TheREALTYgram Blogger

Capitol Hill Ponders Katrina Relief Legislation;'Shall We Throw Them A Lifeline Or Let Them Drown?'

Mississippi and Louisiana lawmakers in Congress are drafting Katrina relief legislation that would offer hurricane victims additional protection when new bankruptcy laws go into effect next month.

Katrina victims recently fell prey to mighty credit card champion and Judiciary chairman James Sensenbrenner (R-WI), who refused to hold hearings to address relief for Katrina victims. Thirty-one Congressional Democrats had voiced support for waiving the more onerous provisions of the new law for Katrina victims "to insure that we do not compound a natural disaster with a man made financial disaster."

Under the new bankruptcy legislation, homeowners' exemptions from liability are much more limited than in the past. As previously reported, many homeowners who have refinanced their homes will be shocked to find that under the new bankruptcy act, they are liable for the full value of their home if it is destroyed.

The bankruptcy "reform" law restricts home equity protection to $125,000, if the buyer bought the house within four years of filing for bankruptcy.

The measure Sensenbrenner blocked would "prevent new bankruptcy provisions from having adverse and unintended consequences for the hundreds of thousands now facing financial catastrophe by providing needed flexibility for victims of natural disasters in bankruptcy proceedings," Reps. Sheila Jackson Lee (D-TX), John Conyers Jr. (D-MI), Mel Watt (D-NC), and Jerrold Nadler (D-NY) said in a joint statement.

Blogger Spotlight: The LoftNinja Is ProofThat There Really Is Hope For This Industry

I'm still trying to wrap my brain around the newest real estate alphabet soup mix (ILD) that has the drawers of the DOJ in such a knot, and the issues and controversies of the industry just seem to grow without an end in sight. I have renewed hope in the real estate industry these days. There is a fountain of good energy and goodwill that emanates from the members of the Real Estate Blog Squad. Many (or most) of us have never met. As I meet the bloggers online and on the telephone I am increasingly encouraged that good sense will prevail in this industry. A recent in-person visit with the LoftNinja at an art show in Lower Manhattan prompted me to give Optimism the head place at my table.

LoftNinja designed the REBS poster. His innovative fauxtography speaks to his philosophy:

"You cannot separate an organism from its environment. This is an attempt to bring mine-as it (and I) change- to you."

He blends art with real estate advertising and he is developing a new blog aggregator for the REBS (watch for more news on this soon). He is articulate. He is a real estate agent, an anthropologist, and an accomplished fauxtographer. I am intrigued as he talks about the gentrification of Brooklyn. I am encouraged when I hear him reflect about industry ethics. I am hopeful when I consider that this is a young man to whom the industry can look  for leadership in the future.

State Leaders Tell Congress: Say 'No' To BillThat Would Create Financial Lion's Den

Leaders from states with strong predatory mortgage lending laws joined the Center for Responsible Lending to send a clear message to Congress: Any federal bill must not roll back state laws that protect citizens from predatory mortgage lenders. A Ney-Kanjorski bill pending in Congress and supported by much of the lending industry would gut existing state laws. Another bill, sponsored by Reps. Miller and Watt of North Carolina and Barney Frank of Massachusetts, is supported by consumers and civil rights groups, and would let states keep strong laws and protect their consumers. Click here for a side-by-side comparison.

The National Assn. of REALTORS^® joined CRL to design a Shopping for a Mortgage? Do Your Homework First. NAR policy wonks opine: "The Watt-Miller-Frank bill (H.R. 1182) would make the Home Ownership and Equity Protection Act stronger and does not preempt state law. The sponsors are all Democrats, which makes House action unlikely." We're hoping that NAR will send some of its talented lobbyists to round up some Republicans to co-sponsor this bill and make this a bipartisan effort for financial security.

New Mexico Chief Deputy Attorney General Mr. Bluestone of New Mexico said:

"Two years ago, New Mexico passed a progressive Home Loan Protection Act in response to an alarming rise in abusive mortgage lending practices and home foreclosures. Too many homeowners were losing home equity because dishonest lenders rolled points and fees into mortgage loans and did so repeatedly through abusive refinances. New Mexico’s new law stops these abuses, but now Congress proposes in the Ney-Kanjorski bill to usurp our state’s ability to protect our homeowners. That bill would gut our new effective law, install in its place a weak federal standard and prevent us from adequately protecting our residents from lending abuses."

