Personal Finance News

Home loan demand nudges higher in latest week
Reuters - U.S. mortgage applications nudged higher last week, reflecting increased demand for home purchase loans even as interest rates trekked higher, data from an industry group showed on Wednesday. (Wed, 10 Mar 2010 15:00:52 GMT)

Nationalized UK bank Northern Rock back in profit
AP - Nationalized mortgage lender Northern Rock said Wednesday that it returned to profit in the second half of 2009 as interest income rose and losses on loans fell. (Wed, 10 Mar 2010 08:47:59 GMT)

One Congressman's Solution for Boosting Small Business Loans
The Motley Fool - The first Friday of every month brings the all-important employment report. February's numbers were better than anticipated. The United States lost only 36,000 jobs, versus the 68,000 that experts expected. This compares with 651,000 jobs lost in February 2009. Still, the unemployment rate held steady at 9.7%, with the unofficial rate stuck around a whopping 16%. (Tue, 09 Mar 2010 21:24:07 GMT)

Commercial delinquency lower than other mortgages
AP - Commercial mortgages were among the best-performing loans and leases held by banks and thrifts in the fourth quarter of last year, the Mortgage Bankers Association said Tuesday. (Tue, 09 Mar 2010 19:41:53 GMT)

Management Education on the Fly
BusinessWeek - Who got us into this mess? It's not just greedy mortgage lenders and irresponsible economists who are responsible for the current financial crisis. Leaders, so called, have played a role too, by not managing their companies and so being detached from what was going on in them. And behind much of this has been an educational process that encouraged such detachment. As I've argued at length in my book, Managers not MBAs, the MBA is fine education -- but in the functions of business, not the exercise of managing. ... (Tue, 09 Mar 2010 13:08:46 GMT)

Summary Box: AIG's $15.5B Alico sale to MetLife
AP - THE SALE: American International Group Inc. sold its American Life Insurance Co. division, or Alico, to MetLife Inc. for $15.5 billion. The deal is AIG's second big asset sale in two weeks. On March 1, it said it would sell its AIA Group unit to Prudential PLC for $35.5 billion. (Mon, 08 Mar 2010 23:11:42 GMT)

Is Bank of America a Buy?
The Motley Fool - With the recent auction of Treasury's Bank of America (NYSE: BAC - News) warrants, the big bank joins Goldman Sachs (NYSE: GS - News), Morgan Stanley (NYSE: MS - News), and several other banks in completing its exit from TARP. But, is it a buy? (Mon, 08 Mar 2010 19:50:54 GMT)

MetLife buying AIG's Alico unit for $15.5 billion
Reuters - AIG is selling its foreign life insurance unit to MetLife Inc for about $15.5 billion, its second major asset sale in a week as it raises funds to repay a $182.3 billion U.S. government bailout. (Mon, 08 Mar 2010 15:11:27 GMT)

US insurer MetLife to buy AIG unit for $15.5 bln
AFP - US life insurance giant MetLife will acquire a unit of American International Group in a 15.5-billion-dollar deal that will help AIG pay back part of its government bailout, the firms said Monday. (Mon, 08 Mar 2010 13:02:58 GMT)

AIG set for $15.5 bln deal with MetLife: report
AFP - US insurance giants American International Group and MetLife will on Monday announce a $15.5 billion deal for AIG's second-largest foreign life-insurance business, The Wall Street Journal reported. (Mon, 08 Mar 2010 09:46:20 GMT)

AIG to get $231M if sale of Asian unit crumbles
AP - American International Group Inc. will receive a termination fee of $230.6 million if the sale of its Asian life insurance business to Britain's Prudential PLC falls through. (Sat, 06 Mar 2010 17:29:41 GMT)

Consumer borrowing up in January after 11 declines
AP - Consumer borrowing broke a record stretch of declines with a small increase in January as a boost in auto loans offset continued weakness in credit card borrowing. (Fri, 05 Mar 2010 22:11:28 GMT)

Consumer credit posts first rise in a year
Reuters - Total U.S. consumer credit rose $4.96 billion in January, its first rise in a year and the largest for any month since mid-2008, Federal Reserve data showed on Friday. (Fri, 05 Mar 2010 21:59:09 GMT)

US consumer credit rises first time in a year
AFP - Borrowings by Americans rose for the first time in a year in January, the Federal Reserve said Friday in a sign that the US economic recovery is on track. (Fri, 05 Mar 2010 21:52:20 GMT)

