Personal Finance News Sep 2009

Judge rejects Schering-Plough tax refund request
AP - A federal court in Newark, N.J. has rejected Schering-Plough Corp.'s request for a $473 million tax refund related to the drugmaker's efforts to avoid paying taxes on $690 million in overseas profits it brought back to the U.S. from offshore subsidiaries. (Tue, 01 Sep 2009 00:22:11 GMT)

U.S. mortgage applications slip, loan rates dip
Reuters - U.S. mortgage applications slid last week even as mortgage rates edged lower, with requests for loans to buy homes declining for the first time since early July, an industry group said on Wednesday. (Wed, 02 Sep 2009 11:13:20 GMT)

Mortgage bankers group urges Fannie, Freddie changes
Reuters - The U.S. Mortgage Bankers Association said on Wednesday it will ask Congress to transform mortgage lenders Fannie Mae, Freddie Mac into several smaller, privately held companies that would issue mortgage securities with a government guarantee. (Wed, 02 Sep 2009 12:13:58 GMT)

Industry group proposes replacing Fannie, Freddie
AP - A mortgage industry group wants Fannie Mae and Freddie Mac replaced with private companies that would be able to issue mortgage bonds formally backed by the federal government. (Wed, 02 Sep 2009 14:34:19 GMT)

Schering-Plough loses $473 million tax dispute
AP - Drugmaker Schering-Plough Corp. has been denied a $473 million tax refund by a federal judge who ruled the company made two transactions just to avoid paying taxes on $690 million in profits from overseas subsidiaries. (Wed, 02 Sep 2009 16:05:34 GMT)

Capmark in Berkshire asset deal, may go bankrupt
Reuters - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N) and Leucadia National Corp agreed to buy Capmark Financial Group Inc's mortgage loan and servicing business for as much as $490 million, increasing exposure to a possible U.S. housing recovery. (Wed, 02 Sep 2009 22:26:07 GMT)

Mortgage rates edge down, still above record lows
AP - Rates for 30-year home loans edged down this week, remaining close to record lows reached over the spring. (Thu, 03 Sep 2009 16:24:17 GMT)

Outsider Ron Paul finds support for Fed audit
Reuters - After decades of pushing long-shot causes like abolishing the income tax and reinstating the gold standard, Republican Representative Ron Paul finds himself in an unaccustomed spot: on the cusp of legislative victory. (Fri, 04 Sep 2009 14:10:19 GMT)

Fannie Mae meets price listing standard
AP - Fannie Mae, the government-backed mortgage company, said Friday it regained compliance with the New York Stock Exchange's minimum price standard for listing common stock. (Fri, 04 Sep 2009 16:06:32 GMT)

401k contribution limits face potential fall
AP - You've probably heard it over and over again: contribute up to the maximum amount in your 401(k) plan to improve your chances of a comfortable retirement. (Fri, 04 Sep 2009 16:09:37 GMT)

401k plan contributions limits may fall
AP - It's quite likely that the maximum contribution level for retirement accounts will fall next month unless the Internal Revenue Service or Congress chooses to freeze it at the current $16,500. (Fri, 04 Sep 2009 16:14:38 GMT)

FHA says won't need congressional support
Reuters - The U.S. Federal Housing Administration said on Friday it would not need a congressional subsidy even if mortgage-related losses push its reserves below a level demanded by Congress. (Fri, 04 Sep 2009 18:16:24 GMT)

Mortgage giants struggle a year after takeover
AP - A year after the near-collapse of Fannie Mae and Freddie Mac, the mortgage giants remain dependent on the government for survival and there is no end in sight. (Fri, 04 Sep 2009 21:34:11 GMT)

MELTDOWN FLASHBACK: Sunday, Sept. 7, 2008
AP - The U.S. government takes over mortgage giants Fannie Mae and Freddie Mac, ousts their chief executives and commits $100 billion to each in an extraordinary intervention aimed at reversing the housing slump that started in summer of 2006. (Sun, 06 Sep 2009 17:36:58 GMT)

