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Vol. 12, No. 18, May 4, 2011
Government Update—Commercial/General
• Federal Reserve Maintains Record-Low Interest Rate
• TARP Inspector General: More than 550 Banks Still Owe Bailout Funds
Government Update—Residential
• Servicing Wrongs Could Force Banks to Take Big Losses on FHA Loans
• Fannie, Freddie Align Servicing Guidelines for Delinquent Mortgages
In the States
• Fannie Mae, Minnesota Home Ownership Center Help Homeowners
• Nine Indicted in $3 Million Florida Mortgage Fraud Scheme
• Appraiser, Others Sentenced in North Carolina Mortgage Fraud Case
Around the Industry—Market Trends
• Citi Cutting Production Jobs, Hiring in Servicing
• Cheaper to Buy than Rent in 78 Percent of Major Cities: Trulia
• Rental Vacancy Rates Increase, Homeowner Housing Falls: Commerce
• NAR: Pending Home Sales Index Increases Again
• Refinances Push Mortgage Application Activity: MBA Survey
• NAHB Economist Cuts 2011 Single-Family Housing Prediction
Around the Industry—Financial News
• Concern Increases over Underwater Home Equity Loans
• Pimco Protests Proposed Failed-Trade Penalty for Mortgage Bonds
• CMBS Delinquencies Continue to Climb, Led by Lodging: Trepp
• Slow Housing Recovery Leads to Dim Outlook on Banks, Says IRA
• Freddie Mac: Economic, Housing Reports Spur Drop in Mortgage Rates
Around the Industry—Industry Insider
• CoStar to Acquire LoopNet This Year
• Appraisal Organizations Offer Assistance to State AGs, Consumer Bureau
• ANO Enhances Current, Archived Online Issues
• Appraisal Quality Control Increasingly Important, Says New AI Boo
Inside the Institute
• Appraisal Institute Designates 24 Members in April
• AI Honors Two Members as “Volunteer of Distinction” in May
• AI in the News: AI Spotlighted as Source for Finding ‘Green’ Appraisers
Economic Indicators – March 2011
550 W. Van Buren St., Suite 1000, Chicago, IL 60607 | T 312-335-4100 F 312-335-4400 | www.appraisalinstitute.org
Government Update – Commercial/General
Federal Reserve Maintains Record-Low Interest Rate
In the first-ever news conference in the history of the Federal Reserve, Chairman Ben Bernanke on April
27 announced its benchmark interest rate – in the range of zero to 0.25 percent – will remain in force. In
addition, he reassured the public the bond-buying program will end in June as planned.
The Fed’s interest rate has remained at an all-time low since December 2008. Bernanke pledged to
maintain the record-low rate until job growth accelerates and the nation’s economic recovery is robust,
Bloomberg reported.
The Fed is characterizing the economic recovery as progressing at “a moderate pace,” and has lowered
its forecast for the recovery, according to Bloomberg’s report. While the job market is improving gradually,
price increases in energy, gas and food will “have only a passing inflationary impact,” Bernanke predicted.
As far as economic recovery goes, he said “conditions are far from where we would like them to be.” He
characterized an 8.8 percent national unemployment rate, high gas prices and an increase in foreclosures
as “a terrible combination” and admitted he understood “a lot of people are having a very tough time.” "It
is very hard to blame the American public for being impatient," he concluded.
Nonetheless, Bernanke said there is little he can do to bring down gas prices. The Wall Street Journal
reported prices have increased because of concerns about oil supplies in the Middle East and demands
from fast-growing developing economies.
Responding to the current conditions, the Fed raised its inflation forecasts just before the news
conference, according to the Journal. In January, officials expected 1.3 percent to 1.7 percent inflation in
2011. The rates have now increased to 2.1 percent to 2.8 percent, mainly due to high gas prices.
However, the Fed does expect inflation to drop back below 2 percent in 2012 and 2013.
Bernanke predicted the end of the Fed's $600 billion bond-buying program will not have a "significant"
effect on financial markets or the economy, Bloomberg reported.
The Fed first announced the bond-buying program in November 2008 as an attempt to fight the then-
worsening financial crisis, according to the Journal. The program remained active until March 2009, when
it expired. However, it resumed in November when the economy seemed to lose momentum.
Fed officials believe the multiple rounds of purchases — known as quantitative easing — helped to
improve financial conditions, lift the economy and fight off the threat of deflation, according to the Journal.
The latest round was accompanied by a soaring stock market and falling unemployment.
With regard to the Fed’s first press conference, American Banker reported that Bernanke will continue to
look for ways to become more transparent and more accountable. He said he believes in providing as
much information as possible to help the public and the markets understand how the Fed functions.
Financial markets, particularly riskier assets such as stocks and commodities, rose in response to the
Fed’s announcement and Bernanke's news conference. The Dow Jones Industrial Average rose 95.59
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points, or 0.76 percent to 12690.96, with the bulk of the gains coming after the Fed released its policy
statement at 12:30 p.m., about two hours before the press conference began. Gold prices jumped 0.91
percent to $1,516.70 an ounce, while silver surged 2.01 percent to $45.9640 an ounce, according to the
Journal.
TARP Inspector General: More than 550 Banks Still Owe Bailout Funds
More than 550 banks owe an estimated $146 billion in repayments to the Treasury Department as of the
end of March for bailout funds they received through the Troubled Asset Relief Program, the Special
Inspector General of TARP said in its quarterly report released April 28.
Despite the Congressional Budget Office lowering its estimate of TARP's eventual cost in March to $19
billion, the Special Inspector General’s report said that the success of the program depends on severable
variables that are currently unknown.
"TARP’s financial outlook is improving, with more institutions repaying TARP and cost estimates
continuing to decline," the report said. "Nevertheless, it bears repeating that Treasury’s ultimate return on
its TARP investments depends on many variables that are largely unknowable at this time."
However, the report criticized TARP’s underwhelming performance in preventing foreclosures. According
to the Special Inspector General, the Home Affordable Modification Program remains plagued with
problems. As of the end of February, only 633,000 permanent modifications have occurred, far short from
the program’s original goal of between 3 million and 4 million.
"Many of these problems relate to the structure of the program, which puts the ultimate decision to modify
a mortgage in the hands of mortgage servicers, whose performance has been extraordinarily poor," the
report noted.
