LIEB BLOG

Legal Analysts

Thursday, October 04, 2012

Green Guides - FTC's Regulations for Marking

Green Guides - FTC's Regulations for Marking
The Federal Trade Commission has promulgated regulations to "help marketers avoid making environmental marketing claims that are unfair or deceptive under Section 5 of the FTC Act, 15 U.S.C. [section] 45".

To read the FTC's press release concerning the Green Guides, click here.

For a Summary of the Green Guides, click here.

For the complete Green Guides, click here.

To learn more about these Green Guides and how they relate to Long Island Real Estate, register for our upcoming continuing education course, "To be Green or not to be Green" by clicking here.
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Wednesday, October 03, 2012

Mortgage Industry ,

The National Mortgage Settlement Takes Effect: An Update to “Robosigning Settlements” from February 9, 2012

The National Mortgage Settlement between the Attorney Generals of 49 States and five banks and mortgage servicers (Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo) takes full effect today.

For Borrowers that are eligible under this Settlement, it provides sweeping changes in the modification process, servicing of loans, payments to the States and possible payments to borrowers who have already lost their homes in foreclosure.

Perhaps, one of the most important changes for borrowers attempting to modify their mortgage at the same time as being in active foreclosure, the settlement agreement will greatly inhibit “dual tracking” of borrowers. “Dual Tracking” occurs when a borrower is in active foreclosure litigation at the same time as attempting to modify their loan.

Prior to today, the foreclosure litigation continued in earnest, at the same time borrowers were being evaluated for a loan modification. In the past, many borrowers submitted loan modification applications but lost their homes to foreclosure before their applications were reviewed by the lender.

Although the Directives under the Home Affordable Modification Program (HAMP), specifically states that “Foreclosure sales may not be conducted while the loan is being considered for a modification or during the trial period”, this was of no assistance to borrowers with lenders and/or servicers, that did not participate in HAMP.

As delineated in the “Servicing Standards Highlights” on the New York State Attorney General’s National Mortgage Settlement webpage, some of the key features of the Dual Track restrictions are as follows:
C. Dual track restricted
1. Pre-foreclosure referral
*            If bank/servicer receives a complete loan modification application by day 120 of delinquency, bank/servicer must review and make a determination on the application prior to referring the loan to foreclosure.
*            If bank/servicer receives a substantially complete loan modification application by day 120 of delinquency, bank/servicer must provide borrower an additional 10 days in which to complete the application.  If bank/servicer receives a complete application by the end of the 10-day extension, bank/servicer must review and make a determination on the application prior to referring the loan to foreclosure.
2. Post Foreclosure Referral
*            Once a loan has been referred to foreclosure, if the borrower submits a complete loan modification application within 30 days after the attorney letter is sent to the borrower, the bank/servicer must not move for a foreclosure judgment or seek a foreclosure sale until it has completed its review and determination of the application.  If servicer offers the borrower a loan modification, the servicer must continue to delay any action in the foreclosure proceeding until the borrower accepts or denies the offer.  If the borrower accepts the offer, the foreclosure proceeding is suspended unless the borrower fails to perform on the loan modification. The borrower may accept verbally, in writing or by making the first trial payment.
*            If borrower submits a complete loan modification at any time after 30 days following the mailing of the attorney letter but prior to 37 days before a scheduled foreclosure sale, the servicer must complete its review of the application prior to going to foreclosure sale.  If the servicer offers the borrower a loan modification, servicer must delay the sale if necessary to provide the borrower 14 days in which to accept or deny the offer, and, if the borrower accepts, must continue to delay the sale unless the borrower fails to perform on the modification.
*            If borrower submits a complete loan modification with 37 to 15 days before a scheduled foreclosure sale, the servicer shall conduct an expedited review.  If the servicer offers the borrower a loan modification, servicer must delay the sale to provide the borrower 14 days in which to accept or deny the offer, and, if the borrower accepts, must continue to delay the sale until the borrower fails to perform on the modification.

