AG’s office sues air-duct cleaning operation

 

AG’s office sues air-duct cleaning operation

Colorado Attorney General John Suthers

Colorado AttorneyGeneral John Suthers

Colorado Attorney General John Suthers announced today that a civil lawsuit was filed and obtained a temporary restraining order against the owners of  duct-cleaning companies and the companies themselves, which operated under several different name.

Suthers took the actions again Andre Shatyko, 27, Alexander Kurdyukov 26 and their air duct cleaning companies: Seabreeze Air, LLC;  Seabreeze Air; Quality Air; Quality Air “LLC”; and Fresh Air, LLC.

They are accused of advertising their cleaning services for very low prices, only to significantly increase their prices once inside a customer’s homes. This business model violates the Colorado Consumer Protection Act.

“Along with misrepresenting their prices, the defendants also perform shoddy, incomplete work using inadequate tools that leaves dust and debris in consumers’ ductwork and sometimes causes damage to homes,” Suthers said.

“Based on consumer complaints, defendants sometimes leave homes in worse shape than before service was performed,” Suthers continued.

According to the complaint, Shatyko and Kurdyukov advertised their companies’ services for as little as $34.95 in coupon books such as ValPak and online sites such as Groupon and Living Social.

By marketing their services through Groupon and Living Social, consumers paid for vouchers upfront.

This matter will be heard in Denver District Court.

Consumers should be wary of companies whose promises seem too good to be true and are encouraged to file complaints if they feel they’ve been victimized with the Office’s Consumer Protection Section.

Consumers may report issues by calling 800-222-4444 or by clicking:www.coloradoattorneygeneral.gov/complaints.

 

John Marcotte

720-771-9401

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The Benefits of Home Ownership

The Benefits of Home Ownership

Plain and simple, owning a home can improve your quality of life, provide stability and give you a sense of control you just can’t get from renting. You have a place to live when you rent, but buying is something much deeper – and better.

The intangibles are tough to measure, but there are other benefits you can quantify:

Financial investment:
Your monthly mortgage payment creates equity for you, not your landlord.

The interest on your mortgage is a tax deduction:
While this isn’t a reason in itself to buy a home, it’s nice to get a break at tax time.

Fixed monthly housing payment:
If you opt for a fixed-rate mortgage, the monthly rate of your mortgage won’t change for the length of the term.

Look for a house you can stay in long-term; one that will “grow” with your family and needs. The financial benefits of owning increase over time.

Tax-free gain:
When it’s time to sell your home, you don’t pay taxes on the proceeds of the sale that are above what you paid (with some restrictions – see information on capital gains).

 

 

John Marcotte

720-771-9401

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Nine indicted for Foreclosure fraud

Nine indicted for Foreclosure fraud

A statewide grand jury in Colorado has indicted nine individuals for targeting distressed homeowners as part of an alleged fraudulent short-sale scheme that allowed the defendants to ultimately defraud the banks and lenders who held the mortgages for the distressed homeowners, officials announced today.

Eight of the nine named defendants are being charged under the Colorado Organized Crime Control Act for a pattern of manipulating homeowners who were facing foreclosure, creating and processing forged and fraudulent documents relating to the properties, and ultimately using these forged documents and other actions to defraud the lenders and subsequent buyers.

The announcement was made by Colorado Attorney General John Suthers; Ronald Sloan, Director of Colorado Bureau of Investigation; Inspector General David Montoya of the U.S. Department of Housing and Urban Development-Office of Inspector General; Acting Inspector General Michael P. Stephens of the U.S. Federal Housing Finance Agency-Office of Inspector General, and Marcia Waters, Division Director of the Colorado Division of Real Estate.

“It is unconscionable that this group would target financially distressed and vulnerable homeowners by fraudulently taking control of and selling their properties, with the ultimate goal of defrauding the homeowners’financial institutions and the subsequent homeowners.” Suthers said.

“Nine indicted for fraud by fraudulently taking control of and selling their properties, with the ultimate goal of defrauding the homeowners’ financial institutions and the subsequent homeowners,” Suthers continued. “This group took advantage of multiple homeowners, using deception and forged documents, to create illegal profits on the sale of various properties.”

The basic premise of the scheme focused on identifying distressed homeowners who were in pre-foreclosure status.

Once a property was zeroed in on by members of this scheme, the goal was to obtain control and ownership over the property through a series of deceptive tactics.

These tactics included manipulating the homeowners to sign over ownership and control of the property to the enterprise. At the same time, the enterprise would file forged paperwork with the lenders misrepresenting that the original homeowners still owned the house. Another tactic used in support of the scheme was the enterprise’s “flopping”of the pre-foreclosed properties.

