Personal Finance News Aug 2009

European Banks Get More Confident
BusinessWeek - Banks in the euro area have relaxed restrictions on borrowers from companies and households, while demand for home loans has surged for the first time since early 2006, a fresh survey by the European Central Bank has found. (Mon, 03 Aug 2009 12:08:41 GMT)

Gov't counting on public shame to help loan effort
AP - The Obama administration wants to shame the mortgage industry into doing a better job of helping borrowers avoid losing their homes to foreclosure. (Tue, 04 Aug 2009 10:41:08 GMT)

GMAC net loss widens to $3.9 billion
Reuters - Auto and mortgage lender GMAC Financial Services said on Tuesday its quarterly net loss widened to $3.9 billion in the second quarter, from $2.5 billion a year ago, reflecting charges related to the company's incorporation and mortgage losses. (Tue, 04 Aug 2009 12:34:51 GMT)

2 big banks lag in mortgage aid program
AP - Both Bank of America and Wells Fargo got low marks in the first monthly report card on the Obama administration's plan to stem the foreclosure crisis. (Tue, 04 Aug 2009 14:51:47 GMT)

GMAC Financial posts wider 2Q loss of $3.9 billion
AP - GMAC Inc., said Tuesday it posted a wider second-quarter loss of $3.9 billion as it shifted from being primarily an auto and mortgage loan company to an online, retail bank. (Tue, 04 Aug 2009 15:36:41 GMT)

Global automakers beat forecasts, stay cautious
Reuters - Leading global automakers reported forecast-beating quarterly results on Tuesday, but continued to give cautious outlooks for the industry, which remains hard hit by weak demand and a lack of consumer credit. (Tue, 04 Aug 2009 16:42:15 GMT)

Wall Street edges up on home sales data
Reuters - Stocks edged higher on Tuesday as better-than-expected data on home sales underpinned signs of an economic recovery, but the gains were capped as investors took profits in shares that propelled the recent rally. (Tue, 04 Aug 2009 17:00:49 GMT)

Fla.-based mortgage company suspended
AP - A prominent U.S. mortgage company is being investigated by the Housing and Urban Development Department after allegedly failing to submit a required financial report, raising concerns of fraud. (Tue, 04 Aug 2009 21:02:09 GMT)

Citi plans to sell 20 consumer finance businesses: report
Reuters - Citigroup plans to sell 20 businesses in consumer finance area, many of them located in Europe, its CEO Vikram Pandit said in an interview with Singapore's Business Times. (Wed, 05 Aug 2009 09:24:58 GMT)

British home prices rise in July: survey
AFP - British home prices rose by 1.1 percent in July from the level the previous month, but fell over 12 months, a survey from home-loans provider Halifax showed on Wednesday. (Wed, 05 Aug 2009 09:32:06 GMT)

Mortgage demand boosted by refinancing as rates drop
Reuters - Demand for U.S. home loans rose last week as a decline in 30-year fixed mortgage rates to a three-week low boosted applications for refinancing, the Mortgage Bankers Association said on Wednesday. (Wed, 05 Aug 2009 15:51:47 GMT)

Tips for borrowers dealing with loan servicers
AP - Having trouble paying your mortgage? To find out if you qualify for a loan modification, you'll have to work with a loan servicer — the company that collects your mortgage payments. (Wed, 05 Aug 2009 19:02:04 GMT)

Summary box: Servicers facing hundreds of lawsuits
AP - WHO'S ACCUSED OF WHAT? Loan servicers are middlemen who collect mortgage payments from homeowners and pass them to banks and other investors. An Associated Press investigation found thousands of lawsuits accusing servicers of charging illegal fees, foreclosing prematurely and otherwise preying on homeowners they're supposed to help. (Wed, 05 Aug 2009 20:16:04 GMT)

Fannie, Freddie regulator to step aside
Reuters - James Lockhart, the U.S. regulator who nationalized Fannie Mae and Freddie Mac, will soon resign after more than three years as overseer for the mortgage finance companies, an administration official said on Wednesday. (Wed, 05 Aug 2009 21:33:27 GMT)

The servicers in gov't loan-modification plan
AP - A look at the loan servicers in Treasury's mortgage-modification program, the taxpayer money they could receive and the percentage of eligible loans they've offered to modify so far. The servicers will keep some of Treasury's money and will pass some of it on to investors and homeowners. (Modification figures are not available for some servicers because they joined the program too recently.) (Wed, 05 Aug 2009 22:40:17 GMT)

