Real Estate

HUD’s New Lawsuit Covers Familiar Ground

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In late May, the real estate world was shocked when HUD filed a lawsuit in the U.S. District Court for the Central District of California against several major real estate firms and a natural hazard disclosure reporting company that alleged violations of RESPA in connection with their former joint venture. Business.

Although at the time, the industry speculated that this lawsuit marked new ground for HUD to take companies to court for RESPA violations, in fact, HUD has done so once before. And, curiously, the problems in that first case are strikingly similar to the core problems in the new case.

On May 24, HUD sued Property ID of Los Angeles for allegedly making improper payments based on referring consumers to Realogy Corp. (formerly Cendant Corp.); NRT / Coldwell Banker Residential Brokerage Corp .; Mason-McDuffie Real Estate (doing business as Prudential California Realty); and Pickford Realty Ltd. (doing business as Prudential California Realty).

In a separate lawsuit filed against HUD, Property ID has argued that its actions were not within the purview of RESPA because “natural hazard disclosure reports are not settlement services and are not part of the escrow. Natural hazard reports they are not listed as one of the service agreements in RESPA’s own statute. The statute that requires natural hazard disclosure reports requires them for reasons unrelated to escrow. To be under RESPA’s jurisdiction, product sold by Property ID would have to be a settlement service. “

However, HUD has taken the opposite view, stating in its lawsuit that “sellers, buyers, or their agents purchase and provide hazard disclosure reports as part of the purchase and settlement of real estate involving mortgage-related loans. federal government. of real estate is pending, whether the report is purchased before or during an actual or potential deal for the sale of real estate, “adding that” the vast majority of reports are paid out of escrow in the time of settlement “.

‘Obsolete and ambiguous’

All of the real estate brokers in the lawsuit agree with Property ID that natural hazard disclosure reports are not a settlement service under RESPA.

Mark Panus, senior vice president of corporate communications for Realogy Corp. (which includes NRT), told Real Law Central, “Like most in this industry, we have operated under RESPA, outdated and ambiguous as it is, for many years. We dispute the allegations. factual and legal in the complaint, including characterizing natural hazard disclosure reports as a settlement service under RESPA. “

Likewise, Eliza Walsh, a spokesperson for Mason-McDuffie Real Estate Inc. (dba Prudential California Realty in Northern California), said: “The position of the company, based on expert legal advisers, is that the production of disclosure reports of Natural hazards are not included in the definition of ‘settlement services’ as defined by federal statute. “

And Steve Rodgers, President and CEO of Prudential California Realty and Pickford Realty, said, “We are confident that our internal policies and procedures, as well as all of our business transactions, are fully compliant with [RESPA]. “

Ironically, HUD’s first lawsuit for alleged RESPA violations also sought clarification on what constitutes a settlement service, in the 1984 case of US v. Graham Mortgage.

This case turned out to be pivotal in RESPA’s history, as the Sixth Circuit Court’s decision in this case prompted HUD to amend the statute in 1992.

United States v. Graham Mortgage

The story of US v. Graham Mortgage began in 1983, when HUD filed a six-count indictment in the Eastern District of Michigan charging four defendants with the misdemeanor of giving and accepting bribes in violation of § 8 (a) of RESPA, and with conspiracy to violate that provision.

The defendants included Graham Mortgage Corp. (GMC); Richard E. Chapin, executive vice president and director of GMC; Thomas P. Heinz, GMC Vice President and Branch Manager; and Manford Colbert, president of Rose Hill Realty, who was involved in both traditional real estate brokerage and home buying, rehabbing and reselling in the Detroit area.

From September 1975 to May 1979, GMC provided financing for the purchase, rehabilitation and resale of residences in the Detroit area by Rose Hill. For every loan she received, Rose Hill agreed to refer two home loan applicants from her regular brokerage business to GMC, in addition to recommending the buyer of the rehabbed home. In turn, GMC, by making mortgage loans to the Federal Housing Administration (FHA) or the Veterans Administration (VA) to buyers of the rehabilitated residences sold by Rose Hill, charged Rose Hill less points than it charged to other sellers.

To recoup lost revenue from reduction of points charged to Rose Hill, GMC increased the points charged to home sellers referred by Rose Hill and financed by FHA or VA loans.

