In honor of Martin Luther King Jr. Day. We’re at 8,281. Rachel

Readers, I understand Wells Fargo is under litigation, as well. More coming. Rachel

A group of Washington homeowners has filed a lawsuit against Countrywide, claiming the mortgage giant illegally rigged the appraisal process at the expense of homeowners and independent appraisers.

The suit was filed Jan. 12 in U.S. District Court in Seattle.

It claims Countrywide forced homeowners to use a subsidiary called LandSafe for appraisals. The company then subcontracted the work to independent appraisers while charging homeowners as much as 200 percent of the actual cost of the appraisal, according to the claim.

Countrywide is a subsidiary of Bank of America. Shirley Norton, a Bank of America spokeswoman, said the company had not yet been served with the lawsuit, but she believes it has no merit based on what she has read.

The suit also contends that if independent appraisers did not accept Countrywide’s fee structure or appraisal guidelines, they risked being blacklisted for further work.

According to a statement from the Seattle-based law firm Hagens Berman Sobol Shapiro, LandSafe contracted appraisal work to a network of independent appraisers, but offered them rates as low as $140 each. The company then marked the costs of an appraisal as high as $410, the amount it billed the homeowner.

The suit claims Countrywide and LandSafe had too much influence on the appraisal process, which was designed to be independent.

“When you control the entire appraisal process, including your hands around the necks of appraisers, financially speaking, you have a lot of influence,” attorney Steve Berman said.

Berman alleges that hundreds of thousands of homeowners have been effected during the housing boom.

More information on the suit is at www.hbsslaw.com/CFChomeowners.

Rachel Pritchett

Home Builders
Install Officers

Silverdale

Rick Caldwell of Drury Construction was installed recently as president of Home Builders Association of Kitsap County at a dinner at the Silverdale Beach Hotel.

Also installed were Ron Perkerewicz of Inspection & Permit Services/JCM Property Management, first vice president; Justin Ingalls of Kitsap Trident Homes, second vice president; Randy Biegenwald of Randy Biegenwald CPA PS, treasurer; and Dee Coppola of Wet Apple Media, secretary.  

Newly installed directors were Robert Baglio of The BJC Group and Wayne Keffer of WRK Construction. Installed as associate directors were Jason Galbreath of John L. Scott Real Estate, and Robert Simonoff of West Shores Interiors.

State directors installed were Dale Armstrong of JAFA Enterprises; John Armstrong of Armstrong Homes of Bremerton; Lary Coppola of Wet Apple Media; Robert Coultas of Coultas General Contracting; Rick Courson of Cedar Bay Homes; Gale Culbert of Ironwood Builders; Walter Galitzki of Sun Path Custom Construction; Ingalls; Greg Livdahl of Fairbank Construction; Charlie Mackall of JAFA Enterprises; Brent Marmon of Pacific Northwest Title; Perkerewicz; and, as alternate state directors Judy Mentor Eagleson of The Mentor Company and Robert Lubowicki of Arborview Construction. 

National directors are Caldwell; Jeff Coombe of JCM Property Management; Ingalls; and Robert Lubowicki of Arborview Construction. Alternate national directors are Mike Brown of FPH Construction and Dave Smith of Central Highlands.

Outgoing president Lubowicki honored 26th District state Rep. Jan Angel as the Public Official of the Year in recognition of her leadership and contribution to the community and industry during her eight years of service as a Kitsap County commissioner. Kitsap County Community Development Director Larry Keeton was recognized for his leadership and efforts to improve customer service at DCD. Mike Haley of the Kitsap Credit Union was recognized for his leadership with both the Peninsula Home and Remodel and Peninsula Home and Garden Expos. 

Home Builders Association government affairs director Teresa Osinski was recognized for her dedication and commitment to her office. Home Builders membership services director Tamra Ingwaldson was recognized for her dedication and commitment to her office.

Each year the group also recognizes members for their outstanding contribution and efforts on behalf of the association. The 2008 Remodeler of the Year was Wayne Keffer of WRK Construction; the 2008 Associate Member of the Year was Leslie Peterson of Liberty Bank of Washington; and the 2008 Builder Member of the Year was Caldwell.

