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Tuesday, August 30, 2016

case-shiller-national-house-price-index-increased-5-1-year-over-year-in-june


S&P/Case-Shiller released the monthly Home Price Indices for June (“June” is a 3 month average of April, May and June prices).


This release includes prices for 20 individual cities, two composite indices (for 10 cities and 20 cities) and the monthly National index.


Note: Case-Shiller reports Not Seasonally Adjusted (NSA), I use the SA data for the graphs.


From S&P: Home Price Gains in June Concentrated in South and West According to the S&P CoreLogic Case-Shiller Indices


The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. censusdivisions, reported a 5.1% annual gain in June, unchanged from last month. The 10-City Compositeposted a 4.3% annual increase, down from 4.4% the previous month.The 20-City Composite reporteda year-over-year gain of 5.1%, down from 5.3% in May.



Before seasonal adjustment, the National Index posted a month-over-month gain of 1.0% while boththe 10-City Composite and the 20-City Composite posted a 0.8% increase in June. After seasonaladjustment, the National Index recorded a 0.2% month-over-month increase, and both the 10-CityComposite and 20-City Composite posted 0.1% month-over-month decreases. After seasonaladjustment, nine cities saw prices rise, two cities were unchanged, and nine cities experiencednegative monthly prices changes.

emphasis added


Case-Shiller House Prices IndicesClick on graph for larger image.


The first graph shows the nominal seasonally adjusted Composite 10, Composite 20 and National indices (the Composite 20 was started in January 2000).


The Composite 10 index is off 11.1% from the peak, and down 0.1% in June (SA).


The Composite 20 index is off 9.1% from the peak, and down 0.1% (SA) in June.


The National index is off 2.6% from the peak, and up 0.2% (SA) in June. The National index is up 31.6% from the post-bubble low set in December 2011 (SA).


Case-Shiller House Prices Indices The second graph shows the Year over year change in all three indices.


The Composite 10 SA is up 4.3% compared to June 2015.


The Composite 20 SA is up 5.1% year-over-year.


The National index SA is up 5.1% year-over-year.


Note: According to the data, prices increased in 10 of 20 cities month-over-month seasonally adjusted.


I’ll have more later.







case-shiller-national-house-price-index-increased-5-1-year-over-year-in-june

Airbnb Income: How It Can Mess With Your Mortgage 'Refi' - WSJ - Wall Street Journal


Room-rental services such as Airbnb Inc. are blurring the line between residential and commercial property. That is causing problems for some homeowners looking to refinance mortgages. (Read what Airbnb hosts need to know.)


Big banks including Bank of America Corp. and Wells Fargo & Co. are subjecting some refinance customers who rent rooms to additional scrutiny. Some borrowers have been told they were no longer eligible for…




Airbnb Income: How It Can Mess With Your Mortgage 'Refi' - WSJ - Wall Street Journal

Sunday, August 28, 2016

pwc-settles-5-5-billion-lawsuit-over-taylor-bean-whitaker-audits


The ghost of Taylor, Bean & Whitaker struck again Friday, as PricewaterhouseCoopers agreed to settle a $5.5 billion lawsuit that accused the company of failing in its audits duties by not discovering the accounting malfeasance that led to one of the most spectacular crashes to come out of the housing crisis.


The news of the settlement comes courtesy of Reuters, which reported that the lawsuit stemmed from PwC’s auditing work at Colonial Bank, which provided funding to TBW originate mortgages.





TBW was, at one time, the largest privately held mortgage company in the U.S., employing over 2,000 people. TBW originated, serviced and sold mortgages in pools to Freddie Mac.


Its funding was provided by Colonial Bank and later, by a TBW subsidiary, Ocala Funding.


From 2002 to 2009, TBW chairman Lee Farkas and others swept funds between accounts at Colonial and Ocala to cover constant overdrafts.


By December 2003, the rolling overdraft grew to more than $120 million and sweeping the funds back and forth became too complex, so Farkas and others began selling mortgages that didn’t exist to cover the shortages.


By 2009, Colonial Bank had more than $500 million in nonexistent loans on its books.


According to the Reuters report, the trust that handles TBW’s bankruptcy sued PwC, accusing the company of failing to discover the actions Farkas and his co-conspirators took to cover up the massive fraud.


From Reuters:



The settlement ends a civil trial in Miami-Dade County Circuit Court in Florida in which the trustee had sought more than $5.5 billion in damages from PwC. Terms are confidential, a lawyer for the trustee said.


