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Nov 29, 2001 "This state sucks" One of many reactions to the mold decision by Texas Dept of Insurance Commissioner Montemayor:

• American-Statesman Insurance chief: Mold coverage must stay But homeowners may end up paying cleanup costs, higher premiums By Shonda Novak 
• Houston Chronicle: Mold order strips costs from policy   Finding, treating spread, losses from slow leaks out  By SHANNON BUGGS 
• San AntonioExpress-News State keeps 'basic' coverage for mold   By Adolfo Pesquera

The Dallas Morning News Order restricts mold coverage  Insurance companies, consumer groups object to state regulator's plan  By TERRENCE STUTZ Gov. Rick Perry called Mr. Montemayor's decision "a fair and balanced response to the no-win issue of mold coverage and homeowners' insurance."  NOTE: The Gov Mansion was remediated of mold at a cost to tax payers of $86,000.
• TDI Press Release [MISLEADING AT BEST]: Montemayor Protects Consumer Choice, Availability of Mold Coverage

Nov 28 2001 Advocacy report criticizes law group's campaign gifts  By JANET ELLIOTT  Copyright 2001 Houston Chronicle Austin Bureau The analysis of campaign contributions showed that Texans for Lawsuit Reform spent $1.4 million, with 92 percent going to Republicans. TLR's top 24 donors independently spent another $3.1 million. 

Among the 24 individuals are Houston homebuilders Bob J. Perry ($912,500) and Dick Weekley ($208,925); Enron's Ken Lay ($247,000); Cogen Technologies' Robert McNair ($354,825) and Sterling Group's Gordon Cain ($335,500). 

Nov 27, 2001 Tort Tycoons Poured Millions into 2000 Texas Elections Report Tracks Texans for Lawsuit Reform's Top Donors [Includes David Weekley and Perry Homes] NOTE: TLR is a so called "grassroots organization".

• Altogether, these 24 king makers spent $4.5 million to influence Texas politics in the 2000 cycle, with Houston homebuilder Bob Perry spending an astounding $912,500.
• Plaintiff Carlos Murillo complained that the builder refused to finish his house until he put up a yard sign that said, "Come Talk To Me Before You Buy a David Weekley Home." 
• Dick Weekley of Weekley Homes donated $126,000 to TLR and $208,925 total for 2000 elections.
• Bob J. Perry of Perry Homes donated $90,000 to TLR and  $912,500 total for 2000 elections.

Nov 26 2001 Department of Veteran Affairs looks into "a hybrid of the accepted foundation systems". See pages 1 2 3 4. (or PDF Format) "In order for VA to continue to extend to Pulte Homes of Texas the privilege of obtaining VA appraisals withoug VA or HUD compliance inspections., it will be necessary to provide this office with the following:"

• Foundation designs that have been "sealed" by your engineer for each of the plan types that have been constructed in the Anderson Woods Subdivision
• More....

Nov 26, 2001 Two Editorials on Mold in Texas:

Editorial: Mold causes havoc for owners, insurers  San Antonio Express-News. A middle ground needs to be reached here. Insurance companies cannot be expected to remain solvent if forced to pay multi-million claims, but at the same time consumers should be not be abandoned by their insurers.
Editorial: Mold deserves inquiry by state lawmakers San Antonio Express-News. The legislative committee needs to examine current construction trends and determine if changing local building codes could help keep down the incidences of mold in new buildings.

Nov 24 2001 Proposed settlement of Debbie Read et al. v. James Hardie Building Products Inc. No. 00-2-17945-65EA King County, Washington Superior Court concerning roofing shakes such as HardiShake and HardiSlate among others. See www.hardieroofingclaims.com for more information.

Nov 24 2001 Susan Yerkes: Mold, politics and crooks can't keep those Rickhoffs down San Antonio Express-News. "Hurry and check your home because the laws are changing, and soon enough, insurance companies will be paying jack-squat."

Nov 24 2001 Court air puts trial at risk Ex-cop may get change of venue  By Jim Schoettler  Times-Union staff writer  Mold and mildew is more likely to force the upcoming federal trial of ex-Jacksonville cop Karl Waldon out of town rather than the pretrial publicity Waldon's lawyers have complained about in the murder case.

During a court hearing yesterday, U.S. District Judge Henry Lee Adams Jr. said he has been told that the federal courthouse at 311 W. Monroe St. is in such bad shape a health consultant has warned that people with respiratory problems and similar ailments should not be inside for more than four straight days.

Nov 24 2001 Federal courthouse not healthful, air study says Mold, water damage could force closure of building  By Jim Schoettler  Times-Union staff writer  The heavily used federal courthouse in Jacksonville is filled with so much mold and water damage that officials may need to close the building and should at least consider keeping employees with related illnesses out of the 68-year-old structure, a court-ordered air quality study concludes.

Nov 19, 2001 Tackling questions on mold coverage  By SHANNON BUGGS Houston Chronicle. 

On Friday, Farmers filed a plan with the TDI to offer an even more enhanced HO-A policy that has replacement and limited water coverage. 

If approved, the policy would provide replacement coverage on building and contents and pay for damage caused by sudden and accidental water leaks; falling trees or limbs; weight of ice, snow or sleet; collapse of building or any part of a building; and breakage of glass. 

Farmers executives said they will meet with regulators today to expedite the approval process for this plan. 

Nov 13, 2001 Coverage cut under review  By W. Gardner Selby  Express-News Austin Bureau  AUSTIN s Texas Insurance Commissioner Jose Montemayor on Monday questioned the legality of plans by a major insurance company to stop renewing homeowners insurance policies that cover mold damage.

Nov 13, 2001 Home insurance cuts questioned   Farmers decision vexes state official By JANET ELLIOTT  Copyright 2001 Houston Chronicle Austin Bureau "I fully understand Farmers' concerns about the recent skyrocketing of mold-related losses," Montemayor said. "But apparently they did not listen to my many calls for restraint pending my decision. I'm stunned that Farmers Insurance would consider turning their back on loyal Texas customers in these times of economic uncertainty and national crisis."

Nov 11, 2001 Farmers to drop home insurance in Texas. Various stories:

Farmers to drop home insurance   Insurer cites Texas mold claims in halting comprehensive coverage  By TERRENCE STUTZ / Austin Bureau to The Dallas Morning News. "We must limit our exposure from foundation, water, and mold claims. However, we are investigating other alternatives and are hopeful a solution will eventually emerge which will allow us to again offer broad coverage."

NOTE: During the mold hearings, it was said that many years ago the insurance industry wanted to be relieved from foundation damage due to a water leak . Last July State Farm requested a hearing on it but later cancelled it.

Mold coverage forces Farmers to leave state  By SHANNON BUGGS "Homeowners who have ignored the mold problem may now be forced to have an opinion if their policies are canceled and they can't get replacement coverage with an insurer they trust. "

 Farmers to drop home insurance   Insurer cites Texas mold claims in halting comprehensive coverage  By TERRENCE STUTZ / Austin Bureau to The Dallas Morning News 

Farmers drops Texas homeowners   By Associated Press  San Antonio Express-News 

The company, KB Home, formerly Kaufman and Broad Corp., says that sale contracts specified that the land was once the site of a practice bombing range.

Some of the unexploded practice bombs contain white phosphorous, which can burn skin, the corps has said. Officials advise anyone who finds a bomb to call 911. 

Also See: Sept 27, 2001 Mortar casings worry residents  By L. LAMOR WILLIAMS and SUSAN MOORING Star-Telegram Some homeowners in the South Ridge Hills subdivision have found mortar shell casings on their properties and claim that the developer never told them their houses were built on an old Naval training range. KBHomes.

The FBI
NY Legistlature
Chamber of commernce
Attorney General
More.

BUSINESS AND INDUSTRY. Review trends in the use of binding arbitration requirements in consumer agreements, with special attention to transactions in which the consumer has little or no bargaining power.
INSURANCE. Review issues associated with homeowners' insurance coverage of toxic mold and mold related claims. Consider measures that would ensure appropriate coverage and remediation of damage and maintain the viability of the homeowners' insurance market. 

Nov 3, 2001 The CALA Files: The Secret Campaign by Big Tobacco and Other Major Industries To Take Away Your Rights. "While CALAs masquerade as grassroots citizens groups spontaneously manifesting citizen anger against so-called "lawsuit abuse" in their states, this report shows CALAs to be part of a national corporate-backed network of front groups that receive substantial financial and strategic assistance from ATRA, APCO and some of America's biggest corporations."

Reference the letter about mold coverage in Texas by Bill Summers of Citizens Against Lawsuit Abuse: Express-News: Commentary/Insight  Comment: Mold cases could have a rotten effect

Here's the part that amazes me: According to the Dallas Morning News, the Ballards' lawsuit "alleged that Farmers refused to authorize timely repairs to the home that would have prevented spread of the black mold." 

Hmmm. Yet another situation where the outcome would've been better if somebody--the Ballards, the jury or the judge--had checked with me. I would've pointed out that a family who can afford to build their own ersatz Tara ought to just go ahead and call a plumber at the first sign of a leak. That works way better than sitting around the house watching toxic black slime mold grow to the size of Tarzan vines, and wondering when the insurance company's plumber is going to show up.

Here is another from the so called grass roots" organizations Citizens Against Lawsuit Abuse. Express-News: Commentary/Insight  Comment: Mold cases could have a rotten effect By Bill Summers

Nov 2, 2001 Governor's Mansion, Texas AG's office, now Liberty County Court house has mold! Mold closes parts of courthouse Tests conducted in Liberty County By CINDY HORSWELL LIBERTY -- Officials in Liberty County have sealed off parts of the aging
courthouse here while trying to determine the extent of a toxic mold
infestation.

Nov 2, 2001 Mold prompts suit against apartments By: NIKI HERBERT, Citizen Staff October 31, 2001 Several residents who formerly lived at South Shore Lakes Apartments have filed a lawsuit against the complex alleging mold and mildew problems.

Nov 2, 2001 The Home Warranty and Builders' Relocation Act signed into law in New Jersey. provides for oversight of "The Home Warranty and Builders' Relocation Act," a state administered program that provides buyers of new homes with warranty protection against defects in the construction or quality of the structural elements of their new home.

