Justice Department sues Quicken over mortgages

New York • The Justice Department is suing Quicken Loans, saying the lender approved hundreds of mortgage loans that didn't meet federal standards, leaving the government stuck with the bill when borrowers defaulted.

The U.S. Department of Justice said Thursday that between September 2007 and December 2011, Quicken approved, underwrote, and certified the insurance of hundreds of mortgages that didn't meet federal guidelines.

It said Quicken encouraged its employees to disregard Federal Housing Administration rules and say that mortgages met the guidelines when they did not. Quicken sometimes asked appraisers to inflate the value of homes so it could approve the loans, and managers sometimes let underwriters break 

The loans were insured by the U.S. Department of Housing and Urban Development, and Quicken filed for reimbursement when the loans defaulted. According to the Justice Department, HUD has already paid millions of dollars in claims on the loans Quicken underwrote, and there could be more claims coming.

In a statement, Quicken said the FHA's own reporting ranks it as the highest-quality large FHA lender — meaning it has the lowest default rate. It also said its FHA-backed mortgages make large profits for the government. The company described the lawsuit as "abusive" and the government's investigation as a "witch hunt."

Quicken sued the federal government Friday, saying it had done nothing wrong and that the government was trying to get it to admit wrongdoing and pay big penalties for political reasons. The company says it is the second-largest mortgage lender in the U.S. and the largest lender of loans guaranteed by the FHA. It says it was notified about a government investigation three years ago.

The Detroit-based company was a direct endorsement lender approved by the FHA, which meant FHA and HUD did not review the loans before the FHA insured them.

see more: http://www.sltrib.com/home/2436050-155/justice-department-sues-quicken-over-mortgages

2 consulting firms to help decide fate of I-195 land

PROVIDENCE, R.I.

The Rhode Island Commerce Corporation has approved the contracting of two consulting firms to help decide the future of the vacant Interstate 195 land in Providence.

One firm will consider the highest and best use for the land available for development. The other will advise and counsel government officials on a request from the Pawtucket Red Sox to construct a new minor league baseball stadium.

Owners are requesting $120 million from the state over 30 years for a lease-sublease arrangement, along with no city property taxes for 30 years and rents of about $1 a year.

Officials say they expect the consultants' work to be completed by the end of summer.

The consultants could receive up to $150,000 each for their work.

Read more here: http://www.charlotteobserver.com/news/business/national-business/article19181589.html

U.S. Mortgage Application Volume Falls

 The average number of mortgage applications for the week ended Friday fell 2.3% from the previous week, according to a survey by the Mortgage Bankers Association.

The seasonally adjusted purchase index, which a week earlier reached its highest level since July 2013, fell 3% in the most recent period. The unadjusted purchase index fell 2% from the previous week and was 7% higher than the year-ago period, the MBA said.

The refinance share of mortgage activity ticked up to 58% of total applications, from 57% the previous week.

The adjustable-rate mortgage share fell to 5.4% of total applications.

The average rate on 30-year, fixed-rate mortgages with conforming loans--with balances up to $417,000--rose to 3.87% from 3.86% the previous week.

Rates on 30-year, fixed-rate mortgages with jumbo-loan balances--more than $417,000--rose to 3.84% from 3.81% a week earlier.

The average rate for 30-year, fixed-rate mortgages backed by the Federal Housing Administration fell to 3.67% from 3.69%.

The average rate for 15-year, fixed-rate mortgages rose to 3.16% from 3.15% a week earlier.

Read more: http://www.nasdaq.com/article/us-mortgage-application-volume-falls-20150415-00241

Polarizing methods, superior results found at NYC's largest charter school network

NEW YORK » At most schools, if a child is flailing academically, it is treated as a private matter.

But at Success Academy Harlem 4, one boy's struggles were there for all to see: On two colored charts in the hallway, where the students' performance on weekly spelling and math quizzes was tracked, his name was at the bottom, in a red zone denoting that he was below grade level.

The boy, a fourth-grader, had been in the red zone for months. His teacher, Kristin Jones, 23, had held meetings with his mother, where the teacher spread out all the weekly class newsletters from the year, in which the charts were reproduced. If he studied, he could pass the spelling quizzes, Jones said — he just was not trying. But the boy got increasingly frustrated, and some weeks Jones had to stop herself from looking over his shoulder during the quizzes so she would not get upset by his continued mistakes.

Then, one Friday in December, she peeked at his paper, and a smile spread over her face. After he handed in his quiz, she announced to the class that he had gotten a 90. "I might start crying right now," she said, only half-joking. "I've got to call your mom."

In its devotion to accountability, Success Academy, New York City's polarizing charter school network, may have no peer.

