Carmine

In the wake of the mammoth study of mortgage disclosures released in mid-June by the Federal Trade Commission (FTC), the real estate industry is actively analyzing the new forms and the FTC's conclusions about what needs changing. But the opinions on the study and what it could mean for RESPA reform are unsurprisingly varied. Paul Schieber of Blank Rome LLP perhaps said it best when he observed, "To be honest, any new form is probably going to be an improvement, but no form will satisfy everyone."

Brokers pleased

Marc Savitt, vice president and president-elect of the National Association of Mortgage Brokers (NAMB), was very pleased with the FTCs findings.

I cant tell you how happy I am to see this report the way it came out, because it validates everything NAMB has been saying for the past few years we need to simplify these disclosures to make them easier for consumers to understand. Whoever originates a loan should disclose on the exact same forms in the exact same manner. As the report shows, the way it is done now confuses the consumer, and when it confuses the consumer, they make mistakes, and they are costly mistakes.

Savitt noted, One of the most surprising things from this is that youd think more disclosure would come out as a result of this report or that theyd be recommending more disclosure not just clearer disclosure. But actually what theyre saying is that there is too much disclosure.

He added that even the savviest consumers are often confused by the forms, saying, Ive had people that are lawyers and/or involved in the mortgage business [applying for loans] and you can see in their eyes that they dont understand [the forms]. We always tell them that if you dont understand, dont be afraid to ask what you may think is a stupid question, because the only stupid question is the one you dont ask.

Breaking down the findings

Howard Lax of Lipson Neilson Cole Seltzer Garin PC took a very analytical look at the report.

I cannot fault the empirical findings of the study, he said. However, there is still a lot more work to be done before new disclosure models are proposed. This is clearly evident from the conclusions of the study.

Lax went through each conclusion one-by-one, offering comments on each.

(1) Current mortgage cost disclosures failed to convey key mortgage costs to many consumers.

We know this already, Lax said.

(2) Prototype disclosures developed for the study significantly improved consumer recognition of mortgage costs, demonstrating that better disclosures are feasible.

Yes, but they are up against a very low standard, Lax said. The issue is not whether better disclosures are feasible - that is a given. The issue is whether better disclosures will be effective. This is just a first stab at providing effective disclosures. More work needs to be done.

Lax emphasized that "significant improvement is needed in the next prototype disclosure about prepayment and balloon loans, and explaining how the APR differs from the interest rate (and why this is important).

Lax also pointed out the following quote from page ES-9 of the study:

Although the prototype form provided significant improvements in consumer understanding, some consumers still failed to recognize key costs, and, in some cases, represented substantial proportions of prototype form respondents. Forty-one percent of prototype form respondents, for example, could not identify the amount of prepayment penalties (though this was a substantial improvement over the 95 percent who could not do so with the current forms), and 30 percent did not recognize that the loan included a large balloon payment, an identical percentage as in the current forms group. Further development of the disclosures may provide additional improvements that better convey these costs.

Regarding this, Lax said, It is significant that borrowers who thought they were happy with their loan were not, and borrowers who thought they understood the terms of their loan did not even those who considered themselves sophisticated consumers. Further study may reveal that there is no good way to explain certain terms, such as what the APR is and the benefit this disclosure provides. If it is not possible to make this disclosure effective (especially since almost all homeowners prepay their loan), the Federal Reserve Board and Congress should think about abandoning this disclosure or significantly revising it in favor of a more effective yardstick (perhaps by showing the cost of credit over the first seven years of a loan rather than over the life of the loan).

(3) Both prime and subprime borrowers failed to understand key loan terms, and both benefited from the improved disclosures.

Was anyone able to identify how they could have benefited from the improved understanding? Lax asked. Were there any Gee, I could have had a V-8! moments? Did anyone go back to their lender and demand a modification of their loan?

(4) Improved disclosures provided the greatest benefit for more complex loans, where both prime and subprime borrowers had the most difficulty understanding loan terms.