Although TARP expired in October 2010, of the $474.8 billion initially allocated to the program, $58.9
billion remains available. "Congress understood that TARP might last for many years, and that oversight
would be essential throughout TARP’s existence," the report said. "In other words, SIGTARP will remain
'on watch' as long as TARP assets remain outstanding."
The report also stated that it expects more criminal charges against individuals and entities related to the
bailouts.
To read the report, go to
www.sigtarp.gov/reports/congress/2011/April2011_Quarterly_Report_to_Congress.pdf.
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Government Update – Residential
Servicing Wrongs Could Force Banks to Take Big Losses on FHA Loans
Banks may be left holding the bag on delinquent mortgages if they haven’t followed all the rules for loss
prevention before foreclosing on Federal Housing Administration loans. According to an April 28 article in
American Banker, non-compliant banks may not be reimbursed for billions of dollars of delinquent FHA-
insured loans.
Even though the nation’s largest banks have said they expect reimbursement, they may not receive it if
they have violated servicing standards.
At the end of 2010, Bank of America Corp. held $16.8 billion of loans insured by the FHA and the
Department of Veterans Affairs that were 90 days or more past due. Wells Fargo & Co. had $14.7 billion,
Citigroup Inc. had $9.3 billion and JPMorgan Chase & Co. held $8.7 billion, according to American
Banker.
Most delinquent loans are still being worked out or are stuck somewhere in the foreclosure process,
according to American Banker. The FHA pays claims only when a loan has gone into foreclosure and the
property has been conveyed back to FHA.
Banks can be penalized up to three times the amount of any FHA insurance claim if they have not offered
loss-prevention options to defaulted borrowers. The average claim submitted in 2010 was $167,782.
Therefore, banks could face up to $500,000 in penalties for each claim if they have not provided loss-
prevention options to the borrower.
Brian Chappelle, a partner in a consulting firm in Washington, D.C. and a former HUD official, told
American Banker that lenders are uneasy filing claims while threats of penalties exist. “Lenders are really
at a loss as to when the insurance stops and their responsibility starts,” he said.
American Banker reports that many banks have delayed submitting claims until they fully comply with
consent orders issued by the Office of the Comptroller of the Currency earlier this year. The order
mandates an “overhaul of serving operations” and a third-party review of foreclosure for the past two
years.
Industry experts expect a significant portion of penalties assessed on the largest banks will be paid to
HUD for failing to extend appropriation loss mitigation options on delinquent loans. Some of the large
banks are already in negotiations with FHA to avoid huge penalties, according to American Banker.
In the past two years, as delinquencies on FHA and VA-insured loans have risen, banks have been
aggressive in buying delinquent loans from the Government National Mortgage Association, or Ginnie
Mae. Funding delinquent loans on their balance sheets is cheaper than making regular principal and
interest payments to bond investors, according to American Banker.
Most banks classify delinquent FHA loans as 90 days past due and still accruing interest, which some
experts say is distorting bank earnings and overstating profitability.
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Rebel Cole, a finance and real estate professor at DePaul University in Chicago and a former Federal
Reserve Board economist, told American Banker the majority of the loans should be listed as
nonperforming because reimbursement is not guaranteed. He said banks should not be accruing interest
on the loans and should charge them off after 180 days.
"There is no certainty of reimbursement on these loans, but it's showing up as paper profits," Cole said.
"FHA isn't recognizing the losses, and the banks aren't recognizing the losses, and they're all complaining
about the deadbeat borrowers that they are not kicking out of their houses."
Fannie, Freddie Align Servicing Guidelines for Delinquent Mortgages
The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to align guidelines
associated with servicing delinquent mortgages that they own and guarantee, according to an April 28
news release from the federal agency.
The initiative is intended to deal with identified problems in mortgage servicing, FHFA said. The updated
framework is expected to streamline borrower outreach, align mortgage modification terms and
requirements, and establish a performance-based incentive program for servicers that perform well.
“FHFA’s directive to align Enterprise policies for servicing delinquent mortgages should result in earlier
servicer engagement to identify the best solution available for homeowners, given their individual
circumstances,” FHFA Acting Director Edward DeMarco said in the release. “Once fully implemented by
the servicing industry, the Enterprises’ aligned policies should give homeowners a greater understanding
of the process and faster resolution by requiring earlier contact, more frequent communication and
prompt decisions.”
The agency also is calling on servicers to contact borrowers as soon as they become delinquent to focus
solely on remediating the discrepancy. As outlined in FHFA’s directive, the foreclosure process may not
begin if the borrower and servicer are engaged in a good-faith effort to resolve the delinquency.
Both government-sponsored enterprises are expected to release detailed guidelines to loan servicers in
either the second or the third quarter of 2011.
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In the States
Fannie Mae, Minnesota Home Ownership Center Help Homeowners
A newly-formed alliance between Fannie Mae and the Minnesota Home Ownership Center will benefit
homeowners in that state who are struggling to make mortgage payments. According to an April 28
HousingWire.com article, Minnesota ranked 24th in the U.S. for foreclosures in the first quarter of 2011.
Homeowners in Minnesota receive free advice on their mortgages by experienced foreclosure prevention
counselors who are members of the Minnesota Homeownership Center’s Advisors Network, according to
an April 27 news release issued by Fannie Mae.
The counseling program has been set up for Fannie Mae customers and will increase the response time
in determining if there are options to avoid foreclosure. Once homeowners have met with the center’s
counselors, the counselors work directly with Fannie Mae staff to reach an affordable resolution for the
homeowner.
The skills and knowledge of the Minnesota Home Ownership Center’s counseling network will be put to
work for homeowners as a way to avoid foreclosure and get responses more quickly from Fannie Mae,
Jeff Hayward, senior vice president of Fannie Mae’s National Servicing Organization, told
HousingWire.com. .
Homeowners are more likely to avoid foreclosure if they have access to information and are able to
receive quick responses about alternative measures for their mortgage situation, said Julie Gugin,
executive director of the Minnesota Home Ownership Center. She added that involving the mortgage
counselor at the beginning of this process streamlines and simplifies the operation for struggling
homeowners.
These services are only for those who have a mortgage held by Fannie Mae.
Nine Indicted in $3 Million Florida Mortgage Fraud Scheme
Nine people were charged in the three separate indictments for their alleged roles in a mortgage fraud
scheme in South Florida, according to an April 28 HousingWire article.