Treasury restates support for Fannie, Freddie
AP - The Treasury Department was forced Friday to reiterate its financial support for Fannie Mae and Freddie Mac after a key lawmaker rattled investors by pointing out that their debt does not enjoy the explicit guarantee of the federal government. (Fri, 05 Mar 2010 21:51:40 GMT)

Wall St rallies on jobs data, consumer credit
Reuters - Stocks jumped and the Nasdaq hit an 18-month closing high on Friday as U.S. employers cut fewer jobs than expected last month and consumers showed signs of shedding their penny-pinching ways. (Fri, 05 Mar 2010 21:41:22 GMT)

Summary Box: Consumer borrowing up in January
AP - BORROWING UP: Consumer credit rose by $4.96 billion in January, breaking a record string of 11 consecutive declines. (Fri, 05 Mar 2010 21:37:06 GMT)

Lawmaker is working to improve loan modifications
AP - A key lawmaker says he is working with banks, regulators and the Obama administration on ways to boost the government's struggling foreclosure prevention effort. (Fri, 05 Mar 2010 15:58:10 GMT)

Upper-income households report less distress
Reuters - Sentiment of U.S. households in the top fifth of the income distribution improved in early 2010 compared with 2009, but worries over personal finances persist, a survey showed on Friday. (Fri, 05 Mar 2010 14:48:21 GMT)

Behind the Buzz About Mint
BusinessWeek - In Mint.com's creation story, as recounted on its Web site, founder Aaron Patzer started the free online personal finance service after a tedious session with Intuit's (NasdaqGS:INTU - News) Quicken budgeting software in 2005. It's a measure of Mint's success that any new complaints about Quicken should now be directed to Patzer himself. Tired of getting its clock cleaned by Mint, Intuit bought the site in 2009 and put Patzer in charge of its entire consumer finance operation. He must figure out how all the pieces will fit together -- while rejuvenating Intuit's aged Quicken franchise. (Fri, 05 Mar 2010 13:08:45 GMT)

Equity One reports jump in profit during 4Q
AP - Shopping center owner Equity One Inc. said Thursday it posted a 71 percent increase in fourth-quarter funds from operations, reporting higher revenue and an income tax benefit. (Fri, 05 Mar 2010 00:46:18 GMT)

MetLife near $15 billion deal for AIG unit
Reuters - A tax question holding up American International Group Inc's sale of its foreign life insurance unit to MetLife Inc is expected to be resolved favorably, clearing the way for a roughly $15 billion deal, sources familiar with the matter said on Thursday. (Thu, 04 Mar 2010 23:12:20 GMT)

Mortgage rates fall below 5 percent
AP - Mortgages rates have dipped below 5 percent again, four weeks before a government program that is helping keep rates low is scheduled to run out. (Thu, 04 Mar 2010 22:39:26 GMT)

America: The Next Growth Economy
The Motley Fool - Warren Buffett described Berkshire Hathaway's (NYSE: BRK-A - News; NYSE:BRK-B - News) acquisition of Burlington National Railroad as a long-term bet on the American economy. In his book The Next Hundred Million: America in 2050, author Joel Kotkin presents data that supports Buffett's thesis, arguing that despite its current economic woes, the U.S. will remain an economic powerhouse over the next four decades. (Thu, 04 Mar 2010 21:37:12 GMT)

Trustee sues ex-Thornburg Mortgage execs for theft
Reuters - Four top executives of Thornburg Mortgage improperly paid themselves handsome bonuses just before the mortgage lender filed for bankruptcy last year, and stole money and ideas from Thornburg to secretly launch a new firm, the bankruptcy trustee in charge of liquidating the lender alleged in a lawsuit. (Thu, 04 Mar 2010 19:51:58 GMT)

AIG units settle discrimination charges
Reuters - Two AIG units settled federal charges that they discriminated against blacks in providing home loans and will pay at least $7.1 million for restitution and education efforts, according to court documents filed on Thursday. (Thu, 04 Mar 2010 17:25:36 GMT)

Freddie Mac prices $5.5 billion in 3-year notes
AP - Government-owned mortgage finance company Freddie Mac on Wednesday priced $5.5 billion in three-year reference notes. (Wed, 03 Mar 2010 19:15:58 GMT)

Business owners can avoid common tax time pitfalls
AP - Small business owners who compile their own income tax returns can find themselves falling into some common quicksand pits. The mistakes can be costly if they raise a company's tax bill unnecessarily or subject it to penalties and interest in the future. (Wed, 03 Mar 2010 19:03:53 GMT)

