Top Updates: week of January 18th, 2010

Obama lashes out at banks in radio address for selfishness
By Michael D. Shear
Sunday, January 17, 2010
In his weekly radio address Saturday, President Obama unleashed a verbal barrage against the nation's largest banks, accusing them of wanton selfishness by refusing to accept new regulations he and his party are proposing, and for fighting a new tax that Obama wants to impose.

U.S. foreclosure assistance increasing, but slowly
By Renae Merle
Washington Post Staff Writer
Saturday, January 16, 2010
The Obama administration's foreclosure prevention program reached about 850,000 homeowners through December, including more than 50,000 in the Washington region, according to Treasury Department data released Friday, but the effort continues to struggle to make a significant impact.

J.P. Morgan Chase posts big profit, paydays
By Tomoeh Murakami Tse
Washington Post Staff Writer
Saturday, January 16, 2010
>NEW YORK -- J.P. Morgan Chase announced Friday an $11.7 billion profit for 2009, along with paydays for its investment-banking employees that exceeded those of the flush times before the financial crisis, drawing a sharp response from lawmakers in Washington.

Sen. Dodd may drop push for consumer financial protection agency
By Brady Dennis and Binyamin Appelbaum
Washington Post Staff Writer
Saturday, January 16, 2010
>Senate banking committee Chairman Sen. Christopher J. Dodd (D-Conn.) has discussed jettisoning plans for a standalone Consumer Financial Protection Agency, as part of an effort to secure bipartisan support for legislation to reform financial regulation, said people familiar with the matter.

Top Updates: week of January 11th, 2010

Ordinary Americans lack the power to hurt the big banks
By Martha C. White
Sunday, January 10, 2010
Arianna Huffington is mad as hell and not going to take it anymore -- or doesn't think you should. The woman behind the Huffington Post recently exhorted Americans to yank their money out of big banks and open accounts at community banks instead. She called out the Big Four -- Bank of America, Citi, J.P. Morgan Chase and Wells Fargo -- by name for their "slap in the face to taxpayers." The crusade includes a link to a new Web site called Move Your Money, which includes clips from "It's a Wonderful Life" and a tool for finding a new bank courtesy of Institutional Risk Analytics.

Strong funds the hedge against a weak dollar
By Steven Goldberg
Sunday, January 10, 2010
U.S. consumer and government debt levels are at all-time highs, and our economic recovery is sluggish. Many developing nations, by contrast, are growing rapidly and running budget surpluses. Over the long term, the dollar seems bound to weaken and emerging-markets currencies seem destined to strengthen.

IRS should regulate all tax-return preparers
By Michelle Singletary
Sunday, January 10, 2010
Maybe it's just me, but when I see the word "all," I assume it means all-inclusive.
Recently, the Internal Revenue Service announced a major initiative to bring greater scrutiny to the tax-preparation industry. IRS Commissioner Doug Shulman wants paid tax preparers to be tested for competency and required to take continuing-education courses.

Federal Reserve earned $45 billion in 2009
By Neil Irwin
Washington Post Staff Writer
Tuesday, January 12, 2010
Wall Street firms aren't the only banks that had a banner year. The Federal Reserve made record profits in 2009, as its unconventional efforts to prop up the economy created a windfall for the government.

On top of credit score, retail credit lines now ask for income, asset data
By Ylan Q. Mui
Washington Post Staff Writer
Wednesday, January 13, 2010
Consumers will have to divulge more personal information to apply for store credit cards -- possibly putting the brakes on so-called instant credit -- under sweeping industry reforms finalized by the Federal Reserve on Tuesday.

Top public universities faulted on financial aid
By Jenna Johnson
Thursday, January 14, 2010
Many of the nation's top public universities are giving millions of dollars in financial aid to students from relatively wealthy families instead of to those who urgently need it, resulting in campuses that are often less diverse than those at elite private schools, a new report says.

Maryland tops states on education report card
By Valerie Strauss
Washington Post Staff Writer
Thursday, January 14, 2010; 12:15 AM
The nation earned a C on the 14th annual Education Week report card, which measures how well states have delivered a high-quality education to all students, with Maryland earning the best overall grade of any state and Virginia placing in the top five, with a B minus.