The U.S. attorney's office indicted Carl Alexander, 45, of Parkland, Fla.; Carol Asbury, 59, an attorney
from Lake Worth, Fla.; Patrick Brinson, 34, of Miami; David Lam, 42, of Parkland, Fla.; David Miller, 43, of
Miramar, Fla.; Godfrey Myles, 42, a former professional football player from Miami; Michael Samuda, 38,
an attorney from Weston, Fla.; Thomas Thelusma, 40, a firefighter from Miami; and Victoria Wilson, 30, a
mortgage broker from Hollywood, Fla.
The nine were accused of inflating mortgages for lender cost estimates while using straw buyers to
purchase high end homes at lower costs. The cost differences were reported as either profit to sellers or
as debts owed to business entities, and the schemes resulted in more than $3 million in fraudulent loan
proceeds, the article reported.
According to an April 28 post on the Mortgage Fraud Blog, each of the three indictments included not only
charges of mortgage fraud, but associated charges of mail and wire fraud, conspiracy and false
6 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
statements. If convicted, the defendants face a maximum statutory sentence of 20 years in prison for the
mail and wire fraud conspiracy, 20 years in prison for each of the mail and wire fraud counts, 20 years in
prison for the money laundering conspiracies, ten years in prison for each of the money laundering
counts, and five years in prison for each of the false statement charges, the post noted.
Appraiser, Others Sentenced in North Carolina Mortgage Fraud Case
Seven people have been sentenced to time in federal prison in a $100 million mortgage fraud case in
North Carolina’s Mecklenburg and Union counties. Among those convicted are a real estate appraiser, a
loan officer, a bank employee and two lawyers, according to an April 26 article in Mortgage Daily.
The U.S. Attorney’s office said the Waxhouse cases are the biggest mortgage fraud operation ever in the
Charlotte area, involving more than $100 million in loans and at least 80 houses.
At least five mortgage fraud groups, or cells, inflated the sales prices of new homes by $200,000 to
$500,000 more than their actual value, with several homes selling at inflated prices of more than $1
million.
Basically, the groups agreed to buy a new house at its actual price. Then a "straw buyer" would take out a
loan to buy the house for the inflated price. This required falsifying documents to convince lenders the
house was worth the phony price. The fraud also required convincing the lender that the straw buyer
planned to live in the house and could afford to make the payments.
After the sale was completed, the fraud groups split the difference between the true price of the house
and the inflated loan amount, according to Mortgage Daily.
The groups operated during 2006 and 2007 in the Providence Downs South, Woodhall, Chatelaine,
Skyecroft, Firethorne, Piper Glen and Stratford on Providence neighborhoods. The communities were
devastated by the foreclosures after the straw buyers defaulted on their loans. Then lenders discovered
the houses were not worth the amounts listed on the phony appraisals.
Mortgage Daily reported the heaviest sentences were given to:
• Clinton Bruce Darden, a Rock Hill, N.C., an appraiser and owner of ValuEstimators Inc., 33
months, the heaviest sentence imposed.
• Willard Wilson, owner of Blaw Construction Co., 30 months.
Other sentences in the Waxhouse case last week included:
• Linda Clarke, a mortgage broker, 28 months.
• Reuben Clarke III, who helped promote the deals, 22 months.
• Kim Cherrie Perry, a promoter, 15 months.
• Danyelle Eason, a Wachovia Bank employee, six-month active sentence and six months in a
halfway house.
• Rick Phillips, owner of Charlotte nightclub “Stir,” and a financial services firm, 24 months.
Others sentenced earlier include:
• Christina Clark, a real estate agent, 18 months.
• Christine Gates, a Charlotte lawyer, 30 months.
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• Charles Harris Mathis Jr., allegedly a straw buyer for one of the fraud groups, 12 months and one
day
• Troy Smith, a Waxhaw lawyer, 18 months.
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Around the Industry – Market Trends
Citi Cutting Production Jobs, Hiring in Servicing
CitiGroup, Inc. will lay off hundreds of production employees as a result of declining residential
originations, Mortgage Daily reported April 27. About 400 jobs are impacted by this decision; however,
some employees could land in CitiGroup’s default servicing division as the company moves to increase
that department by about 500 positions.
According to the report, CitiGroup indicated that the layoffs will take place at its CitiMortgage, Inc. unit.
Employees affected by the layoffs have been encouraged to apply for other jobs at the company.
The layoffs will occur at sites in Ann Arbor, Mich.; Dallas; Las Vegas; San Antonio; and St. Louis. Those
sites will remain open.
Mortgage Daily reported that the decision to decrease the production division and expand the default
servicing division comes in light of CitiGroup’s settlement with federal regulators to correct deficiencies
identified in fourth-quarter regulatory reviews. According to the report, residential originations at
CitiMortgage fell to $14.1 billion in the first quarter 2011 from $21.8 billion in the final three months of
2010.
Cheaper to Buy than Rent in 78 Percent of Major Cities: Trulia
It is cheaper to buy a home than to rent one in 39 of the nation's 50 largest cities, according to a second-
quarter report released April 28 by real estate search and marketing site Trulia.
The report uses Trulia’s “rent vs. buy index” to compare the median list price with the median rent on two-
bedroom apartments, condominiums and townhomes listed on Trulia’s website as of April 1 in the 50
most populated cities in the United States.
The index uses a price-to-rent ratio of 1 to 15 to indicate cities where it is cheaper to buy than to rent, and
a ratio between 16 and 20 to indicate cities where it is more expensive to rent than to buy. Any ratio
above 20 indicates that owning is much more costly than renting.
The index also considers the total cost of homeownership compared to the total cost of renting.
Calculations for the total cost of homeownership include mortgage principal and interest, property taxes,
hazard insurance, closing costs at time of purchase, homeowners’ association dues and private mortgage
insurance. The homeownership cost calculation also includes tax advantages from mortgage interest,
property tax and closing-cost deductions. Calculations for total rental cost include rent and renter’s
insurance.
Most of the cities included in the analysis saw their price-to-rent ratios fall quarter-to-quarter. Fresno,
Calif.; Omaha, Neb.; San Jose, Calif.; Seattle; Cleveland and Detroit saw the biggest drops and are
considered to be the top cities where it is significantly cheaper to purchase a home than it is to rent one.
