FINANCIAL REFORM BILL IS NOW IN CONFERENCE WHERE THE SENATE VERSION HAS THE EDGE Latest draft of over 1900 pages contains several residential mortgage reforms, including requiring lenders to make certain borrowers are able to repay, limiting prepayment penalties, and outlawing certain mortgage broker fees. Many amendments are still to be dealt with.

For the version the Congressional Conference is working with, see Col 2.

BANK OF AMERICA SUES FIRST AMERICAN ON MORE THAN FIVE THOUSAND LIEN PROTECTION POLICY CLAIMS, DEMANDS $500 MILLION
See the Condell Private Letter No. 204 for details.

WILL MELTDOWN NO. 2 BE COMING ALONG? SIGNS MAINLY NEGATIVE FOR COMMERCIAL REAL ESTATE
If commercial real estate deals have been making up any significant part of your revenue stream, get ready for another major hit.

Nothing is right. No new projects are being started. Hundreds of office buildings are starved for tenants. Strip malls by the dozens are totally empty. Even some major enclosed malls are losing tenants, even anchor tenants.

Apartment projects coming online have few tenants and few prospects for tenants.

Worst of all, perhaps, there hasn't been a single new securitization of commercial mortgages yet THIS YEAR. There are simply no funds available for commercial financing.

Ordinarily at at a time like this, title companies would be getting by doing commercial refinances -- it's good business when it's there. It's not there.

For more, see page one of the upcoming issue of the Condell Private Letter.

ONE THING HUD HAS MADE CLEAR: LENDERS MUST SUPPLY CLOSING AGENTS WITH HUD-1 PAGE 3 INFO HUD has released a new version of "Frequently Asked Questions", 45 more pages of instructions. They make clear lenders must provide closing agents with loan data necessary to fill in comparison table at the top of HUD-1 Page 3.