Legal and Regulatory - St Louis Real Estate News

Former Employee of Florida Property Management Company Pleads Guilty to Wire Fraud

By News Desk, on December 10th, 2010

A former residential sales manager at a Florida property management company pleaded guilty to wire fraud in connection with housing repair contracts for the U.S. Department of Veterans Affairs (VA), the Department of Justice announced this week.

Benjamin K. Graves, formerly a residential sales manager at West Palm Beach, Fla.-based Ocwen Loan Servicing LLC, pleaded guilty today in U.S. District Court in Orlando, Fla., to wire fraud. According to the one-count felony charge filed on Nov. 12, 2010, in the Middle District of Florida, Ocwen managed foreclosed properties under contract with the VA, which guaranteed qualifying residential mortgages for Continue Reading →

Justice Department Reaches Settlement with Prime Lending to Resolve Allegations of Lending Discrimination

By News Desk, on December 9th, 2010

Settlement Provides $2 Million to African-American Borrowers Who Paid Higher Interest Rates

PrimeLending, a national mortgage lender with 168 offices in 32 states at the end of 2009, has agreed to pay $2 million to resolve allegations that it engaged in a pattern or practice of discrimination against African-American borrowers between 2006 and 2009.

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FTC Issues Final Rule Banning Upfront Fees From Mortgage Relief Companies

By News Desk, on November 29th, 2010

Homeowners will be protected by a new Federal Trade Commission rule that bans providers of mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they decide is acceptable.

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Mortgage Fraud Case Activity Drops

By Dennis Norman, on November 29th, 2010

After surging in the second quarter, mortgage fraud case activity sank in the third quarter based on the Third Quarter 2010 Mortgage Fraud Index from Mortgage Daily. The Mortgage Fraud Index came in at 1007 during the third quarter – falling 41 percent from the second quarter. The index hasn’t been this low since the first quarter 2008, when it was just 713.

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Consumer Organization to Congress: Lenders ‘Lawless Attitude’ pushes homeowners into Foreclosure

By News Desk, on November 18th, 2010

The “robo-signing” scandal that has exposed illegal practices by servicers of mortgage loans has also showed the urgent need to reform a broken system that is plagued with abuses, lacks adequate resources and has pushed countless homeowners toward foreclosure.

That’s the message that Diane Thompson, a lawyer for the National Consumer Law Center, delivered in testimony earlier this week to the Senate Committee on Banking, Housing and Urban Affairs.

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Initial report shows mortgage delinquencies leveled off in October; foreclosure inventory increased

By Dennis Norman, on November 17th, 2010

A “first-look” report issued by Lender Processing Services, one of the countries largest loan servicers and aggregators of loan performance data, is somewhat encouraging as it shows the U.S. mortgage delinquency rate (not including foreclosures) for October was 9.29 percent and, while that is a terribly high rate, it is just barely higher than Septembers’ rate of 9.27 percent. Mortgage delinquencies are a “leading indicator” of foreclosures, so perhaps that means we are getting close to the foreclosure activity leveling off.

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Mortgage Bankers Cautions Against Cutting Back Mortgage Interest Deduction

By Dennis Norman, on November 15th, 2010

Last week the co-chairs of the National Commission on Fiscal Responsibility and Reform (the group that is supposed to figure out how to rescue our country out of the financial quicksand it’s in) issued a draft proposal of a plan the committee says “will make America better off tomorrow than it is today”.

In addition to such enlightening statements such as “America cannot be great if we go broke” the report outlines a plan that makes five basic recommendations:

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Fed Reserve expects over 4 million new foreclosures in the next two years

By Dennis Norman, on November 12th, 2010

Speaking at the National Consumer Law Center’s Consumer Rights Litigation Conference in Boston, Federal Reserve Governor Sarah Bloom Raskin delivered some sobering news about the Fed Reserve’s expectations for the housing market.

