Federal rule to ensure appraisal data for homebuyers

WASHINGTON — A new federal rule could give millions of homebuyers insights they've never had before about a crucial element of their mortgage application: the appraisal, including the electronic cross-checks and reviews now used by lenders to determine the amount of the loan they'll approve.

The new rule also will give buyers the time and ammunition to challenge appraisals they suspect contain errors. Starting this weekend (Jan. 18), lenders nationwide will be required to inform mortgage applicants that they can receive a free copy of whatever appraisals, reviews, computer valuations and other data are used in the transaction. You'll be entitled to see this material "promptly" after the appraisal report is completed, or three days before your loan closes, whichever is earlier. The lender will have to inform you of your new rights within three business days after receipt of your mortgage application.

This contrasts with the current system, where lenders don't have to provide you a copy of the appraisal unless you request it. The additional valuation data — which may include follow-up review appraisals by a second appraiser, multiple "automated" valuations and "broker price opinions" provided at low cost by realty agents — currently are not subject to disclosure, even though they may have played a role in the final decision on your loan.

Now everything will be mandatory. You've got to be provided any significant information that was integral to the valuation of the property, even if you had no idea it existed and didn't ask to see it.

The new rule implements changes to the Equal Credit Opportunity Act made by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. It will be overseen by the Consumer Financial Protection Bureau. Unlike earlier rules, the disclosure requirements will be limited to mortgages that are first liens on a home, including reverse mortgages and construction loans. If you're applying for a second mortgage or second-lien home equity credit line, the bank will not have to provide you appraisal materials, although you are still free to ask.

So what might this mean to you in practical terms? Potentially plenty. Say your appraiser works for a management firm that uses low-cost, inexperienced appraisers. By chance it turns out that your appraiser lives 80 miles away and is not familiar with local real estate trends. Then the valuation comes in low because the appraiser used inappropriate "comparable" properties, including a house that sold at a depressed price because the owners were in financial distress.

Under the new rule, your lender will have to send you a copy of the full appraisal report, soon after receiving and reviewing it, including exhibits and attachments. Alerted early on, you, your realty agent and other advisers should have time to spot errors and then challenge the validity of the appraisal and demand corrections.

Among the questions you might ask: Why did the appraiser select one or more comparables that bear minimal resemblance — lot size, square footage of the house, age, location, view, interior improvements — to the house you're buying? Why were the physical dimensions of the property inaccurately measured? Why did the appraiser add no extra valuation credit for the solar panels on the roof and the extensive energy-conserving equipment throughout the house? Why didn't an underwriter or review appraiser hired by the lender flag foul-ups like these?

For their part, experienced appraisers generally welcome the new mandatory transparency for consumers. Some of them have fought for years against lender overreliance on poorly trained appraisers who receive only a modest portion of the $450 to $500 that lenders charge consumers at settlement. The rest goes to the management company and some portion may be pocketed by the lender itself.

"I am thrilled," said Pat Turner, a senior residential appraiser in the Richmond, Va., area, "to have my appraisal stuck beside an "automated valuation" or a broker price opinion," which will now be mandatory. "Let everyone see the clear distinction of time, effort, expertise and accuracy of a truly professional appraisal."

00.52 | 0 komentar | Read More

Chestnut Hill attracts hip Back Bay shops

Newbury Street has long been the marquee address for posh brands to make their Boston debut. But lately a stretch of Boylston Street in Chestnut Hill is giving the Back Bay a run for its money with a slew of chic retailers opening new, bigger spaces.

The Street, 55 Boylston St.

Jonathan Adler

Slated to open in March, the new boutique is twice as big as the brand's original store on Newbury (2,600 square feet). The full collection of home decor from the offbeat designer will be available.

Exclusive Chestnut Hill perk: Custom-designed rugs, pillows and throws — and if none of Adler's fabrics suit your fancy, bring in your own for a fully personalized creation. jonathanadler.com

Skoah

Stylize blogger Peter Dziedzic just opened his third outpost of Canadian "skin care gym" Skoah. After expanding to Newbury Street last year, the Chestnut Hill location rounds out the trifecta of prestigious Boston addresses. The 1,007-square-foot space has three treatment rooms and a brow bar.

