Bernie Madoff’s accountant pleaded guilty today regarding his involvement in the multi-billion dollar Ponzi scheme. Bloomberg has the scoop on the guilty plea from David Friehling, who indicated he failed to execute the required independent investigation into Bernard Madoff Investment Securities.
HousingWire magazine reviews an account of the Madoff debacle, Too Good to be True: the Rise and Fall of Bernie Madoff, in the November issue. Book author Erin Arvedlund indicates Madoff’s auditor operated out of a small office with a minimal staff, including Friehling. The operation’s accountants, Arvedlund said, were not peer-reviewed.
The latest news around the investment scheme comes in the months after the scandal began to unwind in large financial settlements.
Spanish lender... more»
[Update 1: Clarifies NAHB's position]
The International Code Council’s (IRC) recent decision to mandate the installment of fire sprinklers in new homes will go forward, despite protest and opposition from the National Association of Home Builders.
The council is responsible for publishing the International Residential Code, and last year, updated the residential building code to require fire sprinkler systems in all new homes built after January 1, 2011. The code is used as the basis of 48 states’ residential construction standards.
But at a hearing last week, the NAHB petitioned the council to repeal the sprinkler requirement, which was rejected by a committee vote of 7 to 4. Members of the residential building code committee include homebuilders, building and fire safety officials, architects... more»
The civil lawsuit filed against Lend America parent company Ideal Mortgage Bankers takes aim at 40 Federal Housing Administration (FHA)-backed mortgages the Department of Housing and Urban Development (HUD) and the Justice Department claim were fraudulently approved by the New York-based lender.
But HousingWire’s review of the 155-page suit reveals allegations of a pattern of mortgage fraud that’s spanned more than 20 years across a number of mortgage firms.
The mastermind behind the fraud, HUD and the Justice Dept. claim, is Mike Ashley. Ashley is perhaps best known as a team owner and championship-winning racecar driver in the National Hot Rod Association (NHRA). According to the race team’s Web site, Lend America provides financial support to the racing business through a sponsorship... more»
A five-bedroom, seven-bath luxury estate 25 minutes from Manhattan is set to hit the auction block on November 17 — with no minimum bid required.
This set-up, called an “absolute” auction, is meant to set the market value determined by a competitive bidding process. It eliminates minimum bids and reserves, meaning in theory the market could set the value at as little as $1, if only one lucky bidder shows.
But considering the amenities, that scenario is unlikely. The registered bidders, after all, are required to submit a refundable $50,000 cashier’s or certified check prior to the auction — a significant up-front commitment. The expectation, it seems, is for a strong bidder turnout.
The property going to auction November 17 boasts 10,000 square feet of... more»
It sounds like the next federal incentive program — instead of offering taxpayer funds for new car purchases in exchange for that old gas guzzler, this one promises cash for those inefficient, outdated and nonperforming mortgage loans.
There’s only one, small difference: This cash is not from the government. And neither is the program.
American Homeowner Preservation (AHP) is coining a phrase from recent federal stimulus efforts with its “Cash for Clunkers Mortgages” promotion.
Cincinnati-based AHP began as a non-profit in 2007, pairing distressed borrowers with investors. It became a for-profit in 2009 and facilitates residential property short sales and leases the home with the option to sell back to the previous owner of the property.
In the mortgage “Cash for Clunkers”... more»
Investor cash positions are at the lowest level since January 2004 as optimism on the prospect for economic recovery continues to mount, according to a survey of fund managers in a Bank of America Merrill Lynch global research report.
While 65% of respondents believe a global recession is unlikely in the next 12 months, an increase from 47% a month ago, others warn the threat of a double-dip recession still looms.
The Mortgage Bankers Association (MBA) believes economic growth will continue in 2009, but will slow during the first half of 2010. MBA projects unemployment will peak at 10.2% mid-year, before moderating on the heels of sustainable growth during H210.
The fund managers surveyed by BofA Merrill Lynch reported an increase in movement of cash into equities, noting an increase in risk... more»
Sure it would make for a long hike up 60+ stories if the elevator were out of service, but the view makes up for it. Nestled in a luxury condominium atop one of New York’s most famous — perhaps infamous — pieces of commercial real estate, any buyer could easily forget that inconvenience.
And all for a minimum $1,000 per square foot.
The former headquarters of American International Group (AIG: 35.48 -9.67%) — yes, that 70 Pine Street — will soon be renovated into high-end condos. A post at the Wall Street Journal has the details.
The developer, Young Woo, bought the building for $150m, or $105 per square foot, and expects to sell the finished condos for at least $1,000 but as much as $2,000 per square foot.
The building dates back to... more»
A report by the National Consumer Law Center (NCLC) is out this month, warning of the dangers associated with reverse mortgages.
It marks the latest paper on reverse mortgages since the Office of the Comptroller of the Currency (OCC) in late September issued a consumer advisory warning consumers 62 years of age or older of the drawbacks and dangers associated with taking out a reverse mortgage — and outlining the benefits of these “complex loans.”
Authors of the NCLC report, however, gave less space to explaining the benefits of reverse mortgages and devoted more time to data on reverse mortgage volume by leading lenders.
The report, called ‘Subprime Revisited: How the Rise of the Reverse Mortgage Lending Industry Puts Older Homeowners at Risk,’ presents reverse mortgages... more»
Recognize the glass wall of that house listing? Maybe the all-around view of lush foliage and green trees?
Add a classic Ferrari and a young Matthew Broderick to the picture, and you may recognize the property as the famous house featured in “Ferris Bueller’s Day Off.” Yes, the very house where Bueller’s friend, Cameron Frye, accidentally sent his father’s Ferrari crashing through the full-length windows.
The four-bedroom, four-bath house — 370 Beech Street in Highland Park, Ill. — is on the market for sale. All it will cost you is $2.3m, according to the listing at Realtor.com. And that’s without a Ferrari.
It’s been on the market for a few months, and multiple calls to the listing agent were not returned.
Why the house has yet to sell... more»
The Office of the Comptroller of the Currency (OCC) issued a consumer advisory warning consumers 62 years of age or older of the drawbacks and dangers associated with taking out a reverse mortgage — and outlining the benefits of these “complex loans.”
The bulletin comes at a time when getting back to “plain vanilla” financial products continues to be a huge topic of discussion, especially among lawmakers conducting hearings over financial regulatory reform. The House Financial Services Committee this week is hearing testimony regarding the Administration’s proposed reforms, including a consumer financial protection agency that may regulate the types of loans banks can sell to consumers. Committee chairman Barney Frank (D-Mass.) has opposed the “plain... more»