Prior to trial, the defendants filed a motion to dismiss the indictment on the grounds that the activity alleged in the indictment did not involve the referral of a business “incident or part of a real estate settlement service” and consequently , did not violate § 8 (a) of RESPA.

The district court rejected the motion. Treating the question as a first impression, the court held that statutory language, viewed in light of Congress’s goal of eliminating kickbacks and referral fees that improperly inflated the cost of settlement services and statute interpretation in Regulations promulgated by HUD, prohibited the alleged activity.

The defendants later pleaded guilty to the conspiracy charge in exchange for the substantive charges being dismissed. Following the entry of convictions, the defendants filed a motion to arrest sentencing. In an unpublished order, the court upheld its decision that the granting of a home loan was a settlement service and denied the motion. The defendants then appealed to the Sixth Circuit Court.

Sixth Circuit is not convinced

In ruling on the case, the Sixth Circuit noted that “the critical textual question is whether this definition of ‘settlement services’, which does not expressly include within its scope the granting of a mortgage loan, can properly be construed implicitly.”

HUD made a simple argument in support of its position that the language of RESPA § 3 (3) provides for treating the granting of a mortgage loan as a settlement service. The government argued that the definition of “settlement services”, on its own terms, is not intended to contain an exhaustive list of settlement services, but rather denotes “any service provided in connection with a real estate settlement.”

The government concluded that because a mortgage loan is the essential service for a real estate agreement, it must be ancillary to the agreement and within the scope of the definition in § 3 (3) of the RESPA.

But the Sixth Circuit concluded that “neither the plain language of the relevant section nor the structure of the RESPA offers an unequivocal reading that requires the imposition of criminal liability on the conduct alleged in the indictment.” Consequently, it went down in the legislative history of the statute.

HUD held that even if the language of the relevant statutes was ambiguous, RESPA’s legislative history supported the government’s interpretation of the statutes.

Legislative history of RESPA

In 1974, a bill (S. 3164) was introduced in the United States Senate to regulate certain credit practices and settlement procedures in mortgage transactions related to the federal government. The definition of “settlement services” in the bill, as introduced, was substantially identical to that promulgated by § 3 (3) of the RESPA.

Following Senate approval, the House of Representatives, by initially passing S. 3164, amended the bill by removing all Senate provisions and replacing the provisions of HR 9989, which was a House bill generally similar to S. 3164. A However, the difference was in the language of the definition of “settlement services”. The Chamber imposed a narrower definition that did not include the realization of a mortgage loan within its scope.

But the Senate refused to agree to the House amendments and eventually adopted a broader definition of “settlement services” than the one recommended by the House. HUD argued that this decision to favor a broader definition of “settlement services” showed that Congress intended to include the granting of a home loan.

But the Sixth Circuit said, “In deciding on the broader language of the Senate version, we do not believe that Congress intended to include real estate financing within the scope of settlement services for RESPA purposes,” finding that “legislative history lacks the clarity and force to compel the conclusion that Congress intended to treat the granting of a mortgage loan as a settlement service when it enacted RESPA.”

Therefore, the circuit court reversed the earlier ruling, concluding: “In light of our assertions, RESPA’s language is ambiguous regarding the question of whether the granting of a mortgage loan is a settlement service and that the legislative history of the statute does not address any resolution of that problem, ‘the leniency rule orders judgment for the [appellants]. Consequently, the conviction sentences are set aside and the case is referred to the district court for final sentences. “

This decision was a blow to HUD, which was in total disagreement with the Sixth Circuit’s position, and the decision forced the department to issue revisions to RESPA in 1992. Congress responded by amending RESPA to remove any doubt that, for RESPA purposes , a conciliation service includes the origination and realization of a mortgage loan. At the same time, Congress also made the RESPA apply specifically to second mortgages and refinances.

Future implications

The Graham Mortgage case differs from the property identification case in a significant way, in that in the first case, HUD attempted to seek criminal penalties for statute violations, while in the new case, HUD is only seeking a permanent injunction and a restitution. profit.

However, the central question remains the same. If the Sixth Circuit Court could find that the original definition of “settlement services” did not clearly apply to the granting of a mortgage loan in 1984, could the California court find that it did not clearly apply to the provision of reports as well? disclosure of natural hazards? , despite the modifications made in 1992?