Exclusive Chestnut Hill perk: Find a sink in the product area — you can try on a product, rinse off and try again!

Intermix

Intermix's Newbury Street store is already a haven for fashionistas to try on designer duds (the shop is a favorite of Bruins wives, including Krista Ference). The 2,000-square-foot Chestnut Hill store opened in mid-November to rave reviews.

Exclusive Chestnut Hill perk: The buyers tailor their merchandise to the neighborhood, so expect to find a preppy-chic mix of items from designers such as Rag & Bone, Yigal Azrouel, Helmut Lang and more.

200 Boylston St.

Equinox

Boston's best-looking folks are already members of this luxe health club, which has locations in the Financial District and Back Bay. But when the new 33,000-square-foot club opened last month, city gym rats got a reason to trek out to the 'burbs for the signature classes, the spa and the shop stocked with Kiehl's products.

Exclusive Chestnut Hill perk: The gym is home to the company's first-ever barre studio.

Sweetgreen

Two Georgetown University grads united in 2007 to open an affordable, sustainable, healthy salad eatery that would actually, you know ... taste good. Last year the pair opened a spot on the other Boylston Street in Back Bay, and now they make the move to Chestnut Hill later this spring.

Exclusive Chestnut Hill perk: The storefront has a retractable front wall (at 20 feet tall!) that will open for outdoor seating in warmer months.

00.52 | 0 komentar | Read More

Bangladesh reporters held for 'fabricating' story

DHAKA, Bangladesh — A court in Bangladesh has ordered three journalists held in detention on charges of publishing a false story that alleged Indian security forces had joined Bangladeshi troops in a crackdown before the recent controversial elections.

Information Minister Hasanul Huq Inu said Friday that the report by the Bengali-language Inqilab daily was baseless, and the newspaper used a doctored email and fax message to back it up.

Police on Friday arrested news editor Rabiullah Rabi, deputy chief reporter Rafiq Mohammad and diplomatic correspondent Ahmed Atique, after raiding their office on Thursday night.

Prime Minister Sheikh Hasina returned to power in a landslide victory Jan. 5, but the vote was marred by violence, a boycott by the main opposition party and low turnout.

00.52 | 0 komentar | Read More

Mass. casino hopefuls to make pitches

BOSTON — The three companies hoping to operate the first resort casinos in Massachusetts are getting a chance to make direct pitches to the state gambling commission.

MGM Resorts International, Mohegan Sun and Wynn Resorts are scheduled to each make 90-minute presentations to the panel on Wednesday.

MGM has proposed a casino in downtown Springfield and is the only remaining applicant for the western Massachusetts casino license.

Mohegan Sun wants to build a casino in Revere, if voters there approve a Feb. 25 referendum. The company would be competing for the sole eastern Massachusetts casino license with Wynn, which has proposed a facility in Everett.

All three firms have filed thousands of pages of documents with the five-member commission, which hopes to make decisions and award the licenses in May.

00.52 | 0 komentar | Read More

Mass., toll workers reach labor deal

BOSTON — Massachusetts transportation officials say they have struck a three-year labor deal that provides pay raises worth $24 million to 410 toll workers and couriers whose jobs will be eliminated by 2016.

The Massachusetts Department of Transportation says the tentative deal saves $50 million annually and clears the way for the installation of a new electronic tolling system along the Massachusetts Turnpike, the Tobin Bridge, as well as the Ted Williams and Sumner/Callahan Tunnels.

Drivers will no longer be able to stop at a toll booth and pay cash for their toll.

Instead, tolls will be collected electronically through a driver's E-ZPass transponder or by a new system which allows a camera to record a license plate number and send the registered owner of the car a bill through the mail.

Workers must ratify the new labor deal.

00.52 | 0 komentar | Read More

De Blasio expands NYC paid sick leave law

NEW YORK — New York City Mayor Bill de Blasio touted an expansion of the city's paid sick leave law Friday, the first legislative accomplishment of his administration and a muscular display of the new, left-leaning government running the nation's largest city.

