Foreclosure Op-Ed in Lansing State Journal

Pappas: Michigan, take cue from Nevada Issue: Foreclosure law
Silver State does far more to assist homeowners

August 1, 2010

Michigan's foreclosure law provides a process so borrowers and mortgage holders can work together to avoid foreclosure. These efforts fall short because the law lacks a good faith enforcement mechanism.

This year I observed meetings between homeowners, housing counselors, and mortgage holders' attorneys. Commonly mislabeled mediations, these sessions lack a neutral third party. Homeowners often expressed surprise that they were not able to negotiate. While the attorneys I observed were helpful, I heard numerous stories about delay tactics, adversarial attorneys, and unwieldy bank bureaucracies. After one year, the program's success is difficult to gauge without a central data collection mechanism.

Meanwhile, states like Nevada (with the nation's highest foreclosure rate) are achieving great success.

Nevada's state-run program allows homeowners to request mediation. To foreclose, the mortgage holder must participate in good faith, meaning that their participant must have the authority to modify the loan. The holder must provide a copy of the deed, the note, any assignments, and must submit to the mediator a proposed resolution and the method used to determine eligibility. Both sides must participate with a genuine interest in working out a solution.

If not satisfied, either party may petition for judicial review. The Legal Aid Center of Southern Nevada estimates that 5 percent of cases see instances where a party does not negotiate honestly and fairly, and courts generally defer to the mediators' good faith determination. A judge may sanction any party not acting in good faith (Nevada Fact Sheet, June 21, 2010).

Preliminary findings highlight the program's success: 56 percent of homeowners receive some form of loan modification and 80 percent to 85 percent of homeowners that elected mediation are still in their homes. Nevada's program operates without taxpayer assistance. A $50 fee paid by the mortgage holder covers administrative costs, and each side pays the mediator $200. The mortgage holder pays an additional $150 to alleviate the state's budget crisis (Las Vegas Review-Journal, March 4, 2010).

Nevada's leadership is making a difference. Barbara Buckley, Nevada's speaker of the House, championed their legislation. Further, Nevada Sen. Harry Reid's meeting with Bank of America was influential in a decision to build three new outreach centers (BoA press release, June 1, 2010).

Michigan's law was poorly designed and will expire next July.

In Michigan Lawyers Weekly (Sept, 28, 2009), Alternative Dispute Resolution Section Chair Charles Judson described failed efforts to include mediation. He believes the public must be educated about mediation's benefits, which include the confidentiality of sessions, higher satisfaction rates and lower costs compared with litigation, and mutually agreed upon outcomes. Nevada's program highlights mediation as a valuable public policy solution.

Partnering with legal aid, a mediation program overseen by the State Court Administrative Office could be administered through Michigan's 20 community mediation centers. These centers have the expertise to shepherd cases quickly, efficiently, and at low cost.

Nevada's good faith requirement provides adequate assurance that everyone follows the rules. Michigan's homeowners deserve the same protection.

The Public Administration Canon

I've been busy, working full time at MSU and also traveling to Kansas to work as a full time student on my PhD. Here is a wordle of my 75 page "Canon of Public Administration":

A Great Tigers Win!

In addition to it being a special night for my family, we saw a great game! The Tigers held on to beat the Twins 10-8 in the opener of a big series for both teams.

Great seats!

Debbie, my sister Dana, and my dad

Debbie likes to keep score

Another benefit of the seats- they are in the Singing Hot Dog Man's Section.

Hooooooot Dooooooogs!

Tiger manager Jim Leyland before the game

Granderson before the game

Guillen warming up

Inge in the dugout

Leyland checks the lineups

Polanco signs a few autographs

Magglio running back to the dugout

And now to some first inning action...

Galarraga on the mound, Polanco getting ready for action


Polanco avoids the slide and turns the double play

Tiger killer Joe Mauer connects on a solo homer in the top of the first.

After Clete grounds into a fielder's choice, Granderson gets caught in a rundown between 3rd and home

Harris tries to apply the tag...

But misses! Granderson scores.

the next batter, Cabrera connects on a 3-run homerun

Guillen avoids the inside pitch

Maggs timing Swarzak's pitches

Guillen stretched a double into a triple, and when the ball gets past third, he goes for home. Unfortunately he was called out.

