LIEB BLOG

Legal Analysts

Sunday, January 12, 2014

Welcome Breslin to The Moriches

Breslin Realty, welcome to Center Moriches; we at Lieb School and Lieb at Law are glad to be your neighbor. On their website, Breslin offers its site plan to bring big box retail to the quaint Moriches community.

While many may dislike the thought of big box retail in such a historic community in their initial gut reaction, this project should be viewed positively as it offers life to a very dead downtown that should benefit from some out-of-town traffic and life. More so, Breslin knows the community's unique character and seems to be embracing our culture with their marketing efforts. Specifically, the site plan's comments read as follows:

"Being one of the Gateways to the famous Hamptons of Long Island, this site affords major big box retailers the unusual opportunity to capitalize on one of the most sought after markets on Long Island. The location enjoys a non-competitive advantage on the South Shore, due to lack of developable, zoned retail properties; and due to the access from Sunrise Highway and Montauk Highway, your customer can access the site within minutes of Southampton, as well as the Moriches and surrounding trade areas."

We guess the secret of Center Moriches' marvelous location, being situated as the Gateway to the Hamptons, is out and more and more people will want to share in our pristine waterfront properties and striking downtown charm.

Welcome Breslin!

Thursday, January 09, 2014

The Plight of the Broker

Many look with envy at the good fortune of the broker, who reaps a large pot from simply introducing the parties to the deal, but to those who do not live in his shoes, think this:

"[A] broker is never entitled to commissions for unsuccessful efforts.

The risk of failure is wholly his.

The reward comes only with his success.

That is the plain contract and contemplation of the parties.

The broker may devote his time and labor, and expend his money with ever so much of devotion to the interests of his employer, and yet if he fails, if without effecting an agreement or accomplishing a bargain, he abandons the effort, or his authority is fairly and in good faith terminated, he gains no right to commissions.

He loses the labor and effort which was staked upon success.

And in such event it matters not that after his failure, and the termination of his agency, what he has done proves of use and benefit to the principal.

In a multitude of cases that must necessarily result.

He may have introduced to each other parties who otherwise would have never met; he may have created impressions which, under later and more favorable circumstances, naturally lead to and materially assist in the consummation of a sale; he may have planted the very seeds from which others reap the harvest; but all that gives him no claim.

It was part of his risk that failing himself, not successful in fulfilling his obligation, others might be left to some extent to avail themselves of the fruit of his labors."

This is the life of a broker as articulated by NY's Highest Court in the case of Sibbald v. Bethlehem Iron Co. in 1881, which remains true to this day. A broker deserves everything he gets as he must live in an all or nothing world. Here is to the broker who makes the deals happen!

Wednesday, January 08, 2014

Supplemental Directive 13-09 to Take Effect in Two Days

The time has come! Supplemental Directive 13-09 to the Making Homes Affordable handbook will take effect in two days on January 10, 2014.

As discussed in a previous entry, this Supplemental Directive makes the loss mitigation process easier, clearer, and more efficient. It is an alignment with the final Consumer Finance Protection Bureau (CNPB) Mortgage Servicing Regulations, which prohibit high risk lending and will also take effect on January 10, 2014. 

Servicers must review documents and submit Incomplete Information Notices in tighter timeframes than ever before. This makes sense because most borrowers submit incomplete initial packets anyway and should be advised of missing documents immediately to move forward from the initial stage. By contacting the borrowers earlier and responding to them quicker, servicers are now able to maximize borrower protection in their review of loan modification applications.

The Department of the Treasury and the Department of Housing and Urban Development did not want to completely overhaul the Making Homes Affordable guidebook because they did not want to alter or destroy the integrity of the programs. All changes to the Making Homes Affordable handbook were kept to a minimum and in accordance with the final CFPB Mortgage Servicing Regulations. Remember, the CFPB regulations are the bare bones of requirements for servicers, so when servicers review borrowers for HAMP, they still must consider the Making Homes Affordable handbook and state laws as well.  

Also, HAMP still remains top priority even though CFPB regulations require borrowers to be considered for all loss mitigation options at the same time. If the servicer participates in the HAMP program and the borrower is eligible for HAMP, the borrower must be given HAMP over other in-house loan modifications.