Personal Finance News May 2009

Freddie Mac pays 2008 bonuses, honors Kellermann's
Reuters - Freddie Mac, the U.S. mortgage finance giant, on Thursday said it paid $1.3 million in retention bonuses to three executives in late 2008 and so far this year, including a full payout of the award promised to its acting chief financial officer before his shocking death, according to a Securities and Exchange Commission filing. (Fri, 01 May 2009 00:37:58 GMT)

Freddie Mac pays $700K to former exec's survivors
AP - Freddie Mac is paying out more than $700,000 to the family of David Kellermann, the mortgage finance company's former acting chief financial officer who died last week in an apparent suicide, the company disclosed Thursday. (Fri, 01 May 2009 01:48:38 GMT)

Obama Expands Housing Aid Plan
BusinessWeek Online - The Obama Administration said on Apr. 28 it is expanding its plan to stem the housing crisis by offering mortgage lenders incentives to lower borrowers' bills on second mortgages. (Fri, 01 May 2009 12:08:42 GMT)

Meltdown 101: Low mortgage rates not for everyone
AP - Every week, mortgage finance giant Freddie Mac releases average rates on four types of home loans, including 30-year fixed rate mortgages — the most popular type of loan for home buyers. (Fri, 01 May 2009 21:00:19 GMT)

Singers tell Congress: Money (That's What I Want)
AP - Jack Ely, the singer whose 1963 version of "Louie Louie" still makes the rounds on oldies radio, lives with his wife in a mobile home on a horse ranch in Oregon. Ely says they share $30,000 a year from her teacher's pension and his Social Security checks. They are paying down a mortgage. (Sun, 03 May 2009 17:13:19 GMT)

Obama Expands Housing Aid Plan
BusinessWeek Online - The Obama Administration said on Apr. 28 it is expanding its plan to stem the housing crisis by offering mortgage lenders incentives to lower borrowers' bills on second mortgages. (Mon, 04 May 2009 12:08:41 GMT)

Tyson Foods posts bigger loss
Reuters - Tyson Foods Inc reported a larger quarterly loss on Monday as a weak economy hurt meat sales and the company had additional income tax expenses. (Mon, 04 May 2009 12:11:16 GMT)

Singers tell Congress: Money (That's What I Want)
AP - Jack Ely, the singer whose 1963 version of "Louie Louie" still makes the rounds on oldies radio, lives with his wife in a mobile home on a horse ranch in Oregon. Ely says they share $30,000 a year from her teacher's pension and his Social Security checks. They are paying down a mortgage. (Mon, 04 May 2009 13:46:19 GMT)

Senate rejects narrowed "safe harbor" amendment
Reuters - The U.S. Senate on Tuesday rejected a measure that would have narrowed the scope of a housing rescue bill and discouraged mortgage servicers from retooling problem home loans. (Tue, 05 May 2009 15:53:31 GMT)

GMAC 1Q loss widens as credit markets remain weak
AP - GMAC Financial Services said Tuesday that it will not be automatically be forced to file for bankruptcy protection if General Motors Corp. is unable to restructure itself by its government imposed deadline. (Tue, 05 May 2009 16:37:10 GMT)

GMAC loss widens, says can weather GM bankruptcy
Reuters - GMAC LLC, which provides loans to buyers of General Motors Corp vehicles, said its first-quarter loss grew 15 percent, reflecting an increase in soured mortgage and auto loans as the economy weakens. (Tue, 05 May 2009 16:41:21 GMT)

Major banks funded U.S. subprime lenders: study
Reuters - More than twenty of the largest subprime mortgage lenders relied on financing from U.S. banks that are now relying on billions of dollars in rescue funds, a report release on Wednesday concludes. (Wed, 06 May 2009 15:46:10 GMT)

Senate moves toward easing mortgage terms
AP - Trying to curb home foreclosures, the Senate voted on Wednesday to make it easier for homeowners with risky credit to switch to a lower-cost mortgage backed by the government. (Wed, 06 May 2009 21:27:58 GMT)

U.S. commercial property faces default decade: report
Reuters - At least two-thirds of the $410 billion of U.S. commercial mortgage-backed securities (CMBS) loans that mature from this year through 2018 are not likely to qualify for refinancing, according to a report by Deutsche Bank. (Thu, 07 May 2009 17:51:18 GMT)