AP IMPACT: Gov't mortgage partners sued for abuses
AP - Billions of dollars the government is spending to help financially pressed homeowners avert foreclosure are passing through — and enriching — companies accused of preying on the people they're supposed to help, an Associated Press investigation has found. (Thu, 06 Aug 2009 00:52:15 GMT)

Housing agency chief Lockhart to step down
AP - The head of the federal agency that regulates mortgage finance companies Fannie Mae and Freddie Mac is planning to step down by the end of the month. (Thu, 06 Aug 2009 01:03:08 GMT)

White House views splitting Fannie, Freddie assets
Reuters - U.S. officials are considering a plan to isolate failing assets held by Fannie Mae and Freddie Mac , The Washington Post reported on Wednesday, while an administration official said such an idea was in the early stages of development. (Thu, 06 Aug 2009 03:20:17 GMT)

Fannie Mae, Freddie Mac could be split: report
AFP - The US government could split troubled state-backed mortgage firms Fannie Mae and Freddie Mac and place the firms' toxic assets in a federal corporation, The Washington Post reported. (Thu, 06 Aug 2009 03:30:24 GMT)

FHFA names interim replacement for Lockhart
AP - The federal agency that regulates Fannie Mae and Freddie Mac named Thursday an interim replacement for its director, who is stepping down at the end of the month. (Thu, 06 Aug 2009 13:59:26 GMT)

Mortgage rates dip this week
AP - Rates on 30-year mortgages dipped this week after economic reports came in better than expected, Freddie Mac said Thursday. (Thu, 06 Aug 2009 16:00:21 GMT)

Demand rises for gov't consumer credit program
AP - Investors' appetite picked up this month for a government program aimed at spurring lending to consumers and small businesses at lower rates. (Thu, 06 Aug 2009 21:32:10 GMT)

Fannie Mae draws on U.S. support after $14.8 billion loss
Reuters - Fannie Mae, the largest provider of U.S. home mortgage funding, on Thursday reported a $14.8 billion quarterly net loss that it said would force it to go to the U.S. Treasury trough a third time for money to stay in business. (Thu, 06 Aug 2009 23:25:06 GMT)

Fannie Mae seeks $10.7B in US aid after 2Q loss
AP - Fannie Mae plans to tap $11 billion in new government aid after posting another massive quarterly loss as the taxpayer bill from the housing market bust keeps growing. (Thu, 06 Aug 2009 23:25:27 GMT)

House Democrat received Countrywide loans: report
Reuters - A leading Democrat in the House of Representatives who has rebuffed Republican efforts to subpoena records of a mortgage program for favored borrowers at Countrywide Financial Corp got home loans from that lender, the Wall Street Journal reported on Friday. (Fri, 07 Aug 2009 15:43:47 GMT)

Colonial BancGroup faces criminal probe, FDIC action
Reuters - Colonial BancGroup Inc said it faces a criminal probe by the U.S. Department of Justice (DoJ) related to accounting irregularities at its mortgage lending unit, and the struggling lender warned it may be put under receivership. (Fri, 07 Aug 2009 16:00:31 GMT)

Colonial BancGroup faces federal investigation
AP - Colonial BancGroup said Friday it is under criminal investigation by the Department of Justice over alleged accounting irregularities at its mortgage warehouse lending unit. (Fri, 07 Aug 2009 16:21:07 GMT)

Consumers cut debt for 5th straight month
AP - Consumers paid down their credit cards and cut other debt in June for the fifth straight month as they rebuild savings battered by the recession. (Fri, 07 Aug 2009 20:10:55 GMT)

Freddie Mac swings to profit, after steep losses
AFP - US mortgage finance giant Freddie Mac announced Friday it swung to a profit of 768 million dollars in the second quarter, after a 9.9 billion dollar loss in the previous quarter. (Fri, 07 Aug 2009 21:04:04 GMT)

Freddie Mac reports first profit in two years
Reuters - Freddie Mac, the second largest provider of U.S. home mortgage funding, on Friday posted its first quarterly profit in two years as gains from hedges and a one-time accounting change offset still-lofty credit losses. (Fri, 07 Aug 2009 22:37:47 GMT)

First Horizon's performance earns it a downgrade
AP - First Horizon National Corp.'s aggressive handling of its bad mortgage and construction loans earned the bank praise, but it's stock got a downgrade Monday. (Mon, 10 Aug 2009 18:10:38 GMT)

High-profile Calif. real estate agent acquitted
AP - A high-profile Beverly Hills real estate agent has been acquitted of participating in a massive mortgage fraud scheme that caused federally insured banks to lose more than $40 million. (Tue, 11 Aug 2009 02:09:15 GMT)

