Homebuilder Kimball Hill Closes
The prolonged housing downturn has claimed a new casualty, Chicago-based Kimball Hill Homes, a Sacramento and north San Joaquin Valley home builder since 1995.  See photo of Kimball Hill Homes (Real Estate ad or Bubble?

Debt Watchdogs: Tamed or Caught Napping?
Moody's, which judges the quality of debt that corporations and banks issue to raise money, had just graded a pool of securities underwritten by Countrywide Financial, the nation's largest mortgage lender. But Countrywide complained that the assessment was too tough. The next day, Moody's changed its rating, even though no new and significant information had come to light, according to two people briefed on the change who requested anonymity to preserve their professional relationships.  Moody's had assigned high grades to many securities containing Countrywide mortgages. Those securities and mortgages, issued during the lending spree of recent years, later soured "€” leaving investors with large losses and homeowners and communities struggling with foreclosures.  Since the subprime mortgage troubles exploded into a full-blown financial crisis last year, the three top credit-rating agencies "€” Moody's, Standard & Poor's and Fitch Ratings "€” have faced a firestorm of criticism about whether their rosy ratings of mortgage securities generated billions of dollars in losses to investors who relied on them.

UsHousingMeltdown.org
The Independent Resource for Housing Market Information.  Housing Research -  USHM was created to provide the facts and the truth about the housing market. Our product is quality information. The agenda at USHM.org is to provide non-biased information and commentary whether the information leads to or supports buying houses and real estate or not.  Read more...

A Multi-Billion Dollar Bailout for Those at Fault
Corporate Homebuilders, the Housing Crash and the Mortgage Crisis. Corporate Homebuilders, the Housing Crash and the Mortgage Crisis. The housing market crash and meltdown of the mortgage industry has cost more than 200,000 construction workers their jobs, put 3 million American families in danger of foreclosure and gutted the value of what was the financial security net for most working men and women: their homes. ... 
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EPA Reports Record Year For U.S. Polluters in 2008
A report released on Thursday showed that the U.S. Environmental Protection Agency enforcement actions during the 2008 budget year resulted in a record $11.8 billion in pollution controls and projects to clean up the environment... Four U.S. home builders, Centex Homes, KB Home, Pulte Homes, and Richmond American Homes, agreed to pay civil penalties totaling $4.3 million to resolve alleged violations of the Clean Water Act for delays or failures to obtain proper storm water permits for numerous construction sites.

JPMorgan Sues Homebuilders, Developer Over Nevada Project
The defendants include units of KB Home (KBH), Toll Brothers Inc (TOL), Meritage Homes Corp (MTH), Weyerhaeuser Co. (WY) and Beazer Homes USA Inc (BZH). An affiliate of developer Focus Property Group Meritageand John Ritter , Focus Property Group's chief executive, also are defendants...Wachovia Corp. (WB) filed a similar lawsuit in U.S. District Court in Manhattan in October against a group of builders and the developer of the other project, Kyle Canyon Gateway. Wachovia's banking unit was the administrative agent for the lenders on the Kyle Canyon project.

Homebuilder Kimball Hill winding down operations
Kimball Hill Homes, which ranked as the 17th-largest homebuilder in the Houston area last year, says it will not start any new projects and will wind down operations as it completes homes already under construction.The company, which is based in suburban Chicago but builds in Houston, Dallas-Fort Worth, Austin and San Antonio, said late Tuesday the turmoil in the housing and credit markets that prompted it to file for bankruptcy in April had forced the "difficult decision" to begin the process of shuttering as it still looks for a buyer.

County loses arbitration case, must pay $52.6 million to contractor
An arbitrator ruled Wednesday that Clark County must pay $52.6 million to a contractor it had publicly criticized for construction flaws that caused the Regional Justice Center to open four years late and millions of dollars over budget. ...a host of defects, including sloping floors, leaky windows, faulty steel-column footings and tic-tac-toe games scratched into doors... The county issued 120 noncompliance certificates and refused to pay the contractor until the glitches were fixed. It also penalized the company $12,000 a day for 10 months...Now the $52.6 million settlement cost could be added to the price tag.

