program was openly loathed by shelter providers, who hold contracts with the city and were forced to begin collecting rent from people who live in the shelters but have income from jobs. May 22, 2009
Conferences on Mortgages Are Called IneffectiveThey were hailed last year as a key component of Gov. David A. Paterson’s efforts to prevent foreclosures: mandatory settlement conferences in which lenders and borrowers of subprime loans who are in default on their mortgages would hammer out new terms to keep the borrowers in their homes. But two state lawmakers and a community group said on Thursday that the conferences had been largely ineffective in New York City and Nassau and Westchester Counties, where hundreds of scheduled sessions had resulted in a handful of settlements. May 22, 2009
Renters Get New Protection From ForeclosureYou might think renters don’t have to worry about losing their homes to the bank. But many have been turned out onto the street—although they were current on their rent—because the landlord wasn’t current with his mortgage payments. The National Low Income Housing Coalition estimates that 40 percent of the households that lose their homes to foreclosure are renters evicted after the bank takes the home from their landlord. May 22, 2009
Foreclosures Stymie Efforts to Revive EconomyMore than two years year after the housing market tanked and the foreclosure rate began rising, the ongoing wave of distressed home sales is weighing on house prices and crimping a long-awaited economic recovery. On Wednesday, President Obama signed off on the government’s latest response to the crisis, a whittled-down bill aimed at helping millions of struggling borrowers keep their homes. But the latest effort may not be strong enough to reverse the downward spiral that has gripped the housing market and the economy. May 22, 2009
Mortgage Applications Rise as Interest Rates DropMortgage applications rose last week, reflecting an increase in demand for home refinancing as interest rates fell, an industry group said Wednesday. But demand for home purchase loans dropped. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, rose 2.3% to 915.9 the week ended May 15. David Adamo, CEO of Luxury Mortgage in Stamford, Conn., said there was a large wave of applicants when interest rates on mortgages first dropped, and these loans are still going through the production cycle. May 21, 2009
Those Willing to Spend Can Find Great Remodeling DealsIn this wooded, high-end suburb near San Francisco, Darien Destino isn’t accustomed to getting deals from people who work on her house. But the dour economy — which has hurt the home renovation business — has a silver lining for her and others with cash or strong home equity. Destino and her husband, Don, recently had their 3,000-square-foot home painted by the same contractor who bid 40% more for the job two years ago. The pine trees crowding the front yard were removed for half the cost requested in 2007. May 21, 2009
FBI Using Wiretaps to Sniff Out Mortgage FraudA recently created FBI team is setting priorities on mortgage fraud investigations, and the bureau is using undercover operations, wiretaps and computer technology to get evidence of economic crimes, the agency’s chief said Wednesday. FBI Director Robert Mueller told a House Judiciary Committee hearing that the agency in December created the National Mortgage Fraud Team at headquarters to assist field offices in their pending investigations. In his prepared remarks submitted to the committee and in his actual comments, Mueller said the team also is helping to identify the worst mortgage fraud perpetrators and to evaluate where additional FBI employees are needed. The FBI’s mortgage fraud caseload has tripled in the past three years to more than 2,400 cases, Mueller said. May 21, 2009
HUD SECRETARY DONOVAN STATEMENT ON THE HELPING FAMILIES SAVE THEIR HOMES ACT OF 2009Today, President Obama signed into law the Helping Families Save Their Homes Act of 2009. The law expands the reach of the Administration’s Making Home Affordable Programs, improves the Federal Housing Administration’s Hope for Homeowners program and streamlines how HUD supports thousands of homeless support programs across America. May 21, 2009
Obama Signs Financial Bill, Creating Investigative PanelPresident Obama on Wednesday signed legislation aimed at curbing financial fraud in the mortgage and other industries, including a provision that created an independent panel to investigate the root causes of the nation’s economic downturn. Congressional lawmakers from House Speaker Nancy Pelosi to prominent Democratic senators, with significant Republican support, had called for creation of a commission modeled after the Sept. 11 panel and a Depression-era set of financial hearings called the Pecora commission. May 21, 2009
HANO Approves Building, Repair SpendingOne month after a volatile meeting rife with complaints about the agency’s disregard for public-housing leaders, the one-woman board of the Housing Authority of New Orleans on Wednesday approved a flurry of repair and construction plans. Diane Johnson, HANO’s federally appointed board chairwoman, sat in front of a freshly framed mission statement and approved nearly $75 million to redevelop the Lafitte site, to build more than 100 Katrina cottages in Algiers, to modernize existing public housing apartments, to renovate three old buildings at the planned St. Bernard mixed-income development, and to purchase about 40 storm-damaged apartments from homeowners in the agency’s Christopher Park development on the West Bank. May 21, 2009
Obama Signs Bill Expanding Mortgage ReliefPresident Barack Obama said homeowners facing foreclosure would have a second chance under a measure he signed into law on Wednesday, but he added consumers still must live within their means.The law encourages banks to spare homeowners from foreclosure and cracks down on lenders who take advantage of them. The bill passed Congress earlier this week and Obama bypassed a promised five-day waiting period to make it law. May 21, 2009
Congress Passes Anti-foreclosure BillCongress on Tuesday sent the president legislation that encourages banks to spare homeowners from foreclosure, after the industry helped scuttle a tougher measure that would have forced lenders to reduce monthly payments of owners in bankruptcy. The House voted 367-54 to pass the Helping Families Save Their Homes Act. The Senate had voted 91-5 in favor of the bill and approved the final version by unanimous consent. May 20, 2009
Record-low Housing Starts in April Cast Pall Over MarketHousing starts hit a record low in April, driven by a plunge in new apartment construction while some improvement was seen in the single-family sector, the government said Tuesday. The disappointing numbers indicate that a broad bottoming in the housing market — despite some recent signs that new home sales have strengthened and builder confidence is up — remains elusive. Construction starts of new homes and apartments nationwide fell 12.8% last month from March to an annual rate of 458,000 units, the Commerce Department said. That’s down almost 80% from the peak in January 2006. May 20, 2009
Demographic Trends now Favor Downtown“Location, location, location” has been the mantra of the real estate industry for as long as anyone can remember. Still, as the national economy transforms in the wake of the economic crisis, the power of place will prove to be ever more important for a broad range of small businesses. Most demographic and market indicators suggest that growth and development across the country are moving away from the suburban and exurban fringe and toward center-cities and close-in suburbs. May 20, 2009
Homebuilder Index Shows Signs of LifeHomebuilder sentiment jumped to its highest level in eight months in May, a private survey showed Monday, supporting views that the three-year housing slump might be close to an end. While still near an historic low, the National Association of Home Builders/Wells Fargo Housing Market Index rose to 16 from 14 in April, in line with market expectations. The NAHB attributed the second straight monthly increase in the gauge — which measures builder confidence in the market for newly built, single-family homes — to “the best home buying conditions of a lifetime.” The group’s chief executive officer, Jerry Howard, said that the two consecutive months of gains in the index are encouraging. May 19, 2009
SECRETARY DONOVAN VISITS PUBLIC HOUSING IN PENNSYLVANIA, ANNOUNCES NEARLY $1 BILLION IN RECOVERY ACT FUNDS TO IMPROVE PUBLIC HOUU.S. Department of Housing and Urban Development Secretary Donovan today announced that HUD is offering nearly $1 billion to make substantial improvements to thousands of public housing units nationwide. The Public Housing Capital Funds being offered are provided through The American Recovery and Reinvestment Act of 2009 (Recovery Act) and are designed to help public housing authorities improve the quality of their housing stock, promote energy efficiency and create jobs. May 19, 2009
Buyers, Sellers Differ on Right Price LevelMore than two thirds of home sellers believe their homes should be priced higher than an agent’s recommended listing price, while two thirds of buyers believe homes are overpriced, say Maryland real estate agents in a HomeGain poll released Monday. But at the same time, homeowners clearly understand that home values have plummeted, according to a separate survey. A second-quarter survey by real estate Web site HomeGain shows buyers and sellers sharply at odds. May 19, 2009
VICE PRESIDENT BIDEN ANNOUNCES NEARLY $100 MILLION IN RECOVERY ACT FUNDS TO CLEAN UP DANGEROUS LEAD IN HOUSINGFollowing a tour of the Esperanza Community Housing Corporation in South Central Los Angeles, Vice President Biden today announced that the U.S. Department of Housing and Urban Development is making nearly than $100 million in Recovery Act funding available to help eliminate dangerous lead-based paint and other health and safety hazards from low-income homes. HUD’s grants will help 53 local programs in 20 states and the District of Columbia to protect young children from lead poisoning and create jobs. To view a summary of local programs funded through the Recovery Act, visit HUD’s website. May 18, 2009
The Faces of ForeclosurePeople across the New York region tell their stories. May 18, 2009
Connecticut Foreclosure Crisis Appears to Be WorseningOR Sandra and Curtis Davis, one of their most vivid memories is the blustery October afternoon in 1998 when they moved into their two-story clapboard colonial on a tree-lined street here. Ms. Davis said that they were “over the moon happy” about “finally putting down roots.” These days, they are grappling with an equally vivid nightmare: that the sheriff will knock on their door and announce that the bank is their new landlord. For nearly two years since they got their first foreclosure notice, the Davises said, they have been trying to hold onto their home. The latest effort was to file for bankruptcy to buy themselves time to renegotiate their debt, a move they made after learning that their home was scheduled to be put up for auction for a third time. May 18, 2009
The Housing Crisis: Getting a Ground-Level ViewWith anecdotal evidence suggesting the number of foreclosures were mounting in the New York metropolitan area, The New York Times set out to try to quantify the extent of the problem — not just from a regional or county-level view, but down to the street level. After acquiring data that included the property addresses for more than 182,000 homes in foreclosure between January 2005 and August 2008, The Times used mapping software to plot the foreclosed properties and then computed the percentage of residential properties in foreclosure at various geographic levels. May 18, 2009
New Appraisal Rules Come With CostsHow about this scenario the next time you refinance or apply for a new mortgage: The real estate appraisal that used to cost you $325 now costs $450, even though the appraiser doing the work is getting only $175 or $200. Plus, your appraisal-related charges may now be subject to add-on fees that you have never heard of — $50 to $100 extra in “no show” penalties if you get stuck in traffic and miss your appointment with the appraiser. Or an extra $50 to $150 if the property is worth more than $500,000. May 18, 2009
Don’t Refinance More Than You Can HandleQ: With mortgage rates at record lows, I’m thinking of refinancing my 30-year, fixed-rate loan. The lender is recommending that I roll into the refi amount the balances I owe on my car and two credit cards. The advantages would be that they would be paid off, the interest rate would be lower than I’m paying on them and the interest would be tax-deductible. May 18, 2009
Watchdog Suing LRA for Road Home DataA leading advocate for Road Home applicants is suing the Louisiana Recovery Authority for public records, some of which she requested nearly 11 months ago. Melanie Ehrlich, co-founder of the Citizens Road Home Action Team, or CHAT, first sought information from the state on July 1, 2008, about key Road Home policy changes. Ehrlich, who is scheduled to testify about continuing Road Home problems before a U.S. Senate committee in Washington on Wednesday, followed the July request with two more in October and December, seeking more information about appeals processes and applicant rights. May 18, 2009
Bring Cash: America’s Most Overpriced CitiesVexed by gang wars and rising real estate prices, late rapper Tupac Shakur mused in 1996 that the overall cost of living in Los Angeles was so high he would almost rather “live life in the pen(itentiary).”Though East Coast-West Coast gang violence has since subsided, life in the City of Angels remains far from affordable. Thanks to bloated housing prices, lofty living costs and unemployment rates among the highest in the nation, the Los Angeles metro area tops our list of America’s Most Overpriced Cities. May 18, 2009
Gov’t Losses Big in Home MarketThe nation’s teetering economy has Uncle Sam playing a growing role in neighborhoods across the country — as a homeowner. The combination of a deep recession and a foundering housing market has left the government with more than 50,000 houses on its hands — enough homes to fill a city the size of Riverside, Calif., or Miami. Now federal records show it’s struggling to unload the houses and facing billions of dollars in losses. May 15, 2009
Obama Administration Expands Mortgage Foreclosure HelpThe Obama administration is throwing a new lifeline to homeowners facing foreclosure who are ineligible for its current aid programs. The enhancements announced Thursday include: May 15, 2009
Dip in Refinancing Drags Down Mortgage ApplicationsMortgage applications slid to the lowest level since mid-March last week as demand for refinancing slowed, according to a report Wednesday that suggests a recovery in the housing market is still on shaky ground. The drop in refinancing comes despite historically low interest rates and a continued decline in home prices. The volume of mortgage loan applications for buying and refinancing homes fell 8.6% in the week ended May 8 from a week earlier, according to the Mortgage Bankers Association’s index. May 14, 2009
Slow Start to Federal Plan for Modifying MortgagesThe Obama administration’s plan to help millions of troubled homeowners avoid foreclosure by reducing the size of their mortgage payments is just getting off the ground. So far, two months after the program went into effect, about 55,000 homeowners have been extended loan modification offers, according to a senior administration official. At the same time, foreclosures continue apace. RealtyTrac reported Wednesday that foreclosure filings reached 342,000 last month, up 32 percent from April 2008. Moody’s has estimated that more than 2.1 million homeowners will lose their homes this year. May 14, 2009
For Urban Gardeners, Lead Is a ConcernFRANK MEUSCHKE’S garden, which surrounds the house he rents in Brooklyn, is a bountiful source of tomatoes, snap peas, green beans, peppers, lettuce and multiple varieties of flowers. It is also, as he recently discovered to his dismay, a rich repository of lead. He had his soil tested last month, and the analysis showed more than nine times the amount of lead expected to occur naturally. Health officials, soil scientists and environmental engineers worry that the increasing popularity of gardening, particularly the urban kind, will put more people at risk for lead poisoning if they don’t protect themselves. May 14, 2009
Rising Calls to Regulate California GroundwaterFor the third year in a row, Mark Watte plans to rely on the aquifer beneath his family farm for three-quarters of the water he needs to keep his cotton, corn and alfalfa growing, his young pistachio trees healthy and his 900 dairy cows cool. Although California has been a pathbreaker in some environmental arenas, like embracing renewable energy and recycling, groundwater rights remain sacrosanct. But the state government is facing growing pressure to embrace regulation. Recent scientific studies indicate that in the long term, climate change is diminishing the potential for the Sierra snowpack to generate enough runoff. Aquifers are thus a crucial insurance policy for water users. May 14, 2009
Investment Banker to Run City Housing AuthorityA former Wall Street investment banker with no public housing experience has been selected to lead the New York City Housing Authority, a sprawling bureaucracy struggling to overcome a financial crisis and a lingering controversy over elevator safety. At City Hall on Wednesday, Mayor Michael R. Bloomberg introduced the agency’s new chairman, John B. Rhea, the former managing director of the Lehman Brothers global consumer retail group. He has also been an executive at JPMorgan Chase, where he completed more than $50 billion worth of transactions overseeing corporate finance as well as mergers and acquisitions, city officials said. May 14, 2009
More Homeowners Getting Aid, but Demand Keeps RisingIn the two months since it launched, the Obama administration’s foreclosure prevention plan has outperformed the government’s previous attempts, offering more than 50,000 homeowners lower-cost mortgages. Yet the $75 billion program, known as Making Home Affordable, has been implemented unevenly by lenders, leaving some homeowners frustrated and bewildered. The demand from distressed borrowers has overwhelmed many lenders and nonprofit organizations, which have hired more staff to cope. And there is a growing concern about whether the plan can reach its goal of helping 4 million homeowners without tackling the issue of borrowers who owe more than their home is worth. May 14, 2009
Immigrant Homeownership Proves Resilient in the Face of SlowdownThe rate of homeownership in the United States is holding up better among immigrants than it is for native-born Americans, according to a study released yesterday. The study, by the Pew Hispanic Center in Washington, analyzes housing, economic and demographic data from government agencies and private sources. It found that although immigrants are far less likely than their native-born counterparts to own a home, the rate of homeownership for immigrants during the housing bust has declined at a much slower pace than it has for those born in this country. May 14, 2009
Recession Slows Plans for Downtown RevitalizationA development boom that revitalized huge swaths of downtown Baltimore this decade slowed last year, with plans scaled back or delayed amid the recession and tightened credit markets. Vacancies increased 2 percent in downtown offices, and about 1,000 jobs were lost, the Downtown Partnership of Baltimore says in a report to be unveiled Thursday. Job losses are expected to continue mounting this year as layoffs continue in the financial services sector. May 14, 2009
Fewer Empty or Blighted Homes Dot N.O. StreetsIn a hopeful sign for New Orleans’ recovery, a study released Wednesday shows that the vast stock of unoccupied residences across the city has diminished during the past year while other American cities with large inventories of blighted or vacant housing have seen their decay grow. Still, New Orleans remains atop the list of cities with the highest proportion of abandoned homes, with 31 percent of all residential properties unoccupied or blighted in March, according to an analysis of U.S. Postal Service data by the nonprofit Greater New Orleans Community Data Center. May 14, 2009
Home Sales Rise in 17 States as Foreclosures Depress PricesSales of existing homes picked up in 17 states in the first quarter compared with the previous one, pointing to more signs of life for the home market. Nationally, first-quarter sales of existing homes were down 3.2% from the last three months of 2008 and down 6.8% year-over-year, the National Association of Realtors said Tuesday. But the improvement in 17 states is more evidence that the market is bottoming out, economists say. In the fourth quarter, only nine states showed better sales. Economists predict more states will show sales gains throughout the year, given still-falling prices in many markets, low mortgage rates and some signs of improvement in the overall economy. May 13, 2009
April Foreclosures Up 32% Over Last Year, Report SaysThe number of U.S. households faced with losing their homes to foreclosure jumped 32% in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday. More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, California-based foreclosure listing firm began its report in January 2005. May 13, 2009
Freddie Mac Seeks $6.1B More in Government Aid after Q1 LossMortgage giant Freddie Mac (FRE) said Tuesday it needs $6.1 billion in additional government aid as the cost to taxpayers from the housing market bust keeps rising. The McLean, Va-based company, seized by federal regulators in September, posted a loss of $9.9 billion, or $3.14 a share, for the quarter ending March 31. That compared with a loss of $149 million, or 66 cents a share, in the year-ago period. The results were driven by $8.8 billion in credit losses due to soaring delinquency rates and falling home prices, and $7.1 billion in write-downs of the value of its mortgage-backed securities. May 13, 2009
Homeownership Losses Are Greatest Among Minorities, Report FindsAfter a decade of growth, the gains made in homeownership by African-Americans and native-born Latinos have been eroding faster in the economic downturn than those of whites, according to a report issued Tuesday by the Pew Hispanic Center. The report also suggests that the gains for minority groups, achieved from 1995 to 2004, were disproportionately tied to relaxed lending standards and subprime loans. An exception to the reversal of homeownership gains, the research shows, can be found among foreign-born Latinos, whose rate of ownership, while low, has stalled during the downturn but has not fallen. May 13, 2009
Community Banks Cry Foul, but What’s Fair?We’re hearing a lot these days from well-run regional and community banks that feel that they are being punished for the mistakes of the Citigroups and the Countrywides. As you might expect, these bankers find it galling that they’ve been lumped together in the public mind with bankers who made lousy loans, lost gobs of money and nearly brought down the global financial system. But what adds injury to insult is that these bankers are now being forced, in the middle of a recession, to pay dramatically higher premiums to replenish the government insurance fund that is used to insure bank deposits and rescue failing institutions. May 13, 2009
Fort Wayne Home Sales Suffer with GM Plant WorriesThe uncertainty over General Motors’ future is causing uncertainty in the housing market in Fort Wayne, Ind. The northeastern Indiana region is home to General Motors’ Fort Wayne Assembly Plant, which employs 2,601. The plant was idled for five weeks at the start of the year and will be idle for two months this summer. And that’s if GM doesn’t declare bankruptcy. “We worry about it closing,” says Rena Black, president of the Fort Wayne Area Association of Realtors. “If it does, it would be devastating for Fort Wayne.” May 12, 2009
DONOVAN ANNOUNCES INTENT TO MOVE FORWARD WITH RESPA REFORMU.S. Housing and Urban Development Secretary Shaun Donovan today announced his intention to implement the mortgage reforms under the Real Estate Settlement Procedures Act (RESPA) that are scheduled to take full effect on January 1, 2010. For the first time in more than 30 years, HUD is updating mortgage rules to help consumers shop for the lowest cost mortgage, avoid costly and potentially harmful loan offers, and save an average of $700. Meanwhile, HUD is withdrawing, and announcing its intent to propose revised language relating to, a narrow provision of the final RESPA rule that redefines a prohibited practice called ‘required use’ where consumers are steered toward higher cost mortgage services provided by affiliated businesses. May 12, 2009
Challenging Brokers’ Add-On FeesA federal district court has handed down a ruling in a class-action lawsuit that could directly affect the fees you pay to the real estate brokerage company at closing, whether as a buyer or seller. The decision targets one of the most common practices adopted by brokerage firms in recent years: charging consumers “admin,” “processing,” “ABC” and other mystery fees ranging from $150 to as much as $500 per transaction. The fees are tacked on top of regular commissions and sometimes come as last-minute surprises on settlement sheets. May 12, 2009
Your Questions About the First-time Homebuyer Credit AnsweredThe economic stimulus package, particularly the first-time homebuyer credit, generates lots of questions to our consumer blog, Consuming Interests. Tax professionals Theresa M. Bandell, director of Stegman & Co. in Baltimore, and Mark Steber, vice president of tax resources at Jackson Hewitt in Sarasota, Fla., provided these answers: May 12, 2009
First-time Buyers Benefit from Housing SlumpKostas Kalaitzidis wanted to buy a home when he moved to Phoenix in 2008, but between his modest salary and the expensive market, he couldn’t swing it. What a difference a year makes. Kalaitzidis recently made an offer on a home priced at $82,000, far less than the $220,000 it might have fetched last year. “I’m very glad I waited,” Kalaitzidis said. “People like me are the ones buying in now.” First-time buyers like Kalaitzidis are dominating the real estate market right now. They snapped up 53 percent of all properties sold during March 2009, up from the usual 40 percent or less, according to data from the National Association of Realtors. May 12, 2009
Senate Wants to Let more Refinance MortgagesTrying to curb home foreclosures, the Senate voted on Wednesday to make it easier for homeowners with risky credit to switch to a lower-cost mortgage backed by the government. The bill, passed 91-5, also would give banks a break by encouraging reduced fees they must pay for the government to insure deposits. While both steps put taxpayer money on the line, lawmakers say the legislation is needed to prevent the economy from getting worse. May 7, 2009
With ‘I-House,’ Manufactured Housing goes ChicFrom its bamboo floors to its rooftop deck, Clayton Homes’ new industrial-chic “i-house” is about as far removed from a mobile home as an iPod from a record player. Architects at the country’s largest manufactured home company embraced the basic rectangular form of what began as housing on wheels and gave it a postmodern turn with a distinctive v-shaped roofline, energy efficiency and luxury appointments. May 7, 2009
SECRETARIES CHU AND DONOVAN SIGN AGREEMENT TO HELP WORKING FAMILIES WEATHERIZE THEIR HOMESU.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan and U.S. Department of Energy (DOE) Secretary Steven Chu today announced an important step forward in the partnership between HUD and DOE to streamline and better coordinate federal weatherization programs. These efforts will make it easier for low-income families to weatherize their homes, saving money for working families and creating tens of thousands of new green jobs. May 7, 2009
More Homes get Multiple Offers; Downturn May be Nearing EndMore homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures. Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say. “If a house is in a good neighborhood, is maintained and is a good value, it’ll get multiple offers,” says Julie Holt, owner of Anclote Title Services in Tarpon Springs, Fla. One in 10 homes now draw multiple offers, up from one in 30 last fall, she says. May 6, 2009
HUD ALLOCATES $1 BILLION IN RECOVERY ACT FUNDING TO SUPPORT STATE AND LOCAL COMMUNITY DEVELOPMENTIn an effort to stimulate community development and job growth, U.S. Housing and Urban Development Secretary Shaun Donovan today allocated $1 billion in funding to nearly 1,200 state and local governments through the American Recovery and Reinvestment Act of 2009 (Recovery Act). These grants will be provided through HUD’s long-standing Community Development Block Grant (CDBG) Program and will primarily benefit low- to moderate-income persons living in these communities. May 6, 2009
Freddie Pressured Over Accounting DisclosureWhen Freddie Mac privately suggested to regulators last month how it planned to account for its mounting losses, the mortgage giant set off a firestorm. Freddie Mac’s regulator pressed the company to withhold information related to the proposal from a federal filing, concerned that this seemingly arcane discussion of accounting practices could add billions of dollars to the government’s cost of bailing out financial firms, two people familiar with the matter said. May 6, 2009
Economic Casualties Pile into Tent CitiesMarshall is among a growing number of the economic homeless, a term for those newly displaced by layoffs, foreclosures or other financial troubles caused by the recession. They differ from the chronic homeless, the longtime street residents who often suffer from mental illness, drug abuse or alcoholism. For the economic homeless, the American ideal that education and hard work lead to a comfortable middle-class life has slipped out of reach. They’re packing into motels, parking lots and tent cities, alternately distressed and hopeful, searching for work and praying their fortunes will change. May 5, 2009
Fed Says Prime Mortgage Demand Grew in First QuarterDemand for prime mortgages rose in the first quarter for the first time since early 2007, even as banks tightened standards for home loans, the Federal Reserve said in a survey of loan officers released Monday. The Fed’s new quarterly survey found that about half of U.S. banks tightened lending standards on prime mortgages, up from about 45% in the survey released in early February. May 5, 2009
March Construction Spending, Pending Home Sales RoseTwo reports delivered encouraging news about the economy Monday: The National Association of Realtors said pending home sales rose from February to March as buyers took advantage of deeply discounted prices and low interest rates. And the government said construction spending rose unexpectedly in March after five straight declines, as strength in nonresidential projects and government building offset a slide in housing. The Commerce Department says spending increased 0.3% in March, best showing since a similar rise in September. Economists surveyed by Thomson Reuters expected spending to drop 1.5%. May 5, 2009
TREASURY, HUD ANNOUNCE HOUSING GRANTS FUNDED THROUGH RECOVERY ACTAs part of an innovative partnership aimed at job creation and easing the pressures on the housing market, the Department of the Treasury and Department of Housing and Urban Development (HUD) today jointly announced programs that will provide billions of dollars in recovery funds to spur the development of thousands of affordable housing units in states around the country. Funded through the American Recovery and Reinvestment Act (The Recovery Act), the programs together will provide approximately $5 billion for states to finance the acquisition and construction of affordable housing for working families. Through the Recovery Act, the Treasury Department will now for the first time provide state housing agencies resources from which they will in turn provide cash assistance to developers of qualified affordable housing developments to fill the Low Income Housing Tax Credit (LITC) gap. May 5, 2009
Where Home Prices Crashed Early, Signs of a ReboundIs this what a bottom looks like? This city was among the first in the nation to fall victim to the real estate collapse. Now it seems to be in the earliest stages of a recovery, a hopeful sign for an economy mired in trouble and anxiety. Investors and first-time buyers, the traditional harbingers of a housing rebound, are out in force here, competing for bargain-price foreclosures. With sales up 45 percent from last year, the vast backlog of inventory has diminished. Even prices, which have plummeted to levels not seen since the beginning of the decade, show evidence of stabilizing. May 5, 2009
Once ‘Very Good Rent Payers’ Now Facing EvictionA registered nurse came close to losing her $1,550-a-month apartment on the Upper East Side after being let go from two jobs in three months. A woman found herself dipping into a 401(k) to keep her $3,375 unit in Peter Cooper Village after her husband was laid off in February from his six-figure marketing job. A father of two with an M.B.A. and a law degree owed $5,400 in back rent in Stuyvesant Town after he struggled to find steady work and lent money to his wife’s family. Lawyers, judges and tenant advocates say the staggering economy has sent an increasing number of middle-class renters across New York City to the brink of eviction, straining the legal and financial services of city agencies and charities. May 5, 2009
Guilty Pleas Abound As Outrage MountsIt was going to be the fraud trial of the summer in Maryland, the tale of an ex-stripper who got rich off the desperation of homeowners she and her husband promised to save from foreclosure. With their lavish wedding at the Mayflower, where they were serenaded by Patti LaBelle and feasted on lobster and Cristal, Joy Jackson and Kurt Fordham would have made sumptuous villains for just about any jury.And that is almost certainly one reason they won’t be having their day in court. Unwilling to test the depth of public displeasure, not to mention the government’s evidence, Jackson, Fordham and many other defendants in Maryland’s biggest mortgage fraud cases have been making deals of a different sort. May 5, 2009
Fed Says Banks Tightening Mortgage StandardsA larger share of banks has made it more difficult for people to obtain home mortgages over the last three months even as demand has grown, the Federal Reserve reported Monday. The Fed’s new quarterly survey found that about 50 percent of U.S. banks tightened their lending standards on prime mortgages, up from about 45 percent in the survey issued in early February. May 5, 2009
Seniors at Home in Co-housingProjects such as Silver Sage are called co-housing. European-inspired housing built around a common area and a social compact that all residents agree to, co-housing has existed on a small scale in the USA for years. Now, the concept is coming to senior housing, a trend supported by advocates who favor independent living for the old. The oldest of 79 million Baby Boomers turn 63 this year, and they are “not interested in what their parents had in terms of assisted care, wasting away in a private house or nursing home,” says California architect Charles Durrett, author of The Senior Cohousing Handbook. May 4, 2009
Jack Kemp’s Work ‘Enduring to This Very Day’In 1981, Jack Kemp co-authored a sweeping bill of tax cuts that became the centerpiece of then-president Reagan’s domestic agenda. As a lawmaker and later as HUD secretary, he championed financial assistance for first-time home buyers and urban enterprise zones to revitalize the nation’s city centers by offering tax breaks and other incentives to attract business. Today, the federal government funds enterprise zones in nearly 50 communities. Many states have also adopted the concept. May 4, 2009
Going Green can Cost too much GreenAcross the country, government agencies are either cutting or shrinking programs that use or fund renewable energy projects. Green power — from wind farms, solar power or other renewable energy sources — remains more expensive than traditional power sources. As budgets shrink, some people have had to scale back their green ambitions. Going green isn’t easy, especially during a recession.For two years, the city of Durango, Colo., bought electricity for all its government buildings from wind farms. The City Council ended that program this year, reverting to electricity derived from coal-burning plants and saving the cash-strapped city about $45,000. May 4, 2009