“It was settled to the mutual satisfaction of the parties,” said Steven Thomas, the trustee’s lawyer.


PwC in a statement confirmed the settlement, using language similar to Thomas. It declined further comment.



This is the second time this year that an auditor settled a case stemming from the ghosts of TBW’s past.


In January, Freddie Mac and Deloitte & Touche reached a settlement over allegations of fraud involving the collapse of TBW, and agreed to dismiss Freddie Mac’s $1.3 billion lawsuit against Deloitte.


Freddie Mac initially sued Deloitte & Touche in 2014, alleging that Deloitte had been “grossly negligent” in its auditing of the financials of Taylor, Bean & Whitaker, which Freddie Mac relied upon as part of its seller/servicer agreement with TBW.


According to court filings, Deloitte served as TBW’s independent auditor from 2002-2007 and was contracted to provide an “unqualified opinion” on TBW’s financial statements and to certify that the financial statements were “free of material misstatement due to error or fraud.”


Freddie Mac accused Deloitte of failing in its duties after TBW collapsed.


For his part, Farkas received a sentence of 30 years in prison in 2011, and was ordered to forfeit $38.5 million in ill-gotten gains for the $2.9 billion scheme after he was found guilty on 14 counts of bank, wire and securities fraud. Six of his co-conspirators also served (or are serving) significant jail time.


For much more on the fall of TBW, click here.




pwc-settles-5-5-billion-lawsuit-over-taylor-bean-whitaker-audits

5-things-to-know-when-buying-a-foreclosed-home

1. Get a realty broker and a lender


The first 2 steps in buying a foreclosure should happen almost simultaneously: Find a real estate broker who works directly with banks that own foreclosed homes and get a preapproval from a lender.


Elaine Zimmerman, a real estate investor and author, recommends that shoppers first visit any site with a database of foreclosed homes. You also could look at a local real estate website that lets you filter the results to see only foreclosures. You might find the acronym REO, which means “real estate owned” (by a bank, that is). This signifies that a home has been through foreclosure and the lender is selling it.


2. Get a broker on your side


The goal of combing through foreclosure listings is not to find a house; it’s to find an agent. Banks usually hire one or a few real estate brokers to handle their REO properties in a market. In a lot of cases, the buyer works directly with the bank’s broker instead of using a buyer’s agent. That way, the commission doesn’t have to be split between 2 brokers.


“A lot of these Realtors have a long-term relationship with these banks, and they know of listings that haven’t even come on the list yet,” Zimmerman says. “Call them about the listings that you’re interested in, but also ask them about listings that may be coming up because sometimes it may take a day or two or even a week before a listing actually comes onto the database.”


Such a request might not always pan out. In places where thousands of foreclosed properties are for sale, you might not get much one-on-one attention from overloaded agents. To prove that you’re serious about buying, says Jensen, “right before or after you meet with the agent, meet with the lender.”


3. Get a preapproval letter


Unless you plan to pay cash, you’ll need a recent preapproval letter from a lender. The letter will describe how much money you can borrow, based upon the lender’s assessment of your credit score and income.


“The problem is, buyers want to find the house first, and then they think they’ll work out the financing,” Jensen says. “But the problem is, the really good deals on these bank-owned, they go quick — and the buyer doesn’t necessarily have time to try to work out the financing afterward. They need to work that out first.”


Couple discussing potential house purchase with agent on background | Hero Images/Getty Images

iStock.com/Feverpitched



Zimmerman says some first-time buyers make the mistake of assuming that the bank selling the home will also finance the mortgage as part of the deal. “Don’t expect to get financing from the bank that foreclosed on it,” she says. “That’s a totally separate transaction, and they view it that way. The people in the (bank’s) REO department are not loan officers. They are getting rid of bad assets.”


Try shopping today for the best mortgage deal on Bankrate.com.


4. Pricing depends on sales pace


There’s no rule of thumb on what the bank’s bottom line is on price. Just as with any other real-estate purchase, you have to look at the recent sales prices of comparable properties, or “comps.”


Jensen says: “You really have to look at the comps in today’s current market conditions and write a competitive offer based on that. Sometimes the bank prices the homes really low, and the home will have multiple offers over list price within hours. Sometimes it’s priced too high, and you can come in lower. A lot of times, buyers will come to me and say, ‘We want to write offers for half price.’ It just doesn’t work that way.”