Though it serves primarily poor, mostly black and Hispanic students, Success is a testing dynamo, outscoring schools in many wealthy suburbs, let alone their urban counterparts. In New York City last year, 29 percent of public school students passed the state reading tests, and 35 percent passed the math tests. At Success schools, the corresponding percentages were 64 and 94 percent.

Those kinds of numbers have helped Success, led by Eva S. Moskowitz, expand to become the city's largest charter network. By next year Moskowitz, known for her attention-grabbing rallies and skirmishes with the teachers' union and Mayor Bill de Blasio, will have 43 schools; a proposal by Gov. Andrew M. Cuomo could get her closer to her goal of 100. That would give Success more schools than Buffalo, the state's second-largest district.

In a rare look inside the network, including visits to several schools and interviews with dozens of current and former employees, The New York Times chronicled a system driven by the relentless pursuit of better results, one that can be exhilarating for teachers and students who keep up with its demands and agonizing for those who do not.

Rules are explicit and expectations precise. Students must sit with hands clasped and eyes following the speaker; reading passages must be neatly annotated with a main idea.

Incentives are offered, such as candy for good behavior, and Nerf guns and basketballs for high scores on practice tests. For those deemed not trying hard enough, there is "effort academy," which is part detention, part study hall.

see more http://www.staradvertiser.com/news/nyt/19040101_Polarizing_methods_superior_results_found_at_NYCs_largest_charter_school_network.html?id=298862751

Five things to consider when hiring a consulting firm

Here are five things your company should consider if you're planning to hire a consulting firm

1. Do their capabilities fit my needs?

Understanding the capabilities a consulting firm has to offer is a key component in selecting the right person or organization to help you meet your strategic goals. When choosing consultants, it is important to understand the industry and subject matter expertise they will bring to your organization and how they complement your own internal resources. A consultant should have the relevant technical and industry experience and qualifications to either fill a capabilities gap or augment a team.

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2. Ability to link business and technical concepts to goals

Developing people, process and technology solutions for clients cannot happen in a vacuum. Rather, successful consultants must first understand their clients’ strategies, culture, business processes and goals (both short- and long-term). In an age when technology and best practices are evolving faster than ever, the ability to conceptualize a client issue and quickly develop or adjust an approach to meet the need for long-term optimization is vital.

3. Local delivery with national expertise

A local presence is critical to establishing a strong rapport with clients. Consultants should be able to deliver projects locally, but understand when to draw upon subject matter experts from outside their location to successfully execute engagements. You should feel comfortable that the folks on the ground have the ability to call in other experts should the need arise.

4. Cultural fit

Ensuring your culture matches your consulting firm’s is important. Do you share the same principles and ways of doing business? Will personalities mesh well? You should feel comfortable that the consulting firm is a good fit based on relationships, as well as technical matters. The right consulting firm should be able to convey technical concepts to nontechnical executives in an easy-to-understand manner. A successful consulting relationship should motivate your employees by extending their capabilities and focusing on career mentorship.

see more http://www.bizjournals.com/boston/feature/5-things/2015/04/five-things-to-consider-when-hiring-a-consulting.html

Did 'Get Hard' Get It Right? A Real Look At Prison Consulting

Will Farrell and Kevin Hart star in the movie ‘Get Hard,‘ which premiered last week.  Farrell plays a convicted white-collar criminal who is facing a decade in San Quentin State Prison.  To prepare for prison, Farrell reaches out to Hart who is cast as a hard working, struggling, owner of a car wash business looking for a break in life.  That break comes when Farrell asks Hart to coach him about surviving prison.  I went to the movie last Friday (Research) to get my own take and found it funny, entertaining, and much different than the prison experience I had known.  For the record, I’m not a good person to rely upon for movie recommendations as my favorites are flicks like Tommy Boy, Happy Gilmore and The Blues Brothers.

While the film is a comedy I will give it a break on the accuracy of its portrayal of prison life.  However, when the FBI (federal) busts a white-collar criminal, the resulting punishment will be that the offender goes to a federal prison, not state.  In Get Hard, the main character was being sentenced to San Quentin (A California State Prison).  They should have consulted me on that to get it right.

In reality, there are a number of prison consultants who prepare people for their upcoming prison stay.  They charge anywhere from $1,000, gets you some compassion and an overview of prison, to $20,000, the platinum package that caters to big time white collar felons.  One of those is Obie Chambers, who has a consulting practice based in Charlotte, NC called The Exigency Group.  His clients include recently indicted drug offenders and white-collar criminals who are facing terms in federal prison.  Chambers’ experience comes from his own 20-month prison term on marijuana distribution charges, which he completed in 2014.  Fresh off of his experience, he is serving up advice to those heading to federal prison.

read more: http://www.forbes.com/sites/walterpavlo/2015/03/31/did-get-hard-get-it-right-a-real-look-at-prison-consulting/