Connecticut

Every time I read anything to do with mortgage fraud, I feel like I should apologize to the public and anyone having to do with the real estate industry. I have worked very hard over the years to protect my good name and the mortgage industry. This has to stop! All of us in this business need to do everything humanly possible to live and work to a level, above the law and what is right.

Very frankly, when I see anything that looks like fraud, I report it. It doesn’t matter to me if is someone in my business or a borrower. If we don’t do our own policing, it will get done for us and I promise you, get State of Federal regulators more involved, than they already are, is not good for anyone.

FBI: Suspicious Activity Reports Up for Mortgage Fraud

Mortgage fraud caseload rose last year as federal insurers reported more suspicious activity, according to the Federal Bureau of Investigation (FBI).

Source: FBI Financial Crimes Report

The agency reported recently that so-called suspicious activity reports (SARs) ascended from 70,533 in 2010 to 93,508 last year, a shift that reportedly helped FBI investigators land 1,223 indictments and 1,082 convictions for mortgage fraud last year.

The FBI touted big payouts for victims in a report that found $1.38 billion in restitutions, $116.3 million in fines, and seizures worth roughly $15.7 million from last year.

Pending cases for mortgage fraud meanwhile fell from a new high of 3,129 two years ago to 2,691 in 2011, while damages in fraud-related SARs stepped down from $3,238 in 2010 to $3,029 last year.

Personnel rose with demand, as the FBI said that it more than doubled agents on payroll to 325 last year, up from 120 in 2007.

The agency said that pending mortgage fraud cases fell as originations overall reached their lowest level since the early 2000s.

It reported that distressed homeowner fraud had taken over from mortgage origination fraud as the primary source of problems for the agency.

If there is one thing I have repeatedly stated, it is that I dislike wood mulch. It’s not that I think it’s ugly or that it has an unpleasant odor, because it’s not any of those reasons. I hate what people do to their homes when they chose to heap it on repeatedly. Piling layer on top of layer until the wood mulch has come in contact with their wood house. That is unless their house is clad in stucco.

During a recent inspection on a house with a beautifully landscaped yard, I found the wood mulch plowed up against the house. Many of the shrubs were also close or rubbing against the cladding. On any house this is not good combination, but on this particular house it was like the old saying; adding insult to injury.

You see this house was covered in synthetic stucco or EIFS (Exterior Insulation Finishing System). This covering basically consists of rigid foam insulation covered with stucco. For those that don’t know, EIFS has had some problems in the past. To understand the issue, you need to understand how any cladding works.

I believe the biggest misconception about any siding material is that it is water proof. It is not. All cladding leaks. Builders, architects, and building engineers know this and install layers of protection. Building paper is put on over the wood sheathing along with various flashings. Drainage of the wall is also important, so various types of openings are left for any water that finds its way in, to have a way out. Water that stays around will begin to do water does best, break down the wood.

The original EIFS never had any protective drainage system. The insulation was usually adhered right on to the wood sheathing. When water seeped into and between the insulation and wood, it had no where to go. Wood is also absorbent, foam insulation is not. Over time the houses with EIFS were discovered to have serious wood decay and mold issues. The lawsuits soon followed.

One other problem is that insects love EIFS. They tunnel through the foam to find the nice juicy, soft decaying wood. It’s a little slice of insect heaven.

Getting back to the house, the EIFS was installed right to grade level, over the foundation. Taking about rolling out the welcome mat to the bugs. Even if this is the newer type of EIFS with drainage provisions, they would be render useless by installing the siding into the ground. Again adding insult to injury. And don’t forget the wood mulch, like a cherry on top.

I do not know if there are significant problems with the house, but I know my clients are doing their best to find out. When one bad practice is piled onto another, the results are probably not going to be pretty.

James Quarello
Connecticut Home Inspector
Former SNEC-ASHI President
NRSB #8SS0022
JRV Home Inspection Services, LLC

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Working to Be More Efficient and Productive

Being more efficient and productive is something I have always tried to do to make my job easier. It has served me well for years but every now and then no matter how efficient we believe we might be changes need to be made.

I recently met with my web adviser to discuss ways to make my Internet presence more effective. I get a lot of traffic to my web site, which I can see from my back office, but it’s not effective in getting me more activity from potential clients.

One of the suggestions was to change my IDX set-up to one that will allow users more freedom to search for properties yet be able to capture their information.

To this end, we are trying to satisfy the IDX and make it more user friendly. We have a couple of sources in mind and hope to get that resolved quickly, then comes the matter of getting the users of the current system to switch over to the new format. Not all change is always welcomed.

This post is written as an entry in the ActiveRain and DocuSign Eliminating Inefficiences in your Real Estate Business Contest

Working to Be More Efficient and Productive

Village Creek – an Historical and Architectural Wonder in South Norwalk

This past year Village Creek in South Norwalk was named to the Connecticut and National Registries of Historic Places. This exceptional honor happened not just because of the wonderful history surrounding Village Creek, but also because of the beautiful architecture and design of the community.

Village Creek was not only created to ensure racial and religious equality in the midst of the 1950’s in America, but it was created to highlight the new modern Post World War II era in America. Many of the homes are inspired by the contemporary style of Frank Llyod Wright (in fact Edgar Tafel, Wright’s student, was one of the architects).

To live in Village Creek one must join the Village Creek Home Owner’s Association and abide by the rules of their Architectural Control Committee. Owners agree to all sorts of demands. Among the rules that must be followed are that all the homes sit a certain distance from the road, maintain a clean and beautiful façade and landscape, and abide by a certain color scheme. Of course keeping the contemporary style is encouraged.

Many of the homes were built with open spaces and emphasized simple and natural shapes. They have large windows (usually facing the water) and open floor plans. These pictures are of 17 Dock Road – one of the homes that is currently FOR SALE in Village Creek.

Many notable architects helped build Village Creek. Edgar Tafel, Stanley Katz and Percy Ifill are just some of these well-known architects. Percy Ifill’s firm, Ifill Johnson Hanchard, was the largest African American Architectural firms in the Northeast during the 1960’s and 1970’s.

This emphasis on beauty and architecture has clearly inspired some notable artists to reside in Village Creek. Of note are Antonio Frasconi whose art is on display by the Museum of Modern Art in and the Brooklyn Museum in New York City, and Joseph Lasker whose works are part of the Whitney Museum of American Art, Hirshhorn Museum, the Philadelphia Museum of Art and the Smithosonian American Art Museum.

Even if you aren't looking to buy, everyone should take a drive through Village Creek and admire this State and National treasure in South Norwalk!

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