Make builders, lenders fix the housing mess
So this time around we have home builders admitting that employees regularly lied or broke federal lending rules in order to sell houses to unqualified buyers. That, of course, inflated revenues. For example, Beazer Homes (BZH, news, msgs) has admitted that it violated federal housing rules by arranging for nonprofit organizations to lend potential buyers their down payments -- and then repaid the nonprofit by rolling the "down payment" into the buyer's mortgage. On Oct. 11, the company told Wall Street that it expects to pay about $15 million in fines. The stock actually rallied on that news because Wall Street analysts had been projecting the company would face much steeper financial penalties.

Hackett pleads not guilty to federal corruption charges
Orange Mayor Mims Hackett this morning pleaded not guilty to corruption charges, becoming the first of 11 public officials snared in an FBI sting last month to do so. Hackett's arraignment before U.S. District Judge Jose Linares in Newark came just a few days after former Assemblyman Alfred Steele became the first of the group to plead guilty. Hackett and Steele served in the Assembly together, but both stepped down after their arrests.

Home a $2.2 million wreck, NBA star says
All NBA legend Allen Iverson wanted was a simple home for his family in Atlanta. Instead, the tattoo-covered icon of the hip-hop hoops generation contends he got a $2.2 million dump marred by such shoddy construction, his wife and four children had to abandon the home after just 60 days. Now, Iverson has hired Atlanta lawyer Kurt Hilbert and filed suit against the builder, seeking more than $6.2 million in damages. Iverson wants to force the builder to refund the purchase price of $2.2 million and to pay the family for relocation expenses, custom-built furnishings and other damages.

MSNBC Special: Home Wreckers

Mirasol panel's 1st buyback raises stir
The San Antonio Housing Authority announced Wednesday that it purchased Roxann Perez's home in the 1500 block of Villa Flores for $94,000. Perez, who bought the house in 2006 for $78,000, netted almost $24,000 after SAHA threw in an $8,500 second mortgage it held on the property. But Mirasol residents on the task force questioned the amount of money Perez got. She has lived in the house less than 18 months, while others who bought their homes years before stand to get little more than half that amount.

Bexar has most foreclosed properties since 1990
Thanks to easy lending standards that gave no-money-down loans to people with questionable credit histories, higher foreclosures likely will be an unwelcome houseguest in Texas for a few years. The foreclosures mostly are hitting those who made small or nonexistent down payments on their homes, and who likely are first-time home buyers. "This is the most we've had since the savings and loan crisis," said Gregg Stanley, owner of Real Estate Foreclosures, a San Antonio-based foreclosure tracking service. Stanley said loose mortgage lending practices and adjustable-rate mortgages resetting to higher — more unaffordable — rates are to blame.

Beazer Homes faces up to $15M fine for loan violations
Beazer Homes (BZK) said Thursday that some employees at its mortgage division broke federal loan laws from at least 2000 through early this year. The builder said it expects to pay up to $15 million in regulatory fines and losses and to restate its financial results all the way back to 1999.The Atlanta-based company, one of the nation's largest home builders, also said roughly two of every three buyers canceled their contracts from July to September.Beazer is being investigated by the Securities and Exchange Commission and the U.S. Attorney's office in North Carolina on allegations that it broke rules governing down payment assistance, sold homes to low-income buyers who couldn't afford them, falsified documents and charged higher fees than the regulations allow.

Subprime Mortgage Crisis Spurs Formal SEC Inquiry Into Nation's Largest Lending Company
The Securities and Exchange Commission's is undergoing a informal inquiry into Countrywide Financial Corp. Chief Executive Angelo R. Mozilo, sources say, Thursday, Oct. 18, 2007. Mozilo sold some $130 million in Countrywide stock in the first half of the year through a prearranged 10b5-1 trading plan. The plans, popular among corporate executives, allow a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of significant nonpublic information.

