Re: Bankers' Group Revisits Effects of Mold on Real Estate

[Guest guest]

Here are the links to the actual press release and updated white paper.

They need to do more work on this, but this is another step in the right

direction.

http://www.mortgagebankers.org/NewsandMedia/PressCenter/55663.htm

http://www.mortgagebankers.org/files/CREF/committees/UnderwritingandClosing/Mold\

PapterUpdated7_07.pdf

tigerpaw2c <tigerpaw2c@...> wrote:

Bankers' Group Revisits Effects of Mold on Real Estate

Realty Times - TX*

by Al Heavens

http://realtytimes.com/rtcpages/20070726_moldeffects.htm

Concerns about mold and its potential effects on indoor air quality

and property values appear to have taken a back seat to other real

estate issues, but that doesn't mean that someone isn't thinking

about.

For example, the Mortgage Bankers Association last week published an

update of a white paper on the effects of mold in the commercial and

multifamily realm, " to reflect the most current information on mold

mitigation, standards for conducting mold assessments, legal issues

and insurance issues. "

Don Glitz, corporate insurance risk manager of Capmark Financial

Group, explained that the update was " an attempt to eliminate

the 'misinformation' that exists with regard to the mold issue. "

The update, the bankers' group cautioned, is only a " snapshot, "

since, as with many environmental issues, changes in the way mold is

viewed and handled can occur frequently with research.

The reason for the continued interest in mold by lenders is obvious.

Mold and dampness can directly damage buildings and their contents,

but there are other repercussions, including a reduction in cash

flow through lost rents or rental value and expenditures for

remediation costs.

When mold issues are uncovered in a building, whether residential or

commercial, there is a perception that the structure has become

unfit or unusable, and that can result in a loss of market value.

After Hurricane Katrina, for example, some real estate agents in

areas of Louisiana and Mississippi were reporting that many buyers

were pulling out of deals if they even minor exterior damage to

homes that could result in mold issues.

In addition, as the MBA white paper, points out, there are costs of

litigation with tenants, purchasers of property or persons who claim

to have been injured.

The chief concern has been with black mold. While less common than

other molds, this one is more dangerous to humans because, given the

proper environmental conditions, it can create multiple toxic

chemicals called mycotoxins. These toxic byproducts exist in the

spores of the mold, as well as in the tiny fragments that can become

airborne. Of particular concern is the threat that humans will

inhale and ingest these toxic spores.

According to the Centers for Disease Control and Prevention, there

are few case reports that toxic molds inside homes can cause unique

or rare health conditions such as pulmonary hemorrhage or memory

loss. A causal link between the presence of a toxic mold and these

conditions has not been proved, the agency says.

For the last few years, insurance companies have become unwilling to

write new policies and have been excluding coverage of mold from

existing ones. Such coverage as is available is underwritten as part

of a " stand-alone " environmental insurance policy. There has not

been any significant increase in the availability of coverage for

mold as more information on it has become available, according to

the mortgage bankers team.

Air quality issues " also may act as a negative constraint on a

lender's or servicer's decision to foreclose and resell, continue

operations or abandon property, " the mortgage bankers' group

observed.

Even before Hurricanes Katrina and Rita, New Orleans' mold problems

were out of control, owing to the region's humid climate. With so

much standing water for so many weeks and months, and no way to dry

things out quickly, " you're able to find just about every variety of

it, " said Panico, who is an expert on flood and fire cleanup

issues.

That's why the best course of action when mold or moisture is found

is to take care of the problem quickly, the MBA said.

Avoidance or reduction of mold risks begins at the moment the first

sketch for a new structure is put on paper and involves proper

selection and use of professionals, contract terms, contractors,

subcontractors, design and engineering professionals, materials and

construction techniques, as well as ongoing inspection,

documentation and a complete moisture-management assessment plan.

For existing buildings, mold cleanup first requires elimination of

moisture that is fueling the mold growth. The next step is to

conduct a detailed visual inspection of the affected area to ensure

that the full extent of an outbreak is determined and additionally

to demonstrate that an outbreak is in fact limited in scope or

severity.

Mold and materials technology continue to become more effective.

There are continuing developments in technology to detect hidden

moisture as well as new or improved building materials that are

immune to or resist mold attack.

This may lower remediation costs and increase confidence in the

effectiveness of the cleanup work that has been done.

Published: July 26, 2007

---------------------------------

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when.