5. Don’t expect a repair discount


Keep in mind that foreclosed houses generally are sold as-is. That means that you shouldn’t expect to get a discount to compensate for repairs. Jensen says: “Let’s say the house is listed for $200,000, all the comps are $200,000, and so the client comes in and says, ‘Hey, look, I want to buy this house but I’ve got to do paint, carpet and fix some mold damage, so I want to take $15,000 off the price.’ You know what? All the other ones were in the same condition, and they sold for $200,000.”


Jensen further counsels to look at the “absorption rate for your product class.” That means you should find out how quickly comparable houses are selling. In foreclosure, a 3,500-square-foot house with a pool in a gated community might sell within days or hours, whereas more modest homes might sit on the market for weeks. Or vice versa, depending on market conditions.


If homes in your product class are selling swiftly, “the best advice on a bank-owned property is to come in at your highest and best, unless the property has been sitting on the market forever with no activity,” Jensen says. “If you’re going to be upset because you would have gone $5,000 more, but you lost the property, just bid the higher price in the first place.”


Find tradespeople ASAP


Because repairs are almost inevitable with foreclosed houses, Jensen and Zimmerman recommend getting to know tradespeople who can assess and repair damage from pests, mold and leaks. Zimmerman says you should assume that the air conditioning needs to be fixed, and possibly the heating system, too.


It all sounds daunting. But at least you don’t have to wait for the owner to move out of the house.


SEARCH RATES: Get prequalified today with mortgage lenders you’ll find on Bankrate.com.




5-things-to-know-when-buying-a-foreclosed-home

Saturday, August 27, 2016

Fox Film Unit Speeds Up Its Leadership Switch


21st Century Fox‘s (NASDAQ: FOX)(NASDAQ: FOXA) film division is getting its new chairman and CEO ahead of schedule: Prominent longtime movie executive Stacy Snider will take the reins at its Twentieth Century Fox studio effective Sept. 1.


Snider had already been slated to replace Jim Gianopulos, who has been the subsidiary’s chairman and CEO for 16 years, and worked at the studio for a quarter of a century. He was originally to step down from his post when his contract expired on June 30, 2017, shifting into an advisory role at the company. According to Fox, his earlier-than-planned departure is being effected in order to “[allow] for a more immediate transition of leadership.”


Snider is currently Twentieth Century Fox’s co-chairman; upon her ascension, she will drop the “co-” from the title, in addition to becoming CEO. Long seen as one of the most powerful executives in Hollywood, she joined the studio in late 2014. Her prior roles included CEO and co-chairman of DreamWorks Studios; chairman of Universal Pictures; and president of Sony‘s TriStar Pictures. She also served as executive vice president of Guber-Peters Entertainment, which was folded into Sony beginning in 1989.


Gianopulos will not be an easy act to follow. He was at the helm of the studio when it released some of its biggest hits, including Titanic and Avatar. He was also its leader during the most successful years in its history, including 2014, when it broke the all-time global box office record for a studio with $5.5 billion in ticket sales.


Snider is a good candidate to continue, and perhaps build on, this legacy. She is one of the most seasoned, top-level executives in the industry, and has helped bring a host of well-received and/or money-making films to the screen. These include American Pie at Universal, and Jerry Maguire and Philadelphia at Sony.



A secret billion-dollar stock opportunity

The world’s biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn’t miss a beat: There’s a small company that’s powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.



Eric Volkman has no position in any stocks mentioned.




Fox Film Unit Speeds Up Its Leadership Switch

Friday, August 26, 2016

The Fed Rumbles on Rates



Kiplinger’s latest forecast on interest rates


By David PayneSee my bio, plus links to all my recent stories., August 26, 2016






















GDP1.4% growth for the year; a 2% pace in ’17 More »
JobsHiring slowing to 150K-200K/month by end ’16 More »
Interest rates10-year T-notes at 1.4% by end ’16 More »
Inflation1.5% for ’16, 2.5% in ’17 More »
Business spendingFlat in ’16, slight gain in ’17 More »
EnergyCrude oil trading from $40 to $45 per barrel in Sept. More »
HousingPrices up 5% on average in major metro areas More »
Retail sales4% growth in ’16, compared with 4.8% in ’15 (excluding gas) More »
Trade deficitWidening 4% in ’16, after a 6.2% increase in ’15 More »

Recent comments by Federal Reserve Chair Janet Yellen signal a greater willingness to raise interest rates. In fact, though the Fed has cried wolf before, it will likely raise rates at least once this year, either in September or December. (The Fed won’t act on November 2, less than a week before the presidential election.) The only thing that might delay a decision is fresh turmoil once Britain formally declares it is leaving the European Union.