Mortgage rates rise, shy of record low
AP - Rates on 30-year mortgages inched up this week after matching an all-time record low a week earlier. (Thu, 07 May 2009 18:07:54 GMT)

Consumer credit falls at fastest pace in 18 years
AP - Consumer borrowing plunged in March at the fastest pace in 18 years as Americans put away their credit cards and hoarded cash amid the worst recession in decades. (Thu, 07 May 2009 19:04:03 GMT)

House passes mortgage investment reform bill
Reuters - The U.S. House of Representatives on Thursday approved a measure that would force mortgage lenders to retain a 5 percent stake in home loans that are sold to investors. (Thu, 07 May 2009 19:41:23 GMT)

Fannie Mae suffers $23.2 bln loss
AFP - Troubled US mortgage finance giant Fannie Mae on Friday reported a loss of 23.2 billion dollars in the first quarter of 2009 as it reeled from a home mortgage meltdown that triggered global crisis. (Fri, 08 May 2009 13:36:11 GMT)

Fannie Mae seeks $19B in US aid after 1Q loss
AP - Fannie Mae is requesting $19 billion in additional government aid as job losses grow and risky loans made during the housing boom go bad at a disquieting pace. (Fri, 08 May 2009 14:56:51 GMT)

Fannie Mae taps Treasury again after $23 billion loss
Reuters - Fannie Mae , the largest provider of U.S. home mortgage funding, said on Friday it needs more capital from the U.S. Treasury after a $23.2 billion loss in the first quarter, and warned government housing programs would cut deeper into its profitability. (Fri, 08 May 2009 14:58:47 GMT)

Genworth shares slip after 1Q loss
AP - Shares of Genworth Financial Inc. gave ground Friday, the day after the insurer reported a first-quarter loss largely due to subprime mortgage impairments and investment losses. (Fri, 08 May 2009 17:00:16 GMT)

Massachusetts, Goldman in $60 million subprime accord
Reuters - Goldman Sachs Group Inc agreed to pay up to $60 million to settle Massachusetts' complaints about the investment bank's role in the subprime mortgage business, state officials said on Monday. (Mon, 11 May 2009 16:42:24 GMT)

AIG sells Japan headquarters for $1.2 billion
AP - Embattled insurer American International Group Inc. said Monday it is selling its Japanese headquarters to Nippon Life Insurance Co. for $1.2 billion in cash. (Mon, 11 May 2009 16:47:24 GMT)

"Sickly" market sparks commercial mortgage feud
Reuters - As the market for U.S. office, retail and apartment building loans heads south, investors in commercial mortgage-backed securities and servicers of the loans are feuding over how to best save their skins. (Tue, 12 May 2009 19:13:34 GMT)

Freddie Mac asks for more US cash after loss
AFP - Freddie Mac, the US mortgage finance giant seized by the government last year, said Tuesday it lost 9.9 billion dollars in the first quarter as it requested an increase in a government bailout. (Tue, 12 May 2009 21:00:38 GMT)

Freddie Mac seeks $6.1B in US aid after 1Q loss
AP - Mortgage giant Freddie Mac is looking for $6.1 billion in additional government aid as the cost to taxpayers from the housing market bust keeps growing. (Tue, 12 May 2009 21:51:01 GMT)

Report: SEC may charge Angelo Mozilo with fraud
AP - The staff of the Securities and Exchange Commission has decided to recommend that the agency bring civil fraud charges against Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial Corp., according to a published report Wednesday. (Thu, 14 May 2009 00:59:33 GMT)

Obama administration to expand housing plan
AP - The Obama administration expanded its $50 billion mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a foreclosure if they don't qualify for other assistance. (Thu, 14 May 2009 16:19:05 GMT)

Obama administration to expand housing plan
AP - The Obama administration expanded its $50 billion mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a foreclosure if they don't qualify for other assistance. (Thu, 14 May 2009 18:49:02 GMT)

The View from Atop a Collapsing Fannie Mae
BusinessWeek Online - Of the 11 companies that Jim Collins featured in his best seller Good to Great, just one -- Circuit City -- no longer exists. But amid a brutal housing crisis, the mortgage finance giant Fannie Mae , which Collins called "a high-performance machine," now finds itself in government conservatorship. BusinessWeek's Jena McGregor spoke to former CEO Daniel Mudd, who was dismissed when the government took over. (Fri, 15 May 2009 12:08:41 GMT)

