HUD Launches “Homeowner Help” for Mortgage Assistance

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“Homeowner Help” is a new public service announcement (PSA) and television ad campaign being launched by the department of U.S. Housing and Urban Development.  An accompanying  Homeowner Help website and a Mortgage Assistance Guide are additional resources to educate homeowners at risk of mortgage default learn about potential assistance from the recent $25 billion mortgage servicing settlement.

It is not entirely clear how homeowners in trouble qualify for financial assistance. “There’s no simple, one-sentence explanation,” Shaun Donovan, secretary of the Department of Housing and Urban Development, said in a recent conference call with reporters.

Mortgage assistance will vary with each homeowner’s situation and may include:

  • Mortgage payment assistance for unemployed or underemployed homeowners.
  • Principal reduction to help homeowners get into more affordable mortgages.
  • Funding to reduce or eliminate homeowners’ second lien loans.
  • Help for homeowners who are transitioning out of their homes and into more affordable  places of residence.

In April of 2012, a Federal District Court approved the landmark $25 billion agreement between the Justice Department, the Department of Housing and Urban Development, 49 state attorneys general and the nation’s five largest mortgage servicers – Ally/GMAC, Bank of America, Citi, JP Morgan Chase, and Wells Fargo – to address mortgage loan servicing and foreclosure abuses. The settlement will provide up to $25 billion in relief to borrowers and direct payments to the states and federal government. It is the largest multi-state settlement since the Tobacco Settlement in 1998.

The PSA can be viewed at www.hud.gov and www.nationalmortgagesettlement.com.

Fort Lauderdale Foreclosure Defense Attorney

If you are at risk of losing your home to mortgage foreclosure, there is action you can take. Contact Fort Lauderdale mortgage foreclosure attorney Marcy Resnik to discuss how you can defend your legal rights in a foreclosure. You can contact Ms. Resnik online or call her at 954-321-0176.

Municipal Securities Report Issued by SEC

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Enhanced disclosure requirements for municipal securities investors are suggested in a new comprehensive report issued by the Securities and Exchange Commission.

State and local governments issue municipal securities to finance a wide variety of projects that are critical to building and maintaining the nation’s infrastructure.

At the start of 2012, there were more than one million different municipal bonds outstanding totaling $3.7 trillion, with 75 percent held by individual “retail” investors.

Despite its size and importance, the municipal securities market has not been subject to the same level of regulation as other sectors of the U.S. capital markets due to broad exemptions under federal securities laws for municipal securities.

Without a statutory regime for municipal securities regulation, the SEC’s investor protection efforts in the municipal securities market have been limited. The SEC’s report discusses potential legislative changes that could help improve disclosures to investors. For instance, the report recommends that Congress consider authorizing the SEC to set baseline disclosure standards and require municipal issuers to have audited financial statements.

Other potential legislative changes recommended in the report to help improve disclosures and practices in the municipal securities market include:

  • Eliminating the availability of Securities Act and Exchange Act exemptions for conduit borrowers who are not municipal entities.
  • Authorizing the Commission to establish the form and content of financial statements for municipal issuers who issue municipal securities, and to recognize a designated private-sector body as the standard setter for generally accepted for federal securities law purposes.
  • Providing a safe harbor from private liability for forward-looking statements of repeat municipal issuers that satisfy certain conditions.
  • Permitting the Internal Revenue Service to share information with the SEC that it obtains from returns, audits, and examinations related to municipal securities offerings, particularly in instances of suspected securities fraud.
  • Providing a mechanism, through trustees or other entities, to enforce compliance with continuing disclosure agreements and other obligations of municipal issuers to protect municipal securities bondholders.

In addition to potential legislation, the SEC’s report identifies potential rulemaking by the Commission or the Municipal Securities Rulemaking Board and enhancement of best practices by the municipal securities industry.

Click on the link for the SEC Report on the Municipal Securities Market.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.

Federal Housing Agency Rules Against Principal Reduction

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Edward DeMarco, Acting Director of the Federal Housing Finance Agency (FHFA), provided a response today to numerous congressional inquiries as to whether the FHFA would direct Fannie Mae and Freddie Mac to implement the Home Affordable Modification Program Principal Reduction Alternative (HAMP PRA).