The Colorado Bureau of Investigation is committed to combating organized white collar crime including schemes such as this short sale mortgage fraud scam,” said CBI Director Ronald Sloan. “While fraudulent schemes continually evolve, we believe active monitoring and investigation, along with aggressive prosecution that holds offenders accountable for their actions, combined with efforts to educate the public, will result in fewer victims in the future.”

“The nine individuals named in this indictment have allegedly committed fraud against individual victims and Fannie Mae and Freddie Mac,” said Acting Inspector General Michael P. Stephens. “This behavior is unacceptable and anyone found guilty will be held accountable to the full extent of the law.”

Wendy Thomas, 42, of Chicago, previously of Thornton; Cristina Nicole Smith, 42, of Thornton, Kurt Smith, 58, of Thornton; Sheila Gaston, 59, of Elizabeth; Sheila Giberti, 46, of Broomfield; Duane Thomas, 44, of Thornton; Christopher Consol, 43, of Englewood; and Janice Gardner, 46, of Brighton, were charged with multiple offenses, including violating the Colorado Organized Crime Control Act. Under COCCA, if convicted, each could be sentenced up to 24 years per count.

 

The best resource available to consumers facing foreclosure, according to the attorney general’s office, is the Colorado Foreclosure Hotline, which can be reached at 1-877-601-HOPE (4673).

 

 

John Marcotte

720-771-9401

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FRIDAY FINANCIALS by Jed Marquis

FRIDAY FINANCIALS by Jed Marquis

 

It’s been a rough couple days for the bond market and interest rates.  The 10 year long bond which appeared ready to headed down towards its 2.45% resistance level and maybe break through has reacted very negatively to the past few economic reports and is now at the highest levels since mid-October.  That being said, the highest level since mid October is still 0.40% BELOW mid September rates.

What’s Happening?

The very optimistic minutes from the FOMC meeting minutes released on Wednesday started the upward trend for interest rates. Yesterday’s Jobless Claims Report came in slightly above expectations and 30,000 above the numbers we were seeing in mid-September.  Continuing Jobless Claims were also up 31,000.  Both of those should be good for rates – more people out of work is not good for the economy. But the mucky nature of the past 2 month’s reports between the computer issues in California and the shutdown have undermined the impact of the news.

Having much more impact were three reports on the business environment.  The ChicagoPurchasing Managers,  PMI Manufacturing Index and the ISM Manufacturing Index all came in above or significantly above expectations, indicating a good jump in the business environment and Chicago seems to be very strong.  All that’s bad for rates.

In speeches from various Fed officials on the future of the bond buying program are very mixed which would seem to indicate no real change in policy.  They have been conflicted since the program started.  The market is taking this news in a pessimistic light and we’ve seen the 10 year bond jump over an eighth of a percent since mid-week.  All that being said, mortgage ratesare sitting in the low 4% range and a month ago we were talking about 5%.

What To Expect

Don’t expect much change until Thursday.  There are few reports due out until Thursday and unless some new information or another Fed governor decides he/she needs some headlines we should stay below the 2.62% threshold on the 10 year and at 4.25% on mortgages.

The Virginia Snitch Law

In 1776, Virginia was the center of civilization for the western world.  In Virginia in 1776, there was freedom of religion, within the parameters that there was no single state sponsored church.  However, you were required to attend a church once per month.  Much of this was for state communication.  There were no predetermined election days.  When an election was needed the governor communicated through announcements from the pulpits, therefore the need to attend church.  Making the knowledge of an upcoming election even more important was the law requiring all white males to vote and in many cases that included planning for the travel to the voting place.

The law requiring you to vote had an interesting provision.  If a resident didn’t vote and another resident turned him in to the authorities, a subpoena would be issued to the non-voter.  If at the hearing for non-voting, it was determined that the non-voting reason was unsatisfactory, the non-voter would be fined 20 schillings.  That’s the cost of violating the law and being found guilty.  BUT the 20 schilling fine was then paid to snitch who turned him in.  An interesting way to induce enforcement of a law.  Just be safe and make sure you vote on Tuesday….or we’ll have to collect our reward.

Have a great weekend. Courtesy of:

Jed Marquis

 

 

John Marcotte

720-771-9401

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The History of Boulder

The History of Boulder

Creek in Boulder, ColoradoThe city of Boulder began as a small mining camp on the banks of what became known as Boulder Creek. The first settlers, a party of prospectors led by Thomas Aikins, reached the mouth of Boulder Canyon in the fall of 1858. They called their campsite “Red Rocks” because of the red sandstone cliffs. Friendly contact was made with Chief Niwot and the Arapahoe tribe. The Cheyennes were also indigenous to the area, while other tribes such as the Utes, Kiowas, Comanches and Sioux were occasional visitors.