Paying Tax Credit Forward Would Get More Buyers In the DoorFor the housing market, it’s the equivalent of financial alchemy, and it’s hot: Turning the $8,000 federal home-purchase tax credit, which normally can’t be spent until you get your refund, into cash today, available for your down payment and closing costs. The stimulus bill’s tax credit for 2009 is generating efforts nationwide to find ways to “monetize” it — providing money upfront to buyers for down payments now, not next year after they file their federal returns and get refunds. May 4, 2009
Getting Around a Lender Who Won’t SubordinateQ: My wife and I purchased our home a couple of years ago, with 10 percent cash down, a $417,000 first mortgage and a $77,000 home-equity line of credit. We would like to refinance our first mortgage to take advantage of today’s low interest rates, but the holder of our line of credit refuses to subordinate. We feel this is unreasonable. After refinancing, the payments on our first mortgage would be reduced significantly; with the lower payments, we are less likely to default, thereby making the lender’s position more secure. May 4, 2009
How a ‘Green House of the Future’ Can Impede Environmental ProgressIt’s fun to think about how innovative technology and creative design someday might radically change the look and performance of a fully sustainable single-family home. The Wall Street Journal got into the game recently with a report on concepts by four architectural firms that the newspaper asked to imagine the “Green House of the Future.” But how much can cool-looking, zero-carbon houses of the future contribute to meeting the nation’s challenges: creating a healthier environment; achieving energy independence; and arresting climate change by burning less fossil fuel to run vehicles, generate electricity, and heat, cool and light buildings? May 4, 2009
Pending Home Sales Rise 6.7% in AprilPending sales of previously owned homes in April unexpectedly saw their biggest monthly gain in 7-1/2 years, a report from a trade group Tuesday showed, supporting views the recession is easing.The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in April, rose 6.7% in April to 90.3 from 84.6 in March. It was the third straight monthly increase and the largest jump since October 2001. The monthly gain took the index 3.2% above its year-ago level in the latest sign the battered U.S. housing sector was stabilizing. May 3, 2009
Senate Votes Down Foreclosure Mortgage Relief BillThe Democratic-controlled Senate on Thursday defeated a plan to spare hundreds of thousands of homeowners from foreclosure through bankruptcy, a bill President Barack Obama embraced but did little to see it through. A dozen Democrats joined Republicans in the 45-51 vote to scuttle the bill, which Obama had said was important to saving the economy and promised to push through Congress. But facing stiff opposition from banks, Obama did little to pressure lawmakers who worried it would encourage bankruptcy filings and spike interest rates. May 1, 2009
Parallel Second Lien Program to Help Homeowners Achieve Greater AffordabilityThe Obama Administration today announced details of new efforts to help bring relief to responsible homeowners under the Making Home Affordable Program, including an effort to achieve greater affordability for homeowners by lowering payments on their second mortgages as well as a set of measures to help underwater borrowers stay in their homes. “With these latest program details, we’re offering even more opportunities for borrowers to make their homes more affordable under the Administration’s housing plan,” said Treasury Secretary Tim Geithner. May 1, 2009
State Signs New Road Home Contract with HGI Catastrophe ServicesA Lutcher-based firm signed a contract this week worth up to $30 million over two years to run the Road Home homeowner grant program, and it contains several clear performance goals and penalties for noncompliance. Hammerman & Gainer, better known in Road Home circles as HGI Catastrophe Services, began its transition into its role as lead Road Home contractor in March and assumed full control on April 20. May 1, 2009
First-time Buyers Find Deals, Help Perk up House SalesUp to 45% of homes being purchased today are in that category, according to an April report by the National Association of Realtors (NAR) — and that’s a major force driving existing home sales. First-time buyers accounted for more than half of all home sales in March, with activity concentrated in lower price ranges. But there is a troublesome side, because sales of foreclosed and other distressed homes tend to drag down overall home prices across the USA. These properties typically sell for 20% less than traditional homes. April 30, 2009
City on the Hook for Developer’s LoanThe financial woes of one of Baltimore’s best-known development companies are rippling through government, with Baltimore lawmakers allowing the developers to walk away from $700,000 in loans on Wednesday and state officials growing concerned that the company will be unable to fulfill its commitments for a planned $1.6 billion office complex in midtown Baltimore. Struever Eccles and Rouse is known for its historic rehabilitation of city industrial buildings, including Tindeco Wharf and Clipper Mill. Facing millions in debt, the company has in recent months sought to sell key pieces of property, including the gleaming headquarters it redeveloped at Tide Point. April 30, 2009
Government Officials may Offer more Housing Aid to New Orleans Hurricane Victims in Trailers and HotelsA letter mailed this month informing families living in federally-financed hotel rooms or travel trailers that their housing aid will run out Friday fails to state that FEMA may extend the assistance or help them secure other resources if they request it, an agency official said Wednesday. Gail Tate, spokeswoman for the Federal Emergency Management Agency, told the New Orleans City Council’s Recovery Committee that if residents still displaced because of Hurricanes Katrina or Rita can show progress toward obtaining permanent housing, the agency, along with the Louisiana Recovery Authority, will help them acquire rental vouchers, utility and food assistance or other aid. April 30, 2009
Home Prices Don’t Decline as MuchPrices of single-family homes in 20 U.S. metropolitan areas in February were down 18.6% from a year earlier, yet the fact that the rate of decline slowed signaled some hope for the housing market, a report said Tuesday. In 15 markets, annual declines were in excess of 10% and average home prices nationwide hit 2003 levels, according to the Standard & Poor’s/Case-Shiller index. Yet the drop in the 20-city index was less than the 19% year-over-year decline in January. April 29, 2009
Senate Votes to Hire Officials Targeting Mortgage FraudThe Senate voted Tuesday to hire hundreds more FBI agents and prosecutors to investigate the estimated 5,000 allegations of mortgage fraud reported each month. The 92-4 bipartisan vote came as a House panel considered an anti-predatory lending bill that attempts to ban the type of subprime mortgage loans that contributed to the nation’s economic slide. It also came as the former head of a one-time leading mortgage lender, American Home Mortgage Investment, agreed to pay nearly $2.5 million to settle allegations of accounting fraud. April 29, 2009
Obama Administration Expands Housing Aid PlanThe Obama administration said Tuesday it is expanding its plan to stem the housing crisis by offering mortgage lenders incentives to lower borrowers’ bills on second mortgages. During the housing boom, lenders readily gave out “piggyback” second loans that allowed consumers to make small down payments or avoid them entirely. While home prices soared, such mortgages were even extended to borrowers with poor credit scores and people who didn’t provide proof of their incomes or assets. April 29, 2009
Foreclosure Prevention Plan Expanded to 2nd MortgagesThe Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors. Under the expanded plan, some homeowners could see their payments fall significantly and the interest rate on their second mortgage pushed down to 1 percent. The announcement comes nearly two months after the administration launched the housing program, called Making Home Affordable. While officials said some borrowers have already received help, the foreclosure rate is rising and it could be months before the program begins to have an impact. April 29, 2009
Four Indicted in Md. Mortgage Fraud CaseState and federal authorities announced criminal indictments Monday in an alleged $70 million mortgage fraud scheme that ensnared more than 1,000 homeowners, most of them from Maryland.Assistant U.S. Attorney General Lanny A. Breuer said charges had been brought against four people in connection with the alleged Ponzi scheme, including Andrew H. Williams Jr., who was enjoined by Maryland authorities in 2007 when they froze his Metro Dream Homes operation. April 29, 2009
New Home Tax Credit: Good for the City?A property tax credit meant to lure new residents to Baltimore and spur development in impoverished neighborhoods instead rewards current city dwellers who inhabit booming parts of the city, according to a report issued by the city’s Finance Department. In the past nine months, 75 percent of the applications for the program, called the Newly Constructed Dwelling Tax Credit, came from 10 neighborhoods, according to the finance data. Forty percent of the credits went to households earning more than $100,000 a year. And more than three-quarters of those who took the credit were only considering buying in Baltimore. April 29, 2009
HUD SECRETARY ANNOUNCES DISASTER ASSISTANCE FOR GEORGIA STORM VICTIMSU.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to 27 storm-ravaged counties in Georgia and provide support to homeowners and low-income renters forced from their homes from severe storms, flooding, tornadoes, and straight-line winds. April 28, 2009
Major Mortgage Fraud Is AllegedIt was a mortgage fraud and a Ponzi scheme, and it was, prosecutors say, a moneymaker. In just a couple of years, the Dream Homes Program stole at least $70 million from more than 1,000 people, many of them in Prince George’s County, by promising to pay off their mortgages in exchange for investments of at least $50,000, prosecutors said. After the operators were shut down by the Maryland attorney general in 2007, federal officials began investigating Metro Dream Homes. Yesterday, the Justice Department announced that the company’s owner and four other people have been charged with participating in a massive fraud. April 28, 2009
Mortgage Modification Bill Faces Trouble in SenateDays before an expected vote, Senate leaders yesterday touted their version of a proposal to allow bankruptcy judges to modify mortgages, but have yet to secure the support of the financial services industry and face fierce opposition that could derail the proposal again. Senate Majority Whip Richard J. Durbin (D-Ill.) has been negotiating with Bank of America, J.P. Morgan Chase and Wells Fargo for weeks. They are facing increasing pressure to conclude negotiations before a Senate vote later this week, but talks continue, according to Senate aides. April 28, 2009
Nixon’s Farm Avoids Foreclosure Auction — for nowWith the postponement of a foreclosure auction, the family that owns Nixon’s Farm, a longtime Howard County landmark known for weddings, reunions and political events, is struggling to stave off creditors while restructuring development plans stymied by the recession. Court files show three foreclosure cases brought against the Nixon family for loans obtained since 2002. But operator Randy Nixon said Friday that he expects to prevent a foreclosure sale and that the residential development project will proceed. April 28, 2009
CitiMortgage CEO Sanjiv Das Helps People Keep Their HomesThere is very little in Sanjiv Das’ uncluttered office. Just snapshots of his wife and his 20-year-old daughter, Natasha. No pictures of his favorite sports: golf and cricket. Das has moved around the world, run credit card acquisitions for American Express in India, and handled the mortgage business for Citibank in Sydney. But none of it compares to what he’s doing now. His spartan office shows Das hasn’t even had time to personalize his space. Most of his spare time is invested in his job as CEO and president of CitiMortgage. April 26, 2009
Utilities Amp up Lobbying over Climate DebateFifty of the nation’s largest electric utilities amped up spending on lobbyists by 30% late last year to influence the debate in Congress just underway on one of the biggest issues facing lawmakers: climate change. From Duke Energy, with 4 million customers, to American Electric Power (AEP), which sells energy in 11 states, the companies spent a total $51 million in the last six months of 2008, $12 million more than the same period in 2007, a USA TODAY review of lobbying reports shows. April 26, 2009
American Radicals as Co-op Housing PioneersThe portal that held Ms. Goldman’s attention was one particularly revealing part of the United Workers Cooperative Colony, a housing complex created and populated 80 years ago by American Communists and their sympathizers. Commonly known as “the Coops,” the project has been privately owned for decades and includes only a handful of its original 2,000 residents. After almost a decade of gestation Ms. Goldman’s documentary about the Coops, “At Home in Utopia,” will be broadcast at 10 p.m. Tuesday as part of PBS’s “Independent Lens” series. In this film she has recaptured a daring social experiment, limning its idealism on race relations and social justice and its ultimately fatal embrace of Communist doctrine. April 26, 2009
Mortgage Safety Net May Help More New Buyers Take the PlungeNor would it be surprising if uncertainty about your income is a major barrier keeping you out of the home-buying market this spring. That’s why a previously obscure charitable group based in the District, the Rainy Day Foundation, suddenly is doing a booming business in what’s called the mortgage payment protection niche. According to its chief executive, Rick Del Sontro, Rainy Day is offering free job-loss protection coverage and home buyer financial counseling through approximately 100 builders and lenders across the country, plus two large real estate brokerages. April 26, 2009
For Borrowers in Trouble, There May Be AlternativesQ: I am in financial trouble and have been trying to reach my lender. I have made several calls in the past two weeks, with no success. Sometimes, I have been disconnected while talking to a bank representative. When I am finally able to reach a live person, it is never the same one I talked with earlier. Once, I spoke with someone in New Delhi, and the next day my call was directed to Phoenix. I have to go through the same drill each time: what’s my loan number, my name, the last four digits of my Social Security number. April 26, 2009
Volunteer Group Makes Big Effort in Little Woods Neighborhood in Eastern New OrleansWhile thousands of volunteers every day continue to rebuild storm-damaged homes around metro New Orleans, a coalition of churches has focused 500 workers in a sliver of eastern New Orleans, picked largely because it’s been somewhat overlooked. Their work began just after Easter and will continue deep into May, as teams gathered from around the country by Church World Service rehabilitate 12 to 15 ruined homes in the Little Woods area, near the Lakefront. April 26, 2009
New Home Sales Data Show Encouraging SignsAfter a staggering 74 percent decline from the peak in July 2005, new U.S. home sales appear to be bottoming out. The pace of home sales, which hit a record-low in January, jumped in February and was flat in March, the Commerce Department said Friday. At the same time, the inventory of new homes for sale dropped a badly needed 5 percent from February levels. “We believe that the bottom is at hand and that sales will begin turning in the second half of this year,” wrote IHS Global Insight economist Patrick Newport. April 26, 2009
Buyers Cautiously Sniffing Housing MarketWith white tin ceilings, original woodwork, bay windows, and a $699,000 price tag, the two-bedroom apartment at 719 Carroll St. in Brooklyn would have been snatched up in a New York minute a couple of years ago. Instead, it’s been on the market for more than two months. On a recent spring weekend 14 buyers came through, and still no bids. “We’re in the early stages of the search,” said Joanna Brett, 33, as she checked out the apartment with Sarah Madigan. “We’ve been looking on and off for six months.” April 26, 2009
Home Prices in March Fall 12% from ‘08 Despite Monthly UptickHome prices continued to slide last month as foreclosed and other distressed properties drew first-time buyers and bargain hunters into the market. Although prices rose from February to March, the national median existing-home price for all housing types was $175,200, down 12.4% from March 2008, the National Association of Realtors (NAR) reported Thursday. April 24, 2009
Mortgage Rates Dip Further in Latest Week to Near Recent LowsMortgage rates fell in the latest week, nudging closer to a recent record low, helped by government efforts to bring rates down to levels that will spur demand and help the hard-hit housing market begin to recover. Interest rates on 30-year fixed-rate mortgages fell to 4.80% for the week ending April 23, down from the previous week’s 4.82%, according to a survey released on Thursday by home funding company Freddie Mac. Three weeks earlier, mortgage rates were 4.78%, which was the lowest since Freddie Mac started surveying them in 1971. April 24, 2009
HUD SECRETARY DONOVAN OPENS GREEN ROOF AT WASHINGTON DC HOUSING AUTHORITY’s REGENCY HOUSEU.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan yesterday joined Washington Mayor Adrian Fenty and other elected officials at the “Greening of Public Housing” event at the D.C. Housing Authority (DCHA) property, Regency House in Northwest D.C. Secretary Donovan officially opened the building’s new “green” roof on Earth Day. April 24, 2009
Small Change for Reducing Your Utility BillEarth Aid Enterprises was founded in the District in 2007 as an online retailer for energy efficient products such as LED night lights and oxygenating showerheads. The firm tracked not only how many items it sold, but also the amount of energy it expected consumers to save. Those energy savings are valuable not only to us in the form of lower utility bills, but also potentially to companies that want to buy credits to offset their own carbon footprints. Earth Aid soon realized it could bundle the energy reductions of a household over the course of a year and then sell them off — returning most of the profit back to the consumer. April 24, 2009
Holding Up the Housing RecoveryWe welcomed President Obama’s plan, unveiled in March, to head off foreclosures and keep more Americans in their homes, but we feared that it wouldn’t be enough. We were particularly concerned that without a reform of the bankruptcy code, lenders wouldn’t do enough to voluntarily modify troubled loans. Seven weeks later, bankruptcy reform legislation is stalled in the Senate because of Republican opposition. Meanwhile, foreclosure filings — including notices of default, auctions and repossessions — rose again in the first three months of this year. April 24, 2009
Banks foreclosing on homebuilderAuction signs sprout from manicured front yards of a row of new brick and stone townhouses in Columbia, signaling yet more foreclosures amid the collapse of the luxury housing market. But in what some experts see as the latest wave of foreclosures to hit the Baltimore area, the homes’ builder, rather than homebuyers, went into default. Two separate lenders have foreclosed on 35 of Dale Thompson Builders’ unsold homes, building lots and unfinished houses in Columbia’s Scot’s Glen townhouse development. One lender also foreclosed on seven lots in a neighborhood of $1 million homes in western Howard County, according to public records detailing property auctions. Two auctions are scheduled for Friday. April 24, 2009
For Housing Crisis, the End Probably Isn’t NearThe closest thing to a real estate crystal ball in the last few years has been the house auctions that are regularly held around the country. In 2006 and early 2007, the official housing statistics were still showing that house prices were holding up. But that was largely because so many sellers were refusing to sell. The auctions, made up mostly of foreclosed homes, showed the truth: house values were starting to plummet in many places. So a few weeks ago, I decided to go to an auction at a hotel ballroom in Washington — and to study the results of several others elsewhere — with an eye to figuring out whether prices may now be close to bottoming out. April 23, 2009
Bill Would Bring Relief for HomeownersIf you’re considering filing for personal bankruptcy because you’re having trouble making the mortgage payments on your primary residence, keep an eye on the so-called “cramdown” bill. The measure, which is part of President Obama’s housing plan and is making its way through Congress, would allow bankruptcy judges in Chapter 13 proceedings to reset the terms of certain mortgages so that more homeowners can keep their homes. April 23, 2009
Math Smiles on Move-up BuyersAfter two years of married life in a 680-square-foot, one-bedroom Seattle condo, Lori and Chris Kirsten were ready to spread out in a real house with room for a home theater and a yard where the Labrador retriever they had always wanted could roam. The Kirstens prepared to list their condo for sale and go house-hunting, banking on equity in the unit, which Lori had brought in 2003 for $130,000, to help with the transition to a larger place. Seattle’s hot real estate market had pushed the condo’s value to $215,000 or more at its peak in 2007. April 23, 2009
An Effort to Save a City by Shrinking ItDozens of proposals have been floated over the years to slow this city’s endless decline. Now another idea is gaining support: speed it up. Instead of waiting for houses to become abandoned and then pulling them down, local leaders are talking about demolishing entire blocks and even whole neighborhoods. The population would be condensed into a few viable areas. So would stores and services. A city built to manufacture cars would be returned in large measure to the forest primeval. “Decline in Flint is like gravity, a fact of life,” said Dan Kildee, the Genesee County treasurer and chief spokesman for the movement to shrink Flint. “We need to control it instead of letting it control us.” April 22, 2009
New Orleans Bond Rating Hits Post-Katrina MilestoneFor the first time since Hurricane Katrina, all three of the nation’s major bond-rating agencies agree that bonds issued by New Orleans are worth buying. Standard & Poor’s Ratings Services on Tuesday raised its rating for the city’s bonds to investment-grade for the first time since it sharply downgraded the city after Katrina. The action should significantly enhance the city’s chances of selling as much as $80 million of new bonds this year to pay for capital improvement projects, provided the nation’s troubled financial markets cooperate. April 22, 2009
Four States Dominate City Foreclosure RankingsThe 26 U.S. cities with the worst foreclosure problems are concentrated in four states — California, Florida, Arizona and Nevada, a report released Wednesday shows. The report on foreclosures for the first quarter by RealtyTrac Inc. found the highest foreclosure rates were found in Las Vegas, Merced, Calif. and the Cape Coral-Fort Myers area in Florida. Next on the list were the California metro areas of Stockton, Riverside, Modesto, Bakersfield and Vallejo-Fairfield. April 22, 2009
Fannie Mae Names Insider Michael Williams as CEOFannie Mae (FNM), the largest provider of U.S. residential mortgage funding, Monday named Michael Williams, an 18-year veteran of the government-controlled company, as president and chief executive officer. Williams, most recently the company’s chief operating officer and previously with KPMG Peat Marwick and DuPont Company, succeeds Herbert Allison. Allison has been nominated as assistant secretary for financial stability and counselor to the secretary at the Treasury Department. April 21, 2009
Makers of Plastic Bags to Use 40% Recycled Content by 2015The plastic bag industry has an Earth Day surprise: less plastic. Under pressure from consumers, environmental advocates and retailers, the companies that make more than 80% of plastic bags used by the nation’s big retailers on Tuesday will announce plans to make the plastic bags from 40% recycled content by 2015. It’s no accident that the announcement is being made around Wednesday’s 39th observance of Earth Day. April 21, 2009
Suit Says Faulty Elevators in Public Housing Violate Rights of TenantsThe city’s public housing agency is violating the rights of tenants with disabilities and other health problems by failing to properly maintain its elevators, leaving them stranded for hours during frequent breakdowns, according to a federal class-action lawsuit expected to be filed Tuesday. The lawsuit, prepared by lawyers representing seven tenants, accused the agency of a “widespread and systemic failure to maintain the elevators in its buildings in operable working condition,” in violation of disability and human rights laws. April 21, 2009
Schumer Seeks Grants to Battle Mortgage FraudFlanked by New York City’s five district attorneys, Senator Charles E. Schumer called on the federal government on Monday to pump $100 million into fighting mortgage fraud. Mr. Schumer, the state’s senior senator, said he would submit legislation seeking federal grants for local prosecutors across the country. Last month, he obtained an $875,000 grant for the Brooklyn district attorney to set up a similar antifraud unit. For too long, he said during a news conference in Manhattan, federal and local prosecutors, burdened with heavy caseloads and too few staff members, have tended not to prosecute such crimes, often suggesting that victims pursue justice in civil court. April 21, 2009
Want a Second Home? Save Up.Getting a mortgage for a home these days can be tough, and getting one for a second home can be even tougher. In the wake of the mortgage market meltdown, lenders are demanding particularly large down payments from people shopping for a vacation home or an investment property, a group they deem to be especially risky. But as the vacation season approaches, coming up with that cash may be a real challenge. Home-equity lines of credit, once a reliable source of down-payment money, are no longer readily available to homeowners. April 21, 2009
Lenders Battle Lawmakers Over Letting Courts Modify MortgagesAs lenders begin to implement the Obama administration’s foreclosure rescue program, Senate Democrats are wrangling with the financial services industry over a key part of the plan that would permit bankruptcy judges to cut the principal owed by mortgage borrowers. Congressional and industry officials said progress is being made, but no deal has been struck. Major lenders, including Bank of America, Wells Fargo and J.P. Morgan Chase, negotiated with Sen. Richard J. Durbin (D-Ill.), who is leading the effort in the Senate, through the recent two-week recess, officials said. The banks declined to comment. April 21, 2009
Corps of Engineers Upbeat about West Bank Flood ProtectionThe Army Corps of Engineers’ New Orleans district commander is “pretty confident” West Bank flood-protection upgrades will be completed by June 2011 as planned, thanks to extended construction hours and increased efficiency by getting contractors involved in the planning stages. But West Bank levee board members said the good news is tempered by controversy over proposed sites for excavating clay to raise levees and questions about who will pay to run a massive pumping station to be built south of Harvey. Corps officials said the pump station, possibly the largest in the world, would cost about $1.8 million a year to operate, an expense that now would be borne by local or state government. April 21, 2009
Freddie Mac’s Refinance Policy Drawing FireMortgage brokers and small lenders say they’ve been left out of a big part of the Obama administration’s plan to help borrowers refinance their home loans and take advantage of near record-low interest rates. The new guidelines released earlier this month are different for Fannie Mae and Freddie Mac, the government-controlled companies that own or guarantee almost 31 million mortgages — more than half of all U.S home loans. Most strikingly, mortgage loans held by Freddie Mac can only be refinanced by the company that currently collects payments on the loan, known as the mortgage servicer. April 21, 2009
Detroit Councilman Walks away from MortgageIt was their dream home, a two-story, four-bedroom colonial in one of Detroit’s nicest and most stable neighborhoods. But then, one day in December, City Councilman Kwame Kenyatta and his wife packed up their belongings, locked the doors, mailed in the keys and walked away — adding another vacant house to the thousands in a city hard hit by the nation’s mortgage crisis. “We’re already underwater when it comes to what we’re paying on the house versus what the house is worth,” Kenyatta said. April 21, 2009
New Orleans Housing Project is Model for RecoveryWendell Pierce, an actor best known for his role at Detective William “Bunk” Moreland on HBO’s The Wire, splits a lot of his time lately between Los Angeles and his hometown of New Orleans. Pierce wants to make sure his push to rebuild one of the city’s most flood-wrecked neighborhoods — Pontchartrain Park — succeeds. The neighborhood of 1,000 homes was slammed with up to 10 feet of floodwater in 2005 during Hurricane Katrina and has been slow to rebound. Now a grass-roots plan that partners residents with the city is about to return the neighborhood to its mid-1950s splendor, developers and residents say. April 20, 2009
Florida to Test Air in Homes with Chinese DrywallOfficials in Florida will soon begin air quality tests in homes to determine whether fumes emitted from Chinese-made drywall can make people sick, the state Health Department said Friday. Agency spokesman Doc Kokol said the tests, which he hopes will begin in several weeks, are complex and have never been done before. “This is new science, nobody has tested drywall like this,” he said. Estimates indicate the drywall may be in more than 100,000 homes, more than 35,000 in Florida alone. The state Health Department has logged 265 complaints so far. Lawsuits against the Chinese manufacturers, builders and suppliers have been filed in several states, including Florida, Mississippi, Alabama and Louisiana. April 20, 2009
Housing Construction Continues to DeclineHousing starts tumbled 10.8% in March, a distress sign that economists say means housing construction will not make a big turnaround soon. Construction of new homes and apartments fell to a seasonally adjusted annual rate of 510,000 units, the Commerce Department said Thursday. That was the second-lowest rate in the department’s records, which go back 50 years. April 20, 2009
Debt Settlers Offer Promises but Little HelpTyna Carter, burdened with $25,000 in credit card debt, did not want to be a deadbeat. After looking for help on the Internet, Mrs. Carter, a West Virginia homemaker, wound up in the hands of a sweet-talking “credit specialist” from Texas. He claimed his company, Credit Solutions of America, could set her on the road to a debt-free life. But what really happened, Mrs. Carter says, is that Credit Solutions pocketed nearly $4,000 of the couple’s income, a little bit each month. Now they are in a deeper hole than ever. April 20, 2009
Why Isn’t the Brain Green?Two days after Barack Obama was sworn in as president of the United States, the Pew Research Center released a poll ranking the issues that Americans said were the most important priorities for this year. At the top of the list were several concerns — jobs and the economy — related to the current recession. Farther down, well after terrorism, deficit reduction and energy (and even something the pollsters characterized as “moral decline”) was climate change. It was priority No. 20. That was last place. April 20, 2009
Low Price, Low Rate, Sky-High FeesHouse prices and mortgage rates are down, which sounds great for buyers and refinancers. But a series of underwriting and appraisal changes taking effect this month is throwing new obstacles in the way of borrowers and loan officers. Take Fannie Mae’s and Freddie Mac’s add-on fees for loans purchased after April 1. In some cases, applicants are being hit with extra fees of 3 percent to 5 percent because of the type of property they want to buy or refinance, their credit scores, or the size of their down payment. April 20, 2009
Do Your Homework Before Any Home WorkQ: I had a home improvement salesperson come into my home who swore that she was licensed in the District of Columbia. She persuaded me to do home improvement projects with her company. I signed an agreement that had her signature, title and license number. She explained that her costs were higher than the price of another company I was looking at because of the quality work and the fact that they do not sub out the work. April 20, 2009
Standing in the Way of Smart Urban DevelopmentSome residents of the District cling to a suburban mentality. This mentality, coupled with government mismanagement, can obstruct desirable redevelopment. For the city to evolve, residents’ attitudes and government performance must change. Project opponents typically voice anxiety about increased density, shifting uses and populations, worsening traffic, and the prospect that new buildings won’t be in harmony with the existing context. Some mistrust government and believe that only the interests of developers are being served. Others simply fear change. Despite compelling evidence of the merits of a redevelopment project, opponents rarely change their minds. April 20, 2009
Jarvis DeBerry: File hotel pledge under FEMA’s liesWhat FEMA officials need is that incomprehensibly fast-talking guy who comes on at the end of radio commercials to say that the sales pitch just made isn’t valid in all states, that people with less than perfect credit shouldn’t bother and that the FDA hasn’t actually said the product will make users better lovers. FEMA needs that guy because, apparently, its plain-spoken promises to take care of hurricane evacuees are not to be accepted at face value. They come with caveats that exclude virtually everybody.Take the promise that Michael Chertoff, then the Secretary of Homeland Security, made Sept. 3. It sounded so wonderful that I immediately told members of my church who’d left New Orleans for Hurricane Gustav that they weren’t in as much financial distress as they feared they were. Chertoff, I told them, had promised FEMA’s help to everybody whose homes were uninhabitable. April 20, 2009
Some Homeowners See Giving up as Best OptionTeresa Bondora and her family abandoned their two-story brick home in Atlanta rather than fall behind on their mortgage and $30,000 worth of home renovation debt. The decision was tough for Bondora, a home-schooling curriculum developer raised to believe that preserving good credit and paying bills on-time were key adult responsibilities. “I was willing to walk away and live with someone else while we get out of debt,” Bondora says. “I’m not worried about anything anymore.” April 20, 2009
PBS Takes on Global Energy with Web-driven ‘Planet Forward’Creative solutions to solving the world’s energy problems take center stage tonight at 8 ET/PT in the PBS special Planet Forward, the brainchild of veteran TV newsman Frank Sesno. Tonight’s show showcases citizen-produced videos recently uploaded to the project’s website, PlanetForward.org, launched in March. Videos are from such varied sources as Girl Scouts in Rochester, N.Y., explaining their use of solar energy in baking, to an animated segment by a Bangladeshi college student concerned about the potential of devastating sea-level rise in his home country. April 15, 2009
