Personal Finance News

No bank account? Get your tax refund on plastic
AP - A new Treasury Department program to give people without bank accounts faster access to their tax refunds will help some avoid costly short-term loans. But careless consumers could end up racking up fees and padding bank profits. (Thu, 02 Sep 2010 12:18:39 GMT)

Why It's Harder to Be a Clueless Consumer
U.S. News & World Report - American consumers hate being told what to do, and to prove it, we routinely make choices that are irrational and counterproductive. We make impulse purchases we can't afford. We build bigger houses than we need, chaining ourselves to an onerous mortgage for years. We drive rugged, four-wheel-drive vehicles even though we never leave the pavement. We buy Snuggies. (Wed, 01 Sep 2010 19:54:10 GMT)

5 Ways to Simplify Your Personal Finances
U.S. News & World Report - If you're combining your life with a new spouse, moving from one house to another, or just frustrated with the amount of documentation you have filed (or unfiled) in your basement, it's a good time to simplify your finances. Simplification is not only practical, it is beautiful. This is the concept of kanso, a Japanese aesthetic usually applied to gardens. Through a stretch of the mind, we can apply this beauty to our lives and our finances. (Wed, 01 Sep 2010 16:42:10 GMT)

Mortgage applications rise 2.7 pct on low rates
AP - Mortgage applications rose 2.7 percent last week as more borrowers took advantage of the lowest rates in decades to reduce their monthly loan payments. (Wed, 01 Sep 2010 15:41:27 GMT)

The Great Value Investors Are Heading West
The Motley Fool - When Berkshire Hathaway (NYSE: BRK-A - News) was buying railroad company Burlington Northern last December, Warren Buffett told Matt Rose: "I've seen what's been done here [in the U.S.]. I think I know how the country is going to develop. I think the West is going to do well. I'd rather be in the West than the East. So I really don't have much of a worry about that." (Wed, 01 Sep 2010 15:26:07 GMT)

The True Risk of Bond ETFs
The Motley Fool - In coming up with ways to protect their portfolios, many investors draw on lessons learned from their most recent mistakes. Unfortunately, most people right now are taking the lessons they learned from the 2008 bear market and buying bonds, which could easily prove to be far riskier than they thought. (Wed, 01 Sep 2010 14:14:48 GMT)

Downsize for a More Affordable Retirement
U.S. News & World Report - Most people think retirement planning is about saving, investments, and the timing of retirement account withdrawals and Social Security benefits. Ensuring you have sufficient income is definitely one of the most important aspects of retirement planning. But so is controlling your expenses. One way you can do that is by downsizing your current lifestyle. Here is how controlling costs can help you prepare for retirement and still enjoy a nice standard of living. (Tue, 31 Aug 2010 19:48:29 GMT)

Ron Paul: Financial Reform Solved Nothing
The Motley Fool - "The American people will never again be asked to foot the bill for Wall Street's mistakes. There will be no more taxpayer-funded bailouts. Period."-- President Barack Obama, after passage of financial reform legislation (Tue, 31 Aug 2010 19:48:21 GMT)

Summary Box: AIG's sale of Taiwan unit on rocks
AP - NO WAY: Taiwanese regulators have rejected Primus Financial Holdings' planned purchase of AIG's Taiwan life insurance unit. (Tue, 31 Aug 2010 17:46:42 GMT)

Taiwan rejects Primus purchase of AIG unit
AP - Taiwanese regulators on Tuesday rejected Primus Financial Holdings' planned purchase of AIG's Taiwan life insurance unit amid concerns that the Cayman Island-based firm may be backed by funds from rival China. (Tue, 31 Aug 2010 11:12:04 GMT)

Dead soldiers' parents sue insurer over benefits
AP - The parents of six deceased U.S. soldiers are suing Prudential Financial, saying it paid paltry interest on military life insurance benefits while keeping more generous interest earnings for itself. (Mon, 30 Aug 2010 18:40:36 GMT)