9 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
"With home prices nearing a double dip and more foreclosures expected to flood the housing market over
the next two years, the decision between renting and buying a home across most of the country has
clearly moved in favor of buying," Ken Shuman, Trulia's spokesperson, said in a statement.
According to the report, since last quarter, buying a home has become more affordable than renting in
nearly 80 percent of major cities; only in New York, Fort Worth and Kansas City is renting a home the
more economical choice.
To view highlights and find links to the full report, visit http://info.trulia.com/index.php?s=43&item=123.
Rental Vacancy Rates Increase, Homeowner Housing Falls: Commerce
Vacancy rates for rental housing increased in the first quarter compared to the previous quarter, while
homeowner housing rates fell, according to a U.S. Commerce report released April 27. However, rates for
both categories remain higher than figures report during first quarter 2010.
The national vacancy rate for rental housing dropped 0.3 percentage points in the first quarter compared
to the previous quarter to 9.7 percent, down 0.9 percent from a year ago, while the national vacancy rate
for homeowner housing slipped 0.1 percentage points compared to the previous quarter to 2.6 percent,
down 0.1 percent from a year ago.
By region, rental vacancy rates were highest in the South at 12.5 percent in the first quarter, down 0.7
percent from a year ago. The Midwest logged in at 10.2 percent, down 0.8 percent from a year ago. The
West came in at 7.3 percent, down 1.7 percent from a year ago. The Northeast was at 6.8 percent, down
0.7 percent from a year ago.
Meanwhile, the national homeownership rate fell 0.7 percentage points in the first quarter compared to
the previous quarter to 66.4 percent, down from 67.1 percent a year ago.
Homeownership rates were highest in the Midwest at 70.4 percent in the first quarter, down 0.1 percent
from the previous quarter and 0.5 percent from a year ago. The South logged in at 68.4 percent, down 0.1
percent from the previous quarter and 0.8 percent from a year ago. The Northeast came in at 63.9
percent, down 0.2 percent from the previous month and 0.5 percent from a year. The West was at 60.9
percent, down 0.1 percent from the previous month and 1 percent from a year ago.
NAR: Pending Home Sales Index Increases Again
The National Association of Realtors’ Pending Home Sales Index, released April 28, continued its upward
trend, increasing 5.1 percent in March. However, the index is down 11.4 percent from the same period a
year ago.
The index increased to 94.1 in March from February’s downwardly revised figure of 89.5. An index of 100
is equal to the average level of contract activity during 2001, which was the first year NAR examined
existing-home sales data.
While housing activity may be uneven, NAR Chief Economist Lawrence Yun noted that some notable
improvements have occurred in the market.
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“Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24
percent and demonstrate the market is recovering on its own,” Yun said in an accompanying news
release. “The index means modest near-term gains in existing-home sales are likely, which would be
even stronger if tight mortgage lending criteria returned to normal, safe standards.”
The pending home sales index rose in three of the four regions. The South gained 10.3 percent in March
to 110.2, down 10.5 percent from a year ago. The Midwest increased 3.1 percent to 103.7, down 4.1
percent from a year ago. The Northwest inched up 3 percent to 83.5. However, the Northeast cooled,
sliding 3.2 percent to 63.4.
Refinances Push Mortgage Application Activity: MBA Survey
Mortgage application activity increased in the week ending April 29 mainly fueled by refinances,
according to the Mortgage Bankers Association’s weekly Mortgage Applications Survey released May 4.
The survey showed that the Market Composite Index, which measures mortgage loan application activity,
gained 4 percent on a seasonally adjusted basis from the previous week. On a non-adjusted basis, the
index rose 4.1 percent from the previous week. The four-week moving average for the Market Index
decreased 0.9 percent on a seasonally adjusted basis.
The Refinance Index increased 6 percent from the previous week. Refinancing made up 62.7 percent of
applications, up from 61.6 percent the previous week, while adjustable-rate loan activity rose 0.2
percentage points to 6.7 percent. The four-week moving average for the Refinance Index remained
steady from the previous week.
The Purchase Index inched up 0.3 percent from the previous week on a seasonally adjusted basis. On a
non-adjusted basis, the index increased 1.1 percent from the previous week, down 36.9 percent from a
year ago. The four-week moving average for the Purchase Index decreased 2.4 percent on a seasonally
adjusted basis.
The average rate on a 30-year fixed loan decreased from the prior week’s 4.8 percent to 4.76 percent,
while points, including origination fees, fell from 1 to 0.76 for 80 percent loan-to-value ratio loans,
according to the MBA. The average rate on a 15-year fixed loan slipped from 4.03 percent to 3.96
percent, while points, including origination fees, inched down from 0.96 to 0.82.
NAHB Economist Cuts 2011 Single-Family Housing Prediction
National Association of Homebuilders Chief Economist David Crowe has cut his previous forecast for
single-family housing starts. During an April 27 NAHB webinar, Crowe told participants that he expects
only 471,000 single-family home starts in 2011, down from his original forecast of 575,000, and only
698,000 starts in 2012, down from his original forecast of 860,000.
However, Crowe expects 140,000 multi-family starts in 2011, up from 114,000 starts in 2010, and
175,000 starts in 2012.
According to Crowe, the current housing market is a tale of two economies. Although several factors are
contributing to improvements in the market, consumer and builder confidence continues to remain low,
home prices still haven’t rebounded from peak levels and unemployment remains high.
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Robert Denk, a vice president at the NAHB, said during the webinar that although housing starts have
varied over the past 18 months, he does not expect a drastic drop similar to the one experienced between
2006 and 2007. “People talk about a 'double-dip,' but I don't see that happening,” Denk said.
Denk also compared 2010, 2011 and 2012 fourth-quarter housing starts and predictions against data
from 2000 through 2003. According to the analysis, housing starts currently are 31 percent higher than
the 2000-2003 average. Denk also noted that housing starts should be 41 percent higher in the fourth
quarter of 2011 compared to the 2000-2003 average, and 60 percent higher in the fourth quarter of 2012.
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Around the Industry – Financial News
Concern Increases over Underwater Home Equity Loans
As home prices drop again, concerns about the nation’s largest banking companies loom while a
considerable number of home equity loans emerge with little or no equity behind them, according to an
April 28 article in American Banker.
