Bob Perry: building homes and candidacies
Nationally, Houston home builder Bob Perry is best known for contributing almost $4.5 million to the swift boat ad campaign that helped sink Democrat John Kerry's 2004 presidential bid.  In Texas, he remains a major money guy for numerous state officeholders, candidates and political committees, mostly "€” but not exclusively "€” Republican.  During the 13 months since the 2007 legislative session ended, he has given about $2.3 million to Texas candidates and causes, according to new filings with the Texas Ethics Commission. Housing starts may be down, but that amount keeps Perry at or near the top of the state's political donor list...Perry's largess, of course, also has helped advance his own interests, including the creation a few years ago of the Texas Residential Construction Commission to help protect home builders from lawsuits. And, more recently, his company won a major victory in a defective home case before the Texas Supreme Court, all nine of whose members have received campaign dollars from Perry. The victory was close though, with four of Perry's beneficiaries voting against him.

With Liberty and Justice for All
We all pledge our allegiance to the flag so we should expect liberty and justice for all.  Unfortunately, in Texas, we are being stripped of our liberty and opportunity for justice through poorly written legislation meant to "help" us. I have spent my adult life upholding the principles of liberty and justice for our country as a member of the US military.  I will be first in line to enforce the principles that have made our country great and I have proven my allegiance.  So I am sure you will appreciate my concern about the absence of liberty and skewed justice being forced on American's through lopsided opinions of government agencies such as the Texas Residential Construction Committee (TRCC) State -sponsored Inspection and Dispute Resolution Process (SIRP) and government supported Mandatory Binding Arbitration (MBA).  

CONSUMER WATCH: Prescreen home-repair contractors?
Although maybe unintentional the article directs readers to sources that endorse a program which exploits a false sense of security that can be misleading. The end result actually better serves unreliable sources that promote business rather than to serve the good of Texas consumers...Most people understand that the Better Business Bureau (BBB) is in business established to promote its paying members. The Texas Residential Construction Commission (TRCC) was established by the homebuilding industry to promote and protect its dues paying homebuilding business members. The truth is both agencies are self-promoting businesses that exploit the scheme of "consumer protect thyself," rather than good State Public Policy. Texans have a better chance with a roll of the dice than trusting big business promoters like the BBB, TRCC and this state for advice or help. When it comes to consumer protection Texas is a very high risk state.  Read more, plus comments...

House Judiciary Subcommittee - 3 Arbitration bills voted out of Committee
Update on the mark-up that occurred this afternoon before the House Judiciary Subcommittee on Commercial and Administrative Law.  All three bills passed!!! The hearing began with Chairwoman Sanchez introducing the Fairness in Nursing Home Arbitration Act... Next up was the Auto Arbitration Fairness Act, H.R. 5312...Lastly, Congressman Johnson introduced the Arbitration Fairness Act, H.R. 3010... 5 - 4. Yes votes were Watt, Delahunt, Johnson, Sanchez, and Cohen. Although Congresswoman Lofgren was not present at the time, she previously stated she would support the bill. No votes were Jordan, Cannon, Keller and Feeny.

New subdivisions have become ghost towns
Did the homebuilding industry really think a market of people who were not qualified to buy new homes was a sound market strategy that would last or that it was good for America in the long term? Unfortunately, Builders greed hurt qualified families who actually invested their life savings for the American Dream in a market that was falsely inflated and doomed from the start. Builders need to stop the whining. Builders created this mess and now demand federal bailouts instead of jail time.  Janet Ahmad, Home Owners for Better Building.  Read article & Comments...

Congress Considering Legislation to Ban Arbitration Clauses
The House Judiciary Committee is set to move as early as July 16 on the Arbitration Fairness Act, a bill reported out of the panel's Subcommittee on Commercial and Administrative Law. Sponsored by Rep. Henry C. Johnson, D-Ga., H.R. 3010 would make significant changes to the 83-year-old Federal Arbitration Act. The measure bans predispute arbitration agreements from being enforced in employment, consumer and franchise disputes, as well as any disputes arising under civil rights law or under laws intended to "regulate contracts or transactions between parties of unequal bargaining power." If passed, the law also would leave determinations on the enforceability of arbitration agreements to federal courts, rather than private arbitrators.

Law skewed in favor of builders
For the past two years, I've offered a bill in the state Senate that attempts to level the playing field between home buyers and builders. My bill, widely known as the Homebuyer Bill of Rights, would give rights to Washingtonians that most presumed they already had -- the right to bring a builder to court to recover damages for shoddy work... In fact, under current law, fewer than 1 percent of Washingtonians currently have this right. These lucky few are generally those with the means and foresight to hire a lawyer to draft a contract governing the rights and obligations between the home buyer and the contractor or builder. Since virtually no one in Washington hires a lawyer when buying a home, home buyers unwittingly sign whatever is handed to them. They do this at their risk because Washington law does not protect them.