AIG interviewing banks on Alico IPO: sources
Reuters - American International Group Inc is interviewing banks this week to manage a planned initial public offering of life insurance unit American Life Insurance Co, sources familiar with the matter said. (Tue, 08 Sep 2009 18:47:27 GMT)

July consumer credit falls a record $21.6 billion
Reuters - Total U.S. consumer credit fell by a record $21.6 billion in July, Federal Reserve data showed on Tuesday, the latest hint household spending would be too weak to drive the economy's recovery from recession. (Tue, 08 Sep 2009 20:18:11 GMT)

US consumer credit in record plunge
AFP - US consumer credit posted a record plunge in July, the sixth monthly decline, as Americans bridled spending amid rising unemployment and an ailing economy, Federal Reserve bank data showed Tuesday. (Tue, 08 Sep 2009 21:35:59 GMT)

Fed: consumers cut debt by record $21.6B in July
AP - Consumers slashed their borrowing in July by the largest amount on record as job losses and uncertainty about the economic recovery prompted Americans to rein in their debt. (Tue, 08 Sep 2009 22:28:30 GMT)

Home loan demand at 3-month high
Reuters - U.S. mortgage applications surged last week to their highest since late May as consumers sought to take advantage of the lowest interest rates in months, data from an industry group showed on Wednesday. (Wed, 09 Sep 2009 13:26:50 GMT)

Obama's mortgage relief program gaining traction
AP - The Obama administration's mortgage relief program is finally gaining traction. Nearly one in five eligible homeowners have been offered help so far, a government report says. (Wed, 09 Sep 2009 14:40:09 GMT)

Rep Frank to pursue mortgage bankruptcy bill
Reuters - The chairman of the House of Representatives Financial Services Committee said on Wednesday he expects to keep pursuing legislation to reduce mortgage loan amounts through bankruptcy proceedings, and lackluster efforts to modify mortgages increase the chances of that legislation passing. (Wed, 09 Sep 2009 15:21:31 GMT)

Wells Fargo mortgage modifications jump 64 percent
AP - Wells Fargo & Co. on Wednesday said it completed 33,172 trial and final modifications under the Home Affordable Modification Program through the end of August. (Wed, 09 Sep 2009 15:53:01 GMT)

Mortgage delinquency rates for commercial properties jump
AFP - Mortgage delinquency on US commercial real estate jumped in the second quarter of the year as problems deepened in the nonresidential sector, a survey showed Wednesday. (Wed, 09 Sep 2009 18:37:11 GMT)

U.S. foreclosures near record, peak in late '10: report
Reuters - U.S. mortgage foreclosure filings in August hovered near July's record high despite broad efforts to keep borrowers in their homes and will probably rise for another year, according to a report released on Thursday. (Thu, 10 Sep 2009 04:27:27 GMT)

British home prices rise again in August: survey
AFP - Home prices in Britain rose by 0.8 percent in August from the July level, highlighting a soft economic recovery taking hold in the country, a survey from home-loans provider Halifax showed on Thursday. (Thu, 10 Sep 2009 09:03:56 GMT)

Fed's Lockhart: possible Fed could curtail buys
Reuters - Atlanta Federal Reserve Bank President Dennis Lockhart said on Thursday the U.S. economic recovery has started and the Fed could stop short of buying the full amount of mortgage-related securities it said it would buy to boost the economy. (Thu, 10 Sep 2009 19:27:57 GMT)

Widow, 80, comes up cold in life insurance dispute
AP - The Meli family once ran a Flint warehouse that kept perishable goods from spoiling. Now it seems their money — nearly $200,000 — is stuck in storage. (Thu, 10 Sep 2009 21:58:32 GMT)

Boost seen for Dems' student loan plan, House vote near
Reuters - Democratic lawmakers seeking a thorough overhaul of the $92 billion U.S. student loan market were expected to score a win in the days ahead from a favorable finding by the Congressional Budget Office. (Fri, 11 Sep 2009 01:41:47 GMT)

