2010/ 2011 CE Classes
Offered Monthly at PLI
Join The Next class
November 15th & 16th December 2nd & 3rd
Send us an email www.pli4u@aol.com Visit our website www.pli4u.com Call 502-896-2020
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How Good Will Inspections Get?
How Low Can Rates Go???
Mortgage rates hit the lowest rates in U.S. history last week.
The record broken was ... last week's all time-time record low. Which broke the record low of the week before.
That news may drive home inspections toward the best news in Kentucky since 2008.
That's not all. Rates are going lower, we predict. "Quantitative easing," the mind-numbing econ-word for printing more money is due right after the election. That always lowers interest rates -- and raises stock prices (which also helps people buy).
Banks are unloading an inventory of about 1 million foreclosed homes at the same time. Another 5.2 million homes are all set to be shoved onto the market when the foreclosure machine revs back up. About 1 in 4 Kentucky home sales already are foreclosures or "shorts."
No home needs a home inspection more than one sitting vacant after the occupants were thrown out. Evicted owners do not lavish care of the home. Buyers of those homes, especially, need home inspection info.
Across the rest of the market, meanwhile, home prices already are so tempting we know inspectors thinking about flipping houses! Even so, prices will slide down a little more still.
So the forecast shaping up now is a slower than usual year-end for 2010, followed by a steady ramping up of home inspections through 2011 and 2012.
Use the next three months for marketing, and hope the Kentucky Board of Home Inspectors does too. Catch up on that vacation in the next three months too. Then be ready to put on some help.
Lower Mortgages, Higher Action
We remember rates reaching 17% not all that long ago (when you're 60).
Today, rates for 30-year fixed rate mortgages averaged 4.19% nation-wide in the week ended Oct. 14, 2010, a record since tracking began. That was down from the prior week's record low of 4.27% and 4.92% a year ago.
Rates for 15-year fixed rate mortgages averaged 3.62%, down from 3.72% the week before and 4.37% a year ago, another record.
5-year Treasury-indexed hybrid ARMs lost their edge but set records anyway, averaging 3.47% , the same as last week's low and down from 4.38% this time last year -- a third record.
It was the third week in a row that mortgage rates set new all-time records according to mortgage giant Freddie Mac's benchmark survey results.
Average interest rates for standard 30- and 15- year fixed rate mortgages and 5-year ARM all sit today at rates lower than any on record since record-keeping began. Freddie Mac, which reports the rate weekly, has been tracking 30-year mortgages since 1971, the 15-year mortgage since 1991, and 5-year ARM rates since 2005. No doubt, these are the best mortgage rates in our lifetimes. Low but Highly Profitable
Even so, the rates actually look pretty greedy economically.
Why? Banks are getting the money they lend at nearly no cost -- about zero interest -- from the Fed, from depositors, and from retirees using CDs . You can make serious bucks selling stuff that costs you roughly nothing.
Banks basically are in the business of renting money. Banking is buying money low and leasing out for higher prices. They get money to loan from depositors like us and from others, like the U.S. Treasury and the Federal Reserve. Right now, what banks pay for savings deposits and CDs is next to zero. The Treasury money is about the same. (The yield on $10 billion of Treasury bonds sold 10/25 actually was negative -- -0.55%. That means a $100 bond , a promise to pay back a $100 loan, cost $105!).
The math - what economists call the "spread" between banks' cost of money from Federal Reserve loans, Treasury loans, and savers, versus their price for money sold as consumer mortgage loans - says mortgage loans should be even cheaper still. The difference, or spread, from next to zero money costs for banks to around 4-6% to rent it out in a mortgage - is huge. For comparison, groceries like locally headquartered (Cincinnati) Kroger turn huge profits with a 1.42% return on its equity and profit margins around 2%. A truly fat spread -- like 4 to 6% compounded annually -- is one reason the biggest U.S. banks nearly doubled their total earnings in the third quarter of 2010.
Leave aside whether or not you like this. Sure, there's room to call that kind of monster spread a concealed bank bailout or subsidy. Sure bankers are funded now first by chiseling prudent savers, especially retired folks counting on interest from their CDs. Then bankers are subsidized by the Fed keeping interest rates near zero for banks. Then they soak mortgage borrowers with huge spreads. OK, not an entirely pretty picture. On the other hand, from where a banker sits counting money, historically low costs, great spreads, and high profits are pretty good reasons to do mortgage loans.
How Low?
People have been saying mortgages just can't go any lower. In fact, they've been saying that for over a year as rates keep sliding down.
We wonder what they're thinking. Assuming they're thinking. We have to wonder, because some people saying that have a vested interest in getting people to rent money now.
For ordinary Americans, "zero interest" is not an idea no one's ever heard about. It's hard to open a paper without seeing a car deal with zero interest.
An people just loaned a few billion to the Treasury at last week's auction at a rate below zero (-0.550%).
We're not saying mortgages will ever be sold with zero interest, not matter how close that price is to what banks are paying for the money they loan. But there's plenty of room left to go, especially before banks spreads get back where they were historically.
If mortgage rates cross 4.5% by mid-summer, we'd be surprised. If they go lower, we won't be.
The Difference for Home Inspectors
What does it mean for home inspectors?
Great news. Record low mortgage interest rates produce home buyers.
But not great news for everyone. The market is splintering.
