Tenants face losing water if owners don't pony up for bill | Local & Regional | KATU.com - Portland News, Sports, Traffic Weather and Breaking News - Portland, Oregon: Many people rent the town homes and pay their share of the water to landlords. Ultimately the bill is supposed to be paid by the homeowners association.
The owner of Leanette’s unit says she is paying her bills, but some other owners aren’t.
HOA members will not disclose who the deadbeat landlords are.
“I feel very disappointed about the situation happening over here,” said resident Jesus Amaro. “Some of us are paying our water bills and some are not.”
Saturday, July 14, 2012
Keller homeowners say they've been shut out of association despite new state law | Arlingt...
Keller homeowners say they've been shut out of association despite new state law | Arlingt...: KELLER -- The Hidden Lakes Homeowners Association "fired" most of its volunteers without warning and is barring residents from board meetings after the developer began taking an active role on the board, some residents say.
Those residents also complain that the developer is using HOA money to pay for landscaping services from a developer-owned company instead of seeking bids and that it is using association money to make repairs that are the developer's responsibility.
And that may all be legal despite a new state law reining in homeowners associations.
Those residents also complain that the developer is using HOA money to pay for landscaping services from a developer-owned company instead of seeking bids and that it is using association money to make repairs that are the developer's responsibility.
And that may all be legal despite a new state law reining in homeowners associations.
Don't buy investor-government scheme - SFGate
Don't buy investor-government scheme - SFGate: Mortgage Resolution Partners brass argue that the power of eminent domain is well established, as long as local governments can point to a solid public use - in this case, preventing foreclosures.
Cornell law Professor Robert Hockett agrees. In the infamous 2005 Kelo decision, the U.S. Supreme Court ruled that local governments could seize private property for other private entities if there is a public purpose. In that case, New London, Conn., took the waterfront home of Susette Kelo as part of a redevelopment project anchored around Pfizer Inc.
Dana Berliner, an attorney for the Institute of Justice, which represented Kelo, said she believes the California Supreme Court would overturn any law allowing governments to seize mortgages because "it's a scheme by one group of securities investors to steal a bunch of money from another group of securities investors."
But what if Berliner is wrong?
"In California, there'll be very little that (governments) can't do," she said. "It would mean that eminent domain can be used to take from one group of people and give to another group of people to make a profit."
-----------
This novel use of eminent domain (previously blogged here by the perfessor and myself) will certainly generate litigation testing its limits as well as legislation to bar it if ultimately employed. From a practical standpoint, it's far from clear local governments using their powers of condemnation to cram down overmortaged properties will really solve their fiscal woes. They have no control over the price of real estate and continued real estate deflation could undermine any perceived benefit.
There's a cynical adage that states, "privatize the gains, socialize the losses." This tactic is the epitome of that.
Cornell law Professor Robert Hockett agrees. In the infamous 2005 Kelo decision, the U.S. Supreme Court ruled that local governments could seize private property for other private entities if there is a public purpose. In that case, New London, Conn., took the waterfront home of Susette Kelo as part of a redevelopment project anchored around Pfizer Inc.
Dana Berliner, an attorney for the Institute of Justice, which represented Kelo, said she believes the California Supreme Court would overturn any law allowing governments to seize mortgages because "it's a scheme by one group of securities investors to steal a bunch of money from another group of securities investors."
But what if Berliner is wrong?
"In California, there'll be very little that (governments) can't do," she said. "It would mean that eminent domain can be used to take from one group of people and give to another group of people to make a profit."
-----------
This novel use of eminent domain (previously blogged here by the perfessor and myself) will certainly generate litigation testing its limits as well as legislation to bar it if ultimately employed. From a practical standpoint, it's far from clear local governments using their powers of condemnation to cram down overmortaged properties will really solve their fiscal woes. They have no control over the price of real estate and continued real estate deflation could undermine any perceived benefit.
There's a cynical adage that states, "privatize the gains, socialize the losses." This tactic is the epitome of that.
Friday, July 13, 2012
Tyler Berding: Ponzi Scheme?
Ponzi Scheme?
"So how is this similar to the plight of community associations? Simple. The developer of a project creates a reserve program based on the false assumption that most components of a building have an infinite service life and will never need repair or replacement. The early owners (investors) pay into the venture (community association budget) at lower than necessary assessment rates. That not only attracts buyers to the initial sales offering but also, in turn attracts future buyers. Eventually the investors who are the owners when the underfunding is discovered are stuck with not only their share of the bill, but also the shares of all of the prior owners who underpaid their assessments for so many years and then sold off their interests. Not exactly a “Ponzi” scheme, but close."
-------------
Tyler Berding shows how the reasons for recent municipal bankruptcy filings are structurally similar to the financial time bomb that is built into many community associations--a must-read. Thanks to Fred Pilot for the link.