Builder Marks Homes That May Have Bombs On Property
A local builder marked dozens of Orange County houses Monday that may have bombs on the property. Lennar Homes will dig up the yards of the marked houses in the Vista Lakes subdivision, off Lee Vista Road, near Odyssey Middle School...Recently, Lennar Homes sent homeowners letters and hosted community meetings letting folks know that they'll have to evacuate the area from 9:00am through 3:00pm Tuesday, Wednesday and Thursday. If a bomb is found and too dangerous to move, it will have to be detonated on site.

Realtors guarantee sale of couple's home but don't deliver
It has to do with something called the Guaranteed Sale Program. But one Valley couple selling their home found out a guarantee is really not a guarantee at all... To make the move, Love used the Guaranteed Sale Program offered by real estate agents Gary and Caryn Shannon of Keller Williams Realty Southeast Valley... As part of the "guaranteed" deal, the couple had to buy a new KB home, which they did in Surprise. They even moved in...forget that contract the Loves signed, forget the fact the fact they already moved, and forget that so-called guarantee. All of a sudden it doesn't matter, meaning the couple are now stuck paying two mortgages.

Home Builder Searching Homes On Former Bomb Range
Work is starting Tuesday morning to dig up dozens of yards in Orange County to search for old bombs... So far, several old live munitions have been found nearby and close to Odyssey Middle School...Lennar Homes told News 13 that they will dig up anything made of metal. The company said they are doing it to bring peace of mind to the people who live in the community.

Mirasol resident takes SAHA's buyback offer
Complaints of a shoddy home and the struggle to get money back has finally paid off for one Mirasol homeowner. On Wednesday, the San Antonio Housing Authority cut a check to Roxanne Perez, but so far, she's the only homeowner to take SAHA's offer.  "This is the first step for closure on some of the Mirasol matters," said Phil Nelson with SAHA. SAHA bought back Perez's home on Villa Flores for the net proceeds of $24,000. "She is now very satisfied, very happy with the process," Nelson said.

More coverage: Odyssey Middle School built near bomb range
The U.S. Army Corps of Engineers announced Wednesday that it found three more pieces of live World War II-era ordnance on some ranch land about 700 feet to 1,000 feet behind Odyssey Middle School...The "forgotten" Pine Castle bombing range, which has caused homeowners and parents of Odyssey Middle students much concern, was not forgotten by at least one family for the past 60 years.  In June 2002, on land behind Odyssey Middle School, ranch hand David Hillier was cutting a firebreak through heavy brush when his tractor kicked up what he thought was a burning log. His boss, Allen Smith, recognized the object as a World War II bomb and shouted for Hillier to get away... Senators Visit site  See Photos *  View Video coverage -

Scott Stroud: Hartman's Mirasol probe role may affect possible mayoral bid When Mayor Phil Hardberger touted homebuilder Gordon Hartman for the Mirasol Task Force back in the spring, it looked to some City Hall insiders like he might be anointing his successor as mayor. But what if Scarnato turns out to have been an honest broker? What if he found so many problems with the homes' original construction that the effort to make them inhabitable threatened to break the bank of the San Antonio Housing Authority?... A former homebuilder — emphasis on former, since some people around here see that as the devil's work — he has a natural, well-heeled constituency for bankrolling a bid for the mayor's office.

National Arbitration Forum Decides 61 Year Identity Theft Victim Owes $46,000 Yahoo! Finance has a horrible story about a 61 year old lady living on $759 a month Social Security whose credit card was stolen and it ended up with the National Arbitration Forum (NAF) deciding she owed them $46,000.When she received notice of pending arbitration against her, it had no claim attached to it. She didn't even know who was suing her. She sent a letter asking for the case to be dismissed or to be served with an actual claim. She didn't hear from them again until NAF told her they had ruled against her for $46,000. They didn't even respond to her motion.Takeaway: Scan your monthly credit card statements for any charges you don't remember making and report them as soon as possible. Also, arbitration by companies against consumers is evil. Support the Arbitration Fairness Act. Stacking the Deck Against Consumers. Read More on the horrors of Binding Arbitration...