Thousands of foreclosures are flooding Kentucky every month, driving out new construction. New construction is no big loss to home inspectors. Kentuckians haven't learned to inspect new homes as much as they do used homes.
Foreclosure buyers need to be reached. Many think they don't need a home inspection because it's sold "as is."
In fact, foreclosed homes need inspections more than the average home purchase. They don't get TLC.
Though agents sometimes say otherwise, the fact it's being sold "as is" does not mean you have to buy it. While the market is drowning in foreclosures, selling fast is more important to lenders than price. If an "as is" foreclosure won't budge on price because of problems found by inspectors, there are plenty of other foreclosures out there.
Just this week, we inspected another foreclosed home for a couple. It was the second foreclosure we inspected for them. They loved the first one, but the inspection made them rethink price. They gave up after waiting weeks for the bank to answer. Boy are the glad they did!
The second house one was more bedrooms, better condition, no septic, closer to work, and lower priced - on a lake, to boot. They were thrilled. The inspection report gave them no chills. Even though they wished they hadn't spent a dime on the first house, of course, they knew it was money well spent. They easily saved the $1,000 they spent checking out the first house on the price of the second home - and they got lots more home, and lots less trouble, for their money.
Jokers in the Deck
Still, we've never seen this before, or it wouldn't be "record" lows. So the forecast has fuzzy spots.
It's clear historically low mortgages will sell houses. It's clear practically all of them will be used. New construction will be held way down by all the foreclosures pushing down prices. Home inspectors do lots more used homes than new.
What's not clear is how many houses will sell, how soon.
In other words, the big "if" is not whether homes sales will go down any more. Don't bet on that. The big question is how much home sales will go up, how soon.
Unemployed people can't get mortgages. Unemployment is monstrous, and hanging on.
Most people need to sell their home to buy the next one. Home owners who want to move usually can't sell when they're "underwater" (in a house worth less than the mortgage). That's another 1 in 5 homeowners on "home incarceration" today, in homes underwater.
Then banks got hit by a depth charge this month, slowing down foreclosure action in 23 states, including Kentucky and Indiana, where courts do foreclosures. It turned out mortgage collectors were "robo signing" false affidavits in courts of the 23 states that require judges to approve foreclosures. When they started to unravel, then it developed that banks could not come up with the loan documents the robo-signers swore they saw in making up those affidavits.
New construction basically is at a standstill, waiting to drain off the bargain basement foreclosed homes. Nobody can build new homes cheaper per foot than lenders can dump foreclosed homes.
Which means the usual holiday slowdown in home inspecting will arrive earlier - like now - and end sooner, like January.
More Demand, Less Supply
You might think all that unemployment might bring new home inspectors into the business. After all, unemployment is sky high in construction trades. It hasn't worked out that way. Licensing seems to have cramped that fallback, compared to the old days were an out of work construction guy might slap a home inspector sign on his truck to tide himself over.
There's been a net loss of home inspector licenses in Kentucky practically every month this year.
The message there: Inspection prices should start going up for good inspectors. They're the only one with the intestinal fortitude to keep raising their prices.
More demand buying less supply pushes prices for inspections up -- except in the bargain basement.
Part-timers and inspectors hustling clients to sell other stuff will struggle to book work.
There will be less supply of inspectors and more demand for inspections. But the demand will be better informed.
Only people with high credit ratings will get mortgages for at least the next year. Those are careful people. They do their homework. They didn't buy the cheapest car or college. They know the importance of buying well. Their experience tells them the cheapest stuff usually ends up disappointing and costing more. When it comes to home inspections, they'd be right.
Home inspectors to charge fair prices that they are worth will do well.
The buyers that can't pay are the problem clients. They're stretching to buy rundown houses, so when things go wrong - and they will, more often, in those homes - lots more of them look for somebody else to pay, like the home inspector. Bottom fishing $199 home inspectors and those problem clients probably deserve each other. They will keep finding each other in 2011. We'll see them together again in court action in 2012.
Home inspectors who know what they really are worth should be planning for a more profitable 2011. Start by marketing now.
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Engineers Busted for "Home Inspections"
One claimed Professional Engineers did not need a home inspector to license to do home inspections in Kentucky. Another advertised he was a "Certified Building Inspector."
You've heard it all before. But here's a new twist: You won't be hearing it any more!
Both are BUSTED.
No, not by the Kentucky Board of Home Inspectors (KBHI).
The Kentucky State Board of Licensure for Professional Engineers and Land Surveys (BPE) acted instead. A hearty thanks to our Northern Kentucky inspecting pros who knew a law-breaker when they saw one - and did something about it. Every home inspector in Kentucky takes their hats off to you!
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| CE Classes Every Month For Your Convenience
Schedule Your 2010-11 CE Classes
PLI offers CE classes every month in Louisville. Get all 14 CE hours! Next year you will not have to take Law & Regs, SOPs and Manufactured Housing. You can pick from a list of other KBHI approved courses.
November 15th & 16th December 2nd & 3rd Welcome 2011 January 16th & 17th
New Classes for 2011.
Remember: Send us your photographs of those unbelievable sights that keep home inspectors talking.
pli4u@aol.com.
Call 502-896-2020.
Provider # KBHI:P-1001 CE-1002 KBPE License R-0403
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Inspector News of the Month
Gary Brewer, West Point Kentucky brush fire.