More than half a million New Yorkers will receive paid sick days thanks to the bill, which will be fast-tracked through the City Council. The new speaker of the council, Melissa Mark-Viverito, stood with de Blasio outside a Brooklyn restaurant to announce the legislation, long a dream of liberal politicians and activists, but her presence seemed indicative of more.

Mark-Viverito is the liberal de Blasio's ideological match and a partner at the controls of government. She leads a council that largely shares de Blasio's beliefs and appears poised to rubber-stamp much of his agenda, a sharp contrast between the often contentious relationship between the council and the previous mayor, Michael Bloomberg.

Mark-Viverito, who was elected speaker last week by her council colleagues, is a longtime ally of de Blasio. The mayor took the unusual step of lobbying council members to choose her, a practice that some critics felt undermined the government's system of checks-and-balances.

De Blasio made it clear that on this issue, the mayor and the council were speaking with one voice.

"This City Hall is going be on the side of working families all over this city," he said. "We're going to work hard and we're going to work together — both sides of City Hall — to make sure that this will be one city where everyone rises together."

The winding history of the paid sick legislation, which was first discussed more than four years ago, offers a window into the changed relationship between council and mayor. Bloomberg, a Republican-turned-independent who held pro-business policies, opposed the paid sick legislation for fears that it would burden small businesses. He pressured then-Speaker Christine Quinn, a sometimes ally, to stall the legislation over the cries of several elected officials.

One of those was de Blasio, then the public advocate, who turned paid sick days into a campaign issue in last year's mayoral race. Under intense pressure from the left during the Democratic primary that she was also running in, Quinn eventually caved, offering a watered-down version of the bill that mandated that businesses with 15 or more employees offer at least five sick days a year.

That bill was to go into effect in April. It will now be superseded by the new legislation, which will be introduced at a council meeting next week and is assured of passage. The new bill requires businesses that employ more than five workers to offer the same five sick days a year to be used if the employee or a family member falls ill.

The expansion also removes exemptions for the manufacturing sector, eliminates a provision that would have allowed some businesses to not offer coverage until 2015 and gets rid of measures that could have stalled the implantation of sick days based on certain citywide economic benchmarks. The new law would bring New York closer in line to cities that already have paid sick days legislation, like Seattle and San Francisco.

"Under this legislation, the lives of over a half-million New Yorkers will be immeasurably better," de Blasio said outside a restaurant in the Bushwick neighborhood. "Families will be stronger and more stable because they will have paid sick leave coverage."

Some small businesses have feared that having to pay employees for sick days would produce an economic hardship. A leading business group, the Partnership for New York City, offered a measured endorsement of de Blasio's plan.

"Our hope is that these amendments to the current law will expand protection to more workers who need it, but avoid undue hardship on employers," said Kathy Wylde, head of the organization.

00.52 | 0 komentar | Read More

Tech industry: Obama's NSA reforms 'insufficient'

SAN FRANCISCO — Technology companies and industry groups took President Barack Obama's speech on U.S. surveillance as a step in the right direction, but chided him for not embracing more dramatic reforms to protect people's privacy and the economic interests of American companies that generate most of their revenue overseas.

"The president's speech was empathetic, balanced and thoughtful, but insufficient to meet the real needs of our globally connected world and a free Internet," said Ed Black, president of the Computer & Communications Industry Association, a group that represents Google, Microsoft, Facebook and other technology companies upset about the NSA's broad surveillance of online communications.

On Friday, the president called for ending the government's control of phone data from hundreds of millions of Americans and ordered intelligence agencies to get a court's permission before accessing such records. He also issued a directive that intelligence-gathering can't be employed to suppress criticism of the United States or provide a competitive advantage to U.S. companies.

In addition, the president directed Attorney General Eric Holder and Director of National Intelligence James Clapper to consider whether new privacy safeguards could be added to online data gathering. Although those activities are only meant to target people outside the U.S. as part of national security investigations, information on Americans sometimes gets swept up in the collection.

