Retaliatory evictions are next issue for Baltimore City housing advocates
Unsightly piles of tenants’ furniture dumped on city sidewalks and lack of formal notice for evictions should be a thing of the past in Baltimore City, thanks to a new law just signed by Mayor Sheila Dixon.
But housing advocates said the law is just the first step toward a long-term effort to improve tenants rights.
“The next issue we want to tackle is landlord retaliation,” said John Netherecut, executive director of the Public Justice Center, a housing advocacy group. “We have some of the most lax laws in the country.”
Netherecut, whose organization joined dozen of tenants rights groups to muster support for the new law, said strengthening the laws preventing landlords from evicting tenants who complain or call a housing inspector is next.
“In most states, once the tenant alleges retaliation, that becomes part of a defense in an eviction case,” Netherecut said.
“Then the judge hears the facts from both sides,” he said.
But Kathy Howard, a lobbyist for the Maryland Multi-Housing Association, said any changes to the laws would add confusion to the eviction process.
“When you’re talking about whether or not someone is doing something for a retaliatory motive, that gets into what a landlord is thinking — which can be very muddy,” she said.
“The issue is whether or not the rent has been paid.”
Dixon signed the “chattel” bill into law Monday. The law requires landlords to take an evicted tenant’s belongings to a dump. The law also ensures tenants receive 14 days’ notice prior to an eviction.
The measure will improve the image of Baltimore, City Council President Stephanie-Rawlings-Blake said at a news conference Monday. “Children should be able to play outside without running into a living room set.”
Outgoing Councilman Kenneth Harris, D-4th District, who introduced the chattel bill, said: “I don’t know if there is anyone on the council who has the agenda like I did to make sure renters are treated fairly.” (by Stephen Janis, The Examiner)
Monday, October 8, 2007
Tuesday, October 2, 2007
Washington Mutual Announces New Standards for Brokers
Oct. 1 (Bloomberg) -- Washington Mutual Inc., the largest U.S. savings and loan, is requiring that mortgage brokers show they disclosed lending terms to borrowers as a record number of Americans face losing their homes to foreclosure.
Brokers who do business with Washington Mutual must provide evidence that they revealed their compensation and explained terms of the loan they recommended including amounts, prepayment penalties, and whether interest rates or payments may change, the Seattle-based lender said in a statement today. Washington Mutual also said it would try to call every borrower represented by a broker to review the terms of a loan before closing.
Mortgage brokers have been criticized in Congress and by consumer advocates who say insufficient disclosure, deceptive lending practices and lax regulation helped raise foreclosures on U.S. homes to a record high in August. Rising interest rates squeezed homebuyers with poor credit histories prompting the worst housing slump in 16 years.
``This is a step in the right direction and it's very important this is done to avert future problems,'' said Allen Fishbein, director of housing and credit policy at the Consumer Federation of America, a Washington-based advocacy group. ``Lenders in general need to play more of an oversight role if they use brokers.''
Washington Mutual rose 38 cents, or 1 percent, to $35.69 at 4:01 p.m. in New York Stock Exchange composite trading. The stock has dropped 21 percent this year.
Proposed Legislation
About 59 percent of all mortgages last year were arranged through brokers, according to Columbia, Maryland-based Wholesale Access Mortgage Research & Consulting Inc.
``These efforts are about further simplifying the process of obtaining a home loan for our customers and helping to ensure that our customers fully understand the various choices available to them,'' Alan Gulick, a Washington Mutual spokesman, said in an e-mailed statement. The changes go into effect Oct. 9, he said.
U.S. House Financial Services Committee Chairman Barney Frank said that he's writing legislation to halt predatory mortgage lending and increase consumer protection.
Frank, a Massachusetts Democrat, circulated an outline of a plan last week that would require mortgage brokers to be licensed and registered under state or federal law. He may also propose eliminating incentive pay to brokers based on a customers' choice of mortgage terms.
Brokers serve as middlemen while lenders are responsible for reviewing applications as well as making approval and funding decisions that lead to bad mortgages, George Hanzimanolis, president of the National Association of Mortgage Brokers, said in an interview last month.
`Already Required'
``Brokers are already required to do this,'' Hanzimanolis said today in commenting on disclosures to borrowers. ``The government requires us to do it. Maybe they are just trying to reiterate what the rules are.''
U.S. Representative Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee, introduced legislation July 12 to create a national registration system and a new licensing standard for brokers. Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat seeking his party's presidential nomination, unveiled legislation Sept. 5 that would bar brokers from steering borrowers into costly loans.
``Any lender that is buying loans from anyone has quality control, has full underwriting capabilities,'' Hanzimanolis said today. ``If there are loans that are bad, those are things they should be identifying up front.''
Brokers who do business with Washington Mutual must provide evidence that they revealed their compensation and explained terms of the loan they recommended including amounts, prepayment penalties, and whether interest rates or payments may change, the Seattle-based lender said in a statement today. Washington Mutual also said it would try to call every borrower represented by a broker to review the terms of a loan before closing.