After extensive analysis of the revised HAMP PRA, including the determination by the Treasury Department to begin using Troubled Asset Relief Program (TARP) monies to make incentive payments to Fannie Mae and Freddie Mac, FHFA has concluded that the anticipated benefits do not outweigh the costs and risks. Given FHFA’s multiple responsibilities to conserve the assets of Fannie Mae and Freddie Mac, maximize assistance to homeowners to avoid foreclosures, and minimize the expense of such assistance to taxpayers, FHFA concluded that HAMP PRA did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the approaches in place today.

Mr. DeMarco also previewed for Congress several housing-related initiatives to strengthen the loss mitigation and borrower assistance efforts of Fannie Mae and Freddie Mac as well as improve the operation of the housing finance market. These initiatives include:

  • New and consistent policies for lender representations and warranties
  • Alignment and simplification of the Enterprise short sales programs, and
  • Further enhancements for borrowers looking to refinance their mortgages

Fort Lauderdale Foreclosure Defense Attorney

If you are at risk of losing your home to mortgage foreclosure, there is action you can take. Contact Fort Lauderdale mortgage foreclosure attorney Marcy Resnik to discuss how you can defend your legal rights in a foreclosure. You can contact Ms. Resnik online or call her at 954-321-0176.

International Investing Issues and Risks

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Investing in any security requires careful consideration, and investor risk increases considerably with international investing. Special issues and risks when making investments overseas include:

Legal remedies. Where you purchase a security can impact whether you have, and where you can pursue, legal remedies against the foreign company or any other foreign-based entities involved in your transaction, such as a foreign broker. Even if you sue successfully in a U.S. court, you may not be able to collect on a U.S. judgment against a foreign company, entity or person. You may have to rely on legal remedies that are available in the home country, if any.

Working with a broker or investment adviser. If you are working with a broker, make sure the broker is registered with the SEC. It is against the law for a broker, foreign or domestic, to contact you and solicit your investment unless it is registered with the SEC. If you directly contact and work with a foreign broker not registered with the SEC, you may not have all the protections under the laws of the United States as would be the case if the broker were registered with the SEC.

Costs of international investments. International investing can be more expensive than investing in U.S. companies. In some countries there may be unexpected taxes, such as withholding taxes on dividends. In addition, transaction costs such as fees, broker’s commissions and taxes may be higher than in U.S. markets. You also should be aware of the potential effects of currency conversion costs on your investment. Mutual funds that invest abroad may have higher fees and expenses than funds that invest in U.S. securities, in part because of the extra expense of trading in foreign markets.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.

Residential Condo Boom in Sunny Isles, FL

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A major real estate redevelopment campaign is taking place on the east side of Collins Avenue, the main thoroughfare in Sunny Isles, FL. Zoning laws now ensure that view corridors and beach access pathways will always offer residents a life with a view. To the west of Collins Avenue, the City is building parks, improving the infrastructure and laying the groundwork for future redevelopment.

According to the Miami Herald, “Developers are proceeding with at least six condo towers — nearly 15 percent of the more than 45 towers proposed for the tri-county South Florida region through July 2012 — with at least 530 luxury units to be constructed in a community that stretches less than 40 blocks along Collins Avenue.”

The 43-story Regalia project, featuring 39 units priced in the range of $6 to $7 million each, is the only condominium tower currently under construction. Other planned projects include the Chateau Beach and the Mansions at Acqualina.

The Sunny Isles strategy is to steadily replace outdated motels with luxury residential oceanfront development. Much of the residential construction is not for year-round occupancy, although statistics show a steady growth in young families who desire to be near the ocean.

This “City of Sun and Sea,” is located on a barrier island in the northeast corner of Miami-Dade County, bounded by the Atlantic Ocean on the east and the Intracoastal Waterway on the west. Almost one million vacationers visit Sunny Isles Beach annually.

South Florida Condominium and Real Estate Attorney

Contact South Florida condominium attorney Marcy Resnik to discuss your need for legal services with a condominium purchase, sale, or business dispute. You can contact Ms. Resnik online or call her at 954-321-0176.

 

Royal Palm Bank of Florida, Naples, FL, in FDIC Receivership

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On Friday, July 20, 2012, The Royal Palm Bank of Florida, Naples, FL was closed by the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

All deposit accounts, including brokered deposits, have been transferred to First National Bank of the Gulf Coast, Naples, FL (“assuming institution”) and will be available immediately. The former The Royal Palm Bank of Florida locations will reopen as branches of First National Bank of the Gulf Coast during regular business hours.

Transferred deposits will be separately insured from any accounts that a customer may already have at First National Bank of the Gulf Coast for six months after the failure of The Royal Palm Bank of Florida. Checks that were drawn on The Royal Palm Bank of Florida that did not clear before the institution closed will be honored as long as there are sufficient funds in the account.