Eight of the world's best-known technology companies underscored their common interest in curbing the NSA by releasing a joint, measured critique of Obama's proposal. They applauded the commitment to more transparency and more privacy protections for non-U.S. citizens, but also stressed that the president didn't address all their concerns.

"Additional steps are needed on other important issues, so we'll continue to work with the administration and Congress to keep the momentum going and advocate for reforms consistent with the principles we outlined in December," said the statement from Google, Apple, Yahoo, Microsoft, Facebook, Twitter, LinkedIn and AOL.

In his speech, Obama also directed Holder and Clapper to look into new restrictions on the length of time the U.S. can hold data collected overseas and the extent to which that data is used. He added that the U.S. won't spy on regular people who don't threaten national security.

But nothing he said is likely to diminish the potential losses facing the U.S. technology industry, said Daniel Castro, a senior analyst for the Information Technology and Innovation Foundation, a Washington D.C. think tank.

The ITIF estimates that the doubts raised by the NSA spying could cost U.S. companies as much as $35 billion over the next three years.

In the aftermath of recent NSA leaks, the companies set aside their competitive differences to come together and urge Obama to curtail the NSA's online snooping and lift restrictions that prevent companies from publicly disclosing specifics about how frequently they are asked to turn over their users' personal information in the name of national security.

Obama did agree to at least one major concession to the technology industry by pledging "to make public more information than ever before about the orders they have received to provide data to the government." The companies are hoping greater transparency will show that the U.S. government has only been demanding information about a very small fraction of their vast audiences.

But the promise of more disclosure didn't satisfy two different groups focused on online privacy and other digital rights.

"Far more needs to be done to restore the faith of the American people and repair the damage done globally to the U.S. reputation as a defender of human rights on the Internet," said Greg Nojeim, senior counsel at the Center for Democracy & Technology.

Cindy Cohn, legal director for the Electronic Frontier Foundation believes there's still a long way to go. "Now it's up to the courts, Congress, and the public to ensure that real reform happens, including stopping all bulk surveillance — not just telephone records collection," she said.

Recent revelations about how much information the U.S. government has been vacuuming off the Internet threaten to undercut the future profits of technology companies that depend on the trust of Web surfers and corporate customers.

U.S. Internet companies are worried that more people, especially those living outside the U.S., will use their products less frequently if they believe their personal data is being scooped up and stored by the U.S. government.

Less online traffic would result in fewer opportunities to sell the ads that bring in most of the revenue at companies such as Google, Facebook and Yahoo. There is also concern that foreigners will be reluctant to do business with a wide range of U.S. companies that sell online storage and software applications that require an Internet connection.

Obama's proposal made "progress on the privacy side, but it doesn't address the economic issues," Castro said. "I don't see anything in the speech that will prevent companies in other countries from using what the NSA is doing to gain a competitive advantage over the U.S. companies."

__

Ortutay reported from New York.

00.52 | 0 komentar | Read More

AP: Borgata ends fake chip-tainted NJ poker match

ATLANTIC CITY, N.J. — Saying they have confirmed that one or more people used "a significant number of counterfeit chips" at an Atlantic City poker tournament, state casino regulators on Saturday canceled the tainted match and ordered all prize money frozen until an investigation is complete.

The New Jersey Division of Gaming Enforcement canceled the first event of the Borgata Winter Poker Open. It had suspended the game Friday after suspicions about the use of fake chips arose.

No charges have been filed in the case.

"Thus far, investigators have found that one or more tournament entrants improperly introduced a significant number of counterfeit chips into the tournament, gaining an unfair advantage and compromising the integrity of play for the event," Tom Ballance, the Borgata's president and chief operating officer said Saturday.

"It is extremely unfortunate that the criminal actions of these individuals can have a detrimental impact on more than 4,000 other entrants," he said. "We fully understand and regret the disappointment this cancellation causes our valued customers, and we will work diligently with DGE investigators to resolve the situation as quickly as possible. The integrity of our games and the confidence of our players is of the utmost importance to us."

Ballance said the Borgata has thoroughly examined its remaining stock of chips, which were cleared by investigators for use in dozens of other events in the poker tournament, which will be played as scheduled.