Vendor Signup
for Spring Military
Appreciation Day
Is Being Accepted

SILVERDALE

The Silverdale Chamber of Commerce is accepting vendor applications for its annual spring Military Appreciation Day.

This annual salute to the armed services is a chance for businesses and organizations to show their appreciation through offering significant discounts on products and services.

Along with the commercial booths, there will be displays and demonstrations from local military commands. Service members and their families are also eligible to win gifts donated by local merchants.

Vendor registration forms are available online at www.silverdalechamber.com.

Appreciation day is scheduled for 11 a.m. to
5 p.m. April 4 at the Kitsap Sun Pavilion. For more information about the event, contact the chamber office at (360) 692-6800.

Silverdale Firm
Wins $50K Grant

SILVERDALE

The Washington Technology Center has awarded a $50,000 research and technology development grant to Washington State University in collaboration with Applied Technical Systems Inc.

ATS, a Silverdale-based provider of intelligent search software and services, is working with WSU’s School of Electrical Engineering and Computer Science to develop data merging algorithms.

The school will receive money and another $17,500 from ATS for the project titled “Schema mapping for a flexible graphical data mining platform.” 

The project with WSU holds the potential to significantly speed up the mapping process and position the state of Washington as a leader in the deep mining of the Internet and other large data sources. 

The new data mining algorithms will aid in the discovery of information vital to many fields including Homeland Security and law enforcement.

New Ownership
for Silverdale
Mortgage Firm

SILVERDALE

CFA Northwest Mortgage Professionals of Silverdale has joined Guild Mortgage of San Diego, and is now doing business as Guild Mortgage. 

The move will make the company more stable financially, according to company officials. Guild is a nationally-recognized mortgage banking company with more than 40 branch offices and four decades of providing loans, service and expertise to homebuyers.

Local Child
Care Wins Accreditation

BREMERTON

Kitsap Child Care and Preschool of Bremerton is one of the first early-childhood programs to earn accreditation from the National Association for the Education of Young Children, the nation’s leading organization of early-childhood professionals.

The center is the oldest child care program in Kitsap County, serving families and children in Bremerton since 1966. The school went through an extensive self-study process, measuring the program and its services against the 10 new NAEYC Early Childhood Program Standards and more than 400 related accreditation criteria. 

The program received accreditation after an on-site visit by NAEYC assessors to ensure that the program meets each of the program standards. The accredited programs are also subject to unannounced visits during their accreditation, which lasts for five years.

Registration Opens
for VCB Meeting

Registration is now open for the Kitsap Peninsula Visitor & Convention Bureau’s 2009 annual meeting and awards presentation. 

The meeting is scheduled for 11:30 a.m. to
1:30 p.m. Feb. 4 at the Harborside Conference Center in Bremerton.

The luncheon is open to the public. For information or to register, go to www.VisitKitsap.com.

On the Job

Claudia Prince and Paula Cook have joined the staff of RE/MAX Town and Country. Prince brings with her more than 20 years in customer service in the areas of real estate to retail. Her specialty is buyer representation, having relocated with the military more than 10 times. Cook specializes in residential properties in Kitsap County and military moves. She has five years as a Realtor and 25 years in the mortgage and banking industries. She is an associate broker and is notary for the state of Washington.

Stephanie Brisendine, a medical assistant for Dr. Robert L. Caulkins of Olympic Family Practice, has been honored as employee of the year. She has worked for the firm for the past 18 months and is lauded for giving her “very best every day with great care and compassion.”

Debbie Posey, an accounting clerk with Kitsap Bank, has been honored for 25 years of service. She is a South Kitsap native who worked as a proof operator, teller and customer service representative before transferring to the bank’s accounting department in 1986.

Business Calendar

Jan. 21

What: North West Business Connections will feature guest speaker Paul Mueller, an independent associate for AFLAC. Miller will speak about how you can get cash when you are sick or hurt. Visitors are welcome.

When: 7:30 to 9 a.m. 

Where: Bay View Java Coffee Shop, 1213 Bay St. in Port Orchard. 

Info: Call Marie Wohlert at (360) 876-5005.

Jan. 21

The North Mason Chamber of Commerce will have an after hours social for chamber members and their families. The store will offer a 30 percent discount on purchases made that evening. Enter to win a $50 Rite Aid gift card. Refreshments will be served next door at the chamber office starting at 6 p.m.