Gary Brewer is a licensed home inspector in the West Point area, not far from all the building and relocation action around Ft. Knox. He's also a terrific bluegrass singer and hot on the banjo, one of the few musical instruments invented in America (he's got some fine chops on guitar too, we're told). He's got about 50 CDs out there. You can catch his act at Renfro Valley from time to time. Don't miss it! And he's among the expert home inspector network of PLI alums. He played at the Extreme Makeover. "We had people out here dancing and toe-tapping," he commented in The Courier-Journal (10/28). That put it mildly. One of the strange moments at the Extreme Makeover: Home Edition build in Fairdale last week was the moment when volunteers, cued up to dig in, paused ... sniffed smoke ... and noticed ashes falling on the dry brown grass. Holy mackerel! Don't tell me... Turned out Ft. Knox had a huge forest fire ranging after a artillery practice. It's smoke and ash was so thick, it blew a few miles north to Fairdale -- and left ashes dropping on our hard hats the first two days.

Little did we know, it also came way too close to Brewer's home. He brought the pics when he arrived to entertain -- with his Dad and both sons. He was a little beat though. He's been up all night with a hose near his corn field to be safe. Way to go Gary! What a performance! Back to top
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Here's One 4 the Books!
DIY Manuals Recalled
Over a half-million home repair books that could get consumers shocked or start a fire are being recalled, the U.S. Consumer Product Safety Commission said Oct. 1, Steve's birthday.
The books are from Oxmoor House, which also markets Southern Living and Sunset branded books. About 951,000 home improvement books with similar faulty wiring instructions were recalled in January, 2010. Many are out of print but still on shelves. Details, with copies of the covers, are at http://www.cpsc.gov/cpscpub/prerel/prhtml11/11701.html
All told, that means there are about 1.5 million DIY manuals out there telling handymen how to start electrical fires or shock out. And you thought it was the handyman!
"You can do it," some home improvement store's ad said! NOT! this way.
The recall in January included the AmeriSpec Home Repair Handbook published 2006, Lowe's Complete Home Improvement and Repair, published 2005, and Lowe's Complete Home Wiring, published 2008. The books were sold nationally from 1/75 through 12/09. The CPSC knew of no houses torched yet. That's reassuring.
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THE THRILL IS GONE One Complaint, One Blues Singer
"For me, it's sucked all the joy out of the home inspecting I love," one of the excellent home inspectors we know told us the other day. We know how he feels. PLI has been helping home inspectors with their problems for years. He's not the first home inspector who felt that way. We hear lots of problems from home inspectors, partly because the Kentucky Board of Home Inspectors (KBHI) has a knack for creating problems for inspectors. It's not a place famous for helping home inspectors solve problems. Problems with complaints to the KBHI are some of the most scary, bad news problems for inspectors. It comes up in PLI classes often. Why spend all that money - the $500 renewal, the CE, the insurance - and time getting a license if nothing bad ever happens to people without a license, and the only people who get in trouble are the good guys, who followed the rules and get their licenses This, bluntly, is a travesty. The prime purpose of professional discipline is to improve behavior.
It only affects one unknown if people can't look up the facts and the issues, and find out the right answer. That's how folks figure out what they're supposed to do and what it's fair to expect from home inspectors. But any prospect of those good outcomes is destroyed by the Board's secret decisions and incompetent record keeping.
When nobody knows what did, or did not, result in discipline, and why, it's not just ineffective, it is counterproductive. The Board is stuck with the same issues and the same complaints repeatedly. Inspectors, agents, and the general public have to guess what the right thing to do, or not do, might be. When we'd talked before, he'd asked "what's the worst they can do to me?" "There are five enumerated punishments," I explained. "The worst is that they can do revoke your license. They definitely can't fine you. They tried to get fines and lost." I could swear I could hear B. B. King, strumming Lucille. The thrill was gone. On second thought, maybe he had a point. Maybe it wouldn't be so bad after all.
Quotes
PLI verifies KBHI meeting quotes on PLI's tapes of meetings. We used to check the Board's official recording. But the Board stopped recording its meetings about a year ago, despite advice that taped meeting records were important to all other state boards. Today, PLI has the only complete taped record of KBHI meetings. They've already had more than one dispute about what was said when it came to approving minutes of prior meetings - with no tape to guide them. Just wait 'til they get in their first lawsuit and try to explain they stopped taping meetings, unlike practically all other DHBC agencies, because they did not want a record of what was said. Rumanchik will have a field day.
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PLI Benefits
Professional Learning.
nonstop. Only PLI delivers ALL inspectors needs ALL year long
ALL at incredible prices.
ALL the Breaking News inspectors need. Free!
Hot topics and technical excellence in CE. One referral desk for all inspectors - with any SOP!
Mentored "shadow" inspections -- just to get better. Contract reviews and updates. Experienced advice on handling 411 notices. Consults with local lawyers defending you. Expert witnesses for inspector and real estate cases. Manuals and handbooks - cheaper than the web! Tools (including IF) & safety gear - at PLI-only discounts. Top inspection software. Save hundreds $! With live help! Live problem desk. Same day service. Free to PLI grads. PLI speaks up for ALL inspectors at the KBHI.
How do you spell "Professional Backing for Professional Inspectors?" PLI.