Economic Survivalists Take RootWhen the economy started to squeeze the Wojtowicz family, they gave up vacation cruises, restaurant meals, new clothes and high-tech toys to become 21st-century homesteaders. Now Patrick Wojtowicz, 36, his wife Melissa, 37, and daughter Gabrielle, 15, raise pigs and chickens for food on 40 acres near Alma, Mich. They’re planning a garden and installing a wood furnace. They disconnected the satellite TV and radio, ditched their dishwasher and a big truck and started buying clothes at resale shops. April 15, 2009
Rochester, Minn.: Mayo Clinic Keeps Housing Market HealthyIn recent years, Rochester, Minn., has been sheltered from the housing crisis. Many other housing markets experienced a dramatic boom and bust, but Rochester has remained relatively stable because its largest employer is the Mayo Clinic. The teaching hospital has a revolving door of residents and fellows, who tend to be home buyers. “Typically they come in knowing full well that they only are going to live here for three or four or five years,” says Robin Gwaltney, a real estate agent. “But they buy a home instead of renting property, and they sell it when they are leaving.” April 15, 2009
Offices Go Vacant at Fannie and FreddieUntil a year ago, two of the most coveted workplaces in this city were Fannie Mae and Freddie Mac, the mortgage finance giants at the intersection of Washington and Wall Street. The companies offered a lucrative perch for former top administration officials and Congressional aides interested in continuing to shape policy. Now both companies are suffering from an exodus of senior and midlevel managers. The companies have been unable to replace executives who have either been pushed aside as part of last year’s government takeover, or who sought refuge at less stigmatized companies offering better pay and a more predictable future. April 15, 2009
Bernanke Presses Financial Literacy For MinoritiesAmerican minorities need to “strengthen their financial literacy,” Federal Reserve Chairman Ben S. Bernanke told students and faculty at Atlanta’s historically black Morehouse College yesterday. On a day when President Obama delivered an Economic Crisis 101 lecture to students and faculty at Georgetown University, Bernanke was doing the same at the all-male school in Georgia. Bernanke was asked about the wealth gap between American whites and blacks during an expansive question-and-answer session following his speech. Some of the questioners said they had postgraduate jobs lined up as investment bankers, others in finance at large corporations. April 15, 2009
Senator’s Foreclosure Auction CanceledMonday’s scheduled foreclosure auction of the Senator Theatre has been canceled, as city officials work on plans to acquire the 70-year-old North Baltimore landmark. C. Larry Hofmeister, an attorney representing mortgage holder 1st Mariner Bank, said Tuesday that there are no plans to reschedule the auction at this time. Baltimore Mayor Sheila Dixon announced Saturday that the city, which is the guarantor on $600,000 of the Senator’s $950,000 mortgage, would seek to purchase the mortgage from 1st Mariner. Provided no one steps forward willing to pay off the full amount of the mortgage, the proposal calls for the city to then find someone to operate the theater, preferably as a community-based arts and education center, likely to include movie screenings as well as concerts and other events. April 15, 2009
Road Home Stops New Closings, but Only for Short TimeSome Road Home applicants who have been waiting almost three years for rebuilding grants got a scare recently when title agents told them their files were being frozen. Sharon Pate Bell, a single mother and college student, was told her scheduled closing would be postponed because the lead Road Home contractor, ICF International, was being replaced. One of ICF’s subcontracted title companies, Bayou Title of Gretna, faxed small rental program applicant Brad Robinson to say: “As a contractor of ICF, we have been instructed not to schedule any additional closings or complete any further title work.” April 15, 2009
Despite Housing Downturn, Renters Get No ReliefJeffrey Myers can’t make the rent — by himself. He works part-time at UPS and as a freelance photographer, but the $2,200 he pulls in a month isn’t enough to afford an apartment in Orange County, Calif., without a roommate. “It’s hard to meet people who live by themselves. Most people have roommates,” said Myers, 31. For homebuyers, affordability is the best it’s been for decades, but for millions of renters coast to coast affordability is still getting worse, according to a study released Tuesday. April 15, 2009
Texas is Still Wind King, but Iowa Breezes Past CaliforniaTexas continues to blow away the competition, but Iowa can now generate more wind power than California, according to a new industry report released Monday. The Lone Star state’s 7,118 megawatts dwarfs Iowa’s 2,791 megawatts and California’s 2,517 megawatts, but wind power has grown into a key part of the energy infrastructure in Minnesota and Iowa, where each state generates more than 7% of their electricity from turbines, the American Wind Energy Association study said. States are trying to lure wind energy companies and the jobs that come with them, especially with federal requirements that will require more power from alternative sources in coming years. April 14, 2009
Surviving After the Boom in HarlemCommunity Board 10, which represents the central core of Harlem, has been at the heart of the uptown building boom in recent years. The district, which stretches from 110th Street to 155th Street and between Fifth and Eight Avenues, is home to many of Harlem’s historic institutions like the Apollo Theater, as well as many of the newer condo projects that have attracted a diverse mix of residents to this historically black neighborhood. W. Franc Perry, chairman of Community Board 10, has begun seeing signs that the boom years have given way to recession. April 14, 2009
Open House, Anyone? 1 in 9 Homes Sit EmptyThe white notice taped to the front window of a luxury home in the Vasaro subdivision is a telltale sign.“Bank-owned,” says real estate agent John Groves, without skipping a beat. There are other clues. Dirt where a lush lawn should be. Vacant lots on either side. And the sale price: $729,900 for a never-lived-in, 5,500-square-foot, five-bedroom, 3.5-bath custom home that about a year ago was listed for more than $1.2 million. April 13, 2009
Houses, Decked Out for a Sale, Are RobbedThe Sunday open house is a sure sign of spring, a seasonal ritual in which marble-countered kitchens, light-filled master suites, spectacular rear gardens and closets galore are decorated to perfection to draw buyers. It is a common ploy here and elsewhere to have professional decorators “stage” unoccupied homes that are on the market with borrowed furnishings and appointments to help fetch top dollar, especially now that real estate sales have wilted like a week-old flower arrangement. But along with fragrant jasmine and wisteria in bloom, there is caution in the air here. The same painstaking efforts to attract buyers have also attracted thieves. April 13, 2009
Disclosing Energy EfficiencyPicture this: You’re shopping for a home, dropping by open houses on a weekend. Each house you visit has an easy-to-understand disclosure about something that’s typically unknown: its annual energy-guzzling costs. The Obama administration’s top housing official, Secretary of Housing and Urban Development Shaun Donovan, says consumers deserve more information on the energy efficiency of the houses they buy, both resale and newly built. And he thinks mortgages should come with lower rates or better terms to encourage purchases and retrofits that save energy. April 13, 2009
Read IRS Rules Carefully Before Taking a Home-Office DeductionQ: I work from home a lot and have heard that there are tax deductions that I can take. What are the rules?A: You may be entitled to a home-office deduction, but before you take it, talk the decision through with your own tax adviser. When you sell the property, you may have to recapture some of your deductions — that is, pay back the government… April 13, 2009
Chinese Drywall Poses Potential Risks, AP FindsAt the height of the U.S. housing boom, when building materials were in short supply, American construction companies used millions of pounds of Chinese-made drywall because it was abundant and cheap. Now that decision is haunting hundreds of homeowners and apartment dwellers who are concerned that the wallboard gives off fumes that can corrode copper pipes, blacken jewelry and silverware, and possibly sicken people. April 13, 2009
Foreclosure Sales Stalled by Red TapeAnxious to meet the bank’s demands for quick action, Andrew Garcia and his fiancee, BethAnne Hoffmann, rushed to find financing to buy a foreclosed-on house in a lovely tree-lined Baltimore neighborhood. That was in January. A month later, the bank that’s selling the house broke its own closing deadline. The couple has been in limbo since. In frustration, they turned to their congressman’s office for help. Only then did they receive an apologetic call and a new proposed closing date of April 24 — but still no signed paperwork. April 13, 2009
More Squatters Call Foreclosures HomeWhen the woman who calls herself Queen Omega moved into a three-bedroom house here last December, she introduced herself to the neighbors, signed contracts for electricity and water and ordered an Internet connection. What she did not tell anyone was that she had no legal right to be in the home. Ms. Omega, 48, is one of the beneficiaries of the foreclosure crisis. Through a small advocacy group of local volunteers called Take Back the Land, she moved from a friend’s couch into a newly empty house that sold just a few years ago for more than $400,000. April 13, 2009
Cities Cleaning, ‘Greening’ Urban AlleysCities are starting to see the thousands of miles of alleys ways that line the backside of homes and buildings in a new light. Rather than dismissing them as dark, dank and often dangerous spots used mainly for trash pickup and garage access, they’re treating them as valuable real estate that can help the environment and improve city life. Cities are getting rid of unsightly trash bins and creating things such as gardens and sidewalk cafes to attract people to these long-ignored spaces. In many cities, alleys are being resurfaced with porous materials that can absorb rainwater and reduce runoff. April 9, 2009
FHA SETTLES $756 MILLION DEAL TO CONSTRUCT STATE OF THE ART HOSPITAL IN NEW JERSEYIn the largest single transaction of its 75 year history, the Federal Housing Administration today announced that it has finalized a deal to insure a $756 million mortgage for Capital Health of Trenton, New Jersey. The loan is made possible through the FHA’s Section 242 Hospital Mortgage Insurance Program. It will allow Capital Health to construct a new 223-bed hospital in Hopewell Township to replace the existing Mercer Medical Center. April 9, 2009
Housing Slump Hits ManhattanWhile sales have picked up a bit in some suffering housing markets in the West, creating a glimmer of hope that home prices nationwide may be approaching a bottom, the Manhattan real estate market has just begun a steep slide. It parallels the decline in New York’s financial services industry, and housing analysts say it may continue long after other markets heal. Apartment prices have once more become the talk of the town in Manhattan, but this time the talk is of uncertainty and falling numbers. While brokers say they are seeing more activity lately, especially from first-time buyers taking advantage of lower interest rates, housing analysts are predicting a prolonged slump in prices and sales that could last as long as four or five years. April 9, 2009
Germany Offers to Buy Out Hypo Real EstateThe German government on Thursday moved a step closer to fully nationalizing Hypo Real Estate Holding, saying it planned to buy all of the troubled mortgage lender’s outstanding shares. Meanwhile, ING Group, the big Dutch bank, said it would sell assets to shore up capital. Soffin, the German government’s financial market stabilization fund, said it would offer €1.39, or $1.85 a share, for the 91.3 percent of Hypo’s shares that it does not already own. That values the company at about €290 million, and marks a premium of 13 percent over the closing price Wednesday. On March 28, the government said it would take an 8.7 percent stake in the company as a first step toward gaining full control. April 9, 2009
Before the Feature Film, a Message on Foreclosure ScamsIn an effort to push people away from foreclosure scams, the Federal Reserve has commissioned a 30-second commercial to be shown in the nine states with the highest incidence of home foreclosures. The commercial will air Friday through April 17 in 18 movie theaters in California, Nevada, Michigan, Ohio, Florida, Arizona, Georgia, Maryland and Virginia. Many are multiplex theaters, and the commercial will run on all screens. So in addition to movie previews and the plea for moviegoers to turn off their cellphones, people will be warned to avoid outfits that will take advantage of them if they are having trouble making their mortgage payments. April 9, 2009
Magna Protests State Bid to use Eminent DomainMagna Entertainment Corp. and its bankruptcy attorneys criticized Gov. Martin O’Malley’s bid Wednesday to assert eminent domain powers over the Preakness Stakes, saying passage of the legislation could lead to more litigation. The governor and lawyers for the state said the proposed law - which has the backing of legislative leaders - is necessary to ensure that the Preakness does not go the way of the Baltimore Colts in the wake of bankruptcy proceedings that began in Delaware last month. Hearings on the emergency bill are scheduled for Thursday morning. April 9, 2009
Helping Families Save Their Homes in Bankruptcy Act Action AlertThe Helping Families Save Their Homes in Bankruptcy Act (S. 61) is designed to help stabilize our economy by allowing homeowners a final option to modify their mortgages in bankruptcy court, which would reduce foreclosures. It is estimated that 6,600 families are losing their homes to foreclosure every single day. S. 61 would provide homeowners with a final option to prevent foreclosure through the Chapter 13 bankruptcy process, by setting up realistic and affordable mortgage payment plans. April 9, 2009
2 Homebuilders Merge in $1.3 Billion DealIn a transaction that would create the nation’s largest homebuilder, Pulte Homes and Centex said Wednesday that they would merge in a $1.3 billion stock-for-stock deal. The transaction valued by the companies at $3.1 billion, includes $1.8 billion in debt. Directors of both companies have unanimously approved the deal. The combined company will use the Pulte name and will be based in Bloomfield Hills, Mich. The company plans to maintain a significant presence in Dallas. The merger, said the chief executive of Pulte, Richard J. Dugas Jr., “puts us in an excellent position to navigate through the current housing downturn.” April 8, 2009
Too Old for Foster Care, and Facing the RecessionEven in boom times, young people who become too old for the foster-care system often struggle to make it on their own, lacking families, job skills or adequate educations. Now, the recession has made the challenges of life after foster care even more formidable, especially for those seeking federal housing vouchers, which are contingent on having an income. Since the beginning of this year, the city’s Administration for Children’s Services has been providing letters to those about to leave the foster care system, certifying that they are likely to be eligible for public assistance and thus easing the application process when they are ready. Yet, many child-welfare advocates worry that a growing number will still end up homeless. April 8, 2009
In Owings Mills, Cardin Pushes Homebuyer Tax CreditAfter house-hunting for several months, attending pre-purchase counseling seminars and researching mortgage options, Antoinette Guy-Wharton is ready to buy. The single mother and insurance consultant has found a bank-owned home in Randallstown. As a first-time buyer who is income eligible, Guy-Wharton qualifies for a recently enacted $8,000 federal tax credit. Because she is purchasing a foreclosed home, she can also apply for funds through the Neighborhood Conservation Initiative, which helps communities attract buyers to areas with high foreclosure rates. The program will lend up to $50,000 for settlement costs, restoration work or to decrease the mortgage amount. April 8, 2009
Utilities Back No-interest Payment PlansUtility company representatives said Tuesday that they support a proposal to offer no-interest payment plans to customers behind on their bills so long as the debts are repaid before heating bills start increasing again next winter. “When you start pancaking a payment plan on top of a very cold winter period, that’s when customers get far behind,” Wayne Harbaugh, Baltimore Gas and Electric’s vice president for regulatory affairs, told state regulators during a hearing. The utilities want to recoup the costs of providing these plans, which Harbaugh described as “basically a no-interest loan” to customers. BGE and representatives from other companies urged the Maryland Public Service Commission to lift the temporary prohibition on suspending customers’ utility services that was put in place last month to allow time to work out the details of the payment plans. April 8, 2009
Louisiana Expands Cap on Home-Elevation Program from $30,000 to $100,000Louisiana officials announced today that they will let applicants for a federal home-elevation grant program collect as much as $100,000 for raising their houses above base flood levels, rather than the $30,000 cap the state originally imposed. Too few Louisiana homeowners were choosing to participate in elevation incentive programs because the grants weren’t enough to cover the expenses, said Paul Rainwater, executive director of the Louisiana Recovery Authority. The state was offering up to $30,000 to Road Home applicants who were willing to raise their homes, and the National Flood Insurance Program offered another $30,000 for that purpose. April 8, 2009
Stuyvesant Town’s Landlord Can Appeal Ruling on RentsThe landlord of Stuyvesant Town and Peter Cooper Village got judicial permission on Monday to appeal a court ruling that it must repay certain tenants millions of dollars in rent overcharges at those complexes. The issue will now go to the state’s highest court, the Court of Appeals. On March 5, the Appellate Division of State Supreme Court ruled that the landlord, Tishman Speyer Properties and BlackRock Realty, had wrongfully deregulated thousands of apartments and raised rents beyond certain set levels at the two Manhattan complexes while receiving special tax breaks from the city. April 7, 2009
FEDERAL, STATE PARTNERS ANNOUNCE MULTI-AGENCY CRACKDOWN TARGETING FORECLOSURE RESCUE SCAMS, LOAN MODIFICATION FRAUDAs homeowners and communities throughout the country continue to face devastating consequences from the deep contraction in the economy and the housing market, the Obama Administration today announced a new coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. The new effort announced today aligns responses from federal law enforcement agencies, state investigators and prosecutors, civil enforcement authorities, and the private sector to protect homeowners seeking assistance under the Administration’s Making Home Affordable program from criminal actors looking to perpetrate predatory schemes. April 7, 2009
Signs of Life Emerging in Housing SectorLast year the Cape Coral area of Florida had the highest foreclosure rate in the country. Banks moved to seize more than 1 in 10 residential properties in the Gulf Coast community of 165,000. The reverberations are still being felt. Newly built McMansions sit vacant, dusty monuments to the great real estate boom. Smaller homes have been ransacked. Apartment buildings have been boarded up. Former owners are stripping whatever items they can from their homes before the locks get changed, says Kirsten Prizzi, a local real estate agent at AC Global Realty. “Knobs, appliances. Someone was selling windows.” April 7, 2009
Homelessness Up as Families on the Edge Lose HoldCities and counties are reporting a sharp increase in homeless families as the economic crisis leads to job loss and makes housing unaffordable. In Seattle, 40% more people are living on suburban streets. In Miami, calls from people with eviction notices have quadrupled. “The demand from families with children has increased dramatically,” says Robert Hess of New York City’s Department of Homeless Services. Each month since September, shelter requests have been at least 20% higher than they were a year ago. April 6, 2009
Consumers Fall Behind on Loans at Record RateA record number of consumers are falling delinquent or into default on their loans, a problem that some economists say will only get worse this year. A record 4.2% of consumer loans were delinquent at least 30 days in the fourth quarter, the latest data available, according to the Federal Reserve. Another 4% of consumer loans were in default, meaning they’d been written off by lenders. April 6, 2009
More States want Solar Power to be Option on New HomesA growing number of states are moving to require home builders to offer solar electricity and hot-water systems in new homes, right alongside more traditional options such as fancy kitchen countertops and special window treatments. “It’s just like the granite countertop upgrade or the two-car garage or the larger closet — these are options the homeowner can choose to purchase,” said Jeff Lyng, the renewable energy program manager for Colorado Gov. Bill Ritter’s Energy Office. April 6, 2009
Loan Modifications Rise; Many Don’t Lower PaymentsU.S. lenders are boosting their attempts to avoid home foreclosures, but fewer than half of loan modifications made at the end of last year actually reduced borrowers’ payments more than 10%, data released Friday show. The report, based on an analysis of nearly 35 million loans worth more than $6 trillion, was published by the federal Office of the Comptroller of the Currency and the Office of Thrift Supervision. It provides the most detailed and broad analysis to date of efforts to stem the foreclosure crisis. April 6, 2009
Homeowners’ Hard Times Are Good for the Foreclosure Business April 6, 2009
In Hard Times, Tight Credit Slows ProjectsLong Island’s major real estate projects are facing new challenges in the recession, as developers struggle to find financing and prospective tenants and buyers for their properties. Some plans, like parts of the Epcal project in Riverhead, are being scaled back or slowed down. A few leading developers said in interviews, however, that their long-range plans were moving ahead on schedule, despite the recession and credit squeeze. They even voiced hope that their projects would benefit from the recession through lower interest rates, competitive construction bids, federal stimulus aid and local officials being more receptive to growth. Hanging in the balance are several innovative proposals that could change the suburban landscape and transform how and where Long Islanders live, work and play. April 6, 2009
Congress Takes A Serious Look At Reforming the Mortgage MarketCongress is preparing to take up a comprehensive plan that would fundamentally reform the home mortgage market, starting this year. Had the same rules and standards been in place earlier in the decade, congressional supporters say, it could have eliminated much of the funny-money loans, slipshod underwriting and Wall Street abuses that distorted the market from 2002 through 2006. The boom wouldn’t have been as big, and the bust might not have happened. The Mortgage Reform and Anti-Predatory Lending Act of 2009 (H.R. 1728) was introduced March 26 by co-authors Reps. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, Brad Miller (D-N.C.) and Melvin Watt (D-N.C.) April 6, 2009
A Mother’s Wishes, a Father’s PrerogativeQ: My mother passed away a few years ago. Since then, my father has married and begun to sell properties that he and my mother accumulated over the years. My mother wanted her four children to have equal shares of a particular property. Although she did not put this in writing, she told me and a few other family members her wishes on numerous occasions. My father sold this property but did not tell any of us about it. I found out only recently… April 6, 2009
Pushing Virginia Suburbs Toward More Intuitive DesignSuburban planning in Virginia soon will take a long overdue step toward rationality, thanks to the commonwealth’s new Secondary Street Acceptance Requirements, which attempt to reduce reliance on cul-de-sacs in new suburbs. The emphasis is on “acceptance.” The Virginia Department of Transportation will only accept and maintain roads in future subdivisions if their street networks connect to street networks in abutting subdivisions or adjacent commercial developments. This is a big change from current neighborhood layout rules. “Virginia is taking aim at one of the most enduring symbols of suburbia: the cul-de-sac,” a recent Washington Post article observed. April 6, 2009
Squatters Hidden in New Orleans’ Abandoned Houses often need more Help than other Homeless PeopleWithin the past month, Rohn, Miller and other caseworkers from Unity of Greater New Orleans have searched for signs of life in more than 250 abandoned buildings in nearly 200 square blocks in the 7th Ward and along the Tulane Avenue corridor as part of the agency’s Abandoned House Project. The ongoing survey, sure to be consulted in January when federal officials prepare a census of the homeless, adds to Unity workers’ anecdotal evidence of homeless people using abandoned buildings in various neighborhoods. April 6, 2009
DONOVAN ANNOUNCES PLANS TO REDUCE FRAUD AND RISK IN FHAU.S. Housing and Urban Development Secretary Shaun Donovan told a Senate appropriations subcommittee today that the Federal Housing Administration needs additional resources to ensure FHA can continue to meet the needs of underserved borrowers during the current mortgage crisis. Donovan also testified that he recently reactivated a program to dispatch teams of investigators to conduct on-site reviews of lenders, especially those whose refinance portfolios are showing signs of distress and abnormally high default rates. Donovan emphasized that every effort is being made to reduce risk and confront fraud in FHA’s single-family mortgage insurance programs. To read the full text of Donovan’s testimony, visit HUD’s website. April 3, 2009
As the Foreclosed Move Out, First-Time Buyers Move InWhile her friends ran up credit card debt and bought show homes beyond their means, Taina Goldman saved for a down payment. She moved back in with her parents, sharing a room with her young daughter, ate in and worked two jobs. “I don’t live dangerously,” said Ms. Goldman, 42, a nurse. “You can’t live on ‘what if.’ ” Now, she is reaping the rewards. She and her daughter recently moved into a three-bedroom, two-bathroom ranch-style house, with a pool, after putting 20 percent down and persuading the seller to cover most of her closing costs. She paid $187,000 for a house that sold in July 2006 for $370,000. April 3, 2009
Layoff Insurance Latest Carrot for HomebuyersFree granite countertops, swimming pools and landscaping aren’t going to convince anyone who’s afraid of losing a job to buy a home. But what about a promise to pay your mortgage if you get laid off?With the unemployment rate at a 26-year high and home sales still in the dumps, a growing number of homebuilders and even some real estate agents are trying to coax buyers with a kind of mortgage unemployment insurance. April 3, 2009
Low Mortgage Rates Continue to Attract RefinancersMortgage applications continued to rise last week, as low interest rates encouraged borrowers to refinance their home loans. The Mortgage Bankers Association said Wednesday its weekly application index climbed 3% for the week ended March 27. The index came in at 1,194.4, up from 1,159.4 a week earlier. Nearly 80% of applications came from borrowers seeking to refinance home loans at lower rates, rather than purchase homes. April 2, 2009
HUD CELEBRATES FAIR HOUSING MONTHIn recognition of Fair Housing Month, the U.S. Department of Housing and Urban Development today announced its annual celebration of “Fair Housing Education Week” on April 20-24, 2009. Intended for 5th through 8th grade students, this national education project will give teachers, parents and their children a basic understanding of the Fair Housing Act. HUD’s Office of Fair Housing and Equal Opportunity (FHEO) and its fair housing partners will visit schools across the country to instruct students about their fair housing rights. Using a lesson plan that HUD developed, instructors will guide students through the principles of equal opportunity in housing. April 2, 2009
The Greening of Pittsburgh April 2, 2009
Apartments Sell for Less if They Are Sold at AllHard times have come to the Manhattan real estate market, according to a series of quarterly sales reports to be issued on Thursday. Relatively few apartments are selling, and when they do, prices are down 20 percent or more from a year ago. Large, luxurious apartments on Fifth Avenue, Park Avenue and Central Park West, and new condominiums with many unsold apartments, have been particularly hard hit. One report, prepared by two brokerage firms, Brown Harris Stevens and Halstead Property, showed the number of closings of condos and co-ops down by 58 percent in the first quarter of 2009, compared with the same period a year earlier, as buyers were scared off by worries over the economy, portfolio losses and fears that apartment prices would continue to fall in the months ahead. April 2, 2009
Illinois County Believes in Kinder EvictionsThis is what the foreclosure crisis looks like in Cook County, where the sheriff made headlines last fall when he briefly halted evictions of renters who did not know their landlords had defaulted on mortgages. What has emerged is a kinder, gentler eviction process. Now banks must prove that tenants were notified 120 days in advance. Deputies visit the properties three times before the eviction, and a social worker helps connect the residents with public services — sometimes even putting them in touch with new landlords. It’s one of the only known efforts by a sheriff’s department to make evictions more compassionate. April 2, 2009
Green Power Purchases Targeted to Wind, SolarThe nation’s largest developer of renewable energy today plans to unveil a green power purchase program that could shake up the market by channeling all of the money into new wind and solar projects. Today, customers who buy green power have no assurances their payments will finance future clean energy projects. Customers who pay extra for green power often don’t buy renewable energy itself, since it’s almost impossible to zap electricity from, say, a wind farm to a specific home or business. Rather, they buy renewable certificates — commodities that represent premiums above standard electric prices and subsidize a generator for each megawatt hour of electricity it produces. A megawatt hour can power an average house for a month. April 1, 2009
January Home Prices Drop More than ExpectedHome prices in January plunged a record 19% from a year ago in 20 U.S. metropolitan areas, signaling continued distress in the housing market, according to a report Tuesday. The year-over-year drop in the Standard & Poor’s/Case-Shiller index was more than many economists had expected. All 20 areas showed annual declines, and in nine of them, prices fell more than 20%. Prices are falling amid a glut of unsold homes that includes a growing supply of foreclosed properties with well-below-market prices. April 1, 2009
Obama Names Janet Woodka New Coordinator for Gulf Coast RecoveryPresident Obama’s choice to be the new federal coordinator of rebuilding in the Gulf Coast region is Janet Woodka, a Tulane Law School graduate and former legislative director for Sen. Mary Landrieu, D-La. Secretary of Homeland Security Janet Napolitano announced the appointment Tuesday afternoon. Woodka has been working as the recovery office’s director of legislative affairs under the previous coordinators, Donald Powell, who left early last year, and Doug O’Dell, who stepped down early this year. April 1, 2009
Sales of Second Homes Fell 22% in 2008Sales of vacation and investment homes slid 22% last year, a sign that tough economic conditions and tight lending requirements shut out buyers, the National Association of Realtors reported Monday.Second home sales comprised 30% of the housing market, down from a peak of 40% in 2005, when financing was easier and before the nation fell into recession. March 31, 2009
Newark Home Market Struggles with Wave of ForeclosuresNewark is reinventing its housing market. The largest city in New Jersey plans to transform crumbling downtown buildings with gleaming residential developments. But those projects are in the future. Today, Newark is faced with blighted inner-city neighborhoods and one of the nation’s highest foreclosure rates. Last year, Newark’s foreclosure rate rose nearly 124%, according to RealtyTrac. Trying to cope with the crisis, the city is monitoring 2,500 homes with adjustable-rate mortgages that could be hit by foreclosure when rates reset. March 31, 2009
Claiming This Year’s First-time Home Buyer’s Tax Credit is EasyYou’ve found a charming bungalow in a nice neighborhood at a price you can afford. Mortgage rates have never been lower. You’ve even managed to come up with a 20% down payment. There’s just one problem: The Pepto Bismol-colored carpet in the family room is not to your taste, and you don’t have any money left for hardwood floors. Well, you may not have to live with that hot-pink rug for long. A provision in the economic stimulus bill enacted this year provides a tax credit of up to $8,000 for first-time home buyers. Unlike the $7,500 tax credit enacted last year, this credit doesn’t have to be repaid. And you don’t have to wait until you file your 2009 tax return to get your money. March 31, 2009
New Orleans City Council to Receive NOAH Contractor Records TodayNew Orleans City Council members are slated to get an update this afternoon on efforts by Mayor Ray Nagin’s administration to recoup payments by the now-defunct New Orleans Affordable Homeownership Corp. to contractors whose work gutting and boarding up homes after Hurricane Katrina could not be verified. The council’s Housing & Human Needs Committee has asked the administration to produce the following information at today’s 1 p.m. meeting in the council chambers on the first floor of City Hall, 1300 Perdido St.: March 31, 2009
REAL ESTATE COMPANIES TO SPEND $2.25 MILLION IN SETTLEMENT OF JOINT EPA AND HUD ENFORCEMENT ACTION FOR FAILING TO DISCLOSE LEADA large, Boston-based real estate corporation, The Community Builders, Inc. (TCB), and nearly two dozen associated property owners have agreed to pay a $200,000 penalty and spend more than $2 million in lead paint abatement work at residential properties to settle an enforcement action brought by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Housing and Urban Development (HUD). March 30, 2009
Banks Starting to Walk Away on ForeclosuresMercy James thought she had lost her rental property here to foreclosure. A date for a sheriff’s sale had been set, and notices about the foreclosure process were piling up in her mailbox. Ms. James had the tenants move out, and soon her white house at the corner of Thomas and Maple Streets fell into the hands of looters and vandals, and then, into disrepair. Dejected and broke, Ms. James said she salvaged but a lesson from her loss. So imagine her surprise when the City of South Bend contacted her recently, demanding that she resume maintenance on the property. The sheriff’s sale had been canceled at the last minute, leaving the property title — and a world of trouble — in her name. March 30, 2009
What Might Be Hurting Home ValuesAre low-balled value estimates on short sales and bank-owned foreclosures artificially depressing property values in neighborhoods across the country? Growing numbers of appraisers and consumer groups think the answer is yes Â¿ and are demanding that Congress or state regulators crack down. Their complaints focus on what are called “broker price opinions,” or BPOs, which substitute for appraisals. March 30, 2009