New, Easy Ways to Save for Retirement
U.S. News & World Report - Half of Americans don't have a retirement plan through their employer, and of those who do, few are saving enough to finance a retirement that will last several decades. To encourage more workers to plan for the future, President Obama announced in September several new federal initiatives to promote saving for retirement. Although employers had the option before, these changes make it easier for them to automatically enroll workers in retirement plans. Some employees will be able to convert unused vacation and sick days to funds for their 401(k)'s, and there's a new way to save tax refunds. ... (Wed, 03 Mar 2010 16:24:14 GMT)

A Guide to Online Investing
U.S. News & World Report - When start-up company kaChing began accepting clients last year, its capital base was as small as its aspirations were grandiose. With just over $2 million in investments under management, the company was looking to challenge the $11 trillion U.S. mutual fund industry. (Wed, 03 Mar 2010 16:15:03 GMT)

Ark. gov. candidate: Cut capital, income taxes
AP - Republican gubernatorial candidate Jim Keet on Tuesday called for phasing out the state's tax on capital gains and a reduction in Arkansas' income tax. (Wed, 03 Mar 2010 01:11:19 GMT)

FDIC seen stepping up sales of failed bank assets
Reuters - The U.S. Federal Deposit Insurance Corp is expected to offer $3.8 billion of guaranteed securitizations backed by the residential mortgage assets of failed banks, market sources said on Tuesday. (Tue, 02 Mar 2010 19:04:02 GMT)

Sirius XM Is Not a $0.25 Stock
The Motley Fool - Despite delivering better than expected results last week, Sirius XM Radio (Nasdaq: SIRI - News) has gone on to close lower in the two trading sessions since its robust report. It opened lower still this morning. (Tue, 02 Mar 2010 15:07:22 GMT)

Consumer group sues insurer over policy changes
AP - Mary Feller's family of three spends nearly $25,000 a year on health insurance premiums, which is more than they pay on their home's mortgage in California's Marin County. (Tue, 02 Mar 2010 09:43:29 GMT)

UK's Pru to buy AIG Asia unit for $35.5 billion
Reuters - Britain's Prudential will buy American International Group's Asian life insurance arm for $35.5 billion in the insurance sector's biggest deal ever, helping the bailed-out U.S. group repay a big chunk of its taxpayer debt. (Tue, 02 Mar 2010 01:47:29 GMT)

FDIC to grease mortgage market with $1.8 bln deal
Reuters - The U.S. Federal Deposit Insurance Corp is planning to sell $1.8 billion of guaranteed asset-backed debt, according to IFR, in what may be a step toward restoring confidence in securities closely tied to the financial meltdown. (Tue, 02 Mar 2010 00:08:14 GMT)

Summary Box: Corporate dealmaking lifts stocks
AP - IN LIKE A LION: Stocks began March with hefty gains after several corporate buyouts raised hopes that the economy is strengthening. American International Group, owned mainly by taxpayers, sold its Asian life insurance business to Britain's Prudential for $35.5 billion. (Mon, 01 Mar 2010 23:15:39 GMT)

How the major stock indexes fared on Monday
AP - Major stock indexes rose to their highest levels in more than a month Monday after corporate buyouts raised hopes about the economy. The biggest boost for the market came from insurer American International Group, which agreed to sell its prized Asian life insurance business to Britain's Prudential for $35.5 billion. It is seen as a sign of confidence in the economy when big businesses go ahead with takeovers. (Mon, 01 Mar 2010 22:31:40 GMT)

MBIA narrows 4Q loss to $242 million
AP - MBIA Inc. said Monday that its loss narrowed in the fourth quarter, although losses from mortgage-related securities continued to hammer the bond insurer. (Mon, 01 Mar 2010 22:27:31 GMT)

Gov't extends deadline for refinance program
AP - The government is giving homeowners another year to refinance their loans under a little-used program designed to help borrowers whose homes have plummeted in value. (Mon, 01 Mar 2010 19:23:41 GMT)

Reports show modest but steady economic recovery
AP - Mixed reports Monday on manufacturing, construction and personal income and spending made clear that the economy is enjoying modest growth even though the recovery remains fragile. (Mon, 01 Mar 2010 18:19:03 GMT)

TransUnion: Mortgage delinquencies hit new record
AP - TransUnion said Monday that customers at least 60 days past due on their mortgage payments rose to a new record in the fourth quarter. (Mon, 01 Mar 2010 17:51:03 GMT)

Wall St extends gains in broad run-up
Reuters - U.S. stocks extended gains on Monday, with the S&P 500 and the Nasdaq up about 1 percent, after a spurt of takeover news and expectations that debt-ridden Greece may get European Union aid. (Mon, 01 Mar 2010 17:29:55 GMT)