It was not immediately clear what would happen with the entrance fees paid by people who participated in the tainted match. The Borgata said the state ordered "that all unpaid prize money be held in trust until more details and resolution can be determined."

New Jersey State Police said Saturday the investigation is ongoing and that no arrests had been made.

The event under scrutiny is the tournament's Big Stack, No Limit Hold 'Em event. It began on Tuesday and had a $560 buy-in. There were 27 people remaining in the contest when play was suspended.

Joe Lupo, the casino's senior vice president, said concerns arose during play Thursday night. The tournament was scheduled to resume at noon on Friday, but he said it was suspended before that could happen. He would not say what raised concerns about the integrity of the game, saying it was part of the ongoing investigation.

Customers wanting to participate in the tournament go to a registration area at the Borgata, pay the $560 entry fee, and go to a table, where they are given 20,000 chips to use in the poker games. By sneaking fake chips onto the table or otherwise introducing them into the game, a cheating player would benefit by having more chips than he or she had paid for, and is able to last longer in the game. The tables are watched by multiple security cameras, but casino and state officials would not discuss what, if any, evidence they have uncovered of cheating during the games.

The 18-day series of tournaments is a regular feature at the Borgata. The casino's website said the championship event, which starts Sunday, Jan. 26., would include a $3 million prize guarantee.

The investigation does not involve Internet gambling, which began late last year and which the Borgata has dominated in the early going.

___

Wayne Parry can be reached at http://twitter.com/WayneParryAC

00.52 | 0 komentar | Read More

Boston company Global Rescue guarding U.S. skiers at Sochi

The U.S. Ski and Snowboard Association is relying on a Boston company to get its team members out of a tight spot in the event of a terrorist attack or other crisis at next month's Winter Olympics in Sochi, Russia.

"When something does happen, it's our personnel who are going to respond," said Dan Richards, CEO of Global Rescue. "We're helping them prepare for not only medical but security (services)."

A company that describes itself as "AAA for your body," Global Rescue has been providing medical services for USSA for eight years, but will be bulking up to deal with any potential security concerns during the Sochi games.

They will have "up to a half dozen aircraft" to assist with medical and security-related evacuations, the company said.

"A disruption will involve hundreds of thousands of people wanting to go from one place to another," Richards said of a terrorist attack. "We have created plans that would create a mechanism for doing that."

Global Rescue's security team, made up of Special Forces veterans, has been involved in the 2006 Winter Olympics in Turin, Italy, and 2010 Winter Olympics in Vancouver, Canada, as well as other major crises, including the Arab Spring and the Fukushima earthquake, but Sochi is unique, Richards said.

"You've got this challenging environment and you've got this geo-political environment," Richards said.

Global Rescue's plans include taking into account the mountains that surround Sochi, and the Black Sea to the west of the city, he said.

"Global Rescue is a great company and we've had a long and productive relationship," USSA spokesman Tom Kelly said in an email. He declined to answer questions regarding security or "any details of our relationship."

U.S. Olympic team officials did not return calls for comment.

Concerns over the safety of the Games have increased in recent weeks, due to an ongoing conflict between Islamic insurgents and Russian security forces in the North Caucasus region, roughly 340 miles from Sochi. A rebel leader has called on his followers to attack the Winter Olympics.

Mark Galeotti, an NYU professor and Russian security expert, said the chances of an attack are higher because of the political dynamic in Russia.

"The games have become such a pet project of (Russian President Vladimir) Putin's. Frankly, the insurgents would suffer a major blow to their morale and credibility if they didn't try to hit the games, whether directly or indirectly," Galeotti said.

Galeotti said he believes Russian authorities — who have committed as many as 63,000 police and military and $2 billion to increase security — will deter a direct attack on the Olympics.

"The greatest risk is probably in other southern Russian cities," Galeotti said. "I doubt the Olympic teams ought to have any special concerns."

00.52 | 0 komentar | Read More

Postal Service, union wrangle over Staples outlets

WASHINGTON — The opening of Postal Service retail centers in dozens of Staples stores around the country is being met with threats of protests and boycotts by the agency's unions.

