Looks like Wells Fargo Bank wants some extra cash around since there credit rating has been down graded.
Tuesday, December 6, 2011
California joins forces with Nevada in Mortgage Fraud Probe
Let's see if the states can bring a few cases to trial. The Fed's don't seem to have the stomach for it.
Friday, October 7, 2011
Our Drone Fleet is under attack!
I saw this GIZMODO article and thought it is inevitable that someone will learn to use technology to battle technology. The arm's race is just on a different track.
Tell me what you think: http://goo.gl/O6FJV
Thursday, August 4, 2011
Surge of Federal REO Properties Hitting the Markets
Here is an article from CoStar's Watch List.
Surge of Federal REO Properties Hitting the Markets. The Upside: This Could Speed Up a Return to Normalcy.
As the federal government has doggedly worked through concerns about foreclosure documentation practices,
federal financial agencies have aggressively resumed their sale of foreclosed properties.
Through the first half of the year, the FDIC has sold $1.073 billion in foreclosed properties. This compares to
$974.7 million in the first half of last year and $482.2 million in the first half of 2009.
More importantly, the amount of commercial real estate sales has jumped more than 12 times in that time frame.
Just $39.8 million of FDIC property sales in 2009 consisted of commercial and multifamily properties. This year,
more than half of the sales ($540.3 million) have been commercial real estate.
In addition, land sales have increased from $86.1 million in 2009 to $310.6 million this year.
While commercial sales are increasing, single-family residential sales are falling from $307.7 million in 2009 to
$219 million this year.
While there has been some anxiety in the marketplace about what a surge of distressed CRE properties coming
into the marketplace could do to sales values, CoStar Group senior real estate strategist Chris Macke says there
is an upside to the trend.
"The increased disposition activity is good for the industry," Macke said. "The sooner we clear troubled assets,
the sooner the market will return to normal."
However, Macke warned, "with funds available to deal with troubled assets depleted and no appetite from
Congress to provide additional funds, regulatory agencies do have limits on how quickly they can clear out all the
troubled transactions there are to deal with." The nation's government sponsored enterprises are also increasing
their REO property sales.
Through the first three months of the year, Fannie Mae sold 37 multifamily properties on which it had foreclosed
compared to 13 in the same period last year. At the same time, the number of multifamily properties it has picked
up has remained fairly consistent, 50 in the first quarter of this year and 47 a year ago.
Overall, Fannie Mae sold 62,814 properties in the first three months of this year vs. 38,095 in the same period a
year earlier. Those sales have produced proceeds of $11 billion in the first quarter of this year compared to $7.7
billion the year-ago period.
Through the first three months of the year, Freddie Mac has sold 31,628 properties vs. 21,969 in the same
period a year earlier. Freddie Mac did not break out its multifamily property dispositions separately but it was
holding only 15 multifamily repossessed apartment properties on its books as of March 31.
According to the Dept. of Housing & Urban Development, the Federal Housing Administration (FHA) acquired
7,667 REO properties in June and sold a record 13,609 properties (breaking the record of 12,671 properties sold
in May). The FHA REO inventory has declined from 69,958 at the end of the first quarter to 54,645 at the end of
June
.
LARGEST FDIC CRE SALES THIS YEAR:
** 19950 7th Ave NE, Poulsbo, WA, $9.52 million
** 2810 S Highland Ave., Lombard, IL, $9 million
** 106 Inlet Way, West Palm Beach, FL, $8 million
** 210 Automation Way, Birmingham, AL, $6.93 million
** 5100 Northwest Hwy, Crystal Lake, IL, $5.99 million
Thursday, July 14, 2011
Book review: Reckless Endangerment by Gretchen Morgenson - USATODAY.com
This is a very interesting book. Should we be looking for heads? Let me know what you think.
Subject: Book review: Reckless Endangerment by Gretchen Morgenson - USATODAY.com
Friday, July 1, 2011
SFGate: 8 in East Bay admit to rigging foreclosure auctions
Eight Bay Area real estate investors agreed to plead guilty to rigging
foreclosure auctions in Alameda and Contra Costa counties, the Department
of Justice said on Thursday. The investors' actions suppressed competition
for properties, keeping their prices noncompetitive, it said.