Massachusetts Rep. John F. Quinn warned:

"The passage of the Ney-Kanjorski bill would do irreparable damage to the protections afforded to consumers under the newly enacted anti-predatory lending law in Massachusetts. This bill is bad public policy and would weaken the ability of the states to protect consumers from unscrupulous lenders."

New Jersey Banking Director H. Robert Tillman said New Jersey’s law both protected consumers and preserved the marketplace for sub-prime mortgages, where people with imperfect credit borrow and where most predatory lenders operate:

"Our well-balanced law significantly reduces predatory lending…It appears that our state banks and licensed lenders have prepared for the new law and have helped create a more competitive market," said Executive Vice President Debbie Goldstein of the Center for Responsible Lending, a nonprofit that combats predatory lenders. "Rather than preserve and strengthen state and federal protections for homeowners, the Ney-Kanjorski bill wipes out state anti-predatory lending laws proven effective at preventing abusive practices and significantly weakens some protections available under the federal law today. This is a bad deal for consumers, who would be the real losers here."

North Carolina Reps. Brad Miller and Mel Watt and the ranking member on the House Financial Services Committee, Barney Frank (D-MA), have introduced a bill that prohibits abusive lending practices and ensures that everybody who can afford a home loan will get one. The Prohibit Predatory Lending Act of 2005 (H.R. 1182) is based on the  North Carolina’s predatory lending statute, widely considered the model for preventing abusive lending while preserving access to credit. Miller said,

"This bill protects vulnerable consumers without cutting off credit for lower income borrowers. It’s time that all American consumers have the protection that North Carolina consumers now have."

TAKE ACTION NOW!

The Stress Doctor Counsels SurvivorsAnd Has Advice For The Rest Of Us

  The recent tragedy in the Gulf Coast Area brings back memories of the December 26th Tsunami that claimed nearly 250 thousand people. Hurricane Katrina will be considered the US Tsunami to recent date, with the lose of life climbing weekly as more bodies appear as the flood waters recede for the next phase of the relief and emotional recovery stage of this horrible disaster. My Foundation’s Relief and Recovery Effort that took me to Ground Zero and then Asian torn Tsunami area is now geared-up to deploy into the Gulf Coast region to train and counsel many who will be in a state of survival for months to come.

Tips on how to help yourselves and those in harm’s way during this crisis:

• Monitor media over exposure that can emotionally place you along side the victims and their tragedy to become your own.
• Monitor TV exposure to young children to protect them from Post Traumatic Stress Disorder.
• Understand the common symptoms of Post Traumatic Stress Disorder that include:
  • Emotional leakage (crying often about the tragedy) or numbness;
  • Nightmares and daytime preoccupation with the tragedy;
  • Sleeping difficulties/Insomnia;
  • Emotional stress creating physical fatigue.
• Get involved with helping out even if you are across the country by contributing time, effort, energy and/or monies, which we would all appreciate in the reverse situation.

Remember stress and disaster is not just a threat, but a challenge if we respond to it with a plan of action and with an attitude of gratitude. The Terry Lyles Foundation Relief and Recovery effort will directly touch those in the Gulf Coast area. --Dr. Terry Lyles

HUD Opens Doors For Katrina VictimsIn TX, OK, KY, TN, and GA

The following news has just been announced by the U.S. Dept. of Housing and Urban Development:

"Attention: In response to the critical need for housing for those displaced by Hurricane Katrina, the U.S. Department of Housing and Urban Development has removed all HUD-owned REO properties from the marketplace in Texas, Oklahoma, Kentucky, Tennessee and Georgia. These properties are unavailable for sale until HUD approves their re-listing in the market. Please refer to this web-site for additional information which will be posted as it becomes available. Thank you for your patience as we assist Americans displaced by Hurricane Katrina."

Thanks to REALTOR^® Julie Pauly of East Dallas, TX, for the info.

UPDATE Sept. 6, 2005: Additional HUD Resources

Real Estate Agents Have No Homes;Need Licensing, Shelter, New Market Areas

What does a real estate agent do when his/her own home is washed away, and all of the real estate in town is gone? RealTalk listserv contributor John Gillespie of South Carolina has a great idea:

"I am broker of a small agency in SC. I NEED a good producer to work full time 70/30 split. I can provide housing and a job for up to FOUR maybe five Realtors and their families.. South Carolina does not require the full training course to an active licensee. There is a test on the State laws, 20 questions I believe. These agents would help me out as much as I would be helping them. If I can help......"