As of March 31, the ratio of home equity loans to underwater borrowers were equivalent to about half of
Tier 1 common equity at Wells Fargo & Co. and about a third at Bank of America Corp, American banker
reported.
Less than 5 percent of Wells Fargo’s roughly $40 billion of underwater home equity accounts were
delinquent by two or more payments. In the company’s earnings presentation in March, Chief Executive
John Stumpf said he was happy with the trajectory of the overall mortgage portfolio, which has
experienced lower delinquencies than large competitors, according to American Banker’s article.
At Bank of America, roughly $40 billion of underwater second-lien mortgages are on record with about
$2.6 billion in total nonperforming home equity loans. Those numbers do not include the impaired assets
Bank of America acquired as a part of its purchase of Countrywide Financial Corp.
In February, JPMorgan Chase & Co. estimated home equity balances plunging underwater declined from
$15 billion in 2008, when home values were dropping sharply, to just $1.3 billion in 2010. The company
projected lifetime losses of 12 percent to 15 percent on its nearly $20 billion pool of second liens with
loan-to-value ratios of more than 100 percent, according to American Banker. Those numbers exclude
impaired loans from its acquisition of Washington Mutual, Inc.
Pimco Protests Proposed Failed-Trade Penalty for Mortgage Bonds
The Treasury Market Practices Group, a Fed-backed debt markets consulting group, has proposed a
penalty of up to three percent for dealers and investors who fail to complete trades in agency debt and
mortgage bonds, a fee that Pacific Investment Management Company says will damage the market,
Bloomberg reported April 29.
TMPG’s April 29 news release outlined the proposed fee structure: “For the agency debt market, the
proposed fails charge would accrue each calendar day a fail is outstanding and would include a $500
minimum claim threshold, similar to the recommended Treasury market fails charge trading practice. For
the agency MBS market, the proposed fails charge would accrue each calendar day a fail is outstanding,
but the fail would not be subject to a charge if delivery occurs on either of the two business days following
contractual settlement date. Charges for fails settled in a given calendar month would be aggregated
between legal counterparties, and a claim would be made if aggregate charges for the month exceed
$500.”
Low interest rates maintained by the U.S. Central Bank mean that the cost of uncompleted trades is also
low, which has led to an increased number of incomplete trades, according to the article. Federal Reserve
data cited by Bloomberg states that the number of uncompleted trades hit a record high of almost $2.4
trillion in November 2010.
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In its release, TMPG stresses the importance of reducing failed trades because “fails can increase
operational costs and counterparty credit risk, absorb scarce capital through regulatory charges, and
damage customer relations.” Additionally, “the prospect of persistent settlement fails at a high level can
cause market participants to temporarily withdraw from the market, or even exit the market, adversely
affecting market liquidity and stability.”
“These recommendations will lead to more robust markets for agency debt and agency MBS and will
serve to broadly reduce the risks associated with high levels of fails,” Tom Wipf, TMPG’s chairman, told
Bloomberg.
However, Pimco’s mortgage-bond head Scott Simon disagreed. “The fail charge is too high and will be
counter-productive. While it will reduce intentional fails, we believe it will sharply reduce liquidity and
incent accounts to attempt short squeezes,” he told Bloomberg. Simon proposed a 1 percent fee as an
alternative in his statement.
TMPG invited public comment through June 10, 2011 and expects to implement the changes in early
2012.
CMBS Delinquencies Continue to Climb, Led by Lodging: Trepp
Preliminary data from Trepp, LLC showed that the delinquency rate on construction loans edged up 0.3
percent in the first quarter from the previous quarter to 18.3 percent, American Banker reported April 29.
The report marks the first time in five quarters that the delinquency rate increased.
"The slow rate of improvement [in residential mortgage delinquencies] reflects the still-high volume of
foreclosures and weak price trends that still plague the market," Trepp said in a news release. "Recovery
in the market is looking like it will take a protracted period of time, stretching well beyond 2011."
By category, commercial mortgage loan delinquencies dropped 0.1 percent in the first quarter compared
to the previous quarter to 5.3 percent, while residential mortgage loan delinquencies slipped 0.2 percent
to 2.9 percent.
Slow Housing Recovery Leads to Dim Outlook on Banks, Says IRA
A dark outlook on housing has led Institutional Risk Analytics to downgrade the forward operating results
of the U.S. banking industry from neutral to negative. IRA based the downgrade on dim reports on
housing and developments from the Federal Open Market Committee, according to an April 28 article on
HousingWire.com.
IRA Managing Director Chris Walen told HousingWire.com his firm’s outlook has been driven by the
Case-Shiller Housing Price Index having been down for eight consecutive months as well as the Federal
Reserve’s announcement April 27 that its benchmark interest rate of 0 to .25 percent will remain in force.
IRA noted that rising fuel costs as well as decreasing mortgage origination volumes will probably continue
to draw down housing prices this year. Since many of the banks’ IRA monitors have major mortgage
servicing operations, their performance remains dependent on the housing industry.
14 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
HousingWire.com reported that the financial analytics firm predicts bank revenue and earnings will
continue to feel pressure through 2012. IRA reported the top four banks have taken billions out of loan-
loss reserves to boost income.
IRA also noted its concern that some of the largest banks may be falsifying their public disclosure of
credit losses to enhance short-term income and decrease provision expense, according to
HousingWire.com. Revenue and margin weaknesses have already caused a retreat in large cap
financials, and an increase in credit provisions could lead to a wholesale sell-off, IRA said.
Freddie Mac: Economic, Housing Reports Spur Drop in Mortgage Rates
Positive economic and house reports led to mortgage rates falling for the second week in a row – with
both the 30- and 15-year fixed rates dropping to their lowest levels since December 2010 – according to
Freddie Mac's April 28 Weekly Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage decreased 0.02 percentage points from the previous week to 4.78
percent, down from 5.06 percent a year ago. The 15-year fixed-rate lost 0.05 percentage points to 3.97
percent, down from 4.02 percent a year ago. Meanwhile, five-year Treasury-indexed adjustable-rate
mortgages slid 0.1 percentage points to 3.51 percent, down from 4 percent a year ago, and one-year
rates also inched down 0.1 percentage points to 3.15 percent, down from 4.25 percent a year ago.
