Personal Finance News Feb 2009

Obama readies road map for new bailout spending
AP - President Barack Obama on Saturday promised to lower mortgage costs, offer job-creating loans for small businesses, get credit flowing and rein in free-spending executives as he readies a new road map for spending billions from the second installment of the financial rescue plan. (Sun, 01 Feb 2009 06:48:29 GMT)

Ex-Fannie Mae programmer says not guilty of virus
Reuters - A 35-year-old computer programer pleaded not guilty on Friday to charges that he planted a computer virus designed to destroy all the data on 4,000 Fannie Mae computer servers the day he was fired from the company. (Mon, 02 Feb 2009 00:03:21 GMT)

Obama stimulus plan faces changes in Senate
AP - A top Republican called for more mortgage relief and additional tax cuts in President Barack Obama's massive economic stimulus package as Democrats conceded privately they will drop items that have drawn bipartisan criticism. (Mon, 02 Feb 2009 18:50:21 GMT)

Senator Dodd to refinance two Countrywide mortgages
Reuters - Democratic Sen. Christopher Dodd said on Monday he will refinance two mortgages that he took out in 2003 under Countrywide Financial Corp's VIP program and later triggered a Senate ethics investigation. (Mon, 02 Feb 2009 20:40:01 GMT)

Republicans push low-rate mortgage in U.S. stimulus
Reuters - Republican lawmakers want a fiscal stimulus bill of nearly $900 billion to include a provision that would drive down mortgage rates to as low as 4 percent in an effort to jumpstart the moribund housing market. (Mon, 02 Feb 2009 21:41:31 GMT)

Housing aid gaining steam in stimulus bill
AP - Homebuyers could see lower mortgage rates and get tax credits as part of a sweeping economic stimulus package being considered on Capitol Hill. (Mon, 02 Feb 2009 23:00:02 GMT)

Citigroup to deploy $36.5 billion to boost lending
AP - Citigroup, under pressure to increase its lending, says it will spend $36.5 billion to issue mortgages, make credit card loans and buy mortgage-backed securities in the tight credit markets in the coming months. (Mon, 02 Feb 2009 23:36:32 GMT)

Citgroup to deploy $36.5 billion to boost loans: report
Reuters - Citigroup plans to use some $36.5 billion of its U.S. government capital infusion for new mortgages, credit card loans and to buy mortgage-backed securities in the coming months, the Associated Press reported on Monday. (Tue, 03 Feb 2009 03:56:58 GMT)

Entergy 4Q profit slips on tax, regulatory charges
AP - Entergy Corp. said Tuesday that its earnings fell 12 percent in the fourth quarter as the energy company recorded higher income tax expenses and regulatory charges in its utility business. (Tue, 03 Feb 2009 13:55:44 GMT)

Citigroup to deploy $36.5 billion in capital
Reuters - Citigroup said it was using $36.5 billion in taxpayer bailout money to boost lending even as growing political outcry put pressure on the bank to end a $400 million baseball stadium sponsorship deal. (Tue, 03 Feb 2009 14:08:23 GMT)

GMAC swings to profit on gain from debt exchange
AP - GMAC Financial Services said Tuesday it swung to a fourth-quarter profit as proceeds from a debt swap more than offset billions of dollars in losses at its auto-financing and mortgage businesses. (Tue, 03 Feb 2009 14:11:29 GMT)

GMAC has $7.46 billion profit, main units still in red
Reuters - Finance company GMAC LLC, which won a government bailout in December, posted a $7.46 billion fourth-quarter profit on Tuesday as a gain from a debt swap offset billions of dollars of losses in its auto and mortgage units. (Tue, 03 Feb 2009 15:51:13 GMT)

Pending home sales rebound
Reuters - Pending sales of existing U.S. homes rebounded in December, data showed on Tuesday, as buyers waded back into the market to take advantage of lower prices and mortgage interest rates. (Tue, 03 Feb 2009 18:24:44 GMT)