Raskin discussed how foreclosures on residential properties soared from about one million in 2006, the “peak of the boom”, to 2.8 million last year. There were 1.2 million foreclosure filings in just the first half of 2010 and, right now, nearly five million loans are somewhere in the foreclosure process or are 90 days or more past due.

Raskin said “our projections remain very grim for Continue Reading →

Tax Credits Help Homeowners Winterize Their Homes; IRS says check credit certification first

By Dennis Norman, on November 9th, 2010

Time is running out to take advantage of two tax credit programs that are a result of the expanded recovery act: The “Nonbusiness Energy Property Credit” and “Residential Energy Efficient Property Credit” programs both offer homeowners the opportunity to receive tax credits for energy-efficient upgrades, but the programs end this year.

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REALTORS® Support Proposal to End Private Transfer Fees

By News Desk, on November 8th, 2010

The National Association of Realtors® announced that it “strongly supports” the proposed guidance from the Federal Housing Finance Agency to prevent government-sponsored enterprises Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks from investing in mortgages encumbered by private transfer fee covenants.

In a letter sent to the Federal Housing Finance Agency (FHFA), NAR reiterated its opposition to these covenants, which developers often attach to a property to require payment of fees back to that developer each time the property is resold. These covenanted mandates are often extremely difficult to reverse once in place, and in many Continue Reading →

Missouri Voters Protect Their Homes from Transfer Taxes

By Dennis Norman, on November 3rd, 2010

Dennis Norman

In a loud and unified voice, 83.7 percent of the voters yesterday voted in favor of Missouri Constitutional Amendment 3, the ban on future transfer taxes or fees on real estate in Missouri. In a huge victory for Missouri property owners, this effort, spearheaded, and funded in a large part, by the Missouri Association of REALTORS, insures that Missouri remains free from this tax that many, including yours truly, consider a form of double taxation.

Missouri is one of only 13 states in the U.S. that do not have a transfer tax imposed at the state Continue Reading →

Michigan couple awarded $600,000 judgment against Worth Township; Proof that you can fight city hall

By Dennis Norman, on November 2nd, 2010

Dennis Norman

Who says you can’t fight City Hall and win?

Well, it wasn’t easy, nor quick, but George and Margaret Paeth of the Worth Township in Michigan have”beat” City Hall and been awarded $600,000 by a Federal Court Judge. According to a press release by their attorney’s, Daniel P. Dalton and Pauline J. Pensler, this judgment is “one of the largest procedural due process and First Amendment retaliation verdicts in the nation, and the largest for the Eastern District of Michigan’s federal courts.”

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Fannie Mae Releases Appraiser Independence Requirements

By Dennis Norman, on October 29th, 2010

Dennis Norman

Now that the controversial (to put it mildly) Home Valuation Code of Conduct (HVCC) has been put to rest as part of The Dodd-Frank Wall Street Reform, Fannie Mae has released their “Appraiser Independence Requirements“. Fannie Mae says the purpose of these requirements is to:

Protect the independence of appraisers and the integrity of their appraisals. Extend these important protections for home buyers, mortgage investors, and the housing market. Reinforce Fannie Mae’s commitment to responsible lending and mortgage quality standards. Continue Reading →

Scorecard on Obama’s Housing Recovery Plans

By Dennis Norman, on October 25th, 2010

Dennis Norman

The U.S. Department of the Treasury and the Department of Housing and Urban Development today released their “October 2010 Scorecard” on the “Obama Administration’s Efforts to Stabilize the Housing Market”.

The scorecard points out the success of “The President’s housing market recovery efforts” but does point out that “data in the scorecard also show that the recovery in the housing market continues to remain fragile.”

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Justice Department Obtains $120,000 Settlement in Housing Discrimination Lawsuit Against Indiana Condominium Association

By News Desk, on October 24th, 2010

The Justice Department announced this week that a Munster, Ind., condominium association and its three member board of directors have agreed to pay $120,000 to resolve allegations that they refused to approve the sale of a condominium to an African-American couple because of their race and because they had children. The settlement must still be approved by U.S. Senior District Judge Philip P. Simon.