See Also: All Our Economic Outlooks


Even with a rate hike, interest rates will likely stay low and fluctuate within a narrow range for some time to come. Only when inflation shows a stronger upward trend, or when the Fed commits itself to making progress on getting the federal funds rate up to a more “normal” level of 3%, will rates show a sustained upward trend.


In 2017, it seems likely that the Fed will raise the bank prime rate and other short-term rates at least once or twice. The beginnings of upward wage pressure will cause inflation expectations to rise a tad, strengthening the case for slightly higher rates. Also, the Fed thinks it is important to get interest rates some distance from zero before the next recession, so it can cut rates and support the economy at that time. The negative interest rate policy that has been deployed in Europe and Japan will likely never be adopted in the United States.



Advertisement



Look for the Fed to keep replacing maturing securities in its $4.5-trillion portfolio for some time. Since 41% of the portfolio is in mortgage-backed securities, delaying the move to stop replacement should keep mortgage rates low this year and next.


By the end of 2016, we see the 10-year Treasury note rate at 1.4% if the Brexit trigger has been pulled, just below where it is now. By the end of 2017, it should rise a tad to about 1.8%. Expect the average 30-year fixed-rate mortgage to edge up to only 3.7% by the end of 2017, with 15-year rates below that.


Source: Federal Reserve, Open Market Committee






The Fed Rumbles on Rates

Company fined $900000 for using unlicensed offshore companies to service mortgage loans in state - seattlepi.com (blog)


moneyOcwen Loan Servicing has agreed pay a fine of $900,000 and stop using offshore unlicensed affiliate companies to manage mortgage loan for Washington residents.








OLS is a company currently licensed with the Washington State Department of Financial Institutions as a consumer loan company that is authorized to service residential mortgage loans in the state. However, OLS used unlicensed affiliate companies in the Philippines and India to perform activities considered residential mortgage loan servicing under Washington law.


The unlicensed servicing activities occurred at the affiliate in India dating back to Aug. 1, 2010, and at Philippines affiliate at least between June 2013 and August 2015, the department found.


Under the settlement, OLS agreed to pay a $900,000 fine and to only service Washington residential mortgage loans through licensed companies.


For more information for boomer consumers, see my blog The Survive and Thrive Boomer Guide.





Company fined $900000 for using unlicensed offshore companies to service mortgage loans in state - seattlepi.com (blog)

Wednesday, August 24, 2016

Most College Students Pay Credit Card Bills in Full Each Month


ATLANTA, Aug. 24, 2016 /PRNewswire/ — Nearly 70 percent of college students have one or more credit cards, and a slightly higher percentage pay off their own balances in full each month, according to a recent survey conducted by Equifax. While the survey shows many college students are practicing responsible credit behavior, they are also less likely to take advantage of free credit reports.


2016 Equifax College Student Survey

In anticipation of the back-to-school season, Equifax commissioned a blind survey of more than 600 American college students between the ages of 18 to 24, also referred as Generation Z. The survey found that fewer than half (43 percent) of respondents had actually checked their credit scores, while 62 percent of respondents indicated they knew they could receive a free copy of their credit reports.


“We’re talking about a generation that has subtle, but meaningful differences from its Millennial predecessors,” said
Melanie Wing, vice president of Customer Insights at Equifax. “We wanted to peer inside this consumer group, understand their relationship with credit, and attempt to prevent what we’re seeing with Millennials – many of whom are plagued with record levels of student loan debt and an inability to successfully achieve their financial goals.


“We saw this survey as the beginning of a unique opportunity Equifax has to help Generation Z understand how credit works, and the long-term impact it can have with life milestones such as renting a home, buying a car, and getting a job,” she added.


The survey found that the majority of respondents who had credit cards actively use them for a variety of purchases. In fact, only 16 percent of respondents said they relegate credit card usage to emergencies only. The good news is Generation Z is not racking up unpaid credit card debt at high rates: 72 percent of the survey respondents said they paid off their credit card balances each month, and 18 percent responded their parents paid off their balances each month.