Mortgage brokers have been criticized in Congress and by consumer advocates who say insufficient disclosure, deceptive lending practices and lax regulation helped raise foreclosures on U.S. homes to a record high in August. Rising interest rates squeezed homebuyers with poor credit histories prompting the worst housing slump in 16 years.
``This is a step in the right direction and it's very important this is done to avert future problems,'' said Allen Fishbein, director of housing and credit policy at the Consumer Federation of America, a Washington-based advocacy group. ``Lenders in general need to play more of an oversight role if they use brokers.''
Washington Mutual rose 38 cents, or 1 percent, to $35.69 at 4:01 p.m. in New York Stock Exchange composite trading. The stock has dropped 21 percent this year.
Proposed Legislation
About 59 percent of all mortgages last year were arranged through brokers, according to Columbia, Maryland-based Wholesale Access Mortgage Research & Consulting Inc.
``These efforts are about further simplifying the process of obtaining a home loan for our customers and helping to ensure that our customers fully understand the various choices available to them,'' Alan Gulick, a Washington Mutual spokesman, said in an e-mailed statement. The changes go into effect Oct. 9, he said.
U.S. House Financial Services Committee Chairman Barney Frank said that he's writing legislation to halt predatory mortgage lending and increase consumer protection.
Frank, a Massachusetts Democrat, circulated an outline of a plan last week that would require mortgage brokers to be licensed and registered under state or federal law. He may also propose eliminating incentive pay to brokers based on a customers' choice of mortgage terms.
Brokers serve as middlemen while lenders are responsible for reviewing applications as well as making approval and funding decisions that lead to bad mortgages, George Hanzimanolis, president of the National Association of Mortgage Brokers, said in an interview last month.
`Already Required'
``Brokers are already required to do this,'' Hanzimanolis said today in commenting on disclosures to borrowers. ``The government requires us to do it. Maybe they are just trying to reiterate what the rules are.''
U.S. Representative Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee, introduced legislation July 12 to create a national registration system and a new licensing standard for brokers. Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat seeking his party's presidential nomination, unveiled legislation Sept. 5 that would bar brokers from steering borrowers into costly loans.
``Any lender that is buying loans from anyone has quality control, has full underwriting capabilities,'' Hanzimanolis said today. ``If there are loans that are bad, those are things they should be identifying up front.''
Monday, October 1, 2007
Report criticizes Housing Authority for demolishing public housing
The number of occupied public housing units in Baltimore has dropped 42 percent over the past 15 years — from 16,525 to 9,625 — as the Housing Authority of Baltimore City “is now in the demolition business,” according to a report from The Abell Foundation.
“With virtually no plans to replace the deteriorated units being razed or sold, tenant representatives and housing advocates have watched with growing alarm as they wonder if the Housing Authority has abandoned its mission to house the poor,” wrote Joan Jacobson, author of the recent report, “The Dismantling of Baltimore’s Public Housing.”
While more than a quarter of Baltimore families live in poverty, the Housing Authority is removing or demolishing 2,400 homes from its inventory, according to the report.
The report further states the Housing Authority is planning to spend almost twice as much on demolition, $24 million, as it will spend on redevelopment, $14 million, in 2007 and 2008.
People who read this also read:
“Today’s demolition plans offer no sense of hope for Baltimore’s neediest,” Jacobson wrote.
In a lengthy response, the Housing Authority said the report failed to recognize the funding crisis and complex challenges that affect every public housing authority in the nation.
The Housing Authority plans to lease 2,500 new Section 8 units in the next year. The Housing Authority reported funding for public housing decreased 33 percent from 1999 to 2006.
While the number of public housing units has decreased over the years, the Housing Authority has said it has increased its Section 8 vouchers to make up for the loss of units, as reported in The Examiner’s “Housing Matters” series, Sept. 17 and 18.
“The Jacobson report is filled with inaccuracies, distorts the historical record and offers no useful recommendations to respond to the crisis caused by the steady erosion of federal support for public and other types of affordable housing,” the Housing Authority said.
The Abell Foundation is a Baltimore nonprofit dedicated to improving the quality of life in the city.
Recommendations
» The state should pass a fair-housing law that requires landlords to accept Section 8 vouchers, similar to laws in Howard and Montgomery counties.
» A “one-for-one” replacement policy for demolished units should be adopted.
» Developers, city officials and housing experts should study city public housing. (by Andrew Cannarsa, examiner.com)
“With virtually no plans to replace the deteriorated units being razed or sold, tenant representatives and housing advocates have watched with growing alarm as they wonder if the Housing Authority has abandoned its mission to house the poor,” wrote Joan Jacobson, author of the recent report, “The Dismantling of Baltimore’s Public Housing.”
While more than a quarter of Baltimore families live in poverty, the Housing Authority is removing or demolishing 2,400 homes from its inventory, according to the report.
The report further states the Housing Authority is planning to spend almost twice as much on demolition, $24 million, as it will spend on redevelopment, $14 million, in 2007 and 2008.
People who read this also read:
“Today’s demolition plans offer no sense of hope for Baltimore’s neediest,” Jacobson wrote.