I would like to see the FTC repeat the study with people who never had a mortgage loan, across a broader range of the population, Lax said. The study produced minor differences between the understanding of loan terms by prime and subprime borrowers. We hear anecdotal stories of loan officers taking advantage of subprime borrowers because they are uneducated or inexperienced. Perhaps subprime borrowers are educated by the origination process so that the study results are similar for prime and subprime borrowers. Perhaps the anecdotal stories were not supported by the study because the sample population for the study was from Montgomery County, Md., an area where education and income levels are substantially higher than elsewhere in the U.S., he noted.

Testing individuals who fall into the prime and subprime credit categories in various financially homogeneous regions (e.g. the City of Detroit, the City of San Francisco, and two rural communities) but who have not purchased a home may show that there are greater differences in understanding disclosures among persons of different financial circumstances. This issue was not part of this study, Lax said.

He added, I suspect that creditworthiness is strongly related to the level of parental training and other informal education concerning financial services received by teenagers and young adults. Disclosures need to be developed for the inexperienced (first time) home buyer. Perhaps we need an additional set of disclosures for the experienced consumer.

Regarding this point, James Lacko of the FTC's Bureau of Economics and author of the study, disagreed about the study's scope.

Lacko told RESPAnews, Although [Lax] is correct that we did not focus the study on first-time homebuyers, we did examine mortgage customers in many areas of the country, Lacko said. The Montgomery County, Md. sample was used for the 36 in-depth interviews conducted in the study. The study also conducted consumer testing with over 800 mortgage customers in 12 locations across the country, including Boston, Westchester County (New York), Akron, Chicago, Nashville, Atlanta, Denver, Dallas, Phoenix, Las Vegas, Portland and Seattle.

Making it mean something

Lax also had some observations about other portions of the study.

He pointed out pages 31-34 of the report (Section 3.4.2) which explain how the study found that applicants really do not understand the various services that a broker or lender performs that are listed on the GFE.

These statements underscore the need for mandatory financial education in public schools, Lax said.

Further, Lax said, Page 61 of the report states that the enhanced GFE disclosure used in the study provided a total closing cost estimate rather than an itemized cost list. Many brokers and lenders have been providing a total of the estimated closing costs for a long time without any apparent benefit to consumers. This is evident from the high number of subjects that failed to identify the cash due at closing when the closing costs are financed (pages 99-100 of the report). Anecdotal stories indicate that the average uninformed consumer only cares how much his or her payment is going to be. Hence, there are only two significant items of information. First, how much money do I need to bring to closing (the report correctly identifies this as the borrower's first payment), and how much is my monthly payment thereafter.

If the total closing costs is going to be a prime disclosure on the GFE, it has to mean something, he continued. I believe that consumers are confusing the total closing costs and the amount needed to close. Both are important, but they are different concepts and they should be disclosed in different manners to recognize the differences. The total loan closing costs should be identified as a hidden cost of credit much like taxes and title fees when buying a car that may be built into the amount that is financed to buy the car. The amount that needs to be brought to closing should be identified as the first loan payment, as alluded to in the report.

A second disclosure?

Lax further said that the disclosure did not address some of the more complex decisions that a borrower should consider in structuring the loan.

I think that the FTC should consider adding a second disclosure as an addendum that addresses subtle issues beyond the what is my payment level, he said. For example, the concept that the consumer can lower his closing costs and monthly payment by paying the closing costs rather than financing them should be disclosed in terms of the borrower's loan perhaps in a short table attached as an addendum at the end of the disclosure.

The HUD factor

After the study came out last week, HUDs Brian Sullivan said the department was looking at the report and prototype disclosure and felt that the agencies were both singing the same general song here, and that is better disclosure is better.

Sullivan said HUD certainly will be considering the FTCs suggestions as it moves forward with drafting the new rule and noted that HUD has continuously been in contact with its federal partners throughout the whole reform process.

For his part, Savitt said he hopes HUD limits itself to RESPA reform lite as Phil Schulman of K&L Gates put it in 2005, commenting on a reform proposal that would include only a revamped GFE.

Savitt added, We hope HUD implements these changes and takes the recommendations seriously. It would be a tremendous benefit to the industry and consumers.

RESPA reform and policy implications

With regard to HUDs RESPA reform effort, Rich Andreano Jr. of Weiner Brodsky Sidman Kider PC felt that the FTCs finding that consumer comprehension of mortgage transactions can be materially enhanced by simply improving the loan disclosures is significant.