Prudential to buy AIG Asia for $35.5 billion
Reuters - Britain's Prudential will buy AIG's Asian arm for $35.5 billion in the insurance sector's biggest deal ever, helping the bailed-out U.S. group repay a big chunk of its taxpayer debt. (Mon, 01 Mar 2010 17:24:06 GMT)

AP - Manufacturing index grows, but at slower pace in February (Mon, 01 Mar 2010 15:06:10 GMT)

US consumer spending grows but incomes lag
AFP - US consumer spending rose more than expected in January but personal income barely budged amid a fragile economic recovery, the government said Monday. (Mon, 01 Mar 2010 14:30:31 GMT)

Housing: Time to Pull the Plug on Government Support
BusinessWeek - America's housing market implosion was the epicenter of the Great Recession. It's hardly surprising that the federal government directed enormous resources at the market. Besides bailing out vulnerable banks, the federal government nationalized mortgage behemoths Fannie Mae and Freddie Mac, opened the lending spigot at the Federal Housing Administration (FHA), passed a first-time home buyers' tax credit, and established a mortgage modification program for troubled homeowners. The Federal Reserve embarked on a $1. ... (Mon, 01 Mar 2010 13:28:46 GMT)

AIG agrees to $35.5 billion unit sale to Prudential: sources
Reuters - American International Group Inc agreed to sell its Asian life insurance unit to Britain's Prudential Plc for about $35.5 billion, in a deal that would help the U.S. government get back billions of its bailout money, sources familiar with the matter said. (Mon, 01 Mar 2010 04:06:11 GMT)

Republicans want hearing on Fannie/Freddie bailout
Reuters - Two key Republicans are urging the House of Representatives to speed up a public hearing to investigate the administration's bailout of home funding giants Fannie Mae and Freddie Mac. (Mon, 01 Mar 2010 02:39:07 GMT)

Report: Prudential PLC nears buy of AIG unit
AP - The board of American International Group Inc. has approved the sale of its Asian life insurance arm to British life insurer Prudential PLC, according to media reports Sunday. (Sun, 28 Feb 2010 23:03:29 GMT)

Reports: Prudential PLC may buy AIG unit
AP - Prudential PLC, Britain's largest life insurer, is exploring a bid for the Asian life-insurance arm of American International Group Inc., according to media reports Saturday. (Sat, 27 Feb 2010 23:32:30 GMT)

Fannie Mae seeks $15.3B in gov't aid after 4Q loss
AP - Fannie Mae needs another $15 billion in federal assistance, bringing its total to more than $75 billion. And worse, the mortgage finance company warned its losses will continue this year. (Fri, 26 Feb 2010 23:23:09 GMT)

Earnings roundup: Fannie Mae, NYMagic
AP - Among the earnings stories for Friday, Feb. 26, from AP Financial News: (Fri, 26 Feb 2010 23:04:53 GMT)

Insurer Conseco posts 4Q profit, reversing a loss
AP - Conseco Inc., the parent of Banker's Life and Casualty and Colonial Penn Life Insurance, on Friday posted a fourth-quarter profit, reversing last year's loss, as sales rose 18 percent and the company lost less on investments than during the market downturn. (Fri, 26 Feb 2010 21:26:03 GMT)

Business events scheduled for the coming week
AP - WASHINGTON — Commerce Department releases personal income and spending for January, 8:30 a.m.; Commerce Department releases construction spending for January, 10 a.m. (Fri, 26 Feb 2010 18:31:16 GMT)

AIG alters payback plan to Fed
Reuters - American International Group Inc has decided not to use securitized U.S. life insurance policies to repay the U.S. government after a $182.3 billion rescue, a source familiar with the matter said on Friday. (Fri, 26 Feb 2010 12:46:22 GMT)

Snoop Dogg in the IRS Doghouse
The Motley Fool - The headline to this story practically writes itself, which makes it hard to pick just one. To sum up the latest celebrity financial foible, here are three other titles that didn't quite make the cut: (Thu, 25 Feb 2010 22:01:50 GMT)

Lawmakers question Obama loan help effort
AP - Lawmakers are taking aim at the Obama administration's struggling mortgage assistance program, with Republicans calling it a worthless exercise and Democrats saying it doesn't go far enough. (Thu, 25 Feb 2010 20:48:20 GMT)

Rates on 30-year home loans rise to 5.05 pct
AP - Rates for 30-year home loans rose above the 5 percent threshold for the first time in three weeks, but remained near historically low levels. (Thu, 25 Feb 2010 17:01:34 GMT)