In Capitol Hill hearing, bankers remain torn on their role in crisis
By Brady Dennis
Washington Post Staff Writer
Thursday, January 14, 2010
A year after the financial system nearly went over the brink, the congressional commission investigating the roots of the crisis confronted four of the world's most powerful bankers on Wednesday and challenged them to take more responsibility for their role in upending the global economy.

Fed's 'beige book' shows modest improvement in economy
By Renae Merle
Washington Post Staff Writer
Thursday, January 14, 2010
The economy's modest recovery broadened during the last months of 2009 with the help of an uptick in home sales and improvements in the manufacturing sector, according to a Federal Reserve report issued Wednesday. The report also reinforces that the weak labor market continues to be a drag on the economic rebound.

Obama plan to tax large financial firms designed to pay for TARP losses
By Binyamin Appelbaum
Washington Post Staff Writer
Friday, January 15, 2010
President Obama proposed a new tax Thursday to collect an estimated $90 billion over the next decade from 50 companies that he called responsible for driving the nation into economic crisis.

Leaders of SEC and FDIC say agencies' failings contributed to financial crisis
By Brady Dennis
Washington Post Staff Writer
Friday, January 15, 2010
Two top federal regulators said Thursday that their agencies had fallen short in the run-up to the financial crisis, in part because thriving mortgage markets and soaring Wall Street profits created a false sense of security.

Top Updates: week of January 4th, 2010

Friday's employment report could be breakthrough for U.S. job market

By Neil Irwin
Washington Post Staff Writer
Thursday, January 7, 2010
As evidence mounts that the labor market is starting to improve, the most definitive sign of whether it's turned the corner could come Friday morning with the scheduled release of a closely watched employment report.

Conflicting housing, factory data show fragility of economic ecovery
By Renae Merle and Neil Irwin
Washington Post Staff Writer
Wednesday, January 6, 2010
>The rebound in manufacturing showed further signs of promise for the economy in the coming year, according to government data released Tuesday, even as housing, another key driver of the country's nascent recovery, offered new cause for worry.

D.C. region's unemployment rate dropped to 6.1 percent in November
By V. Dion Haynes
Washington Post Staff Writer
Wednesday, January 6, 2010
>The unemployment level in the Washington region dipped in November to 6.1 percent from 6.2 percent the previous month, according to government data released Tuesday, further evidence to some economists that the area has weathered the worst of the recession.

IRS to regulate paid tax preparation
By David S. Hilzenrath
Washington Post Staff Writer
Tuesday, January 5, 2010
>The Internal Revenue Service plans to test, register and screen people who get paid to prepare tax returns, stepping into a virtually unregulated business on which millions of Americans depend for crucial financial services.

Defense titan Northrop Grumman to leave Los Angeles for D.C. area
By Dana Hedgpeth and Thomas Heath
Washington Post Staff Writer
Tuesday, January 5, 2010
>Northrop Grumman said Monday that it plans to move its corporate headquarters from Los Angeles to the Washington area by 2011, solidifying the growing importance of Washington as a center for the defense industry and other businesses.

Top Washington business stories of 2009
By Dan Beyers
Washington Post Staff Writer
Monday, January 4, 2010
Last year is probably one best forgotten by many local businesses, given the nation's economic woes. But a scan of some of the top stories offers reason to hope for better times.
Fairfax Ascendant.
County scored a number of high-profile coups in 2009. Hilton Hotels and the government contracting giant SAIC formally relocated their headquarters to Tysons Corner, and a $200 million genetic research facility calling itself the Ignite Institute for Individualized Health announced it would locate along the Route 28 corridor near Dulles, after being enticed by millions of dollars in tax breaks...
Fannie, Freddie moves
The executive shuffle continued at mortgage finance giants Fannie Mae and Freddie Mac. Michael J. Williams, Fannie's chief operating officer, was named chief executive after Herbert M. Allison Jr. was tapped to run the Treasury Department's financial recovery program.
Dulles extension
The first phase of a $5.2 billion project to extend rail service to Dulles International Airport won federal approval last spring, heralding a new era of development in Tysons Corner.

Fed chief Bernanke urges better financial regulation to prevent crises
By Neil Irwin
Washington Post Staff Writer
Monday, January 4, 2010
Better regulation is the key to avoiding future financial excesses, Federal Reserve Chairman Ben S. Bernanke said Sunday, arguing that the Fed's low-interest-rate policies early in the decade were not a major cause of the housing bubble.

