Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-65204 Thu, 27 Feb 2020 19:49:24 GMT Wells Fargo paid 9x more in criminal penalties than it paid in interest to its depositors in past decade http://implode-explode.com/viewnews/2020-02-27_WellsFargopaid9xmoreincriminalpenaltiesthanitpaidininteresttoits.html iehi-feed-65203 Wed, 26 Feb 2020 13:54:36 GMT Quicken Loans hits "pause" on One Reverse Mortgage http://implode-explode.com/viewnews/2020-02-26_QuickenLoanshitspauseonOneReverseMortgage.html iehi-feed-65202 Tue, 25 Feb 2020 17:15:45 GMT Socialist Bernie Sanders And His Pigsty DC Home http://implode-explode.com/viewnews/2020-02-25_SocialistBernieSandersAndHisPigstyDCHome.html iehi-feed-65198 Mon, 24 Feb 2020 13:44:57 GMT Communist Bernie Sanders Owns Three Houses. Not Bad For A "Socialist" http://implode-explode.com/viewnews/2020-02-24_CommunistBernieSandersOwnsThreeHousesNotBadForASocialist.html iehi-feed-65197 Sun, 23 Feb 2020 22:16:08 GMT Why EVERY Attorney Needs to Know What HECM Means  | Mandelman Matters http://implode-explode.com/viewnews/2020-02-23_WhyEVERYAttorneyNeedstoKnowWhatHECMMeansMandelmanMatters.html What if you had an Uncle Hecm.  And he told you that he'd be willing to loan you say $200,000, at a relatively low interest rate, like 5%... and you wouldn't have to make any payments until you either died or sold your home.  What could you use that money for?  Anything, right?

You could use that money to start a business.  You could use it to consolidate debt or payoff student loans.  You could use it to buy a second home or maybe a motorhome.  You could use it to pay capital gains taxes... or settle a lawsuit. You could use it for absolutely anything.

Who wouldn't want an Uncle Hecm?  The answer is no one.

See also HELOCs Are Bad for Older Homeowners. Better Options Exist.

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iehi-feed-65196 Fri, 21 Feb 2020 16:25:07 GMT Ultra Lux Zaha Hadid NYC High Line Apts Still Half Unsold Since 2015 http://implode-explode.com/viewnews/2020-02-21_UltraLuxZahaHadidNYCHighLineAptsStillHalfUnsoldSince2015.html Per Crain's, fewer than half of the building's apartments have sold since sales launched in 2015, and its priciest and largest apartments (including a $50 million penthouse) are still seeking buyers. Only two of those apartments sold in 2018. This, Crain's concludes, makes it "a rare bust" for Related.

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Ultimately, market forces and the tastes of buyers may be to blame. The dip in luxury sales in NYC has been well-documented (despite the occasional $59 million penthouse sale in the neighborhood), and one broker with Douglas Elliman speculated that the apartments themselves don't quite reflect what buyers want these days--namely, smaller, less expensive apartments.

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iehi-feed-65194 Thu, 20 Feb 2020 16:54:47 GMT Rhode Island Property Preservationist Gets 8 Years In Prison http://implode-explode.com/viewnews/2020-02-20_RhodeIslandPropertyPreservationistGets8YearsInPrison.html iehi-feed-65191 Tue, 18 Feb 2020 17:19:53 GMT Rushmore Loan Management Warning! http://implode-explode.com/viewnews/2020-02-18_RushmoreLoanManagementWarning.html iehi-feed-65190 Sun, 16 Feb 2020 23:37:40 GMT Economists Finally Tackle Gentrification: Find Mixed (But Overall Good) Effect of Adding Supply http://implode-explode.com/viewnews/2020-02-16_EconomistsFinallyTackleGentrificationFindMixedButOverallGoodEffe.html Neighbors may assume that the high-rises cause the high rents. That's plausible if new buildings attract much wealthier residents, who in turn attract higher-end amenities that make a neighborhood more desirable... [NYU researcher Xiaodi Li] finds in New York that new buildings do attract more restaurants and cafes nearby. But she concludes that any effect those amenities have pushing up local rents is swamped by the power of new supply to push rents down. On net, she finds, for every 10 percent increase in housing supply, rents for properties within 500 feet drop by 1 percent, relative to other high-demand areas.

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"Wealthy people are already looking to move into the neighborhood," Mr. Mast said of how he would explain his findings to a heated public meeting over such a proposal. "So we can build this building that will give them the sort of unit that they want to live in. Or if we don't, they'll take a unit nearby and renovate it."

That logic may be little comfort to longtime residents, particularly those concerned about neighborhood changes that go beyond rent prices. But it addresses at least one argument against new housing.

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One caution comes from research by Anthony Damiano and Chris Frenier, doctoral candidates at the University of Minnesota who looked at new large-scale buildings built across Minneapolis. Like Mr. Mast and Ms. Li, they find that new supply helped ease rent pressure for higher-end units nearby. But at the bottom third of the market, they concluded that new buildings had the opposite effect, accelerating rents.