Las Vegas broker Ronni Land is on the same track:

"If it's a Realtor, I'll put him or her to work while they are geting  licensed in NV!!! I've got plenty of leads for them, but Nevada does not  have reciprocity regarding licensing so they will need to do that. It  takes  about six weeks for the course and then another  4-6 weeks to actually get the license.

"The house is a single story, 3 BR, 2BA (done as 2BR+D but we can easily  add  a bed) with a fully walled in yard just perfect for dogs.  It is walking distance to all schools, so if a child is involved, that  will  make it easier. Our school semester just started this week."

I urge State Real Estate Commissions and licensing agencies in all states to conduct an immediate review of licensing law and reciprocity with the affected states. I also recommend an immediate, stepped up effort by real estate educators to meet the needs of refugee licensees who require credentials in other states.

Local associations may want to consider an "Adopt a REALTOR" program in their own market areas that would mirror the efforts of brokers Gillespie and Land.

New Orleans REALTOR® Marshals Web AssetsLaunches New Blog, Dives Into Katrina Relief Effort

As real estate professionals across North America rally to raise funds and support Katrina relief efforts there is a single name emerging from the crowd as a shining symbol of charity and a source of pride and inspiration. Vikki Morvant is a New Orleans  REALTOR^®  (Keller Williams) who lost her office in Mandeville, LA,  to the ravages of the hurricane. Some 15,000 RealTalk listserv subscribers have followed her personal escape to her son's home in Houston and the stories of her return visits to help displaced flood survivors.

In a normal work week Vikki would be driving with other agents on "office caravan" to preview new listings. Now she's behind the wheel directing a "refugee caravan" and personally escorting people out of the area to places they can call "home" until they are able to return. She's organizing truckloads of water and aid. She removed the password protection of her interactive message board  to provide an online resource for flood victims and their families. And now she has a blog, Mandeville Responds, that offers a chronicle of her journey and wonderful links and resources.

She implores local Louisiana residents:  "Invite people to live with you when you return."

Vikki had help with the blog behind the scenes from InternetCrusader John Reilly and REALTOR^® Ann Cummings (Portsmouth, NH), a fellow RealTalker. (Note: IC publishes the Katrina Blog.)

The only thing missing in Vikki's blog is a link to her own web site. In a real estate blog, that's usually the link that's right on top. Guess she has other things on her mind.

++++++++++++++++++++++++++++++++++++++++++

UPDATE 3:55 PM   The following is excerpted from a RealTalk post this afternoon from Orlando REALTOR^® Paula Bean:

Musings of Vikki Morvant

On Friday 9-2-2005 an agent sent me this email from San Diego:

"Hi Vikki,   I'm not sure if you remember me, but a couple of years of ago we shared a few kind words together in the Keller Williams Office when I was fortunate enough to  have Southshore clients looking in your neighborhood. Let me say, what a thoughtful idea of creating a forum for sharing information. Having said that, I am stuck  in San Diego, trying to get a flight home to get  information about my elderly father on the Northshore. His name is Dr. S--- L--- and he resides on 7243  XXXXXX and last I spoke to him he was "riding the  hurricane out." He's in good health but nonetheless 76  years old.

"I'm pulling my hair out, trying to filter out trivial sensational news from real information. Where is the best source for me to reach word of my  father's condition? "

On Saturday, 9-3-05, I made it into this man's subdivision. His father is ok. He has been living in the house without air conditioning or running water  for 5 days. He was saving his gasoline for Monday, when the officials are allowing people to enter  Jefferson Parish. He is going looking for his other son, last heard on the Westbank. I begged him not to  go. If he runs out of gas, crossong the city of New  Orleans, it would be dangerous.

I tried calling his son for 7 hours. Finally when we drove back to sleep in Denha, Springs, our host, Mimi  Hagan (the administrator of Baton Rouge KW) got on her AOL IM and reached a friend in Seattle, who was then able to phone the agent. Like a 911 operator she translated between his words and my typing. He knows his father is safe. He is desperately trying to get  here.