Forget Treasuries. Buy Convertibles Instead.
The Motley Fool - The recent pullback in the stock market has many investors running for cover. Meanwhile, fear of an imminent double-dip recession and concerns about renewed pressure in the housing market has pushed bond prices to historic highs, reducing bond yields and creating an income crunch for savers. Throughout 2010, billions of dollars have gone into bond mutual funds, and the trend shows no sign of reversing anytime soon. (Mon, 30 Aug 2010 17:41:23 GMT)

Cheaper Reverse Mortgages May Be Coming
U.S. News & World Report - The Federal Housing Administration (FHA) is developing a new reverse mortgage product that sharply cuts up-front payments by home owners but also significantly reduces the percentage of a home's equity that can be paid to owners under the program. Reverse mortgages insured by the government are available on homes where the youngest owner is at least 62 years old. The program is called a Home Equity Conversion Mortgage (HECM). (Fri, 27 Aug 2010 18:05:52 GMT)

Business events scheduled for the coming week
AP - WASHINGTON — Commerce Department releases personal income and spending for July, 8:30 a.m. (Fri, 27 Aug 2010 18:01:57 GMT)

Business events scheduled for the coming month
AP - WASHINGTON — Commerce Department releases personal income and spending for July, 8:30 a.m. (Fri, 27 Aug 2010 18:01:31 GMT)

Warren Buffett Kills the World's Greatest Investment Meeting
The Motley Fool - For years, Charlie Munger, Berkshire Hathaway's (NYSE: BRK-A - News; BRK-B) octogenarian co-chairman, has said that Berkshire would one day buy the remaining 20% of Wesco Financial (NYSE: WSC - News) it didn't already own. (Fri, 27 Aug 2010 14:15:47 GMT)

AIG decides against strategic investor for AIA: source
Reuters - American International Group Inc has scrapped plans to sell a strategic stake in its Asian life insurance business, AIA, ahead of its initial public offering, a source familiar with the process said on Friday. (Fri, 27 Aug 2010 10:40:49 GMT)

Citi-backed personal finance site adds tools
Reuters - Bundle.com, an online personal finance site that counts Citigroup Inc among its backers, is unveiling new features to compete in a growing market for Internet banking and budgeting advice, its chief executive said on Thursday. (Thu, 26 Aug 2010 22:51:09 GMT)

Summary Box: Underwater mortgages in US fell in 2Q
AP - SLIGHT DECLINE: Real estate data provider CoreLogic says the number of U.S. homes with mortgages that exceed what the properties are worth fell slightly between the second quarter and the first three months of this year. It's the second consecutive quarterly decline. (Thu, 26 Aug 2010 22:27:28 GMT)

Summary Box: 1 in 10 in mortgage trouble
AP - MORTGAGE DEFAULTS HIGH: One in 10 American households with a mortgage was at risk of foreclosure this summer, and the crisis could worsen if jobs remain scarce. (Thu, 26 Aug 2010 22:25:02 GMT)

Summary Box: Mortgage rates hit low of 4.36 pct.
AP - RATES DIP: The average rate for a 30-year fixed loan fell this week to 4.36 percent, mortgage buyer Freddie Mac said. That's the lowest level since the mortgage buyer began tracking rates in 1971. (Thu, 26 Aug 2010 22:03:27 GMT)

Number of underwater mortgages in US fell in 2Q
AP - Real estate data provider CoreLogic says the number of U.S. homes with mortgages that exceed what the property is worth declined slightly in the second quarter versus the first three months of this year. (Thu, 26 Aug 2010 19:01:12 GMT)

5 Life Insurance Strategies for Retirement Planning
U.S. News & World Report - When the nest empties, the need for life insurance diminishes. Baby boomers and retirees should think strategically about existing life insurance policies and future life insurance needs. Here is what to do with a life insurance policy as you approach retirement. (Thu, 26 Aug 2010 18:47:35 GMT)

When Financial Planners Are Worth the Money
U.S. News & World Report - Many of us have a hard time getting over the fees that financial planners charge. Between sleazy sales tactics and the unlikely scenario of beating the market, it's an uphill battle to convince yourself that a wealth manager justifies the cost. But sometimes financial planners are worth the money. Here are five scenarios when it may be helpful to consult a financial planning professional. (Thu, 26 Aug 2010 18:26:50 GMT)