Kiss Those Student Loans Goodbye
BusinessWeek - Shawn Agyeman was down on his luck last fall, having just lost his job as a research assistant at the University of Pittsburgh, his alma mater. With looming monthly student loan payments of around $200 a month hanging over his head, the recent college graduate was starting to worry about how he'd meet his debt obligations, fearful that creditors would harass his parents -- who co-signed his loans -- if he couldn't come up with the money. Then he got a phone call from the director of a new grass-roots nonprofit that he says changed his life. ... (Fri, 11 Sep 2009 12:08:42 GMT)

Ford announces plan to preserve tax assets
AP - Ford Motor Co. said Friday its board of directors has adopted a plan designed to deter shareholders who hold more than a 5 percent stake from increasing their ownership, in order to protect its tax assets. (Fri, 11 Sep 2009 17:02:39 GMT)

FDIC urges mortgage help for unemployed
AP - The Federal Deposit Insurance Corp. is encouraging companies that buy failed banks with troubled home loans to extend temporary help to people who have lost their jobs and can't pay their mortgage bills. (Fri, 11 Sep 2009 20:27:51 GMT)

Obama student loan plan may save more money
Reuters - The Congressional Budget Office said on Friday that a student loan reform plan backed by Sallie Mae and other lenders might save U.S. taxpayers $17 billion less than one backed by the Obama administration. (Sat, 12 Sep 2009 02:12:51 GMT)

UK mortgage lending rises in July
AP - U.K. mortgage lending rose significantly in July for the second straight month but the market is likely to remain subdued for some time, the Council of Mortgage Lenders said Monday. (Mon, 14 Sep 2009 09:00:13 GMT)

Are Britain's Scrooges Slowing Recovery?
BusinessWeek - Paul Coletti is always on the lookout for a deal. In February the 39-year-old BBC producer took advantage of historically low interest rates to refinance the mortgage on his two-bedroom flat. The accelerated monthly payments are 30% higher than they were before, leaving him less spending money to buy the indie rock albums he collects. But Coletti doesn't mind. "Now is the time to be paying off capital," he says. (Mon, 14 Sep 2009 12:08:43 GMT)

Intuit buying Mint.com for 170 mln dlrs
AFP - Financial software company Intuit Inc. announced on Monday that it has agreed to purchase personal finance website Mint.com for 170 million dollars in cash. (Mon, 14 Sep 2009 16:34:56 GMT)

In Buying Mint, Intuit Looks to Revitalize
BusinessWeek - Last year, Intuit's legal department sent a threatening letter to Mint.com demanding that the upstart rival in personal finance software explain its breakneck pace of growth. The correspondence was leaked and Intuit was upbraided in the blogosphere for what looked like bullying behavior. Even Intuit CEO Brad Smith later professed dismay. "It looked like Goliath picking on David," Smith said in an April interview with BusinessWeek. At the same sitting, Smith praised Mint's "brilliant" approach to helping consumers manage their money on the Web. (Tue, 15 Sep 2009 12:08:41 GMT)

IRS issues rules to ease mortgage refinancing
AP - The IRS issued new rules Tuesday designed to make it easier to refinance some commercial real estate loans in an effort to curb the number of defaults. (Wed, 16 Sep 2009 00:38:23 GMT)

In Buying Mint, Intuit Looks to Revitalize
BusinessWeek - Last year, Intuit's legal department sent a threatening letter to Mint.com demanding that the upstart rival in personal finance software explain its breakneck pace of growth. The correspondence was leaked and Intuit was upbraided in the blogosphere for what looked like bullying behavior. Even Intuit CEO Brad Smith later professed dismay. "It looked like Goliath picking on David," Smith said in an April interview with BusinessWeek. At the same sitting, Smith praised Mint's "brilliant" approach to helping consumers manage their money on the Web. (Wed, 16 Sep 2009 12:08:41 GMT)

U.S. mortgage demand drops, supply caps improvement
Reuters - Demand for U.S. home loans fell by more than 8 percent as fixed mortgage rates rose last week in a banking period shortened by the Labor Day holiday, the Mortgage Bankers Association said on Wednesday. (Wed, 16 Sep 2009 14:51:53 GMT)