The majority of survey respondents (59 percent) who do not pay off credit card balances each month, plan to do so within a year.


Simultaneously, survey respondents were somewhat informed about the factors that may impact their creditworthiness. When selecting factors that may impact credit scores, survey respondents accurately selected:


  • Paying bills on time (73 percent)

  • Amount owed on credit cards/loans (66 percent)

  • Types of credit cards/loans (59 percent)

  • Length of credit history (55 percent)

  • Opening a credit account (51 percent)

When selecting factors that may impact credit scores, students inaccurately selected:


  • Being denied credit (40 percent)

  • Interest rate of credit cards/loans (37 percent)

  • Personally checking your credit report (22 percent)

  • Participation in credit counselling (14 percent)

  • Changes in hourly pay or salary (11 percent)

  • Driving record (10 percent)

  • Gender (2 percent)

“This survey provided us with the feedback we had hoped: That this generation, despite being bombarded by information from a variety of sources, is developing credit-smart behavior early on,” Wing added. “However, we firmly believe ongoing education; appropriate tools and resources; and a thorough understanding of the implications that today’s financial decisions can have on tomorrow’s milestones are keys to a positive experience with credit.”


For the purposes of this survey, Equifax commissioned a blind survey of U.S. college students in June 2016. The margin of error for this survey is plus or minus 4 percent.


About Equifax
Equifax powers the financial future of individuals and organizations around the world. Using the combined strength of unique trusted data, technology and innovative analytics, Equifax has grown from a consumer credit company into a leading provider of insights and knowledge that helps its customers make informed decisions. The company organizes, assimilates and analyzes data on more than 820 million consumers and more than 91 million businesses worldwide, and its databases include employee data contributed from more than 5,000 employers.


Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,200 employees worldwide.


Some noteworthy achievements for the company include: Ranked 13 on the American Banker FinTech Forward list (2015); named a Top Technology Provider on the FinTech 100 list (2004-2015); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2015); named one of Fortune’s World’s Most Admired Companies (2011-2015); named one of Forbes’ World’s 100 Most Innovative Companies (2015). For more information, visit www.equifax.com.


2016 Equifax College Student Survey


Equifax Inc. logo.

Photo – http://photos.prnewswire.com/prnh/20160823/400606

Photo – http://photos.prnewswire.com/prnh/20160823/400605

Logo – http://photos.prnewswire.com/prnh/20060224/CLF037LOGO


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/most-college-students-pay-credit-card-bills-in-full-each-month-300317254.html


SOURCE Equifax Inc.




Most College Students Pay Credit Card Bills in Full Each Month

new-high-for-u-s-home-values-is-it-time-to-buy


FHFA Home Price Index HPI June 2016

Low Rates, Easier Qualification Lift Home Values


U.S. home values have continued to rise, pushing home prices to new, all-time highs, non-adjusted for inflation.


The Home Price Index, which is published by the Federal Housing Finance Agency (FHFA), shows U.S. property values up another 0.2 percent in June.


It marks the 31st consecutive month during which home values have climbed and, nationwide, valuations have increased 5.6% from a year ago.


Home values now sit at a healthy five percent above 2007 peak levels.


With home values up, existing homeowners are refinancing to take cash out, and others are using their newfound equity to cancel FHA mortgage insurance.


The rise in home valuation is spurring U.S. home sales, too, with renters worried about “missing out” on today’s active market. Homes are expected to get more expensive into 2017, pushed up by a prolonged season of ultra-low mortgage rates.


This is creating an urgency to buy homes.


Thankfully, there is an abundance of low- and no-down payment mortgages, including a program available from most lenders called HomeReady™.


HomeReady™ allows for just 3% down.


It’s an excellent time to be a buyer. Mortgage rates are low, home values are projected to rise, and banks are approving more mortgage applications than during any period this decade.


Click to see today’s rates (Aug 24th, 2016)


Home Price Index Solidly Above 2007 Highs


The FHFA Home Price Index is a product of the Federal Home Finance Agency (FHFA). It tracks changes in the value of a home between subsequent sales. Data is supplied via Fannie Mae and Freddie Mac as part of the mortgage approval process.


The Home Price Index (HPI) is benchmarked to a value of 100, which is meant to represent the U.S. housing market as it existed in 1991, the year in which the index was created.