Oct 31, 2001: Texas Governor's Mansion had an $86,000 mold claim! Mold creates insurance mess for Realtors, homebuyers By MIKE COPELAND Tribune-Herald business editor. "The insurance companies are wanting to offer a lot less, and there is no indication their rates will go down." He also took issue with those who suggest mold problems are due to poor home maintenance and that all customers should not be penalized for the negligence of a few. 

"The governor's mansion had an $86,000 mold claim," he said, "and they took pretty good care of it."

Nov 1, 2001 Military debris worries residents  By Robert Cadwallader  Special to the Star-Telegram  ARLINGTON    Federal officials trying to calm more than 250 south Arlington residents Tuesday night about practice military shells in their neighborhood kept hearing the refrain: "Would you buy a house here?" KBHomes.

Oct 29 2001: New Royces Homes at HUGE differences from listed vs assessed value in Katy Tx, Fort Bend County. Details can be found here.  These homes have Royce Homes LP as the owners except for those with *.

Oct 31, 2001: Pulte Loses in Arbitration, TWICE at $500,000 each! "Attorney Jake Moore says the arbitrator found Pulte guilty of fraud, "The award is very justified.] both sides are bound by the results and so we're waiting to hear when we get the check." But wait...

"A lawyer for Pulte homes wouldn't comment about the decision, except to say they will probably file a motion trying to get the arbitrator to reconsider the decision." This is binding arbitration as the contract stated, but I guess not for Pulte!

Oct 30, 2001 Texas PACs 2000 Election Cycle  Tort Law: $1,481,128 TLR (Texans for Lawsuit Reform, a so called grass roots organiztaion) raised half of its money from the families of just five tycoons who made fortunes in litigious industries: Sterling Groupms Gordon Cain ($200,000); real estate mogul Harlan Crow ($150,000); Cogen Technologiesm Robert McNair ($125,000); and the owners of David Weekley Homes ($126,000) and Bob Perry Homes ($90,000).

Oct 27, 2001: Village Builders in Houston repairs stucco on 5 year old homes if the homeowners relieve them of liability and "assign to Village any and all claims and causes of actions they may have agaisnt the manufacturer, applicator and/or supplier of the stucco installed...." How many homes this has been done to is not known.

Oct 26, 2001: Texas Insurance Commissioner plans to accept the $5000 cap on mold claims.

Will this stop mold from growing? No.
Will it prevent mold? No.
Will it destroy mold? No.
Will it prevent future lawsuits? No.
Will it solve the problem? No.

Montemayor backs mold caps Commissioner plans $5000 ceiling on pay-outs "Insurance is a lubricant for the economic machine," he said. "Itms what gets the capitalists to take the risks, and wemve got to make sure it keeps going."

Oct 26, 2001: Consumers call on the Texas Governor to become involved in the mold issue:

Express-News Officials urged to join mold debate  By Peggy Fikac   Austin Bureau  AUSTIN s Some Texas homeowners are calling on the state's top elected officials to fight for them in the battle over insurance coverage for mold damage, promising to remember their actions come election time.

"Homeowners vote. Voters own homes," said Nancy Gerding of The Woodlands, who said her home has toxic mold contamination that was improperly addressed by her insurer.

"It is time for these elected officials to step up to the plate for the people of the state of Texas," said Gerding, one of several hundred homeowners who signed a letter to Gov. Rick Perry, acting Lt. Gov. Bill Ratliff, House Speaker Pete Laney and Attorney General John Cornyn.

Star-Telegram: State leaders urged to take mold policy role  By JOHN MORITZ  Star-Telegram Austin Bureau 

"During a news conference at the Capitol, Lambe unveiled a letter signed by about 300 Texans to Perry, Cornyn, House Speaker Pete Laney, D-Hale Center, and acting Lt. Gov. Bill Ratliff urging them to become more active in the mold issue. Lambe said state law does not give the insurance commissioner all of the authority needed to tackle the matter."

News 8 Austin: Debate over insurance coverage By: News 8 Austin Staff 

Dan Lambe of Texas Watch  ]"Mold contamination, rising insurance premiums affect every single Texas family, every single Texas consumer," said Dan Lambe of Texas Watch. "What we're hoping is that the legislature, the governor and the attorney general's office get more involved in finding concrete solutions to this problem." 

Houston Chronicle: Consumer group wants governor involved in mold    AUSTIN -- Gov. Rick Perry and the Legislature should step into the mold coverage insurance debate and help draft a long-term solution, a consumer group said today.

"It has become apparent the commissioner of insurance is not going to be able solve this problem on his own," said Texas Watch Executive Director Dan Lambe. "They do not have enough authority, they do not have enough access to enough information to be able to solve this entire problem. They are addressing parts of the problem. We need more people to step up." 

Oct 24, 2001 (See our David Weekley Page for more stories on Tort Reform and David Weekley. Dr. Issues Killer Post-Mortem  On Perryms Prompt-Pay Veto. (Richard Weekley of Texas for Lawsuit Reform,  is the brother of David Weekley, the homebuilder. We call them, among other things,"Corporations for No Lawsuits")

* With Doctors Bloodied, Toomey & Weekley Should Consider Christian Science.
* Did Cornyn Agree To Broker A Compromise With A Politicized A.G. Opinion? 

Texans for Lawsuit Reform is headed by Richard Weekley, brother of David Weekley. TLR is partially responsible for destroying our rights for consumer protection in Texas. 

Oct 23, 2001: Homeowners steamed about mold By Mark Schlueb | Sentinel Staff Writer Tony Martin of CED Construction said the company's responsibility ended when the homes' one-year construction warranties expired. The company sold longer homebuyers' warranties to the residents of Southport that should cover roof repairs, he said

NOTE: This is another situation where no one will help the homeowner. The city shakes it's responsibility, the builder did too as well as the warranty. 

Oct 20, 2001 In Texas, court win can ring hollow By Andrea Ball American-Statesman Staff

Cecelia Clark Morell thought she'd beaten the bad land deal that left her with a decaying house and crumbling credit. 

She'd gone to court, won her case and celebrated when a Travis County judge ordered a developer to pay his customers $1.04 million for selling them substandard homes. Morell's share was $73,000. She wanted a new house, good credit and a fresh start. 

That was in 1999. 

Today, nearly two years after the gavel fell, Morell is still waiting for her money. Lawyers say the Arlington developer and his assets have disappeared, stiffing the people who needed that cash. Morell declared bankruptcy and now lives in her parents' house. 

NOTE: Nowplace but Texas. The state that invented the word "compassion".

Oct 19, 2001   Express-News: Business  Inspectors focus on sloppy foundation work in new houses  By Adolfo Pesquera  Express-News business writer "A team of engineers from the Texas Department of Insurance met recently with two independent home building inspectors to examine building materials and construction methods that could contribute to mold infestations."

NOTE ON FOUNDATION PICTURE ABOVE: "When steel rebar comes in contact with copper, electrolysis is the eventual result. That's an exchange of electrons between the dissimilar metals, and over time, it causes enough corrosion to cause the copper to fail, allowing a water leak in the slab."

Chapter 26 General Plumbing Requirements of the IRC 2000 P2603.3 Breakage & corrosion. Pipes passing through or under walls shall be protected from breakage. Pipes passing through concrete or cinder walls and floors, cold-formed steel framing or other corrosive material shall be protected against external corrosion by a protective sheathing or wrapping or other means that will withstand any reaction from lime and acid of concrete, cinder or other corrosive material. Sheathing or wrapping shall allow for expansion and contraction of piping to prevent any rubbing action. Minimum wall thickness of material shall be 0.025 inch (0.64 mm) 

Oct 19, 2001: Express-News: Commentary/Insight  Comment: Mold cases could have a rotten effectBy Bill Summers (Bill Summers is president and founder of the country's first Citizens Against Lawsuit Abuse group in the Rio Grande Valley. They are partially responsible for destroying our consumer protection here in Texas in order to lower insurance rates. (Have you EVER seen a decrease in insurance rates?)

"Why this sudden interest in the lowly mold spore? Perhaps it has something to do with a $32 million jury award to an Austin-area family in their suit against Farmers Insurance. This case catapulted "toxic mold" into the spotlight and a feature article in the New York Times magazine. The fact that the judge refused to consider health-related claims citing lack of scientific proof was downplayed in favor of photos featuring people in biohazard suits."

NOTE: Mr. Summers downplays the fact that Farmers was found to have committed FRAUD. 3 counts. And lost on 13 of 13 counts. His organization seems to protect those who committ FRAUD in this state.

Oct 20, 2001 More Letters in support of the Brancbugh family. For background see: Report blames township inspectors 

Branchburg cheating family.  The city officials of Branchburg should do what every red-blooded American corporation does -- stand behind their attorneys instead of standing behind their responsibilities. 

Branchburg should do the right thing.  Published in the Courier News New Jersey. .In the face of mounting evidence that Branchburg shares some responsibility for the plight of a township family stuck with a defect-ridden home, Branchburg officials continue to turn their backs on the family. That is a real shame. 

Thank God it didn't happen to me.  From speaking with Marie Crosby and her family as well as reading the newspaper articles about their Branchburg "dream" home, I believe I share with many the sentiment: "Thank God that didn't happen to me."

Please reconsider Branchburg family.  I have been reading about this poor family in Branchburg and think it is a disgrace that these officials are turning their back and not offering any assistance or accepting any responsibility.

Oct 19, 2001 FINALLY! 7 years later, The Texas Supreme Courts stops Perry Home's whining over $2800! THE FOLLOWING MOTIONS FOR REHEARING OF PETITIONS FOR  REVIEW ARE DENIED:  01-0135]]]]PERRY HOMES, a joint venture v. AZIZ ALWATTARI and HAJER ALWATTARI; from Tarrant County; 2nd district (02-98-00106-CV, 33 SW3d 376, 11-02-00) 

Background: This started in 1994 with a doundation failure. The jury ruled in favor of the homeowner. The appeal court did too. The Supreme Court did too. The builders then tried to change the law by filing Texas Senate Bill SB623 which did not pass. Now the Supreme Court has ruled again, deniying Perry's request for a review.. All over $2800. Is this lawsuit abuse or what? For background info read Perry Homes v. Alwattari NO. 2-98-106-CV.

