Is Getting Identity Theft Insurance A Good Idea?

With mortgage fraud scams around involving "straw buyers" that use stolen identities, maybe so. Maybe your current homeowner's insurance policy already covers you for it. Maybe the deductible is so high that the policies are just a way for insurance companies to squeeze more money out of you. To read more about it, see What Is Identity Theft Insurance?, reported at washingtonpost.com.

To see which states have "credit freeze laws" (laws that allow you to "freeze" access to your credit report) and how to implement a freeze, see State Security Freeze Laws.
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List Of States With Credit Report "Freeze" Laws

To see which states have "credit freeze laws" (laws that allow you to "freeze" access to your credit report) and how to implement a freeze, see State Security Freeze Laws.
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Federal, State Legislatures Considering Identity Theft Laws

Federal Government
Leahy introduces new bill to combat identity theft

Alaska
Bills take on identity theft

Arizona
OK given to new defense against ID theft

California
Cox Introduces Identity Theft Protection Bill

Colorado
Bill to curb identity theft proposed

Georgia
Proposed Bill Would Support Victims of Identity Theft

Indiana
Indiana House Approves Identity Theft Protection Plan

Maryland
Unanimous Senate passes bill aimed at identity theft

Mississippi
Identity-theft protection bill moving forward

Montana
House OK's identity theft measures

New Mexico
ID theft bill permits records freeze

Oklahoma
Legislation would increase penalty for ID theft
Tougher ID Theft Penalties Headed to Okla. House Floor
Bill to Protect Victims of Identity Theft Clears Okla. Senate

Oregon
Law officials testify for ID theft bill
New legislation targets identity theft

Tennessee
Lawmaker Pushes Identity Theft Bill

Texas
Bill filed to keep public records open

Utah
House OKs bill aiding victims of ID theft

Wisconsin
New Credit Freeze Law has some complications
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Arizona Feds Get Indictment On Five In Pre-Foreclosure Scam

A federal grand jury in Arizona has indicted five people on charges of defrauding the U.S. Department of Housing and Urban Development (HUD) of about $1.9 million in an alleged scam that targeted homeowners facing foreclosure and first time homebuyers, according to an article in The Arizona Republic. The indictment charges that the group abused the HUD pre-foreclosure program that was set up to help struggling homeowners avoid foreclosure by setting up a loan workout arrangement where the homeowners would have their homes appraised and sold to get maximum equity out of their homes, as market conditions would allow. Allegedly, at least 65 home were involved and homeowners were ripped off of any equity they could have realized on the sale.

The five defendants indicted are escrow officer Trudy Peters, loan officers John Soto and Larry Smith, and HUD certified housing counselors Maria Felix and Tony Vasquez. To read more, see 5 indicted in real estate fraud case.
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FBI Raids Alaska Title Company In Mortgage Fraud Investigation; Seeks Documents

The offices of Alyeska Title Guarantee, an Alaska title insurance and closing agent, was raided by the FBI on Wednesday, according to a report by KTVA - CBS 11 in Alaska. Reportedly, the FBI was seeking information on transactions involving specific people and specific properties in Anchorage and confirmed that they took financial documents during the search, but would not identify either the documents taken or the source of the fraud allegations. No arrests, yet - the investigation continues. To read more, see FBI raid surrounding allegations of mortgage fraud.
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Eight Indicted In $14 Million Dallas Area Straw Buyer Scam

A Dallas federal grand jury has returned a 17 count indictment charging eight defendants with various charges related to a mortgage fraud scheme they operated in the Dallas area, according to an article by Pegasus News. The indictment lists the following defendants:

• Donald L. Jones, a/k/a “Don Jones,” and Joseph B. Jackson, Sr., a/k/a “Joseph Jackson” (both of whom owned and operated Affordable Homebuilders and the YIN Group in Irving), Donald Matthew Jones, a/k/a “Mat Jones,” Daniel J. Sattizahn, Robert Patterson, Jr., a/k/a Bob Patterson, Catherine L. Dike, a/k/a “Cathy Dike,” and “Cathy Carter,” William Barnes, who owned BCT Landscaping, and Foday S. Fofanah.