"So how is this similar to the plight of community associations? Simple. The developer of a project creates a reserve program based on the false assumption that most components of a building have an infinite service life and will never need repair or replacement. The early owners (investors) pay into the venture (community association budget) at lower than necessary assessment rates. That not only attracts buyers to the initial sales offering but also, in turn attracts future buyers. Eventually the investors who are the owners when the underfunding is discovered are stuck with not only their share of the bill, but also the shares of all of the prior owners who underpaid their assessments for so many years and then sold off their interests. Not exactly a “Ponzi” scheme, but close."
-------------
Tyler Berding shows how the reasons for recent municipal bankruptcy filings are structurally similar to the financial time bomb that is built into many community associations--a must-read. Thanks to Fred Pilot for the link.
California City Under Investigation Drained Reserve Funds - Bloomberg
California City Under Investigation Drained Reserve Funds - Bloomberg
Law enforcement officials are investigating possible crimes in San Bernardino’s city government, which almost drained special funds to prop up its budget.
The near-bankrupt state of the community of 209,000 east of Los Angeles came to light when a new finance director discovered that previous officials shifted money for workers-compensation and liability insurance to the general fund, said Andrea Travis- Miller, interim city manager.
“The city has relied on a whole variety of one-time measures to balance its budget,” Travis-Miller, who began her job in May, said yesterday. “There have been transfers to the general fund with the expectation that they would be repaid. That became difficult.”
-----------
San Bernardino's fiscal crisis is looking more and more like a case of mismanagement occurring in hard economic times in which they lost property tax revenues and also face a huge pension obligation. Thanks to Fred Pilot for the link.
Law enforcement officials are investigating possible crimes in San Bernardino’s city government, which almost drained special funds to prop up its budget.
The near-bankrupt state of the community of 209,000 east of Los Angeles came to light when a new finance director discovered that previous officials shifted money for workers-compensation and liability insurance to the general fund, said Andrea Travis- Miller, interim city manager.
“The city has relied on a whole variety of one-time measures to balance its budget,” Travis-Miller, who began her job in May, said yesterday. “There have been transfers to the general fund with the expectation that they would be repaid. That became difficult.”
-----------
San Bernardino's fiscal crisis is looking more and more like a case of mismanagement occurring in hard economic times in which they lost property tax revenues and also face a huge pension obligation. Thanks to Fred Pilot for the link.
Smoking Banned Inside Santa Monica Residences | NBC Southern California
Smoking Banned Inside Santa Monica Residences | NBC Southern California
"Smoking is already banned at beaches, parks, restaurants and near buildings in Santa Monica, but Tuesday night the city council sought to expand that prohibition and voted 4-2 to ban smoking for all new tenants of apartments and condos inside their residences – with one exception.
“It also requires existing residents to designate their units as smoking or non smoking and from then on it will be prohibited to smoke in a non smoking unit,” said Adam Radinksy, head of the Consumer Protection Unit in Santa Monica."
-------------------------
With condo buildings and apartment buildings going non-smoking, it seems that the People's Republic of Santa Monica has pretty much banned smoking. I guess if you can afford a single-family home in Santa Monica you can post a sign and smoke your head off, but that's a pretty ritzy real estate market.
"Smoking is already banned at beaches, parks, restaurants and near buildings in Santa Monica, but Tuesday night the city council sought to expand that prohibition and voted 4-2 to ban smoking for all new tenants of apartments and condos inside their residences – with one exception.
“It also requires existing residents to designate their units as smoking or non smoking and from then on it will be prohibited to smoke in a non smoking unit,” said Adam Radinksy, head of the Consumer Protection Unit in Santa Monica."
-------------------------
With condo buildings and apartment buildings going non-smoking, it seems that the People's Republic of Santa Monica has pretty much banned smoking. I guess if you can afford a single-family home in Santa Monica you can post a sign and smoke your head off, but that's a pretty ritzy real estate market.
Wednesday, July 11, 2012
Joe Nocera: Use eminent domain to take underwater mortgages
Housing’s Last Chance? - NYTimes.com
"It is well documented that underwater mortgages have a high likelihood of defaulting — and, eventually, being foreclosed on. It has also been clear for some time that the best way to keep troubled homeowners in their homes is by reducing the principal on their mortgages, thus lowering their debt burden and more closely aligning their mortgage with the actual value of the home. Which is why Greg Devereaux, the county’s chief executive officer, found himself listening intently when the folks from Mortgage Resolution Partners came knocking on his door. They had spent the previous year kicking around an intriguing idea: have localities buy underwater mortgages using their power of eminent domain — and then write the homeowner a new, reduced mortgage. It’s principal reduction using a stick instead of a carrot."
--------------------------
This is a fascinating idea. More here.
"It is well documented that underwater mortgages have a high likelihood of defaulting — and, eventually, being foreclosed on. It has also been clear for some time that the best way to keep troubled homeowners in their homes is by reducing the principal on their mortgages, thus lowering their debt burden and more closely aligning their mortgage with the actual value of the home. Which is why Greg Devereaux, the county’s chief executive officer, found himself listening intently when the folks from Mortgage Resolution Partners came knocking on his door. They had spent the previous year kicking around an intriguing idea: have localities buy underwater mortgages using their power of eminent domain — and then write the homeowner a new, reduced mortgage. It’s principal reduction using a stick instead of a carrot."