Andreano noted, While the FTC prototype disclosure presents a lump sum amount for settlement charges as a package, the FTC makes clear that it is not proposing the packaging concept that HUD included in its 2002 reform effort. Specifically, the FTC states that although the prototype form uses the phrase package when referring to the settlement services charge, it would not necessarily require the types of packages outlined by HUD in its 2002 proposal. All that is necessary is that the cost of the various settlement services be disclosed as a single price rather than itemized as in the current GFE. Whether this is accomplished through a HUD-type package or simply an aggregation of the individual costs is not material to the disclosure or its intended use by consumers. It will be interesting to see if HUD hears the FTC and proposes only improvements in the GFE and related changes, or attempts to adopt more wide-sweeping changes to RESPA as it did in 2002.

HUD may be successful if it takes the former approach, and it likely will not be successful if it takes the latter approach, Andreano said.

Giving teeth to the GFE

Lax went a bit further in his policy speculation, stating that there is another issue Congress needs to address.

State regulators recently began criticizing brokers for providing a GFE that varies significantly from the figures on the final HUD Settlement Statement. In many cases, the variance is due to differences between the processing fees, lender paid broker fees, and origination fees for (a) the loan amount and loan program used to provide the GFE, and (b) the loan program offered to the borrower after underwriting the borrower's credit, he said.

In Michigan, state examiners have been recommending that brokers and lenders redisclose the GFE three days before closing to correct the estimates made at the time of application, Lax continued. There is no basis in state or federal law to require the redisclosure of the GFE. Some brokers, to avoid a charge by state regulators that the GFE is not accurate, are providing ranges of fees (e.g. the dollar equivalent of 0 percent to 5 percent of the loan amount) rather than fixed amounts. If only a total range of fees is provided, the consumer will not be able to use this disclosure for its intended purposes to shop for credit.

Either we must drop the pretense that consumers can use the GFE to shop for credit, or we need to make this disclosure binding on the broker for a period of time to permit the borrower to shop it around, he concluded.

RESPAnews will continue to follow this story as it progresses.

Robin Wardzala is the editor of http://www.respanews.com the first and only online publication dedicated solely to covering issues and news related to the Real Estate Settlement Procedures Act (RESPA). RESPAnews.com provides its 32,000 readers with exclusive reporting and analysis on HUD settlements, RESPA court cases and class actions, ongoing compliance updates and multi-sided perspectives on regulatory reform debates and proposals. RESPAnews.com also offers a Q&A service with questions answered by expert attorneys. RESPAnews.com is a publication of October Research Corporation, the nations premier provider of real estate industry news and analysis.

More and more often, I come across cases of nonsmokers who develop lung cancer. My attention is always drawn to news of this nature because my husband passed away at the age of 51 from brain and lung cancer. He never smoked a day in his life.

The complacency non-smokers have shared over the years is no longer a viable option. Smokers and non-smokers alike are vulnerable to a disease which is largely incurable. Among patients with lung cancer, only about 14% live five years after their diagnosis.

In the face of a disease that seems to have neither rhyme nor reason, what can we do to protect ourselves? First, assess your risk for lung cancer; then take measures to prevent the disease.

What are the risk factors for lung cancer?

Gender: Unfortunately, women seem to be more vulnerable to lung cancer. Research has shown that female smokers are more susceptible to the cancer-causing chemicals found in cigarettes. In another study, a gene linked to abnormal lung cancer cell growth was found to be more active in women than in men. It did not matter whether the women smoked or not.

A family history of lung cancer: Evidence suggests that there is a lung cancer gene which predisposes offspring to develop lung cancer. However, the evidence is far from conclusive as the situation is made difficult by the fact that offspring of smokers have been exposed to a smoking environment since childhood and would therefore have a greater risk for developing the disease.

Scarring from previous lung disease: Scarring in lungs caused by tuberculosis or other lung disease can be a risk factor for lung cancer.

Second-hand smoke: Exposure to second-hand smoke has been shown to be a definite risk factor. Your risk increases by 30 percent from daily exposure to second-hand smoke. This is probably the most significant risk factor for lung cancer in non-smokers.