GMAC renames bank unit Ally Bank, drops own name
Reuters - GMAC LLC, stung by billions of dollars in losses at its auto finance and mortgage units, on Friday scrapped its own name from its banking unit, which it will now call Ally Bank in an effort to gain customers. (Fri, 15 May 2009 15:57:04 GMT)

Obama's personal finances are sound
AP - President Barack Obama's personal finances appear to be on sound footing even as the nation's economy struggles, a financial report he released Friday shows. (Fri, 15 May 2009 21:16:11 GMT)

U.S. money manager takes aim at subprime servicer
Reuters - A money manager owned by Canada's Manulife Financial Corp is seeking to fire one of the largest subprime mortgage companies in the United States, claiming that Carrington Mortgage Services is unfairly tarnishing some bonds. (Fri, 15 May 2009 22:05:19 GMT)

Stocks may brake for housing, Home Depot
Reuters - U.S. stocks are likely to hit more speed bumps next week as investors become more wary of Wall Street's ability to rally further and housing starts, jobless claims and other indicators are in the spotlight. (Sat, 16 May 2009 01:31:18 GMT)

Wall St Wk Ahead: Stocks may brake for housing, Home Depot
Reuters - U.S. stocks are likely to hit more speed bumps this week as investors become more wary of Wall Street's ability to rally further and housing starts, jobless claims and other indicators are in the spotlight. (Sun, 17 May 2009 15:34:10 GMT)

AIG looks to spin off Asian insurance unit
AP - American International Group is planning to spin off its Asian life insurance unit in an initial public offering as the faltering U.S. company seeks to repay billions in government bailout funding. (Mon, 18 May 2009 10:32:41 GMT)

AIG plans to spin off Asian life insurance unit
AP - American International Group Inc. plans to spin off its Asian life insurance unit in an initial public offering to help repay billions of dollars in U.S. government loans. (Mon, 18 May 2009 15:22:58 GMT)

Congress gives final OK to mortgage fraud bill
Reuters - The U.S. House of Representatives gave final approval on Monday to a bill that will create an independent commission to investigate the cause of the U.S. economic meltdown and give federal prosecutors more legal clout and staff to crack down on financial fraud. (Mon, 18 May 2009 23:28:58 GMT)

U.S. housing starts, permits hit record lows in April
Reuters - New U.S. housing starts and permits unexpectedly fell to record lows in April, a government report showed on Tuesday, denting hopes that stability in the housing market was imminent. (Tue, 19 May 2009 13:06:30 GMT)

US home building starts, permits hit record lows
AFP - US housing starts and building permits slumped in April to record lows, highlighting the crisis in the real-estate sector as the economy struggles with recession, government data showed Tuesday. (Tue, 19 May 2009 13:37:50 GMT)

Beazer Mortgage to refund millions to NC borrowers
AP - North Carolina banking officials say Beazer Mortgage Corp. will refund $2.5 million to more than a thousand borrowers to settle claims it violated state lending laws. (Tue, 19 May 2009 15:01:56 GMT)

Wall Street flat as data tempers recovery hopes
Reuters - Stocks were little changed on Tuesday as data suggesting no let-up in the housing slump tempered investors' hopes that the recession was moderating. (Tue, 19 May 2009 15:53:41 GMT)

Stocks waver after surprise drop in housing data
AP - Investors are curbing their optimism about an economic rebound after housing construction tumbled to a record low in April. (Tue, 19 May 2009 16:11:59 GMT)

Oil up slightly, US refinery problems support
Reuters - Oil prices rose on Tuesday on buying inspired by gains on Wall Street and a flurry of U.S. refinery problems leading into peak summer driving season. (Tue, 19 May 2009 17:08:55 GMT)

Treasury prices mixed after drop in housing starts
AP - Treasurys finished mixed Tuesday along with stocks after new home construction dropped to the lowest pace on record. (Tue, 19 May 2009 21:13:30 GMT)