Senate Republicans push alternative stimulus plans
Reuters - U.S. Senate Republicans on Tuesday offered their own, cheaper economic stimulus plans focused on tax cuts, pushing back against a nearly $900 billion Democratic plan they say encourages too much new spending. (Tue, 03 Feb 2009 23:55:09 GMT)

Non-payers can hurt small businesses at tax time
AP - It's a bit of insult added to injury — small business owners who had non-paying customers in 2008 are likely to find they can't take the bad debts as deductions on their income tax returns. (Wed, 04 Feb 2009 20:15:40 GMT)

Congress considers changes to mortgage aid program
AP - With fewer than 500 applications and only two-dozen homeowners helped so far, House lawmakers moved Wednesday to revamp a new program that was intended to help hundreds of thousands of borrowers avoid losing their homes. (Thu, 05 Feb 2009 03:07:19 GMT)

American Home Mtg buys servicing rights from Citi
AP - Citigroup Inc.'s residential mortgage unit has sold servicing rights on 185,000 loans to American Home Mortgage Servicing Inc. (Thu, 05 Feb 2009 13:08:09 GMT)

U.S. mortgage rates at highest level since December
Reuters - U.S. mortgage rates jumped to their highest levels since December in the latest week, complicating government efforts to bring mortgage rates down to levels that will spur demand and help the hard-hit housing market begin to recover. (Thu, 05 Feb 2009 18:06:25 GMT)

Health care a safe haven now, but for how long?
AP - Investors who sought refuge in health care have reason to feel less queasy than most in a sick economy where no industry has been recession-proof. (Thu, 05 Feb 2009 22:38:48 GMT)

Delphi seeks to end health benefits for retirees
AP - Troubled auto parts supplier Delphi Corp. has asked a bankruptcy judge to allow it to cancel health care and life insurance benefits for current and future salaried retirees, citing the steep downturn in the overall auto industry in recent months. (Fri, 06 Feb 2009 13:28:59 GMT)

Geithner eyeing Fannie, Freddie rescue role: sources
Reuters - The Obama administration is mulling an expanded role for Fannie Mae and Freddie Mac as part of an overarching plan to stabilize the financial sector that will be laid out on Monday, sources familiar with the administration's thinking said on Friday. (Fri, 06 Feb 2009 20:31:35 GMT)

Steps to help aging relatives handle finances
AP - If you dont' want to take over aging relatives personal finances altogether, family members can take steps to start helping: (Fri, 06 Feb 2009 21:58:30 GMT)

CORRECTION: Feb. 5 American Home Mortgage story
AP - In a story Feb. 5 about Citigroup's residential lending unit, The Associated Press erroneously reported that Citigroup Inc. sold servicing rights on a loan portfolio to American Home Mortgage Servicing Inc. for $1.5 billion. American Home Mortgage Servicing says the dollar amount is not the outright sale price; rather, most of the $1.5 billion includes advances American Home Mortgage is making to the trusts that own the loans. (Fri, 06 Feb 2009 23:03:13 GMT)

SEC looks to reassure investors
Reuters - Securities and Exchange Commission officials looked to reassure investors on Friday that they would reinvigorate the agency's policing of Wall Street, improve the quality of credit ratings and said they expect to bring more cases against mortgage fraud. (Sat, 07 Feb 2009 01:35:27 GMT)

U.S. bank plan to offer asset support, mortgage help
Reuters - The Obama administration's eagerly-awaited bank rescue plan will offer to insure some distressed assets held by banks, authorize the government to purchase others, and spend up to $100 billion to buy and modify troubled homeowner mortgages, a source with knowledge of the plan told Reuters on Friday. (Sat, 07 Feb 2009 04:08:42 GMT)

Fannie, Freddie to channel mortgage rescue: sources
Reuters - The Obama administration is crafting a mortgage-rescue program that would see Fannie Mae and Freddie Mac ease payments for hundreds of thousands of borrowers and offer a model for Wall Street to do the same, sources familiar with the plan said. (Sun, 08 Feb 2009 18:50:45 GMT)