For all the details, see Grand jury indicts eight on $14 million mortgage fraud scheme.

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Subprime Mortgage Trouble Spreading To "Alt-A" Market?

The trouble being experienced by the mortgage market that caters to borrowers with weak credit (subprime borrowers) may be spreading to, what the mortgage industry refers to as, the "Alt-A" mortgage market, according to an Associated Press article reported by the Florida Association of Realtors.

"Alt-A" refers to that portion of the mortgage market that caters "to people who fall in the gray area between “prime” (borrowers considered the best credit risks) and “subprime” (borrowers considered the greatest credit risks)", according to the article. Alt-A borrowers are considered less risky than subprime borrowers because of their higher credit scores.

Data from one industry analyst indicates that "the default rate for Alt-A mortgages has doubled in the past 14 months." This data, however, contrasts with recent Congressional testimony given by the head of the Federal Reserve Board.

To read more, see Mortgage defaults start to spread.
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Subprime Mortgage Lending Guidelines Proposed

Proposed subprime mortgage lending underwriting guidelines, designed to get control over the increasing number of delinquencies and foreclosures in the subprime market, have been prepared and made open for comment, according to an article in Realty Times. The guidelines are intended to focus the lenders on better assessing the borrowers' ability to repay and specifically address seven lending practices that, many believe, have been creating havoc in the market. To read more, including links to other relevant background information, see New Subprime Guidelines Open For Comment.

To read the statement, prepared jointly by the four relevant Federal government agencies, see Proposed Statement on Subprime Mortgage Lending.
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New Century Stops Taking Loan Appliations

The bad news continues for subprime mortgage lending giant New Century Financial Corporation as they announced late today that it has stopped accepting loan applications because some of its financing sources are drying up, according to an article at MarketWatch. The company also reported that an unidentified company who bought loans from New Century that have since soured has demanded that New Century buy back the mortgages. For more, see New Century stops accepting loan applications (Subprime specialist tries to maneuver as financial backers clamp down)

For other recent news on New Century, see:

• Subprime Mortgage Lender Target Of Criminal Inquiry
• Lenders take beating in subprime fallout
• Subprime Mortgage Lender New Century Dumped From S&P Index

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Foreclosure Rescue Operators In The Spotlight In Boston; Eastern Massachusetts

A recent Boston Herald article, reported at BostonHerald.com spotlights the foreclosure rescue industry in Boston and across Easter Massachusetts. Reportedly, the scam has caught the attention of Massachusetts Attorney General Martha Coakley’s office. To date, two operators have already been brought to court by the AG's office with more potentially in the pipeline. The story of one homeowner is decribed, including how she successfully resisted the pressure of operators who bombarded her mailbox with solicitations after a legal notice announcing the foreclosure action was published in the local paper. To read more, see Home ‘rescuers’: Mortgage troubles attract schemers.
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Egregious Conduct By Credit Card Issuers Consistent With That Of Predatory Mortgage Servicers

(revised 3-10-07)

Top officials from the major credit card issuers testified on Wednesday which highlighted some of the egregious practices their companies engaged in that soaked consumers out of millions of dollars. Click here to see yesterday's NBC Nightly News video covering the hearing, report by Lisa Myers.

Click here to view C-Span's 3-7-07 coverage of the Senate hearings (Be sure you have the most recent version of the Real Player).

While not a home equity theft issue, per se, the egregiousness of the conduct decribed in the hearings is not inconsistent with the conduct of predatory mortgage servicers when collecting bogus fees from financially strapped homeowners, which is an issue I have reported on in the past and is a home equity theft isssue.

The obvious approach by these large financial companies appears to be to try and get away with as much as possible for as long as possible, and when Congress finally gets around to hauling them into a hearing to answer questions, they simply say they're sorry and promise not to do it again.

Now that Congress is controlled by, arguably, the more "consumer friendly" of the two major parties, I suspect that at some point they will address the problems of predatory mortgage servicing.

