HBA Newswatch
February 19, 2008
WALL STREET TAKING SUBPRIME BLAME
REGULATORS ZEROING IN ON WHAT FIRMS KNEW ABOUT MORTGAGE RISKS
By MARK JEWELL, AP Business Writer
BOSTON — Regulators are trying to punish Wall Street for mortgage finance practices that expanded home ownership and spread risk among a host of new players — but also may have duped borrowers and investors who supplied cash to fuel a housing boom that’s turned bust.
A handful of state securities regulators and a couple foreclosure-blighted cities have fired the opening shots with lawsuits trying to prove that investment banks and big lenders are guilty of more than just bad business decisions and failing to foresee looming mortgage troubles. Some regulators say greed and fraud underlie much of the subprime mortgage mess that has spread across the broader housing market, triggering a spike in foreclosures.
Aside from the civil cases, the FBI is looking at possible criminal action, focusing on what Wall Street firms knew about the risks of mortgage securities backed by subprime loans, and whether they hid risks from investors.
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MEDIA PLANNERS WANT MORE DETAILS FOR BALTIMORE AVENUE BUILDING
By Susan L Serbin
Media Planning Commissioners were close to final approval for a block-long development on East Baltimore Avenue. However, at the Feb. 5 meeting, the seven members present unanimously decided to follow board member Emily Miller's cautious approach to request a "clean" submission with all outstanding details completed.Commonwealth Real Estate Investors, an arm of Media Real Estate, has proposed a three-story, retail and office building on Baltimore Avenue between Manchester Avenue and Radnor Street. A three-story parking garage is on a lot to the south separated by Worrall Street, a borough-owned, narrow alleyway, which the applicant would widen.
Planners repeated an interest in favor of the borough vacating Worrall Street so that CREI can create one lot and link the garage to the building with a pedestrian bridge. Needed setback relief for the bridge, part of the original scheme, was denied by the Zoning Hearing Board.
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SPRINGFIELD MALL REDEVELOPMENT PLANS ADVANCE
By Susan L. Serbin
Springfield Planning CommissionTownship planners had their next look at redevelopment of Springfield Mall. The application came with a great deal of enthusiasm from representatives of Pennsylvania Real Estate Investment Trust (PREIT).
Planning Chairman Frank Gorgone started the Feb. 8 meeting by saying it would end by 10 p.m. That gave PREIT Executive Vice President Joseph Coradino and the project team time to get started on details of a significant overhaul which planners had seen in concept form last November.
"PREIT is s strong presence in the region doing quality redevelopment. We are going to transform Springfield Mall," said Coradino.
PRIET's holdings and projects have included Cherry Hill, Moorestown, Plymouth Meeting and Willow Grove Park malls in the Delaware Valley. Coradino said the company has about a half-billion dollars in capital invested in the projects.
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55+ COALITION PUTS HEAT ON LEGISLATION
Residents from six adult (55+) communities in Delaware County have joined together to form a non-partisan coalition to advocate for this growing industry. Presently, there are in excess of 3,000 resident members. They expect this to grow to about 5,000 as their communities develop further. The Coalition's Steering Committee has taken a strong stand on the issue of school property tax reform because it impacts Pennsylvanians of all ages. The Coalition has reviewed all of the proposed property tax reform bills that are being considered, and supports HB 1275, "The School Property Tax Elimination Act."
The Coalition is urging that the bill, co-sponsored by 44 legislators, be brought from t he Appropriations Committee, to the full House for debate and vote. To date the House leadership has refused to do so, instead permitted only an amendment to HB 1600. More...
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