Life insurance stocks up on possible government aid
Reuters - Shares of U.S. life insurers rose sharply on Monday on expectations that some will receive long-awaited approval for capital injections from the government's $700 billion financial bailout fund. (Mon, 09 Feb 2009 16:48:08 GMT)

One in eight lenders may fail, RBC says
Reuters - More than 1,000 U.S. banks, or one in eight lenders, may fail in the next three to five years as commercial loan losses rise, compounding problems from record mortgage delinquencies and soaring home equity loan defaults, RBC Capital Markets said on Monday. (Mon, 09 Feb 2009 21:32:03 GMT)

Obama aide Summers: private capital has role
Reuters - A top White House economic aide said on Monday that the Obama administration would push private investors to buy compromised mortgage-related assets that are clogging bank balance sheets. (Mon, 09 Feb 2009 21:47:26 GMT)

U.S. to lay out plan to sop up bad mortgage assets
Reuters - Treasury Secretary Timothy Geithner will lay out a rescue plan on Tuesday that will rely on public and private funds to take $500 billion of bad assets off banks' books, sources said. (Tue, 10 Feb 2009 14:12:29 GMT)

Life insurance stocks fall on rating worries
Reuters - U.S. life insurer shares fell sharply on Tuesday as investment losses triggered rating agency concerns. (Tue, 10 Feb 2009 16:27:45 GMT)

Economic crisis spurs personal finance classes
AP - High school teacher Daniel Jackson is reviewing lessons some adults would find difficult: mortgage loans, down payments, interest rates and closing costs. He tosses calculators to students, chastises them for not studying enough and urges them to apply problem-solving skills to decipher complex mortgage information. (Tue, 10 Feb 2009 19:15:54 GMT)

Obama pushes stimulus and vows plan for housing
Reuters - President Barack Obama urged the Congress to quickly complete work on a huge economic stimulus bill passed by the Senate on Tuesday and promised more help soon for the foundering housing market. (Tue, 10 Feb 2009 20:04:42 GMT)

Obama plan holds off on foreclosure rescue details
AP - To those on the front lines of the housing crisis, the Obama administration's pledge to spend $50 billion to combat foreclosures was a welcome change in the government's approach. But the actual plan won't be unveiled for at least a week and might not be enough to prevent the housing market's troubles from mushrooming further. (Tue, 10 Feb 2009 22:45:09 GMT)

Obama turns on Wall Street
AFP - President Barack Obama accused Wall Street of seeking an "easy" way out of the financial mire Tuesday after the announcement of his new industry rescue plan sent stocks dipping sharply. (Tue, 10 Feb 2009 23:42:20 GMT)

U.S. mortgage applications slump to 8-year low
Reuters - Demand for U.S. mortgage applications tumbled nearly 25 percent last week, with requests for loans to buy homes sinking to an eight-year low, the Mortgage Bankers Association said on Wednesday, as potential buyers hold out for better terms and government help. (Wed, 11 Feb 2009 12:01:54 GMT)

Mortgage applications tumble, U.S. trade gap shrinks
Reuters - The U.S. trade deficit shrank 4 percent in December, as the global financial crisis cut U.S. imports and exports for the fifth straight month, while U.S. demand for mortgages tumbled nearly 25 percent last week as potential buyers held out for better terms. (Wed, 11 Feb 2009 14:30:29 GMT)

FBI may shift counterterror agents to anti-fraud
AP - With thousands of fraud investigations under way, the FBI is considering shifting agents away from counterterrorism work to help sort through the wreckage of the financial meltdown. (Wed, 11 Feb 2009 23:05:19 GMT)

Advice for Young Investors
BusinessWeek Online - Two 22-year-olds are just starting their careers and beginning to save and invest. One devotes half his salary to quickly paying off student loans, with the goal of saving money to travel the world. The other dabbles in stocks, while planning to buy a home. Which one is starting out on the right foot? Neither? Both? (Thu, 12 Feb 2009 13:08:41 GMT)