"Mortgage rates followed Treasury bond yields lower this week amid weak local economic data reports on
business conditions and house prices,” Freddie Mac Chief Economist Frank Nothaft said in an
accompanying news release. “In addition, the S&P/Case-Shiller 20-city composite home price index
recorded year-over-year declines through February in 19 of the 20 markets.”
For the complete survey, including regional breakdowns, visit www.freddiemac.com/pmms/release.html.
15 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
Around the Industry – Industry Insider
CoStar to Acquire LoopNet This Year
CoStar Group, Inc. announced on April 27 the signing of a definitive agreement to acquire LoopNet, Inc.
in a transaction valued at $860 million. The boards of directors of both companies have unanimously
approved the transaction, which is expected to close by the end of 2011.
Washington, D.C.-based CoStar is a leading information company for the $11 trillion commercial real
estate market. LoopNet, based in San Francisco, is a leading online commercial real estate marketplace.
Based upon the first quarter of 2011, the combined companies have annualized revenue of approximately
$321 million, CoStar’s news release stated. The transaction will double the size of CoStar’s paid
subscriber base to at least 160,000, which represents approximately 15 percent of the estimated 1 million
participants in the commercial real estate market.
CoStar’s market studies have indicated that customers view the services of the two companies as serving
two very different but complementary needs and that the overlap between CoStar and LoopNet
subscribers is estimated to be relatively low, according to CoStar’s news release. As a result, CoStar
expects significant cross-selling opportunities between the two customer bases.
With the addition of LoopNet’s complementary listings, CoStar will have a database with approximately 2
million active listings, the release stated.
CoStar said it has successfully integrated more than a dozen acquisitions.
LoopNet.com is the industry’s largest and most heavily trafficked online marketplace with 4.8 million
registered members and more than 6 million unique visitors quarterly, according to Google Analytics.
LoopNet is also the leading website for marketing commercial property listings, the news release stated.
CoStar operates the largest and most robust commercial real estate information database with more than
77 billion square feet of office, retail and industrial inventory, 1.5 million listings and 10.6 million images,
according to its release.
Appraisal Organizations Offer Assistance to State AGs, Consumer Bureau
In an April 22 letter, the Appraisal Institute joined the American Society of Farm Managers and Rural
Appraisers in offering its services to the Presidential Initiative Working Group of the National Association
of Attorneys General and the newly created Consumer Financial Protection Bureau.
In the letter, the appraisal organizations praised the statement of principles signed by state attorneys
general and CFPB as a “critical advancement for consumer protection, as well as sound implementation
of the consumer mandates found in the Dodd-Frank Act” and pledged to assist with the accomplishing the
goals of the joint statement.
The letter also addressed two specific areas the appraisal organizations can be of assistance. They
highlighted implementation of Section 1475 in the Dodd-Frank Act, which authorizes separate consumer
disclosure of fees paid for administrative services provided by appraisal management companies and
16 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
actual services provided by appraisers. They also noted correctly implementing the provisions related to
appraiser independence and the payment of customary and reasonable fees, which became effective
April 1.
The appraisal organizations are working to ensure the implementation of the provision as Congress
intended in the Dodd-Frank Act.
The letter is available at http://appraisalinstitute.org/newsadvocacy/downloads/ltrs_tstmny/2011/AI-
ASFMRAtoCFPB4-22.pdf.
ANO Enhances Current, Archived Online Issues
Appraiser News Online announced new enhancements to its online presence on May 4. Now each
archived issue – and the current issue -- consists of one week of stories, instead of grouping one month’s
worth of stories per page on the AI website.
“By using this new approach, we hope ANO’s readers will more easily find stories of interest to them,”
said Appraisal Institute Director of Communications Ken Chitester. “We’ve also increased the type size of
links to stories to further help ANO’s readers.”
With this reorganizing of online issues, ANO readers can find weekly collections of stories dating back to
January 2009. More back issues will be rearranged in the future.
In its 12-plus years of existence, Appraiser News Online has evolved from a print-only, mailed newsletter
to a fax to an online-only publication, increasing its frequency from monthly to weekly. Earlier this year,
ANO unveiled pop-up functionality that enables readers of the web version to read one story at a time
instead of calling up an entire issue.
With nearly 44,000 subscribers, Appraiser News Online publishes about two dozen stories each week of
interest to the real estate appraisal industry. ANO produces an average of more than 100 stories per
month.
Appraisal Quality Control Increasingly Important, Says New AI Book
Responding to heightened appraiser accountability, the Appraisal Institute released a new book on April
28 that outlines successful techniques to maintain internal quality control and presents an accessible
overview of the quality control principles developed for manufacturing and other industries, applying them
to the appraisal profession.
“Exceeding Expectations: Producing Appraisal Reports and Services That Delight Clients” by Scott M.
Schafer, MAI, also provides tips for gathering client feedback and using it effectively. The book addresses
the details of an internal quality control review process, along with verbal communication, active listening
and effective writing.
“Bringing these skills together can help ensure client and staff satisfaction as well as promote the creation
of clear, concise appraisal reports,” Appraisal Institute President Joseph C. Magdziarz, MAI, SRA, wrote
in the book’s foreword.
17 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
Schafer is a senior managing director of the Valuation and Advisory Group within Cushman & Wakefield
Global Services Inc., where he serves as the national quality control manager. Prior to joining Cushman &
Wakefield, he spent 16 years at HSBC Bank USA. He began his career at Peter F. Korpacz & Associates,
Inc. Schafer received his bachelor’s degree in business management from Southampton College of Long
Island University and holds the Six Sigma Green Belt certification.
“Exceeding Expectations: Producing Appraisal Reports and Services That Delight Clients” is available for
$50 ($40 for Appraisal Institute members). To order, visit www.appraisalinstitute.org/store/p-266-
exceeding-expectations-producing-appraisal-reports-and-services-that-delight-clients.aspx or call 888-
756-4624 between 8 a.m. and 7 p.m. EDT.
18 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
Inside the Institute
Appraisal Institute Designates 24 Members in April
The Appraisal Institute designated 18 MAI members and six SRA members in the month of April, bringing
to 111 the number of members receiving a designation so far in 2011. Of the new MAI members, one is
from China.
