Thursday, February 23, 2006

Buffalo, New York —

Residents and business owners in the Elmwood Avenue neighborhood and surrounding area in Buffalo heard a competing proposal for development in their neighborhood at the February 22 meeting held at the Burchfield-Penney Art Gallery, at Buffalo State College. The meeting, attended by at least 140, was originally to consider the Elmwood Village Hotel but also included a new revitalization proposal from Rocco Termini which would increase retail space, but involves less demolition and no hotel.

Rocco Termini, a Buffalo, New York developer wants to develop the corner of Elmwood and Forest, the same spot where Savarino Construction Services Corporation want to build the Elmwood Village Hotel.

Termini proposed that a similar revitalization take place on the intersection like one that incorporated 3 buildings on Aurburn and Elmwood just last year. Termini’s proposal will add more retail space than Savarino’s proposal with the possibility of including up to seven retail outlets.

“I just think it’s necessary to preserve the streetscape that we have. That’s the whole point of living and shopping on Elmwood,” said Termini. “You should be able to go into little shops, that have unique items, and that bring people to Elmwood. When you bring a big box on Elmwood Avenue, it takes something away from the urban-streetscape, just as suburban areas do not want a big box Wal-Mart. We don’t want a big box on Elmwood avenue and I think that’s just what this (the hotel) does, brings a big box to Elmwood,” said Termini.

When asked if there were any development companies currently interested in his proposal Termini said, “I will be willing to take a look at this myself,” said Termini. “Or I would be more than happy to be partners with Sam, Sam Savarino,” who is President and Chief Executive Officer of Savarino Construction Services Corp.

An unnamed source close to the project stated, “Rocco has serious concerns that the Mobius’s asking price could make his project infeasible.”

It is unknown if Savarino Construction or the city of Buffalo will consider Termini’s proposal.

Termini purchased and developed several buildings and areas including the Ellicott Lofts on Ellicott Street in Buffalo, which opened in 2003, The Oak School Lofts which used to be a Buffalo Alternative School, and ‘IS’ Lofts on Oak Street in Buffalo.

Eva Hassett, Vice President of Savarino Construction, and Karl Frizlen an architect from The Frizlen Group and designer of the hotel commented on the development proposal. Hassett said, “We’ve been thinking about it and trying to put it together for the last few months, and it was made public a couple of weeks ago.”

“There are lots of different areas you can look at. This is an Elmwood Avenue hotel. Putting it somewhere else makes a completely different kind of hotel. We wanted a hotel that people could walk to from the business on Elmwood. We wanted a hotel that people could walk to from the Albright Knox Art Gallery. This is really a location for this kind of hotel. Other locations end up being for other kinds of hotels,” said Hassett

“We are excited about the concept of a boutique hotel at this corner. We think it makes sense to the various businesses in the area or the galleries just down the street. We also believe that this is a way for the visitors of Buffalo to experience what the best of what Buffalo has to offer. We think it will be a great way for people from out of town, to get to know what we know about the city,” said Hassett.

Although Hassett had said that the proposal has only been around “for a few months”, Karl Frizlen said that he came up with the idea “three years ago when Hans Mobius,” former owner of the properties at risk, “came to me and asked what we could do with these properties.” Frizlen also said that he introduced Mobius to “four different developers, who after seeing the properties, did not want to tackle them, saying that they felt like it was too much for them to take on.”

Hans Mobius did not attend last nights meeting.

Frizlen is also designing the former telephone company building at 504 Elmwood which would be a “mixed use building with retail on the lowest level and lofts on the other two floors.”

After speeches from developers, residents and business owners were invited to present questions and comments.

Mark Freelend, a Buffalo resident, and local artist, said “I’m looking at my house in the picture, and I’m picturing all the houses on Granger street behind me, and I’m realizing that, if this is implemented (the hotel), we will get zero sunlight. The Sun is supposed to be free, for everyone. The people on Granger are going to have eighty windows looking at them and their children being raised, and playing in the backyard, guests looking in the windows of their houses twenty-four hours a day. A million people starring into their houses. No sunlight, and they are on permanent reality TV. Put a price on that!”

“I think this hotel is totally out of scale to the area and it does not conform to the style (of Elmwood) at all. It will totally obscure the gateway of Elmwood. The gateway now has open arms that allow for passage and view into the commercial corridor. This hotel stands as a brick wall as far as I can tell,” said Nancy Pollina one of the owners of Don Apparel at 1119 Elmwood. Pollina referenced to the recent ‘revitalization’ project on Auburn and Elmwood saying, “That building was boarded up for years, and that was beautiful a renovation. That building was not in any less need of repair than Hans Mobius’s properties.”