Scarcity of jobs puts more at risk of foreclosure
AP - One in 10 American households with a mortgage is at risk of losing its home, and the foreclosure crisis could worsen if jobs remain scarce. (Thu, 26 Aug 2010 17:54:27 GMT)

The "Eat Pray Love" Approach to Investing
The Motley Fool - The best-selling memoir Eat Pray Love tells the tale of a woman's journey around the world in search of solace after a challenging divorce. In the author's travels, she looks to pursue pleasure while in Italy, devotion in India, and a balance between the two in Indonesia. The book has been so immensely popular that it was recently adapted and released as a movie starring Julia Roberts. In today's challenging economy, you may not have the money or the free time to chuck your day job and travel around the world for a year. ... (Thu, 26 Aug 2010 15:47:58 GMT)

Mortgage rates hit low of 4.36 percent
AP - Mortgage rates fell to the lowest level in decades for the ninth time in 10 weeks, as concerns grow that the economy is weakening. (Thu, 26 Aug 2010 14:45:46 GMT)

One in 10 with a mortgage face foreclosure
AP - One in 10 American households with a mortgage was at risk of foreclosure this summer as the government's efforts to help have had little impact stemming the housing crisis. (Thu, 26 Aug 2010 14:43:36 GMT)

Mortgage rates decline to lowest on record: Freddie
Reuters - U.S. mortgage rates fell in the latest week to the lowest on record and posted their ninth drop in the last ten weeks, Freddie Mac said on Thursday. (Thu, 26 Aug 2010 14:38:25 GMT)

Foreclosures fall but new delinquencies rise: MBA
Reuters - The number of U.S. homes headed for foreclosure fell in the second quarter for the first time since the housing slump began in 2006, but improvements may be fleeting as the number of newly delinquent homeowners rose, a banking group said on Wednesday. (Thu, 26 Aug 2010 14:08:10 GMT)

AP - Average rates for 30-year fixed mortgages drop to low of 4.36 percent on economy concerns. (Thu, 26 Aug 2010 14:00:54 GMT)

German economy boosts consumer confidence: GfK
AFP - Better than expected economic growth has boosted consumer sentiment in Germany, and the GfK research institute reported Thursday significant increases in expectations for the economy in general and personal income in particular. (Thu, 26 Aug 2010 06:47:51 GMT)

China Life first-half profit up 7.4 percent
AP - China Life Insurance Co., the country's biggest life insurer, said Thursday its first-half profit rose 7.4 percent as premium growth offset weak stock market returns. (Thu, 26 Aug 2010 03:10:52 GMT)

KBW mortgage index adds Radian, cuts NewAlliance
AP - Keefe, Bruyette & Woods Inc. on Wednesday said it will make changes to its banking and mortgage finance indexes on Monday. (Wed, 25 Aug 2010 23:24:44 GMT)

How to Survive College With No Credit Regrets
The Motley Fool - Bills, budgets, spending temptations, lines of credit -- across the country newly minted co-eds are facing these adult money issues on their own for the very first time. To help kids ace Money 101 -- and avoid graduating with a killer financial hangover (or bankrupting the Bank of Mom and Dad, for that matter) -- here's what they need to know. (Wed, 25 Aug 2010 20:13:12 GMT)

Don't Stop at the Latte Factor
U.S. News & World Report - Schools throughout the country are beginning to introduce money management lessons into mathematics classes. For a young public that is confused about compound interest, doesn't know how to balance a check book, and wonders how their lives become consumed by debt, more attention on personal finance during adolescence can only be a positive influence. (Wed, 25 Aug 2010 16:58:25 GMT)

The Good News in the Bad Housing Numbers
U.S. News & World Report - We've been hoping to avoid this pain, with vast amounts of medication disguised as Federal Reserve asset purchases, home-buyer tax credits, unorthodox mortgage modifications, and other aid meant to anesthetize the housing market. But it hasn't really worked, and we're finally seeing just how deep the housing bust really is. (Wed, 25 Aug 2010 16:15:50 GMT)