Making It Pay to Make the Leap From Renter to OwnerDid you buy a home last year? Are you planning to buy one now that interest rates are so low? Are you a first-time buyer? Did you buy in the District? If the answer to any of those questions is yes, you might be able to take advantage of first-time-buyer federal tax incentives. In the hope of stimulating the economy, Congress has enacted three tax-credit laws to encourage renters to become homeowners. March 30, 2009
And It’s Lights, Camera … Bernanke?Sandwiched between the soft drink and popcorn ads, you may soon see an ad from the Federal Reserve while waiting for your movie to begin. Starting April 10, the Fed will run ads in movie houses across seven states — Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio, that have been hard hit by home foreclosures. It’s an effort to thwart scam artists. They’ve been charging troubled homeowners for help that is free from nonprofit groups working with the government. March 30, 2009
Helen R. Kanovsky, Nominee for General Counsel, Department of Housing and Urban DevelopmentHelen R. Kanovsky is currently the chief Operating Officer of the AFL-CIO Housing Investment Trust. She has been with the Trust nearly 13 years. The Trust is a $3.4 billion registered investment company which invests in housing securities for its institutional investors, who are union and public pension plans. The AFL-CIO Housing Investment Trust has provided over $5.25 billion to finance 86,000 units of multifamily housing creating over 58,000 union jobs in the construction industry. March 27, 2009
Freddie Mac’s Duel With Regulator: Does It Report Government’s Role in Its Losses?Half a year after the government seized Freddie Mac, confusion about its role is stoking tensions between the company and its regulator, including a dispute this month over how much the mortgage giant should reveal to private investors about its financial troubles. Federal officials who took over Freddie Mac stopped short of nationalizing the company, leaving it partly in private hands. This means Freddie still has to answer to investors and file financial disclosures. March 27, 2009
Drop in Mortgage Rates Trigger Race to Buy, RefinanceTumbling interest rates are setting off a mortgage-refinancing scramble among homeowners and pulling undecided buyers into the market. Loan terms for 30-year fixed-rate mortgages fell to 4.63% from 4.89% for the week ending March 20, the Mortgage Bankers Association (MBA) reported Wednesday. That’s the lowest in the history of the survey, which began in 1990. Refinancing accounted for 78.5% of all mortgage applications last week. March 26, 2009
DONOVAN ISSUES STATEMENT ON INCREASE IN NEW HOME SALESU.S. Secretary of Housing and Urban Development Secretary Shaun Donovan released the following statement today in response to new data suggesting improvements in the housing market. Today, the U.S. Census Bureau and HUD announced an increase in residential home sales in February 2009. March 26, 2009
Woman Pleads Guilty in Mortgage Fraud ScamA former stripper accused of orchestrating a massive mortgage fraud scheme pleaded guilty yesterday in federal court in Greenbelt, admitting that she played a central role in swindling desperate homeowners out of millions of dollars. oy Jackson, who lived lavishly while the real estate market boomed, wore a green jail jumpsuit with the word “PRISONER” across her back. She was a world away from her $800,000 wedding at the Mayflower Hotel in 2006, where she was feted by more than 300 guests and serenaded at the reception by Patti LaBelle. Jackson, 41, who was the president of the Metropolitan Money Store in Lanham, faces a decade or more in prison. March 26, 2009
FEMA Extends Deadline for Home Elevation ReimbursementFEMA has agreed to extend to 2012 a looming deadline for homeowners who want to collect flood insurance money set aside for elevating and storm-proofing their houses. Because of the slow flow of other federal money, such as Road Home grants, FEMA had already pushed back the deadline for home-raising work under the National Flood Insurance Program’s Increased Cost of Compliance provision. March 26, 2009
February nNw Home Sales Rise UnexpectedlyNew home sales rebounded unexpectedly last month, but were still the second-worst on record and remained well below last year’s levels, according to data released Wednesday. The results provided some hope that developers have slashed prices and stopped building to such a large extent that sales have finally hit bottom and the worst may be in the past. Prices, however, are likely to keep falling for months as builders continue to clear out their stock of unsold homes. March 26, 2009
Mortgage Applications Jump as Rates Hit Record LowMortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing, according to figures from the Mortgage Bankers Association. The association says its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32% to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5% of applications. March 25, 2009
HUD SPEEDS NEARLY $3 BILLION TO NATION’S PUBLIC HOUSING AUTHORITIES TO IMPROVE HOUSINGJust over a month after President Obama signed the American Recovery and Reinvestment Act of 2009 into law, the U.S. Department of Housing and Urban announced today that, subject to HUD approval, public housing authorities can begin spending nearly $3 billion to make significant improvements to tens of thousands of public housing units nationwide. HUD is informing 3,122 local housing authorities in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands that spending can begin on a backlog of previously underfunded capital improvement projects. March 25, 2009
GOP Plan Aims to Expand Home Buyer Tax CreditsHouse Republican leaders plan to unveil a housing package today that would increase the tax credits available for home buyers and would direct law enforcement to crack down on mortgage fraud. Under the proposal, borrowers refinancing their mortgage would be eligible for $5,000 to help cover closing costs or to reduce their principal balance. The plan also revives a $15,000 home buyer tax credit proposal that Republicans pushed last year. This time, the proposal would require the borrower to have at least a 5 percent down payment. Both programs would expire in July 2010. March 25, 2009
February Home Sales Rise 5.1%, Biggest Jump Since 2003Existing homes sales rose in February as prices fell sharply due to the nation’s increasing supply of distressed properties. Sales of existing homes jumped 5.1% in February, reversing the decline in January, according to a report Monday by the National Association of Realtors. Many economists believe the drop in January was an anomaly and that last month’s rise in home sales could be the first sign of stabilizing prices. March 24, 2009
Home Improvement Projects Decline with Sagging EconomyAfter a surge in home renovations during the housing boom, new studies show homeowners are significantly curbing spending on such projects — adding to the unemployment facing construction workers and hurting home improvement businesses. Spring is typically the big season for home remodeling, but this year’s falloff will be felt across many kinds of related businesses, including contractors and architects, home furnishings stores and home designers. Spending on home improvement projects is expected to decline at an annual rate of 12.1% by the third quarter, according to a report by Harvard University’s Joint Center for Housing Studies. Spending isn’t expected to pick back up until the economy recovers. March 24, 2009
As Bankruptcy Filings Mount, Attention Turns again to ReformCash-strapped families are seeking bankruptcy protection at nearly the same rate and in the same manner as they did before the much-debated 2005 bankruptcy law reform, a trend critics say proves the reform was a failure. Congress wrangled for eight years before passing a reform act aimed at curbing abuse and ending an alarming rise in bankruptcy filings. With the economy in tatters and personal fortunes often in even worse shape these days, the bankruptcy law is beginning to undergo scrutiny again. March 24, 2009
DAVID STEVENS NOMINATED FOR HOUSING ASSISTANT SECRETARY AND FHA COMISSIONERThe U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced today that President Barack Obama nominated David Stevens as Assistant Secretary for Housing and Federal Housing Administration (FHA) Commissioner. Stevens currently serves as the president and chief operating officer of the Long & Foster Companies, which includes Long & Foster Real Estate and its affiliated businesses, including mortgage, title, insurance and home service connections. March 24, 2009
Affordable Housing Program ReevaluatedThe Fairfax County Board of Supervisors is considering scaling back a signature program to preserve affordable housing for low- and moderate-income families as it looks for ways to trim next year’s stretched budget. The “penny for housing” program devotes one cent of the real estate tax rate to buy or otherwise preserve low-rent apartments and other housing units. Since it was adopted in 2005, the program is credited with preserving 2,200 units that might have been bought by developers for condominiums or become more costly to rent. March 24, 2009
As Bankruptcy Filings Mount, Attention Turns Again to ReformCash-strapped families are seeking bankruptcy protection at nearly the same rate and in the same manner as they did before the much-debated 2005 bankruptcy law reform, a trend critics say proves the reform was a failure. Congress wrangled for eight years before passing a reform act aimed at curbing abuse and ending an alarming rise in bankruptcy filings. With the economy in tatters and personal fortunes often in even worse shape these days, the bankruptcy law is beginning to undergo scrutiny again. March 23, 2009
Stimulus Plan Raises Public Housing HopesThe chief administrative officer for the Newark Housing Authority, Tory Gunsolley, said that many of the town houses are damaged by fire or need so many repairs that they are uninhabitable without a gut renovation. The agency has undergone so many years of federal funding cuts that there was little money to make the repairs, he said. All of that changed recently when the federal Department of Housing and Urban Development announced that at least $4 billion from President Obama’s $787 billion economic stimulus plan would be headed to housing agencies in the form of capital improvement funding. The money is part of a $13.6 billion package to help stem the tide of foreclosures, provide jobs, make public housing more energy efficient and help development projects stalled by the credit crisis. March 23, 2009
Local Realty Executive to Direct FHADavid H. Stevens, president of Long & Foster, the Washington real estate firm, is expected to be selected today to run the Federal Housing Administration. Though the Obama administration declined to confirm the appointment yesterday, sources said Stevens has been undergoing the required background checks. These sources spoke on condition of anonymity because they did not have the administration’s permission to speak publicly. March 23, 2009
Affordable Housing Initiative Hits the WebThe Treasury Department and the Department of Housing and Urban Development have launched a Web site that provides basic information for troubled homeowners about the Obama administration’s “Making Home Affordable” program. The site, http://www.makinghomeaffordable.gov, usefully arranges in one place information on the two-pronged approach of the new initiative. There’s the refinancing part, designed to help homeowners who are paying their mortgages on time but are not able to refinance at the current low mortgage rates because of a decrease in the value of their homes. March 23, 2009
A Big Boost for Buyers Seeking Jumbo LoansNew money is about to flow into a part of the real estate market that has been squeezed hard by the credit crisis: mortgages too large to be purchased or backed by Fannie Mae, Freddie Mac or the Federal Housing Administration. Higher-cost areas throughout the country traditionally have depended on the ready availability of “jumbo” mortgages to finance houses. Such neighborhoods are heavily concentrated in California, portions of Florida and the Northeast, including the Washington region. With the collapse last year of the private mortgage bond market on Wall Street, home buyers, builders and refinancers who relied on jumbo financing were left with few sources — except with punitively high interest rates and huge down payments. March 23, 2009
Multigenerational Living Under One Roof“My father is a diabetic, so I was running back and forth to help get his breakfast, then I would come back for supper,” says Goldsmith, mother of seven sons, two still at home. “My mother also needed help with certain things. I started to think that the idea of them living alone was not good.” So Goldsmith and her husband, Isser, who live in a split-level house in Pikesville, decided to do what real estate experts nationwide say is becoming more common. They moved her parents, Herman and Rosa Roth, in with their brood, and gave them a separate wing of their own. March 23, 2009
When Your Mortgage Application is RejectedDon’t be surprised if your friendly lender, the one who invites you to sit down and apply for a mortgage, ushers you politely out the door empty-handed after you’ve chatted a bit. The sudden chill isn’t personal. The Mortgage Bankers Association, or MBA, in Washington, D.C., estimates that about half of all mortgage applicants are now being turned down. Though refinancing approvals remained static, the acceptance rate on mortgage applications suffered a 10 percentage-point drop, from 63 percent in the first half of 2007 to 53 percent in the first half of last year, according to mortgage data tracked semi-annually by the association. March 23, 2009
ADMINISTRATION LAUNCHES NEW CONSUMER WEBSITE FOR RESPONSIBLE HOMEOWNERS SEEKING RELIEFThe U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today launched a new website for consumers seeking information about the Obama Administration’s Making Home Affordable loan modification and refinancing program. MakingHomeAffordable.gov offers features including interactive self-assessment tools that will empower borrowers to determine if they’re eligible to participate and calculate the monthly mortgage payment reductions they could stand to realize under the Making Home Affordable program. March 20, 2009
HUD APPROVES $731 MILLION IN NEIGHBORHOOD STABILIZATION FUNDING FOR 48 STATES AND LOCAL COMMUNITIESU.S. Housing and Urban Development Secretary Shaun Donovan today approved nearly $731 million in funding for 48 States and local communities seeking to recover from the effects of high foreclosures and declining home values. Funded under HUD’s Neighborhood Stabilization Program (NSP),these plans will target emergency assistance to particular neighborhoods by acquiring and redeveloping foreclosed properties that might otherwise become sources of abandonment and blight (see attached chart). March 20, 2009
Mortgage Rates Hit Record Low, May Fall FurtherRates on 30-year mortgages plunged to a record low Thursday after the Federal Reserve launched a new effort to prop up the flailing housing market. The national average rate on 30-year, fixed mortgages was 4.94 percent on Thursday, according to financial publisher HSH Associates, down nearly a quarter point from a day earlier. That’s the lowest on HSH’s records, which date back to 1979. March 20, 2009
DONOVAN ACCEPTS $125 MILLION IOWA DISASTER RECOVERY PLANU.S. Housing and Urban Development Secretary Shaun Donovan today accepted a $125 million plan to support long-term disaster recovery in Iowa following last year’s series of devastating storms and flooding. Funded through HUD’s Community Development Block Grant (CDBG) Program, the Iowa recovery plan seeks to rehabilitate and construct affordable housing, build critical public infrastructure, and support economic revitalization. March 19, 2009
Home-building Boom Likely a BlipU.S. housing construction showed unexpected gains in February, but economists warn that the battered sector may suffer more before hitting bottom. The Commerce Department said Tuesday that construction of new homes and apartments jumped 22.2% in February compared with January, pushing activity to a seasonally adjusted annual rate of 583,000 units. The positive report contributed to a stock market rally that pushed the Dow Jones industrial average up 179 points, or 2.5%, to 7396. March 18, 2009
Investors Restart Rally on Upbeat Housing Report; Tech Stocks SurgeInvestors restarted Wall Street’s rally Tuesday, buying financial and homebuilder stocks following a surprisingly upbeat report on home construction. Tech stocks surged on an upbeat broker comment on bellwether Cisco System. Major market indicators jumped more than 2%, including the Dow Jones industrial average, which rose 179 points. The technology-heavy Nasdaq surged more than 4% after sliding Monday.Stocks have risen five out of the past six sessions. March 18, 2009
CAROL GALANTE APPOINTED AS HUD DEPUTY ASSISTANT SECRETARYU.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced today that President Barack Obama has appointed Carol Galante as Deputy Assistant Secretary for Multifamily Housing Programs at HUD. Galante is currently the President of BRIDGE Housing Corporation, the largest nonprofit developer of affordable apartments and homes in California, specializing in the development of family and senior affordable apartments, rental and ownership housing, and an array of revitalization, transit-oriented, urban infill, and mixed-use/mixed-income developments. March 18, 2009
Rebuilding Young Lives and CommunitiesYesterday on the Mall, Carswell joined first lady Michelle Obama and 100 young people from across the country to construct an environmentally friendly home for a family in Texas whose mobile home was damaged in July by Hurricane Dolly. The event also celebrated YouthBuild’s anniversary. The organization, founded in East Harlem, N.Y., in 1978, focuses on giving low-income people ages 16 to 24 a chance to rebuild their communities and their lives. Since 1994, groups across the country have built 18,000 units of low-income housing. March 18, 2009
Americans are Moving On Up to Smaller, Smarter HomesFor more than a decade, Sarah Susanka has urged people to build better, not bigger. Now, as the U.S. economy struggles to climb out of a tailspin and environmental concerns rise, her message has gone mainstream. New homes, after doubling in size since 1960, are shrinking. Last year, for the first time in at least 10 years, the average square footage of single-family homes under construction fell dramatically, from 2,629 in the second quarter to 2,343 in the fourth quarter, Census data show. The new motto: living well with less. March 17, 2009
Drywall from China Blamed for Problems in HomesReal estate agent Felix Martinez thought he’d found his dream house when he bought the 3,500-square-foot beauty in Homestead, Fla., two years ago. Then, he says, his large-screen TV mysteriously failed. Next, the air conditioner went. His bath towels smelled like rotten eggs. Visitors noted an odor in the house. Martinez says he’s suffered new sinus problems and sleep apnea. His wife and son sneeze a lot. The walls in the home, a recently filed class-action lawsuit alleges, were built with the same kind of Chinese-made drywall that tests have shown emit sulfur gases that corrode copper coils and electrical and plumbing components. March 17, 2009
After Enjoying a Boom, Housing Market Slips in HoustonThe strained energy industry, a devastating hurricane and the trickle-down effects of the national economy have teamed to squeeze Houston’s real estate market, which at times has seemed immune from the national downturn. This time last year, the Bayou City experienced a small boom in home sales as the median price climbed more than $15,000. And last summer, personal finance experts at Kiplinger named the fourth-largest metropolitan area the best city in the country, calling it the “Comeback Kid.” March 17, 2009
Homebuilder Sentiment Index Unchanged in MarchA key gauge of homebuilders’ confidence remained near historic lows in March, as builders saw a drop in prospective homebuyers visiting model homes amid rising job losses and economic fears, according to a survey released Monday. The National Association of Home Builders/Wells Fargo housing market index stood at nine, one point off the all-time low hit in January. The report reflects a survey of 384 residential developers nationwide, tracking builders’ perceptions of market conditions. Index readings lower than 50 indicate negative sentiment about the market. The index has been below 10 since November, reflecting the toughest market conditions in a generation. March 17, 2009
Behind an Outsize Court Case, Two Everyday TenantsThe two women quickly discovered common ground: Both lived in Stuyvesant Town, on the East Side; both were single mothers raising young daughters; and both were among nine plaintiffs in a landmark decision that could reshape the city’s rental landscape. On March 5, an appeals court ruled that the landlord of Stuyvesant Town and Peter Cooper Village had raised rents and deregulated apartments after receiving special tax breaks. The decision could cost the landlord, Tishman Speyer, and the previous owner, Metropolitan Life, more than $200 million in restitution, said a lawyer for the tenants. The ramifications could reach further. Any landlord in the city who accepted what are known as J-51 tax breaks while raising rents above a certain threshold could be in similar trouble. March 17, 2009
Mortgage Fraud Up As Credit TightensMortgage fraud jumped by 26 percent last year even though fewer loans were issued nationwide, and Maryland ranked among the top five states with the most serious problems, according to an industry study released yesterday. The study by the Mortgage Asset Research Institute concluded that fraud is more prevalent than it was at the height of the lending boom. The group singled out the most troubled states based on cases it gathered from roughly 600 lenders, mortgage insurance firms and mortgage investors, as well as federal data on loan originations. March 17, 2009
More Mortgages Eligible for RefinancingFannie Mae and Freddie Mac have published the rules governing their upcoming mass refinancing campaigns, and they’re more favorable for borrowers than indicated at first by the White House and Treasury, especially for owners of second homes and small investment properties. Although initial reports suggested that the refinancing would be for owner-occupied primary residences, the guidelines sent to lenders this month by Fannie and Freddie say second homes and small rental properties are eligible, provided that their mortgages already are in the companies’ portfolios or securitizations and have been paid on time. March 17, 2009
Mortgage Fraud Up in state, NationReports of mortgage fraud reached record highs in Maryland and the United States last year as more loan originators and borrowers resorted to falsifying documents and the home lending industry worked harder to detect problems, a study released yesterday showed. Maryland jumped to fifth place in reported incidents of fraud, after ranking 15th in 2007, the Mortgage Asset Research Institute said in its 11th annual fraud case report, based on data submitted by mortgage lenders, bankers, insurers and others. The number of cases nationally rose 26 percent, researchers said. March 17, 2009
New Orleans to Lose Unspent Housing Money in JuneNew Orleans should be able to spend $34 million in federal affordable housing aid by a May 31 deadline so it won’t lose the money, an official from the city’s recovery office said Monday. Anthony Faciane appeared before the City Council’s Housing and Human Needs Committee to discuss the unspent Housing and Urban Development HOME financing. He said the city is working closely with HUD to identify eligible projects so the money can flow quickly. March 17, 2009
Tide Turns Against Schools as Foreclosures RiseThen the mortgage meltdown hit central Florida, and the crabs and anemones weren’t the only ones hit with cold water. Here as elsewhere across the USA, hard times have forced schools to trim budgets, freeze hiring and, in a few cases, make substantial job cuts, raising doubts about the future of a range of programs, including the new marine lab. Already, St. Lucie schools have lost $22 million in tax revenue from lower property values, and the district is staring at a 25% budget cut in the fall. It has frozen salaries and put central office employees on a four-day workweek. Enrollment is down only slightly but if things get much worse, schools here may cut athletics, after-school activities and summer school to the bone — or even consider a four-day week for students. March 16, 2009
Boom-years Borrowing Hits ChurchesAdd houses of worship to the list of casualties of the mortgage crisis. Foreclosures and delinquencies for congregations are rising, according to companies that specialize in church mortgages. With credit scarce, church construction sites have gone quiet, holding shells of sanctuaries that were meant to be completed months ago. Congregants have less money to give, and pastors who stretched to buy property in the boom are struggling to hold onto their churches. “The economy has dramatically changed over the last year to 18 months in a way that very few, if any, had expected,” said John Stoffel, administrative pastor at Seabreeze Church in Huntington, Calif. March 16, 2009
A Higher Bar For Those Low Mortgage RatesI mean those beautiful fixed-rate mortgages advertised at 5.5 percent or less. Maybe, in a virtual world, an avatar can drop into a virtual bank and close a loan at that rate, but here in real life, achieving it is close to a miracle. You might get 5.5 percent if you put down 20 percent, borrow $417,000 or less, boast a high credit score (730 to 750, out of 850 total, as determined by your credit history), carry low debt relative to your reliable income (confirmed by two years’ worth of tax returns and probably not counting bonuses), buy in an area where home prices are relatively stable (wherever that is) and use a community bank, not a national bank. March 16, 2009
Homeowners Turn to RoommatesFaced with the risk of losing her home and car, Laura Rogers reluctantly chose to give up something else: her privacy. In mid-December she began sharing her Southwest Baltimore rowhouse with a tenant for $400 a month - income that has greatly eased her financial crunch. “Thank God I was getting the money from my roommate,” said Rogers, 45, a temporary worker on contract with the state. “I would have never thought about trying to live with anybody, except for this economy.” March 16, 2009
Banks Steered Blacks to Bad Loans, NAACP SaysThe NAACP is accusing Wells Fargo and HSBC of forcing blacks into subprime mortgages while whites with identical qualifications got lower rates. Class-action lawsuits were to be filed against the banks Friday in federal court in Los Angeles, Austin Tighe, co-lead counsel for the National Association for the Advancement of Colored People, told The Associated Press. Black homebuyers have been 3 1/2 times more likely to receive a subprime loan than white borrowers, and six times more likely to get a subprime rate when refinancing, Tighe said. Blacks still were disproportionately steered into subprime loans when their credit scores, income and down payment were equal to those of white homebuyers, he said. March 16, 2009
Corporate Meltdown Leaves Renters in LimboNicholle Krause first noticed the weeds sprouting in the usually well-manicured grounds of her 320-unit apartment complex in Chandler, Ariz., in December. Soon, signs of neglect began multiplying: Garbage spilled over from the dumpsters, the water in the swimming pool turned a slimy pea green and the grounds were infested by swarms of bees — especially alarming because Krause is severely allergic to bee stings. “I couldn’t even go outside to enjoy where I live,” said Krause, a 21-year-old office worker who pays $827 a month for a one-bedroom apartment with garage space. “I shouldn’t have to pay $800 a month to live in a … hole.” March 16, 2009
Despite Housing Help, Foreclosures Rose 6% Last MonthForeclosure filings in February jumped nearly 6% from January, despite foreclosure moratoriums and prevention programs around the country, according to a report out Thursday. Foreclosure filings were reported on 290,631 properties in February, up almost 30% from February 2008, RealtyTrac said. Its report also shows one in every 440 U.S. homes received a foreclosure filing in February. March 12, 2009
Freddie’s 2008 Loss Exceeds $50 BillionFreddie Mac reported yesterday that it lost $50.1 billion last year, almost half of it in the final three months of 2008, and would need an additional $30.8 billion in taxpayer assistance to stay solvent.With turmoil continuing this year, Freddie Mac also announced yesterday it had named its chairman, John A. Koskinen, to serve as an interim chief executive after the government’s first choice for the job quit six months into his tenure. Koskinen is a former deputy mayor of the District and former top official in the Clinton administration’s Office of Management and Budget. March 12, 2009
Woman’s House Down Payment SeizedFederal authorities have seized houses, jewelry, plasma TVs and fancy cars in their hunt to recover funds tied to the massive D.C. tax scandal. Add down payments to the list. In court papers made public this week, an FBI agent wrote that the bureau recently seized $411,368.25 that was used in an attempt to purchase a home in Northern Virginia. Authorities traced the funds to Ainna Ojo, 38, a Saks Fifth Avenue personal shopper and a friend of the plan’s mastermind, Harriette Walters, according to an FBI affidavit. March 12, 2009
Bill Would Exempt Nonprofits from Ban on New Ground RentsCommunity activists are urging Maryland lawmakers to allow nonprofit groups to use ground leases to provide affordable housing, a move that some say will return a ground rent system marred by abuses in recent years to its intended purpose. A House committee is set to hear testimony today on a bill that would exempt groups called “community land trusts” from some provisions of laws the General Assembly adopted in 2007 in response to an investigative series by The Sun. March 12, 2009
President Obama Undecided on Whether to Make FEMA Separate DepartmentPresident Barack Obama says he has not decided whether to restore the Federal Emergency Management Agency to a stand-alone department but promises that his administration is committed to robust Gulf Coast recovery efforts regardless of the agency’s status. “We’re going to be focused on New Orleans’ reconstruction, and we’re going to be paying a lot of attention to the systems that are in place to protect from hurricanes in the future, ” Obama said during a White House interview Wednesday with The Times-Picayune and other regional newspapers. March 12, 2009
Foreclosure Scam Artists Rarely Face Jail TimeThey call themselves loan modification consultants, negotiators or specialists. Some are legitimate, but many are simple con artists looking for desperate marks facing foreclosure amid the wreckage of the nation’s housing market. It’s a good business, too, since in most states, there’s not much of a chance they’ll ever end up before a judge facing any time in jail. “It’s difficult for us to get prosecutors to do the investigations on misdemeanors,” said North Carolina Attorney General Roy Cooper. March 12, 2009
Urban Areas See Revival in Housing ConstructionA substantial amount of housing built this decade has shifted from open fields on the edges of suburbia to dense central cities and their nearby suburbs, a new government study suggests. The change suggests that a much-publicized urban renaissance in the past 15 years is more than an isolated trend, some urban analysts say. In more than half of the 50 most populous metropolitan areas, communities at the urban core have captured a significantly larger share of their region’s new residential building permits since 2002 than in the first half of the 1990s, according to an analysis by the Environmental Protection Agency. March 11, 2009
Motel Rooms Become Home for SomeGreg Hayworth, 44, graduated from Syracuse University and made a good living in his home state, California, from real estate and mortgage finance. Then that business crashed, and early last year the bank foreclosed on the house his family was renting, forcing their eviction. Now the Hayworths and their three children represent a new face of homelessness in Orange County: formerly middle income, living week to week in a cramped motel room. March 11, 2009
At Home With the Energy DetectiveAlthough home energy tracking devices like the single-outlet Kill A Watt or the whole-house Power2Save unit are gaining popularity in this energy-conscious age, I hadn’t tried one until my electric bill topped out at $150 in January. That prompted me to invest in an Energy Detective, a device that retails for $145 and promises to give homeowners a telling glimpse into their personal energy consumption habits — and the appliances that consume the most juice. March 11, 2009
EPA Plans U.S. Registry of Greenhouse Gas EmissionsThe Environmental Protection Agency plans to establish a nationwide system for reporting greenhouse gas emissions, a program that could serve as the basis for a federal cap on the buildup of carbon dioxide and other gases linked to global warming. The registry plan, which was announced yesterday, would cover about 13,000 facilities that account for 85 to 90 percent of the nation’s greenhouse gas output. It was drafted under the Bush administration but stalled after the Office of Management and Budget objected to it because the EPA based the rule on its powers under the Clean Air Act. March 11, 2009
2 Guilty of Fraud Lose Rent SubsidiesTwo Howard County residents receiving federal rent subsidies were convicted of fraud and expelled from the program, and a joint county-federal housing investigation is continuing into several other cases, according to county officials. Stacy L. Spann, the county housing director, said that 10 unauthorized residents in nine subsidized units were evicted as a result of the yearlong probe, in which officials used computers to cross-check addresses of rent-assisted units with those of people on parole or probation, or on the sex offender registry. March 11, 2009
Baltimore-area Home Sales Dropped in FebruarySkittish homebuyers ran up against sellers unwilling to budge on prices in February, keeping the number of homes sold in metropolitan Baltimore at one of its lowest monthly levels this decade, statistics released yesterday show. Fewer than 1,100 homes sold in the Baltimore area last month, a drop of more than 31 percent compared with a year earlier, real estate tracker Metropolitan Regional Information Systems Inc. said. Prices for homes sold fell 6.5 percent to an average $282,034. March 11, 2009
Recession Hasn’t Missed RentersThe working poor who make up a substantial portion of the Washington region’s renters are increasingly seeking help from government agencies to meet basic needs in the recession, leading to a sharp rise in recent months in requests for rental assistance and help paying utility bills. Many are too far down the economic ladder to contemplate home ownership and have been less visible casualties of the economic downturn. But like families facing foreclosure, many renters are a step away from homelessness. March 10, 2009
Louisiana has Highest Rate of Child Homelessness, Report SaysLouisiana has the highest rate of child homelessness of the 50 states, according to a report being released today by the National Center for Family Homelessness based in Newton, Mass. Based on statistics gathered in 2005 and 2006 in the aftermath of Hurricanes Katrina and Rita, the Louisiana numbers may be “a little bit inflated,” said Ellen Bassuk, a professor of psychiatry at Harvard Medical School who is founder and president of the center. March 10, 2009
At Foreclosure Auction, Houses Sell, in a FrenzyIn rapid-fire speech that resembled a horse-race announcer’s, an auctioneer introduced the first of the day’s 375 properties: a seven-bedroom, five-bathroom home in Roselle, N.J., with an estimated value of $565,000 and a starting bid of $129,000. (Final sale price: $245,000.) Some 1,400 people were there, a crowd twice as large as the one last year, when the California-based Real Estate Disposition Corporation held its first foreclosure auction in the city, in a conference room at a Midtown hotel. But there were not nearly as many foreclosed houses then as there are now, said the corporation’s chairman, Robert Friedman. March 9, 2009