--------------------------
This is a fascinating idea. More here.
San Bernardino seeks bankruptcy protection - latimes.com
San Bernardino seeks bankruptcy protection - latimes.com
San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.
The unexpected vote came at the suggestion of the interim city manager, who said the city faces a $46-million deficit and depleted coffers...The city joins two others in California — Stockton and Mammoth Lakes — that have turned to bankruptcy in recent weeks to cope with their financial problems, albeit for different reasons."
--------------------------
San Bernardino has a population of over 200,000. The situation there is complicated because there are several different contributing factors to their financial plight, including a drop in property tax revenue, pension costs, bad development decisions, etc.
San Bernardino on Tuesday became the third California city in less than a month to seek bankruptcy protection, with officials saying the financial situation had become so dire that it could not cover payroll through the summer.
The unexpected vote came at the suggestion of the interim city manager, who said the city faces a $46-million deficit and depleted coffers...The city joins two others in California — Stockton and Mammoth Lakes — that have turned to bankruptcy in recent weeks to cope with their financial problems, albeit for different reasons."
--------------------------
San Bernardino has a population of over 200,000. The situation there is complicated because there are several different contributing factors to their financial plight, including a drop in property tax revenue, pension costs, bad development decisions, etc.
Herp Derp YouTube Comments | Tanner's Website
Herp Derp YouTube Comments | Tanner's Website
This is a YouTube extension that converts all comments to "herp derp."
This is a YouTube extension that converts all comments to "herp derp."
Tuesday, July 10, 2012
Excite News - Report: Some lose homes over as little as $400
Excite News - Report: Some lose homes over as little as $400
WASHINGTON (AP) - The elderly and other vulnerable homeowners are losing their homes because they owe as little as a few hundred dollars in back taxes, according to a report from a consumer group.
Outdated state laws allow big banks and other investors to reap windfall profits by buying the houses for a pittance and reselling them, the National Consumer Law Center said in a report being released Tuesday.
Local governments can seize and sell a home if the owner falls behind on property taxes and fees. The process helps governments make ends meet at a time when low property values and the weak economy are squeezing tax revenue.
But tax debts as small as $400 can cause people to lose their homes because of arcane laws and misinformation among consumers, says John Rao, the report's author and an attorney with NCLC.
--------------------------
For those of us who know about condo/hoa foreclosure practices, this sort of thing is old news. The new part is that now tax farmers are doing it.
WASHINGTON (AP) - The elderly and other vulnerable homeowners are losing their homes because they owe as little as a few hundred dollars in back taxes, according to a report from a consumer group.
Outdated state laws allow big banks and other investors to reap windfall profits by buying the houses for a pittance and reselling them, the National Consumer Law Center said in a report being released Tuesday.
Local governments can seize and sell a home if the owner falls behind on property taxes and fees. The process helps governments make ends meet at a time when low property values and the weak economy are squeezing tax revenue.
But tax debts as small as $400 can cause people to lose their homes because of arcane laws and misinformation among consumers, says John Rao, the report's author and an attorney with NCLC.
--------------------------
For those of us who know about condo/hoa foreclosure practices, this sort of thing is old news. The new part is that now tax farmers are doing it.
The Coasean Republic - Credit Slips
The Coasean Republic - Credit Slips
"At times I've joked to my classes about the possibility of a Coasean Republic, a state I call "Coase-istan" (or perhaps Kosistan), in which the entire world operates via private ordering. In Coase-istan, government does, well, nothing except put service provision out for private bids. Mail would be delivered only by private express companies like Fed-Ex. Prisons would be privately operated. Executions would be contracted out to the highest bidder. Food and drug safety would be policed solely by private litigation, which would, of course, all go to arbitration. Deposits would be privately insured, if at all. Taxes would be collected by tax farmers. The borders of the Coasean Republic would be protected by an army of mercenaries. Health care or transportation? Pay your own way. Want to buy a baby or enter a lifetime personal service contract? Go right ahead...Now, it turns out that the joke's on me. Sandy Springs, Georgia is well on its way to becoming the Coasean Republic. Well, let's hope that Tiebout competition works."
----------------
This is blog post on Credit Slips from law professor Adam Levitin, who is one of the sharpest analysts out there. What he calls "The Coasean Republic," I call "privatopia." Ronald Coase invented the Coase Theorem, which is at the root of much libertarian thinking. The theorem supports the notion that government regulation of externalities is less efficient than private payments. Externalities are the costs of a transaction that are not born by the parties to the transaction, but instead are imposed on others. A hog farmer grows and sells hogs and we eat bacon. But anybody living near the hog farm has to deal with the air and water pollution. The way Coase looked at it, instead of the government enacting a zoning law that prohibits you and your neighbors from setting up backyard hog farms, you should be free to do that unless your neighbors care enough about it to pay you not to do it. So CC&Rs are better than zoning ordinances because they were individually negotiated by the neighbors to create the little private utopia that they enjoy so much, free from the meddlesome and inefficient interference of government. Get it? No? You disagree? Well--Coase got a Nobel Prize, and as Fred Pilot would say, "So there!"
