Analysts Question a Threat by Fannie
Fannie Mae’s decision to begin punishing people who walk away from their unpaid mortgages could prove difficult to sell to the public and might be impossible to execute, housing and lending experts said Thursday.  A Fannie Mae spokeswoman said that the goal of the new punitive policies was to force defaulting homeowners to work with their servicers to surrender their houses through either a lender-approved short sale or by formally giving up the deed.

Prisoners cashed in on homebuyer tax credit
More than 1,200 prison inmates, including 241 serving life sentences, defrauded the government of $9.1 million in tax credits reserved for first-time homebuyers, according to a Treasury Department report released Wednesday. Treasury's inspector general also found that thousands of people filed multiple claims or made claims outside the allotted time period. In all, more than $28 million was improperly doled out.

HOA that foreclosed on soldier gets death threats
An Army officer on active duty lost his house when his homeowners' association foreclosed for back dues. It's a story first reported by News 8, and it outraged people around the world. Now the HOA is breaking its silence, saying the board is getting death threats.

Another local homebuilder, real estate agents, ringleader's wife added to Chico "builder bailout" scheme indictments
A man authorities identified as a Chico-area homebuilder was indicted along with seven others Thursday by a federal grand jury for alleged participation in a multi-million-dollar Chico "builder bailout" scheme. According to a statement from the U.S. Attorney's office, William E. Baker, 65, former operator of Baker and Baker Construction, conspired with former Chico mortgage broker Garrett Griffith Gililland, 28, to sell six homes to "straw buyers" at inflated prices. Proceeds from loans at the artificially inflated prices were then distributed to several co-conspirators through companies operated by Gililland.

St. Louis home builder sentenced for fraud
St. Louis home builder Edward Levinson was sentenced to 51 months in prison on bank fraud Wednesday. The charges are in connection with his construction business, resulting in approximately $13 million in losses to banks and prospective home owners and subcontractors.

Mortgage Fraud Suspects Indicted in California: How Could They Get Away With It?
"Operation Stolen Dreams" lands another alleged mortgage fraud conspirator this week. Nationwide, the feds have stepped up prosecution of mortgage and bank loan fraud. This time, it's a builder in Chico, Calif., who has been indicted for allegedly selling unsold new homes to non-existent or straw buyers, thereby scamming loan funds from banks and other duped lenders. Per the FBI and U.S. Department of Justice, almost 500 people have been indicted nationwide since March 1, in a coordinated effort to address the problem of crime in the housing and mortgage industries. Losses from fraud schemes are estimated in excess of $2 billion.

Developers pressured to fix tattered streets
Commissioner Adkisson is heading the new ad hoc committee that is made up of builders, realtors, Ventura Heights homeowner and their advocates. They are talking about options for homeowners if the private roads are not maintained by the developers. "I don't feel like it was productive," said homeowner Thomasina Nichols about the meeting. "I feel like they still want us, as the homeowner, to be responsible for something that we shouldn't be held responsible for."That is why Adkisson says the county will continue putting the pressure on the developers."That's why we want those who are responsible to take responsibility. We will be on these folks, and we will be at it and we want to help the people who are out there feeling like they are fending for themselves."

Builders Ask Taxpayers for Help Building Homes
Three Democrats in the House recently introduced legislation that would require the Treasury to guarantee $15 billion in construction loans. Backers say the program will give builders a boost until the housing market recovers. The measure, which would be open to all builders, addresses what has become a big divide within the building industry: While the downturn forced many private players to halt construction and suspend land acquisition, publicly owned builders have been able to soldier on–while losing money–benefiting from the advantage of selling stock to raise money and financing debt long-term. Public players have also reaped monetary windfalls, thanks to a new law letting companies apply losses from 2008 or 2009 against the previous five years, instead of two.

HOA Management Company: Leave a Message, Pay A Fee
Residents in the Weston Hills Subdivision in Orlando said when they called the management company after 5 p.m., a recorded message warned of a $25 fee for every non-emergency message left with the service...But when reporter Mike Holfeld listened to the recording, there was no indication that there was a line designated for emergency calls only. In fact, the beginning of the recording clearly states, "If this is an emergency call 911." Jan Bergman, a member of the state HOA task force under former Gov. Jeb Bush said the whole thing is "over the top."

Neighbors claim HOA ignoring snake and insect problem caused by neglected pond
There is a detention pond behind Baeza's home which is producing some scary health and safety hazards. "This is a haven for water moccasin and other snakes, which we're already found 4." There are more problems breeding in the standing water. "As you can see, we have a gazillion tadpoles, we've got frogs, we've got a lot of 10-fold spiders coming out." Baeza says the pond near his home is also attracting leeches, mosquitos and other insects.News 4 WOAI found out the pond is on private property which the Hills of Shaenfield Home Owners Association is responsible for maintaining. However, Baeza says the HOA has been giving him the run-around over cleaning up the area.  County Code Compliance is issuing a violation notice

Chico homebuilder pleads guilty, faces up to 20 years in prison
A Chico homebuilder faces up to 20 years in prison after pleading guilty Friday to federal charges linking him to a mortgage fraud scheme. Tony Symmes, the owner of Aspire Homes, admitted to one count of conspiracy to commit mail fraud and one count of money laundering.

OH NO!  Too Perverse to Fail
HR 5409, the Residential Construction Lending Act. Sponsors: Brad Miller, D-N.C., Carolyn Maloney, D-NY, and Joe Baca, D-CA. NAHB lobbies for govt guarantee of development loans, (i.e. taxpayer guaranteed?). Already, we have a mortgage-interest-tax deduction, the recent home-buyer tax credits, mortgage-modification programs, the $100 billion-plus bailout of Fannie Mae and Freddie Mac, and the Fed's $1.25 trillion purchases of mortgage-backed securities.  Google: Home Builder Fraud for more...

UPDATED May 28, 2010: Building industry wants the U.S. Treasury Dept to guarantee builders' loans
More of, Builders against big govt except when they're for it: Building industry economist urges careful regulation, says govt just gets in the way. Except when builders are looking for a tax break, bailout, or govt to guarantee their development loans.