Paige Rausch

The nation's largest mortgage lender, recently bought by Bank of America, settled "predatory lending" lawsuits with 11 states and will give back nearly $9-billion to Countrywide customers. Florida's lawsuit alleged Countrywide put people in mortgages they couldn't afford and misled them about rates and penalties.

In a deal meant to stave off home foreclosures, as many as 57,000 Florida homeowners could get $1-billion in relief from Countrywide Financial. The Countrywide effort is the most comprehensive, mandatory loan workout program since the mortgage crisis began last year.

The settlement came as Bank of America reported its third-quarter results Monday, earlier than planned, revealing a 68 percent drop in profit. It plans to boost capital by selling stock and halving its dividend.

How's this for justice?

October 6, 2008
Media Contact: Sandi Copes
Phone: (850) 245-0150

TALLAHASSEE, FL – Attorney General Bill McCollum today announced that Florida and several other states have reached a multimillion dollar agreement in principle with Countrywide, a newly-acquired subsidiary of Bank of America. The agreement includes a $150 million foreclosure relief payment program and loan modifications for thousands of homeowners, including more than 57,000 Florida homeowners with qualifying Countrywide mortgages.

“This agreement will bring much-needed relief to countless homeowners, including thousands in Florida,” said Attorney General McCollum. “I appreciate Bank of America’s commitment to rectify the situations created by Countrywide’s loan practices.”

The agreement, which is still being finalized by the participating states, could provide nearly $1 billion in total relief to Florida homeowners alone and up to $8 billion nationwide, including the realized relief from modified loans. Under the terms of the agreement, the following relief initiatives will be offered:

Home Retention Efforts

Countrywide will launch a new Loan Modification Program for qualifying owner-occupied subprime home loans and pay option adjustable rate mortgages (ARMs) to move borrowers into fixed-rate, fully amortizing loans that they can afford. Additionally, Countrywide will suspend foreclosures on all loans that meet the eligibility criteria while determining whether or not the borrower qualifies for a loan modification, and will waive all loan modification fees associated with a modification under the new program. Approximately 52,000 Florida borrowers are anticipated to receive a loan modification under this plan.

Foreclosure Relief

Countrywide will make cash payments to eligible individual borrowers who have lost their homes to foreclosure after experiencing an early payment default or after an interest rate reset. Early payment default is an indicator that the loan was not underwritten properly and the homeowner could not afford the loan from the beginning, and default after reset is an indicator that a loan was not written to the fully-indexed, fully amortizing rate. Approximately $150 million will be available nationwide with more than $20 million earmarked for Florida borrowers.

Countrywide will also make approximately $60 million in cash payments nationwide to any borrowers in foreclosure who agree to voluntarily leave their home at the time of foreclosure sale. Florida borrowers in foreclosure could receive up to $4 million under the relocation assistance program.

Other Relief

Countrywide will waive late fees for the delinquency that led to borrowers receiving loan modifications under the new program. Approximately $79 million in late fees will be waived nationwide, and $9.7 million will be waived in Florida. Countrywide will also waive prepayment penalties on subprime and pay option ARM loans owned by Countrywide. Approximately $56 million in prepayment penalties will be waived nationwide, and $8 million will be waived in Florida.

Once finalized, the agreement will resolve the allegations against the Bank of America-owned subsidiary in a lawsuit filed by Attorney General McCollum prior to Countrywide’s acquisition. The lawsuit asserted Countrywide put borrowers into mortgages they couldn't afford or loans with rates and penalties that were misleading. The company’s deceptive marketing practices were purportedly designed to sell costly loans while hiding or misrepresenting the terms and dangers. Bank of America acquired the company the day after the lawsuit was filed and has worked with the Attorneys General to resolve the allegations against its subsidiary.

In addition to Florida, participating states currently include Arizona, California, Connecticut, Illinois, Iowa, Michigan, Ohio, Texas, and Washington. Additional states may join the agreement in the coming days. Consumers can call Countrywide toll-free at 1-800-669-6607 for additional information.

Name: Paige Rausch

Email: Contact Paige Rausch

Office Phone:(239) 443-2500

Cell Phone:(239) 691-4321

Personally, I liked what Sheriff Scott said about there being 3 types of people:

1. People who make things happen

2. People who watch things happen

3. People who wonder what happened

It's the part after that has people talking:

"On November 4th, Let's leave Barack Hussein Obama wondering what happened."

A federal investigation is being opened into the actions and comments of Lee County Sheriff Mike Scott at a rally for Gov. Sarah Palin in Estero, FL on Monday.

Erica S. Hamrick, senior attorney at the U.S. Office of Special Counsel, wrote in to complainant Carl Spackler that due to his complaint, her office will be investigating under the Hatch Act, which governs political activities of certain elected officials.