FDIC names first winner in toxic asset program
AP - The Federal Deposit Insurance Corp. on Wednesday named the first winning bidder under a test of the government's program to back private purchases of toxic mortgage assets and get them off banks' balance sheets. (Wed, 16 Sep 2009 18:34:20 GMT)

White House economic team evaluating home tax credit
Reuters - White House economic advisers are looking at the $8,000 tax credit for first-time home buyers and will make a recommendation to President Barack Obama as he decides whether to extend it, White House spokesman Robert Gibbs said on Wednesday. (Wed, 16 Sep 2009 18:54:50 GMT)

In Buying Mint, Intuit Looks to Revitalize
BusinessWeek - Last year, Intuit's legal department sent a threatening letter to Mint.com demanding that the upstart rival in personal finance software explain its breakneck pace of growth. The correspondence was leaked and Intuit was upbraided in the blogosphere for what looked like bullying behavior. Even Intuit CEO Brad Smith later professed dismay. "It looked like Goliath picking on David," Smith said in an April interview with BusinessWeek. At the same sitting, Smith praised Mint's "brilliant" approach to helping consumers manage their money on the Web. (Thu, 17 Sep 2009 12:08:42 GMT)

U.S. housing starts, permits rise in August
Reuters - New U.S. housing starts and permits rose in August to their highest level since November, lifted by a rebound in multifamily homes, a government report showed on Thursday. (Thu, 17 Sep 2009 12:38:52 GMT)

Authorities crack down on 2 mortgage aid firms
AP - Federal authorities are cracking down on two companies that promised homeowners help with their mortgages, accusing them of posing them as government agencies. (Thu, 17 Sep 2009 14:16:15 GMT)

U.S. housing starts, permits touch 9 month high
Reuters - Groundbreaking for U.S. homes and permits for future building scaled a nine-month high in August, and the number of people filing new claims for jobless benefits fell last week, boosting chances of a robust economic recovery. (Thu, 17 Sep 2009 14:54:37 GMT)

House bill would kill subsidized student loans
AP - The House is poised to vote to push private lenders out of the federal college loan business and massively expand the government's own lending program. (Thu, 17 Sep 2009 15:25:55 GMT)

Stocks zigzag after rally as jobless claims dip
AP - Stocks seesawed in a narrow range Thursday after the government said weekly unemployment claims dipped unexpectedly and that housing starts rose again last month. (Thu, 17 Sep 2009 16:04:50 GMT)

U.S. stocks fall, led lower by financials
Reuters - U.S. stocks hit session lows in choppy trading on Thursday, weighed down by materials and financial shares as investors paused following a three-day runup. (Thu, 17 Sep 2009 17:24:44 GMT)

Fed bought $25.45 billion net in agency MBS: report
Reuters - The Federal Reserve bought $25.45 billion net of agency mortgage-backed securities in the latest week, the New York Fed said on its website on Thursday. (Thu, 17 Sep 2009 19:11:37 GMT)

U.S. Fed balance sheet grows to biggest since May
Reuters - The U.S. Federal Reserve's balance sheet grew to its largest since May on a hefty increase in its holding of mortgage-backed securities, Fed data showed on Thursday. (Thu, 17 Sep 2009 20:51:38 GMT)

Student loan market overhaul approved by U.S. House
Reuters - The biggest change in U.S. higher education finance in 35 years was approved on Thursday by the House of Representatives, handing a defeat to major banks and student loan giant Sallie Mae. (Thu, 17 Sep 2009 21:08:47 GMT)

SEC proposes new rules for credit rating agencies
AP - Regulators on Thursday proposed rules designed to stem conflicts of interest and provide more transparency for credit rating companies. They also proposed banning "flash orders," which give some traders a split-second edge in buying or selling stocks. (Thu, 17 Sep 2009 22:16:24 GMT)