For previous posts on predatory mortgage servicing, and links to relevant background information, see:

• Private Property Rights Deferred: Has Predatory Mortgage Servicing Destroyed the American Dream
• Predatory Mortgage Servicing Destroying The American Dream?
• Predatory Mortgage Servicing Practices
• Predatory Mortgage Servicing

For Attorneys and Law Students Only

A point that was stressed by one of the witnesses in the hearing was that the credit card issuers weren't doing anything illegal when they were soaking the consumer with high fees, increased interest rates, universal default provisions, etc. My question simply is:

• Why aren't the credit card contracts that purportedly allow the issuers to rip off the consumers considered unconscionable "contracts of adhesion?"

My understanding is that such a claim is an equitable claim, which may not be subject to the arbitration provisions that the major financial corporations are notorious for sticking into all their credit card contracts. Accordingly, such a claim could be litigated in a court of law as a class action lawsuit, rather than as an individual case in front of an arbitrator (If I'm wrong, somebody please correct me).

Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics zebra.

Equitable Mortgage Doctrine In California

For a post containing links and citations to some of the equitable mortgage doctrine cases decided by the California Supreme Court, see Equitable Mortgage Doctrine In California. These cases could be helpful for those representing homeowners who have signed away their homes to foreclosure rescue operators. See, for example, Michigan Federal Judge Orders Return Of Home By Foreclosure Rescue Operator.

(revised 3-8-07 7:22 pm) equitable mortgage zebra.

Indiana Foreclsoure Rescue Legislation Passes Senate, On To House

Senate Bill 390 (SB 390) unanimously passed the Indiana State Senate by a 49-0 vote. The bill has now been referred to the Indiana House of Representatives for consideration. To read more on this and other pending mortgage foreclosure related legislation in Indiana, see the opinion articles:

• Fighting foreclosures, published by the Journal Gazette, at Fort Wayne.com, and
• Openness laws could help put a lid on foreclosures, published by The Indianapolis Star, at IndyStar.com.

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Elderly Risk Losing Homes In Reverse Mortgage Trap

The elderly "looking to cushion their retirement with reverse mortgages are at risk of losing their homes", according to an investigative report prepared by one consumer watchdog. The investigation "found glaring deficiencies in product information and vague default clauses that could be triggered by minor oversights."

To read more, see Elderly risk losing homes in reverse mortgage trap, in The Sydney Morning Herald.

California Reverse Mortgage / Annuity Scam Legislation

The State of California passed (in September, 2006) an amendment (SB 1609) to their existing statute that protects the elderly who obtain reverse mortgages (Cal. Civil Code Section 1923 et. seq.) in a further attempt by the state to stop home equity theft by unscrupulous lenders through the use of reverse mortgage scams. The key provision in the 2006 amendment prohibits lenders from requiring the purchase of an annuity by an elderly borrower when obtaining a reverse mortgage. For more information, see:

• Gov. Schwarzenegger Signs Legislation Protecting Seniors, Consumers from Fraud (includes video of Governor's announcement),
• Senate Bill No. 1609 (SB 1609), for the text of the California legislation amending the existing California reverse mortgage statute,
• California Civil Code Section 1923 et. seq., the existing state statute that protects the elderly in reverse mortgage transactions (in effect since 1998).

Editorial Note:

California may be the first state in the United States to have a statute specifically addressing the prevention of home equity theft by the unscrupulous use of reverse mortgage scams when its statute when into effect in 1998. I don't know of any other state that has such a statute (if anyone knows otherwise, please let me know).

Unless I'm mistaken, California was also the first state in the country (in 1979) to pass statutes specifically addressing the prevention of home equity theft by unscrupulous foreclosure rescue operators, covering both:

• foreclosure purchasers (Home Equity Sales Contract Act - Civil Code Section 1695 et. seq.) and
• foreclosure consultants, which include the "foreclosure sale surplus / excess funds operators" (Mortgage Foreclosure Consultants Act - Civil Code Section 2945 et. seq.)