"At times I've joked to my classes about the possibility of a Coasean Republic, a state I call "Coase-istan" (or perhaps Kosistan), in which the entire world operates via private ordering. In Coase-istan, government does, well, nothing except put service provision out for private bids. Mail would be delivered only by private express companies like Fed-Ex. Prisons would be privately operated. Executions would be contracted out to the highest bidder. Food and drug safety would be policed solely by private litigation, which would, of course, all go to arbitration. Deposits would be privately insured, if at all. Taxes would be collected by tax farmers. The borders of the Coasean Republic would be protected by an army of mercenaries. Health care or transportation? Pay your own way. Want to buy a baby or enter a lifetime personal service contract? Go right ahead...Now, it turns out that the joke's on me. Sandy Springs, Georgia is well on its way to becoming the Coasean Republic. Well, let's hope that Tiebout competition works."
----------------
This is blog post on Credit Slips from law professor Adam Levitin, who is one of the sharpest analysts out there. What he calls "The Coasean Republic," I call "privatopia." Ronald Coase invented the Coase Theorem, which is at the root of much libertarian thinking. The theorem supports the notion that government regulation of externalities is less efficient than private payments. Externalities are the costs of a transaction that are not born by the parties to the transaction, but instead are imposed on others. A hog farmer grows and sells hogs and we eat bacon. But anybody living near the hog farm has to deal with the air and water pollution. The way Coase looked at it, instead of the government enacting a zoning law that prohibits you and your neighbors from setting up backyard hog farms, you should be free to do that unless your neighbors care enough about it to pay you not to do it. So CC&Rs are better than zoning ordinances because they were individually negotiated by the neighbors to create the little private utopia that they enjoy so much, free from the meddlesome and inefficient interference of government. Get it? No? You disagree? Well--Coase got a Nobel Prize, and as Fred Pilot would say, "So there!"
Worst TB outbreak in 20 years kept secret | www.palmbeachpost.com
Worst TB outbreak in 20 years kept secret | www.palmbeachpost.com
JACKSONVILLE — The CDC officer had a serious warning for Florida health officials in April: A tuberculosis outbreak in Jacksonville was one of the worst his group had investigated in 20 years. Linked to 13 deaths and 99 illnesses, including six children, it would require concerted action to stop.
That report had been penned on April 5, exactly nine days after Florida Gov. Rick Scott signed the bill that shrank the Department of Health and required the closure of the A.G. Holley State Hospital in Lantana, where tough tuberculosis cases have been treated for more than 60 years.
--------------------
Florida Governor Rick Scott is, of course, not only Gollum's doomed younger brother. He is also one of the Tea Party darlings who hates gubmint, taxation, and, it seems, public health services at or above the level of Somalia. And has he ever given Floridians a present: "Furthermore, only two-thirds of the active cases could be traced to people and places in Jacksonville where the homeless and mentally ill had congregated. That suggested the TB strain had spread beyond the city’s underclass and into the general population."
I can't wait to hear the libertarians explain how the free market will take care of public health programming.
Monday, July 09, 2012
Scranton moves ahead with minimum wage pay for city workers despite injunction - News - The Times-Tribune
Scranton moves ahead with minimum wage pay for city workers despite injunction - News - The Times-Tribune
In defiance of an injunction issued in Lackawanna County Court, hundreds of city employees will open their checks today to find they were paid only minimum wage for their work.
Amid Scranton's ever-deepening financial crisis, Mayor Chris Doherty said his administration is going forward with a plan to unilaterally slash the pay of 398 workers to the federal minimum of $7.25 an hour with today's payroll, insisting it is all the city can afford.
---------------
And then they came for the municipal employees, and I said nothing...
In defiance of an injunction issued in Lackawanna County Court, hundreds of city employees will open their checks today to find they were paid only minimum wage for their work.
Amid Scranton's ever-deepening financial crisis, Mayor Chris Doherty said his administration is going forward with a plan to unilaterally slash the pay of 398 workers to the federal minimum of $7.25 an hour with today's payroll, insisting it is all the city can afford.
---------------
And then they came for the municipal employees, and I said nothing...
Saturday, July 07, 2012
How Wall Street Scams Counties Into Bankruptcy - Bloomberg
How Wall Street Scams Counties Into Bankruptcy - Bloomberg
For some reason, Wall Street never seems to get the message that bribing government officials -- and paying each other off - - to get access to lucrative municipal-bond underwriting business is illegal. Wall Street has never learned this lesson because the miniscule price it ends up having to pay for misbehaving has absolutely no deterrent value whatsoever.
-------------
This piece then goes on to summarize some of the catastrophes that have occurred to date.