In June 2016, the Home Price Index climbed to 234.8, a 0.2 percent increase from the month prior and a 5.6% increase from the year-ago levels.


It’s also the highest published reading of all-time on a non-adjusted basis, eclipsing last decade’s peak which was set in April 2007.


The rebound suggests that housing has made a “full recovery” from last decade’s downturn — but today’s active buyers already knew that.


Homes have been selling more rapidly than in prior months and at higher prices.


Bidding wars are common with aggressively-priced homes. In many U.S. markets, it’s not usual to see homes sell above their initial list price.


Additionally, the National Association of Home Builders (NAHB) reports an influx of buyer interest, which has foot traffic through model units near its highest point in a decade. Because of these factors, home values are expected to climb in the coming months.


The good news is that mortgage rates are currently cheap.


Freddie Mac’s weekly mortgage rate data puts the average 30-year conventional fixed-rate mortgage near the lowest levels of the last 3 years; and rates for FHA and VA mortgage rates are quoted even lower.


FHA mortgage rates typically run 12.5 basis points (0.125%) below rates for a comparable conventional loan, and VA mortgage rates typically out lower by 25 basis points (0.25%).


You can afford “more home” when mortgage rates are down.


Click to see today’s rates (Aug 24th, 2016)


Western U.S. Leads Home Price Growth


The FHFA Home Price Index is up more than five percent from one year ago nationwide. State-by-state, the story’s a little bit different.


Not all areas are expanding at the same growth rate.


What’s happening in California, for example, is not the same as what’s happening in Florida. The Home Price Index doesn’t address state-level activity in this manner.


It does, however, group values by region.


As compared to one year ago, the Mountain region is leading the nation, rising 8.6% from the year prior. The Pacific region is a close second, at a 7.4% increase.


Annually, home price growth has varied by region:


  • Pacific : +7.4% (Hawaii, Alaska, Washington, Oregon, California)

  • Mountain : +8.6% (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona)

  • Middle Atlantic : +3.2% (New York, New Jersey, Pennsylvania)

  • East North Central : +4.1% (Michigan, Wisconsin, Illinois, Indiana, Ohio)

  • South Atlantic : +6.8% (Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida)

New England, an area which includes Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut, has changed +1.8 percent since twelve months ago.


The West North, which includes Oklahoma, Arkansas, Texas, and Louisiana, rose +5.1%.


What Are Today’s Mortgage Rates?


Home values are rising sharply, but the cost of homeownership is not. This is because mortgage rates are low, and lenders are approving more loans than during any period this decade.


Take a look at today’s live rates now. Rates are available with no social security number required to get started, and with instant access to your “mortgage credit scores.”


Click to see today’s rates (Aug 24th, 2016)



The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.






new-high-for-u-s-home-values-is-it-time-to-buy

Ex-Fannie Mae CEO Mudd Settles SEC Lawsuit for $100,000


Daniel Mudd ended a five-year fight with the U.S. government Monday after the former head of Fannie Mae agreed to pay $100,000 to settle allegations that he misled investors about the mortgage backer’s exposure to subprime loans during the run-up to the financial crisis.




Ex-Fannie Mae CEO Mudd Settles SEC Lawsuit for $100,000

Tuesday, August 23, 2016

California Assembly Approves Survivor's Rights Bill


The California State Assembly approved legislation Monday that would expand the rights of a deceased homeowner’s surviving loved ones, including widows, widowers and other heirs.




California Assembly Approves Survivor's Rights Bill

made-in-baltimore-staffing-your-makerspace















Building a great team is critical to any business, and startups in particular. People are the absolute core of any makerspace, and that foundation starts with a smart, diligent, self-driven staff. Before coming on to the Open Works project, I didn’t have a lot of experience in hiring – mostly just lower-skilled workers on construction jobs that I managed. Those interviews were cursory, and the work was relatively straightforward. That had seemed easy enough, so I (naively) assumed the Open Works hiring process would be similar. After all, we have a well-publicized project that people are eager to get involved with – I figured we’d get tons of applicants!



Well, I was right about one thing – we got tons of applicants – but I was wrong about most everything else. Hiring is super-hard. It’s even more difficult when you can’t pay a lot of money and are a location-dependent business in a smaller, second-tier city. Hiring is such a pain point that is has spawned a whole set of side businesses, from corporate headhunters to LinkedIn, designed to attract and retain talent. But these solutions have failed to solve some of the fundamental problems in the tech industry, including a staggering lack of diversity.