Inge heads to the plate as Ordonez thinks about his strike out. Avila is on deck.

It was a big night for our new catcher: 2-4 with 4 rbi's and 1 run. This capped our 6 run first inning.

Twins Manager Ron Gardenhire argues a call in the second inning.

Dana can barely watch as closer Fernando Rodney almost blows a four run lead in the 9th!

Ed's First Pitch

Last night my Uncle, Ed Pappas, threw out the first pitch before the Tigers v. Twins game at Comerica Park. Ed is serving as the President of the State Bar of Michigan, and this is one of the perks of being Michigan's top lawyer. Ed is a huge baseball fan and this truly was a thrill for all of us.

Ed and his son Steven waiting behind home plate

Ed waives to his many fans

Tigers first base coach Andy Van Slyke prepares for the pitch

Ed giving Van Slyke the sign

Ed sets...

looks like a fastball

Good balance on the follow through

I believe Van Slyke gave Ed the autograph and not the other way around.

New Beginning, but Nothing New

This month marks quite a milestone for my dad. He just finished his 20th year as a college president at three different colleges. Today was his first day as the president of Davenport University. The amount of media coverage is quite surprising. As he did make an appearance in the late 90's on the then "Regis and Kathy Lee" Show, this must be his 16th minute of fame. We are very proud of him.

First there was the article in the Grand Rapids Press.

Then another in the Holland Sentinel.

The ABC affiliate Channel 13 in Grand Rapids, WZZM, ran this story earlier today

Then at 5pm, NBC affiliate WOOD TV Channel 8 interviewed him in a live segment (Yes, it really is called WOOD TV, and it's MichiGANDER, not MichiGANIAN!):




But this is nothing compared to his photo shoot at NLU from last year. I happened to be at National-Louis at the time, and somehow ended up in some of the shots. This is the one that will be on CNN when I'm racing a bronco down 696. For those of you who may not know this, my Grandpa Charlie was also a college president for ten years, at Mott Community College in Flint.

Hello? Dude, you called me...

So Google keeps inventing interesting online applications and Google Voice seems to be a good one. First, you pick a phone number (nearly any number as long as it's available and not one of your own). Then you enter your existing phone numbers (cell, home, work). You can then direct any call to that google voice number to your cell phone or work phone or home phone. Best of all, it's free... and so is the accompanying voice mail. Voice messages are even transcribed and can be received as texts. I'm not sure if I will actually use this until I can forward calls TO my google voice and then onwards (from work to google to my cell). Like most people my work number is not easily changed.

Google Voice also has a great calling feature. Online you can enter a phone number, and google will call that number and forward it to you via your google voice number. The calling rates are free in the U.S. and seem to be very inexpensive globally (6 cents per minute to cell phones in South Korea). And now the days of needing someone to call you to get out of something are long over. Only when you answer your own call, the person you called might be confused by your Hello. What will Google roll out next? My guess is Google thoughts- it reads your mind and transcribes your thoughts into easily sendable e-mails.

How to Reform Health Care Reform

Clearly the interest groups are lining up to kill Obama's Health Care Reform. There is simply too much money to be made out there by Insurance Companies, Drug Companies, Doctors, and Hospitals. But what is the correct action to take to help fix this mess? That seems to get lost in the shuffle unless correct = profitable.

I found this Talk of the Nation piece to be outstanding. Arnold Relman, former editor-in-chief of the New England Journal of Medicine and retired M.D. says President Obama's health care plan won't work. He outlines the changes he thinks are necessary for success (but are missing) in the plan.

In an earlier New York Review of Books Relman frames the issue:

The central problem is its expense. Health care in the US is about twice as expensive per capita as in other developed countries—nearly 17 percent of US GDP in 2008—and its costs are rising faster. High costs partly account for another huge health care problem—nearly 50 million people are uninsured, and the number is rapidly increasing. Economists say that the main reason for high costs is the ever-expanding use of expensive kinds of diagnosis and treatment, such as new drugs, diagnostic tests, imaging methods, and surgical procedures. Physicians in most other advanced countries have access to virtually the same resources, but use them less.

