It Teetered, It Tottered, It Was Bound to Fall Down
By GRETCHEN MORGENSON and JOSHUA ROSNER This article was adapted from “Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon,” by Gretchen Morgenson, a business reporter and columnist for The New York Times, and Joshua Rosner, a managing director at the independent research consultant Graham Fisher. The book is to be published on Tuesday by Times Books.

Read more...

When an expensive payment plan deal becomes a foreclosure
Senator West’s HOA Reform SB 142 contains a flawed “Priority of Payments” section that will dictate how homeowner HOA payments must be applied.  SB 142 has a “Payment Plan” section as well that will officially dictate that HOAs must offer a payment plan under state law, to homeowners who are delinquent on their dues. Senator West has added both requirements to Rep. Dutton’s HB 1228.  The problem is that the Priority of Payment as it is currently written has the (b) exception that would allow current abusive practices of applying all payments to attorney fees under a payment plan, so that business will continue as usual.

Symptoms Include Headaches, Anger, Depression
A psychology professor from the College of Southern Nevada said that he has discovered a new anxiety disorder called HOA Syndrome. If you live in a community with a homeowner's association, you will likely experience some symptoms of anxiety, according to Dr. Gary Solomon. "You might experience anger, sleeplessness, headaches and emotional problems," said Solomon. "You can even experience a fear of going to the mailbox or living in your own home." ...What is the treatment for HOA Syndrome? It's pretty simple, said Solomon. Just do what Lantry and his family did, move out and never move into an HOA neighborhood again. "Why would I want another incompetent level of government standing in judgment of me?" said Lantry.

Neighbors: Builder Breaking Rules, Destroying Neighborhood
Now D.R. Horton is building homes in the $90,000 range, some with one-car garages and siding, instead of the more expensive stone and brick. "They don't care who they sell to. They don't care what they look like as long as they get them up and they get them sold. To me ... it seems that they don't care," Salinas said.  Neighbors like Jeremy Taub are even thinking about moving out because of the new homes. "We like the neighborhood, but if our house is going to continue to drop in value, then it's not any place I'm going to stay," Taub said.

Chairman Solomons Confident SB 142 Will Come to the Texas House Floor
As time runs out in the legislative session, lawmakers’ promises to dampen the influence of homeowners associations may be fading.  The only HOA bill that has passed both chambers did so Thursday, leaving many dead in committees and several awaiting a spot on the agenda in the final 10 days of the session...Both West and Solomons say they’re confident they can reach a compromise on their bills, if the House can act in time.  “Obviously the clock is ticking and the House is focused on more weighty issues,” West said. “But, yes, we can still get this through.”  Solomons says he has the necessary support in the House. All he needs is time. “It’s got a better chance to pass than the budget,” he said.

Rep. Hank Johnson, Sens. Franken and Blumenthal Introduce Legislation to Protect Legal Rights of Consumers
"Consumers fighting for fundamental rights against giant corporations deserve their day in court," said Sen. Blumenthal. "This new law would protect countless consumers in Connecticut and around the country from powerful companies that take advantage of them. When individuals have legitimate claims against big corporate interests, they have the right to a level playing field. "

Stand Up For Your Rights
Sens. Al Franken (D-Minn.) and Richard Blumenthal (D-Conn.) and U.S. Rep. Hank Johnson (D-Ga.) will hold a press conference to announce the introduction of legislation that would remedy a recent Supreme Court ruling and restore consumers’ rights to seek justice in the courts. Their bill, called the Arbitration Fairness Act, would eliminate forced arbitration clauses in employment, consumer, and civil rights cases, and would allow consumers and workers to choose arbitration after a dispute occurred.

New York Investigates Banks’ Role in Financial Crisis
The New York attorney general has requested information and documents in recent weeks from three major Wall Street banks about their mortgage securities operations during the credit boom, indicating the existence of a new investigation into practices that contributed to billions in mortgage losses. The possibility has also been raised that the banks did not disclose to mortgage insurers the risks in the instruments they were agreeing to insure against default. Another potential area of inquiry — the billions of dollars in credit extended by Wall Street to aggressive mortgage lenders that allowed them to continue making questionable loans far longer than they otherwise could have done.

HOA Reform Coalition Supports CSSB 142
Priority of Payments Provision would apply payments in this order: 1) any delinquent assessments; 2) any current assessment; 3) any attorney fees or third party collection costs. Homeowners have been trying to get meaningful legislation for more than a decade. The present laws have allowed HOA abuse and tens of thousands of foreclosures across the state - devastating to both  homeowners and to property values.

A trail of stalled or abandoned HUD projects
The federal government’s largest housing construction program for the poor has squandered hundreds of millions of dollars on stalled or abandoned projects and routinely failed to crack down on derelict developers or the local housing agencies that funded them.  Nationwide, nearly 700 projects awarded $400 million have been idling for years, a Washington Post investigation found. Some have languished for a decade or longer even as much of the country struggles with record-high foreclosures and a dramatic loss of affordable housing.

Homeowners group fights Marine family’s banner
In January, following Corey Burr’s deployment to Afghanistan, Burr and her husband, Timothy, put up a large multi-colored banner with their 20-year-old son’s Marine Corps portrait and the phrase “Our son defends our freedom” in front of their south Bossier home.  The couple received a letter a month later from the Gardens of Southgate Association stating the banner was in violation of the neighborhood’s covenants. The covenants specify only real estate signs are permitted...the association’s attorney, Geoffrey Westmoreland, informed her she had 10 days to remove the sign or litigation could ensue.

Nation's largest home builder asked to account for $900 million grant
In 2010 Pulte Group received $900 million from the Worker Home Ownership and Business Assistance Act of 2009. Pulte had lobbied for the bill's passage. The act was intended by Congress and President Obama to be a job-creation measure. One year later, workers are still waiting for those jobs.  While Dugas remains free to enjoy the life a salary and compensation of $6.6 million (his total for 2010) can bring, a coalition of labor, faith and social justice advocates are increasingly putting Pulte in the spotlight. And, their anger is growing.

Bogus lawmen
Four men have been charged with committing armed robberies at homes in Wilkes and two other area counties after displaying bogus search warrants, falsely portraying themselves as law enforcement officers and binding many of their victims with zip ties... Collins was state director of the Wilkes County Home Builders Association in 2009, president of the association in 2010 and is currently a regional vice president of the N.C. Homebuilders Association. He was identified as owner of CNC Construction Co., which was dissolved by the N.C. Secretary of State’s office in 2004.

Fairhaven Residents Fear Further Damage To Homes, Retaining Walls
"The house is moving and sinking," said Brian Benavides. "It's scary," said Peggy Benavides.The Benavides said they found cracks in their new home, contacted Pulte and the builder came in and tore the home apart, patching cracks, filling holes and putting dozens of beams underneath to support the foundation. Still, the couple questions whether the cracking and shifting will continue. They said the problem has returned slowly because the land is sinking and sliding. The playground wall has already been repaired and so has the sidewalk. Chunks are missing from curbs and huge gaps are appearing between sidewalks and driveways and garages and driveways.

HOA Reform or a Lucrative Funded Mandate 
In response to a multitude of major news reports depicting abusive actions by Home Owners Associations (HOA), boards and vendors, Texas lawmakers have seen some sixty (60)) plus reform bills filed.  Although the intent may be good, some of these bills may well enable an unrestrained funded mandate to siphon more money from homeowner for the benefit of builders, developers and management companies.