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Mortgage Bankers urge Feds not to ban all private transfer fees

By Dennis Norman, on October 15th, 2010

Dennis Norman

In a letter to the Federal Housing Finance Agency, John A. Courson, the President and Chief Executive Officer of the Mortgage Bankers Association (MBA) said that the MBA “opposes the practice of private third parties, such as developers, builders, licensing companies and real estate brokers, imposing private transfer fee covenants on residential real estate for the purpose of extracting future income.” However, in his letter Mr. Courson goes on to say that the “MBA is concerned thatencumbering housing transactions with these types of PTFs will impede the marketability and affect the valuation of properties and thus Continue Reading →

What is the difference between the interest rate and the A.P.R.?; St Louis Mortgage Watch

By Robert Fishel, on October 13th, 2010

You’ll see an interest rate and an Annual Percentage Rate (A.P.R.) for each mortgage loan you see advertised. The easy answer to “why” is that federal law requires the lender to tell you both.

The A.P.R. is a tool for comparing different loans, which will include different interest rates but also different points and other terms. The A.P.R. is designed to represent the “true cost of a loan” to the borrower, expressed in the form of a yearly rate. This way, lenders can’t “hide” fees and upfront costs behind low advertised rates.

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Wall Street Reform Emergency Homeowners Loan Program (EHLP) Update

By Dennis Norman, on October 12th, 2010

Dennis Norman

The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama in July,called for HUD to administer and oversee a $1 billion Emergency Homeowners Loan Program (EHLP), to provide assistance, for up to 24 months, to homeowners who are at risk of foreclosure on their home as a result of a substantial reduction in income due to “involuntary unemployment, underemployment, or a medical condition”. This program will be available to borrowers in 32 states, those states that did not receive other funding under the Treasury Departments “Hardest Hit Housing Fund” program.

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REALTORS Rally to promote a YES vote on Amendment 3

By Dennis Norman, on October 1st, 2010

Dennis Norman

I just returned from the Lake of the Ozarks after attending business meetings for the Missouri Association of REALTORS (MAR) which included an update on AMENDMENT 3, the effort backed by MAR to prevent double taxation on Real Estate in Missouri. The “update” was more like a football rally, complete with “cheerleaders” and all and, while the fanfare was a little over the top for me, I was thrilled to see so much enthusiasm by REALTORS from across the state over this issue.

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FHA Changes Mortgage Insurance Rates-less up front cost but higher payments; St Louis Mortgage Watch

By Robert Fishel, on September 15th, 2010

New regulations signed into law by the President allow HUD to increase the amount of premiums charged for FHA single family housing mortgage insurance programs, however lower that actual up-front cost paid by borrowers.

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H.R. 4173; The Dodd-Frank Wall Street Reform and what it means to appraisers

By Frank Gregoire, on September 13th, 2010

Frank Gregoire

My world was much different in the late 1980’s. Although I was in the real estate business and the real estate appraisal profession for a decade, political activity did not interest me. Here at Gregoire & Gregoire, we had already been using a networked mini-computer for appraisal reporting since 1983, but I did not have an email account or address. I did not surf the web. Our clients were savings and loan associations, FHA lenders, loan discount companies (purchasers of privately originated first and second mortgages), real estate brokers, and several lawyers. All our research was Continue Reading →

Attorney Charged in Property Mortgage Scam

By News Desk, on September 12th, 2010

A Massachusetts attorney, Michael R. Anderson, 41, of Framingham, was charged last week in federal court with wire fraud, bank fraud, and money laundering in connection with a multi-year, multi-property mortgage fraud scheme in Dorchester and Roxbury. United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of Internal Revenue Service, Criminal Investigation – Boston Field Division, announced today that the defendant was charged in an Information with 16 counts of wire fraud, nine counts of bank fraud, and two counts Continue Reading →

North Carolina Real Estate Speculator Pleads Guilty to Bid Rigging in Real Estate Foreclosure Auctions

By News Desk, on September 11th, 2010

A Raleigh, N.C., real estate speculator pleaded guilty to conspiring to rig bids for public real estate foreclosure auctions held in multiple counties in eastern North Carolina, the Department of Justice announced today.