For those of you not interested in listening, here is the synopsis: doctors need to be employees (not independent contractors) who are paid a salary (not by the test/procedure/etc...). Doing that avoids incentives to either over-use (i.e. order more tests for more $) or under-use resources (insurance bonuses for ordering fewer tests). And he of course argues against private health insurance. I hope Obama and Congress heard the interview.

For the health care professionals who still falsely believe that lawyers are to blame for the meteoric rise in health care costs, here are some intelligent points/valid issues that I think are certainly worth discussing.

1- Do juries lack the technical medical expertise to be able to judge between competing medical experts? Are there alternatives or ways of fixing this?

2- When insurance companies pay to settle any case up to a certain amount, does that provide negative incentives for attorneys to bring frivolous claims? Do insurance companies only pay when lawyers are involved? What does that mean for injured individuals whose claim is not a slam dunk and thus not a case a lawyer is willing to accept on contingency? How much does it cost to try a med-mal case?

3- Could a bi-partisan (doctors and lawyers) panel review medical malpractice cases to determine whether the possibility of malpractice is more than just argument? Do we have the right to go to court? At what point does the cost of justice justify restrictions on it's access?

Have a great week everyone!

Leo's to open a coney in Chicago!

'Big news' out of Chicago... Leo's Coney Island is opening a location on Southport. More analysis after the jump.

LEO'S CONEY ISLAND IS COMING TO CHIGAO... AND DETROIT FOLKS ARE FLIPPING OUT

Posted by Kevin Pang at 6:20 p.m.

When I told a Detroit native last week that Leo's Coney Island is coming to Chicago, she practically flipped her lid. (Actually, she used more powerful and exotic language in describing her reaction, but needless to say she was quite excited).

It's a big enough deal that the restaurant chain has assigned its own Chicago-specific web site URL — leoschicago.com — which informs us on the homepage with much bravado that yes, "the rumors are true," Leo's is coming soon to the corner of Southport and Cornelia. From owner Lou Goldhaber: "We are doing everything we can to open as fast as possible. We are most likely opening late fall 2009."

The official web site describes its history as such:

Leo’s Coney Island was founded in 1972, and is a rapidly expanding full service food establishment. Leo’s has evolved from a limited menu offering the basics of Coney Islands, fries, burgers, and Greek salads to a wide selection. Its menu offers a full line of items for the whole family including Greek specialties, breakfast and a kids menu.

When I asked another friend, former Tribune entertainment reporter now at USA Today, Kelley Carter (a Detroit native), she told me, "now there may be no reason to go back to Detroit." Carter, a vegetarian, said, "the only thing that could break my no-meat diet is a Coney Island."

At its essence, a Coney Island is a long red hot link, topped with chili, raw onions and melted shredded cheese mustard in a steamed bun (thanks to Angela in the comments for the correction). Places like American Coney Island and Lafeyette Coney Island in downtown Detroit have battled for chili dog supremacy for years. But Leo's takes the chili-cheese-onions-meat concept and applies it in other entrees, such as omelets and loose meat burgers.

Carter tells me it's the type of place you'd go to after a night of clubbing and imbibing. "Nothing snaps you back into sobriety like a Coney Island from Leo's." I guess my question is what's the difference between a Coney Island and a chili dog? Semantics?

Anyone else from Michigan care to chime in about Coney Island dogs?

Having lived in Chicago, I can say with certainty that I did not miss Detroit because of the coneys. Don't get me wrong, I'm a big fan of coneys, but really just of diners in general. Leo's is just another coney chain, and there are a lot of them. There are Leo's all over metro Detroit, with Mr. Greek's on State Street the coney on Michigan's campus. Same basic stuff- greek salads, cheap omelettes, gyros, and the classic coney dog with onions and chili. It's cheap food and nothing to get that excited about. There are a lot of great diners in Chicago, too (Melrose being the one I frequented the most often).

My favorite 'coney' style restaurant is Little Daddy's near Inkster and Northwestern in Southfield (try the tommy salad, it's great). Lafayette Coney downtown is the REAL coney, with a lunch counter and everyone eating coney dogs. It's a good place to stop after a night out or before a tigers game. If they were to move (or the American Coney next door), that would be news. I guess it is a 'detroit' thing and that's what sucks, losing something even slightly original. But F you to all the people who only come back to detroit for the coneys.