For some reason, Wall Street never seems to get the message that bribing government officials -- and paying each other off - - to get access to lucrative municipal-bond underwriting business is illegal. Wall Street has never learned this lesson because the miniscule price it ends up having to pay for misbehaving has absolutely no deterrent value whatsoever.
-------------
This piece then goes on to summarize some of the catastrophes that have occurred to date.
Friday, July 06, 2012
Matt Taibbi: Criminal convictions for municipal bond rigging
The Scam Wall Street Learned From the Mafia | Politics News | Rolling Stone
The defendants in the case – Dominick Carollo, Steven Goldberg and Peter Grimm – worked for GE Capital, the finance arm of General Electric. Along with virtually every major bank and finance company on Wall Street – not just GE, but J.P. Morgan Chase, Bank of America, UBS, Lehman Brothers, Bear Stearns, Wachovia and more – these three Wall Street wiseguys spent the past decade taking part in a breathtakingly broad scheme to skim billions of dollars from the coffers of cities and small towns across America. The banks achieved this gigantic rip-off by secretly colluding to rig the public bids on municipal bonds, a business worth $3.7 trillion. By conspiring to lower the interest rates that towns earn on these investments, the banks systematically stole from schools, hospitals, libraries and nursing homes – from "virtually every state, district and territory in the United States," according to one settlement. And they did it so cleverly that the victims never even knew they were being cheated.
------------------
These three defendants were convicted. And the US press covers the latest celebrity divorce. If you would like to read more about how this hurt municipalities, see Taibbi's follow up here.
The defendants in the case – Dominick Carollo, Steven Goldberg and Peter Grimm – worked for GE Capital, the finance arm of General Electric. Along with virtually every major bank and finance company on Wall Street – not just GE, but J.P. Morgan Chase, Bank of America, UBS, Lehman Brothers, Bear Stearns, Wachovia and more – these three Wall Street wiseguys spent the past decade taking part in a breathtakingly broad scheme to skim billions of dollars from the coffers of cities and small towns across America. The banks achieved this gigantic rip-off by secretly colluding to rig the public bids on municipal bonds, a business worth $3.7 trillion. By conspiring to lower the interest rates that towns earn on these investments, the banks systematically stole from schools, hospitals, libraries and nursing homes – from "virtually every state, district and territory in the United States," according to one settlement. And they did it so cleverly that the victims never even knew they were being cheated.
------------------
These three defendants were convicted. And the US press covers the latest celebrity divorce. If you would like to read more about how this hurt municipalities, see Taibbi's follow up here.
Thursday, July 05, 2012
Report: Countrywide won influence with discounts - Businessweek
Report: Countrywide won influence with discounts - Businessweek
WASHINGTON (AP) — The former Countrywide Financial Corp., whose subprime loans helped start the nation's foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report...Among those who received loan discounts from Countrywide, the report said, were:
-Former Senate Banking Committee Chairman Christopher Dodd, D-Conn.
-Senate Budget Committee Chairman Kent Conrad, D-N.D.
-Mary Jane Collipriest, who was communications director for former Sen. Robert Bennett, R-Utah, then a member of the Banking Committee. The report said Dodd referred Collipriest to Countrywide's VIP unit. Dodd, when commenting on his own loans, has said he was unaware of the discount program.
-Rep. Howard "Buck" McKeon, R-Calif., chairman of the House Armed Services Committee.
-Rep. Edolphus Towns, D-N.Y., former chairman of the Oversight Committee. Towns issued the first subpoena to Bank of America for Countrywide documents, and current Chairman Darrell Issa, R-Calif., subpoenaed more documents. The committee said that in responding to the Towns subpoena, Bank of America left out documents related to Towns' loan.
-Rep. Elton Gallegly, R-Calif.
-Top staff members of the House Financial Services Committee.
-A staff member of Rep. Ruben Hinojosa, D-Texas, a member of the Financial Services Committee.
-Former Rep. Tom Campbell, R-Calif.
-Former Housing and Urban Development Secretaries Alphonso Jackson and Henry Cisneros; and former Health and Human Services Secretary Donna Shalala. The VIP unit processed Cisneros' loan after he joined Fannie's board of directors.
-Rep. Pete Sessions, R-Texas, was an exception. He told the VIP unit not to give him a discount, and he did not receive one.
-Former Fannie Mae heads James Johnson, Daniel Mudd and Franklin Raines. Countrywide took a loss on Mudd's loan. Fannie employees were the most frequent recipients of VIP loans. Johnson received a discount after Mozilo waived problems with his credit rating.
------------
No comment. Res ipsa loquitur.
WASHINGTON (AP) — The former Countrywide Financial Corp., whose subprime loans helped start the nation's foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report...Among those who received loan discounts from Countrywide, the report said, were:
-Former Senate Banking Committee Chairman Christopher Dodd, D-Conn.
-Senate Budget Committee Chairman Kent Conrad, D-N.D.
-Mary Jane Collipriest, who was communications director for former Sen. Robert Bennett, R-Utah, then a member of the Banking Committee. The report said Dodd referred Collipriest to Countrywide's VIP unit. Dodd, when commenting on his own loans, has said he was unaware of the discount program.