See also: Aug 24, 2001 From the Texas Supreme Court Concerning Perry Homes: THE FOLLOWING PETITIONS FOR REVIEW ARE DENIED:  01-0135]]]]PERRY HOMES, a joint venture v. AZIZ ALWATTARI and HAJER ALWATTARI; from Tarrant County; 2nd district (02-98-00106-CV, 33 SW3d 376, 11-02-00) 
 

Oct 17, 2001: Homeowners call on Insurance Commissioner:

San Antonio Express: Mold coverage cap criticized  By Adolfo Pesquera  Express-News Business Writer The testimony of Debbie Kelsey, a homeowner and a real-estate agent in Austin, said scores of homeowners are suffering from delaying tactics by insurance companies, including getting checks for repairs that don't meet costs

Dallas Morning News: Insurance Commissioner Attends Mold Coverage Hearing in Austin By NATALIE GOTT Associated Press Writer Sen. Carlos Truan, D-Corpus Christi, urged Montemayor to call the insurance industry's bluff.  "The insurance industry is engaging in its usual blackmail. We may as well call it what it is, threatening to stop writing homeowner's insurance as it has hysterics over being asked to do its job of controlling and limiting risk." 

Corpus Christi Caller Times: Both sides oppose mold plan at hearing Homeowners oppose cap. Insurers want exclusion from standard policy. Consumers Union and Texas Watch also recommend increasing the proposed cap of $5,000 for mold coverage in all homeowners policies to $15,000 because the average mold claim is about $17,000.  ]] "Five thousand dollars is woefully inadequate,'' said Dan Lambe, executive director of Texas Watch. 

Houston Chronicle: Limit on mold insurance coverage generates little support at hearing "This would add insult to injury to a family that has suffered so much," said Nancy Gerding, who moved with her family into a townhouse after 

Oct 16, 2001 Consumer groups ask for limited mold insurance. Consumers Union and Texas Watch also said that the proposed cap of $5,000 for mold coverage in all homeowners policies should be increased to $15,000 because the average mold claim is about $17,000. Another group, Home Owners for Better Building, said it is opposed to the proposal for mold coverage. The proposal, if approved, will do nothing to solve the mold problem in Texas but said families will continue to suffer health and financial consequences of mold. 

Oct 15, 2001 Mold Hearing TOMORROW! Insurance Commissioner Jose Montemayor will hear public testimony on his staff's recommendation concerning residential property insurance coverage of mold beginning at 9 a.m. Tuesday, October 16, at the LBJ Library Auditorium, 2313 Red River Street, in Austin. 

Oct 15, 2001 To Governor Rick Perry, Lt. Governor Bill Ratliff, Speaker James lPeten Laney,and Attorney General John Cornyn: ]
]
We the undersigned call on the Texas Governor, the Lieutenant Governor, Speaker of the House of Representatives and Texas Attorney General to expand the investigation and consideration of solutions to the problem toxic molds pose to Texas homeowners, businesses, consumers and families. ]
Oct 15, 2001: A Public Statement regarding the mold issue and the Texas Department of Insurance staff recommendation.

HomeOwners for Better Building is opposed to the Texas Department of Insurance (TDI) staff recommendations for mold coverage.  This recommendation, if implemented, will do nothing to solve the "Mold Crisis" in Texas.  If TDI promotes limited liability for the insurance industry and added premiums for a choice of optional limited mold coverage on homeowner policies, the following results will occur:

• Families will continue to suffer the devastating health and financial consequences of mold.
• Health care costs will most certainly increase. 
• Foreclosures of homes with mold contamination will reach an all-time high.
• Home Mortgage Lenders will inherit the financial burden of mold contamination.
• Mortgage lenders may require full (100%) mold coverage that will be prohibitive for the average homeowner and future homebuyers.
• Future homebuyers will find it harder to qualify for home loans because of the drastic increase in cost of mold coverage. 
• Ultimately, higher rates along with high numbers of foreclosures, will adversely affect the real estate market for both existing and new homes.

Oct 5, 2001 Cornyn targets mold cleanup Nueces County claim costs are highest in stateBy Naomi Snyder Caller-Times. Homeowners, eager for a remodeling, may be happy to have the insurance company pay for it if some mold is found, some said. "They take a house that's as ugly as can be with 1962 decorations, and after they finish renovating, it's the year 2001,'' said Gene Guernsey, a Realtor with Re/Max Metro Properties.

Oct 6, 2001 Official calls for inquiry into mold price gouging  By ARMANDO VILLAFRANCA  Houston Chronicle Austin Bureau  AUSTIN -- Texas Insurance Commissioner Jose Montemayor called Friday for the Texas Attorney General's Office to investigate possible overcharges for mold removal from homes. 

NOTE: Thisis a good start, but consumers should call on the TX AG to investigate the insurance industry aslo! Farmers Insurance was found by a jury to have committed fraud. So Texas gives them a break in mold coverage. If we commit fraud, we get to break rocks. No Place But Texas have we seen such compassion for business.

Oct 5, 2001 Letter to Montemayour, TX Insurance Commissioner:

Subject: Insurance Price Gouging

To Whom it May Concern:

Upon renewal of my homeowners insurance, Farmer's raised my premium from 
approximately $45 - $76 per month due to the increase in mold claims by homeowners.  Understand that I have never made any type of homeowner's claim nor did my policy coverage increase, only the premium. 

When I submitted for quotes from other companies, no one bothered to reply except State Farm who stated that they were not taking on any new business as of two weeks ago. I then received an anonymous call from a State Farm agent who confirmed that ALL the larger insurance companies  were doing the same.

This agent advised that State Farm will be raising their rates by 10% in November and possibly another 15-25% by year's end. Further, he mentioned that new homeowners are really having a hard time closing because they cannot find an insurance company that will take on new policies.  He advised that I stay with my insurance company until the mold claim issue is resolved with the Texas  Department of Insurance (TDI). 

My question is why aren't TDI and the Austin American Statesman investigating this latest (illegal or just unethical?) practice by the insurance companies - which is tantamount to price gouging of Texas homeowners. We cannot seek other coverage because of the insurance company's decision to band together and refuse new business, thereby forcing homeowners to accept exorbitantly high increases in their premium.  Are consumers not protected in the state of Texas? 

Amy S. Harper

NOTE: No. Consumers are NOT protected in the state of Texas. We are a Home Buyer Beware State. Your issues have been brought t the attention of our elected officials. They have listened, but they have not heard a thing.

Oct 5, 2001 Air conditioning rip-off alleged  By Adolfo Pesquera  Express-News business writer. Now, the company's primary lender is the target of a deceptive trade practices lawsuit that Texas Attorney General John Cornyn alleges victimized thousands of Spanish-speaking customers and left many with significantly damaged houses. 

NOTE: Texas Attorney General is running for a Senate seat. This is the first home related investigation we have seen in Texas.

Oct 2, 2001 Victimized homeowner now faces fine. South Dartmouth resident ordered to make repairsBy Sacha Pfeiffer, Globe Staff . In July, when the multiple structural flaws in Richard Vargas's South Dartmouth home were highlighted in a Globe Spotlight Team report on how town building inspectors often overlook shoddy construction, Vargas hoped public officials would come to his aid. 

Now, the town building inspector has decided to do something about the violations his office missed - by threatening to fine the homeowner, who was victimized first by the builder and then by inattentive local inspectors.

NOTE: Is this a great country or what? The homeowner was blinded by a grenade in the Korean War. You can contact the Dartmouth Building Department Commissioner, David Silveira at 508/910-1820. See background:

April 29, 2001 Boston Globe: Luxury by Design, Quality by Chance. A 4 part series concerning the building industry. "The Spotlight Team also found that substandard home construction is a growing national problem, and that many national home building firms have taken advantage of a lack of government oversight. "
DAY ONE
Home builder leaves trail of bitter buyers
Problems undermine Hopkinton subdivision
Cost-saving practices a hit with Wall Street

Web-only
It would be less expensive ... to start over'
For both sides, a long-running nightmare
A seventh-grade shop project gone wrong'
They simply cannot do the job'

DAY TWO
Questionable sales practices 

DAY THREE
Sub-par materials used 

DAY FOUR
A national surge in buyer complaints 

Oct 1, 2001 Branchburg should do the right thing  Published in the Courier News New Jersey. .In the face of mounting evidence that Branchburg shares some responsibility for the plight of a township family stuck with a defect-ridden home, Branchburg officials continue to turn their backs on the family. That is a real shame. For background see:

• June 29, 2001 State orders fix on faulty home  LARRY HIGGS Staff Writer Violations were issued last week against the home's builder and former property owner by the state Department of Community Affairs. The orders require them to replace at least one wall of the home's foundation, according to notices issued by department inspectors on June 18. They face $500-per-day fines if they fail to answer by July 8.  SEE ALSO:
• June 8, 2001 State inspects flawed homeas family waits for action  By LARRY HIGGS Staff Writer  Published in the Courier News on June 8, 2001 The quartet of state officials -- engineers and Community Affairs Department officials -- spent 45 minutes examining cracks and sags in the home's foundation and looking at one of two roof trusses. See Related Articles:
• Violations found at Crosby's home [President of HOBB New Jersey]   Published in the Courier News on May 11, 2001  By WESLEY YANG  Staff Writer  "The Crosbys are suing the township, its code inspection officials and Glenn DeAngelis, who built the house in 1999 on the foundation of a house that had burned down several years earlier." (This wasn't disclosed to the Crosby's)See Related Stories:
• Homebuyers push for protection from defective houses [New Jersey]  Published in the Courier News on Homebuyers push for protection from defective houses   By LARRY HIGGS Staff Writer The Crosbys and Kellys have forwarded a proposed lemon law to Assemblyman Christopher "Kip" Bateman, R-Branchburg, who said he is reviewing it."
• Stuck with crumbling home, owners sue  Published in the Courier News on November 18, 2000  By LARRY HIGGS  Staff Writer  "A family's dream home has quickly become their nightmare -- now they're suing the township and the home builder."
• More flaws turn up in home  By LARRY HIGGS  Staff Writer   Published in the Courier News on December 27, 2000   BRANCHBURG -- State inspectors have found another violation that township building officials missed when they checked the home of a family who sued because other construction flaws were overlooked. 
• Family, code department are battling  By LARRY HIGGS  Staff Writer  Published in the Courier News on April 8, 2001   BRANCHBURG -- A family is involved in a classic "Catch-22" situation with the township Building Department. But it could cost them a $100 a day fine. 