And if so, will HUD and Congress have to go back to the drawing board to redefine the statute parameters again? Or will the courts this time find HUD’s argument about the statute’s broad scope sufficient?

The National Association of Realtors recently observed that “if the lawsuit is fully resolved and not resolved, businesses should finally have clearer guidance on what constitutes and does not constitute a settlement service.”

Real Law Central He will be watching to see what happens.

Shopping Product Reviews

Composition: The Effective Use of Tension and Release in Ingrid Michaelson "Keep breathing"

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Have you ever been curious about a great way to create tension in your songs, so that you can have a moment of liberation in full swing? Ingrid Michaelson effectively creates one of these moments in her song “Keep Breathing.” We’ll see.

You can watch the song on YouTube, if you want to follow it. The times I refer to below (for example 2:41) refer to the approximate minutes and seconds of the song.

This song begins with two short verses that end in the chorus “Keep Breathing”.

Verses 1 and 2 (minus the refrains) tell us:

Verse 1: The storm is coming but I don’t care if people die, I close my blinds

Verse 2: I want to change the world, instead I sleep I want to believe in more than you and me

So that’s concise and straightforward … It’s this general, nonchalant language that says “I can’t do anything about it. I’m not going to do anything about it.”

But what happens next is interesting. When the second verse ends and it enters the second chorus (“All I know is that I’m breathing …”) we have exactly two minutes left in a song that is less than three and a half minutes long. “Who cares?” you may be wondering. Well, those last two minutes are almost ENTIRE the phrase “All we can do is keep breathing” repeated over and over again. There is a slight variation in the words of the phrase and after the second chorus it lingers a bit on the word “now”, but other than that all we can do is keep breathing to keep our balance. song!

Normally, so much repetition of both the lyrics and the melody means that Ambien won’t be needed tonight … but not here. Here it really works. Let’s see why …

There are two main things that happen after the opening two verses of this song that make the vocal repetition work so well. The first is that what is happening UNDER the voices is changing dramatically. And it’s not just changing, it’s creating tension.

At about 2:07, almost all the instruments have disappeared from the song when she says “All I know is that I’m breathing.” Then each time the phrase is repeated, more instruments begin to appear below the voice. It’s starting to create tension. The drum has a great influence on this. As it hits and gets louder and louder, we are building a really strong tension that begs to be released. This has to break soon, right? And it’s going to lead to something big, right?

So what happens? The tension is broken at 2:41 when the lingering beat of the drum ends and it enters a regular drum beat. At the same time, the vocal harmonies singing “ahhhh” are activated, in the background. The tension has officially eased. So let’s see what the lead vocal is doing at this point, because it MUST be doing something different now … Nope. Still breathing. “Exactly the same as before the tension was released. Yet we still feel the release due to what is happening UNDER the words.

But there is more. There is a second thing that makes the ending of this song work well, which is the way the meaning of the lyrics relates to the music. “Hey?” you ask. Well think about it … what happens when you literally keep breathing with your lungs? Well … repeat. No matter what is happening in the WORLD around you, your BREATH continues to happen. And … whatever is happening in the arrangement of this SONG below the words (drums, guitars, etc.), the LYRICS AND THE MELODY keep repeating and keep happening, over and over again. The same thing they did before in breathing.

When you stop breathing, you are dead. When this song stops repeating itself, it’s over.

So now we can see why almost two minutes of the same lyrics and melody work here. Because there is a whole world changing underneath the lead vocal. And at the same time, the repetition of the lead voice is so strongly linked to the meaning of the words.

THAT IS good writing (and arranging). It is the structure that supports the meaning, achieved in a big way. (You can’t see, but I’m standing and clapping.)

Another interesting thing to note here is that what broke this song (and essentially Ingrid’s career) was its location in the final episode of Grey’s Anatomy season 3. The song ended up fitting perfectly with the emotions of the final scene of that episode. I can’t post links here, but you can do a YouTube search for “Grey’s Anatomy Keep Breathing” to see the scene. It’s the (almost) wedding scene.