The complainant stated the sheriff violated that act because the sheriff’s office receives federal money, engaged in political activity while on duty, engaged in political activity while in uniform, wore political buttons while on duty and used political influence or authority to interfere with an election.

Link to the Hatch Act:

http://www.osc.gov/hatchact.htm

After watching the video, post a comment if you think the comments are worth a Federal Investigation?

To temporarily silence the music while viewing the video there is a "off" button on the top right hand corner of the "juke box".

2008 State, MSA's and County forecast page from Fishkind and Associates

Econocast is Fishkind & Associate's forecast of economic activity for the State of Florida, its MSA's and Counties. The information is developed through a series of econometric forecast models functioning at the county level. Multi-county Metropolitan Statistical Area forecasts consist of the sum of county level forecasts within that area.

Data sources include:

• Census Bureau building permits and housing start ratios
  
• Florida Department of Labor and Employment Security ES-202 and CES reports
  
• The University of Florida Population Studies
  
• Residential electric customer meter data
  
• National economic data and conditions
  

Econocast is available in a PDF file format. You must have the free Adobe Acrobat Reader installed on your computer to view PDF files.

Econocast information may be used when sourced to Fishkind & Associates, Inc.

Florida Summary:

Population Growth

• 165,000 for 2008

• 66,000 for 1976

Employment

• -82,000 for 2008

• -55,000 for 1976

Housing Starts

• 47,000 for 2008

• 33,000 for 1976

The numbers suggest that Florida is in the Worst Recession since 1976, do you agree with Fishkind and Associates?

It's the first round of capital for a start-up business. Seed money usually takes the structure of a loan or an investment in preferred stock or convertible bonds, although sometimes it is common stock. Seed money provides startup companies with the capital required for their initial development and growth. Angel investors and early-stage venture capital funds often provide seed money.

There are about 258,200 angel investors in the U.S., and in 2007 they invested $26 billion in 57,120 deals, according to data from the Center for Venture Research at the University of New Hampshire. Angel investors and early-stage venture capital funds often provide seed money, and in Southwest Florida businesses are finding divine intervention is on the way, thanks to a venture-capital project by the Economic Development Council of Collier County, local investors working on a “regional angel fund” and the state of Florida. The brainchild of EDC leaders and Tim Cartwright, president of Gulf Coast Venture Forum, regional angels could provide new businesses with startup money matched dollar-for-dollar by the Florida Opportunity Fund, a program that state lawmakers approved last spring. Regional angels would contribute capital into a pool, screen and select potential recipients, and then go to the state in search of its matching dollars. The Florida Opportunity Fund has about $30 million in its first year for organizational costs as well as chosen projects. The past few months were spent organizing, selecting an oversight committee and preparing to accept and review applications for the funding.

The targeted clusters were chosen after extensive research into the existing market by Gary Jackson,
director of Florida Gulf Coast University’s Regional Economic Research Institute.

They are:
• Computer software and services
• Distribution, or wholesale companies that inventory,store and redistribute goods for sale to other stores and retail outlets in the region
• Health and life sciences, including biotechnology,biomedical and pharmaceutical research and manufacturing,
and medical devices.

Name: Paige Rausch

Email: Contact Paige Rausch

Office Phone:(239) 443-2500

Cell Phone:(239) 691-4321

Fax: (239) 425-8653

Gulf Gateway Realty Inc.

1326 S.E. 47th St. Cape Coral, FL 33904
Tel: 239.425.2500 Fax: 239.425.8653

If you or anyone you know is in this situation ask them to support the County Commission in their efforts to offer aide to those facing foreclosure. Please either write or show up at the September 23, 2008 County Meeting, and let those in office know your thoughts on the matter before they vote.

Below is a brief summary, and link to the back up documents:

ACTION REQUESTED/PURPOSE:
1) Adopt by resolutions proposed amendments for the foreclosure prevention strategies in the 2008/09 - 2010/11 and 2005/06 - 2007/08 plans for the SHIP program and approve their transmittal to the Florida Housing Finance Corporation. The amendments propose increasing from $100,000 to $1 million the total funding available for foreclosure prevention and from $7,000 to $8,000 the maximum assistance per household facing an extraordinary but temporary hardship, and 2) Authorize the County Manager or designee to make minor revisions that may be required for final state approval. (#20081104-COMMUNITY DEVELOPMENT)

FUNDING SOURCE:
No funds requested

WHAT ACTION ACCOMPLISHES:
Expansion of the foreclosure prevention strategy to meet current economic conditions.

MANAGEMENT RECOMMENDATION:
Approve.

Name: Paige Rausch

Email: Contact Paige Rausch

Office Phone:(239) 443-2500

Cell Phone:(239) 691-4321

Fax: (239) 425-8653

Gulf Gateway Realty Inc.

1326 S.E. 47th St. Cape Coral, FL 33904
Tel: 239.425.2500 Fax: 239.425.8653