The members receiving their MAI designation in April were Amanda Aaron, MAI, Brooklyn, N.Y.; Michelle
A. Alexander, MAI, Germantown, Tenn.; Laurel C. Barsa, MAI, Denver; Karen H. Belinko, MAI, Sykesville,
Md.; Adam J. Brown, MAI, Seattle; Edward Castillo, MAI, Fullerton, Calif.; Michael P. Cigna, MAI,
Pittsburgh; Brandon M. Frank, MAI, Livingston, N.J.; Bryan Lang, MAI, Tulsa, Okla.; Seth I. Markowitz,
MAI, New York; Erick J. Mazzoni, MAI, Philadelphia; Jessica M. Mills, MAI, Des Moines, Iowa; John P.
Pasquarella, MAI, Philadelphia; William F. Reilly, MAI, Madison, Conn.; John O. Stelzer, MAI,
Williamsburg, Mich.; Gary M. Wade, MAI, South Amboy, N.J.; Bin Wang, MAI, Beijing; and Erik A.
Woodhouse, MAI, Walnut Creek, Calif.
Jeffrey M. Bowling of Atlanta, who was already an MAI member, received his SRA designation in April.
The rest of the newly designated SRA members for April were Phillip Dwyer, SRA, Las Vegas; Robert R.
King, SRA, Moreno Valley, Calif.; Theresa M. Leonard, SRA, Franklin Lakes, N.J.; Jeremy H. Lofton,
SRA, Cheraw, S.C.; and D. Becky McDaniel, SRA, Wellington, Colo.
Designated members make a commitment to advanced education and defined ethical requirements. The
MAI designation is held by appraisers who are experienced in the valuation and evaluation of commercial,
industrial, residential and other types of properties, and who advise clients on real estate investment
decisions. The SRA designation is held by appraisers who are experienced in the analysis and valuation
of residential real property. Visit www.appraisalinstitute.org/membership/designated_mem.aspx for more
information on designations. To see the full list of AI members who have received designations this year,
go to www.appraisalinstitute.org/membership/NewlyDesignated.aspx.
AI Honors Two Members as “Volunteer of Distinction” in May
The Appraisal Institute announced May 4 the recognition of two members as a “Volunteer of Distinction”
for May: Daniel Fries, SRA, Region IX and Joel Greenberg, SRPA, SRA, Region X.
The Appraisal Institute’s “Volunteer of Distinction” program recognizes one member in good standing per
region each month who has contributed to the Appraisal Institute, the profession and their local
community.
Fries, a member of the Atlanta Area Chapter, has worked in the real estate valuation profession for 27
years and has been a member of the Appraisal Institute for 21 years. He has served his chapter on its
Board of Directors, as Residential Admissions chair, Government Relations Committee chair, Public
Relations chair, regional representative and as Candidate Guidance chair. He is also on the chapter’s
speaker panel.
Fries has held roles as president and treasurer and is currently on the board of the Georgia Appraisers
Coalition and is a member of the Employee Relocation Council. He is often quoted in regional and
national media, and has spoken at top tier events and authored appraisal courses. In service to his
19 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
community, Fries is active in his church and coaches youth sports, as well as contributing his time to
charitable organizations such as Habitat for Humanity.
Greenberg, a member of the South Florida chapter, has worked in the real estate valuation profession for
two and a half decades and has been a member of the Appraisal Institute for 25 years. He has served his
chapter in a variety of roles, including as Technical Committee chair, Admissions Committee member,
regional representative, Steering Committee member, Board of Directors member, treasurer, secretary,
vice president, president, Nominating Committee chair and Government Relations chair.
Greenberg is a state certified general appraiser and a licensed real estate broker, and is a member of the
Fort Lauderdale and Palm Beach Board of Realtors. He has served as special magistrate for the Broward
County Value Adjustment Board since 1994 and has been on the board of the Florida Quality Council for
10 years. He has authored articles in publications such as Broward Review and contributed a chapter to
the book “Mortgage Banking & Residential Real Estate Finance.” He is a certified expert witness and has
served as member of the Code Enforcement Board of Coral Springs for six years. He has also worked
with the State Financial Regulation division regarding fraud cases and with the Federal Bureau of
Investigation in matters involving appraisal fraud.
Appraisal Institute members may nominate members by submitting the nomination form to their chapter’s
executive director or president. Each region’s honorees then are chosen by their regional executive
director in conjunction with the region’s chair and vice chair. The nomination form and additional
information about the “Volunteer of Distinction” program can be found at
www.appraisalinstitute.org/membership/VolunteerOfDistinction.aspx.
AI in the News: AI Spotlighted as Source for Finding ‘Green’ Appraisers
The Appraisal Institute was prominently featured on FoxBusiness.com in an April 28 consumer-focused
story concerning how the need for green lending products and proper appraisals is driving a new market
niche. The story reached a potential audience of nearly 1.75 million unique online visitors.
To find the best financing for green projects, the article recommended working with brokers, lenders and
appraisers who are familiar with energy-efficient products, advising readers to turn to organizations like
the Appraisal Institute to find qualified appraisers.
Also appearing in national media coverage this past week were Appraisal Institute President Joseph C.
Magdziarz, MAI, SRA, and John Carlson, Associate member, in Valuation Review; Sandra Adomatis,
SRA, on MarketWatch.com; and Jonathan Miller, Associate member, in The Huffington Post.
Those stories are among the recent media coverage currently included in the “AI in the News” feature on
the members-only section of the Appraisal Institute website.
Appraisal Institute members appearing in local media coverage included Clint Sayers, MAI, SRA, Austin
(Texas) American-Statesman; Terry Pixley, SRA, Colorado Springs (Colo.) Gazette; Adam Preuss,
Associate member, TCPalm.com (Stuart, Fla.); Michael Keenan, MAI, MLive.com (The Saginaw [Mich.]
News, The Fling [Mich.] Journal); Gary Crabtree, SRA, Bakersfield Californian; Herbert Sass, MAI, SRA,
The Post and Courier (Charleston, S.C.); and Richard Carabelli Jr., MAI, Berkeley (N.J.) Patch.
20 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
To see the latest media coverage about the real estate valuation profession, the Appraisal Institute and its
members, go to the members-only area of the Appraisal Institute website at
www.appraisalinstitute.org/myappraisalinstitute/Default.aspx and click any of the headlines under “AI in
the News.” Media coverage is updated daily and includes the latest news releases from the Appraisal
Institute.