Owners get extension to repair defective home  By LARRY HIGGS  Staff Writer   Published in the Courier News on April 26, 2001   BRANCHBURG-- The Crosby family has received some help from the state in the ongoing saga of their defect-riddled home.

Sept 30, 2001   Insurers get set for big losses, price boost  By Aïssatou Sidimé   Express-News Business Writer "The Patients' Bill of Rights could hurt by allowing people to sue HMOs and further raise their medical expenses," said Charles Titterton, director at Standard & Poor's.

Recently, a court ruling alerted insurers that they face paying for mold testing and medical treatment under homeowners' policies. State Farm recently stopped issuing new homeowners, renters and tenant policies in Texas after seeing a fivefold increase in mold claims this year.

NOTE: If the HMO's wouldn't practice medicine and stick to bean counting, they wouldn't get sued. And if Farmers hadn't committed FRAUD and handled the problem quickly, they wouldn't be complaining about mold coveage. 

Sept 30, 2001 New Jersey Senate Resolution 77. Urges Commissioners of Health and Senior Services and Community Affairs to provide information and assistance for infestations of stachybotrys atra.

Sept 30, 2001 California Senate Bill 732 The Toxic Mold Protection Act of 2001 This bill would enact the Toxic Mold Protection Act of 2001.  The bill would require the department to convene a task force comprised of various individuals including, but not limited to, health officers, health and medical experts, mold abatement experts, representatives of government-sponsored enterprises, representatives from school districts or county offices of education, representatives of employees and representatives of employers, and affected  consumers and affected industries including, residential, commercial, and industrial tenants, proprietors, managers or landlords, insurers, and builders, to advise the department on the development of permissible exposure limits to mold, standards for assessment of molds in indoor environments as well as alternative standards for hospitals, child care facilities, and nursing homes, standards for identification, and remediation of mold.

NOTE: This type of common sense takes about 5-10 years to get to Texas.

Sept 30, 2001 NEISD confirms mold in 3 schools  By Brandy Ralston  KENS 5 Eyewitness News The North East Independent School District admits it's a problem and they acknowledged toxic mold growing in three elementary schools. The mold will now cost an estimated $1 million to clean up, district officials said

Sept 30, 2001 SAFECO cuts new policies in Texas  Associated Press  AUSTIN s As another insurer announced it would stop selling new homeowners' policies in Texas, an industry-financed study indicated that premiums are likely to jump at least 25 percent to 40 percent.

Note: The Texas Insurance Commissioner has handed the consumers head on a silver platter to the insurance agencies allowing up to an 81% increase in rates.  And all they can do is complain the platter is not gold.

Sept 30, 2001 [Off topice] Asbestos crisis touches lives of entire Montana town   As more get sick, it's harder to sell homes, find jobs  By KIM MURPHY  Los Angeles Times LIBBY, Mont. -- The legacy of industrial poisoning in America is a grim one: There are the copper mines of Butte, which created a poisonous pit more than a mile wide and 1,800 feet deep. There is Cleveland's Cuyahoga River, once so polluted that it caught fire. But for sheer human misery, there rarely has been anything like Libby

EPA Administrator Christie Whitman will take on the difficult question of whether Superfund cleanup money can be used in Libby to remove Zonolite house insulation, which was installed in anywhere from 800,000 to 10 million attics across the United States.

Sept 27, 2001 Mortar casings worry residents  By L. LAMOR WILLIAMS and SUSAN MOORING Star-Telegram Some homeowners in the South Ridge Hills subdivision have found mortar shell casings on their properties and claim that the developer never told them their houses were built on an old Naval training range. KBHomes.

Weiner, Glass & Reed, L.L.P., the Dallas firm representing more than 50 of the homeowners, has sent a letter to the Army Corps of Engineers asking for help in dealing with the issue before deciding whether to pursue legal action against the developer, KB Home.

According to Anita Horky, a Corps spokeswoman, the military used two types of practice bombs on the site:

* The Mark 23-MOD-1, which contained approximately 5 ounces of black powder and/or phosphorous.
* The Mark 1-MOD-0, which contained a 2-pound bag of black powder along with a primer detonator, an adaptor and adaptor booster with less than 1 pound of black powder.

Sept 26 2001. A Michael Thomas Homes, Royce, Enclave  story from Katy Texas.

Sept 22, 2001 Report blames township inspectors  By LARRY HIGGS Staff Writer  BRANCHBURG -- A state report raps two township building inspectors for failing to catch construction code violations in a defect-ridden Robbins Road home. The 40-page report, issued by the state Department of Community Affairs on Wednesday, faulted construction official John Tamburini and fire sub code official William Boyle for problems they didn't catch during inspections of the home of Marie and Phillip Crosby. 

Sept 19, 2001 Texas Insurance Commissioner makes a mold coverageproposal:

81% increase in rates for Corpus, Austin. 54% increase in Houston. 35% increase in San Antonio. $5000 cap on all mold claims.

Mold Hearing Date Set Insurance Commissioner Jose Montemayor will hear public testimony on his staff's recommendation concerning residential property insurance coverage of mold beginning at 9 a.m. Tuesday, October 16, at the LBJ Library Auditorium, 2313 Red River Street, in Austin.

Mold Hearing Agenda for Oct 16, 2001.

Staff Petition. (Text of changes to homeowners policies.) PDF format

Montemayor Gets Mold Recommendation, Urges Calm Consideration "Mold has become a tremendously emotional issue for many consumers and insurance companies. But it's important that we deal with it calmly, responsibly and rationally," Montemayor said. "Insurance companies must respond quickly when policyholders report water losses because delay invites the growth of mold, increases the cost of a claim and is poor customer service. Homeowners should immediately stop leaks at their source, dry out wet areas and dehumdify their homes to minimize the possibility that mold will accompany a water loss."

Commissioner's Statement to Consumers "Mold is not a new problem. It has been around for eons. So, why has it become such a widely publicized problem in the last year or two? I believe the cause has been an unfortunate mixture of fear and publicity, which feed on each other. It is time for a sensible approach. "

 Statement to Insurers "I believe the claim surge is a temporary phenomenon created in part by extensive news media coverage. If we all work together to reduce not only mold claims but also mold exposure, we can eliminate the "horror stories" and big judgments that create headlines and scary features on TV news magazines."

Insurance proposal keeps some home mold coverage   Montemayor cites 'more options' while plan criticized  By SHANNON BUGGS "Farmers made its request while fighting a mold-damage case brought by an Austin-area couple. In June, a jury found that Farmers committed fraud by delaying payment to repair a plumbing leak in the couple's home that led to extensive mold growth and awarded Melinda Ballard and her husband $32 million."

Sept 14, 2001 HOBB's testimony against mold exclusion.  Sept 13 Houston, TX. "Last month the attorney respresenting the insurance agency stated "There are no scientific or medical studies which link mold to health problems". We must stress this point. There is absolutely no scientific or medical studies to prove dropping a bowling ball on your foot will hurt, but it doesn't take a rocket scientist to know it will."

Sept 14, 2001 State hears testimonies on mold insurance coverage By: Jim Belew, Courier staff Stanley J. Briers, chairman of the Texas Plumbing, Air Conditioning & Mechanical Contractors Association, said the state insurance commission, state board of health and related agencies should set good, solid building and inspection codes and require homebuilders to abide by them. "Unless we get everyone involved," he said, "homebuilders will dilute the process." 

Sept 14, 2001 Homeowners face insurance officials on mold coverage  By SHANNON BUGGS  Houston Chronicle "You can't let the insurance companies off the hook," said Sharon Wichterich, who had to leave her Sugar Land home when mold was found growing in it this spring. "Their practices are now causing a good portion of the mold damage." 

Sept 11 2001 Water, Mold Claims Surge. Insurers fret about homeowner policies, seek shield from state By TERRENCE STUTZ / The Dallas Morning News

"I can't dispute their numbers, but we don't know if this is a short-term spike or a long-term trend," Dan Lambe of Texas Watch said. 

"The real question is: 'What is causing the increase?' Is it because insurance companies are reacting slowly to these claims? Is it price gouging in the repair of these homes? Is it because of faulty materials being used in construction?" he asked. 

"Nobody has been able to answer that. And how can you take away protections for Texas homeowners simply because of a problem that may be only temporary?" 

Sep 6, 2001 Lawsuit calls mortgage fees illegal  Kickbacks to Countrywide cited  By MARY FLOOD  Copyright 2001 Houston Chronicle Lawyers estimate more than 50,000 Texans who bought their homes with a Countrywide mortgage from Jan. 10, 1996, through now could be involved in the lawsuit. The maximum a homeowner who paid $175 for the legal documents could recover would be about $1,750. Most, however, would be eligible for about $700. 

Sep 6, 2001  Mold forces family from home  By Brandy Ralston  KENS 5 Eyewitness News  Mold has forced a San Antonio family to evacuate their North East Side home. 

Sep 6, 2001 Groups differ on insurance rates for wind  By Bob Richter  Express-News Austin Bureau  AUSTIN s Citing costs, including predictions of future losses from mold claims, the Texas Windstorm Insurance Association asked the Texas Department of Insurance on Wednesday for a 13.6 percent rate increase on hail/windstorm insurance premiums for commercial buildings.

Sep 5, 2001 Insurance Cost to Homeowners Climbs Sharply  By JOSEPH B. TREASTER New York Times. In Texas, for example, Tricia Beaugh wound up with sticker shock on the renewal of her policy. In May, Allstate raised the cost of the $94,000 policy on her three-bedroom brick veneer house in Humble, near Houston, to $670, up 56 percent, from $430 the previous year.

Sep 5, 2001 Attorney General Launches Probe Into Crossmann Communities Complaints Of Shoddy Construction Prompts Investigation INDIANAPOLIS-- Prompted by dozens of complaints about shoddy home construction, Indiana Attorney General Steve Carter has opened an investigation of developer Crossmann Communities Inc. 