Norwegian towns sue Citigroup over subprime loss
AFP - Seven Norwegian towns, some clustered around the Arctic Circle, have sued US banking giant Citigroup for more than 200 million dollars of losses plus damages linked to the sub-prime mortgage crisis, their lawyer said Tuesday. (Tue, 11 Aug 2009 18:50:01 GMT)

Bankruptcy seen "imminent" for lender Taylor Bean
Reuters - Lawyers for Taylor, Bean & Whitaker Mortgage Corp, the 12th-largest U.S. mortgage lender, said in court papers last week that a "bankruptcy filing is imminent" for the lender after it was forced to shut down mortgage lending operations. (Wed, 12 Aug 2009 02:33:50 GMT)

Mortgage applications drop as loan rates rise
Reuters - U.S. mortgage applications fell last week, reflecting a drop in demand for home refinancing loans as interest rates soared to their highest levels since June, data from an industry group showed on Wednesday. (Wed, 12 Aug 2009 16:06:59 GMT)

Clarification: Mortgage fraud story
AP - In the first paragraph of an Aug. 10 story about a mortgage fraud trial, The Associated Press reported that real estate agent Joseph Babajian was acquitted in the scheme, while two others were found guilty. The paragraph should have noted that Babajian was acquitted only of several charges. (Thu, 13 Aug 2009 01:31:55 GMT)

U.S. home foreclosures set another record in July
Reuters - U.S. home loans failed at a record pace in July despite ongoing federal and state programs to avoid foreclosures, which have severely strained housing and the economy. (Thu, 13 Aug 2009 12:12:48 GMT)

Arison family plans to sell some Carnival shares
AP - Cruise operator Carnival Corp. said Thursday that some Arison family members and related entities plan to sell up to 8.5 million common shares for tax planning, estate planning and diversification purposes. (Thu, 13 Aug 2009 13:21:10 GMT)

U.S. mortgage rates rise, may curb demand: survey
Reuters - U.S. mortgage rates rose in the latest week as Treasury yields climbed, according to a survey released on Thursday, a move that may dampen home loan demand. (Thu, 13 Aug 2009 16:22:19 GMT)

Ginnie Mae top exec leaving for private sector job
AP - The head of the government agency that packages federally backed mortgages into investments is stepping down for a new job, people familiar with his plans said. (Thu, 13 Aug 2009 20:45:29 GMT)

Visteon seeks to end retiree benefits
AP - Auto parts supplier Visteon Corp. is asking a Delaware bankruptcy judge for permission to terminate retiree health care and life insurance benefits for thousands of current and former workers. (Thu, 13 Aug 2009 22:52:37 GMT)

U.S. says ex-Credit Suisse broker in bait-and-switch
Reuters - A former Credit Suisse Group AG broker used bait-and-switch tactics in fraudulently steering corporate clients into risky mortgage investments they did not want, federal prosecutors said on Friday. (Fri, 14 Aug 2009 19:47:39 GMT)

Visteon judge mulls retiree benefits
AP - A Delaware bankruptcy judge is weighing whether auto parts supplier Visteon Corp. can cut off retiree health care and life insurance benefits for thousands of current and former workers. (Fri, 14 Aug 2009 22:13:20 GMT)

Auto suppliers under bankruptcy protection
AP - Auto parts supplier Visteon Corp. has asked a Delaware bankruptcy judge for permission to cut health and life insurance benefits for thousands of current and former workers. (Fri, 14 Aug 2009 23:20:19 GMT)

STORY REMOVED: TransUnion-Mortgage Delinquencies
AP - The Associated Press has withdrawn its story about mortgage delinquencies in the fourth quarter of 2008. The story contained dated information. A corrected story will be sent shortly. (Mon, 17 Aug 2009 18:17:38 GMT)

Mortgage deliquency rate hits all time high in 2Q
AP - The delinquency rate on U.S. mortgage loans hit an all-time high in the second quarter, but the pace of growth for the rate slowed, a possible sign the mortgage crisis may be beginning to turn the corner. (Mon, 17 Aug 2009 18:39:01 GMT)

Fed survey: bank lending tight through mid-2010
AP - The Federal Reserve said Monday most banks expect their lending to remain tight through the second half of next year, with the exception of mortgage standards, which already are loosening a bit. (Mon, 17 Aug 2009 18:57:05 GMT)

Huntington Preferred Capital declares dividend
AP - Huntington Preferred Capital Inc., which buys and manages mortgage assets, said Monday its board declared a regular quarterly dividend of 49 cents per share of its Class C preferred stock. (Mon, 17 Aug 2009 19:13:31 GMT)