Bernanke sees low rates amid signs of weak rebound
AP - New signs emerged Wednesday that the economic rebound is sputtering. Sales of new homes hit a record low last month. And mortgage giant Freddie Mac signaled it will need more federal aid — and might never repay it. (Wed, 24 Feb 2010 22:40:15 GMT)

Geithner: No change to Fannie, Freddie until 2011
AP - The Obama administration will wait until 2011 to propose an overhaul of mortgage giants Fannie Mae and Freddie Mac, Treasury Secretary Timothy Geithner said Wednesday, arguing that he wanted to put some distance between a new system and what he called "the worst housing crisis in generations." (Wed, 24 Feb 2010 21:27:04 GMT)

Summary Box: Freddie Mac's losses continue
AP - LOSSES CONTINUE: Mortgage finance company Freddie Mac said Wednesday that it lost $7.8 billion, or $2.39 a share, in the fourth quarter of last year. That was down from $23.9 billion, or $7.37 a share, in the same quarter a year ago. (Wed, 24 Feb 2010 19:07:41 GMT)

Fannie Mae expects $5B charge due to tax credit
AP - Fannie Mae plans to take a $5 billion charge when its reports its fourth quarter results later this week because the government blocked its plan to sell tax credits. (Wed, 24 Feb 2010 17:58:28 GMT)

Freddie Mac loses $7.8B in 4Q
AP - Freddie Mac lost $7.8 billion in the final three months of last year, but the mortgage finance company didn't need a federal cash infusion for the third quarter in a row. (Wed, 24 Feb 2010 14:11:19 GMT)

Rate of Home Price Declines Slows, But More Drops May Be Ahead
U.S. News & World Report - The real estate market continued to heal in the final three months of 2009, as lower home prices, cheap mortgage rates, and a federal tax credit worked to juice demand. The development was visible in the S&P/Case-Shiller home price report released Tuesday, which found that the rate of annual home price declines improved again in the fourth quarter. Prices at the national level fell just 2.5 percent in the fourth quarter of 2009, compared with a year earlier. ... (Wed, 24 Feb 2010 13:31:00 GMT)

UK trims support for Northern Rock deposits
AP - The British government said Wednesday that it will withdraw unlimited guarantees for depositors in mortgage lender Northern Rock in May as another step to prepare for the company's return to private ownership. (Wed, 24 Feb 2010 12:42:01 GMT)

Home purchase loan demand at lowest since 1997
Reuters - U.S. mortgage applications fell for a third straight week, with demand for home purchase loans sinking to the lowest level in 13 years as inclement weather weighed, data from an industry group showed on Wednesday. (Wed, 24 Feb 2010 12:17:55 GMT)

Health Care REIT, Forest City form joint venture
AP - Health Care REIT Inc. and Forest City Enterprises Inc. said Tuesday they have formed a joint venture to buy a $668 million life sciences campus in University Park in Cambridge, Mass. (Tue, 23 Feb 2010 22:03:28 GMT)

Radian shares rise on 4Q results, delinquency view
AP - Mortgage insurer Radian Group Inc. on Tuesday posted a narrower fourth-quarter loss as it reduced its exposure to risky investments and the value of derivatives it holds turned positive. (Tue, 23 Feb 2010 18:50:19 GMT)

UK mortgage loans at 8 1/2 year low in January
AP - Mortgage lending in Britain hit the lowest level in 8 1/2 years in January at 8 billion pounds ($12.4 billion), major banks reported Tuesday. (Tue, 23 Feb 2010 09:57:06 GMT)

Ciber posts lower 4Q profit, sales
AP - Technology consulting company Ciber Inc. said Monday its fourth-quarter profit declined amid the difficult economy and because of a higher income tax rate than a year earlier. (Tue, 23 Feb 2010 01:00:54 GMT)

Gov't to add consumer protections to mortgage plan
AP - The Obama administration is considering additional protections to ensure homeowners are treated fairly and consistently under its mortgage relief program. (Mon, 22 Feb 2010 20:26:05 GMT)

E-Trade getting back on track, analyst says
AP - E-Trade Financial Corp., which took a black eye from losses on its subprime mortgage holdings, is getting back on track by focusing on its roots as an online brokerage, an analyst said Monday. (Mon, 22 Feb 2010 18:06:24 GMT)

Business Highlights
AP - Report: Fewer people falling behind on home loans (Fri, 19 Feb 2010 22:25:59 GMT)

A look at foreclosure numbers
AP - The Mortgage Bankers Association's quarterly report on foreclosures Friday showed fewer homeowners are starting to fall behind on their loans, compared with the third quarter. But the number of borrowers who have missed at least three payments kept growing. (Fri, 19 Feb 2010 22:25:05 GMT)