Sep 5, 2001 Local Homebuilder Under Investigation  WISH-TV Indiana  The Indiana Attorney General's office is investigating complaints about the biggest homebuilder in the state. The state wants to know if Crossmann Communities sold homes they knew were badly built, and in some cases, with dangerous defects. The I-Team's Karen Hensel broke this story in an I-Team investigation.

Sep 5, 2001 The Silent Killers  CBS 48 Hours. How can you die on a plane that lands safely? And how can your own house kill you? It seems that danger lurks in the most mundane of circumstances. 

Sep 3, 2001 Texas Building Science 2001 design strategies for residential construction Featuring Joe Lstiburek of  Building Science Corporation September 27, 8:30 am - 4:30 pm
J. W. Marriott Hotel, Houston, Texas

Aug 31, 2001 Insurers urged to rethink new rules on mold By Shonda Novak American-Statesman Staff "One of the biggest problems we are seeing is insurance companies not properly handling these `water damage' claims, or denying them or dragging their feet. That is what often leads to a mold problem in a house. We need to make sure insurance companies are adequately eradicating all water damage so no mold problems occur."

Aug 31, 2001 State seeks halt of mold limits  By Natalie Gott  Associated Press "The economic impact of mold on the Texas economy could be severe," Ray said. "This issue has the potential to paralyze the homebuilding and mortgage banking industries and the consumers they serve." 

Aug 31, 2001 Insurers asked to be calm on mold  State wants more time to assess claims surge  By SHANNON BUGGS  Copyright 2001 Houston Chronicle "Rather than exclude mold damage and water damage altogether, calmer voices need to prevail," said Rob Schneider, a staff attorney in Austin for Consumers Union. "We need to look at what's really going on. And right now we don't know what that is." 

Aug 30, 2001 Regulator asks insurers to bring back mold policies  Associated Press  AUSTIN - Insurance Commissioner Jose Montemayor asked the state's top 20 home insurers today to stop restrictive marketing practices some have taken in response to the past year's surge in mold claims. 

Aug 30, 2001 Mold & Moisture Bankrupt Big Builder   How quickly after a new home is built can the walls develop serious mold problems? In the case of Cincinnati builder Zaring Homes, the answer was ten weeks. Zaring Homes was building over 1,500 homes a year during the mid-1990s, with annual profits of over $6 million, and when dozens of its new homes became moldy in 1999, the company committed itself to fixing the problems. But the remedies soon became so expensive that the liabilities drove the company to bankruptcy.

The Zaring story shows how small decisions can have enormous consequences for a builder. Early on in the moisture investigation, Vamosi gave some advice to Allen Zaring, the founder of Zaring Homes. "I told him, 'If you add another inch and a half of insulation to the walls, you will avoid the dew-point conditions,'" recalls Vamosi. "Zaring answered, 'I can't do that because it costs too much. No one else is doing that.' But look what happened to Zaring."

Aug 30, 2001 Added a Royce Michael Thomas Enclave Homes page from Houston Texas.

Aug 28, 2001 Commissioner urges consumers, insurers to wait on mold decision  Associated Press  AUSTIN -- Texas Insurance Commissioner Jose Montemayor on Monday asked for patience from consumers and the insurance industry as he works to solve problems with water and mold insurance. 

Aug 26, 2001 Various Mold Related Articles:

Mold problem across state for insurers. Karen Wilson, a real estate agent in Round Rock, said she has seen house closings delayed in the last few weeks because home buyers couldn't get insurance.  "This would be devastating to the housing market in Texas if most insurance companies take similar action," Wilson said.
Fear of the Unknown-The Mold Issue Raises More Questions than Answers  By Catherine Tapia. InsuranceJournal.com. And when construction defect gets thrown into the mix, things can really get interesting. In fact, the fusion of mold claims with construction defect claims is looked upon by some as the part of the issue that is truly affecting premiums and reinsurance. 
UTSA reopens dorm after taking care of mold  By Matt Flores  San Antonio Express-News  Nearly three months after toxic molds forced the evacuation of hundreds of students from UTSA's only dormitory, university officials opened the doors to Chisholm Hall on Thursday, just days before the academic year is set to begin.
Insurance companies, consumers' groups at odds over mold insurance From staff and wire reports WacoTrib.com "It could be a big problem for us if they find mold in a house and no insurance agent is willing to cover it," said Tammy Tull, a realtor with Kelly Realtors in Waco, who said she has mold problems at her own home. "Remediation is massive and it's very expensive, and I don't know of any buyer who is going to want to enter into those circumstances."
Insurers defend coverage denial      By R.A. DYER  Star-Telegram Austin Bureau   AUSTIN - Insurers could not use prior water damage claims as an excuse to deny new homeowners coverage under a proposal before Insurance Commissioner Jose Montemayor.

Aug 25, 2001 Put mold on hold Arm yourself with knowledge to minimize damage By DENNIS HUSPENI / Special Contributor to The Dallas Morning News But don't panic. Most household mold problems aren't anywhere near that severe. First, learn the basics of mold. Next, educate yourself on how to clean mold properly to prevent it from spreading. 

Aug 25,2001 What you can expect from mold contamination: Essay: Unwelcome discovery shatters a sense of security A family fights mold to preserve health and sanity for a new life together in a dream home By KIM RADTKE BANNISTER / Special Contributor to The Dallas Morning News. At this point, something in me snapped. As I watched all our clothes, shoes, linens and even my purses being bagged for professional cleaning, I felt tears running down my cheeks. I was exhausted, frustrated and at the point of giving up hope not only on the dream of our home, but also in the quality of life as we once knew it. 

Aug 24, 2001 From the Texas Supreme Court Concerning Perry Homes: THE FOLLOWING PETITIONS FOR REVIEW ARE DENIED:  01-0135]]]]PERRY HOMES, a joint venture v. AZIZ ALWATTARI and HAJER ALWATTARI; from Tarrant County; 2nd district (02-98-00106-CV, 33 SW3d 376, 11-02-00) 

NOTE:  The jury ruled in favor of the homeowner. The appeal court did too. The builders then tried to change the law by filing Texas Senate Bill SB623 which did not pass. Now they Supreme Court has ruled. All over $2800. Is this lawsuit abuse or what? For background info read Perry Homes v. Alwattari NO. 2-98-106-CV.

Aug 24, 2001 State to question Branchburg official  BY JENNIFER DEL MEDICO STAR-LEDGER STAFF. State investigators plan to question Branchburg officials today about the faulty construction of a Robbins Road home approved by township inspectors. More to follow!

Aug 23, 2001 South Carolina Considers Home Lemon Law! Home Lemon Law? Greenville Representative, Mike Easterday, has been enlisted by an Upstate family unhappy with how a large, national home builder has handled their home's problems. Brian and Lorinda Couch have been fighting Pulte Homes for more than 5 years now to first fix, and now re-buy their home. As the opponents head towards arbitration to settle their differences, the Couch family has come up, with the help of HomeOwners For Better Building, the idea of a Home Lemon Law. 

NOTE: Briand and Lorida Couch were featured on NBC Dateline "Reading the fine print"

Aug 23, 2001 Allstate limits policies for homes   If water-damaged, restrictions apply By DAVID KAPLAN  Copyright 2001 Houston Chronicle  Homeowners whose dwellings have suffered water damage within the past three years will not be able to buy new policies from Allstate Insurance Co., but current policyholders will not be affected. 

Aug 23, 2001 Mold And Moisture -- So Perfect Together by Stuart Lieberman California is always at the lead in lifestyle and health related issues. It is again in the lead when it comes to mold protection with a pending law called the "Mold Protection Act (SB 732)," which requires sellers or renters to provide disclosure to purchasers and tenants about mold. In addition, the state health department is required under the legislation to adopt regulations concerning permissible exposure limits of mold. 

Aug 22, 2001 NEXT MOLD HEARING IN HOUSTON SEPT 13 ASTRO ARENA Join HOBB for breakout sessions, and press conference. Support our call for interim committee hearings by the TX Senate and House. Details coming soon!

Aug 22, 2001 Water damage claims holding up Texas home sales  Associated Press via Dallas Morning News and Houston Chronicle. "This would be devastating to the housing market in Texas if most insurance companies take similar action," said Karen Wilson, a real estate agent in Round Rock who has seen house closings delayed in the last few weeks because home buyers couldn't get insurance. 

NOTE: This mold issue is affecting EVERYONE! The builders are being sued. The insurance companies are paying overwhelming claims. The homeowners are devestated. The mortgage companies will get foreclosed homes that are worthless. The realtors won't be able to sell the homes. The neighbors are getting their homes devalued by living next to a mold home. We are ALL losing!

Aug 22, 2001 Audio of Corpus Christi Hearing on Mold Exclusion available .

Aug 22, 2001 Insurers scolded at mold hearing.  By Adolfo Pesquera  Express-News Business Writer "Don't you think you have a responsibility to know what claims may come up because the building materials are not what they should be?" Truan asked.  "It would be better to reduce claims by improving construction methods, not by blaming consumers of hysteria," Truan continued. "If you are in agreement with that, then we need to come together instead of attempting to run away from the responsibility we have to the people of Texas."

See how a product (EIFS) has caused great misery to both the builder and homeowners of Lifefomr Homes in The Woodlands, TX. 

From Realty Times: "The National Association of Home Builders (NAHB), representing over 60,000 home builders nation wide, told Dateline that synthetic stucco, even if it meticulously applied and maintained, "Isn't compatible with the existing wood frame construction methods in the United States." They went on to say that homes with synthetic stucco "develops moisture intrusion problems even when properly constructed according to industry standards" 

Aug 22, 2001 Debating the mold issue 300 attend local hearing. Stories are shared on claim delays, illnesses; insurance industry tells of rising costs  By Naomi Snyder Caller-Times. Truan called for immediate action on the mold problem, asking the Department of Insurance to strengthen building standards and spell out the types of mold damage to be covered and the insurer's responsibility. 