The other good news for me was that my house is fixable. My son, daughter and a friend spent the day with a chainsaw, clearing huge pine trees. We go back today.

And the best news... I get to see my husband today!! I gotta run...I don't want to be late for THOSE HUGS  AND KISSES!!!!!! --Vikki Morvant

UPDATE SEPT. 6, 2005: REALTOR^® Magazine Online story

As real estate professionals across North America rally to raise funds and support Katrina relief efforts there is a single name emerging from the crowd as a shining symbol of charity and a source of pride and inspiration. Vikki Morvant is a New Orleans  REALTOR^®  (Keller Williams) who lost her office in Mandeville, LA,  to the ravages of the hurricane. Some 15,000 RealTalk listserv subscribers have followed her personal escape to her son's home in Houston and the stories of her return visits to help displaced flood survivors.

In a normal work week Vikki would be driving with other agents on "office caravan" to preview new listings. Now she's behind the wheel directing a "refugee caravan" and personally escorting people out of the area to places they can call "home" until they are able to return. She's organizing truckloads of water and aid. She removed the password protection of her interactive message board  to provide an online resource for flood victims and their families. And now she has a blog, Mandeville Responds, that offers a chronicle of her journey and wonderful links and resources.

She implores local Louisiana residents:  "Invite people to live with you when you return."

Vikki had help with the blog behind the scenes from InternetCrusader John Reilly and REALTOR^® Ann Cummings (Portsmouth, NH), a fellow RealTalker. (Note: IC publishes the Katrina Blog.)

The only thing missing in Vikki's blog is a link to her own web site. In a real estate blog, that's usually the link that's right on top. Guess she has other things on her mind.

++++++++++++++++++++++++++++++++++++++++++

UPDATE 3:55 PM   The following is excerpted from a RealTalk post this afternoon from Orlando REALTOR^® Paula Bean:

Musings of Vikki Morvant

On Friday 9-2-2005 an agent sent me this email from San Diego:

"Hi Vikki,   I'm not sure if you remember me, but a couple of years of ago we shared a few kind words together in the Keller Williams Office when I was fortunate enough to  have Southshore clients looking in your neighborhood. Let me say, what a thoughtful idea of creating a forum for sharing information. Having said that, I am stuck  in San Diego, trying to get a flight home to get  information about my elderly father on the Northshore. His name is Dr. S--- L--- and he resides on 7243  XXXXXX and last I spoke to him he was "riding the  hurricane out." He's in good health but nonetheless 76  years old.

"I'm pulling my hair out, trying to filter out trivial sensational news from real information. Where is the best source for me to reach word of my  father's condition? "

On Saturday, 9-3-05, I made it into this man's subdivision. His father is ok. He has been living in the house without air conditioning or running water  for 5 days. He was saving his gasoline for Monday, when the officials are allowing people to enter  Jefferson Parish. He is going looking for his other son, last heard on the Westbank. I begged him not to  go. If he runs out of gas, crossong the city of New  Orleans, it would be dangerous.

I tried calling his son for 7 hours. Finally when we drove back to sleep in Denha, Springs, our host, Mimi  Hagan (the administrator of Baton Rouge KW) got on her AOL IM and reached a friend in Seattle, who was then able to phone the agent. Like a 911 operator she translated between his words and my typing. He knows his father is safe. He is desperately trying to get  here.

The other good news for me was that my house is fixable. My son, daughter and a friend spent the day with a chainsaw, clearing huge pine trees. We go back today.

And the best news... I get to see my husband today!! I gotta run...I don't want to be late for THOSE HUGS  AND KISSES!!!!!! --Vikki Morvant

UPDATE SEPT. 6, 2005: REALTOR^® Magazine Online story

NAR Publishes Slick New 'Real Estate Insights'Chock Full Of Economic Numbers And Stats

Real Estate Insights is the title of a new monthly electronic newsletter from The National Assn. of REALTORS^® that will satisfy the pecuniary curiosities of John Q. Public and serious economic eggheads. There are links to economic indicators and lots of statistical information--existing home sales, housing affordability, pending home sales, and metropolitan area home prices.

NAR Contributes Over $1 Million To Katrina Relief Efforts

The National Assn. of REALTORS^® got right up to the plate with over $1 million in aid to Katrina victims. Way to go, NAR! That's the kind of stuff that makes us proud to say "We're REALTORS^®"