Subprime EuropeThe 1931 collapse of the Austrian bank Creditanstalt provoked financial panic across Europe and almost single-handedly turned a bad downturn into the Great Depression. Last week, when I read about the brewing European banking crisis, I suddenly began to dread that history might be repeating itself. You might think that my worries are a bit late. After all, losses on subprime mortgages in the United States have already caused a Depression-like banking collapse. Well, believe it or not, Europe’s current crisis is scarier. For while losses on Eastern European debts may be only a small fraction of those on subprime mortgages, the continent’s problems are politically harder to solve, and their consequences may prove to be much worse. March 9, 2009
Q. and A.: Obama’s Housing Rescue Plan and YouTo help make sense of the housing rescue plan, Times reporter Tara Siegel Bernard offers more detail on the plan and its requirements. Additionally, Ms. Siegel Bernard, along with Times reporters Edmund L. Andrews and John Leland, are taking reader questions. Answers to selected questions will be posted throughout Friday. March 9, 2009
HUD TO SEEK COMMENT ON RESPA’S “REQUIRED USE” DEFINITIONThe U.S. Department of Housing and Urban Development today announced that it intends to seek further public comment on how it should define the scope of a prohibited practice called “required use” under the Real Estate Settlement Procedures Act (RESPA). HUD will delay the planned implementation of RESPA’s required use provision for 90 days, or until July 16th, as it solicits public comment on whether to withdraw its new definition that would have taken effect in January. March 9, 2009
Rethinking Modular HomesMany in the building industry see the housing market’s troubles as a disaster. Russell Versaci sees them as an opportunity. Versaci, an architect from Middleburg, Va., thinks the economy is finally forcing a halt to the spread of bloated McMansions. He’s leading a movement toward smaller, well-built homes that honor our country’s architectural roots - houses that are not only sensible and affordable, he said, but “that have a sense of belonging.” He calls his proposal “The Pennywise House.” It’s part consciousness-raising effort and part marketing campaign for his house plans and a coming line of modular homes that will be based on them. March 9, 2009
Investors Flock to Detroit’s Housing MarketWelcome to Landlord Nation, where foreclosure notices are plentiful and for-sale signs offer at least 1,800 homes for under $10,000 that once were worth at least 10 times more. In extreme cases, homes are on sale for $1 or less, which has enticed investors to Detroit from as far away as the United Kingdom and Australia. “In the past few months, I’ve picked up 10 new clients from out of state that are buying in bulk,” said Mike Shannon, a suburban Detroit real estate agent. His office specializes in foreclosures in a city that’s among the national leaders. March 9, 2009
Most Foreclosures Pack into a Few CountiesMore than half of the nation’s foreclosures last year took place in 35 counties, a sign that the financial crisis devastating the national economy may have begun with collapsing home loans in only a few corners of the country. Those counties, spread over a dozen states, accounted for more than 1.5 million foreclosure actions last year, a USA TODAY analysis of figures compiled by the real estate listing firm RealtyTrac shows — more than were recorded in the entire United States just two years earlier. They were the epicenter of a wave of foreclosures that have left leading banks teetering and magnified the nation’s economic problems. March 6, 2009
Most Foreclosures Pack into a Few CountiesMore than half of the nation’s foreclosures last year took place in 35 counties, a sign that the financial crisis devastating the national economy may have begun with collapsing home loans in only a few corners of the country. Those counties, spread over a dozen states, accounted for more than 1.5 million foreclosure actions last year, a USA TODAY analysis of figures compiled by the real estate listing firm RealtyTrac shows — more than were recorded in the entire United States just two years earlier. They were the epicenter of a wave of foreclosures that have left leading banks teetering and magnified the nation’s economic problems. March 6, 2009
Big Landlord Found to Have Wrongly Raised RentsTenants at Stuyvesant Town and Peter Cooper Village, the sprawling middle-class apartment complexes on the East Side of Manhattan, won a major victory over their landlord on Thursday when an appeals court ruled that the company had wrongfully raised rents and deregulated thousands of apartments after receiving special tax breaks. The decision, issued by the Appellate Division of State Supreme Court in Manhattan, could ultimately cost the landlord, Tishman Speyer Properties, $200 million if it is required to repay residents of more than 3,000 apartments for improper rent increases over the past four years, said a lawyer for the tenants. March 6, 2009
More than 11% of Md. Home Loans are in TroubleThe number of Maryland borrowers who face foreclosure or have missed mortgage payments topped 100,000 for the first time at the end of last year — a record 11.1 percent of loans in the state, the Mortgage Bankers Association said today. Rising joblessness is adding to a worsening housing crisis that has sent foreclosures and delinquencies to record levels, economists said today. Problems for borrowers with subprime loans are now spreading into more conventional loans. Nationally, 12 percent of borrowers were behind on their mortgage payments at the end of December. March 6, 2009
Napolitano, Donovan Announce Millions for Long-term Hurricane RecoveryDeclaring their frustration with the slow pace of hurricane recovery, two members of President Barack Obama’s Cabinet announced hundreds of millions of dollars in grants Thursday in New Orleans as part of their promise to speed up the process. “What we have seen today makes us disturbed — angry, even — to see the numbers of the families living the way they have, ” Housing and Urban Development Secretary Shaun Donovan said at a news conference with Homeland Security Secretary Janet Napolitano after a morning tour of hard-hit areas. March 6, 2009
BEWARE THE LOAN MODIFICATION MERRY-GO-ROUNDThere’s been a lot of talk lately about loan modifications for homeowners facing foreclosure, a discussion that reached a crescendo on Wednesday when the White House announced details of its “Making Home Affordable” plans. A woman I’ll call Mags (we’re preserving her anonymity) had heard the talk too. The suburban Virginia woman in her 60s is homebound, recovering from ankle surgery. Her husband has recently declared bankruptcy. Three months ago, she started contacting her lender to ask for help. She ran into a wall of busy signals and vague answers. So when she heard about a private company that said it could help work with her bank to modify her loan and save her home, she began to investigate. That’s how she landed in my inbox. March 6, 2009
BEWARE THE LOAN MODIFICATION MERRY-GO-ROUNDThere’s been a lot of talk lately about loan modifications for homeowners facing foreclosure, a discussion that reached a crescendo on Wednesday when the White House announced details of its “Making Home Affordable” plans. A woman I’ll call Mags (we’re preserving her anonymity) had heard the talk too. The suburban Virginia woman in her 60s is homebound, recovering from ankle surgery. Her husband has recently declared bankruptcy. Three months ago, she started contacting her lender to ask for help. She ran into a wall of busy signals and vague answers. So when she heard about a private company that said it could help work with her bank to modify her loan and save her home, she began to investigate. That’s how she landed in my inbox. March 6, 2009
U.S. Sets Big Incentives to Head Off ForeclosuresThe Obama administration on Wednesday began the most ambitious effort since the 1930s to help troubled homeowners, offering lenders and borrowers big incentives and subsidies to try to stem the wave of foreclosures. People with mortgages as high as $729,750 could qualify for help, and there is no ceiling on how high their income can be as long as they are in danger of losing their homes. Interest rates on loans could go as low as 2 percent for some. Many homeowners could see their mortgage payments drop by several hundred dollars a month, and some could save more than $1,000 a month. March 5, 2009
Unlucky or Unwise, Some Borrowers Are Left OutChadi Moussa lives in a house valued at more than $1 million in Dublin, Calif., in the desirable East Bay area. Unfortunately, he owes nearly twice that much on his mortgage. Mr. Moussa, who runs a used luxury car dealership, is by any definition a troubled homeowner. But when he looked at President Obama’s housing rescue plan, he saw nothing for him because his mortgage was too high. “You give $25 billion to a bank, at least they should help people stay in their homes,” Mr. Moussa said. “But once you get to big loans, nobody’s doing anything about it.” March 5, 2009
House to Try Again to Let Judges Alter MortgagesAfter a brief revolt, the House is scheduled to vote Thursday on a measure that would allow bankruptcy judges to change mortgage terms to help homeowners avoid foreclosure, granting new authority some lawmakers say is central to easing the housing crisis. The Democratic leadership said it was confident it now has the support to pass the measure, which stalled last week, because of changes won by Democrats who said they feared that homeowners might use bankruptcy to win reductions in mortgages they could still afford. The Senate, where backers of the bill have faced stiff resistance, could consider its own version later this month. March 5, 2009
Housing Plan ‘Should get Ball Rolling’The Obama administration Wednesday outlined details of a $75 billion housing rescue plan expected to help as many as 9 million American homeowners rework mortgages into more affordable monthly payments. The program will apply to loans made on or before Jan. 1, 2009, and modifications will be allowed only once. Mortgages with a first loan of more than $729,750 do not qualify. The plan runs through 2012 and starts immediately. March 5, 2009
FinancialStability.govOn Tuesday, February 10th, Treasury Secretary Timothy Geithner outlined a comprehensive plan to restore stability to our financial system. In the address, Secretary Geithner discussed the Obama Administration’s strategy to strengthen our economy by getting credit flowing again to families and businesses, while imposing new measures and conditions to strengthen accountability, oversight and transparency in how taxpayer dollars are spent. And Secretary Geithner explained how the financial stability plan will be critical in supporting an effective and lasting economic recovery. March 5, 2009
President Barack Obama selects Florida official as FEMA directorPresident Barack Obama on Wednesday named a veteran Florida emergency manager to head the troubled Federal Emergency Management Agency and immediately dispatched him to join two Cabinet members in New Orleans today to evaluate continued challenges since Hurricane Katrina. Craig Fugate, described by Florida officials as someone who was given wide authority and never shied away from using it, faces Senate confirmation. But Obama said he wanted him in New Orleans alongside his boss, Homeland Secretary Janet Napolitano, and Housing Secretary Shaun Donovan for their previously scheduled Gulf Coast visit today and Friday. March 5, 2009
Sense of Urgency Grips Coastal Restoration SummitParticipants in a two-day summit on using river diversions to rebuild Louisiana’s coastal wetlands repeatedly challenged federal and state officials to stop talking and do something — anything — to begin the restoration process. The summit was prompted by repeated demands by a number of influential coastal scientists and state restoration officials that the Corps of Engineers speed up efforts to include very large diversions of water from the Mississippi and Atchafalaya rivers in its plans for coastal restoration. March 5, 2009
Ex-Leaders of Countrywide Profit From Bad LoansFairly or not, Countrywide Financial and its top executives would be on most lists of those who share blame for the nation’s economic crisis. After all, the banking behemoth made risky loans to tens of thousands of Americans, helping set off a chain of events that has the economy staggering. So it may come as a surprise that a dozen former top Countrywide executives now stand to make millions from the home mortgage mess. Stanford L. Kurland, Countrywide’s former president, and his team have been buying up delinquent home mortgages that the government took over from other failed banks, sometimes for pennies on the dollar. They get a piece of what they can collect. March 4, 2009
You’re Dead? That Won’t Stop the Debt CollectorThe banks need another bailout and countless homeowners cannot handle their mortgage payments, but one group is paying its bills: the dead. Dozens of specially trained agents work on the third floor of DCM Services here, calling up the dear departed’s next of kin and kindly asking if they want to settle the balance on a credit card or bank loan, or perhaps make that final utility bill or cellphone payment.The people on the other end of the line often have no legal obligation to assume the debt of a spouse, sibling or parent. But they take responsibility for it anyway. March 4, 2009
Credit Crisis — The EssentialsIn the fall of 2008, the credit crunch, which had emerged a little more than a year before, ballooned into Wall Street’s biggest crisis since the Great Depression. As hundreds of billions in mortgage-related investments went bad, mighty investment banks that once ruled high finance have crumbled or reinvented themselves as humdrum commercial banks. The nation’s largest insurance company and largest savings and loan both were seized by the government. The channels of credit, the arteries of the global financial system, have been constricted, cutting off crucial funds to consumers and businesses small and large. March 4, 2009
One in Five Homeowners ‘Underwater’At least one in five U.S. homeowners who have mortgages— or about 8.3 million people — owed more on their homes by the end of 2008 than their homes were worth, according to data released today by First American CoreLogic. That is an increase of at least two percent from the 7.6 million people who had no home equity at the end of September, according to the report. Another 2.2 million homeowners are approaching negative equity levels. March 4, 2009
DONOVAN ISSUES STATEMENT ON OBAMA ADMINISTRATION’S PROPOSED FISCAL YEAR 2010 HUD BUDGET“Today, President Obama announced general budget direction for HUD and I am very pleased with the outcome and focus. The President has designed a fiscally responsible budget that stresses the need for transparency and accountability from all agencies. HUD will be a leader in providing accountability to American taxpayers as we move forward with the budget process. February 27, 2009
Home Values in Broad DeclineFor the first time in recent years, the vast majority of residential neighborhoods in the District will see a decrease in their property assessments, with double-digit drops in seven communities, according to data city officials released yesterday. Even the Crestwood neighborhood, where Mayor Adrian M. Fenty lives, was not immune, experiencing a 13 percent fall — second only to Michigan Park in Ward 5, where property values decreased nearly 16 percent. February 27, 2009
Utility Shut-Off Notices SurgingUtilities across the Washington region have sent out millions of notices to customers who have fallen behind on their gas and electric bills in the past year and are increasingly shutting off service as residents find that they cannot pay rising heating costs. In Maryland, alarmed regulators ordered utility officials to appear at a hearing yesterday to explain what’s going on. A state program funded by ratepayers and designed to give one-time, crisis assistance to low-income customers ran out of money early last year, and state officials put in $27 million in tax revenue to meet the need. Maryland taxpayers are on track to contribute an additional $90 million this year. February 27, 2009
Home Buyers, Sit Up and Take NotesTax season is here! And homebuyers may have cause for celebration. If you bought this year or in 2008, you can take advantage of one of the first time homebuyers tax credits. There are two credits and figuring out which one applies to you is the tricky part. There’s an $8,000 tax credit for buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009. The other credit, which is really a loan, is worth $7,500 for homebuyers who purchased on or after April 8, 2008 and by Dec. 31, 2008. You have 15 years to repay the credit to the IRS. February 27, 2009
Road Home to Change HandsAs Louisiana prepares to break ties with its heavily maligned Road Home contractor, state officials have selected one of ICF International’s highest-paid and most controversial subcontractors to take over the remainder of the $10.3 billion homeowner recovery program. Hammerman & Gainer Inc. — a Lutcher-based company better known to Road Home observers by the name of its disaster-management division, HGI Catastrophe Services — will take over the administration of grants and assisting of remaining applicants once ICF’s contract expires in June. February 27, 2009
FEMA Grilled on $4 Billion in Unspent AidLawmakers blasted the heads of the government’s Gulf Coast recovery effort Wednesday for delays that have stalled key projects and left billions of dollars in federal aid unspent. “I’m frankly outraged to hear that there is this much money piled up,” said District of Columbia Delegate Eleanor Holmes Norton, head of a House Transportation and Infrastructure subcommittee. February 26, 2009
Home Sales Plunge While Buyers Await Rescue PlanSales of existing homes plunged unexpectedly in January to the lowest level since 1997, a sign that even bargain prices weren’t enough to draw home buyers into the dismal housing market. Existing home sales, which had been predicted to rise, tumbled 5.3% to an annual rate of 4.49 million in January, down from 4.74 million properties in December, according to a report Wednesday from the National Association of Realtors. February 26, 2009
Analysis: Giant Home Loans were still going Strong in 2007The share of Americans taking on huge new debt to buy a home was increasing even as foreclosures and plummeting housing prices began sending shock waves through the nation’s economy, a USA TODAY analysis shows. In 2007, the most recent year for which statistics are available, banks and other lenders gave out nearly 419,000 mortgages to buyers borrowing at least four times their annual income, sums that were unheard of less than a decade ago. February 26, 2009
HUD ALLOCATES MORE THAN $10 BILLION OF RECOVERY ACT FUNDING ONE WEEK AFTER BILL SIGNINGThe U.S. Department of Housing and Urban Development (HUD) today allocated nearly 75 percent of its funding, or $10.1 billion, made available through the American Recovery and Reinvestment Act of 2009. The Recovery Act includes $13.61 billion for projects and programs administered by HUD, 75 percent of which was allocated to recipients today - only one week after President Obama signed the Act into law. February 26, 2009
PRESIDENT’S ECONOMIC RECOVERY PACKAGE TO MAKE MORE FAMILIES ELIGIBLE FOR FHA-INSURED MORTGAGESMore American families will be eligible this year to purchase or refinance their homes using affordable, FHA-insured mortgages, thanks to the economic stimulus package signed into law by President Obama last week. The American Recovery and Reinvestment Act of 2009 will allow HUD’s Federal Housing Administration to temporarily increase its maximum loan limit, allowing FHA to insure larger mortgages at a more affordable price in high-cost areas of the country. February 26, 2009
Analysis: Some 2007 Home Loans were Through the RoofThe share of Americans taking on huge new debt to buy a home was increasing even as foreclosures and plummeting housing prices began sending shock waves through the nation’s economy, a USA TODAY analysis shows. In 2007, the most recent year for which statistics are available, banks and other lenders gave out nearly 419,000 mortgages to buyers borrowing at least four times their annual income, sums that were unheard of less than a decade ago. February 25, 2009
Questions and Answers for Borrowers about the Homeowner Affordability and Stability PlanThe President’s strategy for economic recovery is a stool with several legs, as he’s said, and one of them is solving the foreclosure crisis. “We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes,” he said yesterday as he signed the American Recovery and Reinvestment Act into law. Though communities across the country have been affected by the crisis, Arizona has been hit particularly hard — in 2008, only two states had more foreclosures. February 25, 2009
HUD, FEMA TO PROVIDE UP TO SIX MONTHS OF TRANSITIONAL RENTAL ASSISTANCE TO FAMILIES AFFECTED BY HURRICANES KATRINA, RITAThe U.S. Department of Housing and Urban Development (HUD) and the Federal Emergency Management Agency (FEMA) announced today the details of a new six-month transition rental assistance program for families currently enrolled in the Disaster Housing Assistance Program (DHAP-Katrina/Rita). HUD and FEMA will provide the additional assistance to families as needed until August 31 to give them more time to transition out of the DHAP program, either to self-sufficiency or other federal or state housing programs, including HUD’s Housing Choice Voucher (HCV) program. February 23, 2009
U.S. Spending More to Buy ForeclosuresTucked into the economic stimulus package signed by President Barack Obama this week was $2 billion to expand a nascent and controversial program to help cities and states buy and fix up foreclosed homes. Last month, the Department of Housing and Urban Development signed off on hundreds of grants to all 50 states totaling almost $4 billion. The Neighborhood Stabilization Program, as it’s known, was passed last year as part of a housing rescue plan that was regarded at the time as the most significant housing legislation in a generation. February 23, 2009
Trapped in Their Own HomesOn May 1, 2007, a very different economic era, Janet Faello put her former marital home on the market for $829,000. She and her husband were divorcing. It seemed like a good price for the house, a six-bedroom, three-and-a-half-bath ranch in Dix Hills. But it didn’t sell at that price, or at $750,000, where it landed six months later, or at $699,000, where it stands now. “It’s not the Taj Mahal, but it’s a nice, well-maintained home,” said Ms. Faello, a 53-year-old massage therapist with two daughters in college who remains in the house, which she and her ex-husband still jointly own. Her ex-husband lives elsewhere. “I haven’t been entertained once with an offer, and I’m still not getting any bites.” February 23, 2009
Mortgage Rescue Eligibility Still Being FinalizedA day after President Obama unveiled his $75 billion foreclosure prevention program, administration officials yesterday said they were still determining which homeowners should qualify. The administration is developing a standard for lenders to use in evaluating applicants that seeks to exclude homeowners who are not in real need or are too far behind in their payments to be saved. Officials have set some conditions for eligibility, including requiring that borrowers’ mortgage payments consume more than 38 percent of their income and that the property be a primary residence. February 20, 2009
OBAMA ADMINISTRATION AWARDS NEARLY $1.6 BILLION IN HOMELESS GRANTS TO THOUSANDS OF LOCAL HOUSING AND SERVICE PROGRAMS NATIONWIDEHundreds of thousands of homeless individuals and families will find a stable home and be offered critically needed services as a result of nearly $1.6 billion in homeless assistance announced today by U.S. Department of Housing and Urban Development Secretary Shaun Donovan. This week, President Obama also signed the American Recovery and Reinvestment Act of 2009 into law, which will provide an additional $1.5 billion in funding for homeless prevention. February 20, 2009
Trapped in Their Own HomesOn May 1, 2007, a very different economic era, Janet Faello put her former marital home on the market for $829,000. She and her husband were divorcing. It seemed like a good price for the house, a six-bedroom, three-and-a-half-bath ranch in Dix Hills. But it didn’t sell at that price, or at $750,000, where it landed six months later, or at $699,000, where it stands now. “It’s not the Taj Mahal, but it’s a nice, well-maintained home,” said Ms. Faello, a 53-year-old massage therapist with two daughters in college who remains in the house, which she and her ex-husband still jointly own. Her ex-husband lives elsewhere. “I haven’t been entertained once with an offer, and I’m still not getting any bites.” February 20, 2009
$75B Anti-foreclosure Plan is a ‘Chance to Rebuild,’ Obama SaysPresident Obama added the nation’s housing foreclosure crisis to his economic recovery agenda Wednesday with a $75 billion plan to help up to 9 million troubled homeowners stay in their homes. The program is tailored so up to 4 million homeowners can reduce their mortgage payment so it is no more than 31% of their income. As many as 5 million more facing foreclosure or who owe more on their mortgages than their homes are worth would have a chance to refinance, as long as their mortgage is not excessively higher than their home is worth. February 19, 2009
Millions Could get Help, but is Foreclosure Plan Fair?The Obama administration’s $75 billion housing rescue plan promises to help millions of financially struggling homeowners keep their homes, but it may be too little and too late for millions of others.More than 3 million owners have lost their homes during the past three years, and almost 5 million more could follow this year through 2011, according to Moody’s Economy.com. Obama’s plan calls for measures that will allow up to 9 million homeowners to reduce their mortgage payments through government-backed refinancing arrangements. Just how that will work isn’t clear. The administration said that on March 4 it will provide more details on the plan and when it will go into effect. February 19, 2009
Foreclosure Proposal Lets Judges Modify MortgagesA key provision in President Obama’s $75 billion foreclosure prevention plan would allow bankruptcy judges to modify home mortgages — a measure supported by bankruptcy attorneys and consumer groups but opposed by lenders. The American Bankers Association has argued that allowing bankruptcy judges to change the terms of mortgages will increase the risks of mortgage lending at a time the market is already struggling February 19, 2009
Homeowner Affordability and Stability PlanThe deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country. # Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance at lower mortgage rates. # Millions of workers have lost their jobs or had their hours cut back, are now struggling to stay current on their mortgage payments with nearly 6 million households facing possible foreclosure February 19, 2009
Transcript: President Obama on the Home Mortgage Crisis‘m here today to talk about a crisis unlike any we’ve ever known — but one that you know very well here in Mesa, and throughout the Valley. In Phoenix and its surrounding suburbs, the American Dream is being tested by a home mortgage crisis that not only threatens the stability of our economy but also the stability of families and neighborhoods. It is a crisis that strikes at the heart of the middle class: the homes in which we invest our savings, build our lives, raise our families, and plant roots in our communities. February 19, 2009
U.S. Doubles Fannie, Freddie Backing to $400 BillionThe federal government yesterday doubled its commitment to Fannie Mae and Freddie Mac, promising to reimburse the companies for up to $400 billion in losses on their investments in mortgage loans. The massive expansion of the government backstop is a response to mounting strains on the two companies, officials said. It was announced as part of the Obama administration’s broad plan to reduce foreclosures, which will further squeeze the companies’ revenue by requiring the pair to refinance or modify millions of loans to lower monthly payments. February 19, 2009
How the Program Would WorkPresident Obama announced a massive foreclosure prevention program yesterday aimed at stabilizing the housing market and keeping millions of borrowers in their homes. Many of the details are still being worked out and will not be announced until March 4, but for the average homeowner, this is what it could mean: February 19, 2009
Man Who Bilked Homeowners Enters Plea in Shooting SpreeJeffrey S. Koger knew the authorities were on to him — that he had stolen more than $3 million from homeowners associations. With his world collapsing, and after a night of heavy drinking, Koger went on a bizarre shooting spree in Alexandria and Fairfax County last year that left three people permanently injured, a prosecutor said yesterday. February 19, 2009
Mr. Obama’s Foreclosure PlanThe anti-foreclosure plan announced by President Obama on Wednesday is a decisive break from the Bush administration’s disastrous protect-the-banks-but-not-the-homeowners policy. The president has promised that it will help as many as nine million American families refinance their mortgages or avoid foreclosure. That’s a good start, but given the dire state of the economy, we fear it still may not be enough. February 19, 2009
More Housing Details Are Pending, but First Some AnswersThe Obama administration’s housing plan aims to help millions of homeowners who fall into two categories: either they have been struggling to pay their mortgages or they have been shut out of the refinancing market. The initiative gives lenders incentives to modify the mortgages of the three million to four million homeowners on the brink of foreclosure or who cannot make their monthly payments. The goal is to reduce the payments to levels they can afford. February 19, 2009
Bronx Landlords Guilty in 2 Firefighters’ DeathsThe owner and the former owner of a Bronx apartment building where two firefighters died after jumping from a window to escape a blaze were found guilty Wednesday of criminally negligent homicide. The jury also convicted the owners of reckless endangerment, but acquitted them of manslaughter, the most serious charge they faced. Prosecutors argued that the firefighters died in the 2005 blaze because illegal partitions in two of the apartments left them disoriented and forced them to jump to their deaths. February 19, 2009
Home and Car Buyers Get Tax Breaks in Stimulus PackageThese days, most workers would welcome even a small increase in their paychecks. Still, a $400 tax credit probably isn’t going to cause a lot of cash-strapped families to do a happy dance around the kitchen table. Most workers will end up with an extra $8 a week. But the $787 billion economic stimulus package, which President Obama is expected to sign Tuesday, contains numerous provisions that could save you much more than that, depending on your circumstances. February 17, 2009
Atlantic City’s Oldest Casino Fights ForeclosureAdmitting it hasn’t made loan payments since October, Resorts Atlantic City is trying to fight off foreclosure by arguing that its lenders don’t have a casino license and therefore can’t own or operate the place. Resorts also plans to set aside $15 million to cover payouts to winning gamblers, payroll and taxes while the two sides battle for control of New Jersey’s first casino. February 17, 2009
Fed Governor Duke: Urges Banks to do More to Prevent ForeclosuresFederal Reserve Governor Elizabeth Duke said Monday the crisis in housing highlights the need for vigorous enforcement of bank rules and questioned the wisdom of letting banks affiliate with commercial firms. In a speech to the American Bankers Association (ABA), Duke said bankers “have a responsibility to act in a safe and sound manner” and urged them to do more to help slow the pace of home foreclosures. February 17, 2009
Obama’s Next Task: Tackling Housing WoesPresident Obama focuses on home foreclosures this week as part of a broad White House effort to shore up the economy with massive government spending to put people back to work, bail out troubled banks and help homeowners pay their mortgages. Details of the new plan, due Wednesday, come just days after Congress passed a $787 billion stimulus bill aimed at saving or creating up to 3.5 million jobs. February 17, 2009
Homelessness: The Family PortraitFairfax County pays $65 a night for the family to stay at the 1950s-era motel in Fairfax City while it waits for space to open in a county shelter. The family was evicted from a rented townhouse in Spotsylvania after Polight lost his warehouse job and he and James couldn’t make ends meet on her salary as a medical assistant. After a month at a relative’s house, two nights in the couple’s six-year-old Toyota and three nights in an emergency shelter, the family has tried to make a home in the drafty motel room, with its chipped, faded furniture and peeling paint. The family’s belongings, packed in garbage bags, sit in a corner. February 17, 2009
Alternative Energy Still Facing HeadwindsThe late afternoon light is shining golden on the high chaparral as Donna Tisdale stands near a faded 1800s ranch house, scans the unblemished surrounding hills and sees trouble on the horizon. “The ridge right there will have turbines on it,” she says, squinting west into the setting sun. Turning north and east, where a pristine ridgeline meets the sky, she points out the route of a $1.9 billion electricity transmission line whose 150-foot towers will march 123 miles from the Imperial Valley to energy-thirsty San Diego. February 17, 2009
Obama Plan on Housing Said to Push on LendersPresident Obama’s plan to reduce the flood of home foreclosures will include a mix of government inducements and new pressure on lenders to reduce monthly payments for borrowers at risk of losing their houses, according to people knowledgeable about the administration’s thinking. The plan, to be announced Wednesday, is expected to include government subsidies for reducing a borrower’s interest rate, which a lender would have to match with its own money. February 17, 2009
Foreclosures on Island Outpace Most of StateIf Dawn Mercedes had studied the application with her mortgage broker closely, she might have noticed fine print that she said she later realized overstated her ability to pay. But Ms. Mercedes, a new mother and recent newlywed eager to own her first home, a four-bedroom ranch in Mastic, said she “didn’t even read it.” With $5,000 down, Ms. Mercedes, 43, who works in the deli section at Best Yet Market in Riverhead, bought the house for $350,000 in 2005. “I was told, ‘Oh, you’re approved for $360,000,’ and that was that,” she said. February 17, 2009
Love, Death and ForeclosureQuestions linger here, as ripe and nagging as the odor that once wafted over this former dairy capital: Who is trying to seize the home of Ray Vargas, child of the Great Depression, D-Day veteran and loving husband who just wanted to do right by his dying wife? And are they entitled to it? In bankruptcy court documents, the party attempting to foreclose is identified as Mortgage Electronic Registration Systems Inc., or MERS, a small Vienna, Va.-based company employed by lenders to streamline the resale of mortgage loans and servicing rights. In that role, MERS claims an interest in tens of millions of U.S. home loans and the legal right to foreclose on those in default. February 17, 2009
No One Home: 1 in 9 Housing Units VacantA record 1 in 9 U.S. homes are vacant, a glut created by the housing boom and subsequent collapse.“The numbers are further documentation of the gravity of the housing problem,” says Nicolas Retsinas, head of Harvard University’s Joint Center for Housing Studies. “This inventory is delaying any kind of housing recovery.” The surge in empty houses, condominiums and apartments is creating a wave of problems for communities desperate to shore up property values and tax revenues that pay for services. Vacant homes create upkeep and safety problems that ripple through neighborhoods. February 13, 2009