Christopher J. Deans pleaded guilty yesterday in U.S. District Court in Greenville, N.C., for participating in a conspiracy to rig bids during the real estate foreclosure auction process in eastern North Carolina from at least as early as April 2003 until at least April 2005. The primary purpose of the conspiracy was to suppress and eliminate competitive bidding on foreclosed properties and obtain selected real estate Continue Reading →

New Rule Proposed to Protect Seniors Obtaining Reverse Mortgages

By Dennis Norman, on September 3rd, 2010

Dennis Norman

Reverse mortgages have become increasingly popular over the past few years with seniors that find themselves with a large amount of equity in their home, but short on cash, or struggling to pay for the upkeep of the home, property taxes, insurance or other living expenses. A reverse mortgage allows people in that situation to pull the equity from their home in a lump sum, monthly payments or just as they need it.

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Carnahan files appeal to stop effort to prevent double taxation in Missouri

By Dennis Norman, on September 1st, 2010

Dennis Norman

UPDATE 9/03/2010 -Good News! I’m waiting for confirmation from the Secretary of State’s office, but I have been told that the Secretary of State has decided to drop the appeal and allow this issue to move forward to the voters in November! A huge victory for Missouri property owners! – end of update.

Yesterday I wrote about a Cole County Judge ruling against the Missouri Secretary of State and in favor a group working to prevent double taxation, by means of a transfer tax or fee on real estate, in Missouri clearing the way to take Continue Reading →

Court rules in favor of group working to prevent transfer tax

By Dennis Norman, on August 31st, 2010

Dennis Norman

Earlier this month I wrote about a set-back in an effort to give Missourian’s a an opportunity in November to prevent the possibility of double taxation by voting to pass a constitutional amendment prohibiting transfer taxes or fees on the transfer of real estate. The effort, which had the full support and backing of the Missouri Association of REALTORS, hit a road block when the Secretary of State’s office did not certify that enough signatures were obtained to put the issue on the ballot in November.

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New Rules for Mortgage Transfers

By Dennis Norman, on August 27th, 2010

Dennis Norman

Home mortgages are often sold or assigned, sometimes even right after the origination of the loan and, as a result, borrowers find themselves not knowing who their current lender is or how to contact their lender. This issue was addressed back in May 2009, as part of the Helping Families Save Their Homes Act, lenders that purchased home mortgages were required to provide disclosures in writing to the borrower within 30 days.

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7 Key Questions To Ask Your Lender When Getting a Mortgage

By Dennis Norman, on August 26th, 2010

Dennis Norman

Before you decide on a mortgage make sure you fully understand all the terms of the loan and make sure you know what you are getting yourself in for. Some home mortgages have features that may be risky and make it difficult for you to make your payments in the future. Be sure that you understand the loan terms, the risks and all the costs of the loan you are getting. To help you, below are 7 key questions to ask your lender about your mortgage BEFORE you accept a loan.

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New Rules Announced to Protect Mortgage Borrowers

By Dennis Norman, on August 25th, 2010

Dennis Norman

Over the past couple of years lawsuits have been filed against several lenders over “yield spread premiums” that were paid by the lenders to mortgage brokers originating loans on their behalf. These suits brought a lot of attention to a common practice in the mortgage industry which was to compensate the companies (or loan officers) originating loans based upon the rate and points charged to the borrower. There have been numerous debates on the topic and I’m staying out of it, however, last week the Federal Reserve announced new rules that will go in effect on Continue Reading →

Help for unemployed homeowners facing foreclosure

By Dennis Norman, on August 24th, 2010

Dennis Norman

The U.S. Department of the Treasury has announced yet another new plan to help homeowners avoid foreclosure. This plan targets homeowners that are struggling with unemployment and offers two foreclosure-prevention programs to help them.

The first program will be through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (the Hardest Hit Fund). Through this program 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.

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