In January 1859, gold was discovered at Gold Run, an area west of the present Gold Hill community and approximately 12 miles northwest of Boulder. This gave impetus to the Boulder City Town Company, which was organized in 1859 by A.A. Brookfield (the company’s first president) and 60 shareholders.

Boulder was designated as the county seat in 1867. Boulder was so named because of the many unwieldy rocks the settlers had to clear away from the land before they could construct their cabins.

Native American uprisings and the decline of the nearby gold camps resulted in several hard years for the new community. In 1871, however, the prospects of obtaining a railroad and a university brought Boulder City to life, and the town was incorporated under the Territorial Government. Two years later, both the Colorado Central Railroad and the Denver-Boulder Valley Railroad reached the city. Some of the earliest ordinances were aimed at controlling dogs. The founding fathers also began charging saloons $10 to operate, and they began a tree-planting program—evidence of the city’s long-standing commitment to environmental stewardship.

Mountains in Boulder
Photograph of Boulder by Jon Hatch/Camera

 

 

John Marcotte

720-771-9401

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MID-WEEK MARKETS by Jed Marquis

MID-WEEK MARKETS by Jed Marquis

 

Interest rates are up a slight bit since last Friday on continued stronger than expected manufacturing reports.

What’s Happening?

The 30 year mortgage rate has increased an eighth of a percent since last Friday.  Most of the gain is on low volume and stronger than expected manufacturing data.  Last week we had several stronger than expected manufacturing reports and Tuesday’s ISM Non-Manufacturing Index (yes, a report titled “non-manufacturing” is considered relevant to the manufacturing sector) came in above expectations and we saw a jump in the 10 year treasury but a bigger jump in mortgage rates.  Wednesday we saw buyers step in and start pushing rates back down, again.  The jump was small as we moved from a weak 4.25% to a stronger 4.375% on the 30 year.  The rate increase was more of a rounding factor than a dramatic increase but of course if you’re the home buyer and you get to pay the eighth difference, it matters.

The Mortgage Bankers Association reported that mortgage applications for both purchases and refinances continued to fall with purchase apps being down 5% and refinances down 8%.  Despite a strong decrease in rates from last month and a slight decrease from last week, applications are at their lowest point of the year.  While applications normally taper off during the fall this is far more than expected.

What To Expect

Thursday and Friday hold a number reports that will affect the markets.  Thursday has GDP (an inflation measurement – low inflation is good for rates) and Jobless Claims.  The  market is expecting 335,000 new jobless claims, down 5,000 from last week.  Numbers above that will be good for rates.

Friday has the Employment Situation Report.  The market is expecting about 120,000 non-farm jobs to be created and the unemployment rate to move back up to 7.3% due mostly to the number of available workers in the pool.

Personal Income is expected to be up 0.2% and spending up the same.  The last report for the week is Consumer Sentiment. Consensus is a reading of 75, up 1.8 from last month but well off July’s readings of 85.

It’s hard to read the tea leaves with this much activity and light volume.  The 4.375% rate should be pretty safe and some economic weakness should drop us back to 4.25%.

Jed Marquis

 

 

John Marcotte

720-771-9401

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Inside Supermodel Heidi Klum’s Ho-Hum New SoCal Manse

Ridding herself of the various L.A. mansions she once shared with ex-husbandSeal, supermodel and Project Runway host Heidi Klum recently shelled out$9.875M for some brand new new digs in Bel Air, Calif. Though The Real Estalker calls the new place—custom built by Ed Weinberger, who produced such works as The Cosby Show—a “downsize,” the slightly smaller stature of the 11,000-square-foot, six-bedroom manse is hardly worth losing sleep over. More vexing is the seriously seriously odd design choices at play in the stiff Georgian-style home. Indeed, based on these listing photos, the brick-and-stone pile is a mess of chintzy gold light fixtures, jarring pastel walls, and sparse, yet formal, staging. No doubt the sartorially gifted Klum will work her design magic, but until then, do have a look at the as-is listing photos.

 

John Marcotte

720-771-9401

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Activities & Events in Boulder

 

Activities & Events in Boulder

Many parks, trails, museums and open space areas are closed. Please check individual property pages for more information.

Experience the many recreational and cultural opportunities that will increase your awareness and appreciation of our natural and cultural resources.

Featured

Hikes & Events Calendar

Hikes & Events Calendar

See more details here

 

 

John Marcotte

720-771-9401

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Best September for home contracts

 

Best September for home contracts

YTD closings. Source: Gary Bauer, Metrolist.