Freddie Mac: rates on 30-year fixed mortgages fall
AP - Rates on 30-year-fixed mortgages fell this week, offering homeowners a chance to refinance their loans, Freddie Mac said Thursday. (Thu, 12 Feb 2009 17:38:19 GMT)

Mortgage mess sinks development bank portfolio
AP - The Inter-American Development Bank, the largest lender for projects including roads and power plants in Latin America, lost $1.9 billion on mortgages and other securities as part of an unusually aggressive investment strategy, according to internal bank documents obtained by The Associated Press. (Thu, 12 Feb 2009 22:14:10 GMT)

Little is absolute about absolute return funds
AP - When does "absolute" imply something that in reality is far less than certain? (Thu, 12 Feb 2009 22:40:55 GMT)

Absolute return funds at a glance
AP - Absolute return funds use strategies common among hedge funds to try to ensure a modest return in good times and bad. Several mutual fund companies have introduced absolute return funds the past few years, pitching them as options to limit volatility. But as recent results show, there's no guarantee a fund will hit its target, or even avoid a loss. Here's a look at performance of some absolute return funds available to individual investors: (Thu, 12 Feb 2009 22:43:03 GMT)

Stocks mixed after report of mortgage subsidies
AP - The stock market has made a late-day comeback, hoping that homeowners will get more help with their mortgages. (Thu, 12 Feb 2009 23:26:03 GMT)

Obama eyes home loan subsidies in rescue plan-sources
Reuters - The Obama administration is hammering out a program to subsidize mortgages in a new front to fight the credit crisis, sources familiar with the plan told Reuters on Thursday, boosting financial markets. (Thu, 12 Feb 2009 23:52:52 GMT)

Top U.S. thrift regulator Reich to step down
Reuters - The director of the U.S. Office of Thrift Supervision, which largely regulates mortgage lenders, will step down on February 27, the agency said on Thursday. (Fri, 13 Feb 2009 00:00:19 GMT)

Administration weighs plan to lower mortgage rates
AP - President Barack Obama's administration is considering spending taxpayer dollars to cut monthly payments for homeowners on the verge of foreclosure, according to two people briefed on the proposals. (Fri, 13 Feb 2009 01:34:08 GMT)

Lone Star, Goldman bid for failed Japan REIT: sources
Reuters - Lone Star , the Development Bank of Japan and Goldman Sachs Group Inc are among the final bidders for failed Japanese real estate investment trust New City Residence Investment Corp, two people familiar with the transaction said. (Fri, 13 Feb 2009 10:32:06 GMT)

What's Holding Back Mortgage Modification?
BusinessWeek Online - One supposed obstacle to sorting out the millions of mortgages that have gone bad is that the home loans have been bought by investment banks, bundled together into bonds, and sold to investors. This widespread process of "securitizing" loans makes it difficult to go back and modify the terms of individual mortgages so that strapped borrowers might be able to continue to make payments, according to mortgage industry experts. ... (Fri, 13 Feb 2009 13:08:41 GMT)

Private Equity Going Cheap
BusinessWeek Online - Speculation grew this week that Royal Bank of Scotland and Lloyds Banking Group will try to dump their private equity portfolios. The two British banks would join other financial companies, endowments, and pension plans forced to sell off positions in private partnerships because of financial pressures. With so many sellers, investors can buy into such funds for as little as 50% of asset value. "You can smell blood in the water," says Dan Deighan of Deighan Financial Advisors. ... (Fri, 13 Feb 2009 13:08:41 GMT)

Oil climbs above $34 on reports of US mortgage aid
AP - Reports that the U.S. government may subsidize mortgage payments pushed oil prices above $34 a barrel Friday after investor skepticism about the U.S. stimulus package weighed on prices earlier this week. (Fri, 13 Feb 2009 14:32:19 GMT)

Wall Street drops as banks temper optimism
Reuters - Stocks opened lower on Friday after Britain's Lloyds Banking Group announced bigger-than-expected losses, offsetting optimism over the U.S. mortgage subsidy plan and economic stimulus. (Fri, 13 Feb 2009 14:44:08 GMT)