Inasmuch as the other 49 states apparently failed to follow California's lead on regulating foreclosure rescue operators back in 1979 (it wasn't until a quarter century later when the State of Minnesota passed their anti equity stripping statute, Section 325N in 2004, expiring on 12-31-2009, that other states began to fall into line on regulating foreclosure rescue), I wonder if California will again be ignored on the issue of addressing home equity theft through reverse mortgage scams.

(If past is prologue, maybe we should just wait and see what Minnesota does on reverse mortgage scams before other states decide to fall into line on this issue as well. If so, we can all "set our alarm clocks for the year 2023"; 1998 + 25, if my math is correct.)

Go here for other posts on reverse mortgage problems.

Go here , go here , and go here for other posts on elder financial abuse. zeta zebra elder financial abuse

Subprime Mortgage Lender New Century Dumped From S&P Index

After a particularly rough last week or so, subprime lender New Century Financial Corporation will get to spend until the close of business Wednesday on Standard & Poor's S&P SmallCap 600 index, at which point it will be replaced by Ruth's Chris Steak House Inc. The announcement was made late Monday after New Century's shares took another beat down, this time to the tune of almost 70%, closing at $4.56.

Source: Ruth's Chris to join S&P SmallCap 600, reported at BusinessWeek.com
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Subprime Mortgage Trouble Portends "Bright Future" For Some Foreclosure Rescue Operators

There are certain foreclosure rescue operators who must be relishing all the bad news coming out of the subprime mortgage market. It is the subprime market that, among other things, allowed many less than credit worthy people buy homes with very little downpayment. It is the subprime market that allowed themselves to be victimized by the mortgage fraud groups who scammed mortgage lenders with straw buyers, fraudulent stated income (liars' loans) mortgage applications, and bogus appraisals. With the increase in delinquency rates, and the possibility that those rates will be sustained (or be even increased) in the indefinite future, there appears to be ample opportunity for generating new business for one branch of the foreclosure rescue industry.

Inasmuch as it appears that an increasing number of the current delinquencies (and I anticipate even more in the future) are occurring in connection with property where the property owner has little or no equity in their homes (in fact, they may owe more to the mortgage lender than what the property value is), the operators that I'm referring to are not those who seek out high equity, distressed property who offer financially strapped homeowners sale leaseback arrangements that are coupled with a buy back option.

The operators I'm referring to are the "upfront fee" type of operators and the "equity skimmers", neither of whom needs to find "high equity" homeowners in financial distress in order to do business.

Upfront Fee Operators

The "upfront fee" operators, often calling themselves "mortgage consultants", "mortgage workout specialists", and others who use self-styled titles, promise to provide "consulting services" to homeowners facing foreclosure in dealing with mortgage lenders in exchange for fees that are paid at the outset of the relationship.

See, for example:

1) Madigan, Lawmakers Take On Mortgage Foreclosure "Rescuers", (Illinois) which, among other things, describes one case where an operator charged financially distressed homeowners between $350 and $900 for services in negotiating with their mortgage lender.

2) Owner of “My House Saver” Ordered to Make Refunds at Attorney General Request (Indiana)

3) AG Cooper shuts down foreclosure fraudsters (North Carolina) Click here for WCNC-TV news report

4) Former appraiser convicted of defrauding 30 people (Utah)

5) Womans court appearance in Debt Consildation case (Pennsylvania)

6) Get Gephardt: Equity Skimming Crooks Sentenced (Utah) Click here for Channel 2 TV Report

7) $250,000 Fine Levied Against Fraudulent Foreclosure "Rescue" Business (Illinois)

The Equity Skimmers

The equity skimmers, generally, are those who convince the homeowner to sign over their home, promising them that they will pay off the existing mortgage, and then proceed to either (A) rent out the property and pocket the rental proceeds and tenant security deposits, or (B) resell the property on an installment payment "land contract" (aka installment sale contract, contract for deed, wrap around mortgage, etc., depending on the part of the country you are in) and pocket the monthly payments received from his/her buyer. In either case, the operator fails making the existing house payments until the mortgage lender ultimately takes ownership of the property after a foreclosure sale.