Will Hedge Fund Investors Panic Next?
The Motley Fool - As individual investors, we don't necessarily need to worry about what mutual fund, hedge fund, and institutional managers are doing with the money they have under management. Instead, we seek out high quality companies, with strong businesses and management teams, and reward those companies with our faith and investment dollars. However, as retail investors continue to withdraw money from mutual funds at a record pace, it can be useful to know which stocks these funds are holding and therefore may need to sell if fund shareholders demand their capital back. (Wed, 25 Aug 2010 16:13:09 GMT)

Mortgage applications rise 4.9 pct. on low rates
AP - Mortgage applications rose 4.9 percent last week as more borrowers refinanced at the lowest rates in decades. (Wed, 25 Aug 2010 14:47:44 GMT)

AIG to decide on AIA pre-IPO sale by next week: sources
Reuters - American International Group Inc is expected to decide by early next week whether to enter formal negotiations with strategic investors for its Asian life insurance business, AIA, sources familiar with the process told Reuters on Wednesday. (Wed, 25 Aug 2010 07:09:15 GMT)

Housing slump clouds US recovery prospects
AFP - US home sales are plunging despite rock-bottom mortgage rates as high unemployment prevents people from buying houses and threatens to curtail economic recovery. (Wed, 25 Aug 2010 04:07:52 GMT)

Why Did Intel Buy McAfee?
The Motley Fool - If Intel's (Nasdaq: INTC - News) acquisition of security software giant McAfee (Nasdaq: MFE - News) is any indication of what technology companies will be doing with the abundant cash on their balance sheets, perhaps they should follow Skyworks' (Nasdaq: SWKS - News) lead and just buy back shares instead. (Tue, 24 Aug 2010 20:01:33 GMT)

Six Popular Credit Score Myths
U.S. News & World Report - Your credit score is one of the most important numbers in your life and one of the most misunderstood. So many people don't understand how the credit scoring system works because Fair Isaac Corporation, the designers of the FICO credit score, gives only vague hints as to how they calculate it. It's specially designed to be difficult to understand and impossible to guess. (Tue, 24 Aug 2010 20:00:29 GMT)

Corrected: Fed wanted to avoid unintended tightening says Fisher
Reuters - The Federal Reserve decided to reinvest proceeds from its mortgage-related assets to avoid unintentionally clamping down on monetary policy when the recovery was showing signs of weakening, a top Fed official said on Tuesday. (Tue, 24 Aug 2010 19:23:06 GMT)

Re-defaults on modified mortgage loans falling
AP - Homeowners who had mortgages modified recently are faring better than those who did so earlier in the housing crisis, according to a report released Tuesday, possibly debunking predictions of a huge wave of defaults to come. (Tue, 24 Aug 2010 18:42:06 GMT)

SEC: Ex-Countrywide chief approved special loans
AP - The government says former Countrywide CEO Angelo Mozilo personally approved mortgages for favored borrowers that violated the company's policies and lending standards. (Tue, 24 Aug 2010 17:55:15 GMT)

Home sales plunge 27 pct. to lowest in 15 years
AP - Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas. (Tue, 24 Aug 2010 16:57:15 GMT)

EU clears MetLife takeover of AIG unit
AFP - US life insurance giant MetLife won clearance from European Union regulators on Tuesday to acquire a unit of American International Group for 15.5 billion dollars (12.3 billion euros). (Tue, 24 Aug 2010 14:27:26 GMT)

Court dismisses mortgage claims vs Morgan Stanley
Reuters - A mortgage servicing company's claims that would push responsibility for faulty mortgage loans onto Wall Street titan Morgan Stanley were dismissed by a Delaware court, according to a court filing. (Mon, 23 Aug 2010 20:47:07 GMT)