Fannie Mae, Freddie Mac again suspend foreclosures
AP - Government-controlled mortgage finance companies Fannie Mae and Freddie Mac said Friday they have immediately suspended all foreclosure sales involving occupied single-family and 2-4 unit properties through March 6, to give troubled borrowers more time to work with loan servicers to avoid losing their homes. (Fri, 13 Feb 2009 22:52:19 GMT)

Obama to outline plan to stem home foreclosures
AP - The biggest players in the mortgage industry are halting home foreclosures while the Obama administration develops its plan to help struggling homeowners. (Fri, 13 Feb 2009 22:56:16 GMT)

Meltdown 101: How a mortgage aid plan might work
AP - The government, facing a housing crisis that's escalated far beyond all but the most dire predictions, is looking at ways to spend at least $50 billion to make sure borrowers can stay in their homes. (Fri, 13 Feb 2009 23:12:20 GMT)

Major US banks, mortgage giants freeze foreclosures
AFP - Two US banks and top mortgage finance giants have imposed moratoriums on home foreclosures until a comprehensive government plan emerges to ease the mortgage crisis, officials said Friday. (Sat, 14 Feb 2009 00:06:30 GMT)

Obama to unveil foreclosure plan, big lenders wait
Reuters - U.S. President Barack Obama will unveil a plan to stem home foreclosures on Wednesday, a spokesman said, and major U.S. lenders said they had stopped foreclosing until details of the program have been firmed up. (Sat, 14 Feb 2009 00:36:05 GMT)

Obama launches economic whirlwind
AP - President Barack Obama launches an economic whirlwind this week, signing the newly passed $787 billion economic stimulus package in Colorado, before moving to Arizona to tackle the home mortgage foreclosure crisis. (Sun, 15 Feb 2009 14:10:40 GMT)

Obama to appoint panel for auto recovery
AP - It will take more than one "car czar" to help get the embattled U.S. auto industry back on track, President Barack Obama has decided. Instead, his administration is establishing a presidential task force to direct the restructuring of General Motors Corp. and Chrysler LLC, a senior administration official said Sunday night. (Mon, 16 Feb 2009 14:02:04 GMT)

Barclays says shutting US mortgage lender EquiFirst
AFP - British bank Barclays said Tuesday that it has closed US subprime mortgage lending unit EquiFirst Corp. with immediate effect, citing current market conditions. (Tue, 17 Feb 2009 18:15:17 GMT)

Homeowners' rallying cry: Produce the note
AP - Kathy Lovelace lost her job and was about to lose her house, too. But then she made a seemingly simple request of the bank: Show me the original mortgage paperwork. (Tue, 17 Feb 2009 20:19:59 GMT)

Four bidders in fray for AIG's Philippine assets: sources
Reuters - U.S. insurer American International Group has shortlisted four potential buyers for its Philippine life insurance business, sources familiar with the negotiations said on Wednesday. (Wed, 18 Feb 2009 11:14:05 GMT)

Housing starts and permits at record lows in January
Reuters - New U.S. housing starts and building permits dropped to record lows in January, data showed on Wednesday, as builders shelved construction plans due to a glut of unsold houses and a slump in demand. (Wed, 18 Feb 2009 14:22:44 GMT)

US Treasury doubles aid to Fannie Mae, Freddie Mac
AFP - The US Treasury Department said Wednesday it was doubling its financial support to troubled mortgage finance giants Fannie Mae and Freddie Mac, to 200 billion dollars each, in an effort to stabilize the real estate sector. (Wed, 18 Feb 2009 14:38:51 GMT)

Obama to unveil $75 billion mortgage relief plan
AP - President Barack Obama's plan to tackle the foreclosure crisis will spend $75 billion in an effort to prevent up to 9 million Americans from losing their homes. (Wed, 18 Feb 2009 14:41:14 GMT)