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Please Read
We hope you find this helpful Please remember this is an informational and reporting service only. It is not legal, accounting, tax or other professional advice. It is not a substitute for a knowledgeable professional in the appropriate field acquainted with your individual situation. Readers should rely on their own professional advice, rather than any news or publication for their individual decisions. We're all in this together. PLI stays closely tuned to industry and professional developments, though PLI does not endorse or favor any organization, candidate or contribute to any campaigns. Updates on selected topics may be available. Please call or email. www.pli4u.com
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Greetings!
 Extremely
PROUD TO BE AN AMERICAN
ABC's Extreme Makeover: Home Edition just finished filming its second home build show here in Kentucky.
Our hearts are with houses, and the families that make them homes. Even so, this was special.
And we love the buildingest country on the planet - the U.S.A. This is a nation literally built by hand from dirt to world leadership, in everything from housing and building codes to computing, in about 200 years. No other nation comes close. So call it double special.
Connect those dots, and add that we're gonna give it all away after we finish, to a Kentucky family that can really use it, and it is extremely special!

Before
Extreme Makeover taps those threads of our lives and history. They arrived earlier this month. We joined them at the rally for the volunteers on a Saturday (10/16) in Louisville. The blueprints and build schedule had arrived for the home inspectors just a day or two before, so our group was rearin' to go.
This was one build to behold. The home was in Fairdale, KY, basically in a gully. The drop from the ridge at the rear to grade at the foundation was about 200 feet. Managing the water runoff was a construction project all by itself. A 40-foot retaining wall barricaded the back, uphill side, while a huge drain system diverted water to the left side.
Foundation Pour
The new home was near 4,500 square feet with five bedrooms (the family has six children, the youngest with Downs). It's on an unvented split-level crawl with a four-pipe radon mitigation system (there's a challenge). Plus, there's a four car garage and a gym in front on slabs, under metal roofs.
Home inspectors pulled their oar as part of the build team -- in more than one way! ServiceUSA owner and home inspector Ray Sandbek and PLI Dean & home inspector Steve Keeney were enlisted to be on site from start to finish. This was an extremely special use of home inspection skills and standards -- to pick up issues before a fix required costly, time-consuming repair. Sandbek was the former chairman of the Kentucky Board of Home Inspectors and one of Kentucky's first home inspectors.
West Point home inspector Gary Brewer and his bluegrass band entertained Wednesday. The group, which includes Brewer's father and two sons, was thrilled to do the show after PLI put them together with the Makeover crew. We were thrilled to listen, and always charged up to help PLI alums.
The climax was Thursday, Oct. 28 with the surprise "reveal" for the family. We think it's fair to say they had their breath taken away! As the saying goes, life is less about each breath you take than the moments that make you breathless.
Millions remember the first Louisville Extreme Makeover in November, 2007 (actually, more like a billion saw it, if you count the 69 other countries where it aired).
That build liberated a 19 year-old in a wheelchair named Patrick Henry Hughes. (We don't know if the parents were thinking of the American patriot famous for "Give me liberty or give me death" in 1775 but we chose to believe it.)
Patrick Hughes was born unable to straighten his arms and legs. He was in a wheelchair for life. Patrick also was born with no eyes. Against the odds, Patrick became a crowd-pleasing musician and an inspiration to the UofL marching band, not to mention us. But his home, like most, made it tough for someone in a wheelchair, or blind, to get around, especially on his own. (One day, we think our SOPs will expand to include client-specific inspections, like wheelchair radius in bathrooms and kitchens for wounded vets and folks like Patrick.)
 | | Joe Pusateri of Elite Homes |
Extreme Makeover changed all that for Patrick in 2007. Joe and Rocky Pusateri led the drive. The two brothers head Elite Homes in Louisville, a top-flight custom builder. There's video at www.eliteextremedream.com. It'll ring a bell. It changed the lives of thousands of volunteers who worked 'round the clock on site. And they've changed thousands more lives since.
That was a little shorter build. This was was about 110 hours straight to the "reveal."
Patrick dropped by the Saturday volunteers rally with his family. It's three years later now. You should've heard that young man sing and play piano! When you see and hear him play piano, you think it's a miracle.
We like a lot about Extreme Makeover (Sundays 8 pm, right before "Desperate Housewives;" go figure). We're fans of Joe and Rocky, of course, but we're just as big fans of the hundreds of Kentuckiana craftsmen and women who make it happen.
We like the way citizenship and community and loving your neighbor plays out loud through the whole effort. We like a wholesome TV show we can watch with our grandchildren without a second thought about bodycount, blood, naked bodies, or bad mouths that would put George Carlin's "Seven dirty Words" skit to shame. Some clips are at www.abc.go.com/shows/extreme-makeover-home-edition.
We like the profoundly American spirit of the whole thing. We like the reminder that if you leave Americans to their own devices, they can build great stuff and do the right thing.
We were pretty inspired by the fireplace guy who showed up at the rally on his crutch to be sure he'd start at just the right time. We liked the gusto of the Mexican crew that didn't even have an email address for scheduling but showed up to be sure they were on cue. These framers were awesome. And the guy with his ankle in Ace bandages and his foot in a brace was there to coordinate the ten workers he volunteered.
In fact, we were psyched by the whole huge crowd at the start-up rally. We liked the men and women on board, some with their kids. (Here's news: When we finished the build, there were nearly as many women working as men this year.) The rally crowd watched videos of the 2007 build, and over 100 other builds around the country, on those giant screens. They cheered and applauded.
