Home Valuation Code of Conduct (HVCC) rules go into effect on May 1, 2009
Freelance reporter Marcie Geffner for Bankrate.com had a story picked up by the Seattle Times' titled "New appraisal rules may hurt home buyers" with respect to the Home Valuation Code of Conduct (HVCC) which goes into effect on May 1, 2009. The rule which takes effect on all Freddie Mac and Fannie Mae loans is highly controversial in the real estate industry.
The appraisal industry could see an increase in the number of national Appraisal Management Companies at the expense of the independent appraisal company. The concern that many in the real estate industry have towards the HVCC is the potential ramification that a national appraisal management company will not understand a local real estate market. The lack of local appraisers in a particular real estate market could further depress home prices because the fear is that a national appraisal management company would create a home valuation process that is determined by Freddie Mac or Fannie Mae not by what the true value of the immovable property actually is.
As to how this relates to the Real Estate Settlement Procedures Act (RESPA), many appraisal management companies are owned by lenders or other settlement service providers. Lenders & title insurance underwriters can own appraisal management companies so long they disclose their ownership relationship within twenty four (24 hours) of the referral and their use is not required. Many are under the impression that lenders or other settlement service providers are forbidden from owning their own appraisal management company but that is inaccurate as this practice is completely legal under RESPA.
The full impact of the HVCC remains to be seen but the entire issue could be moot once the Federal Deposit Insurance Corporation's "Interagency Appraisal Evaluation Guidelines" go into effect. The IAEG might trump the HVCC.
Consumers and state & federal regulators need to watch very carefully to see what impact the new HVCC rules will have on the real estate home buying and refinancing process. If the national appraisal management companies misinterpret home values then this will not only have a serious impact on the home buying process but it also could seriously jeopardize taxing bodies who rely on property values to run government.
Source: www.respalawyer.com
RESPA VIOLATIONS: HOW TO SUBMIT A RESPA VIOLATION COMPLAINT WITH HUD
The Real Estate Settlement Procedures Act (RESPA) under the United States Department of Housing and Urban Development (HUD) has a mechanism for consumers and others to file a complaint with RESPA if RESPA violations are being committed or you believe that RESPA violation is being committed. If a complaint is going to be filed with the RESPA division please make sure you follow the following steps so your complaint gets the most attention from the investigators:
1. List the names, addresses, and phone numbers of the alleged violators of RESPA;
2. Write a detailed summary of what happened or what's happening that leads you to believe that a violation is taking or has taken place;
3. Make sure you list the specific section of the RESPA statute that was violated. Often times regulators or investigators will miss even the most generic of violations so listing the appropriate violations will help them do their job better;
4. Check your spelling and make sure the complaint is coherent and easily understood to the reader; and
5. Include your name, phone number, and address in the complaint so that an investigator can contact you for more information, if they need to contact you. RESPA Complaints can be submitted confidentially to HUD as well. If you believe you have a potential litigation matter with RESPA to HUD, I would recommend that you submit your complaint to your attorneys prior to submission to the HUD office or let your attorneys file the complaint for you.
Source: www.respalawyer.com
STERBCOW LAW GROUP MORTGAGE FRAUD RESPA LAWSUIT IN THE NEWS
Reporter Kate Moran of the Times Picayune wrote a terrific article on a lawsuit the Sterbcow Law Group LLC and Melancon Rimes LLC filed on in behalf of their client and plaintiff Sarada LeBourgeois who was the victim of mortgage fraud.
"Lawsuit alleges that a loan originator stole money from a client" was published on May 12, 2009 and briefly describes the events surrounding the lawsuit. The federal case was recently remanded back to Civil District Court in New Orleans by U.S. District Judge Lance Africk.
Kelly McCarel with RESPA News also wrote an excellent article on the case on Feb. 12, 2009 entitled Louisiana case ties RESPA violations to alleged mortgage fraud"
The case was filed in the Orleans Parish, Civild District Court in Louisiana with the docket number 2008-2705 and is listed under the name Sarada LeBourgeois, et al. v. Allied Home Mortgage Capital Corporation, et al.
