M.M.

M.M.'s Posts

• Big Deals

  Planning Ahead

  by M.M.

  Two fast-growing companies positioned themselves to grow even larger through recently announced deals. In California, Victorville-based Frontier Homes, an entry-level and move-up builder headed by James Previti Jr., took over management of high-end builder Prestige Homes, founded by Previti's father, James Previti Sr. With the acquisition, Frontier Homes anticipates building more than 2,000 homes in 2006.

• Helping Hand

  by M.M.

  Fannie Mae and Freddie Mac are giving a much-needed break to the thousands of homeowners left homeless by Hurricane Katrina, allowing loan servicers to temporarily suspend payment collections from affected homeowners. Freddie Mac told servicers to stop collection of mortgage payments for September through November in the key major disaster areas designated by FEMA, regardless of the homes' condition, and it is allowing up to another nine months of suspended or reduced payments on a case-by-case basis. Fannie Mae is allowing servicers to suspend payments for three months, reduce payments for up to 18 months, or create longer payback plans. Both companies are requiring that lenders temporarily discontinue reporting delinquencies to credit bureaus if the missed payments are due to a natural disaster.

• Big Deals

  British Buyer

  by M.M.

  Centex Corp. disclosed in September that it will sell Fairclough Homes, its United Kingdom home building operation, to The Miller Group, the UK's largest privately owned residential building and development company. After foreign and domestic taxes, net proceeds of the sale are expected to be about $290 million. The deal comes as Centex pursues its strategic plan of focusing on domestic home building. The company is also considering a possible sale of Centex Home Equity Co., its sub-prime home equity lending group.

• Fraud Files

  by M.M.

  In its May 2005 “Financial Crimes Report to the Public,” the FBI described its efforts to combat various types of fraud, including mortgage fraud. The bureau, which recently consolidated its mortgage fraud operations within its Financial Institution Fraud Unit, identified 26 states with “significant mortgage fraud problems.” The top 10, ranked by incidents per capita: Michigan, South Carolina, Georgia, Florida, Illinois, Missouri, Colorado, Utah, Nevada, and California. Pending mortgage fraud cases rose from 436 in 2003 to 534 in 2004 and hit 642 through the second quarter of 2005.

• Hometown Discount

  by M.M.

  September 2005: This past spring, Boston Mayor Thomas M. Menino announced the launch of the city's Affordable Housing Trust Fund, designed to help city workers—many of whom are required to live in the city—pay for housing costs. The fund will support down payments, mortgages, and rent payments for qualifying members of the American Federation of State, County, and Municipal Employees (AFSCME). The city, which started the fund with a lump sum of $525,000, has pledged to contribute 5 cents for every hour worked by a Boston AFSCME member.