It felt good because it was good. It was a good thing, a good place, filled with good people and a great heart.
Many folks there didn't know each other. What the heck. Everyone was there to help a family they didn't know either. What everyone did know was why everyone was there. No ego trips here, just teamwork. The purpose, the drive, and the dedication everyone shared was plenty. Our cup runneth over.
It reminded Steve of neighbors around his farm many years ago. When a neighbor's bull got loose, a neighbor brought it back. A neighbor shorthanded when it was time to bail hay knocked on a neighbor's door and got help. When he was a kid near Pennsylvania Mennonite country, he saw not just the classic story of rebuilding a burned barn, he saw neighbors from across the fields arrive in the same kind of cheerful crowd to built a new barn or a home.
Somehow it bought to mind that heroic effort in Chile's collapsed mine. No human ever survived being buried alive that long in all of mining history. No one even knew they were alive, and none of them knew they still were being looked for, for 17 days. The helmet lamps went dark down there after 3 days. A half-mile down, none of the trapped miners tried to save himself at the expense of others. The leader showed his mettle by choosing to be the last man lifted out. Top side, riveting international teamwork dug impossible shafts that found a needle in the globe's haystack. The whole country made it their job to leave no man behind. The President could've disappeared, fearing the worst. Nope, he was front and center. And all the miners came out alive, an incredible 69 days later. They never stood a chance alone. That's the right stuff.

Just Home Building,
Not "Dancing With the Stars"
"The world will little note nor long remember what we say here, but it can never forget what they did here" as President Lincoln put it so well in his "Gettysburg Address."
In its own way, this build is our community's resolution that we too are "for the people." Maybe no one will dance with the stars for doing this build, and maybe no one down the street, or down the years, will remember. Then again, that's what Abe Lincoln thought when he chose those words for his Address! But that's not what it was about, for Lincoln or this church full of people rallying to build.
It was about being part of something more than yourself, bigger than yourself, better than yourself.
The show will hit 200 builds sometime next year, in its eighth season. Ty Pennington, the host of the show, was there to MC the videos. The rest of the Extreme Makeover crew was a lot like the Louisville crowd (yes, he'd even picked up how to say "luavulle"). One crew member was an architect who volunteered, kept volunteering, and then went on the road with them. They finally decided to put him on the payroll. Pennington started out on the crew too, handling local coordination. "Uh, ma'm, we want you to know we're gonna bulldoze your neighbor's house and, if it's all right with you, we'd like to put 50 or 100 Porta-potties in your front yard, and maybe a caterer's tent out back. Oh, and about parking....."
Neighbor's Yard
Most of the people just wanted to know when we'd get started and how else they could help, Ty told us.
 | | Patrick Henry Hughes Performs |
Patrick got on stage at the rally and sang Brooks & Dunn and Elvis Presley. He topped it off with a credible Ray Charles standard, wearing sun glasses.
Most of all we love the feeling, the spirit, and the "can do" attitude of the volunteers all pulling together, helping each other, helping a total stranger. It was a beautiful thing.
First at the rally, then at the build, everybody was really happy to be there. Nobody was dragging in, unhappy to be there, like you see at some state government meetings. The whole thing really was more than the sum of the individual parts.
We were going to build something. Something special. We were going to build it really well, in less time than it takes to get a mail order package. And we were going to give it away. We were going to doing it all because we believed in the idea and each other.
This crowd really, truly, down to the bone believed they could do good for some unknown neighbor else and leave the world a little better place than they found it.
It electrified the whole crowd. It's not every day you get the chance to really throw some sunlight into someone else's life. Early in the rally, Joe asked if everyone was ready to start to build tomorrow. The crowd roared "Yes," instantly, no hesitation - even though that would have been a week ahead of schedule.
This is what it's all about.
We were reminded again how proud we were to be Americans, extremely proud. With our lives built around our American homes.