Consumers Lose Access to Their Experian Credit ScoresAt a time when it’s more important than ever for consumers to monitor their credit scores, they’re losing one option of doing so. Starting Saturday, FICO credit scores based on data from Experian, one of the three major credit bureaus, will not be available to consumers. Steven Wagner, president of consumer information services at Experian, says the firm nixed its partnership with Fair Isaac to sell the scores to consumers because Fair Isaac was “simply unreasonable” in negotiating a separate contract. February 13, 2009
Administration Weighs Plan to Lower Mortgage Rates to Stop ForeclosuresThe Obama administration is considering spending taxpayer dollars to lower mortgage rates for borrowers on the verge of foreclosure, according to two people briefed on the proposals. The deliberations came as lawmakers prepared to enact a new tax credit of up to $8,000 for first-time homebuyers that is intended to boost the ailing housing market. Details of the plans to aid troubled borrowers were not final but were expected to be unveiled in the coming weeks, according to the people who declined to be identified because the details were not yet complete. The effort would be part of a plan to spend $50 billion on foreclosure prevention and establish national standards for modifying home loans. February 13, 2009
Stocks Rally from Sharp Losses on Report of Mortgage PlanStocks turned mixed in late trading Thursday, paring sharp losses after a report that the Obama administration is planning to subsidize mortgage payments for troubled homeowners. A Reuters report that the government plans to help struggling homeowners with their mortgages boosted stocks. The Federal Housing Finance Agency declined to comment on the report. The idea of targeted help for homeowners impressed investors more than the government’s $789 billion economic stimulus package and its revised plan to bail out problem banks. February 13, 2009
A Winter of Discontent Over Utility BillsOil is trading at just $34 a barrel, natural gas prices have plummeted by half and coal is down to $66 a ton. So why are Washingtonians’ gas and electric bills still sky-high? Angry customers are flooding Maryland regulators with complaints — 2,200 in January, double the number for the same month last year — prompting the Public Service Commission to order the state’s five utilities to a hearing Feb. 26 to explain. Neighborhood e-mail lists in the region are brimming with talk of climbing bills. February 13, 2009
CNBC Special Report: House of CardsIn 2004, in the midst of the housing boom, President George Bush had a chance to do a little bragging in his State of the Union Address. “This economy is strong and growing stronger,” he said, to applause in the House chamber. “New home construction (is at) the highest in almost 20 years. Homeownership rates (are at) the highest ever.” Just one month later, then-Federal Reserve Chairman Alan Greenspan encouraged the mortgage industry to come up with new kinds of loans — so even more people could buy homes. February 13, 2009
Housing’s Good News: Foreclosures Down 10%Foreclosures dropped in January, a possible sign that efforts to slow foreclosures through moratoriums and mortgage modifications are having some effect. Foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 274,399 properties during January, a 10% decrease from December but still up 18% from January 2008, according to RealtyTrac. The report also shows one in every 466 U.S. homes received a foreclosure filing in January. February 12, 2009
California Mortgage Fraud Fugitive Caught with $70,000 in ShoesAn international fugitive in a $100 million mortgage fraud scheme has been caught at the Canadian border with $1 million in Swiss bank certificates and $70,000 stuffed in his shoes, authorities said Wednesday. Christopher J. Warren also was carrying four ounces of platinum valued at more than $1,000 an ounce when he was arrested while re-entering the United States at Buffalo, before midnight Tuesday. February 12, 2009
Mortgage Demand Drops; Buyers Wait for Lower PricesMortgage applications tumbled nearly 25% last week and requests for loans to buy homes sank to an eight-year low as potential buyers held out for better terms and government help, a trade group’s survey showed Wednesday. The Mortgage Bankers Association’s seasonally adjusted home purchase applications index slid 9.8% the week ended Feb. 6 to 235.9, lowest since the end of 2000. February 12, 2009
Foreclosure Protests at D.C. Offices Reflect TrendDozens of demonstrators with the community group ACORN barged into a District office that auctions foreclosed homes in upscale Chevy Chase yesterday and shut it down for an hour, chanting “No sales here.” In Rye, N.Y., and Greenwich, Conn., on Sunday, more than 300 people converged on the homes of two bank executives who opposed modifying loans to help homeowners and barraged the men and their neighbors with slogans. February 12, 2009
Crime Ring Accused of 82 Fraudulent Home SalesPosing as homeowners or city officials, a team of 15 criminals fraudulently sold 82 unoccupied houses to unsuspecting buyers over the last five years, a grand jury charged Wednesday. The homes were in poor neighborhoods and were sold for as little as $6,000, often to immigrants and non-English speakers, and often for cash, according to the grand jury report. Proceeds from the scheme could be as much as several million dollars, the authorities said. February 12, 2009
Defining the Buyer of the FutureFlux and turmoil will not rule the state’s residential real estate market forever, as all market specialists agree. But what comes afterward? “The question isn’t ‘When do things go back to normal?’ ” declared Rutgers University’s planning and public policy dean, James W. Hughes. “It’s ‘What will the new normal look like?’ ” The short answer from the housing trend analyst Jeffrey G. Otteau: “very different.” Economic, financial and sociological changes now in progress will effectively morph the profile of the typical home buyer over the next 15 years, said Mr. Otteau, whose company, the Otteau Valuation Group, issues monthly reports on trends to subscribing brokers and developers. February 12, 2009
Baltimore-area House Sales, Prices PlungeHome prices in the Baltimore area took the biggest year-to-year plunge in almost a decade in January, falling more than 10 percent as rising joblessness and credit woes continued to batter the housing market. The average sales price in the city and five surrounding counties fell to $265,768 last month, Metropolitan Regional Information Systems Inc. said yesterday. Sales plummeted by more than 21 percent, to just over 1,000 homes sold during the month, the Rockville-based real estate listing service said. February 12, 2009
Only 50 FEMA Trailers Remain in Jefferson ParishJefferson Parish is down to about 50 FEMA trailers lingering from the calamitous 2005 hurricane season, a minuscule fraction of the 18,000 units that once dotted the streets. Parish officials completed a fresh survey of trailers this week, finding 36 still planted on the West Bank and 14 in East Jefferson. The parish has lawsuits pending against about 30 of the remaining trailer holders as it tries compel them to relinquish their temporary housing and comply with parish codes barring the use of travel trailers as living space on lots with single-family houses. February 12, 2009
White House May Move to Buy Bad MortgagesThe White House is considering a proposal to head off potentially millions more home foreclosures by using federal funds to buy up at-risk loans and then refinance them with more affordable terms. Treasury Secretary Timothy Geithner and other Obama administration officials met Wednesday with a group of top bankers, community groups and financial industry representatives to discuss the plan. February 12, 2009
Housing Group Stages Protests at Banking Executives’ HomesA non-profit housing advocacy group said Monday it will protest at the homes of those it calls “financial predators” — investors and banking executives it says are balking at helping struggling homeowners refinance their mortgages. Neighborhood Assistance Corp. of America demonstrated Sunday at the Greenwich, Conn., home of William Frey, chief executive of Greenwich Financial Services, and the Rye, N.Y. home of John Mack, chief executive of Morgan Stanley. February 10, 2009
Not So Much Of a Stimulus For Some D.C. Home BuyersA tax credit designed to jump-start the housing market may end up short-changing first-time D.C. home buyers. That credit is tucked into the Senate version of the stimulus bill under debate in Congress. The measure would provide a credit of up to $15,000 to buyers who are purchasing a primary residence. But first-time buyers in the District who can tap into the long-existing $5,000 tax credit for purchases in the city appear to be shut out of the deal. February 10, 2009
Faulting Credit Firms on Fixing ErrorsMany consumers are unaware what their credit score is until it’s time to apply for a home mortgage, but by then it is often too late to fix any mistakes that they might uncover in their credit reports. A new report by the National Consumer Law Center, a consumer advocacy organization based in Boston, has concluded that the three major credit-reporting agencies — Equifax, Experian and TransUnion — have not done enough to improve the process by which consumers may correct these errors. An industry group representing the agencies disputes the findings. February 10, 2009
The Downside for Condos in a DownturnDuring the recent boom, buyers who coveted condos for their sex appeal could also make the case that condos were a smarter choice than co-ops. In theory, you didn’t have to prostrate yourself, financially and otherwise, before a board for approval, and you could sell or rent pretty much to whomever you chose, should the need, or whim, arise. You could also put down a lot less money than the 20, 25, or even 50 percent of the purchase price customarily demanded by co-ops. February 10, 2009
Home-mortgage ‘Cramdown’ Legislation Could Ease Foreclosure WoesProponents call it the crucial missing tool needed to get us out of the national foreclosure morass. Critics say it could be disastrous - pushing up interest rates on all future mortgages, even for people with excellent credit, and creating huge new losses for already-ailing banks. Wherever you come down on the griddle-hot issue of home mortgage “cramdowns,” the reality is this: Congress is poised to pass legislation empowering bankruptcy court judges to reduce the loan balances of potentially large numbers of financially distressed owners to affordable levels, and to lower their interest rates and monthly payments. President Obama has promised to sign the legislation as soon as it hits his desk. February 10, 2009
FEMA Defends 650K Denials for Post-Ike AidThe Federal Emergency Management Agency has denied nearly 650,000 applications for housing aid after Hurricane Ike hit southeast Texas, finding that nearly 90% of all claimants were ineligible for FEMA help. Those rejected and their attorneys say the inspectors are unqualified or poorly trained and the inspection system is flawed in ways that withhold help from deserving people. FEMA says the numbers reflect a widespread misunderstanding of the agency’s mission. February 9, 2009
More Families Move in Together During Housing CrisisLove isn’t all that’s keeping family together today. The bruising housing market is, too. Last year, Kanessa Tixe’s dad had just finished building a three-family house when he lost his superintendent job in February. He wasn’t sure how to make the $5,000-a-month mortgage on the new house in Queens, N.Y. February 9, 2009
Conventional Loan Limit is a Hurdle for High-end HomesSome frustrated consumers are discovering that today’s lower mortgage interest rates don’t apply to buying or refinancing higher-priced homes, sparking calls for help from Congress. Last year, Congress temporarily raised the loan limit for conventional mortgage financing to $729,750, but the limit dropped to $625,000 in December. The cap means that loans for homes above $625,000 can’t be sold to Freddie Mac and Fannie Mae. Lenders generally must hold those so-called jumbo loans, and with credit markets tight, they’re more reluctant to make them. February 9, 2009
Senate OKs $15,000 Tax Break for HomebuyersThe Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Obama’s recovery plan. The tax break was approved without dissent and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains. February 9, 2009
Fannie, Freddie to channel mortgage rescue: sourcesThe Obama administration is crafting a mortgage-rescue program that would see Fannie Mae and Freddie Mac ease payments for hundreds of thousands of borrowers and offer a model for Wall Street to do the same, sources familiar with the plan said. Late last week, officials from the Treasury Department and Department of Housing and Urban Development worked with the companies’ regulator to agree on standards for who could get relief and how they might coax other finance companies to follow their lead, said two industry sources familiar with the deliberations. February 9, 2009
Homeowners, Legislators Battle ApartmentsA long-running battle over what type of housing is appropriate for eastern New Orleans has come to a head again, this time in a pair of legal fights over a heavily subsidized development called Levy Gardens, pitting homeowners and legislators on one side against developers and fair-housing advocates on the other. At the heart of the battle is an effort by homeowners and politicians, dating to before Hurricane Katrina, to block new multifamily housing developments in the east. January 23, 2009
New Home Construction Falls to a Record LowNew-home construction plunged to an all-time low in December, capping the worst year for builders on records dating back to 1959. The Commerce Department reported Thursday that construction of new homes and apartments fell 15.5 percent to an annual rate of 550,000 units last month. That shattered the previous low set in November. January 23, 2009
Nevada Remains First in Foreclosures in 2008The Las Vegas metropolitan area ranked second in the nation last year for its rate of foreclosures, while Nevada held its top spot in the nation. RealtyTrac, a foreclosure listing firm based in Irvine, Calif., that compiled the figures, said 67,223 properties in the area — or 8.89 percent of all properties — faced foreclosure filings. That’s a 121 percent increase over 2007. Only Stockton, Calif., had a higher rate last year, at 9.5 percent of all housing units. Riverside and Bakersfield, Calif., and Phoenix followed Las Vegas to round out the top five. January 23, 2009
Tennessee Deal May Keep Thousands in HomesAn estimated 6,900 Tennessee homeowners in danger of foreclosure could get their Countrywide mortgages modified under terms of an agreement announced by the Tennessee attorney general’s office Thursday. Tennessee has joined about 30 other states signing onto a previously announced deal with Bank of America, which bought Countrywide last year. The deal is meant to address accusations that Countrywide misled borrowers around the country by getting many of them into high-priced loans they couldn’t afford. January 23, 2009
Orland Park Ordinance Requires Eviction of Troublesome TenantsWanting to cut down on crime, which Orland Park officials believe comes mainly from renters, the village has joined a growing number of south suburbs with ordinances that could force landlords to evict problem tenants. Officials say crimes such as drug offenses, domestic disturbances and weapons violations come mainly from the village’s 2,100 rental properties, although the village did not cite statistics. “It’s not so much that there’s major problems, but there are some problems, and we want to avoid problems in the future,” Mayor Daniel McLaughlin said. January 23, 2009
MN: Brooklyn Center Tries New Method to Stimulate Sales of ForeclosuresBrooklyn Center plans to use a novel funding source to help more than 100 buyers acquire some of the hundreds of foreclosed, vacant homes in the first-ring suburb. The program, funded by a commercial tax increment district, will provide up to $10,000 to each eligible buyer for closing fees or down payments on vacant homes that the seller registered with the city, said City Manager Curt Boganey. The money is provided as an interest-free loan that is forgiven if the owner lives in the house for five years. January 23, 2009
Richard Parsons to Become Chairman at CitigroupCitigroup (C) said Wednesday that board member Richard Parsons — the former CEO of Time Warner — will be taking over as chairman. Parsons succeeds Win Bischoff, who became chairman in December 2007 after the company let go of its embattled CEO and chairman at the time, Charles Prince. The move is effective Feb. 23. Bischoff is not putting himself up for re-election at the board’s annual meeting this spring, and will retire later this year, Citigroup said. January 22, 2009
Homebuilder Sentiment Index Hits New Record LowA key gauge of homebuilders’ confidence sank to a new low this month, as the deepening U.S. recession and rising unemployment erode chances for a housing turnaround. The National Association of Home Builders/Wells Fargo housing market index released Wednesday dropped one point to a record low of 8 in January. The index was at 9 for the previous two months. January 22, 2009
She Gave an Open House and Nobody CameThe Jan. 10 open house at the Park South condominiums, 12 two- and three-bedroom luxury apartments in Bronx Park South overlooking the southern end of the zoo, was quiet. So quiet, in fact, that not one person walked through the open door of Unit 6A on that snowy Saturday. “I can’t believe no one showed up,” said Jillian Faulls, a broker who represents the building. Since Thanksgiving, she had sent out 1,500 promotional postcards and 3,000 e-mail messages advertising perks like a free car service to the showing and the developer’s willingness to cover closing costs. January 22, 2009
Russel Honore Among Those on List for New FEMA ChiefNewly confirmed Homeland Security Secretary Janet Napolitano is close to naming a new FEMA administrator, with several new names in the mix of potential candidates, including retired Army Lt. Gen. Russel Honore, congressional staffers said Wednesday. Honore got high marks for directing the military response to Hurricane Katrina, drawing praise from Louisiana leaders for his “get-it-done” attitude. But Honore, a native of Lakeland in Pointe Coupee Parish, doesn’t have the lengthy record of emergency management of others on Napolitano’s short list. January 22, 2009
Not Everyone can Refinance to Cut Mortgage PaymentsThe average interest rate for a 30-year mortgage dipped below 5% this week, a level not seen since the Eisenhower administration. Not surprisingly, homeowners are scrambling to commemorate this historic event by refinancing their mortgages. There’s just one problem: In this credit-starved environment, even a five-star general might have trouble qualifying for a new mortgage. If you’re interested in refinancing, here’s what you’ll need: January 21, 2009
FTC Tries to Shut Door on Mortgage-Aid Scam ArtistsYou’ve probably seen the incessant TV and Internet pitches — “We can stop your foreclosure!” — offering hope to millions of homeowners who are behind on their mortgage payments or heading to foreclosure. But a new settlement from the Federal Trade Commission sends a blunt warning to the fast-growing foreclosure fix-it industry: If you take consumers’ cash upfront and promise you’ll save their homes, you’d better be able to deliver. January 21, 2009
Banks Foreclose on Builders With Perfect RecordsDave Brown, one of this city’s best-known home builders, had kept his head above water through the housing downturn, not missing a single interest payment on his loans. So he was confounded a few months back when one of his banks, spooked by the decline in his company’s revenue, suddenly demanded millions of dollars in additional collateral to continue carrying loans on his projects. He was unable to come up with the money, and in October, JPMorgan Chase foreclosed on five of his developments. Shortly thereafter, Brown Family Communities, 33 years in the business, decided to shut its doors. January 21, 2009
Economists See Deeper Housing Woes This YearA panel of housing experts on Tuesday projected that builders’ woes will deepen this year, pushing the prospect of a recovery into 2010 at the earliest. “We do expect ‘09 to be the down year, to be the bottom,” David Crowe, chief economist for the National Association of Home Builders, said during a news conference at the International Builders’ Show, which runs through Friday. January 21, 2009
Two Convicted of Filing Fraudulent Bankruptcy Petitions in Kansas to Stop ForeclosuresA federal jury in Topeka has convicted two Los Angeles area men of filing fraudulent bankruptcy petitions in Kansas to stop home foreclosures. The jury Friday found Isaac Yass, 42, and Robert Andrew Blechman, 39, guilty of six counts of mail fraud and six counts of aggravated identity theft. “The defendants used the bankruptcy system to operate an illegal foreclosure rescue scheme, causing harm to financially distressed homeowners and threatening the integrity of the bankruptcy system,” Richard Wieland, U.S. trustee for Kansas, Oklahoma and New Mexico, said in a written statement. January 21, 2009
Not Everyone can Refinance to Cut Mortgage PaymentsThe average interest rate for a 30-year mortgage dipped below 5% this week, a level not seen since the Eisenhower administration. Not surprisingly, homeowners are scrambling to commemorate this historic event by refinancing their mortgages. There’s just one problem: In this credit-starved environment, even a five-star general might have trouble qualifying for a new mortgage. If you’re interested in refinancing, here’s what you’ll need: January 16, 2009
Multiple Applications for MortgagesAs mortgage interest rates continue falling to new lows, a growing number of borrowers are applying to more than one lender to increase their chances of getting approved for refinancing. Anecdotal evidence suggests that only about half of the borrowers trying to refinance are getting approved, down from 60 to 70 percent during previous refinancing booms, said Doug Duncan, chief economist at mortgage financier Fannie Mae. As a result, borrowers are getting frustrated and anxious. January 16, 2009
Developers Allege Discrimination in Building MoratoriumA group of Jewish developers has filed a federal lawsuit against the Village of South Blooming Grove, which was created through public referendum in the summer 2006. In their suit, which has been assigned to Senior United States District Judge William Connor in White Plains, they contend that the village has acted in a manner calculated to thwart its own development by unreasonably extending a building moratorium for more than two and one-half years and by signaling its intent to adopt a restrictive zoning ordinance which is at variance with the existing character of the village. January 16, 2009
2008 Foreclosure Filings Set RecordForeclosure filings surpassed 3 million in 2008, setting a record that has Washington, D.C., policymakers calling for more aggressive efforts this year to aid troubled homeowners. Foreclosures last year were up 81% from 2007 and 225% from 2006, according to a report out today from RealtyTrac. One in 54 homes received at least one foreclosure filing during the year, RealtyTrac reported. Banks repossessed more than 850,000 properties in 2008 compared with about 404,000 in 2007. January 15, 2009
Mortgage Applications Rise as Rates Hit Record LowsMortgage applications jumped in the first full week of 2009 as record low interest rates spurred the greatest demand for refinancing home loans in more than 5-1/2 years, according to data from the Mortgage Bankers Association. Low mortgage rates, however, have so far failed to fuel demand for loans to buy homes. January 15, 2009
HUD KICKS OFF SIX-CITY FINANCIAL LITERACY CAMPAIGN TO HELP TROUBLED HOMEOWNERS AVOID FORECLOSURE AND RESCUE SCAMSU.S. Housing and Urban Development Secretary Steve Preston today announced HUD’s latest effort to prevent foreclosure by launching an aggressive consumer education campaign in six cities. HUD’s “Keep Your Home. Know Your Loan.” campaign will kick off in Chicago, Detroit, Los Angeles, Miami, New York and Phoenix. Preston launched the public awareness initiative at Neighborhood Housing Services, a New York City agency that offers clients free mortgage delinquency and default resolution counseling. HUD’s financial literacy campaign builds on the Department’s continuing commitment to support its 2,600 housing counseling agencies across the country. January 15, 2009
Finding Havens for the HomelessFrom the steam grates of Pennsylvania Avenue to the porticoes of the city’s grand buildings, homeless Washingtonians who live inside the nation’s tightest security zone are being encouraged to decamp during the inauguration for shelters in the city’s outer neighborhoods. The security sweeps will probably begin Monday. Buses will make one-way trips to two of the District’s largest shelters, which will remain open round-the-clock, said D.C. Council member Tommy Wells (D-Ward 6). January 15, 2009
Swindlers Find Growing Market in ForeclosuresAs home values across the country continue to plummet, the authorities say a new breed of swindler is preying on the tens of thousands of homeowners desperate to avoid foreclosure. Until recently, defrauders tried to bilk homeowners out of the equity in their homes. Now, with that equity often dried up, they are presenting themselves as “foreclosure rescue companies” that charge upfront fees to modify loans but often do nothing to stave off foreclosure. January 15, 2009
Bankruptcy System takes on the Mortgage MessAiming to keep overextended borrowers in their homes, judges and trustees in the federal bankruptcy court system have helped a small Kentucky firm set up a nationwide service intended to speed the modification of troubled mortgages. But the court system’s unusual support for the private project, which some supporters believe could also help stem a surge in bankruptcies, has divided debtor attorneys, some of whom believe their colleagues have gotten in bed with the enemy and others who say it is just one potential tool to clean up a giant mess. It could, however, make millions for its creator. January 15, 2009
Affordable Housing for Ballardvale Rejected by Zoning Board of AppealsThe ZBA’s decision stemmed from a disagreement over using a 2.6-acre piece of the 12-acre project. In the 1980s, that parcel was approved by the ZBA for a single-family home, which was never built, as part of Charlotte Circle. In December, the ZBA gave developer Todd Wacome the choice to redesign Taylor Cove without the 2 acres, known as parcel A, or to have the entire project denied at the Jan. 8 meeting. January 15, 2009
Cook County Foreclosures Jump 84% in DecemberHome foreclosures spiked 84 percent in Cook County in December from a month earlier and were up 24 percent from a year earlier, according to RealtyTrac’s latest report, to be released today. One in every 300 homes in the county was in foreclosure last month. January 15, 2009
Tenants as the New Landlords: N.Y.’s Public Housing Residents Demand - and Deserve - a Greater VoiceAt 10 o’clock this morning, a few hours before Mayor Bloomberg delivers his annual State of the City address, a group of demonstrators will be marching outside the headquarters of the New York City Housing Authority, delivering, in protest form, a State of the Projects report. The march will be led by the council of tenant association presidents, leaders elected by the 400,000-plus NYCHA residents. If the city-within-a-city called public housing has roughly the same number of residents as the city of Atlanta, the tenant presidents amount to a sort of city council. January 15, 2009
ND Bill would give Sex Orientation Protected StatusA bill that adds sexual orientation as a protected class to North Dakota’s Human Rights and Fair Housing acts will be filed next week, according to the state’s Human Rights Coalition. If the bill passes, discrimination based on sexual orientation will be prohibited in housing, employment, credit transactions and use of public accommodations. January 15, 2009
Link Aboriginal Housing to Jobs: ex-MPA no-job-no-house rule should apply to all future housing developments in remote Aboriginal communities, a former government minister says. The federal government is currently looking at ways of addressing the housing crisis and chronic overcrowding in many remote communities. Former Keating government minister Gary Johns says the government should only finance new housing if residents can afford to pay rent or a mortgage. January 15, 2009
Urban Renewal Redux in BronzevilleAs the city of Chicago continues its quest to land the 2016 Olympics, many who’ve worked hard to rejuvenate the Bronzeville community into a hub of African-American history and commerce now fear the city’s Olympics plans will push them out. And some say it’s an ugly déjà vu. A half century ago, black doctors and janitors lived among each other in the thriving Douglas neighborhood, also known as part of the Bronzeville community. Then something happened that helped contribute to the break up of the South Side enclave. January 15, 2009
Predatory Lending Suit Filed by Birmingham DismissedA judge has dismissed a predatory lending lawsuit filed by the city of Birmingham, but the case could return to court if the defendant mortgage lenders don’t settle. Circuit Judge Houston Brown this week dismissed the suit after the parties involved sought a joint dismissal. However, the suit will be refiled Feb. 5 against lenders who do not agree to a settlement, said Jere Beasley, whose firm represents the city. Beasley said lawyers with Beasley, Allen, Crow, Methvin, Portis & Miles will begin negotiations with five mortgage lenders Thursday. He said he expects to know by Monday who would be named in the suit if it were refiled. January 15, 2009
BUSH ADMINISTRATION ANNOUNCES MORE THAN $650 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIESThousands of very low-income senior citizens and persons with disabilities will be able to find affordable housing thanks to more than $650 million in grants announced today by the U.S. Department of Housing and Urban Development. The funding will provide non-profit developers interest-free capital advances to produce accessible housing, offer rental assistance, and provide supportive services for the elderly and persons with disabilities through HUD’s Section 202 and Section 811 grant programs. January 14, 2009
Pressured Citigroup Spins Off BrokerageFederal regulators have taken an unusually active role in the affairs of Citigroup, telling the New York financial giant that it must raise capital from private sources and take whatever steps are necessary to restore investor confidence in its financial viability, according to people familiar with the situation.Citigroup’s deal to spin off its Smith Barney retail brokerage, announced yesterday, is the first step in a broader plan to sell valuable business units to raise the money that the company needs to endure, those sources said. January 14, 2009
In Court, ‘05 Survivor Relives Bronx InfernoThe firefighters scrambled around the bedroom gone black with smoke except for the walls, which looked as if they were made of flame. Two of them collided, sending one man’s tools clattering to the floor. He felt flames lick beneath his pants, felt flames on his leg. “It was starting to get like hell in there,” the firefighter, Jeffrey Cool, 41, testified in State Supreme Court in the Bronx on Tuesday. He paused. “It was hell.” The firefighters, trapped by flames in a warren of illegal drywall partitions in a Bronx apartment building, made their way to the only escape hatch they could find: the windows of the fourth-floor apartment. January 14, 2009
Army Corps of Engineers Delays OutrageFrustration and rage poured from state officials in Baton Rouge Tuesday over continuing delays by the Army Corps of Engineers in producing a plan for “Category 5” storm protection. If those recommendations don’t get to Congress by 2010 — a distinct possibility — that could raise a new and thorny obstacle that could further mire the projects in federal politics. That’s because Congress in 2007 enacted a provision allowing all projects recommended by the corps before 2010 to be put into a fast-track approval process, which requires a vote after just 45 days. January 14, 2009
Corps of Engineers won’t Issue LNG Permit Until Condition are MetThe Army Corps of Engineers said it will not issue a permit for a proposed liquefied natural gas terminal at Sparrows Point and a pipeline through Maryland to Pennsylvania until the project’s developer has complied with federal wildlife regulations, prepared mitigation plans for wetlands that might be disturbed during construction and met other requests for information. January 14, 2009
Fannie Mae Won’t Evict Renters in ForeclosuresMortgage finance company Fannie Mae said Tuesday it has adopted a policy allowing renters to remain in their homes even if their landlord enters foreclosure. The new policy will allow residents of about 4,000 properties to sign new leases with Fannie while the property is up for sale. Michael Williams, Fannie Mae’s chief operating officer, said in a statement that the change should “help bring a measure of stability to communities impacted by high foreclosure rates.” January 14, 2009
Corzine Endorses Delay on Housing FeeGov. Jon S. Corzine endorsed a proposal Tuesday to delay a 2.5 percent developer’s fee intended to help pay for affordable housing. Money from the fee, levied on the value of commercial projects, is meant to help cover the cost of constructing housing for people with low and moderate incomes.“I am calling today for a one-year moratorium,” said Corzine, who signed the fee into law in July as part of a larger affordable-housing reform bill. Corzine said he is calling for a moratorium — which must be approved by the state Legislature — because of the “economic realities and pressures of the current economic environment.” January 14, 2009
Community Group Disrupts Sale of Foreclosed HomesYadira Quinones of Brentwood said the fear of losing her $390,000 home to foreclosure keeps her from sleeping and eating because her mortgage lender refuses to work out a deal with her. “I don’t want to lose my house,” Quinones, 53, said on the verge of tears. She was one of about 50 local members of a community advocacy group - ACORN - that disrupted yesterday’s auction of foreclosed houses in Nassau at the State Supreme Court building in Mineola. January 14, 2009
Florida Budget Cuts Kill Hollywood Affordable Housing ProjectA 120-unit senior rental complex in Hollywood will be canceled as a result of state budget cuts being finalized in the state capital today, the project developer said. Crews were scheduled to begin construction in May on The Gardens at Driftwood, a 55-and-older rental complex with one- and two-bedroom units ranging from $346 to $898 a month, developer Marc Plonskier said. But without $8 million in state funding from an affordable-housing trust fund legislators are expected to eliminate today, the project can’t go forward, Plonskier said. January 14, 2009
Chicago to Receive $55 million Federal Grant to Battle Foreclosure FalloutChicago will receive more than $55 million from the federal government to combat the impact of foreclosures on city neighborhoods, more money than just about any other city in the country. The money will buy and fix foreclosed and abandoned homes to revitalize neighborhoods wrecked by the housing crisis, part of a nearly $4 billion nationwide Neighborhood Stabilization Plan funded by the Department of Housing and Urban Development. Of the 25 neighborhoods the city plans to target, most are located in the South and West Sides. They include Austin, Englewood, East and West Garfield Park and Washington Park, according to the city plan. January 14, 2009
