Tuesday, March 26, 2013

Wednesday March 27 Housing and Economic stories


TOP STORIES:

Real estate agent pleads no contest for house rental scam - (www.mercurynews.com) A 46-year-old San Jose man pleaded no contest to grand theft for a home rental scam that prosecutors say left renters without a place to live, with some of them evicted from homes they thought they had legitimately leased. James Troy Wilson, a real estate agent, reached a plea deal with the Santa Clara County District Attorney's Office that was finalized Wednesday. A no contest plea has the same legal effect as a guilty verdict. Under terms of the deal, when he is sentenced on April 26, he should receive one year in county jail and pay restitution. Prosecutors say in 2011, Wilson found vacant homes in Santa Clara, Contra Costa and San Joaquin counties. He changed the locks, performed minor repairs, listed them on Craigslist, and then rented them without the knowledge of the real owners.

ARRRGH! Entrepreneurs Vent About Obamacare - (www.cnbc.com) "The Affordable Care Act is certainly not affordable for us as a small business in America," said Marsha Newberry, owner of a business in Grand Prairie, Texas, in a post dated last Friday. "I do understand what President Obama is trying to do, however I do not believe this is the correct answer." "This has caused our company to examine our projects and reduce our employee numbers by eliminating the labor intense projects," she added. "All this to avoid mandated healthcare by the federal government. So we slow and or reduce our company growth to avoid complete closure of the company. Neither of these are a good solution for small business in America." A Reno, Nevada, business owner said: "We eliminated six jobs within the company, and we will continue downsizing. We will outsource the functions previously done in house in order to stay afloat. We have no budget for this damage. If that doesn't keep us afloat, we will close our business down by September 30 this year. Eleven more people out of jobs." Meanwhile, the National Federation of Independent Business, which unsuccessfully challenged Obamacare in the U.S. Supreme Court, issued a release Tuesday previewing other testimony that small business owners had planned to provide the House Small Business Committee.

Wells Fargo Fabricated and Altered Mortgage Documents on a Mass Basis cap - (www.nakedcapitalism.com) Over the last two and a half years, Wells Fargo, like most of the major mortgage servicers, claimed that it had a “rigorous system” to insure that mortgage documents were accurate and complete. The reason this mattered was that there was significant evidence to the contrary. Foreclosure defense attorneys found repeatedly that, for securitized mortgages, the servicer or foreclosure mill attorney would present documents to the court that failed to show the borrower’s note (a promissory note) had been transferred properly to the trust. This mattered not only on a borrower level, but indicated that originators of the mortgage securitizations hadn’t bothered transferring the notes properly to the trusts that were to hold them. This raised the ugly specter of what was called “securitization fail,” that investors had been sold securities that they had been told were mortgage backed when they might in practice not be. The robosiging scandal was merely the tip of the iceberg of mortgage and foreclosure problems that resulted from the failure to adhere to the requirements of well-settled state real estate law. The banks maintained that there was nothing wrong with mortgage ownership or with the records. All they had were occasional errors and some unfortunate corners-cutting with affidavits. If they merely re-executed all those robosigned documents, all would be well.

Italian Banks’ Bad Loans Seen Rising as Gridlock Hampers Growth - (www.bloomberg.com) UniCredit SpA (UCG) and Intesa Sanpaolo SpA (ISP)Italy’s biggest banks, may struggle to boost profit as political gridlock threatens to increase borrowing costs, worsen an economic contraction and drive up bad loans. The Italian benchmark 10-year bond yield climbed as much as 0.44 percentage point and an index of the country’s financial shares dropped as much as 11 percent after last week’s general election left Italy’s largest political parties groping to form a government amid a four-way parliamentary split. The disarray may impede economic growth as the longest recession in 20 years and tougher rules from regulators, including the Bank of Italy, are already forcing banks to set aside more money against doubtful loans, said Jacopo Ceccatelli, a partner at JC & Associati SIM, a Milan-based financial advisory firm. Banco Popolare SC (BP), Italy’s No. 4 bank by assets, said March 4 it will report a bigger loss for 2012 than analysts estimated because of higher losses at its consumer credit unit.

Stock Run Will End Badly This Year: Marc Faber - (www.cnbc.comEchoing comments made on CNBC earlier this week by Stanley Druckenmiller, founder of hedge fund Duquesne Capital, Faber said that it will end badly for stocks. "But unlike Stan, I believe it will end badly this year," Faber said. He sees two possible scenarios. Either a 20 percent correction for stocks and then a move higher, or a scenario that is similar to 1987 or 2000 when stocks rise strongly early in the year only to drop sharply. Faber has been calling for gold to outperform stocks, but acknowledges that the yellow metal has been in a correction. "I'd rather buy something that is relatively depressed than something that is relatively high," he said.





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