It's possible in some contexts that new market-rate apartments could cause one set of nearby landlords to curb their rents even as it causes another set to reassess how cheap their rents have been. It's even possible that lower-income renters may feel a bite from new construction at first, even if they may benefit from it over the long run

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iehi-feed-65186 Tue, 11 Feb 2020 13:50:07 GMT Deadbeat Dad Bernie Sanders Never Paid Child Support http://implode-explode.com/viewnews/2020-02-11_DeadbeatDadBernieSandersNeverPaidChildSupport.html iehi-feed-65185 Mon, 10 Feb 2020 04:20:48 GMT Real pay data show Trump's 'blue collar boom' is more of a bust for US workers: in 3 charts http://implode-explode.com/viewnews/2020-02-09_RealpaydatashowTrumpsbluecollarboomismoreofabustforUSworkersin3c.html iehi-feed-65184 Sun, 09 Feb 2020 14:55:48 GMT Foreclosure Horror Stories: 4 Bizarre Foreclosure Stories http://implode-explode.com/viewnews/2020-02-09_ForeclosureHorrorStories4BizarreForeclosureStories.html iehi-feed-65181 Fri, 07 Feb 2020 14:28:05 GMT Lender moves to foreclose on site of NYC hotel linked to Adam Neumann, Mexican magnate http://implode-explode.com/viewnews/2020-02-07_LendermovestoforecloseonsiteofNYChotellinkedtoAdamNeumannMexican.html East West Bank is moving to foreclose on the loans secured by the Selina Chelsea NYC property, citing a missed payment last monthly.

In a complaint filed in state court Monday, the bank said it issued two mortgages totaling $31 million in 2013, but the borrower -- a limited liability company led by Mexican hotel magnate Moises Micha -- is in default.

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Just last month, the owner of the Blakely Hotel on West 55th Street told staff he was shutting down his operation because of financial pressures, a move he said was symptomatic of wider problems across the industry

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iehi-feed-65180 Thu, 06 Feb 2020 19:53:33 GMT Attorney Anthony Colleluori: The Lionel Hutz Of Long Island http://implode-explode.com/viewnews/2020-02-06_AttorneyAnthonyColleluoriTheLionelHutzOfLongIsland.html iehi-feed-65179 Wed, 05 Feb 2020 16:57:57 GMT Former Porn Lawyer Off To Federal Prison For Mortgage Fraud http://implode-explode.com/viewnews/2020-02-05_FormerPornLawyerOffToFederalPrisonForMortgageFraud.html iehi-feed-65177 Tue, 04 Feb 2020 19:43:20 GMT New York Zombie Foreclosure Warning: Second Lien Holders Are Coming! http://implode-explode.com/viewnews/2020-02-04_NewYorkZombieForeclosureWarningSecondLienHoldersAreComing.html iehi-feed-65174 Fri, 31 Jan 2020 22:23:13 GMT The U.S. Housing Affordability Crisis Is Making Its Way to the Heartland http://implode-explode.com/viewnews/2020-01-31_TheUSHousingAffordabilityCrisisIsMakingItsWaytotheHeartland.html Earning $40,000 a year in Omaha used to be enough to make rent comfortably. Not anymore. Housing costs are slipping out of reach for the middle class in smaller and medium-size cities across the U.S., the latest sign that the affordability crisis that started on the coasts is moving inland, according to research released on Friday by the Harvard Joint Center for Housing Studies. From 2011 to 2018, the proportion of households making $30,000 to $45,000 a year that were "cost-burdened" -- paying more than 30% of their income on rent -- soared the most in metros including Nashville, Tennessee; Greenville, South Carolina; and McAllen, Texas.

The data highlight a harsh reality of the U.S. economy a decade into the longest expansion on record: For people who don't make big salaries, there are fewer and fewer affordable places to go.

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Wage growth has been lackluster in recent years compared with previous periods of economic expansion, and has failed to keep pace with rental costs. The consumer price index for rent rose an average 3.2% year-over-year from 2011 through 2019, Bureau of Labor Statistics data show. That outpaced average yearly earnings growth over the period of 2.4%.

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The share of low-cost units in the national rental stock shrank to 25% in 2017 from 33% in 2012 -- with the biggest declines in Iowa, Montana, Nebraska, North Dakota, Oklahoma, and Texas.

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iehi-feed-65170 Tue, 28 Jan 2020 16:55:04 GMT Former Wells Fargo CEO Fined $17.5 Million For Fake Accounts Fiasco http://implode-explode.com/viewnews/2020-01-28_FormerWellsFargoCEOFined175MillionForFakeAccountsFiasco.html iehi-feed-65169 Mon, 27 Jan 2020 19:06:56 GMT NYC Apartment Building Sales Plunge After Stricter Rent Regulation Rules Dent Values http://implode-explode.com/viewnews/2020-01-27_NYCApartmentBuildingSalesPlungeAfterStricterRentRegulationRulesD.html Sales of New York City apartment buildings tumbled to near-decade lows last year, after new rent rules scared investors away from properties with regulated units.

By every measure, it was a terrible 2019 for those in the business of owning and selling multifamily properties. The dollar value of purchases across all boroughs fell 40% from the prior year to $6.91 billion, the lowest total since 2011, according to a report by brokerage Ariel Property Advisors. There were 290 multifamily deals -- a 36% decline, and the first year with fewer than 300 transactions in records dating to 2010.

Apartments fell out of favor for investors last year as they digested New York's new rent law, which governs about 1 million apartments in the city. The overhaul took direct aim at landlords' income by making it almost impossible to raise rents, remove units from state regulation or even recoup the costs of capital improvements. In doing so, it upended a basic tenet of apartment investing: that spending on renovations could bring higher returns.

Kind of funny -- not that we're fans of rent regulation, but the rules just basically eliminate the ability of landlords and developers to boot people off of rent regulation, something you wouldn't expect to be able to do under rent regulation in the first place. This is another instance of the kind of battle between the "winners" and "left-behinds" we are seeing more and more of in our economy and polity.

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iehi-feed-65167 Fri, 24 Jan 2020 21:52:07 GMT JPMorgan Chase Alert! Can JPM-Chase Validate Your Mortgage? http://implode-explode.com/viewnews/2020-01-24_JPMorganChaseAlertCanJPMChaseValidateYourMortgage.html