Vendors that provided a service or product, leased space, furniture, or equipment to The Royal Palm Bank of Florida prior to Friday, July 20, 2012 and have not been paid, may be entitled to a claim against the bank.

Details on the closure are available at Failed Bank Information for The Royal Palm Bank of Florida, Naples, FL.

Fort Lauderdale Banking Attorney

Banking attorney Howard Kahn, Esq., represents lenders and creditors in connection with commercial and residential financing and loan transactions, title claims, mortgage fraud, and related litigation. Bringing a concierge service approach to banks and other lenders, he is available as needed to provide trusted legal counsel both during business hours and as emergencies arise at other times. Read more about our Florida banking law services. Contact Mr. Kahn online or at 954-321-0176.

Americans with Disabilities Act Marks 12th Anniversary

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The Americans with Disabilities Act (ADA), which prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities, was first signed into law by President George H.W. Bush on July 26, 1990.

Discrimination is only one obstacle that a disabled person may experience. Highly trained professionals who suffer an unexpected disability through illness or injury are at risk of a significant and sudden drop in income. Even if disability insurance is in effect, the insurance carrier may make it very difficult for the professional to receive the level of monetary benefits to which they are entitled under the disability policy.

Your Legal Rights to Disability Benefits

The disability attorneys at Kahn & Resnik, P.L. are experienced in working with doctors and business professionals who have trouble obtaining expected disability insurance benefits. We understand potential coverage issues, including:

  • Date at which benefits become available (elimination periods)
  • Length of time benefits are received
  • Compensation history on which benefits are calculated
  • Definition of comparable work
  • Full-time versus part-time work
  • Estimates of future earnings
  • Total disability versus residual or partial disability claims

Our attorneys have helped many professionals pursue disability benefits in claims against the country’s leading disability insurance carriers throughout the United States.

Contact a Fort Lauderdale Disability Attorney for Professionals

If you are a highly skilled medical or business professional, contact attorney Howard Kahn, Esq. if your disability insurance benefits are in dispute following an injury or illness. Mr. Kahn works with physicians, internists, specialists, surgeons, podiatrists, dentists, chiropractors, accountants, architects, attorneys, business owners and other professionals in need of assistance with a disability claim.

Peregrine Financial Group Losses Draw Investor Lawsuits

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Peregrine Financial Group (“PFG” or “PFGBest”) is the subject of an increasing number of lawsuits following its bankruptcy filing last week.

The financial derivatives brokerage firm, based in Cedar Falls, Iowa with offices in Chicago, collapsed when founder Russell R. Wasendorf, Sr. was rescued during a suicide attempt. A note he left admits, “Through a scheme of using false bank statements I have been able to embezzle millions of dollars from customer accounts at Peregrine Financial Group, Inc.”

PFG was one of the largest non-clearing U.S. Futures Commission Merchants, with customers, affiliates and brokerage offices in more than 80 countries, according to the firm’s website. For 13 consecutive years, PFGBEST was ranked as one of the nation’s Top 50 Brokers in Futures magazine annual roundup.

A “Futures Commission Merchant” (“FCM”) is defined as an individual or entity that solicits or accepts orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any exchange. FMCs also accept payment from or extend credit to those whose orders are accepted.

Investors are charging that the firm violated a basic broker regulation forbidding the commingling of client funds with other firm monies.

The Commodity Futures Trading Commission, in accordance with the Commodity Exchange Act, requires that customer funds to be segregated and separately accounted for. Specific regulations include:

  • All customer funds shall be separately accounted for and segregated as belonging to commodity or option customers. Such customer funds when deposited with any bank, trust company, clearing organization or another futures commission merchant shall be deposited under an account name which clearly identifies them as such and shows that they are segregated.
  • Each futures commission merchant shall treat and deal with the customer funds of a commodity customer or of an option customer as belonging to such commodity or option customer. All customer funds shall be separately accounted for, and shall not be commingled with the money, securities or property of a futures commission merchant or of any other person, or be used to secure or guarantee the trades, contracts or commodity options, or to secure or extend the credit, of any person other than the one for whom the same are held, with some additional provisions.

The rules of the Chicago Mercantile Exchange (“CME”) similarly prohibit commingling of customer funds with other firm funds.

Approximately $200 million in client funds are allegedly missing.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.

