Archive for January, 2010

Press Release: HUD and CPSC Issue Guidance on Identifying Toxic Drywall

Friday, January 29th, 2010

WASHINGTON, DC – The U.S. Department of Housing and Urban Development and the U.S. Consumer Product Safety Commission (CPSC) today issued guidance on how to identify the presence of metal corrosion, as well as other indicators of problem drywall in homes. The guidance takes into account visual signs of metal corrosion, evidence of drywall installation in the relevant time period, and the identification of other corroborating evidence or characteristics.

HUD and CPSC’s two-step guidance requires a visual inspection that must show blackening of copper electrical wiring and/or air conditioning evaporator coils; and the installation of new drywall (for new construction or renovations) between 2001 and 2008. To view the full text of this guidance, visit HUD’s website or CPSC’s website (both documents PDF).

The guidance also describes obtaining additional corroborating evidence of problem drywall, since it is possible that corrosion of metal in homes can occur for other reasons. For example, homes with new drywall installed between 2005 and 2008 (and the significant increase in imported problem drywall due in part to Hurricanes Katrina and Rita) must meet at least two additional criteria related to: the chemical analysis of metal corrosion in the home; elemental markers in the drywall; markings on the drywall; or specific chemical emissions from the drywall. Homes with new drywall installed between 2001 and 2004 must meet a total of at least four of those criteria. Collecting evidence of these corroborating conditions may require professional assistance and analysis.

“Families have the right to know if their homes contain problem drywall so they can begin the process of doing needed repairs,” said Jon Gant, Director of HUD’s Office of Healthy Homes and Lead Hazard Control. “This guidance offers homeowners, contractors and state and local authorities a course of action for knowing if they’re dealing with problem drywall or not.”

“We are moving forward to help families who are suffering from problem drywall in their homes. We are committed to helping them, and we will continue to rely on solid science to identify the specific causes and remedies for problem drywall,” said CPSC Chairman Inez Tenenbaum.

This preliminary identification guidance developed by the Federal Interagency Task Force on Problem Drywall is based primarily on the presence of metal corrosion in homes as well as other indicators of problem drywall. Additional analysis will continue to validate these methods and the identification guidance may be modified as necessary.

FHA-insured families experiencing problems associated with problem drywall may be eligible for assistance to help them rehabilitate their properties. HUD’s Community Development Block Grant (CDBG) Program may also be a resource to help local communities combat the problem.

Homeowners who believe they may have problem drywall should immediately report to CPSC by calling 800-638-2772 or logging on to www.cpsc.gov/cgibin/drywall.aspx. Hearing- or speech-challenged individuals may access the phone number through TTY by calling the toll-free Federal Relay Service at 800-877-8339.—

IRS releases new tax rebate form for recent home purchases

Sunday, January 17th, 2010

The IRS released its long awaited tax rebate form 5405 for buyers who closed on a home after November 6, 2009.

DHW asks: Will you use the new form 5405 to requisition your tax credit?

Fix the housing crisis – eliminate interest

Sunday, January 17th, 2010

A great post by seekingalpha.com

History can give us guidance in fixing our real estate crisis.

“Faced with his own foreclosure-nightmare, Julius Caesar came up with a decisive and practical means to cure the solvency crisis which was at the heart of that real estate meltdown. Caesar decreed…that all mortgage interest would be canceled. Thus, all mortgage payments would be credited 100% to principal.”

DHW asks: Do you think interest should be eliminated on existing mortgages?

How the west was won, sort of

Thursday, January 14th, 2010

From The Orange County Register

“The Fed’s San Francisco unit noted housing in the West is “largely stable” in its 1st “Beige Book,” of 2010 — it’s a Federal Reserve Board report on regional economic conditions that’s done eight times a year.”

Read the entire article.

DHW asks: Do you think the housing market is beginning to stabilize?

New Jersey housing market improving but still in Jersey

Wednesday, January 13th, 2010

Despite being in New Jersey, the New Jersey housing market is showing signs of improvement, reports The Star Ledger.

DHW asks: Do you think the New Jersey housing market can survive in New Jersey? Yeah, we didn’t think so.

Former Mayor busted for practicing real estate without a license

Wednesday, January 13th, 2010

From The Florida Times-Union

“Jacksonville City Councilman John Meserve has been suspended by the governor, just hours after he was charged with a third-degree felony of conducting real estate transactions without a license.” John Meserve is a former mayor of Atlantic Beach, FL.

DHW asks: Do you think Meserve is the only public official practicing real estate without a license?

New RESPA handbook now available

Wednesday, January 13th, 2010

The new RESPA handbook is now available on HUD’s website. Homebuyers will find it an interesting read.

DHW asks: Do you find the new RESPA changes helpful?

Game clock: Housing tax credits expire in 107 days

Wednesday, January 13th, 2010

Buyers hoping to take advantage of the housing tax credits will need to have a written, binding contract in effect by April 30, 2010. Buyers will have until July 1, 2010 to close.

There are exceptions for certain armed service, intelligence service and foreign service personnel.

DHW asks: Will you take advantage of the housing tax credits?

Lenders with high FHA default rates subpoenaed

Wednesday, January 13th, 2010

As demand for FHA-insured loans skyrockets, and more risk is incurred by the American tax payer, HUD is investigating mortgage companies with higher than average defaults.

The following companies were served with HUD’s Office of Inspector General (OIG) subpoenas.

• First Tennessee Bank N.A., Memphis, TN
• Alethes LLC, Lakeway, TX
• Security Atlantic Mortgage Co., Edison, NJ
• Pine State Mortgage Corporation, Atlanta, GA
• Birmingham Bancorp Mortgage Corporation, West Bloomfield, MI
• Alacrity Financial Services, LLC, Southlake, TX
• Assurity Financial Services, LLC, Englewood, CO
• D and R Mortgage Corporation, Farmington, MI
• Webster Bank, Cheshire, CT
• Mac-Clair Mortgage Corporation, Flint, MI
• Americare Investment Group, Inc., Arlington, TX
• 1st Advantage Mortgage, Lombard, IL
• American Sterling Bank, Independence, MO
• Sterling National Mortgage Company Inc., Great Neck, NY
• Dell Franklin Financial LLC, Columbia, MD

DHW asks: Have you worked with any of these lenders?

Haiti assistance: How you can help

Wednesday, January 13th, 2010

From CNN’s ‘Impact Your World’:

President Obama urged Americans trying to locate family members to call the State Department at 1-888-407-4747.

The President also encouraged Americans who want to help aid efforts to visit www.whitehouse.gov.