Americas Watchdog Wants to Talk to the Employees of Major U.S. Homebuilders About Undocumented Construction Workers and a Possible Reward
Americas Watchdog and its Wall Street Fraud Watchdog have been investigating the employment practices of the largest homebuilders in the US for five years, with the conclusion that millions of undocumented workers did most of the building. The problem: while most of the undocumented workers were classified as "sub-contractors", they were in fact full time employees, and they did not receive overtime, or other benefits afforded to US full time employees. According to the Wall Street Fraud Watchdog & the Homeowners Consumer Center, "if big US homebuilders think they are about to get a windfall from the US taxpayers, think again, its show & tell time. Start thinking about prison, if you are a large US residential homebuilder CEO, COO or CFO." Large US homebuilder superintendents or executives with substantial proof may be eligible for a significant reward. Large US homebuilder superintendents or executives can call the Wall Street Fraud Watchdog.

Housing Giants Magazine - Mortgage Check
"As many builders begin to feel the pressure to liquidate their inventories to meet the demands of their construction contracts and loan terms some revert to decretive practices and fraudulent measures….Fraud has become the tool of desperation that companies individuals use to maintain lifestyles, livelihoods and bottom lines, says a recent fraud report. Since the housing bubble has burst, the number of fraudulent loans issues during the first three months of 2008 skyrocketed 42 percent compared to the same period in 2007, according to the same August report from the Mortgage Asset Research Institute (MARI)."  "It becomes almost like racketeering because everybody went along with it, even the small builders," says Janet Ahmad, president of Homeowners for Better Building. Read more Mortgage Check

America's access to justice at risk
America was founded by people who understood that power unchecked is power abused. That's why we have, among other things, separation of powers, the Bill of Rights, and the right to a day in court. For several years now, however, many of those with power -- in both the public and private sectors -- have had few restraints.

Agency Is Accused of Curbing Credit From Seized Banks
Home builders from Florida to Texas are railing against the Federal Deposit Insurance Corp., saying the agency is cutting off construction financing from seized banks and demanding early repayment of current loans. The FDIC, which has become a leading advocate for modifying mortgages of financially strapped homeowners, isn't extending that same tolerance to the housing industry, the builders said.

6 Sentenced in Mortgage Scheme Exposed by FOX 4
The ring leader of a north Texas mortgage fraud scheme is heading to federal prison along with seven others. Becky Oliver broke the story back in 2005 exposing a real estate scam that left investors with over-priced homes they couldn't afford. The scheme was detailed in a 49-page federal indictment. After three years, Steve Lucky is finally hearing the word he's been waiting for: prison. "They are going to pay their dues and pay for what they did," said Lucky. "I wish it could've happened faster but it did happen and that is what's important. These guys were caught." Lucky told FOX 4.  Related Story: Becky Oliver broke the story back in 2005

Signs of Public Housing Neglect
The story of board and care homes in Dallas is a tale of neglect and indifference. Though good homes exist, more have cropped up over the last two decades that are little better than flophouses for people with mental illness. Every level of government has some responsibility for overseeing these facilities. But until recently, they have shared little information or made much effort to try to ensure minimal standards. The Dallas Morning News spent much of the last year examining conditions in the homes and what officials in local, state and federal government are and aren't doing about them.
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BusinessWeek: Sex, Lies, and Subprime Mortgages
It may seem like ancient history now, but not long ago the mortgage industry was turning ordinary people into millionaires. One of them was Sharmen Lane, a high school dropout who, like many other young women during the boom, found her way into an obscure banking job with the clunky title "mortgage wholesaler." Her experience"€”and the experiences of other wholesalers like her"€”offers a glimpse into the recklessness and indulgence that drove the industry to ruin.  Related articles: Henry Cisneros on the Hot Seat - Editorial: Recipe for profits, defects and foreclosures