YTD closings. Source: Gary Bauer, Metrolist.

You don’t have to tell Lydia Lin that last month was a record September for home sales activity in the Denver area.

Last month, she put about 10 homes under contract in as many days, despite being on vacation for five of those days.

“It’s crazy,” said Lin, owner of One Realty in Denver. “I’ve sold almost 50 homes this year, while in all of last year I sold 32.”

Reports by independent broker Gary Bauer and Metrolist showed 5,337 homes were placed under contract in September, the best September on record.

A total of 4,730 homes were closed, the third best September for closings. Closings reflect homes that were placed under contract in previous months.

Bauer said some Realtors he talked to, like Lin, had a fantastic September, while others saw a steeper than normal decline.

Indeed, while contracts were up 19.7 percent from a September 2012, they were down 16 percent from August, which also was a record, with 6,353 contracts being written.

Closings showed the same trend, falling by 16.1 percent from August, but rose 19.8 percent from August 2012.

Part of the drop was the normal seasonal decline, which likely will continue for the rest of the year, Bauer said.

Lydia Lin

Lydia Lin

“Right now, we’re still seeing a lot of activity in hyper-local neighborhoods like West Highland, LoHi, Berkeley, Sunnyside and other neighborhoods,” Bauer said. “What is happening in Berkeley is just amazing.”

Also, he and others said if the governmental shutdown continues, it also will hurt the market more than normal.

Lin said September started out slow, but picked up in the middle of the month when mortgage rates fell.

“It seems like the last couple of weeks, things are just going kind of gangbusters,” she said.

Falling rates have been key, said Peter Niederman, CEO of Kentwood Real Estate. Read full article here

 

John Marcotte

720-771-9401

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Bank of America faces at trial ex-executive behind whistleblower case

Bank of America faces at trial ex-executive behind whistleblower case

(Reuters) – A former executive at Bank of AmericaCorp’s (BAC.N) Countrywide unit testified Thursday that the mortgage company’s problematic lending practices predated the “Hustle” process for which the bank went on trial this week.

Edward O’Donnell, a former executive vice president at a Countrywide Financial Corp subsidiary, filed a whistleblower lawsuit last year against Bank of America, which bought Countrywide during the financial crisis.

O’Donnell’s lawsuit is the basis of the U.S. Justice Department’s case alleging that Countrywide defrauded mortgage underwriters Fannie Mae and Freddie Mac by selling them mortgages that later defaulted.

O’Donnell, who stands to earn an award if the government wins at trial, was testifying for the government on Thursday, the third day of the trial.

He said he worked at a Countrywide division that handled subprime mortgage loans. When Countrywide tried to move away from that business, a unit of the company making less-risky prime loans was folded into his, he said.

There were instances where loans that unit produced “did not meet our standards and had problems,” he said.

“I saw these instances as problems,” he said. “I wanted greater quality and better control.”

Countrywide later made some changes at his urging, he said.

O’Donnell is expected to continue to testify on Friday about a subsequent Countrywide program called the “High Speed Swim Lane” – also called “HSSL” or “Hustle.” The program, which began in 2007 as mortgage delinquency and default rates were on the rise, circumvented toughening standards at Fannie and Freddie, O’Donnell has said.

The “Hustle” loans caused Fannie and Freddie to suffer a gross loss of $848.2 million and a net loss of $131.2 million on loans that were materially defective, the Justice Department says.

The Justice Department’s case stems from a lawsuit O’Donnell filed under seal in February 2012 under the False Claims Act. The law allows whistleblowers to bring cases on behalf of the government against companies that defraud it.

He worked at Countrywide from 2003 to 2007. In a twist, he today works at Fannie Mae as a vice president of credit risk management, a spokesman for the mortgage giant confirmed.

In his lawsuit, O’Donnell said he frequently objected to the “Hustle” program and sought to take steps that would stop the rapid deterioration in loan quality.

O’Donnell in the lawsuit said his concerns were disregarded and he was marginalized. He “became one often lone voices within the division pointing to the loan quality issues, increase of early payment defaults and growing number of early defaulted loans,” his lawsuit said.

NEW CUSTOMER ACQUISITION GROUP

O’Donnell, who took the stand toward the end of Thursday, only spoke briefly about HSSL, which he will likely discuss most of Friday. But he discussed how another unit of Countrywide called the New Customer Acquisition (NCA) group had problems of its own.

The case is U.S. ex rel. O’Donnell v. Bank of America Corp et al, U.S. District Court, Southern District of New York, No. 12-01422.

(Reporting by Nate Raymond in New York; editing by Andrew Hay)

 

 

John Marcotte

720-771-9401

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