Mortgage Industry Warchdog or Lapdog - By Nick Anderson, Houston Chronicle's editorial cartoonist

Fed draws up new rules for mortgage lenders
The Federal Reserve Board Monday unveiled rule changes intended to curb deceptive mortgage lending practices, most of which will take effect in October 2009 and apply to all lenders whether they are supervised at the state or federal level...The most stringent new rules put forward by the Fed apply only to high-interest-rate loans. They include restrictions on prepayment penalties and requirements that lenders set up escrow accounts to collect payments for property taxes and homeowners' insurance on first-lien loans. The escrow requirement won't be phased in until 2010 to allow lenders time to adapt.

Perspective: Industry should condemn sweetheart home loans for politicians
Which mortgage company chieftain took home $140 million in compensation last year while the company he founded lost $704 million? If you said Angelo R. Mozilo, CEO of Countrywide Financial Corp., take a bow. And add a couple of gold stars if you knew Mozilo's pay was comprised of more than $120 million from exercised stock options and more than $22 million in other compensation, according to a Reuters' report based on the mortgage company's year-end filing with the Securities and Exchange Commission...It's tempting to dismiss Mozilo's special deals as just another corporate perk, just another example of too much money in politics or just another instance of greed gone wild in real estate transactions.

The implicit government guarantee of Fannie Mae and Freddie Mac is now explicit
In a dramatic statement released Sunday, the White House and Federal Reserve moved to give the mortgage giants the capital they need to survive the depression in the housing market and turmoil in financial markets that had left them dangling over a cliff. Of most immediate importance, the Fed's board of governors voted to open up its emergency discount window to Fannie and Freddie. In addition, Treasury Secretary Henry Paulson announced that he will seek Congressional authorization to by stock in the two companies and increase the government's credit line. At the moment, each company may borrow only $2.25 billion.

I can't find anyplace else to thank the fine work of the NAHB (as Bush did some years ago) for saving the American economy, and making the American dream come true for millions of Americans. Their devotion to blocking consumer protection legislation, and meaningful accountability of their industry has panned out to be a real blessing in home affordability for all. As foreclosure rates have reached one quarter of a million families per month, thank you NAHB for that show of deep concern for American's ability to own the American dream. As serious new home construction defects went into the millions of homes during the big boom, thanks again NAHB for making most all those mistakes profitable for big name builders, though it was often devastating for the families who bought them.  And thanks for the spin on the whole situation, so most people may never know how much you've really done for to Americans. By Ron Jackson. Read more and comment...

Mold contamination drives 2nd family from home
A second Daniel Island family has moved out of their D.R. Horton-built house after getting results of a mold test because the parents are concerned about their children's health. David and Terry Pittman said Wednesday that they decided to leave the house July 4 after consulting the ear, nose and throat specialist for their son, Anders, 7, who has suffered repeated ear infections. The highest level of mold contamination was found in Anders' room, the Pittmans said. ". ...The Pittmans were concerned about their house because their next door neighbors, Benjamin and Joy Allen, moved from their D.R. Horton house more than a month ago after receiving results of a mold test. The Allens said their daughter, Madeleine, 3, has suffered repeated serious respiratory problems. The family pediatrician advised that they leave the house.

Homebuilders (PHM, KBH, LEN) Taking A Beating On Fannie Mae And Freddie Mac Worries
Today, Pulte Homes (NYSE: PHM) is trading down over 3% to $8.76. Pulte has fallen over 15% in the past two weeks. KB Homes (NYSE: KBH) is down over 4% and trading at $15.04. KB Homes has fallen 20% over the past two weeks. Lennar Corporation (NYSE: LEN) is trading down 5% to $10.34. Lennar has fallen close to 30% over the past two weeks.

Senate Housing Bill Still Not Put to a Vote
The Senate failed to pass a huge housing package on Thursday, continuing a legislative process that has been repeatedly bogged down by procedural hurdles, even as the housing market worsens. The multifaceted bill, likely Congress's biggest response to the housing mess, would revamp oversight of the struggling mortgage giants Fannie Mae and Freddie Mac, a measure that Treasury Secretary Henry Paulson has said is vital to restore confidence in the U.S. housing market. The bill would also allow the government to insure up to $300 billion in refinanced mortgages, which Democrats say could help up to 500,000 people avoid foreclosure.