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Clean Sweep At the KBHI
Non-home inspectors now hold the majority of votes on the Kentucky Board of Home Inspectors (KBHI). It's five non-home inspectors, all from allied real estate fields plus the public member, and two home inspectors, with three home inspector vacancies on the Board. Don't think that's an oversight. The Board's home inspector have been hassling the Governor's Office appointments chief, for the last year to get the vacancies filled. In response, Gov. Beshear installed three new members, all non-home inspectors. Let's just assume the Governor can count. That means the Governor handed control of the KBHI to non-home inspectors. That's a blunt message that's it's time for a change and get that house in order. It's less embarrassing to everyone than removing someone. That would require "incompetence, neglect of duty, or unprofessional conduct" under the statute, so why go there? As of today, the Governor has had names for a Selection Committee on his desk for 11 months. Two of the home inspector vacancies on the Board have been empty over a year. One home inspector vacancy was just added, when former chair Mike Patton resigned after his term expired. But nothing happened, despite all those KBHI inspectors knocking on the Executive Mansion door. Then Mark Schmidt was elected KBHI vice-chairman, the first non-home inspector elected an officer of the Board. It puts Schmidt in line to be the first non-inspector chairman next year. That has real potential, particularly in comparison to the last two chairmen. But for now, the voting balance is brand new, and the new Board members are beginning to feel like they know the ropes. They'll start to move soon. That offers new hope. Meanwhile, changes didn't stop at the KBHI. Ryan Keith, General Counsel for the Public Protection Cabinet, is gone. Coincidentally, he was conniving with two KBHI leaders to get around an Executive Order prohibiting conflicts of interest and "gifts" to Board members. Cya. He's been replaced by a fine attorney. Then the KBHI rent-attorney is gone. She'll be replaced by another employee of the Attorney General's office who seems competent. Here's hoping. The Board could use a good lawyer. Oh, right, also by coincidence, the KBHI Administrator is gone too. The Board got pretty peeved about that one, but the state was not changing its mind. She's been replaced by a new young man named Tony Crockett, as of the October meeting. Seems he's capable too, and at least he's following in capable footsteps, starting with the first KBHI Administrator Jeff Boler. We'd call that a clean sweep. Now we'll see if the new KBHI can turn things around and take a crack at distinguishing itself. At last. After all, this is practically a clean slate. Yes, they can. So who are these guys?NEW KBHI MEMBERS Profiles in Courage
Our new KBHI appointees are smart and capable men, at the upper reaches of their fields in Kentucky. Each brings a background and set of well-honed skills that dovetail neatly in the world where home inspectors practice. None are home inspectors, as you know. Rather, their contribution is from the professions involved with home inspectors. Since the 2009 appointments, there also have been no women on the Board (there once were two). As usual, the new members spent the first few months on the Board trying to figure out the lay of the land. In another signal of the board's floundering ways, there's no crash course for new members in Kentucky home inspection law and regulations, no highlights of predecessor Board decisions and cases, no mission statement, and no long-term goals. They just get thrown in. Burdensome as that is, it would be hard to find three men more likely to figure it out. All three show the first two signs of focused minds: they listen carefully, and they do their homework. On any state board, and any political job, listening is important. Democrats who did not listen to the people might have heard that message last Tuesday. Here's today's KBHI crew as a whole, now that the dust has settled. Kevin R. Farris replaces Richard Flora as the Board's "licensed real estate salesperson or broker," nominated by the Kentucky Association of Realtors (KAR). He is Treasurer of the KAR. He also has served as a mediator for the state association. Farris manages the Coldwell Banker/McMahon Co real estate agency in Elizabethtown and has also managed its Bardstown office. They are part of the Heart of Kentucky Association, based in Elizabethtown. He was president of the Heart of Kentucky association Board in 2003. He has been a member of its Board since 1995 and has served as chair of its MLS committee (which he's still on). He also worked on its Professional Standards Committee. Realtors, and KAR in particular, have the advantage of one basic national professional standard, from the National Association of Realtors (NAR). He has been interested in continuing education for real estate professionals, at one point buying the Bluegrass Academy of Real Estate, a Kentucky Board of Proprietary Education (BPE) approved provider that was going dark. When we kidded him about it being the only place we'd been with classroom chairs bolted to the floor, he chuckled. They're good chairs and he's got them in his garage, he said. For a while, he ran Bluegrass classes out of an office at Coldwell, but that's inactive now. His community work includes the Red Cross, though friends say "Kevin is the type of guy who does things and you don't know about it." We wouldn't be surprised to learn he on more non-profit and community boards without ever bragging about it. He relaxes with his wife and seven children, 2 girls, 2 boys by his first marriage and 3 girls from hers, at his horse farm in Grayson County. Farris is a brand-new granddad, with a grandson a little over a month old. Leo "Ken" Fister replaces Bill Welty for the Kentucky Manufactured Housing Institute (KMHI) nominated seat. Starting next month, he'll also be on the board's "education committee." Fister is General Manager, and co-owner of Suburban Mobile Home Park, near Whitney Young Park off US 60 in Lexington, KY. A UK graduate, he's been a state certified installer since 2001. He's been second Vice-President at Kentucky Manufactured Housing Institute (KMHI) since about 2008 and has served on its Board starting in 2006. KMHI calls itself "The Voice of the Manufactured and Modular Housing Industries in Kentucky" (details at http://www.kmhi.org). About 560,000 Kentuckians across all 120 counties live in the state's roughly 240,000 manufactured homes, KMHI estimates. The interesting thing about that piece of the housing market right now is that it's shifting heavily toward previously owned homes. About 2/3 of manufactured home sales today are used units, compared with a 50-50 new-used mix in more normal times. Married and the father of a 13 year-old son and 16 year-old daughter, Fister was baptized and married at Christ King Catholic Church. He's been active in Kiwanis club since 1988. R. Stephen Pennington was appointed as the "public at large" member, starting July 1. It doesn't matter who he "replaces" in that chair, since his predecessor was a vacant chair. Pennington is a retired CPA who had his name on the door at Richardson Pennington & Skinner PSC, in downtown Louisville. He and his firm were City Auditor for the City of Prospect, KY, where he lives, for many years. He also was chairman of the City of Prospect Code Commission, when it was formed, and he was there when Prospect adopted a code of ethics in 1996, while a former law partner of Steve's, John Evans, was city attorney. He also helped engineer the bookkeeping system for the city. Pennington has settled into a natural role trying to marshal together a Board budget, for the first time, and heads the newly created "budget committee."
