Countrywide slashes jobs as bad loans rise
The largest U.S. mortgage lender also said it eliminated 4,935 jobs last month, leaving it with 55,932. It has said it plans to cut as many as 12,000 jobs, or 20 percent, by December to cope with a deepening U.S. housing slump...Moore, the North Carolina treasurer, on October 8 wrote to SEC Chairman Christopher Cox questioning Mozilo's increasing his stock sales just as the subprime lending crisis was heating up. Mozilo received about $387 million from pay and stock option gains from 2002 to 2006, regulatory filings show. His stock sales resumed this week after a two-month hiatus. "There is a tremendous amount of smoke around the motivations and trading practices of at least the CEO of Countrywide, perhaps the whole senior management," Moore said on CNBC television.

The Dangers of Formaldehyde in Buildings and Homes
Formaldehyde (HCHO) is considered a strong irritant and potent sensitizer. Inhalation of large amount of HCHO can cause severe irritation of the upper respiratory tract and death. Sources of formaldehyde in the home include building materials, pressed wood products (hardwood plywood wall paneling, particleboard, fiberboard) and furniture made with these pressed wood products. Urea-formaldehyde foam insulation (UFFI). Combustion sources and environmental tobacco smoke. Durable press drapes, other textiles, and glues.

Scottsdale couple battle developer over wall
A major Arizona homebuilder stands accused of attempting to financially bleed a north Scottsdale couple into submission in a decade-long legal dispute over a defective retaining wall. It took nearly 10 years before an arbitrator found that Shea Homes owed Quent and Nolya Augspurger $164,000 for damages, legal fees and court costs "€” a judgment that a Maricopa County Superior Court judge reaffirmed late last month....In 2003, the couple filed for arbitration just before their ability to do so expired. The arbitration process ended up taking four years.  "It's supposed to be a quick and easy, economical way of settling disputes," Quent Augspurger said. "I think they try to wear the homeowner down and make it so difficult for them that they give up." Nolya Augspurger characterized the developer's attitude as, "Don't mess with us big boys.

Is agriculture arbitration bill the "tip of the iceberg'?
The Senate Agriculture Committee is expected to act on a farm bill this month that includes a provision barring binding arbitration clauses in livestock contracts. While the provision, written by Senate Agriculture Committee Chairman Tom Harkin, D-Iowa, applies only to those contract disputes involving livestock and poultry, "that's the tip of the iceberg in terms of what's going on with the attacks on arbitration right now," said Matt Webb, senior vice president for legal-reform policy at the U.S. Chamber of Commerce in Washington.

Housing: That Sinking Feeling
Homeowners are getting slammed as builders slash prices. The big question: Will this shock treatment help hasten the end of the painful downturn?...KB cut list prices by $25,000... For homeowners who jumped in at the height of the boom, the discounts aren't so good...On Sept. 14, Hovnanian Enterprises Inc. kicked off a 72-hour Deal of the Century, in which it slashed prices by as much as $100,000 in 19 states. That same day, Standard Pacific Corp. launched its Mission: Possible campaign in 49 communities across Southern California, promising $20 million in total discounts. And on Sept. 29, D.R. Horton Inc. auctioned off 53 homes in San Diego with bids starting at $150,000, half off the list price...On Sept. 25 the country's No. 2 builder by homes sold last year, Lennar Corp., reported a $513.9 million quarterly loss, the biggest in its 53-year history. And while there have certainly been other influences on the market, builders bear a lot of the blame for their woes. Read more...

Hutto's City Council Looking Into Expansive Soil, Builders Cutting Corners, and little Homeowners Recourse
The homebuilding business has been booming throughout Texas especially Hutto, and after Thursday night's City Council meeting some are saying the commonality of expansive soils problems and defective trusses are a major concern.  As the magnitude of builder mistakes start to come to light and property values decline, cities like Hutto will be faced with tough decisions. Unfortunately, according to some experts, things will only get worse before it gets better. However, for residents of Hutto and some other small communities it appears officials are taking the issues of shoddy building very seriously and headed toward finding solutions.