Summary Box: Fed extends lending program
AP - WHAT HAPPENED?: The Federal Reserve said it's extending a program that was due to end Dec. 31. The major part of the program, aimed at boosting consumer and business lending, will now run through March 31. Another part that supports new loans for commercial mortgage-backed securities will be extended through June. (Mon, 17 Aug 2009 22:21:55 GMT)

U.S. housing starts, permits fall in July
Reuters - New U.S. housing starts and permits unexpectedly fell in July, pulled down by steeper declines in multifamily units, a government report showed on Tuesday. (Tue, 18 Aug 2009 12:45:52 GMT)

Wall Street up as retail, technology boost
Reuters - Stocks rose on Tuesday, rebounding from a sharp fall in global equities in the previous session as better-than-expected results from big retailers offset a surprise drop in housing starts. (Tue, 18 Aug 2009 17:08:51 GMT)

Housing report keeps recovery hopes alive
Reuters - Ground breaking for new U.S. homes fell in July, but a fifth straight monthly rise in single-family home construction kept hopes alive the economy was poised to recover from recession. (Tue, 18 Aug 2009 17:10:14 GMT)

Shares of homebuilders advance on housing starts
AP - Shares of homebuilders advanced Tuesday after a report showed construction of new homes rose for the fifth straight month, while shareholders approved a takeover of Centex Corp. by rival homebuilder Pulte Homes Inc. (Tue, 18 Aug 2009 19:05:01 GMT)

Home construction up for 5th month in a row
AP - At least the market for new homes isn't getting worse anymore, and that's the first step to getting better. (Tue, 18 Aug 2009 22:20:57 GMT)

Asia stocks edge up but wary of China, oil jumps
Reuters - Asian stocks edged up on Wednesday but hovered near three-week lows hit the previous day, with investors cautious ahead of Chinese bank results and wary that profit taking will continue to stall a six-month rally. (Wed, 19 Aug 2009 03:23:39 GMT)

Freddie Mac names new chief operating officer
Reuters - U.S. mortgage giant Freddie Mac on Tuesday named Bruce Witherell as its new chief operating officer, effective September 14. (Wed, 19 Aug 2009 09:40:46 GMT)

U.S. mortgage applications rise as rates plunge: MBA
Reuters - U.S. mortgage applications rose last week, largely reflecting a jump in demand for home refinancing loans as interest rates slid to a five-week low, data from an industry group showed on Wednesday. (Wed, 19 Aug 2009 11:44:58 GMT)

Wells Fargo sued over home equity lines of credit
AP - The banking unit of Wells Fargo & Co. is facing a lawsuit claiming it illegally reduced the size of customers' home equity lines of credit. (Wed, 19 Aug 2009 16:58:36 GMT)

Can You Trash All of Your Old Papers?
The Motley Fool - Stashes of old, paid bills, expired life insurance policies, receipts for broken gadgets, and canceled checks for haircuts you got in college -- sound like your filing system? (Wed, 19 Aug 2009 20:08:38 GMT)

Former regulator Lockhart heads to WL Ross
Reuters - James Lockhart, who earlier this month said he would resign as the U.S. regulator overseeing mortgage finance companies Fannie Mae and Freddie Mac , will become vice chairman of a distressed investment group at Invesco Ltd , the company said on Wednesday. (Wed, 19 Aug 2009 22:02:25 GMT)

Synopsys posts better-than-expected 3Q results
AP - Synopsys Inc., which makes software to develop and test chips, said Wednesday its fiscal third-quarter profit declined 18 percent from a year-ago period helped by an income tax gain, but the results still beat Wall Street expectations. (Thu, 20 Aug 2009 00:26:40 GMT)

Supermarket Tesco grows banking service with new jobs
AFP - The country's biggest retailer Tesco said Thursday its personal finance unit would open a customer centre in Scotland, creating 800 jobs and bringing the group nearer to providing full banking services. (Thu, 20 Aug 2009 08:42:42 GMT)

Mortgage delinquencies hit record high in Q2
AP - More than 13 percent of American homeowners with a mortgage are either behind on their payments or in foreclosure as the recession throws more people out of work, the Mortgage Bankers Association said Thursday. (Thu, 20 Aug 2009 14:12:31 GMT)

NYC judge returns investor lawsuits to state court
AP - A judge has rejected mortgage lender Countrywide Financial's effort to have some investor lawsuits heard in federal court. (Thu, 20 Aug 2009 15:55:27 GMT)

Mortgage rates lowest since late May
AP - Average rates on 30-year mortgages slid to the lowest levels since May this week, Freddie Mac said. (Thu, 20 Aug 2009 16:50:49 GMT)