New KBHI Staff
Tony Crockett replaces Lindsay Lane as "Administrator" for the KBHI at the Office of Occupations and Professions. Lane held the job five months, replacing the first KBHI Administrator, Jeff Boler, on April 1, 2010. Boler had returned to sub in after the departure of Kellie Hale, the Board's Administrator for a few months around year-end 2009. She followed Carolyn Kyler, who was something like the Board's co-Administrator, with Boler, from July through October, 2009. June, '09 was the Board's last month housed at the Department of Housing, Buildings and Construction (DHBC), as the statute provides, then and now. Up until the June, '09 meeting, Wendy Anderson had been the Board Secretary, a job with essentially the same functions, at DHBC. Tony Crockett holds a B.A. in business administration from Midway College, Midway, KY, and an Associate degree from Vincennes University, Vincennes, IN. He told us he's "elated to have an office not moving at 70 m.p.h," after his prior work as a manufacturer's rep territory manager for the whole state and from Indianapolis south. This is his first stint in state government. He is married, with 4 kids, daughters 16, 13, and 11, followed by a son, 7. His hobby, if he has one, is running, though his competition has pretty much been 5K races. He can be reached at Tony.crockett@ky.gov. Mark Brengelman, the new attorney for the KBHI, was introduced to the Board at its Sept. 14 meeting by his supervisor, Ryan Holleran, Asst. Dir., Civil and Environmental Division, in the Kentucky Attorney General's Office, headed by Attorney General and ex-U.S. Senate candidate Jack Conway. He "is one of our most experienced Board attorneys," Holleran said, a contrast with his predecessor. He has done "a lot of litigation in the Court of Appeals and the Supreme court in Board litigation." Holleran continued. That's the kind of practical, real world experience neither of the Board's last two attorneys had. "He worked with me in human resources quite a few years ago. Mark's workload is going away, we lost the dental board, they went with inhouse counsel. It was a buyer's market for attorneys. They got a guy who's very experienced who used to work for us. I would highly recommend Mark," Holleran said. In discussion with the Board, Brengelman said he typically had worked for health care boards and had "a long-term run with the Board of Geologists." It is long overdue for the KBHI to have the benefit of an attorney who actually knows administrative law and has gone beyond reading it, testing his knowledge in contested court cases. We bet he lives up to the promise he showed at the outset. The Board is used to attorneys who tell it what it seems to want to hear and then getting in duck soup. It will take spine he seems to have to guiding the board to open itself to the public, consistent with state policy and law, and to actually protect the public. But it can be done and this just might be the Board to do it. If so, it will find it gets a boost from the professional community it never has enjoyed before.
There was a robust discussion of those two staff changes when they were announced in the September meeting. "In several occasions, we're being told what to do," vice-chairman Schmidt objected, setting the tone. "I just found out this morning that [prior Board attorney] Angela [Evans] is leaving and Mark is our replacement. It appears like we don't have a say-so in the matter." "Any legal services are provided by AG's office," OOP Executive Director Frances Short reminded the Board. "Lindsay [Lane] is taken off our Bd and we didn't have any say-so in that," Schmidt replied. The Board tweaked its expired contract with OOP but may not have locked down its relief. Only time will tell.
PS -- The Other KBHI Members
Gov. Beshear appointed the remaining members of the KBHI on January 16, 2009, with the exception of Mike Powers. Powers is the delegate for the Commissioner of the Kentucky Department of Housing, Buildings, and Construction (DHBC). The DHBC Commissioner is a member by state law and not appointed directly to the KBHI. Powers is an attorney by training, with real-world litigation experience, and a policy adviser in DHBC. The January 16, 2009 press release from the Governor's Office announcing the appointments said all of the remaining members' terms expire July 15, 2011. We're uncertain that's correct but stick with what's writing, recognizing that, ordinarily, KBHI appointments are for three-year terms. Those other members are: James R. Bone, of Madisonville, is a self-employed home inspector. He replaced Raymond E. Sandbek, of Louisville, whose term expired. The Governor's appointment announcement said he represents the Kentucky Real Estate Inspectors Association (KREIA). Bone is Treasurer and a board member of KREIA, a KBHI-approved CE provider. Bone has not made the record declarations and abstained from voting in accordance with the provisions of Beshear's Executive Order 2009-882 (Sept. 19, 2009) and 2008-454 (May 27, 2008). Bone was elevated from vice-chairman to chairman of the Board in September and also is on the "discipline" committee, aka Complaint Review Committee. Mark Stephen Schmidt, of Alexandria, is the owner and president of Mark Schmidt Remodeling, Inc. He represents the Kentucky Home Builders Association. He replaced Jo Gawthrop, whose term expired. In September, Schmidt became the first non-home inspector elected an officer of the KBHI. Though he was made vice-chairman, it would require a reappointment for him to become chairman, as has been usual for vice-chairmen, in the September, 2011 annual election of officers. David Michael Green, of Owingsville, is the owner of InspectorUSA Termite & Pest Control. He represents at large licensed home inspectors. In August, he told the Board he was a "full time pest control inspector and a part-time home inspector." The governor reappointed Green for a term expiring July 15, 2011. Back to top
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EPA's Most Wanted List
Not many people think the EPA has a "Wanted" List.
Think again.
Complete with mug shots, the EPA's Wanted List for environmental criminals went up about two years ago.
The first woman on the list was captured, in the Dominican Republic, on Saturday (10/30) the EPA announced Tuesday, election day. She was hiding out there, dyed hair and all, after being convicted on 28 counts in Massachusetts.