Structural Problems in New Home Update
Peggy Bowser and Shannon McDonald want others to know what's wrong with their home. In bright red paint, they painted a message on their garage door. The message says in bold letters, their home has code violations and structural defects. It also lets everyone know they've filed a lawsuit against their builder, Biltmore Homes. Shannon McDonald tells Troubleshooter Diane Wilson, "This is a year of aggravation. This was going to be our dream home and it's turned into a nightmare."

Housing company owner is indicted
Dallas-based developer Brian Potashnik, who was a key player in Bexar County's affordable housing market for half a decade, was indicted Monday in Dallas on 14 federal charges of bribery and conspiracy to commit bribery with government officials. The long-expected indictment piqued the interest of local and state housing officials, who quickly described how they had severed ties with Potashnik and taken steps to protect taxpayers' property connected to his company, Southwest Housing Development Co...They were among 14 housing and government officials, including state Rep. Gladys E. Hodge of Dallas, charged in several alleged schemes to exchange money or housing for favorable treatment of Potashnik's company.

Women Forced Out of Their Jobs For Reporting Fraudulent Sub-Prime Home Loans Win Appellate Decision
In recent months, the sub-prime lending market has collapsed, as many borrowers can no longer afford their monthly payments.  Home values have plummeted below the amount owed on loans as interest rates have risen.  As a result, foreclosures have become increasingly frequent.  Six brave women who worked for one of the nation's largest sub-prime home mortgage lenders, Lehman Brothers subsidiary BNC Mortgage Inc., spoke out about fraudulent mortgage lending practices, and were  viciously harassed for their trouble.

Builders Exposed - All the signs were there…  Who are the real losers?  

Homeowners rally against defects in Hutto Parke
Some motorists honked Saturday afternoon people held signs that read, "Lennar lies! HUD form 92541," "Lennar everything included except resale value," "Lennar everything included even expansive soil," and "Lennar lied to me." Hutto Parke resident Renee Crenshaw told city council that she does not want to see people move out of the neighborhood and Hutto in large numbers. She serves as a trustee for the Hutto Independent School District.
"I don't want the citizens to move out," she said, explaining that there are certain things home builders can do to the soil before houses are built, as the builders of the new turf at Hippo Stadium did.

Brockovich Plans to Sue
She made millions fighting for the health and safety of homeowners, a story that caught the attention of hollywood film makers. Now Erin Brockovich is part of a team seeking to represent several Lowcountry homeowners in a lawsuit they plan to file in the near future. "I am here as an advocate first and foremost. Iam as a consultant secondly," said Brockovich...Accordng to the EPA volatile organic compounds or VOCs include a variety of chemicals some of which may be harmful. The chemical Brockovich's firm is now concerned with is benzene. The firm hired experts to retest some homes. Results showed various forms of benzene at, what she says, are higher than EPA-approved levels.

Erin Brockovich Here To Help Westcott Plantation
"They've asked for help-they're sick, we're finding contaminants and somebody needs to give them some answers," Brockovich pleads. Brockovich says testing at Wescott has shown higher than allowed levels of chemical compounds, mostly Benzene, a colorless and flammable liquid that used to be added to gasoline. Now she says that compound can be found underneath people's homes in levels more than 70 times the EPA allowed amount.

Erin Brockovich to conduct inquiry in N. Charleston
Environmental advocate Erin Brockovich is investigating a North Charleston neighborhood that she said she believes is contaminated with a cancer-causing chemical... She said the Wescott case reminds her of other neighborhoods in the country she has studied, in which toxic chemicals seeped from waste sites to residential areas. An EPA official said the agency is investigating whether the areas in question have been used as dumping sites...Brockovich said she'll take on the Wescott case despite threats from Lennar. She said the company told her this week that it would conduct "a smear campaign" against her if she continued her investigation.