Wall Street opens modestly higher after drop
AP - Wall Street is up modestly a day after a sharp drop in stocks as President Barack Obama prepares to unveil a $75 billion mortgage relief plan. (Wed, 18 Feb 2009 14:45:24 GMT)

Obama mortgage plan to aid up to 9 million families
Reuters - President Barack Obama's much-anticipated plan to deal with the U.S. housing crisis aims to help as many as 9 million families avoid foreclosure on their homes, one of the root causes of the global financial meltdown. (Wed, 18 Feb 2009 14:52:04 GMT)

Obama unveils mortgage plan to help up to 9 million
AFP - President Barack Obama Wednesday unveiled a strategy to help millions of people avoid housing foreclosure, including 75 billion dollars for homeowners stuck in a negative equity trap. (Wed, 18 Feb 2009 16:39:25 GMT)

MBIA shifts bond insurance business to new company
Reuters - MBIA Inc , the world's largest bond insurer, is separating its municipal bond unit into a new operation as it looks to rebuild a business shattered by the subprime mortgage crisis. (Wed, 18 Feb 2009 17:32:17 GMT)

Dollar climbs as Obama unveils housing plan
AP - The dollar climbed against most major currencies Wednesday as President Barack Obama unveiled a $75 billion mortgage relief plan, amid a downgrade on economic growth from the Federal Reserve and bleak reports that industry production and construction of new homes in the U.S. have plunged to record lows. (Wed, 18 Feb 2009 20:29:49 GMT)

CEO says JPMorgan may modify more mortgages
Reuters - JPMorgan Chase & Co may modify more than the 600,000 mortgages it has already singled out for restructuring, Chief Executive Jamie Dimon told CNBC in an interview on Wednesday. (Wed, 18 Feb 2009 20:35:54 GMT)

S&P, Nasdaq dip as housing plan fails to cut fear
Reuters - The S&P 500 and Nasdaq closed marginally lower on Wednesday as President Barack Obama's $275 billion plan to prop up the housing market failed to stem worries about the economy, and bleak housing data highlighted the deepening recession. (Wed, 18 Feb 2009 21:50:55 GMT)

Analysis: Obama offers carrots for mortgage firms
AP - The same mortgage lenders that candidate Barack Obama accused last year of causing the housing mess would get a windfall from President Obama's government under his foreclosure rescue program. (Wed, 18 Feb 2009 22:29:29 GMT)

Fed says US economy will get worse in 2009
AP - The Federal Reserve warned Wednesday that the nation's crippled economy is even worse than thought and predicted it would deteriorate throughout 2009, with no sign that the housing market will stabilize. (Wed, 18 Feb 2009 23:59:08 GMT)

Obama unveils 275 billion dollar housing plan
AFP - President Barack Obama targeted the housing crisis at the root of the US economic meltdown, with a program which could cost 275 billion dollars and reach nine million homeowners. (Thu, 19 Feb 2009 03:00:17 GMT)

Axa reveals 83% profit slide
AFP - French insurance group Axa on Thursday reported an 83 percent plunge in 2008 net earnings that it blamed on asset writedowns and a weaker performance in its life insurance unit. (Thu, 19 Feb 2009 09:50:51 GMT)

Obama Sets $75 Billion Mortgage Rescue Plan
BusinessWeek Online - President Barack Obama on Feb. 18 announced a plan to stabilize the faltering housing market by allowing up to 9 million families to refinance or restructure at-risk mortgages through a $75 billion "homeowner stability initiative" and other incentives to keep homes out of foreclosure. (Thu, 19 Feb 2009 13:08:41 GMT)

U.S. mortgage rates drop toward record low: Freddie
Reuters - Interest rates on standard U.S. 30-year mortgages dropped in the latest week to levels just shy of record lows as concerns of a deepening recession boosted the appeal of fixed-rate investments, Freddie Mac said on Thursday. (Thu, 19 Feb 2009 16:27:35 GMT)