Source: www.respalawyer.com
OREGON SENATOR JEFF MERKLEY INTRODUCES TRANSPARENCY FOR HOMEOWNERS ACT AND PROMOTING MORTGAGE RESPONSIBILITY ACT OF 2009
Oregon Senator Jeff Merkley has introduced two new legislative bills that the real estate industry and public need to be keenly aware of: Senate Bill 911 known as The Transparency for Homeowners Act and Senate Bill 912 known as The Promoting Mortgage Responsibility Act. Sen. Merkley believes that abolishing the Yield Spread Premium (YSP) will stop the real estate mortgage problems in the United States because by eliminating the YSP will kill off the mortgage brokerage industry who rely on the YSP as part of their compensation. There have been abuses with the YSP and never was that more apparent during the sub-prime mortgage craze but if Senator Merkley was really interested in reigning in abusive practices they why didn't he address the Service Release Premium (SRP) abuses which far exceeded the abuses of the Yield Spread Premium? Robert Blake of the Mortgage Insider criticizes both bills as an attempt by the banking lobby to kill off their competition.
Source: www.respalawyer.com
REAL ESTATE SETTLEMENT PROCEDURES ACT REQUIRED USE SECTION 9 VIOLATIONS BY HUD SAYS ALTA
The American Land Title Association (ALTA) sent a letter to the Federal Housing Administration asserting that Department of Housing and Urban Development is violating Section 9 of the Real Estate Settlement Procedures Act (RESPA) with regards to the HUD-designated closing agent stipulation on all HUD properties for sale.
Section 9 of RESPA prohibits the seller of property from requiring the use of a particular title company unless the seller pays for all the borrowers title closing costs. Housingwire.com has more information on the letter sent to HUD by ALTA.
Source: www.respalawyer.com
Obama Administration Plans to Bring Back Program Allowing Mexican Semi Truck Drivers to Operate in U.S.
Several months ago, we wrote a post about a program the Bush administration implemented which allowed 100 Mexican trucking companies to operate their semi trucks in the United States. Critics of the program complained that the Mexican truck drivers were not being properly checked and regulated and posed a serious safety risk to other drivers in the U.S. As we have pointed out over and over again in this blog, semi trucks are subject to a large volume of federal regulations due to the dangerous nature of semi trucks and the number and severity of accidents in which they are involved every year. It was unclear how the Mexican semi truck drivers and their companies would be effectively regulated for safety purposes when the U.S. government has a hard enough time regulating U.S.-based semi truck drivers. Mexico does not have a regulatory and record-keeping system designed to prevent serious accidents and make sure semi truck drivers are qualified like the U.S. does.
That program was ultimately terminated. However, the Obama administration has indicated an intention to revive the program and allow certain Mexican trucking companies to operate in the U.S. This, of course, may be a precursor to unrestricted access to the U.S. by more or all Mexican trucking companies. The press release from the Obama administration on this issue mentioned that safety concerns have been addressed. However, the Obama administration has not given any details describing exactly how those safety concerns have been identified or addressed. Given the difficulty the U.S. government has in regulating U.S. truck drivers and preventing serious and fatal accidents, until we see details and results, we are somewhat skeptical that the government has figured out how to effectively regulate foreign truck drivers who come from a country with no track record of safety regulation.
However, it is important to note that the Mexican truck drivers who participated in the program during the Bush administration had better safety records than U.S. semi truck drivers, although the sample size was too small to formulate any reliable conclusions.
Source: www.florida-injury-attorney-blog.com
Pal Balogh despre viitorul campion european
Q: How do you think, who will win the European Go Championship in Groningen? Ilya Shikshin is staying in Korea now and he plans to take part. What do you think about his chances? A: I think this year the gods shall decide upon the triumph and victory of Pop Cristian Gabriel. Mr. Ilya has won [...]
Source: constantin.ghioc.ro
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