Both residents and business owners in the area are concerned that the proposal is moving too quickly and said that the developers should wait before having any city meetings and wait for a consensus from the community on the hotel.

Mrs. Pollina said, “I think people feel passionate about their neighborhood, and this is their neighborhood. I feel that what was most shocking is that the city’s planning board meeting and Common Council meeting, which are they need to push this through, is next week without almost no notice. This (the proposal) is being rushed.

However; Sam Savarino did say that “some people have gotten emotional about this project. And I want to let the community know that we will listen to what you have to say. We’re not forcing this down anybody’s throat. If this is not something this community wants, we do not want to have it here.”

The city’s Planning Board is expected to meet on February 28, 2006 at 8:00am in room 901 on the 9th floor of City Hall. The city’s Legislative Committee meeting of Common Council is expected to take place on the same day at 2:00pm in Council Chambers on the 13th floor of City Hall.

It has just been confirmed from an unnamed source close to the project that “significant changes” will be made to the design of the Elmwood Village Hotel. “Its not being cancelled, just redesigned,” he said. The changes are not yet known, but they are could be released “tomorrow. He (Savarino) doesn’t want it released until he touches base with a few people today.”

Thursday, October 3, 2013

A review this week by Wikinews of US Consumer Financial Protection Bureau (CFPB) complaints about mortgages in the United States shows Bank of America leads all lending institutions in complaints.

Since mortgages complaints were recorded in December 2011, 77,622 total have been added to CFPB’s database. 29.2% of these complaints involved Bank of America, with the second most received by Wells Fargo, accounting for 15.5% of all complaints. JPMorgan Chase ranked third by volume of complaints with 9.8%. Ocwen was fourth with 8.7% and Citibank was fifth with 4.8%. Nationstar Mortgage; Green Tree Servicing, LLC; HSBC; PNC Bank; U.S. Bancorp; OneWest Bank; SunTrust Bank; Flagstar Bank; and Select Portfolio Servicing, Inc. each had between 1.0 and 3.8% of total complaints. The remaining 14.4% of all complaints about consumer mortgages were divided between about 530 other lending institutions.

The Motley Fool reported last month that for the past fiscal quarter, the biggest US based mortgage lenders were from first to fifth Wells Fargo, JPMorgan Chase, Bank of America, Quicken Loans and U.S. Bancorp.

According to the US Federal Reserve, debt for family residences stands at US$10.706 trillion for the second quarter of 2013. As of the end of June of this year, Bank of America is the United States’s second largest commercial bank with US$1.343 trillion in domestic assets. Wells Fargo is the fourth largest commercial bank with US$1.251 trillion in domestic assets. JPMorgan Chase is the largest US commercial bank with US$1.329 trillion in domestic assets and US$1.947 trillion in total assets.

The mortgage complaints in the CFPB report include several subproducts. Conventional fixed mortgages account for 27.1% of all complaints. Conventional adjustable mortgages account for 10.0%. FHA mortgages account for 7.7% of all complaints. Home equity loans or lines of credit account for 3.8% of all complaints. VA mortgages are 1.4% of all complaints. Second mortgages and reverse mortgages each account for 0.6% of complaints. The remaining 48.7% of complaints are about other mortgages or other mortgage issues. A few years ago, FHA loans accounted for about 10% of all US mortgages while VA loans accounted for about 3%. Prime loans accounted for over 75% of the market and the rest were subprime mortgages.

California leads all states by volume of complaints with 14768. It is followed by Florida, New York, Georgia and Texas. When complaints are divided by a state’s total population, New Hampshire leads. The state is followed by Washington D.C., Maryland, Georgia and Florida. Complaints do not correlate with national rankings for August’s foreclosure rate by state where Nevada topped the list, followed by Florida, Ohio, Maryland and Delaware.