See, for example:

1) Lyndhurst, N.J., Men Get Sentenced for Defrauding Homeowners in Mortgage Scam (New Jersey)

2) Cox Takes Legal Action Against Company Engaged in Home Equity Stripping (Michigan)

3) Court Records: Men Failed To Pay For 22 Homes Over 12 Years (Indiana) Click here for Call For 6 TV report

4) Long Island Couple Lose Home, "Skimmer" Convicted (New York)

5) Accused Equity Skimmer Commits Suicide; Attorney's Law License Suspended

Combination of Upfront Fee and Equity Skimmer Operator

Some operators have actually combined the "upfront fee" approach with a form of "equity skimming" where, in addition to taking an upfront fee, they convince the homeowner to remit monthly payments to them under the false pretense that those monies are being applied to a "payment plan" designed to cure or reinstate the defaulted mortgage (without the need to actually talk the homeowner into signing over the title to their home). In some of the cases listed below, the operators actually filed multiple, false bankruptcy petitions in the Federal Bankruptcy Court for the purpose of stalling the ultimate foreclosure sale of the property so that the operator can continue collecting the monthly payments from the homeowners for as long as possible.

See, for example:

1) Detroit Man Gets 3 Years in Foreclosure Scam (Michigan), which also involved the abuse of the Federal Bankruptcy Court system.

2) Press Release - U.S. Attorney, (S.D. Cal.), (California), another bankruptcy fraud case.

3) Springboro Man Indicted In "Operation Truth Or Consequences" National Action Bankruptcy Fraud (Ohio), also involved bankruptcy fraud.

4) Mortgage Scam Puts Dozens of Dallas Homeowners on the Streets (Texas)

Conclusion

Over the last few years, given the high rates of property appreciation, the upfront fee and the equity skimming operator scams have not been as prevalent since it was preferable for an operator to just position itself to get most or all of the equity appreciation in the property from a homeowner facing foreclosure by offering a sale leaseback program that I have referred to in other posts.

But because of the general downturn in real estate values, and the increase in delinquencies in mortgages secured by property with little or no equity, it seems clear to me that the use of the sale leaseback programs will diminish somewhat in the next couple of years and, instead, the "upfront fee" operators and the "equity skimmers" will be "coming out of the woodwork."

So, the next time you hear a story about the troubles in the subprime mortgage market, don't think that there isn't any connection between it and the foreclosure rescue industry. (Also, don't be surprised if you begin noticing some of the mortgage brokers and loan officers who were once fraudlently peddling subprime mortgage loans "drift" into the foreclosure rescue business as "mortgage consultants", "mortgage workout specialists", or equity skimmers.)

By the way, for another story on the subprime mortgage disaster, see Mortgage Crisis Spirals, and Casualties Mount, reported in yesterday's New York Times.

and Lenders take beating in subprime fallout, reporting that New Century Financial Corporation lost 60% of its market value yesterday.
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Trying To Recover A Home After A Foreclosure Rescue, "Equity Stripping" Transaction

It is quite common for a financially distressed homeowner (for purposes of this post, I am only considering a homeowner with a "significant" amount of equity in their home) to be approached by, and subsequently do business with, someone promising to help the homeowner "rescue" his/her home from foreclosure. In doing so, the homeowner's title to the home quite commonly ends up in the "home rescuer's" name, or possibly, in the name of some third party stranger.

Sometimes, the homeowner is fully aware that they are signing over their home title; other times, they sign it over unwittingly. Sometimes, the "home rescuer" procures the title either through fraud or forgery. The transaction typically also involves an oral or written understanding that leaves the homeowner believing that they will be entitled to buy back their home within a certain time period.

There are times when the "home rescuer", either after or simultaneously with taking title to the property of a financially strapped homeowner, proceeds to "strip the equity" from the property either:

(A) by getting a mortgage on the property for more than what is currently owed and where the rescuer pockets the difference, or

(B) by selling the property to a third party (who may finance the purchase with a mortgage) and where, again, the rescuer pockets the excess proceeds,

in either case, while the homeowner maintains possession of the home, both before and after the equity stripping.

