Tompkins governments, Hinchey draw attention to drilling’s impact on mortgages | The Ithaca Journal | theithacajournal.com

Tompkins governments, Hinchey draw attention to drilling’s impact on mortgages | The Ithaca Journal | theithacajournal.com.

Tompkins governments, Hinchey draw attention to drilling’s impact on mortgages

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Ithaca — Mortgage rules governing gas drilling are in question following reports in The New York Times and by the Tompkins County Council of Governments’ Task Force on Drilling.

The reports have led Congressman Maurice Hinchey, D-22nd, to send letters to the Federal Housing Finance Agency and the NYS Department of Environmental Conservation, asking they initiate an examination of how mortgage rules on gas drilling will affect more than 1 million gas leases signed between shale gas drilling companies and property owners.

Some banks have policies of not offering mortgages on properties with gas leases. As a result, some landowners have had difficulty selling or refinancing their homes.

The Tompkins County Council of Governments’ Task Force on Drilling asked state officials in May to implement requirements as part of gas drilling regulations to prevent unintended negative consequences on the realestate market and county assessment rolls.

A subcommittee of the task force reported that lenders are reluctant to approve residential mortgages on the increasing number of properties where leases do not conform with regulations of thesecondary mortgage market.

Hinchey said this week that the problem can be attributed to rushing into drilling.

“Many homeowners who signed leases now have questions about their mortgages and their ability to refinance or resell their homes, because important information was not brought to their attention by drilling companies pushing to them to lease their land,” Hinchey said.

Hinchey said he has asked federal and state regulators for clarification on mortgage rules and an examination of leases that were already signed to determine the extent of mortgage violations that may have occurred.

New guidelines will help homeowners and local banks protect their own financial interests, he said.

Rush to Drill for Gas Creates Mortgage Conflicts – Ian Urbina, NYTimes.com 10-20-11

Rush to Drill for Gas Creates Mortgage Conflicts – NYTimes.com.

Check out this article in today’s New York Times:
There’s some really important documents that explain out all of the details about what the conflicts are and what rules are being broken.  You can read through them here, and they’ve got little bubbles that show you what the important parts are and what they mean.  Very worth checking out.
It makes sense. Fracking for shale gas and oil requires thousands of wells, many of which are drilled near where people live.  Drilling accidents and the environmental problems with fracking happen on land that people own, land that people have mortgages on, land whose property value will plunge if the water goes bad or people get sick.  The mortgage industry wrote up rules that are supposed to protect banks against these risks.  These rules would bar wastewater impoundment pits near people’s houses, would require minimum distances between a home and a gas well, would give the bank the right to review the lease the landman was offering so they could make sure the gas company wouldn’t be allowed to tear up the surface of the land.  But these rules aren’t being followed.
Check out some of the documents that explain how some small bankers and credit union officials see the problems:

Elizabeth Radow on Real Estate impacts of Residential Drilling on The Capitol Pressroom for October 3, 2011 | WCNY Blogs

The Capitol Pressroom for October 3, 2011 | WCNY Blogs.

Coming up on the Capitol Pressroom –

Brian McMahon, ED of the NYS Economic Development Council helps us understand how the 4+ billion dollar investment in the state by high tech firms will work.

And

Elizabeth Radow, Special Counsel in the firm of Cuddy and Feder, with duel expertise in real estate finance law and transactional law has some legal advice for New Yorkers who have signed leases with gas drillers. Specifically, she has up-to-date information about insuring yourself against
liability. Radow is in the New York State Bar Association’s Real Property and Environmental, Energy and Resources Section.

Attorney Elizabeth Radow will be appearing as a speaker along with Al Appleton at the Mamaroneck Public Library at 7pm – 9pm tomorrow for a program focusing on gas drilling’s impacts to county residents. She will specifically address the risks from underinsured gas companies to homeowners, the secondary mortgage market and ultimately, taxpayers. Al Appleton, former commissioner of the New York City Department of
Environmental Protection will be speaking as well For more information on this forum called:

“Why Natural Gas Drilling in Upstate NY Impacts Westchester County Residents”

FOR MORE INFORMATION, CONTACT:
Elisabeth Radow, (914) 761-1300; (914) 833-3753

Posted in : Capitol Pressroom

Land grab sets up taxpayers for fracking fall-out

Land grab sets up taxpayers for fracking fall-out.

Aggressive upstate land grab sets up taxpayers for fracking fall-out

Aggressive upstate land grab sets up taxpayers for fracking fall-out.

Local bank officials: Chesapeake’s mortgaging of mineral rights won’t affect homeowners’ applications for mortgages – News – Daily Review

Local bank officials: Chesapeake’s mortgaging of mineral rights won’t affect homeowners’ applications for mortgages – News – Daily Review.

Ward: Gas company financing is preventing residents from getting mortgages – News – Daily Review

Ward: Gas company financing is preventing residents from getting mortgages – News – Daily Review.