In a lengthy response, the Housing Authority said the report failed to recognize the funding crisis and complex challenges that affect every public housing authority in the nation.
The Housing Authority plans to lease 2,500 new Section 8 units in the next year. The Housing Authority reported funding for public housing decreased 33 percent from 1999 to 2006.
While the number of public housing units has decreased over the years, the Housing Authority has said it has increased its Section 8 vouchers to make up for the loss of units, as reported in The Examiner’s “Housing Matters” series, Sept. 17 and 18.
“The Jacobson report is filled with inaccuracies, distorts the historical record and offers no useful recommendations to respond to the crisis caused by the steady erosion of federal support for public and other types of affordable housing,” the Housing Authority said.
The Abell Foundation is a Baltimore nonprofit dedicated to improving the quality of life in the city.
Recommendations
» The state should pass a fair-housing law that requires landlords to accept Section 8 vouchers, similar to laws in Howard and Montgomery counties.
» A “one-for-one” replacement policy for demolished units should be adopted.
» Developers, city officials and housing experts should study city public housing. (by Andrew Cannarsa, examiner.com)
Foreclosure Fraud
The D.C. Council contemplates a law to prevent it.
WHEN JOY JENISE Jackson and her bridegroom, Kurt Fordham, walked down the aisle together at the Mayflower Hotel last year, they did it in style. The happy couple joined their 360 guests for lobster and four wedding cakes, then bestowed gifts on their attendants that included a house and a Porsche. The newlyweds were also business partners, in the Lanham-based Metropolitan Money Store, a "foreclosure rescue" service that advertised itself as a savior to families in danger of losing their homes.
How romantic. Alas, Metropolitan Money Store was a scam to bilk hundreds of financially troubled homeowners out of the equity in their homes -- allegedly to the tune of $60 million, according to a class-action lawsuit filed in U.S. District Court in Maryland. The company allegedly pitched its services to minorities via radio advertising, then siphoned off their wealth through "straw buyers" who would acquire title to their homes. The Secret Service and FBI are conducting investigations.
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Metropolitan Money Store is only the latest alleged version of an old scam that preys on people -- often elderly or minority -- who find themselves in this difficult family crisis. Foreclosure happens fast; as the bank letters begin arriving, people panic. Certainly the risk is not confined to Maryland, which had enacted legislation designed to combat foreclosure-rescue abuses in 2005. The District's attorney general has filed suit on behalf of at least 27 District residents who were allegedly victimized by the Metropolitan Money Store.
The D.C. Council is considering a bill to prohibit foreclosure consultant rip-offs in the District. Shepherded by Mary M. Cheh (D-Ward 3), the legislation, which is likely to pass, would outlaw the kind of promise that the Metropolitan Money Store allegedly made and allegedly broke: Hand over the title to your house in return for a bailout. The bill also declares that anyone who engages in the foreclosure rescue business is legally bound to act in the homeowner's best financial interest. No doubt the next generation of con artists will try to find a way around these strictures. But with the housing market headed for what could be extended difficulty, the District's homeowners need protection against fraud, and this bill is a good start toward giving it to them. (www.washingtonpost.com)
WHEN JOY JENISE Jackson and her bridegroom, Kurt Fordham, walked down the aisle together at the Mayflower Hotel last year, they did it in style. The happy couple joined their 360 guests for lobster and four wedding cakes, then bestowed gifts on their attendants that included a house and a Porsche. The newlyweds were also business partners, in the Lanham-based Metropolitan Money Store, a "foreclosure rescue" service that advertised itself as a savior to families in danger of losing their homes.
How romantic. Alas, Metropolitan Money Store was a scam to bilk hundreds of financially troubled homeowners out of the equity in their homes -- allegedly to the tune of $60 million, according to a class-action lawsuit filed in U.S. District Court in Maryland. The company allegedly pitched its services to minorities via radio advertising, then siphoned off their wealth through "straw buyers" who would acquire title to their homes. The Secret Service and FBI are conducting investigations.
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Metropolitan Money Store is only the latest alleged version of an old scam that preys on people -- often elderly or minority -- who find themselves in this difficult family crisis. Foreclosure happens fast; as the bank letters begin arriving, people panic. Certainly the risk is not confined to Maryland, which had enacted legislation designed to combat foreclosure-rescue abuses in 2005. The District's attorney general has filed suit on behalf of at least 27 District residents who were allegedly victimized by the Metropolitan Money Store.
The D.C. Council is considering a bill to prohibit foreclosure consultant rip-offs in the District. Shepherded by Mary M. Cheh (D-Ward 3), the legislation, which is likely to pass, would outlaw the kind of promise that the Metropolitan Money Store allegedly made and allegedly broke: Hand over the title to your house in return for a bailout. The bill also declares that anyone who engages in the foreclosure rescue business is legally bound to act in the homeowner's best financial interest. No doubt the next generation of con artists will try to find a way around these strictures. But with the housing market headed for what could be extended difficulty, the District's homeowners need protection against fraud, and this bill is a good start toward giving it to them. (www.washingtonpost.com)
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