Debate flares over Obama housing plan
AFP - President Barack Obama's new 275-billion-dollar mortgage plan will start working "very, very quickly," his top housing official said Thursday, after Republicans mounted attacks on the initiative. (Thu, 19 Feb 2009 17:59:47 GMT)

Large-cap stocks may trump small in market rebound
AP - As markets continue to founder, conventional wisdom suggests the place to be once a turnaround takes hold is in stocks of small companies. (Thu, 19 Feb 2009 22:42:11 GMT)

How the major market indexes fared Thursday
AP - Wall Street sold off again Thursday, driving the Dow Jones industrials to their lowest close in more than six years. Investors see no immediate end for the recession, already 14 months old, and have been unassuaged by the Obama administration's economic stimulus package and mortgage relief plan. (Thu, 19 Feb 2009 23:16:19 GMT)

Ask AP: Mortgage help, troops in Afghanistan
AP - You're struggling to make ends meet, but each month you manage to scrape together your mortgage payment, if just barely. Are there any programs out there that might help you lower your payments to something a little more affordable? (Fri, 20 Feb 2009 11:01:19 GMT)

Prudential to take 9.9% stake in China Life
AFP - British insurance group Prudential Plc. Friday agreed to acquire a 9.9 percent stake in Taiwan's China Life Insurance, the two firms said after signing the deal. (Fri, 20 Feb 2009 13:25:50 GMT)

Delphi salaried retirees fight benefit cuts
AP - Nancy Shade's father and grandparents had enjoyed the security of General Motors' benefits before they helped draw her to a job there, too. Now, the five-year breast cancer survivor is wondering how she'll afford her own health coverage if GM's spun-off parts maker, Delphi, terminates medical and life insurance benefits for salaried retirees. (Sun, 22 Feb 2009 21:47:53 GMT)

Nationalized UK bank to expand mortgage book
AP - Britain's government is throwing nationalized lender Northern Rock back into the home loan business in a bid to spur the market for mortgages, a government official said Sunday. (Mon, 23 Feb 2009 01:05:59 GMT)

Freddie Mac investigates self over lobby campaign
AP - Lawyers hired by mortgage finance giant Freddie Mac are quietly investigating the firm's own $2 million lobbying campaign, The Associated Press has learned. The lobbying effort helped quash proposed new regulations on the company before the housing market collapsed. (Mon, 23 Feb 2009 11:23:24 GMT)

Northern Rock bank to boost UK home loans
AFP - State-owned British bank Northern Rock announced Monday that it would lend an additional 14 billion pounds (16 billion euros, 20.5 billion dollars) to would-be homebuyers in the next two years. (Mon, 23 Feb 2009 12:03:14 GMT)

Democrat leader sees bankruptcy bill this week
Reuters - The leader of the U.S. House of Representatives said on Monday lawmakers expect to begin debating legislation this week that would let judges erase some mortgage debt for borrowers who file for bankruptcy. (Mon, 23 Feb 2009 22:53:12 GMT)

Housing bill to shield firms modifying loans
Reuters - U.S. bankruptcy judges would get power to modify home loans and mortgages services who alter loans would win protection from bondholder lawsuits under a bill to be considered by U.S. lawmakers later this week, sponsors of the legislation said on Monday. (Tue, 24 Feb 2009 01:21:41 GMT)

House to take up housing bill on Thursday
Reuters - The U.S. House of Representatives is expected to vote on a bill on Thursday that would let bankruptcy judges rewrite home loans and shield mortgage servicers who modify loans from bondholder lawsuits. (Tue, 24 Feb 2009 03:11:16 GMT)

Are You Paying Your Pro the Wrong Way?
The Motley Fool - When hiring a financial planner, it pays to screen carefully. It's important to understand exactly how each candidate is paid, so that you can make an informed market decision. But remember, few worthwhile pros work for peanuts. Don't get so ruthless about cost that you end up with worthless advice. (Tue, 24 Feb 2009 15:44:15 GMT)

