Developers arrested on corruption charges
It was just before 9am today when FBI agents arrived with their corruption catch at Houston's federal building. Two of the city's most politically powerful developers, Andrew Schatte and Michael Surface, were arrested on public corruption charges. Details of the indictments are still sealed at this hour. Their arrests will likely trigger political shockwaves through town. Before this morning, Schatte had a long list of close friends in Houston government, from city hall to the commissioners court to the Houston Firefighters Pension Fund.

Washington needs a Homeowner's Bill of Rights: Testimony on SB 6385
For the record, my name is Rick Hegdahl. I'm the Outreach & Advocacy Director for the Northwest Progressive Institute, a regional netroots strategy center working to advance the common good through ideas and action. I also run a home remodel and repair business in Bellevue, Washington, where I live – Viking Construction – so I have firsthand experience with this issue.  I'm pleased to be here today to voice NPI's support for SB 6385.

Legislature proposes bills to protect consumers
State lawmakers want to regulate lead and toxic chemicals in children's products, create a bill of rights for airline passengers and allow homeowners to sue for shoddy home construction. Two weeks into the session, legislators have rolled out more than a dozen bills aimed at protecting customers after last year's product fiascos, including lead found in millions of toys, the subprime lending debacle and airline passengers stranded for hours on the tarmac without adequate food or water.

If Everyone's Finger-Pointing, Who's to Blame?
A wave of lawsuits is beginning to wash over the troubled mortgage market and the rest of the financial world. Homeowners are suing mortgage lenders. Mortgage lenders are suing Wall Street banks. Wall Street banks are suing loan specialists. And investors are suing everyone...Some of the loans have defaulted, and a trustee's report on the pool of loans packaged and underwritten by UBS, the Swiss investment bank, shows that losses on some defaulted mortgages are as high as 100 percent. As of November, about 27 percent of the loans in the pool were either delinquent 60 days or more, in foreclosure or had resulted in a repossessed home.

Redefining reform
Big business proponents contrive some of the worst bills of the 74th session. "Reform" (actually deform) of the Consumer Protection Act/Deceptive Trade Practices Act gives additional license to the worst kinds of businesses that operate in Texas. It's back to "buyer beware." If you get ripped off or even severely damaged by some sleazy business, don't bother trying to get your money back--much less any other compensation...Consider the case of Richard Weekley, a big-time real estate developer who owns shopping malls and--along with his brother--a big housing company. Weekley appeared in Austin as president of Texans for Lawsuit Reform, the folks who were going to "reform" our tort system, Governor George Dubya's pet project. Imagine my surprise when The Wall Street Journal listed Weekley as one of this session's biggest "winners." I'd have listed him as the session's biggest "over-reacher." When you behave so badly that one of the three top officeholders in Texas describes you as an "ass" and points out that tort reform would have been even more pro-bidness without your able assistance, I'd say "winner" was a little strong.

Family blames illness on mold infested home
A Naples family says mold is growing in their home and now it's making them sick. But the company that built the home says it's not their fault. For John and Diane Mathieu, their brand new dream home turned into a nightmare. "I don't want anybody else to go through what I have. I am fighting for my life because of that home," said Diane. The Mathieus say their home was built without proper water-proofing, which led to mold growing in the pillars.  See website:The Naples Lemon House

New homebuilding provisions reviewed
Changes in state law won't affect area homebuilders much, some say. "I don't see anything here that will affect our operation at all," said Don Farek, of Cameo Homes in Killeen. "One of the changes in House Bill 1038 gives you (builders) an out," Fortner said. Following a state inspection, a builder can make a written offer to the homebuyer to fix the errors. If the offer is agreed upon by both parties, the homebuyer can call the state and cancel the complaint associated with the inspection results. If an offer is made in advance of the inspector's report that is similar to the recommendations, TRCC will pay the inspection fee and not report finding a defect.

Buried Bombs Could Cause Fla. Homeowners to Lose Insurance
Hundreds of people who unwittingly bought homes in Orlando, Fla., near a World War II-era bombing range are suing after learning they could lose their insurance. Attorneys for the residents said Lennar Homes and other builders committed fraud by concealing that the homes were built on the bombing range. Citizens Property Insurance Corp., created by the Legislature as the insurer of last resort, said it would not consider writing a policy if there are unexploded bombs.

Bill protects homeowners from shoddy builders 
 If an auto mechanic damages your car or a tree service cuts down the wrong tree, you can sue for negligence. But buy a defective house in Washington state and you might not be able to take the builder to court. But some state lawmakers think that's wrong, and hope to change that. This is the lawmakers' second attempt to give you more protection if you buy a home that's not up to code or has substantial defects. Last year, two democrats almost got a bill passed to require new homes to come with a warranty, but the building industry got it shot down.

State lawmakers wrestle with abusive lending
In the three months since Iowa Attorney General Tom Miller launched a foreclosure hotline, nearly 6,000 Iowans have called for help. The calls come to the Iowa Mediation Service, which Miller hopes will be able to negotiate with lenders to help borrowers keep their homes. "We're trying to do it on a mass basis," Miller says. Foreclosure rates for homes purchased using non-standard, high-interest loans have reached historic highs in Iowa and around the USA.

FBI: Housing scams more than double
Federal mortgage fraud convictions have more than doubled in the past year, and the FBI expects a growth in foreclosure scams as the crisis over substandard, high-interest home loans escalates. Foreclosure rates for these mortgages, known as subprime loans, are at historic highs, according to surveys by the Mortgage Bankers Association and government records.

Foreclosure: There goes the neighborhood
Some of these neighborhoods are becoming foreclosure disaster zones. They're places where three out of the four houses you find for sale are in foreclosure. That's causing fear that these neighborhoods are already starting to fall apart.

Lennar BVHP LLC should QUIT while the going is good - we want them out of our community
Lennar Corporation is a ROGUE company that has been selling its homes for cheap - many for 40 cents on a dollar. Lennar Corporation is in deep trouble - it has laid off thousands of its employees - and here in San Francisco too. Lennar's stock and shares have been reduced to Junk Bond Status - the banks will not do business with them - and all over the world in the financial circles - the word is - stay away from the skunk - Lennar Corporation.

Binding Mandatory Arbitration Reform
A series of United States Supreme Court decisions have changed the meaning of the [Federal Arbitration] Act so that it now extends to disputes between parties of greatly disparate economic power, such as consumer disputes and employment disputes. As a result, a large and rapidly growing number of corporations are requiring millions of consumers and employees to give up their right to have disputes resolved by a judge or a jury, and instead submit their claims to binding arbitration.

BIG BUILDER Magazine - Starts: Slip Sliding Values
As if getting houses sold wasn't a big enough challenge, builders in what were some of the fastest appreciating markets in the country are beginning to experience more challenges–falling appraisal values and greater loan scrutiny right before closings.  Appraisals became almost cursory. A computer records search for comparative prices and a drive-by to make sure there was a house on the lot often sufficed... First, the company is starting up mortgage and title businesses in conjunction with First American and Market Street Mortgage. The new services intend to provide customers with a more complete home buying experience while injecting the company with additional revenue streams...the company is pulling up the stakes in San Antonio after an arguably frustrating five-year run that produced roughly 225 homes.