In Buying Mint, Intuit Looks to Revitalize
BusinessWeek - Last year, Intuit's legal department sent a threatening letter to Mint.com demanding that the upstart rival in personal finance software explain its breakneck pace of growth. The correspondence was leaked and Intuit was upbraided in the blogosphere for what looked like bullying behavior. Even Intuit CEO Brad Smith later professed dismay. "It looked like Goliath picking on David," Smith said in an April interview with BusinessWeek. At the same sitting, Smith praised Mint's "brilliant" approach to helping consumers manage their money on the Web. (Fri, 18 Sep 2009 12:08:42 GMT)

European stocks little changed ahead of US open
AP - European markets traded in a narrow range Friday ahead of expected small gains on the open on Wall Street as a lack of new economic data left investors hesitant to put more money into a rally which this week propelled many indexes to new highs for the year. (Fri, 18 Sep 2009 12:11:39 GMT)

Sweden slashes income tax further to boost jobs
AFP - Sweden's centre-right government on Saturday announced income tax cuts of 10 billion kronor to stimulate the job market, its primary objective. (Sat, 19 Sep 2009 11:57:48 GMT)

Low expectations for new loan help program
AP - Dial back the pie-in-the-sky projections. (Sat, 19 Sep 2009 15:35:21 GMT)

Fed policymakers likely to maintain aid programs
AP - With the economy starting to rebound but still fragile, Federal Reserve policymakers this week are expected to keep emergency programs to encourage spending and borrowing intact. But to avoid unleashing inflation later on, they are likely to consider ways to rein in programs designed to keep mortgage rates down and get banks to lend more freely. (Sun, 20 Sep 2009 16:58:08 GMT)

Meltdown jolts consumers from financial fairyland
AP - The stock market bounced back, just as it has for nearly three decades. It just doesn't feel that way. (Sun, 20 Sep 2009 17:08:22 GMT)

Meltdown jolts consumers from financial fairyland
AP - The stock market bounced back, just as it has for nearly three decades. It just doesn't feel that way. (Mon, 21 Sep 2009 16:28:40 GMT)

Obama lashes out at banks over student loans
Reuters - President Barack Obama on Monday criticized the largest U.S. banks for their efforts to thwart legislation that would overhaul federal student loan programs. (Mon, 21 Sep 2009 16:34:02 GMT)

U.S. mortgage delinquencies set record
Reuters - High U.S. unemployment keeps pushing up the rate of mortgage delinquencies, which could in turn drive personal bankruptcies and home foreclosures, monthly data from the Equifax Inc credit bureau showed on Monday. (Tue, 22 Sep 2009 00:32:45 GMT)

Congress wary of 'plain vanilla' bank proposal
AP - Congress is expected to reject President Barack Obama's proposed mandate that banks offer customers "plain vanilla" financial products, such as a 30-year fixed mortgage. (Tue, 22 Sep 2009 15:43:06 GMT)

Freddie Mac names Ross Kari as new CFO
AP - Freddie Mac said Tuesday it has named a new chief financial officer, filling a post that has been occupied on an interim basis for a year. (Tue, 22 Sep 2009 21:04:53 GMT)

U.S. home loan demand hits highest since late May
Reuters - U.S. mortgage applications jumped last week to their highest since late May as interest rates tumbled below 5 percent, data from an industry group showed on Wednesday. (Wed, 23 Sep 2009 13:46:21 GMT)

Small business angst rises as tax deadline nears
AP - These are anxious times for some small business owners who face an Oct. 15 due date for their 2008 income tax returns. These owners got extensions of the deadline for filing their returns back in April but aren't ready to file. Or, they can't pay the government the money they owe. (Wed, 23 Sep 2009 18:02:05 GMT)

AP - Fed slows $1.45 trillion mortgage program; says economic activity 'picked up' (Wed, 23 Sep 2009 18:17:24 GMT)

Fed says U.S. recovery is underway
Reuters - The Federal Reserve on Wednesday upgraded its assessment of the U.S. economy, saying growth had returned after a deep recession, while reiterating its promise to hold interest rates very low for a long time. (Wed, 23 Sep 2009 20:46:41 GMT)

Fed slows housing market plan; rates to stay low
AP - Signaling confidence in a recovery, the Federal Reserve decided Wednesday to stretch out the pace of a program intended to lower mortgage rates and prop up the housing market. (Wed, 23 Sep 2009 22:58:45 GMT)