Pima to Buy up some Foreclosed HomesPima County will put $1.5 million in affordable-housing bond funds toward protecting neighborhoods hit hard by foreclosures and vacant homes. The Board of Supervisors voted unanimously Tuesday to apply the bond funds to the county’s Foreclosure Prevention Program. The bond funds will be used along with $3 million in federal funds to buy homes that have been abandoned or foreclosed upon in the neighborhoods worst hit by foreclosures in Tucson and Pima County. January 14, 2009
Legislation Targets Dirty Foreclosure PracticesThe home foreclosure crisis will inspire still more legislation this year to protect people from fraud.State Sen. Mike Fasano, R-New Port Richey, learned about a trick played on renters, Fasano’s chief legislative assistant, Greg Giordano, explained. An unscrupulous owner of a home in the middle of foreclosure would go ahead and rent the house to unsuspecting tenants, Giordano elaborated. January 14, 2009
Broker Says She’s Guilty in Subprime Loan CaseA Dorchester mortgage broker who helped unqualified home buyers secure subprime loans has pleaded guilty to forgery, larceny, and other criminal charges, the state attorney general’s office said yesterday. Nicole Lyder, 34, was sentenced Monday to two years in the Suffolk County House of Correction after entering a plea in Suffolk Superior Court. The allegations included providing false financial information about clients to lenders, qualifying them for loans they couldn’t afford, and then collecting thousands of dollars in commissions. January 14, 2009
An Appraisal UpheavalWhen you apply for a mortgage to buy or refinance a house, should you be concerned that your appraiser is being paid much less than the $300 to $600 you’re charged, perhaps half? Should you know who pockets the rest, or that cut-rate fees are too low to attract the most experienced appraisers? Should you care that the appraiser might be pushed to come up with a number so quickly — almost overnight in some cases — that he or she doesn’t have the time to do a proper inspection and accurate evaluation of comparable properties, pending sales contracts and local market trends? January 13, 2009
Mortgage Interest: What Can You Deduct at Tax Time?Deducting the interest you pay on your home mortgage is one of the big tax benefits available to American homeowners. If you have a mortgage, by the end of this month your lender will send you a Form 1098, which tells you how much interest you paid in 2008. When you do your taxes, that number goes on Line 10 of Schedule A of Form 1040. If you have a loan from a private person, such as a relative, you will need to determine yourself how much interest you have paid. That number goes on Line 11. There are three major limitations on the amount of interest you can deduct. January 13, 2009
This Year, Resolve to Save More and Improve Your Credit ScoreEven though a recession has taken hold, there are things you can do to improve your personal finances. Because we are at the beginning of a new year, it’s a good time to do a frank assessment of where you stand. Then create a vision of where you want to be by December. With some careful planning, you may be able to get there. In this week’s column, we’ll start a conversation about how to make your finances real estate-ready and get your credit in home-buying shape. January 13, 2009
More Seek Heating-bill Help with Low-income Energy AssistanceWith unemployment soaring, a record number of people are seeking federal assistance to pay energy bills this winter, a survey set to be released Tuesday indicates. About 7.3 million households, 1.5 million more than last year, will likely receive $5.1 billion in subsidies from the Low Income Home Energy Assistance Program, the National Energy Assistance Directors’ Association says. January 13, 2009
Prices for Rooftop Solar Systems Fall as Supply GrowsHere’s a bright spot in an overcast economy: Solar panel prices are tumbling. Prices for rooftop solar systems, including installation, already have fallen 8% to 10% since October and are expected to drop another 15% to 20% this year. Fueling the trend are an oversupply of worldwide manufacturing capacity and lower demand, especially in Spain and Germany, which have been growth engines for the industry. For U.S. homeowners, effective prices are likely to plunge by more than 50% after figuring in a bigger federal tax credit that took effect Jan. 1. January 13, 2009
Apartment Buildings Could Spell Renaissance of Tulane AvenueJust up the road from the criminal courthouse, that formidable, neoclassical facade that seems to define Tulane Avenue, developers are erecting another landmark building that seems poised to transform the look and feel of one of the main commercial corridors of New Orleans. This building, the Crescent Club, is part of a new generation of apartments germinating in Mid-City with the help of tax credits and other incentives pumped into New Orleans after Hurricane Katrina. Six apartment buildings with a combined 1,080 units have been launched on or near Tulane Avenue since the storm, making it one of the busiest hubs for new construction in the city. January 13, 2009
Department of Housing and Urban Development: Shaun DonovanStakeholders from across the housing industry hope that Shaun Donovan, President-elect Barack Obama’s pick for Housing and Urban Development secretary, can turn the neglected, demoralized agency into an effective player in the government’s efforts to fix the ailing housing industry. Budget cuts, brain drain and chronic second-tier treatment are among the institutional challenges awaiting the 42-year-old Donovan upon confirmation by the Senate. And, of course, he would become the nation’s top housing official amid record foreclosures and plunging home prices. January 13, 2009
Rent Control Needed to Help N.J. ResidentsThere is a mass exodus out of New Jersey. No one can afford to live here anymore. There are actual enemies of affordable living in Vineland and in state government.I called the governor and spoke at length to an aide. I asked him about implementing statewide rent control in New Jersey and making New Jersey a livable state. I even contacted senators and assemblymen about this. I also called the State Affordability Office. There was nothing but passing the buck and no sincere effort to help. January 13, 2009
Housing Starts are on Pace to Shrink Again this YearThe slump in new-home construction will continue into this year, with housing starts potentially falling to their lowest level in a decade. Houston-area developers are expected to build between 20,000 and 25,000 homes in 2009, housing analyst Mike Inselmann said Monday at his annual forecast presentation to members of the Greater Houston Builders Association. That’s down about 20 percent from last year. January 13, 2009
Economic Downturn Pounds Commercial Real Estate MarketContractors, investors and developers are bracing for what could be the worst real estate crunch since the early 1990s, when the industry built a small city’s worth of speculative office buildings that later went begging for tenants. Commercial property sales plunged 73% last year, according to Real Capital Analytics. Vacancy rates are rising, and hundreds of large properties are in default. The American Institute of Architects’ billing index, a leading indicator of construction six months ahead, is at a record low. Unemployment in the construction industry is 15.3%, well above the average 7.2% jobless rate. January 12, 2009
N.J. Gov Signs $40M Anti-foreclosure MeasureGov. Jon S. Corzine signed legislation Friday that provides $40 million for two programs aimed at keeping financially distressed homeowners from losing their homes to foreclosure. The bills are part of a package of legislation proposed by Corzine in October to help New Jerseyans through what he called “the single worst economic challenge this country has faced in the last 150 years, except the Depression. … We are proactively putting in place actions on housing stabilization that are unequaled across the country as far as I could see. January 12, 2009
Ponzi’s Original SwindleBut those are the words Mitchell Zuckoff used to describe the man who set the model for the scheme Madoff is accused of perpetrating: Charles Ponzi. If you have a desire to understand people who engage in financial fraud — and you should — read Zuckoff’s book “Ponzi’s Scheme: The True Story of a Financial Legend.” Now in paperback, “Ponzi’s Scheme” is my pick for the first Color of Money Book Club selection for 2009. January 12, 2009
Will Loan Limits Rise?IF you’re in the market for a new home, especially in an area where housing prices are typically high, it might make sense to wait a few weeks. Doing so could mean a significant reduction in your monthly mortgage bill — that is, if the lending industry and Congressional leaders have their way. Both groups have been lobbying President-elect Barack Obama to include in an economic stimulus package a provision that would again raise the limits on “conforming loans,” which are mortgages eligible to be purchased by Fannie Mae and Freddie Mac, two government-sponsored agencies that resell packages of loans to investors. January 12, 2009
Neighborhoods, Up Close and PersonalEVEN if the latest economic slump stunts the explosion of New York’s population before the end of the decade, you can count on the fact that the city’s proverbial changing neighborhoods will keep changing. Detailed census figures released last month and analyzed for The New York Times by Andrew Beveridge, chairman of the sociology department at Queens College, reveal just how vividly many neighborhoods have changed since 2000. Through 2007, more whites moved to Harlem. More young children live in Lower Manhattan, the Upper West Side and the Upper East Side. In Flatbush, 40 percent fewer residents lacked a high school diploma in 2007 than in 2000. January 12, 2009
Baltimore-area Home Prices Fell 3% in 2008Baltimore-area home prices declined for the first time in at least a decade last year, preliminary figures released this weekend show, as the region’s housing market feels the sting from the worsening recession. Sales statistics released by the area’s real estate listing service indicate the average home price dropped 3 percent last year to $306,500 in Baltimore and its five surrounding counties compared with 2007. The figure was less than the average in 2006 as well. January 12, 2009
Chemicals, Mold, Dust, etc. can Make Home Hazardous Place to BreatheLocked up at home nice and tight on a chilly January night. Take a deep breath. But what exactly are you breathing? Studies show indoor air can be more polluted than outdoor air, as much as five times more. And even a “leaky” house - one not so tightly sealed against escaping heat and incoming drafts - can have contaminants in the air. Indoor air quality can be compromised by deteriorated insulation, molds growing in a wet basement, chimney backdrafts, improper ventilation, and air leaks in ductwork or other household systems. Add to that chemicals in household cleaners and sprays, fumes from new carpeting, stain-treated furniture, pests and pet dander, tobacco smoke and on and on. January 12, 2009
Appraisers are Affected by New Code of ConductWhen you apply for a mortgage to buy or refinance a house, should you be concerned that your appraiser is being paid much less - maybe just half - of the $300 to $600 you’re charged on your settlement sheet? Should you know who pockets the rest, or that cut-rate fees are too low to attract the most experienced, highly trained appraisers? Should you care that the appraiser might be pushed to come up with a number so fast - almost overnight in some cases - that he or she doesn’t have the time to do a proper inspection and evaluation of comparable properties, pending sales contracts and local trends? January 12, 2009
What a Deal Foreclosures New Investor AlternativeWilliam Blackmon went to the Jan. 6 foreclosure and delinquent tax auction at the steps of the Tarrant County Courthouse with his wallet in hand and his eye on a three-bedroom house in Fort Worth’s Near Southside appraised at $112,000. After a short bout of bidding, Blackmon walked away as the proud owner of the home for a whopping $37,000. “I wanted to buy it so I can flip it, sell it to an investor wholesale,” Blackmon said, smiling. “You can’t get a much better deal than that.” January 12, 2009
Federal Reserve: How Texas Dodged Most Subprime TroubleThe Federal Reserve Bank of Dallas has put together a study on what specifically helped Texas avoid the same pain other states have felt through the mortgage meltdown and recession. Tight regulations on lending, housing price appreciation, steady job growth and a strong state economy are the keys to what kept Texas out of the early stages of the mortgage mess, said Anil Kumar, a senior economist in the research department at the Federal Reserve Bank of Dallas. January 12, 2009
Record Number of Mortgage Modifications in IndianaA record number of Indiana residents are trying to save their homes from foreclosure by modifying their mortgages in deals that lower or delay their monthly payments. During the third quarter of 2008, there were 5,000 mortgage modifications statewide — about four times more than in the same period of the previous year, according to the Homeowners Preservation Foundation, which tracks the mortgage crisis nationally. Once rare, mortgage modifications — or “mods” as they’re called in the mortgage industry — have become a key tool to reducing home foreclosures, which topped 100,000 in Indiana alone last year. Foreclosures are a major contributor to the nation’s sinking home values. January 12, 2009
Ask a Lawyer: Can Condo Owner get Neighbor to Stop Smoking?Q. My wife and I own a condo in a 12-unit building in South Florida, which we use periodically. The condo’s owner lives one floor above, and she smokes heavily. Because of a flaw in the condo’s venting system, her smoke permeates our unit, causing misery to us nonsmokers. All our clothes and furniture smell. January 12, 2009
Affordable Housing Agencies Look to Foreclosed HomesInstead of building from the ground up, two of Frederick County’s affordable housing agencies could make good use of an unfortunate increase in foreclosed homes. The rehabilitation and sale of foreclosed properties is one component of a $3.5 million Neighborhood Conservation Initiative that Frederick County officials hope to start this spring. January 12, 2009
Shady Subprime Lenders Creeping into Federal Mortgage ProgramThe federal government is ill-equipped to stop the migration of predatory subprime lenders to the rapidly growing sector of U.S.-backed home loans, raising the specter of another cycle of lending abuses. The Federal Housing Authority lacks sufficient staff, adequate technology and legal authority to screen questionable lenders who seek to participate in the issuance of federally backed loans, Department of Housing and Urban Development officials told lawmakers late Friday. January 12, 2009
In Fighting Foreclosure, Avoid High Upfront Fees, ScamsRep. Elijah E. Cummings and housing advocates warned Maryland homeowners yesterday to avoid shady businesses that charge high upfront fees to avoid foreclosure. Since the mortgage and housing crisis began widening last year, Maryland officials have tried to stem the tide of people losing their homes to foreclosure. Since September, officials said, they’ve seen a troubling trend of struggling homeowners turning to for-profit companies that offer so-called “loss mitigation consulting” or “foreclosure prevention.” But they emphasized that Maryland’s Protection of Homeowners in Foreclosure Act requires that companies cannot charge consumers upfront fees for such services, which in some cases have been as high as $3,000. January 10, 2009
New Homes Being Built SmallerThe American dream is shrinking. For the first time in at least a decade, builders are substantially reducing the size of new houses. “We’re trending toward smaller homes,” says Gopal Ahluwalia, director of research for the National Association of Home Builders. He says growth in the average size of new single-family homes, which went from 1,750 square feet in 1978 to 2,479 in 2007, is starting to reverse. His analysis of Census data shows that homes started in the third quarter of 2008 averaged 2,438 square feet, down from 2,629 square feet in the second quarter. Ahluwalia, who began the quarterly analysis in 1999, says there have been slight dips before, but the latest drop was much steeper and is likely to hold even after the economy recovers. January 9, 2009
Citigroup Supports Bill for Mortgage Relief to DebtorsLending giant Citigroup (C) on Thursday threw its support behind a controversial bill in Congress to let bankruptcy judges reduce what debtors owe on home mortgages in an effort to stem the USA’s rising tide of foreclosures. The proposal, pushed by Democratic lawmakers, could be included in economic stimulus legislation. January 9, 2009
Inaugural Rentals Begging For TakersAcross the Washington region, homeowners’ dreams of a quick and easy payday are evaporating as the days tick down to President-elect Barack Obama’s swearing-in ceremony Jan. 20: The inaugural housing market has gone bust in record time. Those who listed their properties within a week or two of Obama’s Nov. 4 election victory were able to score deals, but those who jumped on the bandwagon after that have largely been left without offers. January 9, 2009
Lenders Backlogged By Refinancing RushBorrowers are rushing to refinance their mortgages at record low interest rates but face unexpected delays as swamped lenders struggle to cope with the surge at a time when layoffs have sharply cut staffing. Bank of America, which started shedding 7,500 employees after its July merger with Countrywide, recently yanked 300 workers from its home equity line department to help deal with refinancing requests, said Matt Vernon, the bank’s national sales executive. January 9, 2009
Consumer Credit Falls By Record Amount in NovemberConsumers cut back on their borrowing by a record amount in dollar terms in November, another sign of trouble for the rapidly weakening economy. The Federal Reserve reported yesterday that borrowing through credit cards and other consumer loans dropped $7.94 billion in November, the biggest decline in 65 years of record-keeping. That also was much larger than the $500 million decline economists expected, and left total consumer credit outstanding at $2.57 trillion. January 9, 2009
Renewing Green DevelopmentPresident-elect Barack Obama said yesterday that he wanted to double the production of alternative energy over the next three years, a goal that will probably require a new set of government incentives for the capital-intensive solar and wind industries. Six months ago, some of the biggest names in solar- and wind-project finance were firms such as Lehman Brothers, Morgan Stanley, GE Capital, Wells Fargo and Municipal Mortgage & Equity. But many of those firms are mired in their own financial crises, and existing tax benefits for renewable energy projects are now unattractive to them. A technical aspect of the bank bailout has even made renewable tax incentives useless for some profitable banks. January 9, 2009
HUD RETURNS MIAMI-DADE HOUSING AGENCY TO LOCAL CONTROL — CITES IMPROVED MANAGEMENT AND COUNTY COOPERATIONThe U.S. Department of Housing and Urban Development today returned control of the Miami-Dade Housing Agency (MDHA) to the Miami-Dade County after 15 months in HUD possession. HUD cited accomplishments by the HUD oversight team and the County to complete critical tasks to improve the performance of MDHA. “We are pleased to announce that the Miami-Dade Housing Agency is a more efficient institution than it was a little over a year ago when HUD took possession,” said HUD Secretary Steve Preston. “It was my intention to work cooperatively with Miami-Dade’s leadership and Congressional representation to resolve any matters that stood in the way of providing Miami families and taxpayers the best possible customer service.” January 9, 2009
Homebuilders Oppose Arundel Sprinkler MeasureFor many, a residential sprinkler system seems to be a simple and effective way to prevent deadly household fires. But homebuilders say an Anne Arundel County bill that would require sprinklers in newly built single-family homes would place an unnecessary strain on an industry that is struggling. The bill, which the Anne Arundel County Council passed in a 6-1 vote this week, and which has the support of County Executive John R. Leopold, would require that all “new one- or two-family dwellings, town homes and first-occupancy manufactured homes,” be equipped with sprinklers. January 9, 2009
Refinance RushThe economic turmoil of 2008 has left few bright spots, but here’s one: Mortgage rates have plummeted. Rates on 30-year, fixed loans are hovering around 5 percent - the lowest level since Freddie Mac began tracking rates in 1971. Some economists predict a further slide in rates once Barack Obama becomes president and rolls out an economic rescue plan. And that could mean thousands of dollars in savings for Maryland homeowners. January 9, 2009
Corps to Study Southwest Louisiana Levees, Coast in TandemThe Army Corps of Engineers will study the feasibility of both building levees and undertaking coastal restoration projects in southwestern Louisiana, to protect populated areas in Vermilion, Calcasieu and Cameron parishes while improving natural habitats for wildlife, corps and state officials announced Thursday. The tactic sets a promising precedent for all levee projects in that it seeks to create one strategy combining coastal restoration and levee-building — projects that often conflict with one another. January 9, 2009
Foreclosure Suspensions Extended through Jan.Mortgage giants Fannie Mae and Freddie Mac said Thursday they will extend the suspension of foreclosure sales and evictions from single-family homes through the end of January. The companies had suspended foreclosures through the holidays, but were expected to resume proceedings after Jan. 9. The government-controlled home loan giants said the extension will allow borrowers facing foreclosure to keep their homes as it works with mortgage servicers to find options for troubled mortgage holders under the Streamlined Modification Program. January 9, 2009
Banks Are Practically Giving Away Foreclosed HomesWith the nation in the grips of an economic crisis and the housing market spiraling out of control, the number of foreclosed homes continues to skyrocket. Some of these homes can be had at incredible bargain prices — even as little as $1,000. Real estate Web site Realtor.com lists nearly 800 homes in the Midwest for under $3,000, including 22 in Indianapolis, 46 in Cleveland, 18 in Flint, Mich., and 709 in Detroit. January 9, 2009
Realtors Train to Avoid CourtIt’s the course with the attention-grabbing title in the Wichita Area Association of Realtors 2009 education catalog: “No One Looks Good in Horizontal Stripes — How Not to Make a Jailhouse Fashion Statement.” It teaches how to navigate the tricky federal laws governing relationships between agents, customers and service providers. The goal? Give home sellers enough information about the law to keep them out of court.

“It’s the nuts and bolts of how not to screw up these relationships too badly,” said Trista Curzydlo, WAAR’s legal counsel and a former attorney in Kansas Gov. Bill Graves’ office. January 9, 2009
Advocates for Poor Challenge Plan for Storm AidThe Houston-Galveston region would receive more than three-quarters of $1 billion in federal funds under a preliminary plan to help Texas recover from Hurricanes Ike and Dolly.The plan by the state’s Office of Rural Community Affairs leaves most decisions about how to spend the money to local councils of government, including the Houston-Galveston Area Council. Advocates for poor and working-class families said this structure creates a risk that too little of the money will be spent on housing and too much on public works projects favored by local politicians. January 9, 2009
Mortgage Applications Dipped as Consumers Awaited FedApplications for U.S. residential mortgages slipped from lofty levels last week as homeowners slowed refinancings ahead of expected federal action to lower housing costs, an industry group said Wednesday.The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell for the first week in four, dropping 8.2% to 1,143.8 in the week ended Jan. 2, a five-year high. January 8, 2009
Raffles, Weekend Stays Used to Attract Home BuyersHomeowners and real estate agents are turning to increasingly creative tactics to sell homes in a weak market. They include raffles, one-day-only sales, even free weekend stays at the house to entice buyers at a time when consumer credit is tight and the supply of available homes is rising. “With inventory and supply the way it is, (homes) have to stand out,” says Walter Maloney, a spokesman for the National Association of Realtors. January 8, 2009
Late Loan Payments Hit Record High in Q3Late payments on consumer loans in last year’s third quarter hit the highest level since record-keeping began in 1980, the American Bankers Association said Wednesday. The association said delinquencies rose to a seasonally adjusted 2.9% from 2.68% in the second quarter. The number is a composite ratio reflecting the percentage of accounts across eight categories of consumer loans with payments overdue 30 days or longer. The previous record was 2.88%, set in the third quarter of 1989, ABA spokeswoman Carol Kaplan said. January 8, 2009
MD: State OKs 4,800-acre Purchase to Preserve Shore LandState officials agreed yesterday to buy one of the largest privately owned forests left on the Eastern Shore for $14.4 million, though not without questions about whether taxpayers are paying too much to preserve land in the depressed real estate market. The Board of Public Works unanimously approved purchase of the 4,800-acre tract in Worcester County, pointing to its ecological value as a habitat for rare plants, birds and other animals. It is one of two major land preservation deals announced last month by Gov. Martin O’Malley. Together, they will cost $71 million for 9,200 acres of woods, fields and undeveloped waterfront. January 8, 2009
HUD CHARGES MISSISSIPPI HOUSING AUTHORITY, PROPERTY MANAGERS, AND APARTMENT COMPLEX WITH VIOLATING FAIR HOUSING ACTThe U.S. Department of Housing and Urban Development announced today that it has charged the Mississippi Regional Housing Authority, No. VIII (MRHA), of Gulfport, Sun Belt Management Company, Inc., and Oakridge Park Apartments, Ltd., in Biloxi, with denying a disabled resident an available first-floor apartment, in violation of the federal Fair Housing Act. The Fair Housing Act makes it unlawful to refuse to make reasonable accommodations when such accommodation may be necessary to afford a person with disabilities equal opportunity to use and enjoy a dwelling. January 8, 2009
Manhattan Luxury Housing Feeling the PinchPark Avenue property owners are feeling a little poorer. In what seemed like a New York-minute, prices of luxury homes in the area suddenly started to fall. One penthouse owner on Central Park West repeatedly slashed the asking price down to $9.9 million from an original $16.5 million — and still no takers. “Up through the end of this summer, there were almost two markets in Manhattan, the high-end and everything else,” said Jonathan Miller, president and chief executive of Miller Samuel Inc., a real estate appraisal and consulting firm. January 8, 2009
Mortgages: What You Need to Know in 2009With all the doom and gloom over housing, you might be surprised to know that this is a fantastic time to get a mortgage. Not if you have poor credit, to be sure. But you can get a great deal on a 30-year, fixed-rate, conforming loan these days if you have a solid FICO score, a manageable debt burden, and proof positive of a reliable income. You have to go back to around 1961 to find a time when 30-year mortgages had rates this low, according to Keith Gumbinger, a vice-president at financial publisher HSH Associates in Pompton Plains, N.J. For that, thank the U.S. government, which is trying to jump-start the stalled housing market by buying up mortgage-backed securities. January 8, 2009
Jim Crow in the NorthIn Sweet Land of Liberty: The Forgotten Struggle for Civil Rights in the North (Random House, November), Thomas J. Sugrue, a professor of history and sociology at the University of Pennsylvania, lays bare the difficulty blacks have had in the North from before the first black Great Migration in the ’20s to the present. This 80-year chronicle of recent history is, at best, a glass-half-empty tale. The ’20s, as Sugrue tells it, was an era of growing hostility, as blacks moved north. Restrictive covenants blocked black entry into many neighborhoods. January 8, 2009
Daley Commits $2.1 bil. to Affordable HousingArguing that affordable housing is “more important than ever” in an economic downturn, Mayor Daley on Wednesday committed $2.1 billion to create 50,022 units of rental and for-sale housing by 2013. The financing crucial to any deal will come from federal and state funding, low-income tax credits, bonds, loans and tax-increment financing subsidies. In 1993, Daley unveiled the city’s first five-year plan for affordable housing under pressure from the City Council. The last five-year plan used nearly $1.9 billion to build 24,000 multi-family units and preserve or improve 19,000 units for homeowners. January 8, 2009
Partnership Mortgages: Buy Worcester Now puts Owners in HomesLiving in a small apartment in Clinton with a baby on the way, Arlin N. and Abel N. Herrera knew they wanted to move soon. The couple had thought about buying a home, but assumed it would be years away while they saved their money. But with financial help from UMass Memorial Health Care, Ms. Herrera’s employer, and assistance from other partners in the Buy Worcester Now program, the couple is settling into a Glen Street duplex they purchased in mid-December. January 8, 2009
Home Loan Help Falls ShortDespite increased willingness by some lenders to renegotiate troubled home mortgages, the new modified loans have not gone as far as hoped to help strapped homeowners stave off defaults. Federal data released in December show that more than half of all mortgages modified in the first three months of 2008 defaulted again within six months. U.S. Comptroller of the Currency John C. Dugan said the numbers, which take into account mortgages negotiated by more than a dozen major banks, raise questions about programs designed to keep people in their homes. January 8, 2009
No Recovery for Real Estate as Speculators Dominate SalesAs the U.S. housing recession enters its fourth year, there’s no sign of a recovery because speculators account for most of the rise in sales. While the purchases are trimming the inventory of unsold properties, most of those bought by speculators will likely return to the market when prices rise again, hampering any recovery, said Nobel laureate economist Joseph Stiglitz and Yale University Professor Robert Shiller in interviews. January 8, 2009
Domestic Violence Victims can Protect Themselves, Advocates SayThe Women’s Center helps victims of domestic violence with legal recourse, housing, counseling and more, Ms. MacLeod-Lima said. Experts at the center can help women determine the amount of danger they are in so they can act accordingly. That could mean installing an alarm system on their home, or it could be moving to a place where the abuser cannot find them. In Ms. Mendes’ case, it appears the level of danger was high, Ms. MacLeod-Lima said. January 8, 2009
Foreclosure Threatens Family of 10The family is four months behind in their mortgage and has racked up $20,000 on a credit card paying for groceries, car repairs, gas and utilities. If the world rewarded material riches to people who stand by the values of faith and family, the Ellers might not be in this predicament. And that is what is so very wrong with the Ellers’ situation. Their descent into debt was hastened by a mysterious virus that wrecked the nerves in the father’s left arm. But otherwise, the elements of their troubles — layoffs, businesses’ reluctance to hire people in their 50s, a market saturated with job applicants — are the worries of many people. January 8, 2009
NATIONAL CALL TO ACTION BREAK UP WITH BANK OF AMERICA ON VALENTINES DAYThis Valentine’s Day, February 14th, 2009, join Rising Tide Boston (RTB) in demanding that Bank of America stop its funding of the dirty and deadly coal industry and demanding, in solidarity with City Life/Vide Urbana, stop its unjust foreclosures and evictions of working families. Closing your account with Bank of America (BOA) is an important step in bringing closure to this unhealthy relationship. In Boston, we are planning a day of coordinated bank account closures in at least two locations, and encourage people in other places to organize something similar. January 8, 2009
A Towering DisappointmentThe Dumont was a downtown high-rise to die for, with its promise of granite countertops, a rooftop pool and “a whole new level of living.” A year ago, without having set foot in the building at Fourth Street and Massachusetts Ave. NW, Hudspeth said, he put $15,000 down on a studio apartment priced at nearly $300,000, confident that he’d be moving within months. But he and dozens of other buyers, including some who put down deposits more than two years ago, are still waiting for their deeds. Several months ago, the developer stopped returning calls and e-mails, he said. January 6, 2009
New York Housing Plan Is DelayedMayor Michael R. Bloomberg’s plan to create or preserve 165,000 units of housing for low- and moderate-income families by 2013 has been pushed back one year because the economic recession has stifled the financing of low-cost housing. The one-year extension is the first major setback for one of the mayor’s oldest and most ambitious initiatives: his 10-year, $7.5 billion effort to build or preserve housing affordable to 500,000 low- and moderate-income New Yorkers. It officially began in 2003 and had progressed five years later to the point that in September, Mr. Bloomberg and city housing officials celebrated reaching the halfway mark on schedule, with 82,500 units financed. January 6, 2009
Striking Declines Seen in Manhattan Real Estate MarketFor those New Yorkers who wondered what the Manhattan real estate market might be like without the ever-rising bonuses of Wall Street’s elite, the answer is now emerging: an abrupt decline in transactions, tottering prices and buyers who are still looking but unwilling to sign a contract. Those are some of the conclusions in a series of market reports on the fourth quarter of 2008 released on Monday by brokerage firms, appraisers and other real estate analysts. Prices on completed sales of co-ops and condominiums, some negotiated months or years ago, were flat or down slightly, but the number of completed sales and newly signed contracts had plummeted, analysts said, as the economy faltered. January 6, 2009
Apartment Lost, Home FoundAs it turned out, she had locked herself out of her house, and it would take the police to get her back in. But instead of the usual defiance on her makeup-smeared face, she wore a look of defeat. The crises were coming with increasing frequency, and within weeks of this incident, she was selling her building to a young family. The rumored price: $1.6 million. The sale seemed to set off a domino effect on the block. Stoop after stoop was being repaired, sandblasted and repainted. The old house belonging to the unstable woman down the block was being gutted, and the sound of construction crews rattled on all day, shaking the floorboards of my home office. January 6, 2009
LHAND Offers Counseling and Assistance to Those in ForeclosureWith the number of foreclosures continuing to impact cities such as Lynn, the Lynn Housing Authority & Neighborhood Development (LHAND) has developed a two-pronged Foreclosure Prevention & Neighborhood Stabilization Program that consists of: foreclosure education, advocacy, loss-mitigation options and neighborhood-stabilization activities that focus on identifying distressed and bank-owned properties, purchasing, moderate rehab work and resale options. January 6, 2009
When Rental Houses are Foreclosed on, Tenants SufferEight months after signing a yearlong lease on a North Oak Cliff home, the Pinkertons were surprised to learn they’d have to move out. Like a growing number of renters, the family of four was threatened with eviction after their landlord was foreclosed on in November. They were unexpectedly faced with the prospect of having to quickly move themselves and all their belongings — including a grand piano. January 6, 2009
