Chart02A change in how the most widely used credit score in the U.S. is tallied will likely make it easier for tens of millions of Americans to get loans.  ~Wall Street Journal Online, August 7, 2014.

According to a recent Wall Street Journal online article [FICO Recalibrates Its Credit Scores], FICO is going to get under the hood and re-jigger some of its proprietary algorithms, to deal with the realities of the damage wreaked on distressed homeowners over the past five years.  Continue reading “Fair Isaac Co. (aka “FICO”) Just Got Fairer!”

Thumbs down02“…the United States is still producing around $800 billion a year less in goods and services than it would if the economy were at full health, and as a result millions of people aren’t working who would be if conditions were better.” Neil Irwin, senior economics correspondent, N.Y. Times, Aug. 4, 2014.

If the U.S. economy were a person, we’d characterize them as suffering from chronic malaise, interrupted by occasional bursts of vitality. In a recent N.Y. Times article subtitled “A Recovery in Need of a Recovery” (here), author, Neil Irwin, the paper’s senior economics correspondent, does an excellent job identifying and discussing those sectors of the economy in need of a Venti Americano, with a few extra shots of caffeine. Continue reading “America’s Economic Malaise And The Importance Of Real Estate”

????????????????????????????????????????????????While Fannie Mae and Freddie Mac, the two GSEs[1] who’ve received the most attention of late – and much of it bad, after being taken over by the feds in October 2008 – their forgotten little sister, Ginnie Mae,[2] has been quietly growing into a strong young woman – metaphorically speaking. Continue reading “Ginnie Mae – The Forgotten Sister”

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kick·back  – noun \ˈkik-ˌbak\: An amount of money that is given to someone in return for providing help in a secret and dishonest business deal.  Merriam-Webster online.

Introduction.  Kickbacks and referral fees are regulated by Section 8 of the Real Estate Settlement Procedures Act codified at 12 U.S. Code § 2607 . Essentially, the law provides that in any transaction involving a federally related mortgage loan, no person shall give or receive “…any fee, kickback, or thing of value pursuant to any agreement or understanding, oral or otherwise…” other than for services actually performed. [Underscore mine.] This proscription also applies to “…any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service….” Continue reading “A Cautionary Tale For Real Estate Brokerages About Kickbacks And Affiliated Business Arrangements: The RealtySouth Case”

MarijuanaOne toke over the line sweet Jesus
One toke over the line
Sittin’ downtown in a railway station
One toke over the line ~ Brewer & Shipley, 1971.

Background. Landlords in Oregon are understandably flummoxed by the new prescription drug du jour, medical marijuana.  Why? Because, while Oregon permits the medical use of marijuana, the Federal Controlled Substances Act, 21 U.S.C. § 801, et seq., says that it is illegal to manufacture, distribute, and possess marijuana, even when state law authorizes its use. Furthermore, federal law supersedes state law where there is a direct conflict between them.  So, what does a landlord do when confronted by a card-carrying tenant claiming that he/she cannot be evicted for marijuana use and/or cultivation, because they have a legal right to do so under Oregon law.  The second arrow in the tenant’s quiver is the threat that “if you try to evict me, I will sue you under the federal Fair Housing laws[1] that say you must grant me a reasonable accommodation[2] [i.e. let me toke on the premises] because I have a “disability.”[3] Continue reading “Tenant Medical Marijuana Use In Oregon: Is It One Toke Over The Landlord’s Line?”

RowboatMaiden Voyage. This is the very first of what hopefully will be a series of periodic newsletters. I am hedging when I say “periodic” – but at least every three months. [If you’ve not signed up yet, go to link here!]

For readers of my website [here], they know that I alternate between objectivity and subjectivity, the latter occasionally morphing into a “rant.” Why?  Because I can, that’s why!  I’ve spent my legal career trying to grow a practice; going along to get along. I’ve been out on my own for four years, have a satisfying solo real estate practice, and so have fewer toes to step on.  In other words, I don’t worry so much about expressing my personal opinion today. Besides, who’s gonna fire me?! Continue reading “Q-Law Newsletter’s Maiden Voyage!”

Crystal BallWall Street Journal (May 8, 2014 by, Nick Timiraos, “5 Takeaways on Fannie, Freddie Earnings” ): “Mortgage giants Fannie Mae and Freddie Mac are sending $10.2 billion to the U.S. Treasury after reporting combined first-quarter profits of $9.3 billion. But Thursday’s earnings reports hinted at a possible cooling off in the profits of both companies, which have benefited from large one-time gains over the past several quarters. They also suggested a modestly softer housing demand.” Continue reading “Fannie, Freddie, And The Future”

Hands RaisedLike the prodigal son, equity has returned home. For the past five years, as collapsing values wiped out trillions of dollars of home equity, one had to wonder how long we would have to wait to see its return. According to a recent article in The M Report, here, not only is it returning, but fewer homeowners are pulling it out again. ~Phil