Archive for September 29th, 2013

Credit Plus Offers New Employment Verification Services

Credit Plus Offers New Employment Verification Services

09/27/2013 BY: HUGH MOORE

Credit Plus announced Friday that the company is now a certified reseller of Equifax Verification Services (EVS).EVS offers online employment verification from Equifax’s The Work Number database.

“Lenders today operate in an environment of heightened regulation making the need to have reliable verification processes from a credentialed source more important than ever,” said Michael Kuentz, verification services leader at Equifax. “As a reseller of The Work Number, Credit Plus is well positioned to deliver an unparalleled level of efficiency, and documentation to lenders to help them better manage risk and meet regulatory demands.”

Equifax’s The Work Number database includes 226 million total records and more than 53 million current employment records contributed by over 2,500 employers. It is updated every payroll cycle. Credit Plus is able to manually verify employment within one to three business days for applicants not included in the database.

Greg Holmes, national director of sales and marketing at Credit Plus, said Equifax’s database will streamline operations for customers.

“We make employment verifications easy and offer lenders an auditable process that ensures they are getting data they can trust,” Holmes said.

Michael R. Brinkman Joins Gerner and Kearns

Michael R. Brinkman Joins Gerner and Kearns

09/27/2013 BY: HUGH MOORE

Gerner & Kearns Co., L.P.A., announced recently that Michael R. Brinkman has joined the firm as a Senior Associate in its Litigation Department.

Brinkman has nearly thirty years of experience practicing in the areas of foreclosure, eviction, real estate title and closing, and creditors’ rights litigation. He received his JD from the Salmon P. Chase College of Law. He is licensed in Kentucky and will work out of the firm’s Ft. Wright, Kentucky office.

“We are pleased to continue to add high-quality attorneys to our Litigation Department by adding Mike to our team,” said David E. Gerner, Esq., the firm’s managing partner.

Gerner & Kearns, Co., L.P.A., is a creditors’ rights law firm that was founded in 1987 and has offices in Kentucky, Ohio, and Indiana. The firm’s practice areas include foreclosure, bankruptcy, evictions, origination and REO closings, loss mitigation, and commercial litigation.

Commentary: Same Old, Same Old

Commentary: Same Old, Same Old

09/27/2013 BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST

The summer is over and with it the end of re-runs of (some of) our favorite shows. There might even be some original movies, not sequels or prequels.

But, there’s one more re-run we have to endure but with a new twist: Republicans in Congress balking at increasing the debt ceiling and threatening a government shutdown when the federal fiscal year ends October 1 unless – and this is the twist – legislation passed by the Congress and signed into law by the President is tweaked, modified, changed, delayed or otherwise abandoned.

Most notably, Republicans want the Patient Protection and Affordable Care Act (PPACA) – whose name has been corrupted to “Obamacare” – defunded, delayed or otherwise dismantled. Never mind that House Republicans have voted at least 37 times to repeal it, to no avail.

Now the PPACA is by no means perfect. Indeed it has a good many shortcomings, but the underlying premise is sound: to extend health insurance to as many as 25 million Americans who now don’t have or can’t afford coverage.

PPACA has at times been described as health care reform. Would that that were so. The only way it “reforms” health care is by making it possible for more people to see doctors early in an illness when treatments can be most effective. It reduces the likelihood that you will get sick when the person next to you on a bus sneezes, by eliminating the sneeze.

When New York City mayor Michael Bloomberg pushed for an outright ban on smoking in restaurants (previously smoking was permitted in a designated section of the restaurant and at a bar), he did it not so much to try to discourage patrons from smoking as to protect the wait-staff which would be inhaling second-hand smoke throughout their shifts.

And so it is with the PPACA: trying to remove or reduce the impediment of a doctor’s fee which might prevent someone from seeking treatment. (One of the more outrageous moments in the “debate” leading up to the passage of the PPACA was when President Obama caved agreed it would not apply to undocumented workers, prompting Rep Joe Wilson (R-South Carolina) to shout “you lie” when President Obama made that assertion in a speech to a joint session of Congress in September, 2009.

Obama’s agreement to exclude undocumented workers ignored some rules of contagion unless he believes undocumented workers don’t get sick.

Why the rush to scuttle the PPACA before all of its provisions kick in? Republicans – and other opponents understand the history. Once Americans experience and appreciate the advantage of being able to obtain affordable medical insurance regardless of their health history and of being able to cover their children until they turn 26, they would be reluctant to turn back the clock. Recall the protest signs reading: “Take Your Government Hands Off My Medicare.” You can’t put the toothpaste back in the tube.