Divorce of Tom Cruise and Katie Holmes Shows Benefits of a Prenup

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While a divorce is never easy, the apparent ease with which Tom Cruise and Katie Holmes reached agreement on the dissolution of their marriage demonstrates the benefits of a prenuptial agreement.

Ms. Holmes initiated divorce proceedings on June 29th, and the couple, affectionately known as “TomKat” by fans, reached a divorce agreement just a week later after five years of marriage. Ms. Holmes gains primary custody of the couple’s 6-year old daughter Suri.

According to celebrity news reports, the actress will receive up to $15 million ($3 million for each year of marriage) under the terms of their 2006 prenuptial agreement.

Reaching agreement in advance of a marriage as to how assets, liabilities, and family obligations will be handled makes it easier for the parties to focus on achieving a mutually supportive marital relationship.

A prenuptial agreement, entered into before the marriage date, gives each party the comfort of knowing that their wishes are legally binding.

Common provisions in a prenuptial agreement address key factors such as:

  • Property rights and obligations of each party for property owned by either party
  • Property disposition in the event of divorce, death, or a separation
  • Transfer of assets to children in a blended family
  • Spousal support arrangements
  • Treatment of any death benefits from a life insurance policy
  • Estate planning

Child custody is almost always a highly emotional issue in any divorce. In this case Tom Cruise and Katie Holmes recently issued a joint statement stating, “We are committed to working together as parents to accomplish what is in our daughter Suri’s best interests.” They went on to say, “We want to keep matters affecting our family private and express our respect for each other’s commitment to each of our respective beliefs and support each other’s roles as parents.”

This was the first marriage for Ms. Holmes and the third for Mr. Cruise, who has two children with his second wife Nicole Kidman.

Click on the link to read more about the benefits of a prenuptial agreement.

Contact a Fort Lauderdale Divorce Attorney

If you have questions about a divorce or dissolution of marriage, contact Fort Lauderdale divorce attorney Marcy Resnik. You can contact her online or call her at 954-321-0176.

Investors Warned about Exchange-Traded Notes

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An Investor Alert titled Exchange-Traded Notes—Avoid Unpleasant Surprises was issued today by The Financial Industry Regulatory Authority (FINRA).

Exchange-traded notes (ETNs) are a type of debt security that trade on exchanges and promise a return linked to a market index or other benchmark. However, unlike exchange-traded funds (ETFs), ETNs do not buy or hold assets to replicate or approximate the performance of the underlying index.

Some of the indexes and investment strategies used by ETNs can be quite sophisticated and may not have much performance history. The return on an ETN generally depends on price changes if the ETN is sold prior to maturity (as with stocks or ETFs)—or on the payment, if any, of a distribution if the ETN is held to maturity (as with some other structured products).

As FINRA’s Investor Alert explains, an ETN’s closing indicative value is computed by the issuer and is distinct from an ETN’s market price, which is the price at which an ETN trades in the secondary market. Investors should understand that an ETN’s market price can deviate, sometimes significantly, from its indicative value.  If the ETN is trading at a significant premium to its closing or intraday indicative value, investors might want to consider similar products that are not trading at a premium.

“ETNs are complex products and can carry a raft of risks. Investors considering ETNs should only invest if they are confident the ETN can help them meet their investment objectives and they fully understand and are comfortable with the risks,” said Gerri Walsh, FINRA’s Vice President for Investor Education.

Exchange-Traded Notes describes the specific risks associates with ETNs, including:

  • Credit Risk. ETNs are unsecured debt obligations of the issuer.
  • Market Risk. As an index’s value changes with market forces, so will the value of the ETN in general, which can result in a loss of principal to investors.
  • Liquidity Risk. Although ETNs are exchange-traded, a trading market may not develop.
  • Price-Tracking Risk. Investors should be wary of buying at a price that varies significantly from closing and intraday indicative values.
  • Holding-Period Risk. Some leveraged, inverse and inverse leveraged ETNs, are designed to be short-term trading tools, and the performance of these products over long periods can differ significantly from the stated multiple of the performance (or inverse of the performance) of the underlying index or benchmark during the same period.
  • Call, Early Redemption and Acceleration Risk. Some ETNs are callable at the issuer’s discretion.
  • Conflicts of Interest. The issuer of the notes may engage in trading activities that are at odds with investors who hold the notes (shorting strategies, for instance).

FINRA’s new Investor Alert also contains a step-by-step checklist to help investors determine if an ETN is right for them. Click on the link to read the full ETN investor alert.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.