When: 6 p.m. refreshments; 7 to 9 p.m. event.

Where: Rite Aid, 23940 NE Highway 3 in Belfair.

Info: Call Frank Kenny at (360) 275-4267.

Jan. 22

What: Olympic Business Exchange will host Shannon Corin with APB, who will make a 10-minute presentation about setting up books and accounting systems for small businesses. The group gathers every Thursday morning to network and pass along business referrals. All business professionals interested in increasing their business are encouraged to attend. Visitors are welcome.

When: 7:30 a.m.

Where: Silverdale Beach Hotel, 3073 NW Bucklin Hill Road in Silverdale. 

Info: Contact Shannon Corin at (360) 908-1098, Shannon. Corin

Jan. 28

What: The Silverdale Chamber of Commerce will host Ruth Ann Halford of the Kitsap Community Development Corporation as guest speaker. She will discuss “Business Survival in Tough Economic Times.” The meeting will also feature a business showcase, highlighting businesses offering financial services and products. Membership meetings are open to the public and all are invited to the networking opportunity. 

When: 11:30 a.m.

Where: Silverdale Beach Hotel, 3073 NW Bucklin Hill Road in Silverdale. 

Cost: $18 if paid before Jan. 23; $22 at the door. Advance registration is requested.

Info & Registration: Call the chamber at (360)
692-6800 or visit www.silverdalechamber.com. 

Jan. 21

What: North West Business Connections will feature guest speaker Paul Mueller, an independent associate for AFLAC. Miller will speak about how you can get cash when you are sick or hurt. Visitors are welcome.

When:  7:30 to 9 a.m. 

Where: Bay View Java Coffee Shop, 1213 Bay St. in Port Orchard. 

Info: Call Marie Wohlert at (360) 876-5005.

Jan. 21

The North Mason Chamber of Commerce will have an after hours social Wednesday for chamber members and their families. The store will offer a 30 percent discount on purchases made that evening. Enter to win a $50 Rite Aid gift card. Refreshments will be served next door at the chamber office starting at 6 p.m.

When: 6 p.m. refreshments; 7 to 9 p.m. event.

Where: Rite Aid, 23940 NE Highway 3 in Belfair.

Info: Call Frank Kenny at (360) 275-4267 or  e-mail frank

Jan. 22

What: Olympic Business Exchange will host Shannon Corin with APB, who will make a 10-minute presentation about setting up books and accounting systems for small businesses. The group gathers every Thursday morning to network and pass along business referrals. All business professionals interested in increasing their business are encouraged to attend. Visitors are welcome.

When: 7:30 a.m.

Where: Silverdale Beach Hotel, 3073 NW Bucklin Hill Road in Silverdale. 


Info: Contact Shannon Corin at (360) 908-1098, Shannon.Corin

Jan. 28

What: The Silverdale Chamber of Commerce will host Ruth Ann Halford of the Kitsap Community Development Corporation as guest speaker. She will discuss “Business Survival in Tough Economic Times.” The meeting will also feature a business showcase, highlighting businesses offering financial services and products. Membership meetings are open to the public and all are invited to the networking opportunity. 

When: 11:30 a.m.

Where: Silverdale Beach Hotel, 3073 NW Bucklin Hill Road in Silverdale. 

Cost: $18 if paid before Jan. 23; $22 at the door. Advance registration is requested.

Info & Registration: Call the chamber at (360) 692-6800 or visit www.silverdalechamber.com. 

Bloggers, 

Look to the Kitsap Sun, www.kitsapsun.com and here on Monday for my story on the current woes in the home-appraisal industry. Independent appraisers say they’re under enormous pressure to “hit the number” and inflate values, and if they don’t, they don’t get business. Some new rules are coming down to try to address this, but it’s my opinion this will ultimately be settled in the courts. A class-action lawsuit against BOA’s Countrywide was just filed in U.S. District Court in Seattle. It alleges Countrywide rigged appraisals. You can read more on Monday. Researching this story has left me with grave reservations about how home appraisals are accomplished now in this down housing market.

Rachel

NEW YORK (AP) — The lack of space to store burgeoning crude inventories pushed oil prices lower Friday with yet another major energy group predicting demand in will fall again this year in a widening recession.

