The following remembrance of Dr. Sam Astorino, who died recently, was posted in the Duquesne Law Alumni page of Linked in.  Click here for the Post Gazette Obituary.

Every once in a while, I check to see how I’m doing on the AVVO list of legal blogs.  Today PLBT is coming in at No. 228.  No. 227 is a Public Defender Blog which has been on hiatus since 2009.  However, there was one post in February 2012.  Very entertaining, even if it is a little insulting to be ranked below a blog that posts only once in the past three years.

The CEB Blog (California Education of the Bar) reports that George Zimmerman’s defense team has established a Website, Facebook page and Twitter Account to address what they see as public misconceptions and present their case in the Court of Public Opinion.  The website is soliciting contributions for the Defense Fund.

The CEB Blog post explores the lawyer’s ethical issues, at least in California, quite thoroughly.  It turns out that there is quite a lot that can be said about a case without violating lawyer’s ethics, at least in California. If you are a lawyer thinking about doing the same thing, it is mandatory reading.

Is trial by social media a trend?  Perhaps, but only in high profile cases where news media attention is already focused to the detriment of the defendant, especially the celebrity defendant.  It appears that the overwhelming majority of lawyers were appalled by the publicity campaign conducted by the Jerry Sandusky defense team.  I think it is fair to say that most lawyers think that pretrial commentary of that kind is not beneficial to their client. They are not comfortable with these tactics.

By the way, if you want to read the Zimmerman defense Facebook page, you are going to have to find it and friend it yourself.  Sorry, I don’t do that.

CLT

The New York Times reports that 50 hours of pro bono publico work will be required, starting next year, before admission to the New York State Bar.The article goes on to talk about the great need for free or low cost legal services and how such a program may address that need.

But there is another urgent need.  New lawyers don’t automatically know how to practice law.  Without some kind of supervision and training, legal services by soon-to-be lawyers don’t have a lot of value.  Somebody must teach them how to do it.

It will be interesting to see how New York sets up its program. If there is an opportunity for new lawyers to work in clinics supervised by practitioners, it could be a valuable resource and a model for the future.  But if it turns out to be another credential that must be earned in law school, it may be of lesser value to both the public and new lawyers.

CLT

And you thought you were disorganized:

If you go to the Carnegie Library, you can look up information from every US Census report since 1800 through 1930.  However, as of this week, you can view the 1940 Census report on line.  This information was just made public. But you must search by address, not name.  Here is the link.

The handwritten reports were easier to read than I remember the microfilm at the library to have been.  However, there also seemed to be fewer pieces of specific information collected from most families than in the 1920 census.  And if you are over 73 years old, you are probably in it.

Be patient.  You will be rewarded.

CLT

The Post Gazette ran a story today (Saturday, April 7) on a new suit in the U. S. District Court that alleges violations of the Real Estate Settlement Procedures Act (RESPA).  In essence, the plaintiffs allege that a subsidiary Fifth Third had a reinsurance contract with the company that provided mortgage insurance in two residential loans. The plaintiffs allege that, without disclosure, Fifth Third gave something of value (the reinsurance contract) to the mortgage insurer in exchange for the selection of the mortgage insurer in that transaction.

In essence, if a residential mortgagee borrows more than 80% of the appraised value of the property, the amount over 80% must be insured by a mortgage insurer.  Premiums are usually paid monthly by the borrower, but the lender selects the mortgage insurer.  When the principal balance  falls to an amount under 80%, the insurance coverage is terminated.  [This explanation is an oversimplification of the actual procedure employed.]

Reinsurance is a method of risk-sharing, so that the original insurer does not bear the entire risk of loss.  In some cases, an insurer may be unwilling to accept a risk without reinsurance.  The insurer pays a premium to the reinsurer, thus the alleged kickback could be either the referral or the premium or both.

Generally speaking, RESPA prohibits payment of something of value by a provider of loan services for a referral of the business when the payment is only a referral and not a payment for services rendered to the borrower.  However, the specific facts in the case must be examined to establish whether RESPA is applicable in this case.  In addition, there is an additional issue whether such a mortgage-related  transaction must be disclosed to the borrower and, if so, whether the disclosure was actually made.

Mortgage insurance and reinsurance could become an issue in mortgage foreclosures and perhaps bankruptcies.  If the lender is able to make a claim under a mortgage insurance policy after foreclosure, is it required to give a credit to the borrower in the amount stated in the complaint and, if so, how much?  What impact would a reinsurance contract have on such a calculation?  If such reinsurance is deemed to be a violation of RESPA, what would be the impact on the foreclosure, if any?

CLT

If you or your client has received a 1099 from a former mortgage lender following a short sale or other form of mediation, be aware that Federal law enables qualified taxpayers to exclude the income imputed in the 1099. Under the Mortgage Foregiveness Debt Relief Act of 2007, acquisition debt that is forgiven may be excluded from income.  Consult a qualified tax professional.

CLT

Have you ever watched the shows on the cable channels that feature couples (or occasional single working girls) searching for a new home?  They have several of them on HGTV, Wealth TV, Travel Channel, etc.  The house-hunters range from the very young to the moderately old.  The venues range from the Philly suburbs, to Toronto Canada, to Greece, to Australia — you name it.  Places like the Czech Republic are not out of the ordinary.  Some shows specialize in vacation homes, others in exotic locations and others in high-rise condos.  Almost none of these places look like the traditional Pittsburgh fare.  They are mostly glitzy, pricey and fully furnished.

Trends emerge.  Everybody wants granite on the kitchen countertops (including the mandatory island.) Nobody wants cherry kitchen cupboards.  Everybody wants bathrooms with “Jack and Jill” sinks — because they are both getting ready to go to work at the same time, to pay for their digs.

Typically, the couple is shown around three houses by a telegenic real estate agent.  She points out the features — “very nice update.”  Chirps the husband, “vaulted ceilings help,” and the agent agrees.  A minute later he is saying that the bathroom is so small he would have to get down on his knees to brush his teeth.  The agent says nothing.

At last, comes the moment of truth.  Will it be the fixer-upper (#1), the over-budget move-in (#2) or the cute bungalow(#3)?  After presenting these (or equivalent) choices, they leave you hanging while you much watch a battery of commercials.

For anyone familiar with the residential real estate business, this phenomenon can be described with four little words: “Give me a break!”  The buyers are frequently so obviously unqualified by their employment to buy a $400,000.00 condo that you wonder whether they inherited the money or won the lottery. Their objections often border on the looney.  And who ever heard of serious homebuyers making a decision looking at only three houses, in very different neighborhoods and at very different price ranges?

Oh well, that’s show biz.

CLT