April 6, 2016
Brooklyn: Sky’s the Limit
Brooklyn Law School’s Center for Urban Business Entrepreneurship is hosting a Networking Reception with Panel Discussion to Follow on April 12th from 6 to 8:30 pm. The panel discussion is entitled, Brooklyn: Sky’s the Limit:
The Borough of brownstones and warehouses continues to emerge as a global powerhouse with a skyline that may soon rival that of the Manhattan. From the world’s largest roof farm to drone design and launch, to dynamic architectural environments in which Brooklyners live, work, and play, the Borough is taking its place as one of the most innovative and entrepreneurial urban areas in the world. The numerous ventures driving these and other pioneering efforts in Brooklyn are raising novel legal, policy, business, and societal issues that generate opportunities for growth along with some growing pains.
Join Brooklyn Law School and the Center for Urban Business Entrepreneurship (CUBE) for a lively panel discussion that explores these phenomena and their impact on the lives, environment, and flourishing businesses of the Borough and its growing and diverse population.
Introductory Comments
Kathleen D. Warner ’92, Executive Vice President and Managing Director, NYC Economic Development Corporation’s Center for Economic Transformation
Panelists
David Ehrenberg, The Brooklyn Navy Yard – President and CEO
Jonathan Marvel, Marvel Architects – Principal
Ron Shiffman, Pratt Institute for Community and Environment Development – Co-founder
Todd Sigaty, SHoP Architects – Director of Legal Affairs and Sotheby’s Institute of Art – Lecturer
Brian Streem, Aerobo drone developers – Co-founder and CEO
Lee Wellington ’13, Urban Manufacturing Alliance, Executive Director
Moderator
Brian August, 110 Stories – Founder and CEO
This event will be preceded (from 4 to 6) by the CUBE Shark Tank, also known as the CUBE Innovators Competition:
Come experience the Third Annual CUBE Innovators Competition, where Brooklyn Law School students will compete for a small amount of funding for projects and ventures that they will pitch to the audience and an impressive panel of judges. This event is being sponsored by CUBE and Levi & Korsinsky, LLP.
Judges
Tom Chernaik, CEO, Command Post
Mary Juetten, CEO and Founder, Traklight
Eduard Korsinsky ’95, Founding Partner, Levi & Korsinsky, LLP
Charlie O’Donnell, Partner and Founder, Brooklyn Bridge Venture
Basha Rubin, CEO and Founder, Priori Legal
Marshall Silverman ‘74, President and CEO, Silverman Studio Group
Learn more about CUBE.
April 6, 2016 | Permalink | No Comments
April 5, 2016
Creative Credit Union Mortgages
DepositAccounts.com quoted me in Types of Institutions in the U.S. Banking System – Credit Unions. It reads, in part,
What You Need to Know About Credit Unions
For more than 100 years, credit unions have been providing financial services to their members. Forget about what you thought you knew about credit unions. Long gone are the days when credit unions were seemingly only a “bank” for government employees. Today some 100 million Americans are member-owners of 6,900 credit unions and credit unions have more than $1 trillion in assets.
The Credit Union National Association (CUNA) defines a credit union as a non-for-profit, member-owned financial cooperative, democratically managed by its members, and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members.
Simply put — credits unions are about their members, not profits.
* * *
How are credit unions different from banks?
“They are structured very differently. Credit unions don’t issue stock or pay dividends to outside shareholders, so they are not beholden to outside third party interests,” says Steve Rick, chief economist of CUNA Mutual Group, an insurer and maker of financial productions within credit unions.
Each person who holds an account is a member, and each member has one vote, “rather than the voices of only the powerful few stockholders heard at for-profit banks. And all earnings go straight back to members in the form of favorable interest rates and lower fees that other for-profit institutions can’t beat,” he adds.
Banks are governed by paid shareholders and voting rights depend on the number of shares owned. Earnings go to outside bond and stockholders in the form of dividends.
As cooperatives, credit unions are part of a broader cooperative community that shares philosophies around benefiting their member owners. One of the core missions of the credit union system is to educate its members on financial issues to ensure their financial health.
“It’s worth noting that credit unions can offer creative types of mortgages that should be explored by first-time and experienced homebuyers alike. The PenFed Credit Union, along with some other credit unions, has a 5/5 ARM that adjusts every five years. A product like this combines aspects of a fixed rate mortgage (fewer, but not the fewest) surprises about payment sizes, with aspects of an ARM (lower, but not the lowest) interest rates,” says David Reiss, a Brooklyn Law School professor specializing in real estate.
April 5, 2016 | Permalink | No Comments
Tuesday’s Regulatory & Legislative Roundup
- Mayor Martin Walsh of Boston announced $28 million in funding for the creation maintenance and preservation of affordable housing in Boston.
- Governor Cuomo signed $15 minimum-wage law and 12-week paid family leave policy into law this week.
April 5, 2016 | Permalink | No Comments
April 4, 2016
Living with Nightmare Neighbors
US News & World Report quoted me in How to Avoid and Live With Neighbor Nightmares. It opens,
When Mike Scanlin and his wife moved into an expensive ground-floor condominium within a four-story building in a posh part of Los Angeles 18 months ago,the real estate agent assured him that there were no noise nuisances, like loud dogs or kids.