In its closely watched monthly survey, the Paris-based International Energy Agency cited “the relentless worsening of global economic conditions” as it reduced its global demand expectations by 1 million barrels, to 85.3 million barrels a day.

It would mark the first time in more than a quarter century that global demand fell in consecutive years.

Light, sweet crude for March delivery fell 59 cents to $42.95 a barrel on the New York Mercantile Exchange. The February contract, which expires Tuesday, fell 58 cents to $34.82 a barrel, down from a high of $50.47 a barrel last week as dismal economic and corporate results stoked investor fears that a drop-off in crude demand may be greater than expected.

Industries have pulled back production rapidly, which has led to huge builds in U.S. inventories of crude and natural gas.

The Federal Reserve said Friday that industrial production plunged in December at twice the rate that analysts expected, with output falling 2 percent. The dismal showing underscored the heavy toll the housing, credit and financial crises are taking on the nation’s manufacturers.

Traders unable to get rid off crude are selling at a huge discount as storage facilities fill up with unwanted oil and gas, said analyst Stephen Schork.

“With mills and plants being shuttered all over the country, that means there is a lot of gas that is not being consumed,” analyst Stephen Schork said in a Friday report. “That tells us all we need to know about how bearish industrial demand for gas currently is.”

The U.S. Department of Energy and OPEC this week also revised demand expectations downward for 2009.

Fall off in energy usage comes on the heels of unprecedented demand erosion in 2008.

U.S. petroleum deliveries — a measure of demand — fell 6 percent to 19.4 million barrels a day last year, with declines for all major products made from crude, according to the American Petroleum Institute.

Plunging demand has grounded oil prices for the past several months, with investors ignoring promises by the Organization of Petroleum Exporting Countries to slash 4.2 million barrels a day in crude production. The wild card is oil producers outside OPEC — whether they increase output and if so, how much that will compensate for reduced supplies from OPEC nations.

Noting that Moscow planned to lower the duty on oil exports, Vienna’s JBC Energy said: “As this will increase the profitability of exports, Russia could ship higher volumes in February.”

In other Nymex futures trading, gasoline slipped by 3 cents to $1.1444 and heating oil by 1.6 cents to $1.4708 a gallon, while natural gas for February delivery fell a penny to $4.832 per 1,000 cubic feet.

Bucking the Nymex trend, Brent crude for March delivery rose $2.45 to $47.14. The price difference is due in part to the strong stock build of Nymex crude compared to Brent, which traded on London’s ICE exchange.

NEW YORK (AP) — The reality of rising losses at Citigroup Inc. and Bank of America Corp. sank in on Wall Street Friday, making investors increasingly pessimistic about the struggling financial sector and forcing them to give back a big early gain.

The market initially focused not on the losses at the big banks, but the steps they were taking to improve their profitability.

Bank of America reached a deal late Thursday to receive an additional $20 billion in capital from the government. The bank will also receive guarantees to cover up to $118 billion in losses on loans and securities backed by residential and commercial real estate as it incorporates recently acquired Merrill Lynch & Co. into its operations. Bank of America’s deal with the government is similar to one Citigroup reached with the government last fall.

John Merrill, chief investment officer of Tanglewood Wealth Management, said the change in direction Friday was not surprising.

“Every time the government does something, there is an initial and fleeting excitement this will help,” Merrill said. “But (investors) look deeper and see, wow, this is a mess.”

Citigroup, among the hardest hit by the ongoing credit and mortgage market turmoil, said it plans to split in two, separating its traditional banking business from its riskier operations. Earlier in the week, Citi agreed to sell a majority stake in its brokerage business to Morgan Stanley as it looks to streamline operations and shed assets

Citi said it lost $8.29 billion, or $1.72 per share, during the final three months of the year. Bank of America said it lost $2.39 billion, or 48 cents per share.

Bank of America shares tumbled 90 cents, or 10.8 percent, to $7.42. Shares of Citi fell 4 cents to $3.79.

In midday, the Dow Jones industrial average fell 84.83, or 1.03 percent, to 8,127.66. The Standard & Poor’s 500 index fell 11.39, or 1.16 percent, to 832.35, while the Nasdaq composite index declined 18.68, or 1.24 percent, to 1,493.16.