[Guest guest]

Thanks KC.

--- In , " tigerpaw2c " <tigerpaw2c@...>

wrote:

>

> Bankers' Group Revisits Effects of Mold on Real Estate

> Realty Times - TX*

> by Al Heavens

>

> http://realtytimes.com/rtcpages/20070726_moldeffects.htm

>

> Concerns about mold and its potential effects on indoor air quality

> and property values appear to have taken a back seat to other real

> estate issues, but that doesn't mean that someone isn't thinking

> about.

>

> For example, the Mortgage Bankers Association last week published

an

> update of a white paper on the effects of mold in the commercial

and

> multifamily realm, " to reflect the most current information on mold

> mitigation, standards for conducting mold assessments, legal issues

> and insurance issues. "

>

> Don Glitz, corporate insurance risk manager of Capmark Financial

> Group, explained that the update was " an attempt to eliminate

> the 'misinformation' that exists with regard to the mold issue. "

>

> The update, the bankers' group cautioned, is only a " snapshot, "

> since, as with many environmental issues, changes in the way mold

is

> viewed and handled can occur frequently with research.

>

> The reason for the continued interest in mold by lenders is

obvious.

> Mold and dampness can directly damage buildings and their contents,

> but there are other repercussions, including a reduction in cash

> flow through lost rents or rental value and expenditures for

> remediation costs.

>

> When mold issues are uncovered in a building, whether residential

or

> commercial, there is a perception that the structure has become

> unfit or unusable, and that can result in a loss of market value.

>

> After Hurricane Katrina, for example, some real estate agents in

> areas of Louisiana and Mississippi were reporting that many buyers

> were pulling out of deals if they even minor exterior damage to

> homes that could result in mold issues.

>

> In addition, as the MBA white paper, points out, there are costs of

> litigation with tenants, purchasers of property or persons who

claim

> to have been injured.

>

> The chief concern has been with black mold. While less common than

> other molds, this one is more dangerous to humans because, given

the

> proper environmental conditions, it can create multiple toxic

> chemicals called mycotoxins. These toxic byproducts exist in the

> spores of the mold, as well as in the tiny fragments that can

become

> airborne. Of particular concern is the threat that humans will

> inhale and ingest these toxic spores.

>

> According to the Centers for Disease Control and Prevention, there

> are few case reports that toxic molds inside homes can cause unique

> or rare health conditions such as pulmonary hemorrhage or memory

> loss. A causal link between the presence of a toxic mold and these

> conditions has not been proved, the agency says.

>

> For the last few years, insurance companies have become unwilling

to

> write new policies and have been excluding coverage of mold from

> existing ones. Such coverage as is available is underwritten as

part

> of a " stand-alone " environmental insurance policy. There has not

> been any significant increase in the availability of coverage for

> mold as more information on it has become available, according to

> the mortgage bankers team.

>

> Air quality issues " also may act as a negative constraint on a

> lender's or servicer's decision to foreclose and resell, continue

> operations or abandon property, " the mortgage bankers' group

> observed.

>

> Even before Hurricanes Katrina and Rita, New Orleans' mold problems

> were out of control, owing to the region's humid climate. With so

> much standing water for so many weeks and months, and no way to dry

> things out quickly, " you're able to find just about every variety

of

> it, " said Panico, who is an expert on flood and fire cleanup

> issues.

>

> That's why the best course of action when mold or moisture is found

> is to take care of the problem quickly, the MBA said.

>

> Avoidance or reduction of mold risks begins at the moment the first

> sketch for a new structure is put on paper and involves proper

> selection and use of professionals, contract terms, contractors,

> subcontractors, design and engineering professionals, materials and

> construction techniques, as well as ongoing inspection,

> documentation and a complete moisture-management assessment plan.

>

> For existing buildings, mold cleanup first requires elimination of

> moisture that is fueling the mold growth. The next step is to

> conduct a detailed visual inspection of the affected area to ensure

> that the full extent of an outbreak is determined and additionally

> to demonstrate that an outbreak is in fact limited in scope or

> severity.

>

> Mold and materials technology continue to become more effective.

> There are continuing developments in technology to detect hidden

> moisture as well as new or improved building materials that are

> immune to or resist mold attack.

>

> This may lower remediation costs and increase confidence in the

> effectiveness of the cleanup work that has been done.

>

> Published: July 26, 2007

>

[Guest guest]

That was a depressing read. Its all about the money!

