Rob Alley

It is a shame that all those foreclosed mansions can't be put to better use. Like as temporary schools to relieve overcrowding. Or job centers for the unemployed-there is nothing quite like reporting for outsource training at a 20,000-square-foot Mediterranean manse on the water to boost one's self esteem.

And yet one enterprising Wells Fargo employee seems to have found her own use for a delinquent mansion-as a private party pad.
www.106malibucolony.com The Malibu Colony beach house

According to the Los Angeles Times, Cheronda Guyton, a Wells Fargo senior vice president responsible for foreclosed commercial properties, spent weekends in a $12 million Malibu Colony beach house that was foreclosed by Wells Fargo. The reports say she threw "eye catching" parties, one of which had guests arriving in a yacht.

Citizen groups are up in arms. The Association of Community Organizations for Reform Now said, "This is the ultimate example of dancing on the shattered dreams of the millions of Americans who've lost their homes. They should be ashamed of themselves."

Wells Fargo took over the property in May as part of a private agreement with the prior owner, who lost a fortune to the Bernard Madoff ponzi scheme. Under the terms of the agreement with the owner, the property was withheld from the market for an agreed-upon period of time.

The Times article said Guyton couldn't be reached at her downtown Los Angeles office. The company said in a statement: "We are thoroughly investigating this situation and will take decisive action with respect to any team member who may have violated Wells Fargo's policies. The allegations certainly do not reflect the conduct we expect of our team members. We place the highest value on honesty, trust and integrity to guide our team members in making business decisions each day. We regret the disruption to the neighboring property owners since these allegations were made."

It is tragic, of course, that anyone loses their home. It is even more tragic when bankers (of all people) hold weekend-long parties in homes lost by others. The previous owners must be mortified.

It seems clear that what happened is likely an ethical or moral breach. Still, let's face it--the bank does own the property now. As long as no damage is done to the property, which it says it can't sell yet, well?

But how should real owners of the property feel? And by that I mean U.S. taxpayers, who are now at least part owners of such banks as Citigroup, Bank of America, Wells Fargo , institutions that are holding a number of foreclosed properties, including mansions. Perhaps the banks should hold regular "taxpayer" pool parties at those mansions they now own? That way, the real new owners would at least get a chance to enjoy them.

http://blogs.wsj.com/wealth/2009/09/14/parting-at-foreclosed-mansions-what-do-the-real-owners-say/

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This article was sent using my Viigo.

A 20-year employee of SunTrust Bank branches in the Charlottesville area and Southwestern Virginia exploited a banking loophole to take more than $50,000 from the company, authorities said Monday.

http://www2.dailyprogress.com/cdp/news/local/local_govtpolitics/article/former_bank_executive_admits_to_bilking_50000/45371/#When:04:01:24Z

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Daily Rate Lock Advisory 9/14/2009

Monday's bond market has opened in negative territory despite a flat morning in stocks and no economic data on today's calendar. The stock markets are calm with the Dow down 8 points and the Nasdaq nearly unchanged from Friday's close. The bond market is currently down 8/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.

This week brings us the release of five relevant economic reports that may influence mortgage rates, but none of them are scheduled for release today. A couple of the reports are considered to be highly important to the financial and mortgage markets, meaning that we may see significant changes to rates this week. There is a very good chance of seeing noticeable changes in rates at least one day, if not several days this week.

There are two highly important reports being released early tomorrow morning. The first is the release of August's Retail Sales report. It will giv e us a measurement of consumer spending, which is very important to the markets because consumer spending makes up two-thirds of the U.S. economy. Current forecasts are calling for a 1.9% increase in sales. The sizable jump is expected to come from auto sales that were fueled by the Cash For Clunkers program. Analysts are calling for a 0.4% rise in sales if auto sales are excluded. A larger than expected increase would be considered bad news for bonds and likely lead to an increase in mortgage pricing tomorrow.

The second important piece of data is the release of August's Producer Price Index (PPI), also being posted early tomorrow morning. This report will give us a very important measurement of inflationary pressures at the producer level of the economy. There are two readings that analysts follow in this release. They are the overall index and the core data reading. The core data is the more important of the two because it excludes more volatile food and ene rgy prices. Analysts are currently predicting a 08% increase in the overall index, and a rise of 0.1% in the core data. Stronger than expected readings could fuel inflation concerns in the bond market and lead to an increase in mortgage rates tomorrow morning. Both of the day's reports are considered to be extremely important to the markets and mortgage rates.

Overall, I think we need to label tomorrow as the most important day of the week with the Retail Sales and PPI reports both being posted that day. However, Wednesday's CPI release is also extremely important to the markets, so Wednesday cannot be ignored either. We could see a significant change to rates this week if the major reports vary greatly from forecasts.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 da ys... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com

Homeowners still don't get it. 81% of America thinks their house will not lose value in the next 6 months!!!!!

A new report from Zillow.com finds that 60 percent of homeowners surveyed believe their home lost value in the past twelve months. In reality, 83 percent of all homes lost value. Owners in the South were the most deluded and those in the West, understandably, were the least. And to make matters worse, 81 percent of all homeowners surveyed actually believe their home value will not fall over the next six months; this as foreclosure numbers rise and all of the action in the housing market continues on the lowest of the low end. I have not found one expert (and I know I will as soon as I write this) who claims that home prices have hit bottom. Sales, perhaps, but not prices.

http://www.cnbc.com/id/32461957


Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com

New guidlines from Fannie Mae and Freddie Mac may have impact on how long it will take to close on a house.

How long does it take to close on a home from time of contract to close of escrow? 2 months . . . .4 months. . . . .6 months? Even though there are some new and positive guidelines for Fannie Mae and Freddie Mac, these new requirements will most likely lengthen this time frame. I also see more confusion in the real estate market and finance industry. Let's try and put some light on these new changes.
One of the new requirements is banks, mortgage companies or lenders are required to receive a copy of a real estate purchase contract and all addendums associated with the contract prior to completing an appraisal report. Why this wasn't a guideline from the beginning is beyond me. Any amendments to the purchase contract prior to the appraisal must be submitted to the appraisal company immediately.
Multiple appraisals can no longer be provided on a single parcel. In other words, the appraisal company cannot appraisal part of a parcel. They have to appraise the "entire" parcel.
REO and foreclosed properties MUST be included as comparable properties. Previous guidelines allowed the appraiser to exclude these numbers.
Third party appraisal companies who are at "arms-length" from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?
Any structural defects or abnormal repairs found with a property must be corrected before an appraisal company finalizes the market value of a home or parcel. FHA created the 203K loan to address these concerns.
If management in the appraisal company has an "employee" complete an appraisal, before management or a review appraiser can sign off on the appraisal, they must complete their own inspection on the property. Management cannot depend solely on the "employees" expertise.
The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.

Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.charlottesvillevarealestate.blogspot.com/
http://www.charlottesvilleshortsale.com/
http://www.theaverygroup.com/