Who could possibly have seen this coming? [Arnold Kling]:
Servicing [of mortgages] has been traditionally a very low-margin business, with the whole ballgame about keeping costs low.
Back in 2009, policy makers treated mortgage servicers like a piñata. They beat on servicers to provide foreclosure relief, loan modifications, and so forth. They told them to administer new programs that combined loan origination procedures with loan servicing procedures. They sought to punish servicers for noncompliance.
Well, guess what. Now servicers do not want anything to do with any loan that might become delinquent. The cost of dealing with such loans has skyrocketed, thanks to Washington’s piñata-bashing. So if you originate a loan to someone with a low credit score, the servicer charges a hefty premium. That in turn means that risky borrowers either have to pay that premium or get rationed out of the market altogether.
Not wholly unrelated: Sunday’s Washington Post laments that home values in suburban Prince George’s County, Maryland have not bounced back from the crash the way those in Reston, Va., have, and discerns a racial-injustice angle. Unfortunately, it misses a big legal angle that might explain some of the difference, about how the two states’ laws and lawmakers reacted to the foreclosure wave. And: more from Arnold Kling.
The Meitiv family of Silver Spring, Maryland is now under Child Protective Services scrutiny for permitting their children to walk the neighborhood alone a little too freely. Lenore Skenazy of Free-Range Kids has been on the story for a while, and now the Washington Post and columnist Petula Dvorak are covering it too (related). More: Beth Greenfield, Yahoo Parenting (cross-posted from Free State Notes).
P.S. Google Street View will let you simulate the experience of walking south a mile down Georgia Avenue from Woodside Park through and past downtown Silver Spring. And welcome listeners from “Frederick’s Forum” on WFMD with host Dave Schmidt, where I’ll be calling in to discuss the case this morning.
A story from Frederick County, Maryland, where I live. I wrote it up briefly at my blog Free State Notes, and it’s making the rounds all over the web, with Eugene Volokh and Steve Hayward among the first to comment. The Frederick News-Post, whose reporter Bethany Rodgers was the target of Councilman Delauter’s threat, has a write-up as well as an editorial (read the first letter of each paragraph). More: Van Smith, Baltimore City Paper (& Ed Krayewski, Reason “Hit and Run”; Andy Knight, Community Newspaper Holdings publications).
Update: Delauter has apologized here.
Lists of lists, if not indeed lists of lists of lists:
- Lenore Skenazy picks worst school safety overreaction cases of the year [Reason] and worst nanny state cases [Huffington Post]
- Radley Balko, “Horrifying civil liberties predictions for 2015″, and you won’t need to read far to get the joke [Washington Post]
- Feds probe NY Speaker Sheldon Silver over pay from law firm — not his big personal injury firm, but an obscure firm that handles tax certiorari cases [New York Times; our earlier Silver coverage over the years]
- “Doonesbury” Sunday strip gets filed 5-6 weeks before pub date, so if its topicality compares unfavorably to that of Beetle Bailey and Garfield, now you know why [Washington Post and Slate, with Garry Trudeau's embarrassing excuses for letting papers run a strip taking the Rolling Stone/U. Va. fraternity assault story as true, weeks after its collapse; Jesse Walker assessment of the strip twelve years ago]
- Jim Beck’s picks for worst pharmaceutical law cases of the year [Drug & Device Law]
- “The Ten Most Significant Class Action Cases of 2014″ [Andrew Trask]
- Washington Post calls for steep cigarette tax hike in Maryland, makes no mention of smuggling/black market issue so visible in New York [my Cato post]
In exchange for relief from a state-mandated stormwater remediation fee, and direct government subsidies to pay for property improvements intended to reduce runoff, some churches in Prince George’s County, Maryland have made an unusual commitment to the authorities. I explain, and raise questions, at Free State Notes. Since when does government get the power to cut churches tax breaks in exchange for their agreement to preach an approved line? (& Bader, CEI)
If so, you’d never guess from the result in the Maryland governor’s election, I argue at Cato at Liberty.
Trial lawyer and inveterate Litigation Lobby booster Bruce Braley lost his Iowa senate bid (“He comes across as arrogant, and I think it’s because he is,” said an unnamed Democratic official.) Sen. Mark Pryor, chief Senate handler of the awful CPSIA law, lost big.