Cash-rich real estate investors trigger bidding wars, frustrate other buyers
By Dina ElBoghdady
Washington Post Staff Writer
Sunday, January 3, 2010
Investors have reemerged with brute force in the Washington region's real estate market over the past few months, triggering bidding wars in some neighborhoods teeming with foreclosed properties and hindering traditional home buyers such as Melissa Diggins.


Aughts were a lost decade for U.S. economy, workers
By Neil Irwin
Washington Post Staff Writer
Saturday, January 2, 2010
For most of the past 70 years, the U.S. economy has grown at a steady clip, generating perpetually higher incomes and wealth for American households. But since 2000, the story is starkly different.

FDIC considers proposal to get piece of failed-bank buyers' stock gains
By Binyamin Appelbaum
Washington Post Staff Writer
Saturday, January 2, 2010
The share prices of some companies that bought failed banks from the Federal Deposit Insurance Corp. in recent months have climbed rapidly, suggesting that investors think the buyers are getting good deals.

Despite ghastly start, stocks finish 2009 with strong gains
By Tomoeh Murakami Tse
Washington Post Staff Writer
Friday, January 1, 2010
NEW YORK -- U.S. stocks ended a mercurial year with a nearly 24 percent gain, rebounding from the biggest loss since the Great Depression with a rally many investors had not seen in their lifetime.

In sign of rebound, D.C. population set to surpass 600,000
By Carol Morello and Tim Craig
Washington Post Staff Writer
Thursday, December 31, 2009
The District is on the verge of a watershed in its turnaround, with the city's population set to break 600,000 for the first time in almost two decades. Recently released Census Bureau statistics show that the city is just a few hundred residents shy of the mark, with an estimated population of 599,657 as of July 1. That reflects a gain of almost 9,600 over the previous year.

U.S. takes majority stake in GMAC, giving lender $3.8 billion more in aid
By Binyamin Appelbaum
Washington Post Staff Writer
Thursday, December 31, 2009
The federal government said Wednesday that it will take majority control of troubled auto lender GMAC and provide an additional $3.8 billion in aid to the company, which has been unable to raise from private investors the money it needs to staunch its losses.
The Treasury Department has said for months that GMAC would need more federal money, but the decision to increase the government's ownership stake came as a surprise, cutting against the grain of the Obama administration's recent efforts to wind down its bailout of large banks.

Support grows for tackling nation's debt
By Elaine S. Povich and Eric Pianin
The Fiscal Times Thursday, December 31, 2009
Senate action late last week that increased the limit on the government's credit card to a record $12.4 trillion gave a significant boost to a proposal to appoint a special commission to make the tough decisions that will be required to dig the nation out of debt.
President Obama has voiced support for such a plan, and 35 Democratic and Republican senators have signed on to legislation that would create a bipartisan commission with broad power to force painful spending cuts and tax increases through Congress.

Fannie Mae, Freddie Mac on track to buy delinquent mortgages -- Fed proposes term deposits to drain reserves

Fannie Mae, Freddie Mac on track to buy delinquent mortgages, analysts say
By Bloomberg News
Tuesday, December 29, 2009
The U.S. government's expanded capital backstops and portfolio limits for Fannie Mae and Freddie Mac increase "the prospect of large-scale" purchases by the companies of delinquent mortgages out of the securities they guarantee, according to Credit Suisse Group analysts.
The Treasury Department announced Thursday that the two mortgage-finance companies, which were seized by the United States almost 16 months ago, could tap an unlimited amount of capital for three years, up from as much as $200 billion each. It reworked caps on Fannie Mae and Freddie Mac's mortgage-asset portfolios to require the holdings to fall to $810 billion each by Dec. 31, 2010, rather than about $690 billion.

Fed proposes term deposits to drain reserves
By Associated Press
Tuesday, December 29, 2009
The Federal Reserve on Monday proposed allowing banks to set up the equivalent of certificates of deposit at the central bank, a move that would help the Fed mop up money pumped into the economy and prevent inflation from taking off later.
Under the proposal, the Fed would offer "term deposits" that would pay interest. Doing so would provide banks with another incentive to park their money at the Fed, rather than having it flow back into the economy.