Exposure to radon: Radon is an odorless gas than can seep out of the soil into buildings. Worse yet, the gas can seep from the soil into water near residential communities. Radon has been implicated as a potential cause of lung cancer.

Air pollution: Long-term occupational exposure to diesel exhaust fumes may increase lung cancer risk by 47%. Air pollution in general is a risk factor in the general population. Swedish researchers estimate that as many as 1 in 10 cases of lung cancer may be caused by air pollution in the Swedish capital city, Stockholm.

Past Cancer Treatment: Researchers in Sweden who looked at the medical records of 140,000 breast cancer patients found that there was an increase of lung cancer 5 to 20 years after breast cancer treatment. Suspicion is that radiotherapy in the chest area may have made the lungs more susceptible to the disease.

Estrogen Replacement Therapy: According to researchers at the University of Pittsburg, estrogen may fuel the growth of non small-cell lung cancer.

What preventative measures can we take?

Diet: An apple a day may keep lung cancer away. A Finnish study suggests that apples not only keep doctors away, but provide protection for the lungs as well. This study found that people who ate the most apples were 58 % less likely to develop lung cancer. Other studies suggest that lung cancer risk is lower among smokers and non smokers who ate at least 5 servings of vegetables and fruits daily.

Beta Carotene: A high intake of beta carotene compounds can lower your lung cancer risk; however, studies also show that the beta carotene is only effective when the compounds are ingested from whole foods such as peaches, melon, carrots, mangoes, dark leafy vegetables, squash etc. The opposite effect seems to take place with beta carotene supplements. A Finnish study reported 18% more lung cancer cases among heavy smokers who took beta carotene supplements. And a National Cancer Study on the effects of vitamin A and beta carotene was halted because smokers taking the supplements had 28% more lung cancer than those taking a placebo.

Selenium and Vitamin C: Taking selenium supplements on a long-term basis has been shown to decrease the incidence of lung cancer. In one study, people taking 55-200 mcg of the mineral daily had a 46% lower rate of lung cancer. As well, studies indicate that people who take less than 90 mg of vitamin C on a daily basis may have a 90% higher risk of lung cancer than those who take 140mg or more.

Avoid second-hand smoke and check your house for radon.

There are never guarantees in life, but it makes perfectly good sense to take some preventative measures as these can not only improve your overall quality of health and life but also prevent lung cancer.

Copyright 2006 Mary Desaulniers

A runner for 27 years, retired schoolteacher and writer, Mary is helping people reclaim their bodies. Nutrition, exercise, positive vision and purposeful engagement are the tools used to turn their bodies into creative selves. You can visit her at http://www.GreatBodyat50.com or learn how she lost her weight at http://www.greatbodyproteinpower.com

Have you ever had one of those workouts where everything seemed to just "click" and all of your lifts were great?

Where you just felt an extreme energy coursing through your body as you go from one lift to the next, ready to kick it up an even "higher notch."

Let me ask you, are these workouts few and far between for you? Do you wish you could have an awesome workout every single time you wrap your hands around the steel bar?

I'm telling you that you can. What's the alternative, betting that you can't?

Every single time you step into a gym to lift or do cardio, you must approach that workout like it's the very last one you'll ever do.

Truth be told, you really never know if it really will be, but without sounding too morbid, that's the mindset you must have.

I just gave you the key as to what it takes to have a killer workout each and every time you step into the gym.

Your mindset.

It's as simple as this.... Before you can create anything, you have to think it. I challenge anyone to dispute that statement.

Before you have, do, get, build...anything...you have to think what it is your trying to get.

Architects do not start building houses until they have thought of every last little detail. Then they just construct what they thought about.

Approach your workouts and your body the very same way.

You cannot and should not just walk into the gym without thinking of what you want to accomplish and just start throwing some weights around.

It took me years to figure that out and it was years that I was puny and had nothing to show for it. Before even stepping into the gym, know what you're after.

If not, you're spinning your wheels.

So what does that have to do with having a killer workout every single time? Well, if you know what you want to achieve (muscle growth, strength increase, fat loss) you then just have to do those things that will bring those results.