Massachusetts voters again rejected Martha Coakley, whose prosecutorial decisions we have found so hard to square with the interests of justice. The Wisconsin Blue Fist school of thought, which sees organized government employees as the natural and truly legitimate governing class, met with a rebuff from voters not only in Wisconsin itself but in neighboring Illinois (where Gov. Quinn, of Harris v. Quinn fame, went down to defeat) and elsewhere. Colorado voters rejected GMO labeling, while a similar Oregon bill was trailing narrowly this morning but not with enough votes to call.
California voters rejected Prop 46, to raise MICRA medical liability limits, require database use and impose drug testing of doctors, by a 67-33 margin, and also rejected Prop 45, intensifying insurance regulation, by a 60-40 margin (earlier).
I’ve written a lot at my Free State Notes blog about the governor’s race in my own state of Maryland, and unlike most others was not surprised at Larry Hogan’s stunning upset victory. The politics category there includes my letter to Washington Post-reading independents and moderates about why they should feel comfortable electing Hogan as a balance to the state’s heavily Democratic legislature, as well as my parody song about what I thought a revealing gaffe by Hogan’s opponent, Lieutenant Governor Anthony Brown.
Video now out from Save Farm Families on the Hudson Farm case (earlier). Description:
Collateral Damage: Farm Families Under Attack reviews the questionable political and academic actions that enabled the New York-based Waterkeeper Alliance to push forward with its lawsuit against the Hudson family, and the continuing threat that environmental extremists pose to family farmers, not just in Maryland but across the nation.
I wrote about the case here, here, and here. It raises questions of legal ethics (when the mistaken factual basis for a claim is revealed, aren’t the attorneys obliged to withdraw it?), ideological adventurism in the environmental sphere by state-affiliated law schools, and the need for loser-pays. Maryland Attorney General Doug Gansler, who failed in a bid for the Democratic nomination for governor, comes off badly in the video, and America’s Most Irresponsible Public Figure® Robert F. Kennedy, Jr., even worse.
[cross-posted from my Maryland blog Free State Notes; more on RFK Jr.'s latest foray into public discussion, in which the celebrity scion/frothing hothead again demands the incarceration of various persons who take the opposite side from him in environmental controversy]
More coverage: Mark Newgent/Watchdog and Len Lazarick/Maryland Reporter.
Three columns to read on the subject: Gene Healy, Glenn Reynolds (linking this site), and Nat Hentoff (like Healy, a Cato colleague) in his syndicated column (thanks for mention). I had a letter to the editor yesterday in the Frederick News-Post drawing connections with local lawmakers (as well as a blog post at Free State Notes with similar themes) and the Arizona Republic quoted me Tuesday on the federal subsidy programs that drive militarization, including transfers to the ever-controversial Maricopa County Sheriff’s Office of Joe Arpaio. Earlier here, here, here, here, here, etc.
P.S. Also quoted on NPR.
And so the experiment begins. The politics are pretty interesting, with neither the teachers’ unions nor the voters in places like Baltimore city necessarily thrilled about this development. It’s far more popular with various legal services groups, liberal foundations, and of course the Obama Administration’s Department of Education and Justice Department. [Washington Post, earlier on similar Los Angeles initiative and on the race angle]
In more than a dozen states in recent years, governors, legislators or both have arranged through law or regulation to install unions to represent the fast-growing ranks of home health and child care workers, who in many instances are family members receiving a state stipend for looking after their own loved ones. In Harris v. Quinn, a five-member majority of the U.S. Supreme Court ruled that it violates the First Amendment rights of these recipients to require them to pay dues to a union of whose views and activities they may not approve. It did not alter — for now, at least — the 1977 Abood precedent under which full-fledged public workers can be required to pay such dues, instead recognizing a new category of “partial public employees.”
I explore some of the implications in this Cato podcast with interviewer Caleb Brown. Earlier on Harris v. Quinn here.
P.S. A tip-off from SCOTUS on where it intends to take Harris logic? One view from the Left [In These Times] Ruling is rebuke to various governors, including Maryland’s Martin O’Malley, who have employed executive orders to unionize home health carers [Marc Kilmer, MPPI; related, George Leef] Eugene Volokh dissents on the underlying “bedrock” First Amendment issue [Volokh Conspiracy] Will a teacher’s case called Friedrich v. CTA be the vehicle for revisiting Abood? [Jason Bedrick, Cato] And some clues that the first draft of Harris v. Quinn might have overturned Abood, before the majority reconsidered and pulled back [Jack Goldsmith, Sachs, Homer, at On Labor]