Well … it was almost a perfect fit. As Robin Frederick points out in his book, Shortcuts to songwriting for film and television, the song was expanded to fit the scene. As anyone who watches television knows, that’s pretty weird. Songs are usually shortened to fit a scene. Not to mention that what was being expanded here was something that was already much more repetitive than normal, as we learned in the previous paragraphs. But still, the rerun of “All We Can Do Is Keep Breathing” just wasn’t enough for Grey’s Anatomy’s musical supervisors. They expanded it even more! That just goes to show how well it worked. It shows you how well it fits in with the emotion of the scene, which is the main reason a song will be placed on television in the first place. Because actually, a song is put on TV to TELL US what emotions we should be feeling at that moment. And clearly this song nailed it for that final scene.

Oh, and see how they aligned the break in tension in Ingrid’s song that I mentioned earlier, with the actress’s line: “I’m free … damn it” (at 2:34 in the Grey’s Anatomy clip). .. Just before she freaks out and takes off her wedding dress. Yes, that is not a coincidence.

Great song and great TV location. See if you can incorporate this kind of moment into your own music. Done right, it could be a great experience for your listeners.

Sports

Simple Super Bowl Recipes

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The NFL playoffs are in full swing and the Super Bowl is not too far off! The second most important place for the game at any Super Bowl party is, of course, the food. Whether you are organizing or attending, you will need to be prepared to prepare a plate for a crowd. I’d like to share with you some recipes that are sure to please any hungry soccer fan!

Guacamole made simple

This has to be the most important food at any Super Bowl party. It is so easy to do!

Ingredients:

  • 3 ripe avocados, peeled, pitted and mashed
  • 1 tablespoon. lime juice
  • 1 teaspoon sea salt
  • 1/2 cup chopped red or white onion
  • 3 tablespoons chopped fresh cilantro
  • 2 roma (plum) tomatoes, diced
  • 1 garlic clove minced or grated
  • 1 pinch of cayenne pepper (optional)
  • 1 habanero pepper (or jalapeño) seeded, minced

Addresses:

  1. In a medium bowl, combine the avocados, lemon juice, and salt.
  2. Add the onion, cilantro, tomatoes, and garlic.
  3. Add the cayenne pepper and potentially more salt if desired.
  4. Refrigerate for at least 1 hour before serving for more flavor!

Buffalo Chicken Dip

The best dip for parties! It is huge and delicious!

Ingredients:

  • 1 bottle buffalo sauce (I like to use Frank’s red hot buffalo sauce)
  • 3-4 cooked and shredded skinless chicken breasts
  • 16 oz. cream cheese
  • 2 cups jack cheese, grated
  • 1 cup blue cheese or ranch dressing

Addresses:

  1. Rub a saucepan with cooking spray or cooking oil.
  2. In a saucepan, melt the cream cheese over low heat and toss with the salad dressing.
  3. Keep away from heat.
  4. Layer chicken, drizzle 3/4 of the hot sauce over the chicken, then the cream cheese mixture over that.
  5. The next layer is the grated cheese, topped with the remaining hot sauce!
  6. Bake in 375 degree F oven for 25-30 minutes or until bubbly.
  7. Serve with celery sticks, tortilla chips, or you could even make some buffalo chicken tortilla rolls with some lettuce and tomato!

The easiest meatballs ever!

These meatballs are super simple and ready in 30 minutes! Great appetizer, pasta topper, or even sandwich!

Ingredients:

  • 1 pound. ground beef or chicken
  • 1 tablespoon. Chopped onion
  • 1 teaspoon salt and pepper
  • 2 tbsp. chopped fresh cilantro
  • 1 garlic clove, pressed or grated

Addresses:

  1. Preheat the oven to 375 degrees F.
  2. Combine all ingredients in a mixing bowl.
  3. Mix with your hands until well mixed.
  4. Divide the mixture in half. Then in the middle again.
  5. Form equal-sized meatballs and place on a greased baking sheet.
  6. Bake for 30 minutes, flipping halfway.
Tours Travel

Top Ten Tips for the Best Road Trip Ever

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There is nothing more fun than an old fashioned road trip. I love to hit the road and explore our country. Now, I have been a “road traveler” for some time and while I love air travel, I love road trips because this is how you can really experience the country. So it’s time to whip up your favorite tunes and snacks and plan your open road trip adventure with these ten easy road trip tips.