The new outlets are staffed by Staples employees, not postal workers, and labor officials say that move replaces good-paying union jobs with low-wage, nonunion workers.

"It's a direct assault on our jobs and on public postal services," said Mark Dimondstein, president of the 200,000-member American Postal Workers Union.

The dispute comes as the financially struggling Postal Service continues to form partnerships with private companies, and looks to cut costs and boost revenues. The deal with Staples began as a pilot program in November at 84 stores in California, Georgia, Massachusetts and Pennsylvania as a way make it easier for customers to buy stamps, send packages or use Priority and certified mail.

Postmaster General Patrick Donahoe said the program has nothing to do with privatization and everything to do with customer service and driving up demand for the agency's products.

"The privatization discussion is a ruse," Donahoe said in an interview. "We have no interest in privatizing the Postal Service. We are looking to grow our business to provide customer convenience to postal products."

Staples spokeswoman Carrie McElwee referred questions about union concerns to the Postal Service. She said the company "continually tests new products and services to better meet the needs of our customers."

Union leaders fear that if the Staples program is successful, the Postal Service will want to expand it to more than 1,500 of the company's other stores. That could siphon work and customers away from nearby brick-and-mortar post offices, taking jobs from postal workers and even leading traditional post offices to close.

Union leaders have been visiting Staples stores to meet with managers, asking them to share the union's displeasure with upper management.

Dimondstein asked to meet with the Staples CEO Ronald Sargent, who has declined.

The union plans to hold "sustained" protests this month at Staples stores in the San Francisco and San Jose, Calif., area that would be expanded elsewhere. Union officials also are considering how they can exert pressure on Staples shareholders.

"If Staples insists on continuing to refuse to staff those stores with postal workers, we're going to urge people to take their business elsewhere," Dimondstein said.

The union says it's not asking to shut down the program. It wants the counters to be run by postal employees, not workers hired by Staples. The average postal clerk earns about $25 an hour, according to the union, plus a generous package of health and retirement benefits. The Staples post office counters are run by nonunion workers often making little more than the minimum wage.

The Postal Service increasingly has looked to work with the private sector to help increase business. In November, it announced a lucrative deal with Amazon to begin package delivery on Sunday.

The agency has struggled for years with declining mail volume, but the lion's share of its financial plight stems from a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments. The Postal Service lost $5 billion over the past year, though operating revenue rose 1.2 percent.

So far, the Postal Service has rebuffed the union's demands.

As far as who will staff the counters, "that's Staples' business. They make their own business decisions and it has nothing to do with us," Donahoe said.

Donahoe said he'd like to see post office counters in every Staples store "as soon as possible." But he doesn't see them as replacing any of the 33,000 traditional post offices. He said he sees the program as an opportunity "to grow the business."

James O'Rourke, a professor of management at the University of Notre Dame, said the Postal Service is simply following the trend of other businesses such as banks and medical clinics opening in grocery and drug stores to get more customers and save overhead costs.

"You can't blame the union for looking suspiciously at this move, but from the perspective of postal management and postal customers, this is all good," O'Rourke said.

Donahoe acknowledged that it could save money in employee costs, but insisted that is not the agency's motivating force. Since 2008, the Postal Service has reduced its employees by more than 200,000, mainly through attrition.

"Keeping our expenses down is no different than what any other business would do," he said.

Back in 1988, the Postal Service tried a similar plan to put retail units in Sears stores in Chicago and Madison, Wis. APWU members picketed Sears headquarters in Chicago, mailed thousands of letters of protest to then Sears Chairman Ed Brennan and even cut up their Sears credit cards.

The pressure worked and a year later the program ended, with Sears saying it did not want to be at the center of a dispute between the Postal Service and the union. But the APWU's membership now is almost half of what it was 25 years ago, and unions don't carry the same clout they once did.

Dimondstein, who took the helm of his union in November and pledges a more activist approach, insists his members will bring considerable pressure on Staples.

"I think we have a lot of clout," he said. "We're in every hamlet, town, city and state in the country."

___

Follow Sam Hananel at www.twitter.com/SamHananelAP

00.52 | 0 komentar | Read More