Dow at 8,008, down 191. Rachel

NEW YORK (AP) — News that Bank of America Corp. needs another government cash infusion sent stocks sliding Thursday as investors feared that the banking crisis of last fall may have returned.

Investors dumped bank stocks, which led the market lower. The major stock indexes fell more than 1.5 percent, including the Dow Jones industrial average, which lost 150 points. The Dow was falling for the seventh straight session.

The federal government is considering a fresh multibillion-dollar aid package for Bank of America to help it absorb losses at Merrill Lynch, according to a person with knowledge of the discussions, who spoke to The Associated Press on condition of anonymity because of the sensitive nature of the discussions. The person said the new aid package could be modeled along the lines of the financial lifeline that was thrown to Citigroup Inc. in November.

Other media organizations have had similar reports of a potential aid package for the company.

Good morning, bloggers,

Kitsap unleaded per gallon is at $2.01 this morning, says AAA, but oil per barrel is below $35. What gives? Rachel

NEW YORK (AP) — Oil prices tumbled below $35 a barrel Thursday as new employment claims rose and government reports show that unused gas and oil inventories continue to build.

Light, sweet crude for February delivery fell $2.35 to $34.93 a barrel Thursday on the New York Mercantile Exchange. At one point prices fell to $34.65.

Prices have fallen 27 percent in just a week and may hit new five year lows, analysts said.

“It was very predictable that January was going to be ugly, but I’m not sure if anyone thought it would be this ugly,” said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.

Kloza said trucking companies have seen an huge drop in business as orders dry up, just one example of how demand for energy has fallen away.

OPEC lowered its energy demand forecast for 2009, with investors already shrugging off production cuts of 4.2 million barrels a day by member countries. The Organization of Petroleum Exporting Countries said in its January report that it expects world demand for crude will fall 180,000 barrels per day in 2009, compared with the previous year.

Sustained job losses, bankruptcies and massive government bailouts have drowned out news of supply cuts that just six months ago would have sent crude prices soaring.

“I don’t think there’s anything they can say at this point,” said analyst Stephen Schork, who doesn’t expect a sustained rally in oil prices during the first half of this year.

“They didn’t have control of oil prices when it was on the way up,” he said. “They don’t have control of it when it’s on the way down.”

The Labor Department reported first-time requests for unemployment insurance jumped to a seasonally adjusted 524,000 in the week ending Jan. 10. Analysts had expected 500,000 new claims.

An analyst with the Labor Department said the increase is partly due to a flood of requests from newly laid off people who delayed filing claims over the holidays.

On Thursday, the government reported that the draw on natural gas inventories was less than expected, suggesting that industry is pulling back production sharply.

Meanwhile, U.S. oil inventories have been rising for months, suggesting that the recession has slashed energy demand. The Energy Information Administration said Wednesday that crude inventories grew by 1.2 million barrels for the week ended Friday after jumping 6.7 million barrels the previous week.

Gasoline inventories rose by 2.1 million barrels and distillates increased by 6.4 million barrels.

“It just points to the doom and gloom in the American economy,” said Gerard Rigby, an energy analyst with Fuel First Consulting in Sydney.

Investors were also dismayed by bad retail numbers. The Commerce Department reported Wednesday that retail sales dropped 2.7 percent last month, more than double the 1.2 percent decline that analysts expected.

In London, the February Brent crude contract fell 55 cents to $45.53 a barrel on the ICE Futures exchange.

In other Nymex trading, gasoline futures fell 4.37 cents to $1.124 a gallon. Heating oil fell 1.5 cents to $1.4478 a gallon while natural gas for February delivery fell 16.5 cents to $4.805 per 1,000 cubic feet.

Retail sales from the holiday pushed it. Rachel

NEW YORK (AP) — Volatility is clearly reasserting itself in the stock market.

A darkening outlook for companies from banks to retailers to energy producers has pummeled Wall Street Wednesday. Government figures have show retail sales declined more than expected in December and concerns about troubled balance sheets are weighing on banks.

The Dow Jones industrial average is down 248, or 2.94 percent, at 8,200 after being down more than 300 points earlier in the session. Broader indexes are down more than 3 percent.

The Dow has now fallen for six straight sessions.