-Rep. Howard "Buck" McKeon, R-Calif., chairman of the House Armed Services Committee.
-Rep. Edolphus Towns, D-N.Y., former chairman of the Oversight Committee. Towns issued the first subpoena to Bank of America for Countrywide documents, and current Chairman Darrell Issa, R-Calif., subpoenaed more documents. The committee said that in responding to the Towns subpoena, Bank of America left out documents related to Towns' loan.
-Rep. Elton Gallegly, R-Calif.
-Top staff members of the House Financial Services Committee.
-A staff member of Rep. Ruben Hinojosa, D-Texas, a member of the Financial Services Committee.
-Former Rep. Tom Campbell, R-Calif.
-Former Housing and Urban Development Secretaries Alphonso Jackson and Henry Cisneros; and former Health and Human Services Secretary Donna Shalala. The VIP unit processed Cisneros' loan after he joined Fannie's board of directors.
-Rep. Pete Sessions, R-Texas, was an exception. He told the VIP unit not to give him a discount, and he did not receive one.
-Former Fannie Mae heads James Johnson, Daniel Mudd and Franklin Raines. Countrywide took a loss on Mudd's loan. Fannie employees were the most frequent recipients of VIP loans. Johnson received a discount after Mozilo waived problems with his credit rating.
------------
No comment. Res ipsa loquitur.
Firing of Hallandale Beach lifeguard prompts outcry and review - South Florida Sun-Sentinel.com
Firing of Hallandale Beach lifeguard prompts outcry and review - South Florida Sun-Sentinel.com
Executives of an aquatics company will review whether the firm was justified in firing a Hallandale Beach lifeguard earlier this week for leaving his zone to help rescue a nearby swimmer. The dismissal prompted a media firestorm and an outpouring of public support for the guard, 21-year-old Tomas Lopez of Davie. Jeff Ellis Management, the Orlando-area company under contract with Hallandale Beach since 2003 to provide lifeguards at two public beaches, announced Wednesday that it would immediately interview the managers and workers involved in the incident to determine whether any safety protocols were violated...The city said it would await the results of the company's inquiry, which Ellis said should be complete by Friday. City spokesman Peter Dobens said the agreement for the protected areas of the beach calls for four lifeguards and one supervisor to be on duty simultaneously, per shift. "The city doesn't provide lifeguards in front of the condominiums up and down the beach," Dobens said. Emergency service personnel, however, respond whenever summoned.
--------------------
For those who still don't understand the difference between public provision of local services and privatization, read this. The City of Hallandale Beach has contracted out lifeguard services (or some contractually-defined simulacrum thereof) to Jeff Ellis Management. One of their lifeguards did CPR (or otherwise rendered aid) on a man who had already been pulled from the water by others after apparently getting in trouble outside the area that the contract covers. His company fired him. The city is mumbling PR nonsense about awaiting the results of the grand investigation by the company, which translates into "Wait and see how bad the media firestorm is and act accordingly." This young man knew what needed to be done and he did it, because he is a lifeguard. Unfortunately, he works for a private company instead of a government.
This underscores a very important point about privatization. Sometimes privatization works just fine in terms of cost-effectiveness. But some services should not be privatized at all, ever, because they require split-second decisions, dedication to the welfare of others, and tasks that can't be clearly specified in advance. It seems to me that most jobs that involve risking your own life to save the lives of others are in that category. There's no reason you need to have public employees on staff to paint city hall, because contracting it out is easy and will work just fine. But how about contracting out police services to a private security company? Maybe that's fine for checking IDs at the front gate of the condo development, but when it comes to serious police work, I want a dedicated public servant between me and the real bad guys. I'd say the same thing about lifeguards. These are people who might have to dive into a rip tide to pull a drowning swimmer ashore and keep him alive until the paramedics arrive. I don't want them to be reading the fine print in their contract before they decide what to do.
And of course there is a great irony here. The city's private contractor fired Lopez for rendering aid to somebody who was drowning at a private beach in front of a condominium project, where it was "swim at your own risk." Apparently the condo association didn't pay for its own private lifeguard services. If you want the services of a Jeff Ellis lifeguard, condo dwellers, you have to pay for them. Those are the rules in privatopia.
Executives of an aquatics company will review whether the firm was justified in firing a Hallandale Beach lifeguard earlier this week for leaving his zone to help rescue a nearby swimmer. The dismissal prompted a media firestorm and an outpouring of public support for the guard, 21-year-old Tomas Lopez of Davie. Jeff Ellis Management, the Orlando-area company under contract with Hallandale Beach since 2003 to provide lifeguards at two public beaches, announced Wednesday that it would immediately interview the managers and workers involved in the incident to determine whether any safety protocols were violated...The city said it would await the results of the company's inquiry, which Ellis said should be complete by Friday. City spokesman Peter Dobens said the agreement for the protected areas of the beach calls for four lifeguards and one supervisor to be on duty simultaneously, per shift. "The city doesn't provide lifeguards in front of the condominiums up and down the beach," Dobens said. Emergency service personnel, however, respond whenever summoned.