There’s another bid of history. The Social Security Act was signed by President Franklin Roosevelt on August 14, 1935. Taxes were collected for the first time in January 1937, conveniently after the 1936 presidential election, and the first one-time, lump-sum payments were made in January 1937. Regular ongoing monthly benefits started in January 1940, another presidential election year.

Between the time the bill was signed and the first payments, FDR ran for re-election against Alf Landon who campaigned on a platform to repeal Social Security. FDR received 60.8 percent of the popular vote and 523 electoral votes — all but 8 of the 531 electors. In 1964, Lyndon Johnson received 61.05 percent of the popular vote running on a platform to establish Medicare, which he signed into law just five months after his inauguration. One year after he backed a proposal requiring employers to provide a minimum level of health insurance for their workers, Richard Nixon came close to FDR’s electoral vote total, winning re-election with 520 electoral votes. Ronald Reagan, after winning re-election with 525 electoral votes, in 1988 signed a major expansion of Medicare which was designed to protect older Americans from financial ruin due to illness or disability. (Because the expansion, the Medicare Catastrophic Coverage Act (MCCA), was funded by a surcharge on wealthier seniors, it was repealed a year later after a series of protests across the country.)

Despite the repeal of the MCCA, the overall lesson is clear that benefits once granted are politically difficult, if not impossible, to withdraw.

But the threat the GOP is using is equally if not more unpalatable – and unrealistic. The President is not about to undermine his own signature legislative achievement, so installing it as a demand in the delicate arguments over funding the government or increasing the debt ceiling is and has to be a non-starter.

While in the second quarter the impact of budget cuts under sequester appears to have been a non-event as the economy grew more than twice as fast as the previous pre-sequester quarter (2.5 percent compared to 1.1 percent), that result cannot be sustained. Virtually every aspect of life will be affected if the government shuts down entirely: veterans will go untreated at VA hospitals which have only recently begun to right a foundering ship; food and drug inspections will end abruptly as will monitoring of air and water quality and even a relaxing visit to a national park will be impossible.

Beyond that, the necessary borrowing – to pay for items already purchased – will be impossible. Think of refusing to pay your credit bill and then trying to use it.

The debate over the PPACA has a direct impact on the housing industry by its ability to remove, or at least mitigate, one of the factors often cited for mortgage defaults: unexpected medical bills.

To be sure, achieving legislation in contentious Washington requires compromise. But putting the fiscal future of the country at risk for an unachievable goal is not compromise, it is folly.

HUD Delays Dual Agency Restrictions

HUD Delays Dual Agency Restrictions

09/27/2013 BY: HUGH MOORE

HUD has delayed its prohibition of dual agency listings on short sale properties according to a statement made this week by the National Association of Realtors (NAR).

The HUD prohibition had first been outlined in a July letter to mortgage servicers describing new anti-fraud requirements for short sales and deed-in-lieu of foreclosure transactions. The original policy was slated to go into effect October 1, 2013.

In response, NAR President Gary Thomas wrote a letter toHUD outlining NAR’s concern with both the reasoning behind the prohibition and the possible consequences of it.

“NAR has been told that the policy was implemented because the HUD Inspector General detected fraud and abuse in the pre-foreclosure sales process; however, no

statistics or reports were provided to NAR detailing short sale fraud by real estate agents,” the letter said. “NARtakes fraud very seriously…If there is evidence of fraud by our membership, we would like to be part of an effort to develop policies that effectively address these
issues.”

Thomas’s letter also raised concerns about how a prohibition on dual listing would affect agents’ and brokers’ ability to effectively serve their clients.

“More homeowners are at risk of falling into foreclosure if they cannot find a real estate agent, especially one who is knowledgeable about the short sale process, to list their homes,” Thomas said. “Some real estate brokers have hundreds of agents across multiple offices. If one of those offices chooses to list a short sale, under HUD’s new policy, none of the other agents can bring a buyer to that property. Members have told me that they will no longer list short sales because they do not want to restrict agents from representing their buyers, many of whom have been loyal customers for years.”

NAR announced Wednesday that, following talks with HUD, the proposed prohibition had been delayed indefinitely. “The result is that the dual agency policy will not be implemented on Oct. 1, allowing NAR to continue the dialogue with agency officials on a formal solution to the dual agency issue,” NAR said in a statement.