Home Equity

WASHINGTON -- Late payments on certain auto and home equity loans climbed in the final quarter of last year, while delinquencies on credit card bills largely held steady, suggesting some consumers are feeling more squeezed than others. The American Bankers Association, in its quarterly survey of consumer loans, reported yesterday that late payments on home equity loans rose to 1.92 percent in the October-December period. That was up sharply from 1.79 percent in the prior quarter and the highest since the first quarter of 2006.

Bank of America Corp., whose home-equity mortgage portfolio exceeds its stock market value, probably will say about $2 billion of junior loans are bad assets even as some borrowers are still paying on time. That is what Barclays Capital estimates the bank will report in its first-quarter results, following decisions by JPMorgan Chase & Co., Wells Fargo & Co., and Citigroup Inc. to reclassify $4.1 billion of junior liens as nonperforming. Regulators are pressing for the change because of concern that falling home prices havewiped out collateral on many second mortgages,...

ST. CLOUD, Fla. - Gone are the "For Sale" signs that sprouted like weeds in yard after yard along the streets of Magnolia Green, one of the scores of subdivisions that rose in recent years in Florida's once-booming Osceola County. Realtors no longer put them out, for fear of giving the impression of a blighted neighborhood. In homes that remain occupied, owners such as Jose Cruz lament lost jobs, lost hope, and lost confidence that Republicans are willing to offer a solution. Instead, the candidates seeking votes in Tuesday's presidential primary have mostly resorted to bickering...

About 57 percent of older people who live alone have less than $10,000 when they die, according to a recent study posted on the blog of the Financial Security Project at Boston College. Much of the focus on retirement has been on how much Americans have accumulated as they enter retirement. But a team that included economists James Poterba at the Massachusetts Institute of Technology, Steven Venti at Dartmouth College, and David Wise at Harvard University looked at where retirees wind up financially.

The Federal Reserve, Obama administration, and Congress should pursue policies to stimulate the weak economy, targeting them at two struggling areas that have historically helped lead US recoveries, housing and small business hiring, Eric S. Rosengren, president of the Federal Reserve Bank of Boston, said today. In past recessions, a difficult job market has been the impetus some people used to start a new small business, Rosengren said during a speech before business leaders in Hartford.

WASHINGTON - Late payments on consumer loans climbed last summer to their highest point since the last recession, in 2001. The American Bankers Association reported yesterday that the delinquency rate on a composite of consumer loans increased to 2.44 percent in the July-September quarter, up from 2.27 percent in the previous quarter. Payments are considered delinquent if they are 30 or more days past due. The survey is based on information supplied by more than 300 banks.

Falling home values has kept some troubled homeowners from moving to another state for work -- but not enough to make a major impact on the national jobless rate. That's the conclusion of a new report by the Federal Reserve Bank of Boston, which looked at the impact of the housing market on jobs. The report, produced by the bank's New England Public Policy Center and accompanied by a video, examined homeowners whose properties were "underwater," or when their mortgage was larger than the value of the home.

About 57 percent of older people who live alone have less than $10,000 when they die, according to a recent study posted on the blog of the Financial Security Project at Boston College. Much of the focus on retirement has been on how much Americans have accumulated as they enter retirement. But a team that included economists James Poterba at the Massachusetts Institute of Technology, Steven Venti at Dartmouth College, and David Wise at Harvard University looked at where retirees wind up financially.

MIAMI - An AARP study challenges the perception that older Americans have been left out of the current real estate crisis because they have built enough home equity to avoid delinquencies and foreclosure. Research by AARP's Public Policy Institute showed yesterday that 684,000 homeowners age 50 and older were either in foreclosure or delinquent on mortgage payments in the last six months of 2007. Homeowners age 50 and older represented about 28 percent of all delinquencies and foreclosures.

NEW YORK - The loan you qualify for on Monday might be out of reach on Tuesday. Bankers and lenders are rapidly changing their requirements as home sales and prices plummet and delinquencies and defaults rise. Problems in the mortgage market are spilling into other lending markets as customers struggle to keep up with payments on other loans, such as auto and credit card payments. "The market is reinventing itself daily," said Les Berman, owner of Beverly Hills, Calif.-based EB Financial and the president of the California Association of Mortgage Brokers.