Two zip codes account for over 1,000 total complaints between them. 565 complaints originated in the 48382 zip code, which is in Commerce Township, Michigan, located in suburban Detroit. 553 complaints originated in the 33071 zip code, in Coral Springs, Florida. According to real estate website Zillow, there are currently 1,033 properties in foreclosure in Coral Springs while Commerce Township only has 131 properties currently in foreclosure. Four other zip codes have 100 plus complaints originating from them. 91730, in Rancho Cucamonga, California, had 158 complaints. 33409, in West Palm Beach, Florida, had 132. 92626, in Costa Mesa, California, had 125 complaints. 92660, in Newport Beach, California, had 122 complaints. Respectively, the towns had 534, 1,068, 153, and 134 properties currently in foreclosure. These numbers are higher than for the cities of a few sampled zip codes where there was only one complaint, such as Gold Hill, Oregon which has 4 properties in foreclosure, and Decatur, Illinois which has 6 properties in foreclosure.

The CFPB categorizes complaints into six categories: “Loan modification, collection,foreclosure” or problems when a person is unable to pay; “Loan servicing, payments, escrow account” or problems with making a payment; “Application, originator, mortgage broker”; “Credit decision / Underwriting”; “Settlement process and costs”, and “Other”. The CFPB says the complaint types indicate consumers “appear to be driven by a desire to seek agreement with their companies on foreclosure alternatives. The complaints indicate that consumer confusion persists around the process and requirements for obtaining loan modifications and refinancing, especially regarding document submission timeframes, payment trial periods, allocation of payments, treatment of income in eligibility calculations, and credit bureau reporting during the evaluation period.” Currently, 59.6% of all complaints against lenders deal with being unable to pay. 25.1% deal with problems in making a payment. 7.0% have to do with the application process.

Of the complaint-heavy zip codes, for 48382 in Commerce Township, Michigan, 98.9% of all complaints have to deal with being unable to pay. Accounting for 23.4% of all mortgage complaints in Commerce Township, 132 of the complaints for being unable to pay were made regarding Bank of America, accounting for 97.8% or all but 3 complaints against them from the zip. 121 of the Bank of America responses in Commerce Township were closed with explanation and 12 were closed with non-monetary relief. 33071 in Coral Springs is different, with 537 of the 553 complaints being categorized under other. Only 11 complaints relate to foreclosure and issues with being able to pay. 92626 in Costa Mesa, where 32% of the mortgage complaints were about Bank of America and 26.4% were about Wells Fargo, had 93.6% of its complaints dealing with being unable to pay. 5 total complaints dealt with payment issues and 3 dealt with applications.

Beyond regional variance in complaint types lodged, the top five mortgage lenders by volume of complaints all had being unable to pay as their top complaint category, ranging between 55.8% for Citibank and 69.4% for Bank of America. Problems with payment accounted for the second largest area of complaints, with Ocwen having the largest percentage of complaints at 31.9% and Bank of America having the smallest at 18.8%. Foreclosure was the top area of complaints for a number of other lending institutions including 1st Alliance Lending, OneWest Bank, Ally Bank, Banco Popular de Puerto Rico, Bank of the West, BMO Harris, BOK Financial Corp, Caliber Home Loans, Inc, Capital One, Deutsche Bank and EverBank.

Nationally, complaints reached a high of 5,840 for January 2013, 1,107 more than the next highest month of April 2013. The total emerging for September is the second lowest since records were first kept in December 2011. On a state by state level, this pattern largely repeats with a major exception for Florida which saw a peak of 849 complaints in June 2012. Then, as now, Florida was one of the top five states in the nation in its foreclosure rate. The national January spike came as the Qualified Mortgage standard required by the The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 came into play. It required mortgage lenders to take steps to insure borrowers could repay their mortgages.

Bank of America’s complaint volume follows the national trend, with a spike in January 2013 with 1,925 total complaints. Unlike nationally, the next month by volume of complaints was February of this year with 1,598 complaints. Prior to that, the highest month was May 2012 with 1,418 complaints. The lowest volume of complaints is September this year with 334.

Wells Fargo matched national trends for volume of complaints by month, with the exception of the current month being the lowest on record for number of complaints with 197 compared to the next lowest month, December 2011, when they had 221. JPMorgan’s complaint volume by month spiked in January and March of this year with 504 complaints. April of this year was the next highest month with 493 complaints, edging out May of last year with 488 complaints. September this year is on track to be the lowest month by complaint volume.

The federal government shutdown is unlikely to impact the current mortgage situation in the United States directly for most consumers, though mortgage processing by the Federal Housing Administration could be slower, resulting in fewer mortgages processed.

Tuesday, March 24, 2009

The world’s least expensive car, the Tata Nano, has been launched in India. It will go on sale in April, and will start delivery in July. The automobile costs only 100,000 Indian rupees, or just under US$2,000.