Aug 21, 2001 Standing Up for Texas Homeowners by Texas Watch. Before the Commissioner of Insurance responds to these insurance company threats and scare tactics, several questions beg answers: ]

• Are now routine insurance company delays in responding to water damage claims contributing to the growth of these toxic molds? ]
• Are new home-building materials fostering the growth of molds? ]
• Are insurance companies and contractors cleaning mold cost effectively? ]
• Are there techniques or technologies that could prevent the development of toxic molds? ]
• Are mold claims a growing trend or a short lived problem that will resolve itself once claims adjusters and contractors get a better handle on how to handle such claims? ]

Aug 22, 2001 Consumers Union Statement on Coverage for Mold or Other Fungi  By Rob Schneider, Consumers Union. However, imagine the financial devastation that would have resulted if the contamination had been of my home and there was no coverage under the HO policy. Few families could afford to keep up mortgage payments, pay for an additional place to live, and restore their homes to a safe and healthy place to live. ]

Aug 21, 2001 Guidelines sought on mold damage  Truan wants insurance commissioner to act under existing laws By Neal Falgoust Caller-Times. HomeOwners for Better Building has asked acting Lt. Gov. Bill Ratliff to request legislative committee hearings on issues surrounding the coverage of mold claims by companies who write homeowner insurance policies.  ]Nick Voinis, a spokesman for the lieutenant governor's office, said a decision from Ratliff on the hearings should be made by Sept. 1. 

Actually we have asked for hearings to determine the cause of mold, how to prevent it and how to destory it so we can protect everyone involved, the builders, the insurance companies, the mortgage companies, and most imprtant, the homeowners who have lost their "investment" of their "American Dream".

Aug 20, 2001 HomeOwners for Better Building Press Conference:  Kick-off Campaign for the Home Lemon Law and Mold crisis in South Carolina.  Wednesday, August 22, 2001,  11:00 a.m. Columbia, S.C.  Capitol "State House" Steps. National President of HomeOwners For Better Building, Janet Ahmad will be holding a press conference along with representative Michael Easterday to kick off a Nationwide Home Lemon Law campaign beginning in Columbia S.C.   Mrs. Ahmad and  State Representatives will then tour South Carolina homes with construction defects, starting at Gleneagle subdivision built by Pulte Homes.  The final home on the tour will be held in Greenville, S.C. at 6:00 p.m., home of Brian and Lorinda Couch who were featured on Dateline NBC, "Reading the Fine Print".  Lorinda Couch, N.C. President for HomeOwners for Better Building is actively leading the efforts for a Home Lemon Law in the Carolinams.   See Related Stories:

• April 17, 2001 Dateline NBC:"Reading the fine print" Do home warranties offer protection for buyers?. Dateline NBC April 17, 2001. With warranties like this, a Lemon Law is needed!
• May 27, 2001 Pulte's Zeumer (appeared on Dateline) writes concerning Jim Blackstones' house (home eventually bought back). Notice has the highlighted text is similiar to  the CEO's response to Datelines story. Insuring homeowners are "satisfied and delighted" seems to be a theme in these letters.
• May 24, 2001 Pulte CEO Responds to NBC's Dateline Story   Erik Gabrielson, HousingZone.com Editor "Among some of the important facts presented to Dateline, but omitted from  their story, is that Pulte Homes has one of, if not the best, warranties in  the industry." Read the entire statement with commentary.
• May 17, 2001 NAHB Blasts Datelinems Report On New Home Warranties. "Datelinems April 17 report was a one-sided and unfair portrayal of the home building industry and 10-year insured warranties on new homes. It sensationalized the issue and served only to needlessly alarm prospective home buying consumers."

Aug 20, 2001 HomeOwners for Better Building Press Release. Mold Hearings Corpus Christi Tx: Homeowner for Better Building has had meetings with the Governorms office and Attorney Generalms staff and is optimistic of a solution to this crisis.  All indications are that there will be Interim Committee Hearings to address solutions to the mold crisis, construction defects and a home lemon law that was introduced this last session by Senator Leticia Van de Putte. 

Aug 17, 2001 Corzine asks probe of scheme BY TED SHERMAN STAR-LEDGER STAFF U.S. Sen. Jon Corzine called on the Department of Housing and Urban Development yesterday to investigate a real estate scheme that left dozens of first-time New Jersey homebuyers with inflated mortgages and extensive repairs. He said he will also push for Senate hearings into the deals.

Aug 17, 2001 Fraud probe widens into home deals  BY TED SHERMAN STAR-LEDGER STAFF A real estate operation that targeted dozens of first-time home buyers in Essex and Union counties with quick-turnaround deals is now the focus of a state criminal investigation looking into allegations of widespread fraud. Also see:

July 15, 2001 Preying on Homeowners Tony Pugh Knight Ridder Tribune. Predatory practices.Among tactics predatory lenders use are these: 

Equity stripping -- A relatively large loan is made based on the equity in a property instead of the borrower's ability to repay. When the borrower can't make the payments, the lender acquires the equity and, often, the property, through foreclosure. 

Flipping -- A lender persuades a borrower to refinance a loan repeatedly. Each transaction earns the lender fees while driving the borrower further into debt. 

Home improvement loans -- A contractor gains a borrower's consent for a home improvement loan with exorbitant interest rates and fees. A variant: At the end of the demolition phase, the contractor demands that the borrower sign a loan at an even higher interest rate. 

Mandatory arbitration clauses -- These agreements, popular with loan makers, waive the borrower's right to a jury trial. Loan disputes usually must be settled by an arbitrator of the lender's choosing. 

Packing -- The borrower lards a loan agreement with costly and unnecessary insurance policies. Their cost is added to the loan's principal. 

Aug 15, 2001 www.windowsettlement.comA class action lawsuit was filed in the District Court of the State of Minnesota for the County of Hennepin called OmHara v. Marvin Lumber and Cedar Company, and Marvin Windows of Tennessee, Inc., Court File No. 00-14027. Plaintiffs sought damages in connection with the premature wood rot of Marvin doors and windows manufactured between 1985 through 1989 and treated with a defective wood preservative, commonly known as PILT.

Aug 15, 2001 WHAT DO HOME BUYERS WANT? News Release by the NAHB. You may be surprised to learn that while about half of survey respondents prefer a larger family room and no living room at all, separate laundry rooms, dining rooms and home offices are high on consumers' wish lists.

HomeOwners for Better Building believe new homebuyers want confidence in their purchase via a Home Lemon Law. Visit our poll on this topic.Aug 12, 2001 Haunted by Mold  By LISA BELKIN New York Times Magazine. Warning: Reading this story might make you sick. Not as sick as Melinda Ballard and her family, who began coughing up blood and suffering memory loss while living in this 22-room, 11,000-square-foot mansion. But it could make your skin itch and your throat hurt, and you could start to cough. Then you will wonder whether there is toxic mold growing in your house, too, and whether you should pay someone a great deal of money to come find out. 

Aug 8, 2001 Protecting Your home. Insurance Department seeks to shape its policy on mold remediation. by Dean Fleming and Steven D. Jansma attorneys with Fulbright & Jaworski LLP in San Antonio. " In the wake of a $32 million verdict awarded to a Dripping Springs couple, the Texas Department of Insurance is considering an insurance company's request to eliminate coverage for black mold and other fungi under homeowners' policies. "

Note: The verdict against Farmers included the F word. FRAUD. We should be having a hearing to exlude Farmers from selling insurance in Texas instead of excluding mold coverage.

Aug 7, 2001 Residents battle gravel mine  By George Lane Denver Post Staff Writer A 124-acre gravel mine that could be authorized to operate within 200 feet of relatively new homes in eastern Brighton has prompted residents of the Platte River Ranch subdivision to organize and prepare for a fight. 

Dennis Welsch, president of homebuilder KB Home, said his company didn't know about the gravel mine, either, when the houses were sold. He said it now is encouraging the city and Ready Mix Concrete, which would run the mining operation, to address residents' concerns. [Why isn't the number one homebuilder standing and fighting with their homebuyers?]

At KB HOME, we're committed to building one home at a time. One family at a time. Because when it comes to our success as a homebuilder, the one person that matters most is you. And that's why we're the number one homebuilder in all the places we build. --from KBHomes website. www.kbhomes.com

Aug 7, 2001 Another Pulte Home Problem in San Antonio Texas. 3 months waiting for Pulte's repairs.
Aug 7, 2001 CBS Evening News Black Mold: Creeping Destruction  It Destroys Houses And Makes Residents Sick. Alda Brunson's home sits empty. Its value plummeted from $250,000 to just $1,000. As she waits to go to trial, she continues paying the mortgage on what is essentially a worthless home. Says she: "We're just sitting here, watching our house rot."

Aug 7, 2001 EIFSFACTS.ORG. THE  source of info on EIFS.

Aug 7, 2001 'Explosion' of Cases Involving Synthetic Stucco Being Filed.  Synthetic material often damaged by water; lawyers see a continuing wave of suits  Alan Fisk The National Law Journal. The Staffords tried for months to get the homebuilder to fix the damage, she says. When they got no help, they hired an attorney. A Fairfax County Circuit Court jury recently awarded the Staffords a $1.028 million verdict against the builder. Stafford v. Country Developers Inc., No. 181-455. 

See Also:

EIFSFACTS.ORG. THE source of info on EIFS.

DATELINE INVESTIGATION Is your home crumbling around you?  Itms happening to new homes across the country s find out more from a kDatelinem investigation NBC NEWS March 22 s You spend a lot of time looking, do all the legwork, invest your heart and soul in it, not to mention your savings. And finally, you own a piece of the lAmerican Dreamn s your own home. But what if the brand new house you worked so hard for begins to crumble around you? Itms happening to new homes around the country. Is it just a case of, lthey donmt build kem like they used to?n Or is there more to the story? Chief consumer correspondent Lea Thompson reports with a lDatelinen Investigation. 

Aug 7, 2001 What will mold cost us? Mary Umberger Chicago Tribune. "More than 70 families in Texas are suing their builder and the manufacturer of a synthetic stucco used on their houses, claiming that the material traps moisture behind walls, leading to mold growth. One-third of the plaintiffs say they have mold-related illnesses." See Also:
 

Jul 22, 2001 Do you have a mold problem? 
Jul 22, 2001 Where and why mold occurs in the home
Jul 22, 2001 Molds to watch for

Aug 3, 2001 Are Texas New Homebuyers Under Siege? Have we lost the confidence in hew home purchases? Is the latest round of stopping new home insurance policies, just another nail in the coffin for consumer protection for "the biggest investment of your life"? 