Lawmakers seek tighter oversight of credit raters
AP - Lawmakers on Tuesday proposed tightening oversight of Wall Street's credit rating agencies as regulators move to reshape supervision of the industry widely criticized for failing to give investors adequate warning of the risks in subprime mortgage securities. (Tue, 19 May 2009 23:26:29 GMT)

NC appeals court upholds tax bill for Wal-Mart
AP - The state Court of Appeals ruled Tuesday against Wal-Mart Stores Inc. and its efforts to get a $33 million tax refund, upholding a trial judge's ruling that found a complex corporate structure was used primarily to avoid corporate income taxes. (Wed, 20 May 2009 00:05:42 GMT)

US mulls consumer financial protection agency
AFP - President Barack Obama's administration is mulling creation of a federal consumer finance agency to protect the public from predatory mortgage lenders, credit card providers and mutual fund companies, the Washington Post has reported. (Wed, 20 May 2009 03:13:45 GMT)

A Frigid April for Housing Starts
BusinessWeek Online - Looks like the "green shoots" for the U.S. housing market are taking their sweet time springing through the soil. One day after a surprising jump in the National Association of Home Builders' sentiment survey in April, Wall Street was hoping that the May 19 release of the U.S. housing starts report for April would show a modest uptick, with economists forecasting a rise to a 523,000-unit annual pace from an unrevised 510,000 in March. (Wed, 20 May 2009 12:08:41 GMT)

Obama signs mortgage bill into law
AP - President Barack Obama said homeowners facing foreclosure would have a second chance under a measure he signed into law on Wednesday, but he added consumers still must live within their means. (Wed, 20 May 2009 22:17:11 GMT)

Fed mulled increasing debt purchases in April
Reuters - The Federal Reserve said on Wednesday it saw modest improvements in the U.S. economy last month, but it still saw big risks and left open the possibility of increasing its purchases of mortgage-related and government debt to keep credit flowing and spur recovery. (Wed, 20 May 2009 22:17:12 GMT)

U.S. could take 17 years to exit GMAC after an IPO
Reuters - GMAC LLC, which is giving the U.S. Treasury Department a 35.4 percent equity stake, said on Friday it might take 17 years for the government to shed its investment if the auto and mortgage lender were to go public. (Fri, 22 May 2009 14:00:20 GMT)

Citi, SEC in talks to settle asset disclosure probe: report
Reuters - Citigroup Inc is in early negotiations with the U.S. Securities and Exchange Commission (SEC) to settle a probe into whether it misled investors by not properly disclosing the amount of troubled mortgage assets it held as the markets started to fall in 2007, the Wall Street Journal said, citing people familiar with the matter. (Thu, 28 May 2009 04:56:10 GMT)

Good News on the Mortgage Mess
BusinessWeek Online - Smart shoppers for used cars know how to avoid lemons. Now buyers of residential mortgage-backed securities are likewise learning how to distinguish the bad from the good. That bodes well for healing housing finance. (Thu, 28 May 2009 12:08:43 GMT)

12 pct. are behind on mortgage or in foreclosure
AP - A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit. And the wave of foreclosures isn't expected to crest until the end of next year, the Mortgage Bankers Association said Thursday. (Thu, 28 May 2009 15:25:30 GMT)

About 12 percent of U.S. homeowners late paying or foreclosed
Reuters - One of eight U.S. households with a mortgage ended the first quarter late on loan payments or in the foreclosure process in a crisis that will persist for at least another year until unemployment peaks, the Mortgage Bankers Association said on Thursday. (Thu, 28 May 2009 17:17:44 GMT)

Mortgage rates rise, remain below 5 pct
AP - Rates on 30-year home loans rose this week and were poised to go higher as investors demanded higher rates for long-term government debt, which is closely tied to mortgage rates. (Thu, 28 May 2009 18:00:28 GMT)

U.S. FHA to apply $8,000 credit to home buying costs
Reuters - The Federal Housing Administration will allow the new $8,000 first-time homebuyer tax credit to be applied directly toward home purchase costs when using an FHA-insured mortgage, the Department of Housing and Urban Development said on Friday. (Fri, 29 May 2009 15:01:34 GMT)

MetLife CEO says insurers need voice in Washington
Reuters - MetLife Inc Chief Executive Robert Henrikson on Friday said the economic crisis has made it imperative that the life insurance industry be given a voice in Washington. (Fri, 29 May 2009 16:10:32 GMT)