“We are at the gates offering a new form of transportation to the people of India, and later I hope other markets as well,” said the chairman of the auto firm, Ratan Tata, calling the vehicle a “milestone.”

“From the drawing board to its commercial launch, the car has overcome several challenges,” Tata said. “I hope it will provide safe, affordable four-wheel transportation to families who till now have not been able to own a car.

“This was never conceived as the cheapest car, but as providing transport to those people who never owned a car,” Tata said. “Driven mainly by the change in demand that we see elsewhere in the world, we suddenly felt we had a product that could be of considerable interest as a low-cost product in western Europe, eastern Europe, the UK and even the U.S.”

The Tata Nano is a four-door vehicle, and is 3 metres long, 1.5 m wide, and 1.5 m tall. It is equipped with a 33 bhp, 624 cc engine at the rear. No radio, airbags, power steering, or air conditioning are available in the basic model, although upgrades are available. The Nano Europa, a slightly larger European version of the car, is expected in 2011.

According to Ravi Kant, the managing director at Tata Motors, the first 100,000 people to receive a Nano would be chosen from the initial orders by a ballot.

An auto analyst for Bombay’s Angel Broking, Vaishali Jajoo, predicted that the Nano will add only three percent to Tata’s revenues even if it can sell a quarter of a million such cars per annum.

“That doesn’t make a significant difference to the top line,” Jajoo said. “And for the bottom line, it will take five to six years to break even.”

Environmentalists say that the car will exacerbate traffic problems already rife in India, and help increase pollution levels. Tata, however, stated that its vehicle is the least polluting car in the country.

Thursday, July 14, 2005

First Active has become the first financial institution to offer 100% mortgages in the Republic of Ireland. The bank previously offered 100% financing to professionals in finance and medicine, but is now to offer this product to anyone who can afford to meet the repayments.

The development is a huge boost for first time home buyers who have been struggling to get on the Irish property market in recent years due to the rapid increase in house prices. A typical first time buyer in Dublin with 92% financing would normally have to put down a deposit of €20,000-€30,000 in cash, but now have the option to produce no deposit.

First Active has said that 100% mortgages will be available across its entire range of mortgage products.

Note however that this is not necessarily an entirely positive development.

The United States and most of Europe have experienced a housing price bubble in recent years. A bubble occurs when buyers purchase a property not because its price is appropriate for its actual value but because they expect the price to significantly rise in the short term permitting resale with a profit.

In other words, the prices people pay for properties becomes divorced from the real value of the property; the purchase is speculative and depends purely upon the expectation that people will continue to buy properties in this way (e.g. without proper consideration of their real value).

The terrible weakness in this is that when the market corrects itself and prices fall to a level where properties are being priced at their actual realistic value, anyone holding a property loses a great deal of money, since the price they paid does not reflect the actual realistic value of the property.

This kind of shock to the housing market is extremely undesirable. Significant write downs in the value of property often significantly depress the economy as a whole.

Less than 100% mortgages force buyers to invest a significant amount of money in the act of purchasing their house, which tends to discourage purely speculative purchasing, thus helping to mediate house price bubbles.

With 100% financing, anyone who can meet repayments can speculatively purchase a property. This naturally encourages pricing bubbles.

Wednesday, April 23, 2008

Catherine McGuigan, a resident in South Mimms, Hertfordshire, UK, found skeletons from over a century ago buried under her dining room.

She had hired builders for an extension for her cottage, where she has lived for eleven years, and at the beginning of April they found human bones in the ground.

Her cottage was built over a burial ground; from 1697 to 1820 the land was owned by the Religious Society of Friends. In the 1600s, members of the society, better known as Quakers, were persecuted for their beliefs and so were not allowed to be buried in consecrated church grounds. Instead burials, which were also sometimes for others not recognised as parishioners – such as homeless people, often took place in the countryside.

The Daily Mail states in its April article that the Religious Society of Friends have advised McGuigan that she “must cremate” the bodies, however Quakers have written an open letter to the Daily Mail, informing that for Quakers, there is “no specific advice on the disposal of bodies”, and that they had never expressed an opinion on how the discovered skeletons should be buried.

The cremation was rumoured to cost up to £32,000 – an £800 quote for cremation of a single body multiplied by 40, however as yet only ten bodies have been discovered.

The builders originally thought the bones were pieces of pipe, and McGuigan has now ordered coffins and is looking to holding a mass cremation or a burial in a nearby field.