1. Plan your trip. First, you must determine where you are going to go and then plan your trip. Planning doesn’t have to be time consuming, but you do need to know the route you are going to drive and the points of interest along the way that you will want to stop and explore. Half the fun of a road trip is seeing the sites along the way. I like MapQuest my trip and have it as my main plan of attack for my road trip. GPS is very popular these days and I recommend them, but you can’t always rely on them when you hit construction zones or accidents on your trip. This is why it is essential that you have a real map with you of the areas you will be traveling to and that you plan alternative routes if necessary.

2. Make your hotel reservations BEFORE you go. Part of the fun when traveling on the road is stopping where your heart desires, but there is nothing worse than the “no place at the inn” experience on a road trip. You may not realize that there is a “Comic Book Trade Fair”, a “Strawberry Festival” or a convention in town while you are visiting and there are no rooms available. If you don’t make your reservations in advance, not only do you risk having to sleep in your car, but you also can’t manage your road trip budget effectively. If you’re traveling with your family or a group of friends, consider staying in an all-suite hotel or even renting a timeshare – a great option for families traveling by road. Did you know that 90 percent of people who own a timeshare don’t use it on a regular basis? Many great deals can be found at some of the larger hotel chains that offer timeshares and many of them even have a washer and dryer. For my road trip to Scottsdale, I booked a fantastic one-bedroom suite with a kitchenette at a timeshare property directly through the hotel for just $ 100 a night, tax included, at the Sheraton Desert Oasis Villas.

3. Tune up your car before you go or consider renting a car. One week before your road trip, take your car in for tune-up and ask your mechanic to make sure your car fluids are full, the air pressure in your tires is the best for driving on the road, and Any other necessary concerns regarding your vehicles are addressed. If you need to fix something, it’s best to do it somewhere you can trust before your road trip. In addition, it can be more expensive when it is a must-have situation. Also, be sure to pack road safety equipment in case of emergency. For me, that kit includes my American Automobile Association membership card (Premier Membership). If you have a car that is no longer under warranty or has automatic roadside assistance, then an American Automobile Association membership is a must as it will save you a fortune in the unfortunate event that you have a breakdown and have to tow your car. If you are concerned that your current vehicle is not “road trip worthy,” then you may consider renting a vehicle for your road trip. I did this for my trip to Arizona as I found a great deal on a rental car and had peace of mind from my road trip.

4. Pack your own food and plan a picnic. I used to be addicted to stopping at fast food places on a road trip. There was something I found fun about a trip, but I’ve since learned that I prefer to pack my own food for my trip. Not only does it keep me eating healthier, but it also saves me money, especially if you travel with your family. Also, if you plan ahead, you may find that there is a great stop for a scenic picnic on your travels and packing a picnic is much better than flying the drive-through. If you make a stop, either for a picnic or to explore a cool sight along the way.

5. Bring great music or audio books! Music is truly the soundtrack to our lives and every road trip needs a soundtrack. I think of my trip to Seattle every time I hear a Phil Collins song from “No Jacket Required” because that was the main music I was listening to on that trip. I think of the island in the Bahamas harbor and the incredible walks on the Pink Sands beach every time I listen to music by Wilson Phillips. It’s like having a theme song for every vacation, but listening to the music even today will evoke fun memories of wonderful travels. I also love catching up on books that I would like to read, but are somehow easier to listen to. That’s where audio books come in and you can download them to your mp3 player, iPhone, or other PDA device. !

6. Don’t forget to pack a bag to eliminate boredom for children. One thing I have learned from Emily Kaufman’s production of the TV series “The Travel Mom” ​​is that if you are traveling with children, you need to make sure you have enough to entertain them during your road trip. She calls this the bag of boredom. Don’t forget to bring some kid-friendly music your kids like along with fun travel games including magnetic board games. DVD players are an option for really long trips and as long as your child isn’t prone to car sickness. Of course, electronic games will keep your children busy, but I encourage you to limit your time with these toys, especially if you are traveling through large scenic areas. It’s a great opportunity to bond as a family, and the memories of your child’s journey will be lost if lost on a Game Boy.

