Adolfo Pesquera: Gaming the finance system: breaking down the Housing Jungle
When housing construction was going full throttle --- hmmm? --- how was quality control keeping up? Simple answer: what quality control? In fact, many good craftsmen left the housing industry during its peak, because they took pride in their work, and wanted a pay grade subcontractors were not willing to pay...For builders and lenders, it's all about eliminating risk during the process of making a profit. Less risk equals more profit. No risk equals piles of ill-gotten profit. Homebuilders were, still are, masters of eliminating risk. Warranties written on homes are designed by homebuilders...five years ago...for every four homes sold each month, one house was going into foreclosure.

Consumer Advocates Push for Forced Arbitration Ban
On Monday, one day before a congressional hearing on forced arbitration scheduled for today, Public Citizen released a report alleging that the practice is pervasive in banking, home construction, cable companies and automotive sales, leaving consumers with no choice but to sign these agreements to conduct necessary activities of everyday life.

CNBC The House of Cards
CNBC presents the definitive report on the defining story of our time. CNBC correspondent David Faber investigates the origins of the global economic crisis, with first person accounts from home buyers, mortgage brokers, investment bankers and investors – most of whom let greed blind them, leading to the greatest financial collapse since the Great Depression....Collapse"Let's hope we are all wealthy and retired by the time this house of cards falters." Preview * Origins of the Financial Crisis "Then and Now" WATCH THE FULL SHOW 

Nevada homebuilders deny using Chinese drywall
Lennar says its Nevada homes did not use Chinese drywall -- alleged to be the cause of a host of health problems, noxious sulfurous odors and corrosion in homes across the country, particularly newer homes in Florida. The company used the controversial Chinese-Manufactured Drywall in some 400 homes in the Sunshine State and has set aside $40 million for abatement...The lawsuit, filed Aug. 20 in U.S. District Court, seeks damages exceeding $10,000 per homeowner and class action certification. Between 3,000 and 5,000 local homeowners may be eligible for the class, said Eric Fuller, a nonattorney spokesman for the plaintiffs' La Jolla, Calif.-based Fuller Jenkins law firm. He said this is likely the valley's first Chinese drywall lawsuit, although such cases are more common in the Southeastern United States

Eviction patrol heats up on U.S. foreclosures
ANAHEIM, California (Reuters) - It's home to Disneyland -- "the happiest place on earth" -- but deputies enforcing home evictions in Anaheim find mold, backed-up plumbing, marijuana crops, abandoned grandparents and the occasional suicide... One common task these days is serving eviction notices to people who have done nothing wrong -- who rent properties that have fallen into foreclosure, or are repossessed to recover unpaid debts.

Nevada homebuilders deny using Chinese drywall
The litigation frenzy surrounding defective Chinese drywall has hit Nevada. But some of the homebuilders and manufacturers recently named in the state's first such lawsuit say homeowners are acting out of unfounded fears. Attorneys for a group of homeowners filed a potential class action lawsuit against homebuilders in Nevada, claiming the companies installed and used the defective drywall, known as Chinese-Manufactured Drywall. The complaint names US Home Corp., Greystone Nevada LLC, Lennar Nevada, Georgia-Pacific Gypsum LLC and Georgia-Pacific LLC.  Lennar says its Nevada homes did not use Chinese drywall -- alleged to be the cause of a host of health problems, noxious sulfurous odors and corrosion in homes across the country, particularly newer homes in Florida. The company used the controversial Chinese-Manufactured Drywall in some 400 homes in the Sunshine State and has set aside $40 million for abatement.

Homebuilders Sued Over Lax Lending Rules
Thousands of homeowners nationwide are expected to join a string of federal class action lawsuits accusing eight major homebuilders of using their in-house finance companies to approve people for loans they couldn't afford, contributing to waves of foreclosures pummeling their neighborhoods. The eight suits filed late Thursday in the Central District's Riverside division name the California and national corporate offices of Standard Pacific Homes Inc., Richmond American Homes Corp., Lennar Corp., D.R. Horton Inc., Centex Corp., Shea Homes Inc., Beazer Homes USA Inc. and Ryland Group Inc.