See, for example:

1) Homeowner gets hard lesson in foreclosure rescue plans (Texas)
2) Madigan Sues Another Mortgage Foreclosure "Rescuer" (Illinois)
3) Attorney General Abbott Files Emergency Action Halting Bogus Foreclosure Rescue Operation (Texas)
4) Three Defendants Added To Federal Indictment In Foreclosure Scam Targeting Homeowners In Default (California)
5) Mortgage fraud cases multiply, hit more homeowners (California)
6) False Hopes - Inland homeowners facing foreclosure encounter scams under guise of refinancing (California)
7) State sues mortgage companies in homeowners scam (Illinois)


For those attorneys who represent homeowners in situations like this and who are trying to find an approach to undo the legal mess that their clients might find themselves in, see Exercising Options To Buy, Rights Of Intervening Interests, Notice, Bona Fide Purchaser, Duty Of Inquiry, & Other Stuff, which attempts to raise some legal issues that may be of some value in formulating such an approach.

I am not suggesting that there is some "magic trick" in getting back the homeowner's property in this type of situation. However, I am clearly suggesting (as I think I have suggested in my posts on the "equitable mortgage doctrine") that, in some but not all cases, there are certain issues of real property law that could potentially benefit the homeowner in getting their home back in certain situations that, probably because the financially strapped homeowner cannot afford legal counsel, appear to be going unaddressed. I say this based on the numerous media reports that I have seen (and on some of which I have posted blog entries throughout this blog).

Further, even if the legal mess can't be completely undone, the financially strapped homeowner's legal rights under local real estate law might create enough leverage to negotiate a satisfactory financial settlement by and among (A) the homeowner, (B) the rescue operator, (C) the subsequent purchaser and/or encumbrancer, and (D) possibly also the title insurance company who may have insured the title to the home for the subsequent purchaser and encumbrancer when they acquired their interests in the home from the rescue operator. equitable mortgage zebra

Killer Cop Caught In Attempt To Fleece Grandmother Out Of Home

In another story about a grandchild wanting to fleece their grandmother out of her home (see my 3-3-07 post on the other story), ex-Las Vegas police officer Ron Mortensen, who is currently serving a life sentence for first-degree murder, has been charged with trying to bilk his mentally incompetent grandmother out of her million dollar home in California to pay for his appeal, according to a media report by the Las Vegas Review-Journal, reported at reviewjournal.com. He and a co-defendant have been charged with exploitation of the elderly, forgery and theft.

To read more, see Plotting From prison: Killer cop faces more charges (Mortensen accused of trying to bilk grandmother out of home)
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Mortgage Fraud Lawsuits Targeting Arizona Industry Players, Homebuyers

Mortgage brokers, appraisers, real estate agents, title firms and home buyers have been targeted in dozens of civil lawsuits filed in Arizona within the past few months by big lenders and Wall Street investors, according to a recent article in The Arizona Republic, at azcentral.com.

The allegations of mortgage fraud include charges of "cash back" deals to lying about income on loan documents. The suits are believed by some to represent the beginning of the fallout from mortgage fraud in Arizona.

Civil lawsuits alleging mortgage fraud are welcomed sources of information, according to one regulator. These suits often confirm matters that regulators may already be investigating, and could portend criminal charges by law enforcement agencies.

"The discovery, deposition and documents from civil litigation of cash-back deals will clearly show criminal conduct. Private lawyers will be able to package up these cases for prosecutors and criminal trials," according to attorney Michael Manning, who represents several plaintiffs involved in the lawsuits.

To read more, including some details from specific lawsuits, see Lawsuits targeting mortgage schemes.
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It's "Deja Vu All Over Again!", More New York Attorneys In Hot Water

Before I start this post, I want to acknowledge that there is not even a remote connection between these stories and real estate in general, much less home equity theft in particular. And all suspects in criminal proceedings are presumed innocent until found guilty by a jury in a court of law (or unless they plea bargain the case out).