Short Sale Tips for Buyers and Sellers

Author: Roby Pagong

A short sale takes place when the value of the property declines to be lesser than the remaining value of the mortgage. The homeowner decides to sell his property because he can no longer keep up with the monthly payments. In this case, the approval of the lender has to be approved. This is necessary because he has to agree to receive a discounted payment of the mortgage loan. This makes it difficult because the lender often rejects the proposal of the seller.

This is why you have to know how to present a good short sale package. It should convince the lender to approve the proposal. First, you have to understand that the lender wants to minimize the loss, so make sure that you have a decent offer for the property. Make sure you have all the requirements as well.

How to qualify

There are various requirements needed to qualify for a short sale. First, there should be a decline in the property value. This can happen if there is decline in property prices in your area. This may also occur if you neglect your property. Aside from the price, the lender will also check your mortgage. It should be near default or in default. This can be a result of a hard time that you or your family is facing.

Another important requirement is the hardship letter. This should explain the hard time you are experiencing which caused you to miss your payments. Not all hardships are acceptable for the lender. You cannot qualify for a short sale if you are unhappy with the current home you are in or that you want to relocate. Some of the acceptable incidences are unemployment, death in the family, divorce and health expenses.

The lender will also require your financial statement. The lender will check if you have other assets. They do this because as much as possible, they want to avoid the short sale. They do not want to resort to this because of the significant loss they will be incurring. Additionally, there are sellers who are doing this to avoid their responsibilities. Some just want to get an approval so that they can move to a more beautiful home.

If you want to apply for a short sale, remember to be patient as this can take longer. You might even need to reapply for it.

For the buyers

If you are a buyer, purchasing a short sale is a good deal. It is not only cheap but it also shows a lot of promise. However, you need to conduct a research before you make a purchase. It is also essential that you know how much the remaining balance of the mortgage is. This will give you an idea of how much to offer the seller. Finally, if you are going to hire an agent, see to it that he is experienced with short sales to be able to represent you properly.

A short sale property is a good investment. However, you have to be careful when making the purchase. If the lender rejects the first proposal, you need to be ready to increase your offer.

Article Source: ArticlesBase.com - >Short Sale Tips for Buyers and Sellers

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Top Updates: Week of December 28th, 2009

Tweaking a successful financial formula
By Michelle Singletary
Sunday, December 27, 2009
Despite a still funky economy, many people are doing well.
Yes, the unemployment rate is too high. People continue to lose their homes. And credit card debt is smothering many consumers. But as the year comes to a close, I wanted to address questions from readers who are fine financially yet need some tweaks to the way they handle their money.

Weak economy motivates Americans to save more
By V. Dion Haynes
Washington Post Staff Writer
Sunday, December 27, 2009
As crazy as it sounds, losing a $70,000-a-year job has been good for Marty Morua's finances. The former Wall Street stockbroker says the setback forced him to scrutinize his family budget and snip away at expenses. And soon, even with less income, their savings grew.

Senate banking committee leaders close to a deal on financial regulatory reform
By Binyamin Appelbaum
Washington Post Staff Writer
Friday, December 25, 2009
The chances that the Senate would produce bipartisan financial reform legislation seemed to grow longer with each passing minute at the mid-November hearing at which Sen. Richard C. Shelby (R-Ala.) read 2,600 words of scornful disapproval for the draft bill circulated by Sen. Christopher J. Dodd (D-Conn.).

U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac
By Zachary A. Goldfarb
Washington Post Staff Writer
Friday, December 25, 2009
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.

Top Updates: Week of December 21st, 2009

Anatomy of a Crisis. How did we get here?
The Washington Post's Frank Ahrens looks back and breaks down the forces that led to the financial market meltdown.

Fed's approach to regulation left banks exposed to crisis
By Binyamin Appelbaum and David Cho
Washington Post Staff Writer
Monday, December 21, 2009
Foreclosures already pocked Chicago's poorer neighborhoods but the downtown still was booming as the Federal Reserve Bank of Chicago convened its annual conference in May 2007.
The keynote speaker, Federal Reserve Chairman Ben S. Bernanke, assured the bankers and businessmen gathered at the Westin Hotel on Michigan Avenue that their prosperity was not threatened by the plight of borrowers struggling to repay high-cost subprime loans.