As a tech-forward space in a majority African-American city, building a diverse and representative staff was top of mind as we entered the hiring process. Another critical component was finding folks that had a balance of both hard technical skills and the soft social skills. Lots of people may know the tech, but having the patience, resilience, and wisdom to teach beginners how to use it is another skillset entirely. Last, we needed self-motivated folks that could handle a fast-paced startup environment without a lot of direct guidance. To balance those needs, we utilized a few simple strategies:


Remove college degree as a requirement for consideration


At first, all of our job description drafts started with something like “degree in engineering, math, architecture, or computer science required.” We quickly realized that putting a degree as a pre-requisite was an barrier to a lot of smart, talented people. People that have worked in trades, gone to vocational school, earned associate’s degrees, or gotten industry certifications have the same skillsets, especially in fast-moving fields.


Push job postings out widely


Our core postings were on idealist.org, which is for jobs in the nonprofit sector and seemed like a natural fit for our mission. From there, we posted on our own website, social media, email lists for local organizations, and Craigslist. Over the last two years of development, I had met a great deal of people, and tried to take the time to email many of them personally.

We also worked in partnership with organizations to fill several positions and expand our reach. Baltimore Corps is a new social enterprise dedicated to building a new generation of leaders in Baltimore City, and we worked with them to hire for the Open Works Mobile Coordinator position. Maryland Out of School Time (MOST) has been working in the STEM education realm in Baltimore for quite some time, and they are the sponsor organization for an AmeriCorps VISTA volunteer who will be starting with us in the fall. We are also grateful to several of our partner organizations, including the Station North Tool Library and the Maryland Institute College of Art (MICA) that passed terrific candidates along to us.


Interview a lot of people


You never know who might be the right fit, and the only real way to figure that out is to sit down and talk with them. Many times, someone’s resume doesn’t really represent a lot of wonderful things about their personality or presence.


Interview by committee


We put candidates in front of a lot of people – a first pass with 2-3 folks, and a second pass with 2-3 more from our board and senior leadership team. I can’t emphasize this enough – when power is concentrated with one or two people, there is too much opportunity for biases to creep into the decision. Studies have shown that people often hire people like themselves, which leads to a damaging homogeneity and tends to freeze out women and people of color. Developing a hiring committee with diverse experience and viewpoints helps knock down those biases and arrive at a global consensus about the most qualified individual.


Ask the right questions


As a startup, we don’t have a lot of systems in place yet. As a manager, I was asking folks to create these systems from whole cloth. To figure out if someone was ready for that type of challenge, I asked people to explain projects they had started from scratch. I also asked people to explain a time they had reached for a goal and failed. People tend to answer in one of two ways: they either blame it on externalities, or they take personal responsibility. It told me a lot about someone’s work ethic and approach to failure. Open Works will hit some failure points, some sooner than others, and we need folks who can brush it off, salvage the good, discard the bad, and push forward.


We still have a long way to go – we are interviewing for part-time teachers now, and are slowly expanding our pool of techs and volunteers. We have a terrific team in place, but I am also conscious that we have a ways to go to make Open Works truly representative of Baltimore City. The critical thing is to know that and move towards it every day with thoughtful, conscious decisions.


So, without further ado, I wanted to introduce our staff in their own words:


C. Harvey

C. Harvey. Photo by Jazzy Studios



C. Harvey, Open Works Mobile Coordinator


C. is a Baltimore born and raised maker, emerging entrepreneur, and the founder of Generation of Dreamers and Baltimore’s Gifted. She is currently Open Works’ Mobile Coordinator and passionate about touching the community. C. is a Baltimore Corps Fellow and a Young Cultural Innovators Fellow. She holds an A.A.S in Computer Aided Drafting and Design from CCBC and briefly studied Engineering Technology at Temple.


Kisha Webster. Photo by Kisha Webster

Kisha L. Webster. Photo by Kisha Webster



Kisha L. Webster, Community and Education AmeriCorps VISTA


Kisha is a native of Newark, NJ and has lived and worked in Baltimore since 2002. She is an educator and community advocate who lives by the African proverb, “I am because we are.” She focuses on community collaboration which has led her to take on a number of volunteer opportunities and leadership roles. Kisha received her Bachelor of Arts in Secondary Education at Delaware State University and a Master of Science in Educational Leadership at Trinity University in Washington, DC.