The woman, Albania DeLeon was convicted of running a fraudulent environmental training institute in Massachusetts. The school, Environmental Compliance Training in Methunen, Mass., became Massachusetts' largest asbestos training business. It was state certified.
The EPA estimated that 65 to 80 percent of those who received training certificates from the school had no received the necessary training. Over five years, she allegedly gave certificates to hundreds of people who had taken no courses.
DeLeon was convicted in federal court in 2008 on charges of mail fraud, making false statements, and hiring illegal immigrants. Each count carries penalties of 5 to 20 years, the EPA said.
You can find her mug shot, stamped "Captured" (along with four others, on the list of 16 fugitives), at http://epa.gov. While you're there, you can also check out the 2011 Fuel Economy Guide, released 11/3. "Albania Deleon put communities at risk by issuing fraudulent asbestos-removal training certificates to hundreds of untrained workers," said Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance. Back to top
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Here's a home inspection to knock your socks off.

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That's because this home -- the largest in the world, evidently -- includes 9 swift private elevators from the ground up to its 27th story.
You read right. 27 stories. A glass and steel home towering about as high as the tallest skyscrapers in Lexington. The newspaper headline when the family moved in was "Soaring Above India's Poverty, a 27-Story Single Family Home." It's at the center of the New York Times photo above.
Estimated cost: $1 billion. Until October 29, when this place lit up, the most expensive single family home purchase price has been $300 million, for a place in Monaco.
And the family? It's five people. They're moving in right now.
It's the home of Mukesh Ambani, whose $27 billion fortune put him in the stratosphere of the world's richest people. His is a rags-to-riches story, rising from India's slums to become the world's biggest producer of polyester fibers.
The house is in Mumbai, India, a city of about 20 million. It's known as India's "city of dreams," because it's the country's financial capital. One of the world's largest slums, holding over 1 million people, is there. It's also the place Steve's mother was cruising to visit when the ship was turned away because a squad of crackpots was shooting up downtown and burning the hotel where she was booked. Thanks to that, she never got to see the Taj Mahal, a dream of hers.
Real estate prices there are among the highest in the world. With the city's limited land, high rises are considered necessary there. Ambani's former home was a 14-story building where he lived with his brother, their families, and their mother, on separate floors.
To cope, his new skyscraper has three helicopter pads on top of a 6-story garage. Ambani could conceivably lived in Mumbai without ever setting foot on the ground. "This is a gated community in the sky," wrote one Mumbai author. (That's progress? Aren't the rich and powerful cluelessly out of touch enough?)
There also is a 50-seat theater, a grand ballroom, airborne swimming pools, hanging gardens, and around 100 servants.
Call the whole thing extremely over-the-top.
For more, go to http://www.nytimes.com/2010/10/29/world/asia/29mumbai.html?ref=india
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1906 Gut -
Gets Extremely, Presidentially
Tough

A gut renovation now underway for the 1906 house next door to Pres. Obama's home in Chicago is another take on extreme home construction.
Begun in April, the northern site is in a race to get the permit to pour a foundation for an addition before first hard freeze.
Everyone on the job had to get a Secret Service background check. Each night they have to email their schedule for the day ahead. If they show up, they're sent home without pay.
There are blockades at each end of the block. Signs advise people need federal permission to go in.
A Secret Service agent oversees cleaning the Porta-potties.
Secret Service agents even insisted no new photos be take of the often photographed presidential home.
Plans are cleared by a White House liaison in Chicago.
The 100 year-old brick home covers about 10,600 square feet on Greenwood Avenue in Chicao. It cost $1.4 million when the new owners, a plastic surgeon his wife, two daughters, and a dog, picked it early this year. (The Obama home, with its basketball hoop out back, is smaller.)
The owners use video cams on site to watch the work.
Builders call it their clenest job. No coffee, food, or smoking allowed anywhere near. Tree trimmers stationed street sweepers nearby when they trimmed.
The family is panning to move in by Labor Day.
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Letter to the Editor
"Rumblings here at the KREIA conference are that your renewal was held due to the education you submitted.
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Also, the board plans to retaliate in some manner due to your recent newsletter. Somebody has to stop these nuts."
-- B.R.
Our take? The Board has a lot more important, worthwhile things to do than try to fabricate a CE issue for a home inspector who has more hours in CE classes every year than all the inspectors on the Board put together. Still, only a Board member at the KREIA conference could have even brought up such a thing, which is curious enough in itself. KREIA may need to compete that way, but none of the other CE providers do. We think the new Board has a great chance to put that kind of pettiness, or troublemaking, aside and start to accomplish some of the worthwhile public protection goals the KBHI was created to achieve -- like getting unlicensed inspectors off the streets, and joining with other boards, like the Kentucky Real Estate Commission, and groups, like KAR, to put out joint brochures on the importance of home inspections and how they're different from appraisals, etc. We're betting this new Board will insist on achieving some real progress in public protection in a way we've never seen before.
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More News & Features Just for Kentucky Home Inspectors - and Discount Deals. All this and more, including color glossy photos with circles and arrows, as Arlo Guthrie sang to Alice at the Restaurant -- all in the full PLI Newsletter, free to all PLI alums.
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Sincerely,
Lorri Keeney, President Professional Learning Institute 502-896-2020 www.pli4u@aol.com
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