--------------------
For those who still don't understand the difference between public provision of local services and privatization, read this. The City of Hallandale Beach has contracted out lifeguard services (or some contractually-defined simulacrum thereof) to Jeff Ellis Management. One of their lifeguards did CPR (or otherwise rendered aid) on a man who had already been pulled from the water by others after apparently getting in trouble outside the area that the contract covers. His company fired him. The city is mumbling PR nonsense about awaiting the results of the grand investigation by the company, which translates into "Wait and see how bad the media firestorm is and act accordingly." This young man knew what needed to be done and he did it, because he is a lifeguard. Unfortunately, he works for a private company instead of a government.
This underscores a very important point about privatization. Sometimes privatization works just fine in terms of cost-effectiveness. But some services should not be privatized at all, ever, because they require split-second decisions, dedication to the welfare of others, and tasks that can't be clearly specified in advance. It seems to me that most jobs that involve risking your own life to save the lives of others are in that category. There's no reason you need to have public employees on staff to paint city hall, because contracting it out is easy and will work just fine. But how about contracting out police services to a private security company? Maybe that's fine for checking IDs at the front gate of the condo development, but when it comes to serious police work, I want a dedicated public servant between me and the real bad guys. I'd say the same thing about lifeguards. These are people who might have to dive into a rip tide to pull a drowning swimmer ashore and keep him alive until the paramedics arrive. I don't want them to be reading the fine print in their contract before they decide what to do.
And of course there is a great irony here. The city's private contractor fired Lopez for rendering aid to somebody who was drowning at a private beach in front of a condominium project, where it was "swim at your own risk." Apparently the condo association didn't pay for its own private lifeguard services. If you want the services of a Jeff Ellis lifeguard, condo dwellers, you have to pay for them. Those are the rules in privatopia.
States Steal Federal Foreclosure Funds at Their Own Peril - Bloomberg
States Steal Federal Foreclosure Funds at Their Own Peril - Bloomberg
The U.S. housing market is showing tentative signs of life as demand for new homes and housing prices begin to rise in some areas.
Yet pitfalls remain, including about 12 million borrowers who still owe more on their “underwater” mortgages than their homes are worth. To help some of those people, the recent $25 billion national mortgage settlement required five large banks to pay states $2.5 billion for foreclosure prevention and other housing-related efforts.
Here’s the problem: many states -- including some hardest hit by the housing bust -- are diverting more than $1 billion of that settlement money to fill budget gaps, fund public universities and even bankroll litigation against defective Chinese drywall, according to a Bloomberg Government report. In doing so, states are robbing troubled borrowers of assistance and jeopardizing their housing recoveries in the process.
--------------
As this opinion piece observes, it is easy to understand why some states are doing this--they have huge budget imbalances that they have to fix. But the housing market is one of the mainsprings of the economy, and it needs to recover. Pilfering the mortgage settlement money is a short term strategy that retards the long term recovery.
The U.S. housing market is showing tentative signs of life as demand for new homes and housing prices begin to rise in some areas.
Yet pitfalls remain, including about 12 million borrowers who still owe more on their “underwater” mortgages than their homes are worth. To help some of those people, the recent $25 billion national mortgage settlement required five large banks to pay states $2.5 billion for foreclosure prevention and other housing-related efforts.
Here’s the problem: many states -- including some hardest hit by the housing bust -- are diverting more than $1 billion of that settlement money to fill budget gaps, fund public universities and even bankroll litigation against defective Chinese drywall, according to a Bloomberg Government report. In doing so, states are robbing troubled borrowers of assistance and jeopardizing their housing recoveries in the process.
--------------
As this opinion piece observes, it is easy to understand why some states are doing this--they have huge budget imbalances that they have to fix. But the housing market is one of the mainsprings of the economy, and it needs to recover. Pilfering the mortgage settlement money is a short term strategy that retards the long term recovery.
Wednesday, July 04, 2012
Monroe Township ordinance to change homeowners association regulations | NJ.com
Monroe Township ordinance to change homeowners association regulations | NJ.com
MONROE TWP. — The township council will vote on amendments to an ordinance this month that will require new residential developments with more than 100 homes to create homeowners associations.
The zoning ordinance also requires developers of residential neighborhoods with less than 100 homes to post a basin maintenance fee to contribute toward the upkeep costs of the basins and open space when the land is turned over to the township, according to Dawn Farrell, Monroe’s administrative clerk.
The township must maintain open space and retention basin land in developments without associations. Already, the work in the 38 developments without the groups has become a burden on municipal resources, Farrell said.
A zoning law created a decade ago required all developments, regardless of the number of homes, to establish homeowners associations (HOAs).
“However, it has come to light that smaller developments may not be able to sustain a HOA,” Farrell said Wednesday.