It's funny how many times I've heard the following in the gym while training people:

**I want to lose some body fat but I hate doing cardio.

**I want to add some size or strength to my frame, but I don't have time to eat very much during the day.

**I want to increase my bench but I've just been doing higher reps with lower weight.

Look, I can tell you that you'll almost never achieve your muscle building or fat loss goals if you haven't taken the time to think about how you exactly plan on going about getting them.

Having awesome, muscle blasting workouts are at your disposal any time you want them. It starts with thinking about what you want to achieve.

More muscle, more strength, less body fat. And then it begins with following through on the plan to get those things.

If you know exactly what you want and know the exact steps to get it, how can you NOT have awesome workouts each and every time?

I mean, imagine yourself in the gym, right now, doing only those things that you KNOW are going to boost muscle and strength for you.

Wouldn't you feel more pumped knowing that the stuff you are doing is going to lead you to where you want to be?

That's exactly how you can have awesome workouts every single time you step into the gym....it comes from realizing that you are well on your way to getting what you want.

And that the only thing stopping you is you.

So the next time you step into the gym, approach it with an attitude that says "There is no possible way I can fail."

If I go in there, do every single thing I know I have to do and do it well, success is guaranteed 100% of the time.

What's the alternative, dreading going to the gym and when there, wishing you were somewhere else, so you speed through your workouts just to get them done.

Good luck, for if you do this, chances of you seeing any success is slim to none. I now challenge you to challenge yourself.

Every time you go to workout, make it the single best workout you've ever had.

I can PROMISE you, if you do this every time, not only will you have great workouts every time, but you will also guarantee yourself muscle growth, fat loss, strength, or any other goal you want.

If you want to build more muscle and lose more fat in less time from your workouts, check out the simple yet powerful workout program from fitness trainer Shawn LeBrun. Simple Steps To Get Huge And Shredded"

Tornadoes are defined as an aggressively rotating column of air which is in contact with both a cloud base and the earth. Tornadoes typically have a visible funnel, with the narrow end touching the surface of the earth.

Most tornadoes have winds of 100mph or less, are approximately 90 meters wide, and travel a few miles before fizzling out. Some tornadoes can have winds of more than 280mph, can be more than a mile across, and stay on the ground for tens of miles.

Tornadoes have been observed on every continent on earth except Antarctica, the majority the world's tornadoes occur in the United States and in particular Tornado Alley. Other areas which commonly experience tornadoes around the world include New Zealand, Australia, Canada, central Europe, south-central and eastern Asia, South America, and Southern Africa.

The life cycle of a tornado begins when a strong thunderstorm develops a rotating mesocyclone high up in the atmosphere. As rainfall in the storm increases, it drags with it an area of quickly descending air known as the rear flank downdraft. This downdraft accelerates as it approaches the ground, and drags the rotating mesocyclone towards the ground with it.

As the mesocyclone nears the ground, a visible funnel appears from the base of the storm clouds. As the funnel drops, the downdraft reaches the ground, creating a gust of wind that can cause damage far from the tornado.

At the start of the cycle, the tornado has a good source of warm, moist inflow to power it, and it grows. During its mature stage, lasting anywhere from minutes to more than an hour, a tornado often causes the most damage. Meanwhile, the RFD, now an area of cool surface winds begins to wrap around the tornado and chokes off the air supply, the tornado begins to deteriorate.

As the tornado enters the dissipating stage, its associated mesocyclone often weakens as well, as the rear flank downdraft cuts off the air flow powering it. As the first mesocyclone and associated tornado dissipate, the storm's inflow is concentrated into a new area closer to the center of the storm. If a new mesocyclone develops, the cycle may begin again, generating a new tornado, and in some cases there may be 2 or more funnels touching the earth at any one time.

Find out more about Tornado Alley in the United States.

Once you have been diagnosed with ADHD by a mental health professional, the next step that your doctor will recommend will be medication treatment. Medication can significantly reduce your symptoms pertaining to ADHD, and it can make your life much easier. The first choice for medication treatments are stimulant medications. In individuals with ADHD, they have a low amount of dopamine in the frontal part of their brains. Stimulant medications create dopamine which decreases the symptoms of the disorder.