7. Remember, a road trip is as much about the journey as it is about the destination. One of my all-time favorite road trips was the day my niece, Jessica, and I drove 52 lovely miles on the “Road to Hana” on the island of Maui in Hawaii. I will never forget that the guide said, “Remember, Hana is not a destination, it is a journey.” Hana is about 52 miles from Kahului, however a typical trip to Hana takes at least three hours as the road is very winding with roughly 620 curves over 59 bridges, 46 of which have only one lane. This enchanting road trip is a memorable journey that winds through a lush tropical rain forest that is surrounded by waterfalls, black sand beaches, scenic lava cliffs, fresh fruit stands, and tropical hillsides. Jessica and I stopped at least ten times, including a picnic stop on that black sand beach. We took photos next to waterfalls, delicious fruit stands, and beautiful tropical flower gardens. You should try your road trip the same way we did our Road to Hana – enjoy your road trip as a journey, not a destination.

8. Take advantage of every stop. I like to plan my stops for gas, food, and restrooms so that I can use my time efficiently and not waste time making three stops instead of one. Probably the most important thing is that every time you stop, make sure everyone in the car uses the bathroom (even if they think they don’t have to at the time). This will reduce the stops you make just for that purpose. Also, if you are traveling with kids and you just need to make a stop to go to the bathroom, I recommend stopping at a Starbucks. Parents can have iced coffee or tea, restrooms are clean, and there aren’t many distractions for kids (like toys to buy) that a truck stop or gas station might have. Use the Starbucks store locator on their website to help you plan your stops before you go. Be a “good egg” and make a purchase at Starbucks while you’re there.

9. Avoid trouble. When you are on a road trip, you must be cautious on the streets. Don’t become a target of a crime by leaving your valuables in your car seat (DVD players, Game Boys, etc.) and don’t advertise that you are on a road trip with pillows and blankets everywhere. When you park your car, hide your valuables and road trip comforts. If you’re proactive in keeping your “I’m on a road trip” clues clearly hidden, any thieves or troublemakers should walk past your car. Another smart consideration on the street is to always park where there is good light and foot traffic, and make sure the windows are up and the doors locked every time you get out of the car. You can also buy items like “the Club” if you like that extra insurance for security. Finally, when you drive, watch your speed. Speeding gives you the opportunity to get a ticket and, more importantly, decreases your time to react if the need arises. If you are the driver, you are responsible for your passengers. When you see signs that say, “Speed ​​limits apply by photo,” believe them. Other good driving tips include avoiding rush hour, especially in larger cities, and whenever possible, taking turns driving with other people in the car. You will also want to avoid driving at night if you are unfamiliar with your surroundings.

10. Get a Go to the city card and save up to 55% on attractions and theme parks at your vacation destination. Last year, I flew my 8-year-old niece, Alexis, and my 10-year-old nephew, Tyler, to Los Angeles for their spring break (using Southwest Airlines Reward Miles, of course) and we took a road trip down . to San Diego. That’s when I discovered the Go City Card to save money in San Diego. With this card, I saved hundreds of dollars on tickets to Legoland, the wildlife park, the San Diego Zoo, and other attractions, including a whale watching in the Pacific Ocean, just by purchasing a Go San Diego card.

Instead of paying individually for each local attraction, you pay one price for up to 40 attractions (depending on which city you visit) and can create your own experience, tailoring your activities based on what you like to do, while enjoying tremendous savings. . For example, with the Go Los Angeles Card, you can choose one, two, three, five or seven-day cards at a low price and prepaid to get access to 40 included attractions. This saves up to 55% compared to buying tickets directly at Universal Studios Hollywood, LEGOLAND California, Knott’s Berry Farm, Paramount Studios, Queen Mary and many more attractions. Go to city cards They are available in many cities and vacation destinations in the US, including Los Angeles, Chicago, Boston, Las Vegas, New York, San Diego, San Francisco, Honolulu, Orlando, Miami, Seattle, Blue Ridge, and even Toronto.

Final tips: Don’t forget your cell phone and make sure you have “hands free” when using it while driving. In many states, it is the law, but it is also dangerous. Always use your cell phone “hands-free” when driving. Don’t forget to update the software on your mobile phone before you leave because you don’t want to be charged higher rates for roaming charges. Finally, it is a good idea to email a copy of your itinerary to other family members or friends in case of an emergency; this is especially a good idea for women traveling together. Now, drive safe and have fun!

You can get more details on my website at Best-Travel-Deals-Tips.com.