Portland Wins Almost all Arguments in David Douglas Urban Renewal CaseThe city has — mostly — won a legal challenge to its decision to divert urban renewal money from downtown to east Portland. The Portland City Council in June approved spending $19 million from the River District to build an elementary school and community center 10 miles away. The idea, pushed by former city Commissioner Erik Sten, was to use some of the money generated in the downtown district, which includes the Pearl, and invest it in the city’s outer east area. January 6, 2009
Metro-Area Foreclosure Sales Tripled in First 10 Months of 2008Foreclosure sales in the 25 largest U.S. metropolitan areas almost tripled in the first 10 months of last year as rising unemployment and falling home values made it tougher for homeowners to sell or refinance their mortgages. Motivated sales, which include foreclosure auctions and banks selling homes taken over for non-payment, increased 193 percent from January to October 2008 from a year earlier, New York-based real estate data company Radar Logic Inc. said today in a report. Conventional sales rose 6 percent in that period. January 6, 2009
Housing Discrimination Hurting Kaua’i’s Homeless, Group SaysAccording to the 2005 State of Fair Housing Report, published by the U.S. Department of Housing and Urban Development (HUD) Office of Fair Housing and Equal Opportunity, nearly 10,000 housing discrimination complaints were lodged in the 2004 fiscal year. Many more incidents likely went unreported. Anne Punohu, who organized the Kaua’i Fair Housing Law Coalition, believes the situation has only grown worse over the years and considers discrimination against community members who receive legal assistance from HUD as a source of income to be extremely prevalent on the island of Kaua’i. January 6, 2009
Allegheny County Program to Help Homeowners Avoid ForeclosureAllegheny County property owners facing foreclosure will have the chance to negotiate with lenders to keep their homes under a pilot program expected to start next week. As part of the effort, homeowners will be able to get free help from a housing counselor in renegotiating mortgage terms, setting up payment plans to cover delinquencies, or making other arrangements based on a Dec. 19 order filed by former Common Pleas President Judge Joseph James. January 6, 2009
Beware of False Promises on DebtAs some bring in the new year with cheer, others just see another year of cowering under what appears to be insurmountable debt. And when you cower, you can become desperate and lose whatever common sense your mama or daddy may have passed on to you. Otherwise, I can’t explain why someone would pay a company nearly $900 or more for the mere promise of helping reduce his or her debt. January 5, 2009
What if Your Landlord Faces Foreclosure?You’re paying your bills, but your landlord isn’t. And you’re the one holding the eviction notice. This is becoming an all-too-familiar scenario for thousands of renters nationwide who have become the unintended victims of foreclosures. Banks are booting good tenants onto the streets with little to no notice after seizing a property from a delinquent owner, ignoring tenant leases. In the most troubling cases, some families are forced into shelters for temporary housing because they have little savings to cover moving costs, first month’s rent and a security deposit at another apartment. Laws in some areas, including the District, protect tenants, but renters in most areas don’t have any recourse. January 5, 2009
Md. Assessments Reflect DownturnMany Maryland homeowners will see the softening real estate market reflected in lower property assessments mailed yesterday, although the change won’t necessarily reduce their tax bills significantly. According to the state Department of Assessments and Taxation, calculations performed this year showed that residential property values have dropped an average of 3.4 percent since those homes were last assessed in 2005. The dip comes after years of dramatic increases and is a sign that home prices have dropped in a stagnant market. January 5, 2009
Not-So-Bad News Cheers ArlingtonArlington County’s assessor has what passes for bright economic news this holiday season: Home values are down just 2 percent, and commercial assessments have actually ticked up by 1 percent. The picture offered yesterday by Arlington officials demonstrated a central tenet of this, and any, recession: Some get hit harder than others. In the Washington region, areas farther from the District and the region’s core are taking the brunt. January 5, 2009
As Vacant Office Space Grows, So Does Lenders’ CrisisVacancy rates in office buildings exceed 10 percent in virtually every major city in the country and are rising rapidly, a sign of economic distress that could lead to yet another wave of problems for troubled lenders. With job cuts rampant and businesses retrenching, more empty space is expected from New York to Chicago to Los Angeles in the coming year. Rental income would then decline and property values would slide further. The Urban Land Institute predicts 2009 will be the worst year for the commercial real estate market “since the wrenching 1991-1992 industry depression.” January 5, 2009
For RentSo with hotels across the region booked for this month’s inauguration, you’ve decided to make a few bucks by renting out your home for the first time. And now that you’ve got someone lined up as a renter, you’re wondering what to do before you hand over the keys to make sure you get paid and don’t return to find your house full of trash. “It’s amazing how trusting people are,” says Christine Karpinski, author of How to Rent by Owner and other books on renting vacation homes. She warns that homeowners must remember that renting is a “business transaction.” January 5, 2009
Council to Put more Homeless in Private HousingA SCHEME which places the Capital’s homeless in private flats and houses is set to be expanded as city leaders struggle to meet demand for affordable housing. Around 1500 of the city’s homeless population have been housed using Private Sector Leasing (PSL) over the past three years. The initiative works by the city council leasing properties from private owners for up to five years and then letting them, at a subsidised rate, to people who are homeless. January 5, 2009
In Foreclosure Fight, Every Weapon HelpsForeclosure rates continue to set records, but the worst is not over. Rates on exotic home loans, such as option ARMs and Alt-A mortgages, are about to reset higher. Short sales are continuing to drive down home prices, putting even more mortgages “under water.” Both factors are expected to add to the foreclosure numbers in 2009. With that in mind we were encouraged to see a bill filed by Rep. Paige Kreegel, R-Punta Gorda, that attempts to address the problem. The bill, if it became law, would authorize circuit courts to implement mortgage foreclosure diversion programs that would require lenders to hold “conciliation conferences” with distressed borrowers before they initiate foreclosure proceedings. January 5, 2009
Housing Push for Hispanics Spawns Wave of ForeclosuresCalifornia Rep. Joe Baca has long pushed legislation he said would “open the doors to the American Dream” for first-time home buyers in his largely Hispanic district. For many of them, those doors have slammed shut, quickly and painfully. Mortgage lenders flooded Mr. Baca’s San Bernardino, Calif., district with loans that often didn’t require down payments, solid credit ratings or documentation of employment. Now, many of the Hispanics who became homeowners find themselves mired in the national housing mess. Nearly 9,200 families in his district have lost their homes to foreclosure. January 5, 2009
Appleton Students Build Their Skills on HomesMitchell Heath plans to report to Marine Corps boot camp Aug. 24. Sam Huolihan heads for college just days later. The two 18-year-old high school seniors have one thing in common. They are among 20 high school students from Appleton working to make a small but permanent dent in the Fox Cities’ affordable housing crisis. The students each work 10 hours a week building a single-story, handicapped-accessible home on Settlers Court in a partnership between the Appleton Area School District and the Appleton Housing Authority. “We have more than 1,200 families on our waiting list for affordable housing. The students’ work is crucial to making this home happen,” said Kathy Groat, vice chairwoman of the Appleton Housing Authority. January 5, 2009
Katrina Cottage Occupants Face New DisplacementThousands of cottages housing hurricane victims on the Mississippi Gulf Coast will be vacated next month, even though many of their occupants aren’t ready to move and may have no place to go if forced out. The U.S. Federal Emergency Management Agency distributed the one-, two- and three-bedroom structures to temporarily house displaced victims of Hurricane Katrina in 2005. There are still 2,300 occupied cottages in Mississippi, said Mike Womack, director of the Mississippi Emergency Management Agency. Many of the cottages sit on residents’ lots while they rebuild wrecked homes, he said. December 31, 2008
Judge Rejects Class-action Status in Trailer SuitsA federal judge on Monday refused to grant class-action status to lawsuits claiming that thousands of Gulf Coast hurricane victims were exposed to potentially toxic fumes while living in government-issued trailers. U.S. District Judge Kurt Engelhardt ruled that a batch of lawsuits on behalf of hundreds of plaintiffs against the federal government and several trailer manufacturers can’t be handled as a class action because each person’s claim is unique and must be examined individually. December 31, 2008
Housing Swaps Gaining Popularity in Slow MarketLinda and Peter Gatchell’s dream was simple. After years of saving, the Deerfield Township, Ohio, couple was ready to move from their suburban cul-de-sac to a 5-acre spread in Morrow, Ohio. So in June they placed their three-bedroom home on the market for $175,000. Then they waited. And waited. And waited. “I thought it would be really easy to sell my house because of the price and the location. Boy was I wrong,” Linda Gatchell, 49, said. “I had this big old plan, and now it’s crumbling before me.” December 31, 2008
Mortgage Rates Near Record Low Keep Demand at 5-year HighDemand for mortgage applications was unchanged during the Christmas holiday week, holding at the highest levels in more than five years with loan rates near record lows, an industry group said Wednesday. Borrowing costs have tumbled more than 1-1/2 percentage points from summer peaks and are widely expected to slide further as the government steps in to stabilize the worst housing market since the Great Depression. December 31, 2008
Mortgage Rates at 37-year Low: Average 5.19% for 30 YearsMortgage rates are falling to levels unseen since the 1960s, driving a surge in home refinancings among credible borrowers. The government’s efforts to aid the mortgage market have driven rates to near 50-year lows, says Keith Gumbinger, vice president of financial market researcher HSH Associates. Refinancings have tripled in the past month as a result, he says. December 22, 2008
Most Levee Repairs LaggingCommunities nationwide have repaired fewer than half of the 122 levees identified by the government almost two years ago as too poorly maintained to be reliable in major floods, according to Army Corps of Engineers data. State and local governments were given a year to fix levees cited by the corps for “unacceptable” maintenance deficiencies in a February 2007 review that was part of a post-Hurricane Katrina crackdown. Only 45 have had necessary repairs, according to data provided in response to a USA TODAY request. The remaining unrepaired levees are spread across 18 states and Puerto Rico — most in California and Washington. December 22, 2008
Views Diverge on How To Recast Fannie, FreddiePolicymakers are looking to revamp the nation’s home loan system next year after the collapse of U.S. housing and mortgage markets spurred the current economic crisis. Under one possible approach, Fannie Mae and Freddie Mac, the federally run companies that control half of the nation’s $11 trillion mortgage market, would disappear, leaving lending primarily to private banks. Taxpayers would no longer be on the line for subsidizing home loans. But analysts say it could become much harder to get a mortgage — at least one with a relatively low interest rate and a 30-year term. December 22, 2008
Get Mortgage Relief at the Yellow Light Rather Than RedHere’s some good news for homeowners facing tough financial times: You no longer have to miss two to three months of payments before your mortgage company can modify the loan terms you can no longer afford. Starting immediately, Fannie Mae, the mortgage giant that has an estimated 18 million home loans in its portfolio or in mortgage bond pools it guarantees, will allow borrowers who face imminent difficulties to request “early workout” loan alterations, even if they have never been late. December 22, 2008
In Downturn, Build Up Stock of Affordable Rental HousingIf ever the nation needed to change public policy related to affordable housing production, it is now. Decent rental housing for workers with incomes in the bottom third of the economic pyramid has been in short supply for decades. Today, with tens of millions of families unable to afford homeownership, the need to increase rental housing supply is even more acute. Like infrastructure investment, renewed federal investment in affordable rental housing yields economic and environmental benefits, in addition to being socially equitable and providing dwellings for those with limited means. December 22, 2008
FDIC’s Loan-Modification Plan Falls ShortI admire the Federal Deposit Insurance Corp., under the leadership of Sheila C. Bair, for taking the lead in attacking the source of the financial crisis: the vicious cycle of declining home prices and foreclosures. I share FDIC’s view that the way to break that cycle is to modify mortgage contracts in ways that enable borrowers in distress to return to good standing and stay there — and to do enough of them to make a difference. December 22, 2008
Bare Fridge Door? Blame the Housing Slump.Anthony Sanzo Jr. doesn’t need any statistics to tell him that a slumping housing market has forced thousands of real estate agents to look for a new line of work. He doesn’t need to know that membership in the National Association of Realtors has dropped by more than 100,000 agents in two years. Sanzo can tell all this just by looking at the number of promotional refrigerator magnets, calculators and calendars that his company, Sanzo Specialties of Endicott, N.Y., has sold in the past year. December 22, 2008
White House Philosophy Stoked Mortgage BonfireEight years after arriving in Washington vowing to spread the dream of homeownership, Mr. Bush is leaving office, as he himself said recently, “faced with the prospect of a global meltdown” with roots in the housing sector he so ardently championed. There are plenty of culprits, like lenders who peddled easy credit, consumers who took on mortgages they could not afford and Wall Street chieftains who loaded up on mortgage-backed securities without regard to the risk. December 22, 2008
Still Home for the Holidays, When Evictions HaltIt may be one of the longest-running, least-known and most mysterious acts of gift-giving in New York City. On Monday, adhering to a tradition they have honored for decades, the people who evict New Yorkers from their apartments begin a two-week holiday. The marshals, as they are known, have been taking the year-end break for so long that no one knows precisely when, or why, the custom began. Sanctioned by neither the New York City Marshals Association, which represents the city’s 45 marshals, nor the city’s Department of Investigation, which regulates them, the practice is so informal that the exact dates shift every year and judges and lawyers often learn of them by word of mouth. December 22, 2008
One Misstep, and a Dream Is DeferredNo one stopped to help, she said, but someone called a police officer or transit worker, who called an ambulance. She had torn the ligaments in her left shoulder, pulled a muscle in her chest, and eventually developed hernias in her neck and lower back, she said. She went on disability for six months, but the doctor did not clear her to go back to work, so she had to leave her job. She covered most of her rent with a federal housing subsidy. But when the rent went up and her share increased, she realized that she could not pay the rent anymore. One day, an eviction notice arrived at her door. December 22, 2008
Families on Verge of Foreclosure Eviction Host Christmas Dinners With U.S. RepresentativesFamilies facing foreclosure in Hyattsville, MD, Brooklyn, NY, Bridgeport, CT, Ocoee, FL and Houston, TX, will host early Christmas Dinners for their U.S. Representatives to discuss the impact of the economic downturn on their families and friends. Each of these families is on the verge of being evicted, and only the assistance of ACORN Housing Corporation and the Association of Community Organizations for Reform Now (ACORN) has helped keep these families in their homes. Congressmembers will break bread with the family and discuss the work that they and the incoming administration will do to rectify these problems in the mortgage system and regulate future lending. December 22, 2008
Faces of Foreclosure in PittsburghThe housing crisis is affecting thousands of working class and poor families in Pittsburgh, Pennsylvania. There are 400 to 500 home foreclosures each month in Allegheny County, where Pittsburgh is located. Last year, there were more than 4,000 foreclosures, and this year is on pace to reach a record 5,000 homes, twice the 2002 figure. December 22, 2008
Owners Find Themselves Trapped UnderwaterMichael and Cynthia Russell wanted to move to New York City, where they both work. Jobs are more plentiful there than in their town of Poughkeepsie, N.Y. But like millions of Americans today, the couple are stuck. They owe about $80,000 more on the home they bought in 2004 than it is now worth. So instead of selling their home, Cynthia is going to school to become a registered nurse and Michael is working from home. December 19, 2008
Mortgage Rates at 37-year Low: Average 5.19% for 30 yearsMortgage rates are falling to levels unseen since the 1960s, driving a surge in home refinancings among credible borrowers. The government’s efforts to aid the mortgage market have driven rates to near 50-year lows, says Keith Gumbinger, vice president of financial market researcher HSH Associates. Refinancings have tripled in the past month as a result, he says. “This is an historic opportunity,” Gumbinger says. “This is the program for borrowers not in trouble.” December 19, 2008
Tax Break May Have Helped Cause Housing BubbleRyan J. Wampler had never made much money selling his own homes. Starting in 1999, however, he began to do very well. Three times in eight years, Mr. Wampler — himself a home builder and developer — sold his home in the Phoenix area, always for a nice profit. With prices in Phoenix soaring, he made almost $700,000 on the three sales. And thanks to a tax break proposed by President Bill Clinton and approved by Congress in 1997, he did not have to pay tax on most of that profit. It was a break that had not been available to generations of Americans before him. The benefits also did not apply to other investments, be they stocks, bonds or stakes in a small business. Those gains were all taxed at rates of up to 20 percent. December 19, 2008
‘Angel’ of Foreclosure Defense Bedevils LendersTalking about what she sees as one of America’s darkest hours, attorney April Charney uses some pretty colorful language. “You ever look into a place where snakes hang out?” she asks in the middle of a conversation about the loan officers, appraisers, investment bankers, attorneys and others that she believes are responsible for the nation’s worsening financial crisis. “That’s what I see here. They’re writhing and oozing and morphing into creepy stuff with slime all over it.” December 19, 2008
Grim Choice: Walking Away from a MortgageDiane Shackle found it gut-wrenching to walk away from a mortgage she took out in times that were better for both her and the U.S. economy. But the reality was undeniable: While she was keeping up with the monthly payments, she said she could no longer afford to buy food for herself or even kitty litter for her two cats. So the 44-year-old cocktail waitress walked away from her two-bedroom condo in southern California last July, turning her back on a debt of nearly $200,000. December 19, 2008
Kuhio Housing Residents SueOn top of being in a wheelchair and having respiratory problems, Lewers Faletogo has had to deal with sewage leaking into his apartment from the upstairs toilet, frequent garbage chute fires that char the already-corroded metal, and no hot water for 18 hours a day. After years of putting up with the living conditions at Kuhio Park Terrace and Kuhio Homes, Faletogo has teamed up with other residents and a group of lawyers to sue the state. A pair of lawsuits in federal and state court accuse the state of letting the housing projects fall into disrepair. December 19, 2008
Grounds for Launching Foreclosure are NumerousWurzelbacher rose to the public consciousness in October when he asked President-elect Barack Obama if he believed in the American dream. “Joe the Plumber” then went on to complain that he was being overly taxed because he was living out that dream. Turns out that Wurzelbacher could lose the part of the dream that deals with owning a home because he owes the state of Ohio almost $1,200 in back income taxes. If he doesn’t pay, the state could place a lien on his residence and eventually force the sale of that property to recover its money. December 19, 2008
Lynch Meets with Obama Team in D.C.Attorney General Patrick C. Lynch yesterday became the state’s first Democratic official to meet with President-elect Barack Obama’s transition team in Washington, D.C. Lynch, who heads the National Association of Attorneys General, traveled to the nation’s capitol with several of his colleagues from around the country for a daylong sit-down with the transition group at the Department of Justice. The topic: How the federal government and state-level law enforcement leaders can collaborate on a national and local level to address issues such as predatory lending, mortgage foreclosures, cyber crimes and greenhouse gas emissions. December 19, 2008
Refinancing Drives Mortgage Applications Up as Rates FallMortgage applications climbed last week, driven by refinancings, as borrowing costs fell, the Mortgage Bankers Assocation said Wednesday. Homeowners’ push to cut expenses by refinancing will intensify after the Federal Reserve aggressively cut short-term interest rates to near zero Tuesday. That sliced the yield on 10-year Treasury notes, a peg for fixed mortgage rates, to its lowest level since 1951. December 18, 2008
HUD Workers Throws a Pretty “Cool” Holiday PartyIf Barack Obama really wants to “make government cool again,” as he said during the campaign, he might want to check out the Department of Housing and Urban Development. About 600 HUD employees had a pretty cool time yesterday during a holiday party at the nearby L’Enfant Plaza Hotel. It was sponsored by Local 476 of the American Federation of Government Employees. December 18, 2008
Up on the Roof, New Jobs in Solar PowerMove over, Joe the Plumber. Spencer the Solar Panel Installer is here. In this case, it’s Spencer Bockus, who created solar-powered fans and other contraptions for science fairs as a fifth grader in California. Today, at 22, he is on customers’ roofs, measuring where the shade will hit and hooking up photovoltaic arrays, better known as solar panels, to convert the sun’s energy into electricity. “Sometimes I’m 50 feet up on a steep roof and it’s so hot the tar is melting onto the bottoms of my sneakers,” he said, “but I’m excited because I’m helping the environment.” Even in the recession, Mr. Bockus has been putting in plenty of overtime for his company, Akeena Solar, which is based in Los Gatos, Calif., and has offices elsewhere in California and in Colorado and the Northeast. December 18, 2008
Madoff Scandal Shaking Real Estate IndustryAlmost no segment of New York City’s real estate industry was spared in the Madoff scandal, which may be history’s largest Ponzi scheme: commercial brokers large and small, little-known developers and prominent families like the Wilpons and Rechlers all lost money to Bernard L. Madoff, industry executives say. The outsize impact on the industry may have resulted largely because Mr. Madoff (pronounced MAY-doff) managed his funds much the way that real estate leaders have operated successfully for decades: He provided little information and demanded a lot of trust. December 18, 2008
PRESTON ANNOUNCES $26.5 MILLION IN ‘SWEAT EQUITY GRANTS’U.S. Housing and Urban Development Secretary Steve Preston today awarded $26.5 million in “sweat equity grants” to produce at least 1,540 homes for lower income first-time homebuyers. Three non-profit housing providers will use HUD’s grants to construct or rehabilitate homes along with contributed labor from the homebuyers and volunteers. December 18, 2008
When Foreclosure Limbo Becomes a LifestyleShe may live in an epicenter of the U.S. housing crisis, but Vickie Lewis is far from any stereotype conjured up in coverage of the record number of Americans whose homes are in foreclosure. She is not a real estate speculator, house flipper or rental-property investor. She did not lie about her income or buy more house than she could afford. She was not lured into an adjustable mortgage with a teaser rate that later went through the roof. She has never tapped her equity with a second mortgage or a refi. She even has about 20 percent equity left in her home. December 18, 2008
MI: From the State CapitolWayne County has been hard hit by the foreclosure crisis, with one in every 184 homes going into foreclosure in October. Under the plan passed by the House, all rental agreements in Michigan would contain a provision requiring landlords to inform tenants at least 30 days before the property is foreclosed on. This problem was highlighted last July in Grand Rapids, where the owner of an apartment complex received notice in January that his property was being foreclosed upon, and failed to notify his tenants until July 7 Ð nine days before they were forced to vacate their homes. Landlords would also be required to notify tenants in writing within 10 days of becoming 90 days late on the property’s mortgage payment. The plan now heads to the Senate. December 18, 2008
The Vanishing Middle Class, Part 3: Just Getting By On $150KThe collapse of the housing market has left a trail of economic ruin and financial insecurity for millions of working families. Among those left in rocking in its destructive wake are Ryan and Kim Payne of Sherborn, Mass., an upscale suburb about 25 miles west of Boston. The Payne’s home provides a poignant snapshot of middle class life in America at the start of the 21st century. At first glance, they look like a young family enjoying a generous slice of the American dream. December 18, 2008
Ohio’s Largest County Aims to Fight ForeclosuresOhio’s largest county is about to embark on an experiment in which government becomes the owner of foreclosed and abandoned properties, fixes them up and turns them back over to private owners.The Ohio House on Wednesday voted 88-6 to enable Cuyahoga County, home to foreclosure-ravaged Cleveland, to create a locally financed land bank to improve a glut of decaying neighborhoods. The bill is now headed to the Senate, where it was expected to pass easily on Thursday. December 18, 2008
Fewer US Adults Would Buy Foreclosed Homes-surveyFewer U.S. adults would consider buying a foreclosed home now than six months ago, and concerns about foreclosures’ risks have risen, according to a survey from real estate search engine Trulia.com and research firm RealtyTrac. Forty-seven percent of U.S. adults would consider buying a foreclosed home now, compared with 54 percent six months ago, the survey said. December 18, 2008
Homes, Growth Goals CollideFew issues in Howard County are as complicated and contentious as affordable-housing policy and growth-management controls. A new County Council bill appears to renew a clash between the two.The tussle erupted at a council public hearing Monday night, but in some ways it echoed past debates.Until now, local lawmakers have been reluctant to relax growth-management laws to allow county-required affordable housing to be built faster. December 18, 2008
Foreclosure Assistance Available Across Md.Facing foreclosure? HomeFree-USA is looking for you. The nonprofit agency, which has offices in Hyattsville and Gaithersburg, is offering help to 1,000 financially troubled homeowners in the Washington region before the end of the year. “Homeowners need help, but they don’t know there are congressionally funded nonprofits that can help them, that will advocate for them to get the best deal from their lender and will hold their hand throughout the modification process,” said Marcia Griffin, president of HomeFree-USA. December 18, 2008
YOUR VIEW: Guidance for Distressed Homeowners: Navigating the Loan Modification ProcessMassachusetts continues to experience a dramatic surge in foreclosures, often due to deceitful and predatory lending practices. Many foreclosures have resulted from loan practices and products that were destined to fail because lenders failed to reasonably assess the borrower’s ability to repay before lending money. In addition to bringing litigation, our office has attempted to combat these unnecessary foreclosures by urging lenders to voluntarily restructure, or “modify,” loans. Loan modifications can make unsustainable loans affordable by decreasing the required monthly payment December 18, 2008
FHFA ANNOUNCES IMPLEMENTATION PLANS FOR STREAMLINED LOAN MODIFICATION PROGRAMRepresentatives of the Federal Housing Finance Agency, Fannie Mae, Freddie Mac and Hope Now announced today that the Streamlined Modification Program (SMP) was launched December 15th as planned. The SMP, which was developed by FHFA in conjunction with Fannie Mae, Freddie Mac, Hope Now and mortgage servicers, is already making progress in preventing foreclosures. December 18, 2008
Declining Energy Prices Extend to ElectricityAfter years of steep increases, costs to build power plants and transmission lines have started to fall, promising to temper electricity rate increases for consumers, according to a report out Wednesday.The development is notable because the nation is poised to build the biggest wave of plants in a generation to meet rising electricity demand, and capital costs make up 50% of utility rates, says Larry Makovich, a managing director of Cambridge Energy Research Associates. CERA conducted the study. December 17, 2008
Changing Credit Card Terms Squeeze ConsumersAggressive rate increases on credit cards are threatening to push struggling consumers into financial ruin, accelerating home foreclosures and the nation’s descent into recession. The growing problem is reflected in cases such as that of Dennis Spaulding, of Corona, Calif. He bought two last-minute plane tickets for his father’s funeral in 2006, a purchase that increased the amount of credit he was using and made him appear riskier to banks. The result: Banks raised the interest rates on four of his credit cards — to 24% and higher — doubling his monthly payments to about $2,000. December 17, 2008
Worries Amid Foreclosure WaveA rising number of U.S. adults are worried about the potential negative aspects to purchasing a foreclosed home, according to survey results released Tuesday by online real estate company Trulia and foreclosure data provider RealtyTrac. Both companies also compiled a series of statistics on foreclosure properties to accompany the survey results. And about 47 percent of the online survey’s 2,033 respondents said they would consider purchasing a foreclosed home — down from 54 percent in an April survey. The latest survey was conducted by Harris Interactive from Nov. 11-13 among U.S. adults 18 and up. December 17, 2008
Federal Bank Bailout isn’t Trickling Down, Panel ToldReporting from Las Vegas — In this hard-hit corner of the nation’s mortgage meltdown and credit crisis, it’s hard to find anybody who sees evidence that the Treasury Department’s $700-billion rescue plan is working after two months. In the first public hearing of the Congressional Oversight Panel — a three-member board mandated to keep close watch on the bailout program enacted in October — economists, local bankers, beleaguered homeowners and government officials said here Tuesday that the billions of dollars paid out by Washington to the banking industry were not filtering down and that Nevada’s desperate condition was growing worse. December 17, 2008
Affordable Housing: A Top Priority in YonkersAs the nation confronts the most challenging economic climate in recent history, Yonkers remains steadfast in its commitment to produce affordable housing, to rebuild entire neighborhoods, and to make a positive difference in our community. With Monday’s official opening of the Croton Heights Apartments, this is a good time to recognize that affordable housing has a strong multiplier effect, benefitting our city’s hard working individual families and the broader community. The creation of affordable housing provides jobs as well as shelter, encouraging stability as well as new investments. December 17, 2008
Housing Discrimination Cases Increasing in EBRForty years after the federal Fair Housing Act was signed into law, Louisiana residents are still fighting housing discrimination and Baton Rouge is becoming a new battleground, officials from state agencies and nonprofits said. After two hurricanes in 2005, the Greater New Orleans Fair Housing Action Center was inundated with complaints as families who lost everything tried to find places to live in other parts of the state, said Kate Scott, the organization’s coordinator of outreach and development. December 17, 2008
Federal Bank Bailout Isn’t Trickling Down, Panel ToldReporting from Las Vegas — In this hard-hit corner of the nation’s mortgage meltdown and credit crisis, it’s hard to find anybody who sees evidence that the Treasury Department’s $700-billion rescue plan is working after two months. In the first public hearing of the Congressional Oversight Panel — a three-member board mandated to keep close watch on the bailout program enacted in October — economists, local bankers, beleaguered homeowners and government officials said here Tuesday that the billions of dollars paid out by Washington to the banking industry were not filtering down and that Nevada’s desperate condition was growing worse. December 17, 2008
Obama Works to Overhaul TARPThe incoming Obama administration is considering a series of initiatives to combat the financial crisis, including some efforts to help banks that the Bush administration has tried with limited success.Among the plans being discussed are injecting more capital into banks, creating a market for illiquid assets clogging the books of financial institutions and helping borrowers who are having trouble making their mortgage payments. December 17, 2008
Wood Street Residents to Keep Homes Despite ForeclosureAllegheny County Executive Dan Onorato promised yesterday that 260 low-income people who live at Wood Street Commons will not lose their rooms because of a foreclosure filing by PNC Bank. “This is just a financial reorganization. The people will get to stay in that building” at 304 Wood St., Mr. Onorato said. Allegheny County Judge Michael Della Vecchia will hold a hearing at 1:30 p.m. Friday on PNC’s attempt to replace Tom Mistick, a part-owner of the property, with a trustee or receiver who would oversee the building. Mr. Mistick will have a chance to persuade the judge that he should remain. PNC alleges that he is about $204,000 behind on mortgage payments. December 17, 2008
Who’s to Blame for Economy?Responsibility for the financial meltdown is so widespread that there’s plenty of culpability to go around. But as a holiday season service, we offer these suggestions — on a scale of four lumps to one — of those most deserving of coal in their stockings. December 17, 2008