WASHINGTON - Ben Bernanke says declines in home prices have forced many Americans to cut back sharply on spending and warns that the trend could continue to weigh on the economy for years. The Federal Reserve chairman drew the connection between home values and consumer spending, which fuels 70 percent of economic activity, yesterday during a speech to the National Association of Home Builders in Orlando. Bernanke says the broader economy won't fully recover until the depressed housing market turns around.

Falling home values has kept some troubled homeowners from moving to another state for work -- but not enough to make a major impact on the national jobless rate. That's the conclusion of a new report by the Federal Reserve Bank of Boston, which looked at the impact of the housing market on jobs. The report, produced by the bank's New England Public Policy Center and accompanied by a video, examined homeowners whose properties were "underwater," or when their mortgage was larger than the value of the home.

ST. CLOUD, Fla. - Gone are the "For Sale" signs that sprouted like weeds in yard after yard along the streets of Magnolia Green, one of the scores of subdivisions that rose in recent years in Florida's once-booming Osceola County. Realtors no longer put them out, for fear of giving the impression of a blighted neighborhood. In homes that remain occupied, owners such as Jose Cruz lament lost jobs, lost hope, and lost confidence that Republicans are willing to offer a solution. Instead, the candidates seeking votes in Tuesday's presidential primary have mostly...

The Federal Reserve, Obama administration, and Congress should pursue policies to stimulate the weak economy, targeting them at two struggling areas that have historically helped lead US recoveries, housing and small business hiring, Eric S. Rosengren, president of the Federal Reserve Bank of Boston, said today. In past recessions, a difficult job market has been the impetus some people used to start a new small business, Rosengren said during a speech before business leaders in Hartford.

Never have average rates on long-term fixed mortgages been as low as they are now: 3.91 percent for a 30-year home loan and 3.21 for a 15-year loan. The new lows mark the eighth straight week in which the average on the 30-year loan has hovered near 4 percent. Those rates make now a tantalizing time to refinance. And, with home prices having sunk in most areas of the country, many would-be buyers are tempted, too. Yet the pace of refinancing and home buying has been mostly unchanged over the past year.

MIAMI - An AARP study challenges the perception that older Americans have been left out of the current real estate crisis because they have built enough home equity to avoid delinquencies and foreclosure. Research by AARP's Public Policy Institute showed yesterday that 684,000 homeowners age 50 and older were either in foreclosure or delinquent on mortgage payments in the last six months of 2007. Homeowners age 50 and older represented about 28 percent of all delinquencies and foreclosures.

WASHINGTON - Ben Bernanke says declines in home prices have forced many Americans to cut back sharply on spending and warns that the trend could continue to weigh on the economy for years. The Federal Reserve chairman drew the connection between home values and consumer spending, which fuels 70 percent of economic activity, yesterday during a speech to the National Association of Home Builders in Orlando. Bernanke says the broader economy won't fully recover until the depressed housing market turns around.

Never have average rates on long-term fixed mortgages been as low as they are now: 3.91 percent for a 30-year home loan and 3.21 for a 15-year loan. The new lows mark the eighth straight week in which the average on the 30-year loan has hovered near 4 percent. Those rates make now a tantalizing time to refinance. And, with home prices having sunk in most areas of the country, many would-be buyers are tempted, too. Yet the pace of refinancing and home buying has been mostly unchanged over the past year.

NEW YORK - The loan you qualify for on Monday might be out of reach on Tuesday. Bankers and lenders are rapidly changing their requirements as home sales and prices plummet and delinquencies and defaults rise. Problems in the mortgage market are spilling into other lending markets as customers struggle to keep up with payments on other loans, such as auto and credit card payments. "The market is reinventing itself daily," said Les Berman, owner of Beverly Hills, Calif.-based EB Financial and the president of the California Association of Mortgage Brokers.