21 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
ECONOMIC INDICATORS – March 2011
Market Rates and Bond Yields
Mar11 Sept10 Mar10 Sept09 Mar09 Mar08
Reserve Bank Discount Rate 0.75 0.75 0.75 0.50 0.50 3.04
Prime Rate (monthly average) 3.25 3.25 3.25 3.25 3.25 5.66
Federal Funds Rate 0.14 0.19 0.16 0.15 0.18 2.61
3-Month Treasury Bills 0.10 0.15 0.15 0.12 0.21 1.26
6-Month Treasury Bills 0.16 0.19 0.22 0.21 0.42 1.48
3-Month Certificates of Deposit 0.28 0.28 0.23 0.25 1.07 2.79
LIBOR-3 month rate 0.42 0.42 0.40 0.52 1.63 2.86
U.S. 5-Year Bond 2.11 1.41 2.43 2.37 1.82 2.48
U.S. 10-Year Bond 3.41 2.65 3.73 3.40 2.82 3.51
U.S. 30-Year Bond 4.51 3.77 4.64 4.19 3.64 4.39
Municipal Tax Exempts (Aaa)† 4.47 3.63 3.91 3.81 4.74 4.63
Municipal Tax Exempts (A)† 4.74 4.57 4.66 4.71 5.67 5.02
Corporate Bonds (Aaa)† 5.13 4.53 5.27 5.13 5.50 5.51
Corporate Bonds (A)† 5.52 5.01 5.00 5.56 6.66 6.24
Corporate Bonds (Baa)† 6.03 5.66 6.27 6.31 8.42 6.89
Stock Dividend Yields
Common Stocks—500 1.90 2.06 1.90 2.06 2.92 2.17
O t h e r B e n c h m a r k s^
Industrial Production Index*,¶ 93.6 91.2 88.4 85.8 85.5 99.8
Unemployment (%)¶ 8.8 9.6 9.7 9.8 8.5 5.1
Monetary Aggregates, daily avg.¶
M1, $-Billions 1,890.2†† 1,774.5†† 1,712.0†† 1,665.8†† 1,564.2 1,372.0
M2, $-Billions 8,913.5†† 8,710.2†† 8,517.4†† 8,453.9†† 8,390.4 7,661.5
Consumer Price Index
All Urban Consumers 223.5 218.4 217.6 216.0 212.7 213.5
4Q10 3Q10 4Q09 3Q09 4Q08 3Q08 4Q07
Per Capita Personal Disposable
Income Annual Rate in Current $s†† 37,021 36,778 36,049 35,888 35,677 36,060 35,042
Savings as % of DPI†† 5.6 6.0 5.5 5.6 5.2 3.6 2.1
* On June 25, 2010, the Federal Reserve Board advanced to 2007 the base year for the indexes of industrial production, capacity, and electric power
use. This follows the November 7, 2005, change to a 2002 baseline, from the previous 1997 baseline. Historical data has also been updated.
^
As of March 2008, the Federal Reserve stopped issuing the “Member Bank Borrowed Reserves.” As such, this figure no longer appears in
Appraisal Institute publications.
¶
Seasonally adjusted
†
Source: Moody's Bond Record
††
Revised figures used
22 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
Conventional Home Mortgage Terms
Mar11 Sept10 Mar10 Sept09 Mar09 Mar08
New House Loans—U.S. Averages
Interest rate (%) 4.98 4.52 5.09 5.26 5.10 5.92
Term (years) 28.5 28.7 28.5 28.5 29.0 28.8
Loan ratio (%) 74.7 73.1 72.9 73.8 75.2 77.9
Price (thou. $) 328.8 349.7 317.6 329.6 336.5 329.8
Used House Loans—U.S. Averages
Interest rate (%) 4.98 4.68 5.07 5.24 5.14 6.10
Term (years) 27.4 27.3 27.4 27.9 28.1 28.0
Loan ratio (%) 75.8 73.4 74.4 74.6 74.7 77.5
Price (thou. $) 277.3 284.2 294.6 293.1 296.4 293.8
Conventional Home Mortgage Rates by Metropolitan Area
1Q11 1Q10 1Q09 1Q08
Atlanta 5.00 5.07 5.10 6.10
Boston-Lawrence-NH-ME-CT# 4.95 4.83 4.98 6.12
Chicago-Gary-IN-WI# 5.09 5.12 5.24 6.00
Cleveland-Akron# 4.81 5.11 5.30 6.15
Dallas-Fort Worth# 4.77 4.95 5.07 6.09
Denver-Boulder-Greely# 5.11 5.16 5.14 6.00
Detroit-Ann Arbor-Flint# 5.10 5.41 5.75 6.04
Houston-Galveston-Brazoria# 4.97 5.01 5.19 6.07
Indianapolis 4.93 4.98 5.26 6.19
Kansas City, MO-KS 5.26 5.00 5.14 5.84
Los Angeles-Riverside# 5.04 5.13 5.13 6.03
Miami-Fort Lauderdale# 5.12 5.15 5.21 6.27
Milwaukee-Racine# 5.05 5.17 5.14 5.98
Minneapolis-St. Paul-WI 4.99 5.07 5.04 5.95
New York-Long Island-N. NJ-CT# 4.85 5.01 5.14 6.00
Philadelphia-Wilmington-NJ# 4.79 5.14 5.16 6.04
Phoenix-Mesa 5.16 5.17 5.31 6.05
Pittsburgh 4.78 5.06 5.18 5.83
Portland-Salem# 4.96 4.93 5.08 5.90
St. Louis-IL 5.02 5.04 5.07 6.04
San Diego 5.04 5.23 5.11 5.99
San Francisco-Oakland-San Jose# 4.95 4.99 5.15 5.98
Seattle-Tacoma-Bremerton 4.94 4.97 5.04 5.89
Tampa-St. Petersburg-Clearwater 5.02 5.15 5.14 6.16
Washington, DC-Baltimore-VA# 5.05 5.06 5.04 6.09
As of the first quarter 2003, the Federal Housing Finance Board no longer reported on the markets of Greensboro, Honolulu and Louisville.
#
Consolidated Metropolitan Statistical area
23 | Appraiser News Online Vol. 12, No. 18, May 4, 2011