It did seem that way at first, but as Scanlin discovered, “There is a 9-year-old boy’s bedroom directly above our bedroom. He is, like most 9-year-olds, hyperactive.”
Especially in the morning, and the evening, Scanlin says, when the boy “runs, jumps, screams and makes tons of noise.”
Scanlin has talked to the boy’s mother to no avail. An entrepreneur who works from home, Scanlin also sent building managers complaint letters, who in turn, sent letters to the mom.
“Nothing has worked. It’s getting worse,” Scanlin says. “Sometimes the kid gets up at 3 a.m. and rearranges the furniture in his room, with wood scraping on wood, directly above our bed.”
Scanlin and his wife are moving out next month. They aren’t willing to wait around until the kid grows up or hopefully grows out of his behavior.
They say you can’t choose your family, but you can choose your friends and neighbors. Easier said than done, when it comes to housing. It isn’t easy to move, and for some homeowners, financially speaking, once you do plant your roots, you may not be in any position to go elsewhere. That’s why, if you’re buying a home, it’s critical to have some sense of who’s living next door – or above you. Neighbors are important for renters to consider, too, especially if you’re locking yourself in with a lease.
So before you buy or rent, ask yourself the following questions. Because if the answers aren’t promising, you may like the solutions at your disposal even less.
* * *
What to do if there are problems. Unfortunately, there isn’t much you can do, realistically, which is why it’s so important to try and assess the neighbor situation before moving in. When you do have a dispute, “these are always difficult situations, without easy legal answers,” says David Reiss, a professor of law at Brooklyn Law School.
“When you escalate by calling the police or filing a lawsuit, you risk developing a Hatfield and McCoys scenario with nobody getting what they want,” Reiss says. “It’s also important to remember that what you think to be utterly reasonable may not be perceived that way by your neighbor or even by disinterested third parties. What is loud music to you may just be a run-of-the-mill Saturday night party to them.”
True enough, and your neighbors have rights, too – which is, again, why it can be difficult to work out a disagreement.
If you can’t resolve problems with your neighbors, Reiss says, “you can try to determine whether your neighbor is breaking any local ordinances. For instance, loud noise.”
You may want to involve the police and see if they will deal with the problem informally, Reiss adds. “They may or may not,” he says.
April 4, 2016 | Permalink | No Comments
Monday’s Adjudication Roundup
- Massachusetts Mutual Life Insurance Co. settled with a Barclays unit for claims that the lender lied about the quality of $175 million in residential mortgage-backed securities.
- A New York court dismissed case against Deutsche Bank AG for $330 million in losses from toxic residential mortgage-backed securities, finding that HSBC as trustee lacked standing to bring suit.
- The S. government urged the court to allow the False Claims Act suit against Quicken Loans for falsely certifying Federal Housing Administration loans.
- The New York appeals court found that Deutsche Bank is free from $30 million suit for collateralized debt obligation backed by toxic assets.
April 4, 2016 | Permalink | No Comments
April 1, 2016
Cyberfraud at The Closing Table
Realtor.com quoted me in Watch Out, Your Closing Funds May Be Heading to a Cybercriminal. It opens,
Imagine being on the brink of owning a home—you can almost feel the keys in your hand. You’ve wired tens of thousands of dollars into escrow to seal the deal … then, poof, that money disappears. Sound surreal? It’s becoming surprisingly common as cybercriminals have turned to hacking real estate transactions, according to The Washington Post.
How it works: Hackers break into a real estate agent’s or settlement service provider’s email accounts, then monitor correspondences so they know when a closing is about to happen. Then, they assume the identity of the real estate or escrow agent and email the home buyers instructing them where to wire their closing funds … to an offshore account that can’t be traced.
While no one knows the exact number of victims or extent of the problem, the National Association of Realtors® in Chicago told the Post that this scam has hit “hundreds, if not thousands,” of home closings. It’s become serious enough, in fact, that on March 18, the Federal Trade Commission issued a warning to home buyers. As for what’s fueling this trend, some experts we spoke to point to the relatively lax security in the world of real estate compared with other financial industries.
“It was just a matter of time until scammers recognized the opportunity to target real estate agents and their clients,” says Robert Siciliano, CEO of IDTheftSecurity.com. “Currently, most industries that have experienced large data breaches have put systems in place and have become hardened. That means the real estate industry and others become the path of least resistance. Unlike the entire financial industry who have encrypted communications, the real estate industry is a hodgepodge of free email accounts and unprotected communications.”
Holly Isdale, founder of wealth management company Wealthaven, also points out that many real estate agents “are working from highly insecure areas—coffee shops, building lobbies, cars between meetings. As such, they are highly visible targets where their communications are vulnerable to attack.”
But agents are not the only weak link in the chain.
“This problem does not just affect real estate agents; it has also happened with escrow companies, attorneys, and other professionals involved in real estate deals,” says David Reiss, research director at the Center for Urban Business Entrepreneurship at Brooklyn Law School in New York City.
April 1, 2016 | Permalink | No Comments
Friday’s Government Reports Roundup
- HUD’s Office of Policy Development & Research released A Qualitative Assessment of Parental Preschool Choices and Challenges Among Families Experiencing Homelessness.
- The Center on Budget and Policy Priorities released a report finding that the 2017 House Budget would cut $150 billion from SNAP benefits.
April 1, 2016 | Permalink | No Comments