Will our new homes be protected from the devastating effects of mold?
Farmers halts new Texas home insurance By Laura Elder Corpus Christi Caller-Times "I don't have a bone to pick with Farmers, but this is really poor timing. Maybe citizens of Texas need to look at this and help Farmers make their decision. Maybe we should tell them, 'don't let the door hit you in the ass.' "
Second insurer to end home policies. Progressive will not accept new business By Terrence Stutz / The Dallas Morning News AUSTIN ? A second insurer has joined Farmers Insurance Group in halting the sale of new homeowners policies in Texas because of potential losses from water damage and mold claims. .
Are our new homes being built with quality products?
A stucco nightmare Brokers warned about high incidence of
EIFS-related buyer lawsuits By]Julie Clairmont Inman News Features. Numerous individual and class-action lawsuits over a synthetic stucco called EIFS have prompted a number of states to mandate property disclosure forms for the protection of real estate brokers. 
Are our new homes being inspected adequately?
Roddy Stinson: 'I shudder to think' about new-home inspections San Antonio Express-News Can San Antonians purchase a new home with complete confidence that all essential inspections have been conducted?
Are our new home warranties adequate?
Dateline NBC:"Reading the fine print" Do home warranties offer protection for buyers?. Dateline NBC April 17, 2001. With warranties like this, a Lemon Law is needed!
Will the Texas Supreme Court strip new homeowners of the implied warranty of good workmanship and baitability?
Texas Homebuilders no longer guarantee well built homes. Buecher et al, v. Centex Homes case summary provided by Dan Lambe of Texas Watch:  888-738-4226 danlambe@texaswatch.org. This case will be heard Nov 29,2000 in the TX Supreme Court. The outcome will affect ALL consumers.
Have new homeowners lost their constitutional rights to a civil trial for construction defects? 
Court ruling upholds binding arbitration. Consumers can be barred from lawsuits  Associated Press AUSTIN -- Consumers who complain about defective products can be forced into binding arbitration and barred from suing the manufacturer, the Texas Supreme Court ruled on Thursday. 
Are our new home loans financially protected?
Panel hears predatory lending tales  By TONY PUGH  Knight-Ridder Tribune News  Heartbreaking tales of lost homes, lost savings and unethical loan officers dominated Senate hearings last week into unethical practices in the high-risk mortgage industry. 
Are new homebuilders losing so much money, our rights as consumers must be trampled?
KB said on June 26 that its second-quarter earnings rose 42.6 percent,
Profit Increases 56 Percent at Dallas-Based Construction Firm Centex Corp. Source: The Dallas Morning News Jul. 19 2001Dallas-based Centex Corp. reported a 56 percent jump in profit 
Builder D.R. Horton Inc. (NYSE:DHI - news) on Thursday reported a 43 percent rise in fiscal third-quarter net income
Pulte Homes Inc. (NYSE:PHM - news) said on Tuesday that its second-quarter earnings rose 27 percent
Homebuilder Ryland Group Inc. (NYSE:RYL - news) on Monday reported a 90 percent jump in second-quarter earnings, 

Aug 3, 2001 Second insurer to end home policies. Progressive will not accept new business By Terrence Stutz  The Dallas Morning News AUSTIN ? A second insurer has joined Farmers Insurance Group in halting the sale of new homeowners policies in Texas because of potential losses from water damage and mold claims. 

Aug 3, 2001 Test results prove dangerous mold in Bexar County Courthouse  By Brandy Ralston  KENS 5 Eyewitness News 

Aug 2, 2001 [ABOT] Insurance carriers hit with fines  Must pay medical bills  By CLAY ROBISON Houston Chronicle Austin Bureau . Perry vetoed the measure at the urging of civil justice reformers and other business groups because it would have removed arbitration as an option for settling health insurance claims. [Mandatory and binding arbitration is NOT an option. It is the ONLY option.]

Texans for Lawsuit Reform, which urged the veto, praised the fines. "Governor Perry promised Texas doctors he would help them with slow paying insurance companies, and he has," said the group's president, Dick Weekley. 

NOTE: Dick Weekley is the brother of David Weekley. See also July 20, 2001  Perry's veto still a bitter pill for doctors By Gary Susswein American-Statesman Staff. Binding Arbitration clauses rip hearts out of doctors. "Perry said he vetoed the bill because it would have prevented insurers from settling disputes through alternate methods or binding arbitration, would have encouraged frivolous lawsuits and would have driven up the cost of health insurance."

Aug 1, 2001 KBHomes. Again. Council to face zoning change  Brighton may allow gravel pits near river By Berny Morson, News Staff Writer BRIGHTON -- Karen Edmonds owns lakefront property.  She just has to wait a decade or more while a gravel company digs the lake behind her duplex in the Platte River Ranch subdivision. 

KB Home mentioned nothing about a gravel mine when the lots were for sale, Edmonds said.  KB Home President Dennis Welsch said his company didn't know anything about mining when the lots were sold. 

Aug 1, 2001 U.S. Home problems go beyond Sarasota, investigation shows  By Michael Pollick  STAFF WRITER "U.S. Home sees its Zero-Defect Warranty as a comprehensive and a viable remedy to the defects in the houses. "

Also note: "Within the past month, U.S. Home ended a yearlong feud over water intrusion in the gated community of Turtle Rock in south Sarasota by buying back four two-story homes -- $1 million worth of housing -- from their owners and making county-supervised repairs to 14 other two-story stucco models. Housing-code violations found in Turtle Rock also have prompted ongoing investigations by two state agencies. "

Also see:

Aug 8, 1999 U.S. Home problems go beyond Sarasota, investigation shows 
Sandra Caballero keeps a dozen plug-in Glade air deodorizers operating at all times in her family's two-story home at Heather Lakes in Brandon "You have to, because otherwise you get this musty smell in your house," she said. 08/08/99

July 31, 2001 When the going gets tough....what does Farmers do?

Farmers halts new Texas home insurance By Laura Elder Corpus Christi Caller-Times "I don't have a bone to pick with Farmers, but this is really poor timing. Maybe citizens of Texas need to look at this and help Farmers make their decision. Maybe we should tell them, 'don't let the door hit you in the ass.' "
Farmers Insurance to stop selling homeowners policies covering water damage  By SHANNON BUGGS Houston Chronicle."Seventy percent of all the mold claims in the United States for Farmers come out of Texas," Miller said.  And it's in Texas where a jury found Farmers committed fraud in delaying payment to repair a plumbing leak in an Austin-area couple's home and awarded the family $32 million. 
Farmers Insurance Calls a Halt to Covering Losses from Water Damage  KHOU TV Houston DALLAS (AP) -- Water damage and outbreaks of mold have strained the coffers of some of Texas' top home-insurance companies, prompting a moratorium by one company on new policies that cover water damage.
Farmers to stop selling water coverage for Texas homes  Associated Press  Houston Chronicle. Farmers Insurance Group, the state's second largest insurer, says rising losses from mold and other claims will cause it to stop selling new homeowners policies in Texas that cover water damage. 

July 31, 2001 Roddy Stinson: 'I shudder to think' about new-home inspectionsSan Antonio Express-News Can San Antonians purchase a new home with complete confidence that all essential inspections have been conducted?

July 31, 2001 Toxic Texas Mold  National Public Radio Real Audio. http://www.npr.org/ramfiles/me/20010730.me.07.ram>
Janet Heimlich reports from Austin, Texas, where complaints over toxic mold are worrying many people, including insurance companies. Because of the large number of claims filed for damages caused by mold, insurance officials in Texas are taking a closer look at their home insurance policies. 

July 30, 2001 Mold case decision now faces mediation By Kevin Carmody American-Statesman Staff A Travis County judge appointed a mediator Monday to help reach a settlement in the mold contamination lawsuit that produced a $32 million verdict against Farmers Insurance Group. 

July 30, 2001 Houston Mold Hearing Set. Insurance Commissioner Jose Montemayor will hold an informational hearing on mold coverage provided in Texas residential property insurance policies on Thursday, September 13, in Houston. (July 30, 2001)

July 30, 2001 Breaking the mold......before the mold breaks us. Lowly fungus continues to prove costly Barbara Marquand  State and national interest groups have sprung up and task forces have formed. Lawmakers are weighing in, and lawsuits are multiplying. Even the activist who inspired a Hollywood blockbuster -- Erin Brockovich -- is battling mold. 

July 29, 2001 Panel hears predatory lending tales  By TONY PUGH  Knight-Ridder Tribune News  Heartbreaking tales of lost homes, lost savings and unethical loan officers dominated Senate hearings last week into unethical practices in the high-risk mortgage industry. 

July 29, 2001 Mold a growing problem. A complete section from the San Antonio Express News. Including:

1. Texas is battleground in rising insurance claims 
2. Risks to people remain a mystery 
3. Mold can take over houses 
4. Senator, family sent packing from home 

July 29, 2001 Household mold a growing concern By Emanuel Gonzales  San Antonio Express-News 
"Gov. Rick Perry and Attorney General John Cornyn have both indicated their interest in the mold issue, but believe the insurance commissioner is rightly taking the lead."

NOTE: After HOBB's meeting with the  Insurance Commisioner Jose Montemayor, the Gov. Office, and the Attorney General's Office, we are optimistic our elected Officials will be taking a serious look at construction defects which is the major contributing factor to the growth of mold and it's related health issues.

"It's a public panic that is being driven by trial lawyers and plaintiffs looking to turn a quick buck, by men in space suits who do the air testing and cleaning and by the news media." --San Antonio allergist Robert Jacobs

NOTE: Read the Ballard vs Farmers Verdict. 13 of 13 counts, all against Farmers. Including FRAUD. After found to have committed FRAUD, Farmers asks for a hearing  for exclusion to mold. The only hearing we should have is to determine why Texas is allowing an insurance company to committ FRAUD and still sell insurance in Texas! Whe only hearing we should have is to learn why they still have a license to do business in Texas. The only hearing we should have is to determine when the Texas AG will begin an investigation into Farmers Insurance.

100 years ago, when a man stole your horse or cattle, or committed FRAUD the only hearing they would have had was to decide which tree to use.