Adderall is the first choice of stimulant used by mental health professionals. Adderall is an amphetamine salt, and it is the first choice because it is only necessary to take it once to twice a day. It is also less harsh to come down off of then other stimulant medications. There is also a time released version of Adderall called Adderall XR. Ritalin is the second choice of stimulant used by doctors. This has to be taken more often, and it has rebound effects that can be unpleasant for some people. Ritalin has a time released version that is called Concerta. Dexadrine is another stimulant medication that works similarly to Ritalin. And the last choice of doctors for stimulants is called Cyclert. This is very rarely used because there is a chance of liver toxicity in users. Cyclert is only used if nothing else works and medication would be helpful.

Besides stimulants, there is a fairly new drug called Strattera that works differently than the others. When Strattera came out, it was supposed to be the wonder drug for ADHD. It's not as good as doctors had first hoped, but it is an effective drug for people who do not want to take stimulants. Strattera works like an antidepressant, increasing the level of norepinephrine in your brain over a few days of taking it. It also has some antidepressant effects that may be helpful if you deal with depression and anxiety as well.

Because of the nature of ADHD, many individuals who suffer from it have issues with anxiety and depression as well. Some decide to take antidepressants along with their other medications to alleviate their symptoms. Commonly prescribed medications for depression and anxiety are called SSRI antidepressants. Popular types of SSRIs are Prozac, Paxil, Celexa, Wellbutrin, Effexor and others. These drugs can really be a lifesaver for people who have to deal with mood problems as part of their lives.

It may take a few tries to find the right medication or the right combination of medications. Do not despair if you do not find the right medication the first time. It can be very frustrating, but luckily there are quite a few psychotropic drugs out there that can really help. Just be patient and make sure you are working with an educated and qualified professional.

Keith Londrie II is a well known author. For more information on ADHD, please visit ADHD for a wealth of information. You may also want to visit keith's own web site at http://keithlondrie.com/

If you are suffering from frequent and unrelenting heartburn, you probably would do just about anything for some relief. There are prescription medications that might help, but some people want to find a more natural way to help with the problem. There are some who believe that a variety of lifestyle changes can be made, and that you can take licorice for acid reflux and feel some relief. Licorice root has been used for a long time for many different things with great success. There are some things you should know about it before you begin.

Acid reflux is the result of stomach acid moving up into the esophagus. It can go as high as the mouth, and throat, and can cause problems with sinuses and the respiratory system. The acid can do a lot of damage to these tissues, and you might even experience tooth decay. It is often associated with a burning sensation that can be very hard to manage at times. For some people, the pain is unbearable, and medications are a must in order to stop the pain.

If you have reflux, you can try a few lifestyle modifications. If you are overweight, you may find relief in losing the extra pounds. This extra bulk can be part of the reason that the valve at the top of your stomach meant to contain the acid within is failing.

Smoking will make acid reflux worse, so if you smoke, now is the time to quit. Also, alcohol and drugs like Advil (NSAIDs) and aspirin might also be avoided. A person with reflux should also learn to avoid those foods that seem to make things worse for them, and also its a good idea to stop eating three hours before bedtime. A sleeping position with the head and upper body elevated is best.

You might also want to try licorice root to see if it does anything to help you. This is something that is otherwise referred to as DGL (De-Glycyrrhizinated Licorice). There have been some studies that suggest this is just as effective as some medications, and in some cases it worked better. You should discuss this with your doctor before you begin however, because there can be problems.

Even though you might think of licorice roots as a natural remedy, it can still harm you if you are in poor health. Licorice has been known to raise blood pressure if you take the wrong kind. Always have medical help when you try something like this.

There are many people who have said they have found great relief in using licorice for acid reflux. Usual dosages are once a day or if you have a bad case of reflux, you might have to take it twice a day. You may find that using this natural remedy along with a well thought-out meal plan, changes in lifestyle, and a new way of sleeping will help keep your symptoms to a minimum.

By Kathryn Whittaker. Sign up for a free newsletter that has proven methods for tackling Acid Reflux, Heartburn and GERD head-on and discover more about acid reflux. In the newsletter you'll also find more about the different kinds of acid reflux help and what to do if you have severe heartburn.