-----------------------
And there you have two things of note. First, ten years ago, Monroe Twp., NJ, started requiring that all new residential developments have HOAs, no matter how small they were. I have been emphasizing this widespread policy for many years--it completely undercuts the bogus argument that CIDs are a response to consumer demand. They are a way for developers and cities to make money. Second, they have now figured out that small HOA-run developments are not sustainable. The fragility of small HOAs, and many large ones, is undeniable, but it pales in comparison to the fiscal nightmare that thousands of condominium associations are facing.
Update 7/5/12: I have permission to include some comments from the person who sent me this link:
"I was looking at an article that related to the recent free speech case when I came across this additional article from the same news source. Admittedly the article is about a year old, however, I think it shows several things of interest:
1) HOAs are being mandated by local government
2) HOAs are being mandated in order to relieve the local government from the costs of maintenance AND to create additional revenue in the form of ad valorem taxes since the property is owned by a corporation rather than by governmental entities. In other words, more support for the proposition that HOAs are imposed out of government mandate rather than some "choice" of the homeowners. So much for the claim that numerosity implies popularity. I always said that numerosity doesn't equate to popularity whether you are talking about cockroaches, epidemics, or HOAs.
3) Local government realizes that HOAs are often unsustainable
4) Most of the argument raised by local government is ridiculous. Academically why would it matter how many homes are in the subdivision when it comes to who should have responsibility for maintenance? Either the obligation to maintain is a local government responsibility or it is not. The people in these subdivisions are paying taxes too."
MONROE TWP. — The township council will vote on amendments to an ordinance this month that will require new residential developments with more than 100 homes to create homeowners associations.
The zoning ordinance also requires developers of residential neighborhoods with less than 100 homes to post a basin maintenance fee to contribute toward the upkeep costs of the basins and open space when the land is turned over to the township, according to Dawn Farrell, Monroe’s administrative clerk.
The township must maintain open space and retention basin land in developments without associations. Already, the work in the 38 developments without the groups has become a burden on municipal resources, Farrell said.
A zoning law created a decade ago required all developments, regardless of the number of homes, to establish homeowners associations (HOAs).
“However, it has come to light that smaller developments may not be able to sustain a HOA,” Farrell said Wednesday.
-----------------------
And there you have two things of note. First, ten years ago, Monroe Twp., NJ, started requiring that all new residential developments have HOAs, no matter how small they were. I have been emphasizing this widespread policy for many years--it completely undercuts the bogus argument that CIDs are a response to consumer demand. They are a way for developers and cities to make money. Second, they have now figured out that small HOA-run developments are not sustainable. The fragility of small HOAs, and many large ones, is undeniable, but it pales in comparison to the fiscal nightmare that thousands of condominium associations are facing.
Update 7/5/12: I have permission to include some comments from the person who sent me this link:
"I was looking at an article that related to the recent free speech case when I came across this additional article from the same news source. Admittedly the article is about a year old, however, I think it shows several things of interest:
1) HOAs are being mandated by local government
2) HOAs are being mandated in order to relieve the local government from the costs of maintenance AND to create additional revenue in the form of ad valorem taxes since the property is owned by a corporation rather than by governmental entities. In other words, more support for the proposition that HOAs are imposed out of government mandate rather than some "choice" of the homeowners. So much for the claim that numerosity implies popularity. I always said that numerosity doesn't equate to popularity whether you are talking about cockroaches, epidemics, or HOAs.
3) Local government realizes that HOAs are often unsustainable
4) Most of the argument raised by local government is ridiculous. Academically why would it matter how many homes are in the subdivision when it comes to who should have responsibility for maintenance? Either the obligation to maintain is a local government responsibility or it is not. The people in these subdivisions are paying taxes too."
Tuesday, July 03, 2012
California Passes Significant Protections Against Illegal Foreclosure Processes | FDL News Desk
California Passes Significant Protections Against Illegal Foreclosure Processes | FDL News Desk
"Pressured by a coalition of activists and state Attorney General Kamala Harris, the California legislature completed a months-long project yesterday to significantly improve its foreclosure process. The measure gives homeowners a new right to sue over fraudulent practices, ends dual tracking – where servicers process foreclosures while negotiating loan modifications – and extends a single point of contact at all borrowers. The state Assembly passed the companion bills by 53-25, with the Senate passing by 25-13."
--------------------
This is the most aggressive mortgage foreclosure reform bill so far. I think I have the right one here--A. B. 278..
See more detail on this at the Center for Responsible Lending.
"Pressured by a coalition of activists and state Attorney General Kamala Harris, the California legislature completed a months-long project yesterday to significantly improve its foreclosure process. The measure gives homeowners a new right to sue over fraudulent practices, ends dual tracking – where servicers process foreclosures while negotiating loan modifications – and extends a single point of contact at all borrowers. The state Assembly passed the companion bills by 53-25, with the Senate passing by 25-13."
--------------------
This is the most aggressive mortgage foreclosure reform bill so far. I think I have the right one here--A. B. 278..
See more detail on this at the Center for Responsible Lending.
Subscribe to:
Posts (Atom)