Also see:
June 28, 2001 Mold Coverage from Amarillo Globe Insurers fight paying for mold   By Deon Daugherty  ddaugherty@hotmail.com As for the multiplying claims, Rogers said part of the surge is greater public awareness, public hysteria and plaintiffs attorneys who believe "mold is gold."

NOTE: Could Mr. Rogers be one of the Farmer's attorneys who lost Farmer's stockholders $32 Million in Ballard vs Farmers? If so, how much "gold" did he receive from this lawsuit from his fees? And how much would he have lost, if he had told Farmer's to stand behind their coverage and not behind their attorneys?

And just how much credibility can an attorney have after just losing $32  million?

July 28, 2001 Homebuilders Earnings:

1. KB said on June 26 that its second-quarter earnings rose 42.6 percent, beating Wall Street estimates, due to strong demand, better margins and bigger profits at its mortgage banking business. Competitor Lennar Corp. (NYSE:LEN - news) second-quarter results also beat expectations. 
2. Profit Increases 56 Percent at Dallas-Based Construction Firm Centex Corp. Source: The Dallas Morning News Jul. 19 2001Dallas-based Centex Corp. reported a 56 percent jump in profit on Wednesday as a result of big increases in home sales and financial services income.
3. Builder D.R. Horton Inc. (NYSE:DHI - news) on Thursday reported a 43 percent rise in fiscal third-quarter net income and a 21 percent rise in net sales. It said it expects fiscal 2001 and fiscal 2002 earnings to be above analysts' consensus estimates.
4. Pulte Homes Inc. (NYSE:PHM - news) said on Tuesday that its second-quarter earnings rose 27 percent as an increase in home prices offset a decline in the number of closed sales.

Homebuilder Ryland Group Inc. (NYSE:RYL - news) on Monday reported a 90 percent jump in second-quarter earnings, as home sales and and home prices rose, and raised its full-year earnings expectations to $7.50 per share.

July 27, 2001 International home builder buys into local market By Earl Daniels  Times-Union business writer "The similarities are that Jacksonville, like San Antonio, has a significant consumer base, positive job growth, a growing population, and demographically they are similar," said Albert Praw, senior vice-president of asset management and acquisition at KB Home. See Also:

1. Soggy-subdivision probe digs into approval data   By Adolfo Pesquera San Antonio  Express-News Business Writer   KB Home's troubled Northampton development has become the target of a federal investigation amid allegations that the developer-homebuilder may have falsified information to obtain U.S. Department of Housing and Urban Development approval.
2. Letter to Texas Senator Phil Gramm from the Veteran's Administration concerning the North Hampton Subdivision.
3. Letter from the TNRCC (PDF Format) concerning the North Hampton Subdivision to Jaent Ahmad, HomeOwners for Better Building.

July 26, 2001 Builder crowd up for count. New state procedure was created to curb defrauding of buyersBy Robert Nusgart Sun Real Estate Editor The legislation that created the Home Builder Registration Unit came after years of debate between lawmakers and industry trade associations. The unit's prime purpose is to prevent rogue or inept builders from defrauding or fleecing buyers by intentionally shutting down operations in one county and opening up business in another venue under a new name.

Consumers can go to the unit's Web site at http://www.oag.state.md.us/Homebuilder to find out if a particular builder is registered. 

July 26, 2001 National RV Tour To Expose New Home Ills by Broderick Perkins  Experienced whistle-blowers Jeff and Susan Treganowan of Livingston, TX are off on a 10-month national campaign from Atlanta, GA to Woodland, CA, to alert consumers and public officials to new home industry ills while they push a new book written for the same audiences. 

July 24, 2001 Homeowners take action against developers over construction flaws By FRED LUDWIG, Californian staff writer  e-mail: fludwig@bakersfield.com. The Northshore suit names Centex, a national homebuilder. Company spokesman Neil Devroy said officials had not received a copy of the lawsuit and are not aware of open warranty issues with customers. The company in general works to resolve such complaints out of court, he said.  "If our customers have problems, we go out and fix those problems for them," Devroy said.

July 21, 2001 Insurer delays mold hearing  By Adolfo Pesquera  Express-News Business Writer Citing the current "uncertainty" over mold, State Farm Lloyds backed off a planned hearing before the state's insurance commissioner in Austin on its application to exclude mold damage and cracked foundations from homeowners policies.

NOTE: This hearing was "snuck" under the back door of the TDI and would have been devastating to homeowners. Thanks to volunteers and concerned homeowners, this sneaky attempt has been stopped.

July 21, 2001 State Farm Hearing on Mold POSTPONED! THERE WILL BE NO MEETING AT THE TDI OFFICES IN AUSTIN ON JULY 24, 2001.

State Farm, only minutes ago, asked the TDI to POSTPONE that hearing. The TDI  agreed. State Farm said that they want to wait to see what changes are made  by the TDI regarding mold exclusion (proposed by Farmers Insurance) before  revisiting these new proposed language changes. 

In my humble opinion, I believe that State Farm saw the writing on the wall  and doesn't want to be put in the position Farmers Insurance found itself ]in  about a month ago when hundreds of angry homeowners declared "open mike   season" on them. During that hearing, homeowners told horror stories about how Farmers handled  their water damage claims and that such mishandling resulted in toxic mold  infestations that destroyed their homes, possessions and health). 

July 21 Profit Increases 56 Percent at Dallas-Based Construction Firm Centex Corp.
Source: The Dallas Morning News Jul. 19 2001Dallas-based Centex Corp. reported a 56 percent jump in profit on Wednesday as a result of big increases in home sales and financial services income.

NOTE: And yet even with this windfall, Centex has asked the Texas Supreme Court to relieve them of the implied warranty of good workmanship and habitability. See Centex Vs Buescher

July 20, 2001  FLASHING] PROBLEMS] WITH] AUSTIN] HOMES compliments of: Real Estate Inspector .Com "Providing Quality Home Inspections in Austin, Texas" 512-923-5361] or] newsletter@realestateinspector.com. "A large percentage of Austin's construction problems are water issues that can usually be traced back to the omission of or incorrect installation of roof and wall flashing."

July 20, 2001  Perry's veto still a bitter pill for doctors By Gary Susswein American-Statesman Staff. Binding Arbitration clauses rip hearts out of doctors. "Perry said he vetoed the bill because it would have prevented insurers from settling disputes through alternate methods or binding arbitration, would have encouraged frivolous lawsuits and would have driven up the cost of health insurance."

July 19, 2001 Horton completes Emerald acquisition  Home builder picks up 715 homes under contract Inman News Features  The Emerald assets acquired include a backlog of 715 homes under contract that totaled approximately $130 million at June 30, 2001.

July 19, 2001 Insurers cite mold, flood claims in seeking higher rates Associated Press (Austin-AP) -- Insurers are asking for increases averaging 3.5% in standard homeowners insurance rates in Texas. 

July 19, 2001 Insurers seek rate increase to cover mold and Houston's flood  Associated Press  AUSTIN - Jay Thompson of the Insurance Council of Texas said much attention has been paid to mold damage recently, raising the possibility of substantial future insurance losses.

July 19, 2001 Doctors feel the wrath of Texans for Lawsuit Reform on binding arbitration clauses.Viewpoints Houston Chronicle. One of the most notorious take-it-or-leave-it clauses is a requirement that doctors waive their legal rights under state law (and, by extension, patients' rights) by agreeing that all disputes be sent to mandatory, binding arbitration, which is expensive, cumbersome and lengthy. 

NOTE: TLR is headed by Richard Weekley, brother of David Weekley, Texas Homebuilder.The TLR is a so called "grassroots" organizations with the consumer in mind. See: Redefining reform  Big business proponents contrive some of the worst bills of the 74th session  By Molly Ivins "Say a builder has been using some cheesy materials that fall apart after 10 years. No responsibility falls to the builder--you have to sue the manufacturer"

July 19, 2001 Tell more about mold. ViewPoints Houston Chronicle. I think the stance taken by the insurance industry and the Texas Department of Health regarding toxic mold is shameful. Did none of the officials bother to read the Environmental Protection Agency material on the subject before they made such irresponsible statements? They even tried to blame the media. 

July 19, 2001 Allison's floodwaters shut fire station for six months  By S.K. BARDWELL  A southeast Houston fire station will be closed about six months while workers deal with mold and water damage from last month's floods. 

July 19, 2001 Insurers seek higher home rates Opponent says mold, flood impact should wait till 2002 By Terrence Stutz / The Dallas Morning News "Insurance losses have been declining in recent years," Mr. Bordelon said. "It's time these savings are returned to policyholders through reduced premiums." 

July 19,2001 A stucco nightmare Brokers warned about high incidence of
EIFS-related buyer lawsuits By]Julie Clairmont Inman News Features. Numerous individual and class-action lawsuits over a synthetic stucco called EIFS have prompted a number of states to mandate property disclosure forms for the protection of real estate brokers. ....North Carolina, which has a statewide class-action lawsuit, has outlawed the use of EIFS in construction in the state.
 

NOTE: Why pay 6% commission if a broker is just going to disclose everything to get off the hook and leave you without recourse if a product is defective? Brokers have known or should have known about EIFS for mnay years now. They should join us in calling for a ban on the product.

July 18, 2001 Another Pulte Home Problem in San Antonio Texas. 3 months waiting for Pulte's repairs.

July 15, 2001 Preying on Homeowners Tony Pugh Knight Ridder Tribune. Predatory practices.Among tactics predatory lenders use are these: 
 

Equity stripping -- A relatively large loan is made based on the equity in a property instead of the borrower's ability to repay. When the borrower can't make the payments, the lender acquires the equity and, often, the property, through foreclosure. 

Flipping -- A lender persuades a borrower to refinance a loan repeatedly. Each transaction earns the lender fees while driving the borrower further into debt. 

Home improvement loans -- A contractor gains a borrower's consent for a home improvement loan with exorbitant interest rates and fees. A variant: At the end of the demolition phase, the contractor demands that the borrower sign a loan at an even higher interest rate. 

Mandatory arbitration clauses -- These agreements, popular with loan makers, waive the borrower's right to a jury trial. Loan disputes usually must be settled by an arbitrator of the lender's choosing. 

Packing -- The borrower lards a loan agreement with costly and unnecessary insurance policies. Their cost is added to the loan's principal. 

July 15, 2001