6 Bond ETFs for Today's Market
The Motley Fool - Shaken by recent years' stock market turmoil, investors are showing no sign of dialing back their appetite for fixed income. According to data from the Investment Company Institute, bond funds attracted more assets than equity funds for the past 30 straight months. That amounts to billions and billions of dollars heading out of stocks and into bonds. And given recent economic weakness, it doesn't look like investors are terribly motivated to make peace with stock funds anytime soon. (Mon, 23 Aug 2010 18:55:03 GMT)

3 Hassle-Free 401(k) Features to Try
U.S. News & World Report - Saving for retirement is a very personal and complex process. But retirement plan improvements are making it easier for you to stay on track. You only need to take the time to set them up. Here are three retirement plan features you could use to help you save more and stay properly allocated. (Mon, 23 Aug 2010 18:48:28 GMT)

7 Spending Cuts You Might Not Even Notice
U.S. News & World Report - It's painfully clear Americans are still hurting financially. Jobless claims are far too high if we're actually in any kind of meaningful recovery. Penalty withdrawals from 401(k) plans have been increasing, not shrinking. Mortgage rates are hitting 40-year lows with regularity and we still can't find a pulse in the housing industry. (Mon, 23 Aug 2010 16:28:49 GMT)

Nearly 50 percent leave Obama mortgage-aid program
AP - Nearly half of the 1.3 million homeowners who enrolled in the Obama administration's flagship mortgage-relief program have fallen out. (Sat, 21 Aug 2010 01:20:59 GMT)

6 Ways To Cut Back-to-School College Costs
U.S. News & World Report - Heading back to college or going away to school can be an exciting and expensive time in a student's life. There are people to meet, interesting courses to study, tuition to pay, and textbooks to buy. After the excitement wanes though, it's not hard to feel discouraged by the big bills that need to be paid. Before spending all of your student loans on back-to-school gear, try these six ways to cut your college costs. (Fri, 20 Aug 2010 20:53:57 GMT)

Sector Snap: Corinthian results weigh on schools
AP - Shares of for-profit schools slid Friday after Corinthian Colleges Inc. said its student loan repayment rates were deteriorating, putting it at risk of losing access to federal financial aid for some programs. (Fri, 20 Aug 2010 18:47:00 GMT)

Nearly 50 percent leave Obama mortgage-aid program
AP - Nearly half of the homeowners who enrolled in the Obama administration's flagship mortgage-relief program have fallen out. (Fri, 20 Aug 2010 17:08:28 GMT)

Fund manager finds plenty of virtue in sin stocks
AP - So much for virtue. Sin is in. (Fri, 20 Aug 2010 14:02:49 GMT)

Summary Box: Mortgage rates drop to 4.42 pct.
AP - RATES SINKING: The average rate for 30-year fixed loan fell this week to 4.42 percent, mortgage buyer Freddie Mac said. Analysts say they could dip below 4 percent if the economy worsens. (Thu, 19 Aug 2010 19:47:50 GMT)

9 Reasons to Choose a New Home Over a Resale
U.S. News & World Report - As the mortgage crisis continues to inundate the market with distressed properties, today's house hunter has no shortage of cheap, foreclosed homes to pick through. But despite all those deals in the previously-owned home market, consumers shouldn't overlook the potential benefits of buying a new home. "New homes usually sell higher per square foot then resale homes," says Jack McCabe of McCabe Research & Consulting. "But their selling points, I think, are pretty strong." To help consumers better understand the advantages of new home buying, U.S. ... (Thu, 19 Aug 2010 19:36:10 GMT)

Fund manager finds plenty of virtue in sin stocks
AP - So much for virtue. Sin is in. (Thu, 19 Aug 2010 19:23:25 GMT)

What "The Oracle of the North" Sees Ahead
The Motley Fool - When Prem Watsa speaks, investors listen. The "Oracle of the North" may not get as much fanfare as his peers at Berkshire Hathaway (NYSE: BRK-B - News), but his record is no less impressive. He and his team at Fairfax Financial (OTC BB: FRFHF.PK - News) have averaged a 19.9% annual return on common stocks over the past 10 years, all the while making impeccable analyses of the global macroeconomic environment. During the tech crash, the company profited handsomely by buying puts on several high-flying tech companies. ... (Thu, 19 Aug 2010 19:22:19 GMT)