Judge lets Delphi halt salaried retiree benefits
AP - A bankruptcy judge on Tuesday tentatively approved Delphi Corp.'s request to stop paying for its salaried retirees' health and life insurance, but he left the door open for some former employees to be excluded from the move. (Tue, 24 Feb 2009 22:46:44 GMT)

Obama says 'day of reckoning has arrived'
AP - President Barack Obama says the "day of reckoning has arrived" for Americans after a spree of extravagant buying, gutted regulations and little or no long-term financial planning. (Wed, 25 Feb 2009 00:35:17 GMT)

FACT CHECK: Obama's words on home aid ring hollow
AP - President Barack Obama knows Americans are unhappy that their taxes will be used to rescue people who bought mansions beyond their means. (Wed, 25 Feb 2009 10:46:52 GMT)

Ambac reports $2.34 billion quarterly net loss
Reuters - Ambac Financial Group Inc reported a fourth-quarter loss of more than $2 billion on Wednesday as the bond insurer set aside nearly $1 billion more for losses tied to residential mortgage debt. (Wed, 25 Feb 2009 14:20:02 GMT)

AIG's fading hope for AIA sale pinned on 3 parties
Reuters - Three potential bidders are still looking at buying a large stake in American International Group's key Asian life insurance unit, people close to the matter said on Wednesday. (Wed, 25 Feb 2009 17:52:19 GMT)

Mortgage applications decline as refinancing eases
AP - Mortgage applications fell last week, as refinancing activity slowed. (Wed, 25 Feb 2009 22:41:11 GMT)

JPMorgan sees home equity losses and 12,000 WaMu cuts
Reuters - JPMorgan Chase & Co said it expects losses of $1 billion to $1.4 billion in each quarter of 2009 tied to its "non-credit-impaired" home equity loan portfolio. (Thu, 26 Feb 2009 14:00:04 GMT)

House likely to delay mortgage aid vote: sources
Reuters - Democratic leaders of the U.S. House of Representatives are likely to postpone a planned Thursday vote on a controversial measure that would let bankruptcy judges reduce mortgage debt for troubled borrowers, said sources familiar with the legislation. (Thu, 26 Feb 2009 16:52:36 GMT)

Some mutual fund managers feel your pain
AP - Jeff Auxier plowed all his retirement savings into Auxier Focus Fund when he launched it nearly a decade ago. He also vowed to never sell any of his initial $1 million investment. (Thu, 26 Feb 2009 21:52:31 GMT)

HUD secretary, Congress debate foreclosure plans
AP - Against a backdrop of record-low new home sales and ballooning losses from foreclosures, Housing Secretary Shaun Donovan told lawmakers Thursday that the lending industry is set to launch the Obama administration's $75 billion foreclosure prevention program next week. (Thu, 26 Feb 2009 23:27:11 GMT)

Fannie Mae seeks $15.2B in US aid after 4Q loss
AP - Fannie Mae said Thursday it needs $15.2 billion in government aid — though that figure is expected to grow — because it lost nearly $59 billion last year as the foreclosure crisis mushroomed. (Fri, 27 Feb 2009 00:12:58 GMT)

Fannie Mae posts huge 2008 loss, seeks new bailout
AFP - Troubled US mortgage finance giant Fannie Mae said Thursday it lost almost 60 billion dollars last year and expected to suffer more losses in 2009, and asked for a further 15.2 billion dollars in government aid. (Fri, 27 Feb 2009 00:55:35 GMT)

Retirement: Test your financial planning IQ
AP - The formula for a financially successful retirement used to be straightforward: Work for decades for one employer and then live happily ever after on the pension, Social Security and whatever personal savings you were able to amass. (Fri, 27 Feb 2009 21:31:12 GMT)

AIG talks weigh securitizing life policies: source
Reuters - American International Group Inc may securitize some U.S. life insurance policies and have the interest rate on a government loan lowered, as talks continue to help the insurer deal with its financial problems, a source familiar with the matter said on Friday. (Sat, 28 Feb 2009 00:57:56 GMT)