How 'Reckless' Greed Contributed To Financial Crisis
Gretchen Morgenson, who covers world financial markets for The New York Times, has been untangling the complex foreclosure mess and efforts to reform government regulations on Wall Street for several years. Now Morgenson and co-author Joshua Rosner have written a book about the origins of the financial meltdown. In Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon, Morgenson and Rosner describe how regulators failed to control greed and recklessness on Wall Street. Read more...

Litsen to NPR interview with Gretchen Mortgenson 

Lawmaker: Builder hurt HOA bill
Dewhurst, Bob Perry aides deny interference
With a midnight deadline approaching, the Texas House author of a bill designed to make homeowners' associations more accountable said he would rather let the measure die than accept a weakened version promoted by Houston homebuilder and mega-political-donor Bob Perry. A frustrated state Rep. Burt Solomons, R-Carrollton, pulled his bill down after the House accepted an amendment he said would put into law "some of the worst business practices out there."...Perry spokesman Anthony Holm called Solomons' account of last session "far-fetched." Dewhurst spokesman Mike Walz said the lieutenant governor does not have any recollection of a conversation with Perry about homeowners' associations.

The Quorum Report: SOLOMONS PULLS DOWN HOA BILL AFTER KING PREVAILS WITH FLOOR SUBSTITUTE
Solomons replaced West bill with new language that brought incoming from Buddy Jones and Bob Perry. Yet another attempt at comprehensive homeowners’ association (HOA) reform hit the mat this afternoon when the latest iteration was body-slammed on the House floor by a rival member and its sponsor threw in the towel, likely putting the omnibus legislation down for the count this session.  Rep. Burt Solomons (R-Carrollton) succumbed to a challenge to his version of the bill by Rep. Phil King (R-Weatherford) and capitulated rather than advance the Senate version King was pushing. Solomons laid the blame for the debacle squarely at the feet of lobbyist Buddy Jones, homebuilder and major GOP donor Bob Perry, Dick Weekley of Texans for Lawsuit Reform (TLR), and the Texas Conservative Coalition (TCC). According to Solomons, Perry and representatives of the HOA industry helped write the bill authored by Sen. Royce West (D-Dallas). King touted it as an agreed-to bill by all parties, although reform groups never fully embraced it. Solomons said Perry, TLR and TCC all opposed his committee substitute.

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SAHA, homeowners agree to settle in Mirasol case
“We are thankful to have come to a mutually beneficial agreement and put an end to this four-year legal case,” says SAHA Chairman Ramiro Cavazos, following a special meeting of the board. “This settlement allows us to focus on moving forward and rebuilding the community.” In 2001, the contractors received $18 million to build 247 single-family homes in the Mirasol neighborhoods for low-income, first-time homeowners. However, a group of homeowners began reporting problems with the homes. In 2007, SAHA filed the lawsuit and was eventually joined by 66 Mirasol homeowners in the lawsuit. SAHA and the homeowners sought to recover damages and to receive funds that could be used to begin rebuilding Mirasol homes.

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.

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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.