Brown <charlesb35@...> wrote: Here are the links to the

actual press release and updated white paper.

They need to do more work on this, but this is another step in the right

direction.

http://www.mortgagebankers.org/NewsandMedia/PressCenter/55663.htm

http://www.mortgagebankers.org/files/CREF/committees/UnderwritingandClosing/Mold\

PapterUpdated7_07.pdf

tigerpaw2c <tigerpaw2c@...> wrote:

Bankers' Group Revisits Effects of Mold on Real Estate

Realty Times - TX*

by Al Heavens

http://realtytimes.com/rtcpages/20070726_moldeffects.htm

Concerns about mold and its potential effects on indoor air quality

and property values appear to have taken a back seat to other real

estate issues, but that doesn't mean that someone isn't thinking

about.

For example, the Mortgage Bankers Association last week published an

update of a white paper on the effects of mold in the commercial and

multifamily realm, " to reflect the most current information on mold

mitigation, standards for conducting mold assessments, legal issues

and insurance issues. "

Don Glitz, corporate insurance risk manager of Capmark Financial

Group, explained that the update was " an attempt to eliminate

the 'misinformation' that exists with regard to the mold issue. "

The update, the bankers' group cautioned, is only a " snapshot, "

since, as with many environmental issues, changes in the way mold is

viewed and handled can occur frequently with research.

The reason for the continued interest in mold by lenders is obvious.

Mold and dampness can directly damage buildings and their contents,

but there are other repercussions, including a reduction in cash

flow through lost rents or rental value and expenditures for

remediation costs.

When mold issues are uncovered in a building, whether residential or

commercial, there is a perception that the structure has become

unfit or unusable, and that can result in a loss of market value.

After Hurricane Katrina, for example, some real estate agents in

areas of Louisiana and Mississippi were reporting that many buyers

were pulling out of deals if they even minor exterior damage to

homes that could result in mold issues.

In addition, as the MBA white paper, points out, there are costs of

litigation with tenants, purchasers of property or persons who claim

to have been injured.

The chief concern has been with black mold. While less common than

other molds, this one is more dangerous to humans because, given the

proper environmental conditions, it can create multiple toxic

chemicals called mycotoxins. These toxic byproducts exist in the

spores of the mold, as well as in the tiny fragments that can become

airborne. Of particular concern is the threat that humans will

inhale and ingest these toxic spores.

According to the Centers for Disease Control and Prevention, there

are few case reports that toxic molds inside homes can cause unique

or rare health conditions such as pulmonary hemorrhage or memory

loss. A causal link between the presence of a toxic mold and these

conditions has not been proved, the agency says.

For the last few years, insurance companies have become unwilling to

write new policies and have been excluding coverage of mold from

existing ones. Such coverage as is available is underwritten as part

of a " stand-alone " environmental insurance policy. There has not

been any significant increase in the availability of coverage for

mold as more information on it has become available, according to

the mortgage bankers team.

Air quality issues " also may act as a negative constraint on a

lender's or servicer's decision to foreclose and resell, continue

operations or abandon property, " the mortgage bankers' group

observed.

Even before Hurricanes Katrina and Rita, New Orleans' mold problems

were out of control, owing to the region's humid climate. With so

much standing water for so many weeks and months, and no way to dry

things out quickly, " you're able to find just about every variety of

it, " said Panico, who is an expert on flood and fire cleanup

issues.

That's why the best course of action when mold or moisture is found

is to take care of the problem quickly, the MBA said.

Avoidance or reduction of mold risks begins at the moment the first

sketch for a new structure is put on paper and involves proper

selection and use of professionals, contract terms, contractors,

subcontractors, design and engineering professionals, materials and

construction techniques, as well as ongoing inspection,

documentation and a complete moisture-management assessment plan.

For existing buildings, mold cleanup first requires elimination of

moisture that is fueling the mold growth. The next step is to

conduct a detailed visual inspection of the affected area to ensure

that the full extent of an outbreak is determined and additionally

to demonstrate that an outbreak is in fact limited in scope or

severity.

Mold and materials technology continue to become more effective.

There are continuing developments in technology to detect hidden

moisture as well as new or improved building materials that are

immune to or resist mold attack.

This may lower remediation costs and increase confidence in the

effectiveness of the cleanup work that has been done.

Published: July 26, 2007

---------------------------------

Sick sense of humor? Visit TV's Comedy with an Edge to see what's on,

when.