Behind FHA Strains, a Push to Lift Housing
As it tried to help shore up the ailing housing market during the past year, the Federal Housing Administration increased its exposure, particularly to mortgages in high-cost states that have also seen some of the sharpest price declines.  Now concerns are mounting that the agency -- and the U.S. taxpayer -- may have to pay the price.  The FHA insures loans secured with down payments as low as 3.5%. But values in many markets in which it has been increasing its activity have fallen far more than that in the past year. The result: A growing number of homeowners with FHA-backed loans owe more than their homes are worth and are more likely to default...Congress allowed the agency to make much larger loans, up to $729,750...

Judges' Frustration Grows With Mortgage Servicers
Bobbi Giguere had no luck in securing a loan modification from her mortgage servicer, Wells Fargo. For months, she had sent the bank the financial documents it requested to process her modification. But each time she called to check on the request, she was told to send her paperwork again...On Thursday, something happened. She questioned a Wells Fargo official about the bank's lack of response "€” under oath.

Melvin Lendall Brown, Owner of Brownstone Construction, Indicted in Houston, Texas on Fraud Charges
Brown, 49, of Houston, was charged with 16 counts of wire fraud arising from a scheme to defraud residential mortgage lenders of approximately $5 million in loans in connection with home purchases in the Houston area.

The news you don't get can hurt like a______
Greg Mikesell, a local custom homebuilder, got indicted this week on a felony charge of stealing $100,000 from an 81-year-old man.  The San Antonio Express-News, anticipating action from the Bexar County District Attorney's office, ran a lengthy Page 1A feature Wednesday. There were a few things the newspaper left out, though. Such as, I was the reporter who wrote that glowing article in 2004, and staff at the newspaper had been aware of problems with Definitive Custom Homes for some time...There was enough information about him lying around for the media to come after him sooner.  We should have. As for my part in all this, I am sorry.

Ohio task force cracks mortgage fraud case involving 453 homes
Uri Gofman of Beachwood, Ohio is alleged to have orchestrated one of the nation's largest mortgage fraud cases by enlisting family, friends and others to invest in his real estate company, Real Asset Fund, with promises of profit. Gofman's enterprise began with seed money from an investor who transferred funds from a bank account in Latvia. The scheme involved using straw buyers to purchase homes, falsely claiming home improvements were performed on houses in order to refinance them, and then selling houses to unqualified buyers with the assistance of real estate agents, mortgage brokers and title companies.

WARRENTY, WHAT WARRANTY: Money Pit? Tom Hanks, Rita Wilson take battle with upscale contractor to Idaho Supreme Court
The latest act in a nine-year battle between Tom Hanks, his wife Rita Wilson and a high-end contractor played out before the Idaho Supreme Court on Friday. The case revolves around the couple's sprawling Sun Valley-area home, built by Storey Construction starting in 2000. Hanks and Wilson say the company's shoddy workmanship left them out more than $2 million. The company, meanwhile, contends the couple is just out for revenge because they lost an earlier arbitration over the work.

KSAT 12:Homebuilder Indicted On Fraud Charges
Greg Mikesell Faces Maximum Of Life In Prison If Convicted
SAN ANTONIO -- A homebuilder accused of fraud by multiple victims has now been indicted on elderly fraud charges, according to the Bexar County District Attorney's office. Greg Mikesell, indicted on charges of elderly fraud, allegedly scammed hundreds of thousands of dollars from multiple victims, said the DA's office. Mikesell was the subject of a KSAT 12 Defenders investigation in March of this year. "He's going to be held accountable on elder fraud for taking $100,000 from a World War II veteran," said District Attorney Susan Reed. "It hurts my heart when I see that happen, so by golly, if I can do something about it. I am and I'm the lady who can." If successfully prosecuted, Mikesell could face five to 99 years in prison or receive a life sentence. Attempts to reach Mikesell as well as his attorney have been unsuccessful. See KSAT Report

Credit Card Companies Continue To Be Protected From Lawsuits
Starting Thursday, credit card consumers will receive new protections against unscrupulous credit card practices... As these new guidelines are meant to offer protections for consumers, an important protection will still be unavailable – the right to take your credit card company to court... On an uninhabitable $369,000 home, the Fogels won $40,000, but most of the money went back to the home builder because the arbitrator determined the Fogels violated contracts. Arbitration left the Fogels with a $10,000 reward. Recent actions are showing that some businesses and the government are looking differently at arbitration. A Congressional proposal, backed by President Obama, would prohibit mandatory arbitration for bank and credit card consumers, which would instate consumers' right to the courts. Consumer advocates want the proposal expanded to all sectors of the economy – homes, cars, cell phones, nursing homes, and the workplace.