Thanks to Jeff for alerting me to this nonsense.

Oh, and the first comment by the owner of the Ave Tav that he was the original seller of coneys? Whatever dude, I lived at that corner and you do fly Redwings and Tigers flags at appropriate times, but you also fly twins and any other flag that will get people in the door. It's worth the walk to the Tin Lizzie.

Compassion and Law

See more of Dana Summers here

The image of lawyers as sharks is something this culture (and plenty of lawyers) are happy to cultivate. In reality, compassion and empathy help to resolve more conflicts than hammers and ultimatums. For example, doctors who take the time to explain, listen and apologize for mistakes are sued far less than doctors who do not.

As a mediator, often the key to reaching an agreement is to help both sides understand each other's perspectives. But mediators do not have decision-making authority where judges and juries provide rulings and verdicts. Litigants do not check their emotions at the courthouse door any more than they do around the mediation table. Conflict is stressful. The rule of law must be followed, but it can and should be followed with compassion.

Left holding the bag (phone)

So I have about a year left on my t-mobile plan, and I called today to see how much it might cost me to terminate my plan on the early side. Since I am more than 6 months from the contract date, the fee is $200 per line or $400. As I will be traveling frequently this fall, I thought having a data phone/plan might be a good idea. I may even be able to leave my Macbook at home, saving me the airport security line hassle. Not to metion that the iphone and Palm Pre both look great.

Unfortunately the $400 is a bit too steep for me on top of the other costs. My plan B was to upgrade my phone to a blackberry (the only smart phone that works with T-mobile). I can pay $99 for one of those, AND sign a 2 year extension....or I can pay $399 without a contract extension. But... then I will need a data plan, and for that I need a, you guessed it, 2 year extension.

Is it just me, or is the technology quickly outpacing these cell phone contracts? Last august, a "talk all I want" family plan with two lines seemed like a great deal for $119 a month. Now sprint is offering an all-data family plan for $129 a month. Unfortunately the high early termination fee leaves me holding the bag (phone).

Today, the Senate Commerce Committee held hearings on cell phone carriers and exclusive manufacturer agreements. Clearly with the Blackberry Storm, the iphone, and the Palm Pre exclusively offered on three different carriers, competition in this high-end market seems to be flourishing. But with high early termination fees it becomes very difficult to either upgrade your phone OR your plan OR switch carriers without exorbitant costs or additional 2-year contracts. The pace of technology only exacerbates things with today's great deal quickly becoming yesterday's lemon and tomorrow's headache.

With Verizon, Sprint, AT&T, and T-Mobile entering exclusive agreements, the smaller companies (i.e. U.S. Cellular) are left with the dumb phones, and are unable to compete. In the Washington Post, dated tomorrow, Senator John Kerry poignantly asks why it is that when we access a particular broadband service we are not required to do so on a Mac versus a Dell? (Incidentally, I enjoy reading tomorrow's news almost as much as I enjoy watching fair and balanced cable TV "news.")

IMO There should be no required plan extension for upgrading your phone or your plan. I don't think cell phone plans should exceed 1 year (if that), which would provide for competition between carriers to provide incentives for customers to renew their contracts. Which might actually lower plan costs and improve quality... isn't that what competition is for!?

Of course Comcast is my favorite company to hate on. They are so evil that the website linked to above is just a blank page. If you stare at the screen (like you would one of those magic eye pictures, see below), you can see a message instructing you to get the Comcast triple play. Amazingly no one seems to realize that triple plays are only great when your team is in the field. In my case Comcast is a necessary evil (I'm up at bat) until AT&T builds another U-Verse station about 1,000 feet closer to my house. Yes it is available in more than 1 million michigan homes, just not mine. As I am not willing to mount a dish to my roof I have no other cable TV options. Which explains why there is no need for Comcast to bind me to a long-term contract.

I dream that someday I will pause my dvr while watching Mythbusters, go upstairs to watch, and on the stairs I will stop to check the weather on my iphone. Until that day I will fall asleep watching downstairs, only to wake up to realize that it was not a nightmare- I am stuck with T-mobile. Stuck with one more year of texted tigers score updates, flight departure times, and the weekend weather forecast. Which thankfully is also available today.