There are many more details and assistance to borrowers in this monumental Settlement. The impact the Settlement has on the struggling housing market, remains to be seen. With actual oversight of lender compliance, enforcement of the Settlement Agreement and assistance to borrowers by providing contact information about organizations to aid borrowers, through the Office of Mortgage Settlement Oversight and the National Mortgage Settlement Administrator and State Attorney General’s Offices, perhaps this is a step in the right direction. Hopefully, other lenders, that are not parties to the Settlement,will voluntarily adopt similar Servicing Rules. Such a voluntary act would certainly assist the entire Industry and create uniformity, which would positively impact the struggling housing market.

For more information please visit:
The New York State Attorney General’s Settlement info at:
http://www.nysmortgagesettlement.com/
The National Mortgage Settlement Administrator:
http://www.nationalmortgagesettlement.com/
The Office of Mortgage Settlement Oversight:
https://www.mortgageoversight.com/

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Tuesday, October 02, 2012

What should my Cap Rate be on my commercial space?

What should my Cap Rate be on my commercial space?
During our recent class on Property Management I was asked about Capitalization Rates for property in Long Island. A great website to get this type of information and other commercial real estate statistics is ReisReports. Click here to visit their site.
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Saturday, September 29, 2012

Organizations and Clubs for Long Island Commercial Real Estate

Organizations and Clubs for Long Island Commercial Real Estate
I am often asked how someone can get into commercial real estate. My general response is that a first step is to read literature on financial statements so that you can understand the money driver behind the industry. I suggest watching talks from leading developers, which can be found at i Tunes U. Its also important to read a form lease and to look up all of the terms so that you can gain a basic understanding of the language of the industry. Yet, what can be done that takes less self-discipline to get someone motivated, kind of a jump start?

I suggest joining one of these five (5) regional organizations to meet, network and discuss your passions and you can see if commercial real estate is really right for you.

Website
Name
Topic
www.lireia.com
Long Island Real Estate Investment Association
Real estate investment club for brokers
www.lireg.org
Long Island Real Estate Group
Provides the real estate industry and allied trades a platform for real estate-related charitable giving and networking
www.licommercialnetwork.org
Long Island Commercial Network
Commercial Division of the Long Island Board of Realtors
www.cibs-li.org
Commercial Industrial Brokers Society of Long Island
Where Nassau and Suffolk commercial dealmakers meet and build relationships
www.bomali.org
Building Owners’ and Managers’ Association
The leading advocacy group for the commercial real estate industry


Go to the website, look up when a meeting is happening, drive to the meeting, introduce yourself around the room and you are half way there. You will gain mentors and friends that can help you along the way.

Also, keep your eyes open for this year's Long Island Commercial Real Estate Convention and come experience the leading service providers to the industry and take a seminar or two to sharpen your skills.

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Thursday, September 27, 2012

Eminent Domain & Foreclosure: States take a look, our Federal Government has a position on this

Eminent Domain & Foreclosure: States take a look, our Federal Government has a position on this
A few posts back we discussed the technique of government utilizing its Eminent Domain power to force mortgage restructuring by taking mortgages at their current fair market value (not face value) and thrn having investors push money into government in order to modify the terms of the borrower's payments.

Thereafter, the Real Property Committee to the Suffolk Bar Association discussed this topic at our monthly meeting and addressed the issue of if Eminent Domain could force the taking at the depressed value or if instead, the taking should be had at the pre-depressed value as Eminent Domain takings had occurred during the Great Depression - our most similar reference in case law. To be clear, there are Eminent Domain cases that dispute the value at which property should be taken during a depressed market and it is unclear if, in NY, Eminent Domain could even be utilized to take mortgages at their current market value instead of their pre-depressed value.

Well our Congress now has a bill, HR 5397, Defending American Taxpayers from Abusive Government Taking Act of 2012, which basically prohibits Federal Agencies from partaking in such restructuring through Eminent Domain. So even if local government did utilize Eminent Domain, if this bill passes, many many mortgages would be off limits.

Your author doubts the bill will pass because there has been so much push back on the use of Eminent Domain in the first place throughout our Country, the issue of valuation in the second place within NY and other States, and the history of not much really getting done in Congress these days.

Regardless, to view & track the bill, as it is intellectually interesting, click here.
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