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However, as Head Blogmaster, and since today is Sunday and nobody comes by on Sundays anyway, I can't help myself but to choose to exercise a little "editorial license" and post this blog entry anyway (special thanks to #8, Yankee great Yogi Berra for coining such a great line that I felt compelled to borrow for the title to this post, and one more thing, will somebody (preferably someone with a little political influence) in the great state of New York please give the New York State Bar Association a "wake up call"?). Now, on to the post.

DA Hynes Announces Indictment

On Friday, Brooklyn District Attorney Charles Hynes announced the indictment of attorney Moses Osayamwen on charges that he stole $15,000 from a client he represented in a personal injury matter, according to an online article on EmpireStateNews.net.

As a result of injuries received in a car accident, attorney Osayamwen obtained a $34,000 settlement on behalf of his injured client from the driver’s insurance company. The indictment reportedly charges that attorney Osayamwen kept the money, while leading his client to believe the settled suit was still pending. The check from the insurance company was made out to both Osayamwen and his client. Osayamwen allegedly forged his client's name on the check in order to access the funds.

For more, see Civil defense attorney indicted.

Judicial Commission Recommends Censure

In another story about a New York attorney who also happens to be a judge (and completely unrelated to this blog), the New York State Commission on Judicial Conduct has determined that Cathryn Doyle, a judge of the Surrogate’s Court, Albany County, should be censured, according to another online article on EmpireStateNews.net.

In connection with an investigation that the Commission was conducting, they found that Judge Doyle gave testimony that showed “a lack of candor”, “repeatedly minimized and distorted” her knowledge of the matter being investigated, and

• "[f]ound that the judge engaged in misconduct by giving “shifting and evasive” responses to questions, which “violated her duty to be forthright and cooperative.” The Commission stated: “In our view, a judge’s obligation to testify truthfully and forthrightly…is not satisfied by responses that are ‘overly technical,’ incomplete or otherwise misleading.”"

Interestingly, however, the recommendation of the Commission's Administrator that the judge be removed from office was rejected by the Commission, citing a mitigating factor that is set forth in the article.

For more, see Judge should be censured, says state commission.
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Why Subprime Mortgage Lenders Are In Trouble

In a recent BusinessWeek.com article, an industry analyst asserts that one reason why the subprime mortgage market has gone into a steep decline is "[a] sudden but little-noticed shift in lenders' strategy that occurred at the end of 2005: Lenders went from competing for customers on price (by lowering rates) to competing for customers on easy terms (by lowering lending standards). As a result, the conclusion is that "[t]he subprime loans that were originated in 2006 that are turning out to be shockingly weak."

The expectation is that "[t]he pool of foolish loans they made in 2006 will continue to haunt them for some time to come."

To read more, see
Why Subprime Lenders Are In Trouble
(New analysis suggests that subprime lenders lowered their lending standards last year as they competed for business)

For other BusinessWeek.com articles on the troubles in the subprime mortgage market, see

• Subprime Time Bomb and
• A Painful Hiss from the Subprime Balloon

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Kansas Towns Giving Away Free Land

For those of you looking for some inexpensive land to build your homestead and are willing to move to any one of a number of rural Kansas towns, you might want to check out KansasFreeLand.com, where they are giving away the land for nothing, according to an article in the Lexington Herald-Leader, reported at lexington.com.

According to the article, there are also towns in Nebraska and North Dakota that are offering similar deals.

One Kansas town has plans to offer free commercial land to entrepreneurs who build a business there, and according to the website, there are three towns that are already offering free land for commercial construction. See Free Commercial Land.

To read more, see Struggling rural areas tout free land to lure new residents.

Editor's Note:

What the article doesn't tell you is that Kansas has one of the most liberal homestead laws in the country. Homestead laws are those laws that generally prohibit a forced sale of a person's homestead by a creditor to pay most debts, which might be an additional reason for some to relocate to Kansas.
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