Cindy Paradies

Cindy Paradies. Photo by Jazzy Studios



Cindy Paradies, Coordinator, Fundraising and Workforce Initiatives


Cindy has been working in the community development field for most of her professional life – her experience ranges from financing and development of real estate projects to supporting workforce development initiatives and creating community programming that is responsive to lots of folks. She’s passionate about making Open Works a space that is truly “of the community”!


Catie Buhler

Catie Buhler. Photo by Catie Buhler.



Catie Buhler, Digital Operations Technician


Catie received her BFA from Maryland Institute College of Art where she studied Interdisciplinary Sculpture, and specialized in Digital Fabrication. During her time as an undergraduate she worked as an intern at two Baltimore nonprofits, Whitelock Community Farm and Baltimore Electric Vehicle Initiative. Currently, she makes up one half of the art + design collective, abcb.


Lawrence Moore. Photo by Lawrence Moore

Lawrence Moore. Photo by Lawrence Moore.



Lawrence Moore, Manual Operations Technician


Lawrence is a native New Yorker, and earned a B.A. in Human Service from the University at Buffalo. He is passionate about a few things; education, sports, rollerskating, and woodworking. He is looking forward to learning metal working at Open Works.


Hannah Wides

Hannah Wides. Photo by Jazzy Studios



Hannah Wides, Manual Operations Manager


Hannah received a BFA from Cooper Union and studied woodcarving at its sister school in Japan, Kyoto Seika University. She has a certificate in woodworking and furniture design from Yestermorrow Design/Build School in Vermont. Her work history includes sculpting, timber framing, woodworking education, and freelance furniture making. Most recently, she co-founded Baltimore Women’s Maker Collective, a social network and general resource for woman-identifying and non-binary creative entrepreneurs and artists.


Harrison Tyler

Harrison Tyler. Photo by Jazzy Studios



Harrison Tyler, Digital Operations Manager


Harrison Tyler is an artist and designer with a BFA in Interdisciplinary Sculpture from the Maryland Institute College of Art. He is co-founder of Jimmi, a design firm fostering innovation in digital fabrication through the designing and building of 3D printing tools and educational experiences.


April Lewis

April Danielle Lewis. Photo by Jazzy Studios



April Danielle Lewis, Membership Manager


April comes to Open Works with a diverse range of work and volunteer experience. She is an artist, organizer, curator, and community cultivator. In 2009 April earned a B.S. in Art + Design with a concentration in printmaking from Towson University and an A.A. in Visual Art from Anne Arundel Community College in 2006.


Laura Cohen. Photo by Jazzy Studios

Laura Cohen. Photo by Jazzy Studios



Laura Cohen, Education Manager


Laura is a community artist, organizer, advocate, teaching artist and Education Manager at Open Works. She has her B.S in Art Education from the University of Vermont, holds a Master of Arts in Community Arts degree from the Maryland Institute College of Art, is a licensed arts educator and has been creating, managing, facilitating and collaborating on projects and programs that bring the joy, skill development, increased self-esteem and community building of high quality arts programming to communities in Baltimore City since 2007.


Will Holman. Photo by Jazzy Studios

Will Holman. Photo by Jazzy Studios



Will Holman, General Manager


Will studied architecture at Virginia Tech and Auburn University’s Rural Studio. Over the last 10 years, he has worked all over the United States on affordable and sustainable housing, design education, creative placemaking, and social justice. His personal and professional practice has been focused on making the tools, techniques, and products of design accessible to everyone. He is the co-founder of the Industrial Arts Collective and author of Guerilla Furniture Design. You can find his design work documented on Instructables and available for download on OpenDesk. You can find more of his writing at Bmore Art, Design Observer, Places Journal, and Make: Magazine.


The Great Unboxing of tools continues. Photo by Will Holman

The Great Unboxing of tools continues. Photo by Will Holman.



Half of the upstairs micro-studios in place. Photo by Will HolmanJPG

Half of the upstairs micro-studios in place. Photo by Will Holman.



Beginning to set up micro-studios. Photo by Will Holman

Beginning to set up micro-studios. Photo by Will Holman.



Construction Update


Since the last post, we have:


1. Finished the last major piece of construction – replacing asphalt in the loading dock area.


2. Got our Use and Occupancy permit!


3. Started setting up micro-studio spaces.


4. Continued unboxing all of our tools.





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