The felony charges, which result from a joint investigation by the Justice
Department and the FBI, said the investors conspired to refrain from
bidding against one another at public courthouse-steps auctions, which are
the final stage in the foreclosure process. The investors then "would hold
a secret, private auction at which each participant would bid," the
Justice Department said. The price difference between the public and
private auctions "was the group's illicit profit, and it was divided among
the conspirators, often in cash."
Foreclosures have multiplied with the housing downturn, creating a playing
field for this type of activity. In California, lenders repossess homes
that are in arrears on their mortgages by selling them at public auctions
on county courthouse steps; hundreds of such auctions occur every weekday
throughout the state. Many homes do not generate a bid and thus become the
lender's property; others are bid upon by real estate investors.
"While the country faces unprecedented home foreclosure rates, the
collusion taking place at these auctions is artificially driving down
foreclosed home prices and is lining the pockets of the colluding real
estate investors," said Christine Varney, assistant attorney general in
charge of the Department of Justice's antitrust division, in a statement.
Gina Talamona, a spokeswoman for the DOJ antitrust division, said the
probe is ongoing.
"The antitrust division and FBI continue to investigate real estate
foreclosure auctions and will continue to look at anticompetitive conduct"
there, she said.
The investors were charged with various counts of bid rigging to obtain
selected real estate, which carries maximum penalties of 10 years in
prison and a $1 million fine, and mail fraud, which carries maximum
penalties of 30 years in prison and a $1 million fine.
Charges were filed on Thursday in U.S. District Court for the Northern
District of California in Oakland against Thomas Franciose of San
Francisco, William Freeborn of Alamo, Robert Kramer of Oakland, Thomas
Legault of Clayton, David Margen of Berkeley, Brian McKinzie of Hayward,
Jaime Wong of Dublin, and Jorge Wong of San Leandro.
The actual pleas and sentencing would happen at a future date.
Franciose, Freeborn, Margen and Legault did not return calls for comment.
Kramer declined to comment. McKinzie, Jaime Wong and Jorge Wong could not
be reached. E-mail Carolyn Said at csaid@sfchronicle.com. ----------------------------------------------------------------------
Copyright 2011 SF Chronicle
foreclosure auctions in Alameda and Contra Costa counties, the Department
of Justice said on Thursday. The investors' actions suppressed competition
for properties, keeping their prices noncompetitive, it said.
The felony charges, which result from a joint investigation by the Justice
Department and the FBI, said the investors conspired to refrain from
bidding against one another at public courthouse-steps auctions, which are
the final stage in the foreclosure process. The investors then "would hold
a secret, private auction at which each participant would bid," the
Justice Department said. The price difference between the public and
private auctions "was the group's illicit profit, and it was divided among
the conspirators, often in cash."
Foreclosures have multiplied with the housing downturn, creating a playing
field for this type of activity. In California, lenders repossess homes
that are in arrears on their mortgages by selling them at public auctions
on county courthouse steps; hundreds of such auctions occur every weekday
throughout the state. Many homes do not generate a bid and thus become the
lender's property; others are bid upon by real estate investors.
"While the country faces unprecedented home foreclosure rates, the
collusion taking place at these auctions is artificially driving down
foreclosed home prices and is lining the pockets of the colluding real
estate investors," said Christine Varney, assistant attorney general in
charge of the Department of Justice's antitrust division, in a statement.
Gina Talamona, a spokeswoman for the DOJ antitrust division, said the
probe is ongoing.
"The antitrust division and FBI continue to investigate real estate
foreclosure auctions and will continue to look at anticompetitive conduct"
there, she said.
The investors were charged with various counts of bid rigging to obtain
selected real estate, which carries maximum penalties of 10 years in
prison and a $1 million fine, and mail fraud, which carries maximum
penalties of 30 years in prison and a $1 million fine.
Charges were filed on Thursday in U.S. District Court for the Northern
District of California in Oakland against Thomas Franciose of San
Francisco, William Freeborn of Alamo, Robert Kramer of Oakland, Thomas
Legault of Clayton, David Margen of Berkeley, Brian McKinzie of Hayward,
Jaime Wong of Dublin, and Jorge Wong of San Leandro.
The actual pleas and sentencing would happen at a future date.
Franciose, Freeborn, Margen and Legault did not return calls for comment.
Kramer declined to comment. McKinzie, Jaime Wong and Jorge Wong could not
be reached. E-mail Carolyn Said at csaid@sfchronicle.com. ----------------------------------------------------------------------
Copyright 2011 SF Chronicle
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