H&R Block touts focus on gaining, keeping clients
AP - Tax preparation giant H&R Block Inc. hopes to attract new clients in the coming year with better service at its offices and advertising that reminds the public of its traditional strengths, Chief Executive Officer Russ Smyth said Thursday. (Thu, 24 Sep 2009 19:26:48 GMT)

Small details sometimes hinder help on mortgages
AP - It all comes down to details: The success of the federal government's attempts to keep homeowners from defaulting on their mortgages appears to hinge on small things such as a servicer not losing a customer's documentation. (Thu, 24 Sep 2009 21:16:34 GMT)

ANZ buys ING's stake in joint ventures for $1.5B
AP - ANZ Bank said Friday it will buy Dutch-based ING Groep NV's stake in their Australian and New Zealand life insurance and wealth management joint ventures for 1.76 billion Australian dollars ($1.53 billion). (Fri, 25 Sep 2009 08:38:17 GMT)

Spanish govt seeks tax rises in austerity budget
AFP - Spain's socialist government on Saturday approved a draft austerity budget providing for tax rises worth nearly 11 billion euros (16.1 billion dollars), including increases in value-added tax and income tax. (Sat, 26 Sep 2009 14:57:06 GMT)

Die, Student Loan, Die!
The Motley Fool - Make fun of the so-called "professional students" all you want. You know, the ones who, unlike the TAs, remember the original Dukes of Hazzard TV show. But would you be in a huge hurry to check out of the ivory tower and into debtors' prison? (Mon, 28 Sep 2009 16:54:16 GMT)

John Paulson mulls CIT and IndyMac merger: report
Reuters - Hedge fund manager John Paulson is considering merging troubled U.S. finance company CIT Group with failed mortgage lender IndyMac Federal Bank , the New York Post said, citing people familiar with the matter. (Tue, 29 Sep 2009 09:59:02 GMT)

Consumer confidence unexpectedly falls in Sept
Reuters - U.S. consumer confidence fell unexpectedly in September as the worst job prospects in 26 years fueled worries over personal finances, according to a report released on Tuesday. (Tue, 29 Sep 2009 14:02:51 GMT)

U.S. consumer woes overshadow housing cheer
Reuters - U.S. house prices rose for a third month in July, but consumer confidence fell unexpectedly in September as the worst job market in 26 years fueled worries about personal finances, private reports showed on Tuesday. (Tue, 29 Sep 2009 16:05:06 GMT)

CIT's future in question ahead of lender meeting
AP - CIT Group Inc.'s shares soared Tuesday on a report that hedge fund manager John Paulson is considering merging the troubled finance company with failed mortgage lender IndyMac Federal Bank. But they plunged after-hours as a separate report said CIT is preparing a debt swap offer that could wipe out taxpayers' investment or could file for bankruptcy protection. (Wed, 30 Sep 2009 01:39:49 GMT)

Mortgage demand falls despite lower rates
Reuters - U.S. mortgage applications fell last week despite the lowest loan rates in four months, the Mortgage Bankers Association said on Wednesday, in another sign that housing will likely recover slowly from its three-year plunge. (Wed, 30 Sep 2009 13:05:12 GMT)

U.S. Q2 home foreclosures, mortgage delinquencies up
Reuters - The number of home foreclosures in process and delinquent mortgages rose during the second quarter, while home retention actions also increased, U.S. bank regulators said on Wednesday. (Wed, 30 Sep 2009 15:04:39 GMT)

Homeowners in financial trouble often redefault
AP - Lenders are ramping up efforts to avoid home foreclosures, but a report by bank regulators says more than half of borrowers who get help fall behind again. (Wed, 30 Sep 2009 16:54:01 GMT)

Report: 1 in 3 loan applications denied
AP - Nearly one in three borrowers who applied for a mortgage last year was denied as lenders kept their standards tight as the mortgage crisis accelerated, the government reported Wednesday. (Wed, 30 Sep 2009 20:52:44 GMT)