Intuit 1Q loss forecast wider than Street view
AP - Personal finance and business software maker Intuit Inc. on Thursday said it expects a wider fiscal first-quarter loss than Wall Street analysts forecast. (Thu, 20 Aug 2009 21:19:02 GMT)

Summary Box: Foreclosures hit new record
AP - WHAT HAPPENED?: A quarterly report released Thursday by the Mortgage Bankers Association found that more than 13 percent of American homeowners with a mortgage have fallen behind on their payments or are in foreclosure. (Thu, 20 Aug 2009 21:49:02 GMT)

Intuit posts wider 4Q loss as sales slow, costs up
AP - Personal finance and business software maker Intuit Inc. on Thursday posted a wider loss for its fiscal fourth quarter as revenue slipped while expenses rose. (Thu, 20 Aug 2009 22:30:01 GMT)

Large Texas bank shut down by federal regulators
AP - Guaranty Bank became the second-largest U.S. bank to fail this year after the Texas lender was shut down by regulators and most of its operations sold at a loss of billions of dollars for the U.S. government to a major Spanish bank. (Sat, 22 Aug 2009 09:19:14 GMT)

U.S. home lender Taylor Bean files for bankruptcy
Reuters - Taylor, Bean & Whitaker Mortgage Corp filed for Chapter 11 bankruptcy protection and said it may liquidate, three weeks after it closed its mortgage lending business and was suspended by a federal agency. (Mon, 24 Aug 2009 19:23:54 GMT)

Feds, 10 states join to fight mortgage fraud
AP - Ten state attorneys general and four federal agencies are forming a task force to combat mortgage fraud. (Mon, 24 Aug 2009 19:59:49 GMT)

Taylor, Bean & Whitaker files for Chapter 11
AP - Taylor, Bean & Whitaker Mortgage Corp. said Monday it filed for bankruptcy protection after moves this month by regulators led to a virtual shutdown of what had been one of the nation's biggest independent mortgage bankers. (Mon, 24 Aug 2009 21:17:43 GMT)

Apax Partners completes Bankrate tender offer
AP - Private equity firm Apax Partners said Tuesday that it completed a tender offer for the common shares of Bankrate Inc. as part of its plan to acquire the consumer finance Web site operator and take it private in a deal valued at about $570.8 million. (Tue, 25 Aug 2009 13:38:10 GMT)

Fannie, Freddie soar as day-traders seek profit
Reuters - Shares of U.S. government-controlled mortgage lenders Fannie Mae and Freddie Mac soared for a second straight day on Tuesday after attracting the attention of day-traders looking to turn a quick profit with these low-priced household names. (Tue, 25 Aug 2009 16:17:40 GMT)

Mortgage applications rise as refinancing demand jumps
Reuters - U.S. mortgage applications rose for a second straight week, with demand for home refinancing loans rising to its highest level since early June, data from an industry group showed on Wednesday. (Wed, 26 Aug 2009 11:02:41 GMT)

Fed's Lacker eyes mortgage securities program
AP - The Fed should continue its program designed to drive down mortgage rates at least until the economy begins to grow, the president of the Federal Reserve Bank of Richmond said Thursday. (Thu, 27 Aug 2009 14:58:36 GMT)

Mortgage rates up slightly, still near record lows
AP - Rates for 30-year home loans edged up this week, but remain close to record lows reached over the spring. (Thu, 27 Aug 2009 16:03:32 GMT)

Prudential Mortgage closes $100M loan
AP - Prudential Mortgage Capital Co. said Thursday it closed a $108 million loan allowing a client to buy several properties in six states owned by real estate investment trust Kimco Realty Corp. (Thu, 27 Aug 2009 20:12:07 GMT)

Moody's mulls downgrade for Sallie Mae
AP - Moody's Investors Service said it is considering downgrading long-term ratings for the nation's biggest student lender, Sallie Mae, citing earnings and cash-flow generation at the company. (Thu, 27 Aug 2009 20:14:29 GMT)

Investors trading 3 stocks that may be doomed
AP - Investors are still trading common shares of Fannie Mae, Freddie Mac and American International Group Inc. by the billions, even though analysts say their prices are almost certain to go to zero. (Thu, 27 Aug 2009 21:12:32 GMT)

Consumer sentiment at 4-month low
Reuters - U.S. consumer confidence fell to its lowest level in four months in August on worries over high unemployment and dismal personal finances, though the mood improved from earlier this month, a survey showed on Friday. (Fri, 28 Aug 2009 14:28:56 GMT)

Stocks fall as market rally loses steam
AP - Stocks fell Friday as investors hesitated to extend the market's recent rally despite an improved outlook from Intel Corp. (Fri, 28 Aug 2009 16:35:05 GMT)