Mortgage rates hit record lows: Freddie Mac
Reuters - U.S. mortgage rates fell in the past week to the latest in a series of record lows amid concerns about the state of the U.S. economy, according to a survey released on Thursday by Freddie Mac , the second-largest U.S. mortgage finance company. (Thu, 19 Aug 2010 15:51:42 GMT)

Average mortgage rates hit low of 4.42 percent
AP - Mortgage rates fell to the lowest level in decades for the eighth time in nine weeks, a sign that investors are concerned about the weak economy. (Thu, 19 Aug 2010 14:33:35 GMT)

AP - Congressional budget analysts see 2010 deficit exceeding $1.3 trillion, just below 2009 total. (Thu, 19 Aug 2010 14:07:45 GMT)

Asia shares rise on U.S. mortgage hopes
Reuters - Asian stocks rose on Thursday on hopes that a surge in U.S. mortgage applications will shore up a faltering recovery, while the yen hobbled on reports that the central bank was considering steps to contain its export-sapping rise. (Thu, 19 Aug 2010 07:32:46 GMT)

The Boomer Bust Could Slam These Stocks
The Motley Fool - The baby boomer generation has long been a driving force behind our consumerist economy. Now, many members of that big demographic group appear to be going bust -- a shift could take down several iconic companies and brands. (Wed, 18 Aug 2010 20:13:50 GMT)

Summary Box: Mortgage applications up 13 pct.
AP - LOAN APPLICATIONS RISE: Mortgage applications rose 13 percent last week as consumers refinanced at the lowest rates in decades. (Wed, 18 Aug 2010 19:59:34 GMT)

Top banks may see $42 billion loss on repurchases: Fitch
Reuters - The four largest U.S. banks could face as much as $42 billion in losses as they repurchase faulty mortgages from housing finance giants Fannie Mae and Freddie Mac, Fitch Ratings said on Wednesday. (Wed, 18 Aug 2010 18:56:51 GMT)

Mortgage applications rise 13 pct. on low rates
AP - Mortgage applications rose 13 percent last week as consumers refinanced at the lowest rates in decades. (Wed, 18 Aug 2010 14:10:39 GMT)

Home refinancing demand at highest in 15 months
Reuters - Mortgage applications leaped last week as rock-bottom rates lifted demand for home refinancing loans to its highest level in 15 months, the Mortgage Bankers Association said on Wednesday. (Wed, 18 Aug 2010 12:36:39 GMT)

Democrat Frank says abolish Freddie and Fannie: report
Reuters - Fannie Mae and Freddie Mac should be abolished rather than reformed as part of the Obama administration's planned overhaul of the government's role in housing finance, Rep. Barney Frank, chairman of the House Financial Services committee, said on Tuesday. (Wed, 18 Aug 2010 10:25:29 GMT)

Democrat says abolish Freddie, Fannie: report
Reuters - Fannie Mae and Freddie Mac should be abolished, Rep. Barney Frank, chairman of the House Financial Services panel, said on Tuesday. (Tue, 17 Aug 2010 23:32:28 GMT)

Summary Box: Execs say gov't must back mortgages
AP - GOVERNMENT ROLE: Banking executives overwhelmingly told the Obama administration Tuesday that the government should maintain a large role in the $11 trillion mortgage market. (Tue, 17 Aug 2010 21:37:07 GMT)

Coping with Fannie and Freddie's collapse
AP - Questions and answers about Fannie Mae and Freddie Mac and their role in the mortgage market: (Tue, 17 Aug 2010 21:17:59 GMT)

Sector Snap: Shares of mortgage insurers rise
AP - Shares of mortgage insurers rose Tuesday after the Treasury said it plans to do more to help the mortgage industry and a major hedge fund revealed it increased stakes in two insurers. (Tue, 17 Aug 2010 19:09:25 GMT)