Two States Sue Bank of America Over Mortgages
For more; http://nyti.ms/e9iwic
The attorneys general of Arizona and Nevada on Friday filed a lawsuit against Bank of America, accusing it of engaging in “widespread fraud” by misleading customers with “false promises” about their eligibility for modifications on their home mortgages.

Protecting Your Credit Score From the Medical Bill Maze
For more: http://nyti.ms/dVzck7
IF there is one place where your health and your finances collide, it is on your credit report. That is something Darryle Watson learned the hard way.

Be Cynical About the Refinance Process
For more: http://nyti.ms/g55gxR
As least until recently, we’ve been in the midst of a refinancing boom. So consumers applying for refinancings should at least expect some delays.

U.S. Housing Starts Rise; Jobless Filings Steady
For more: http://nyti.ms/hGSnpT
Housing starts in the United States rose slightly more than expected in November, but permits for future home construction fell to an 18-month low.

In Marketing of a New Mortgage Fund, Pimco Lists Former Bush Officials
For more: http://nyti.ms/eRBmKM
When Pimco, the huge bond manager, approached investors recently to raise money for a new fund that would buy soured mortgage securities from ailing banks, it promoted its expertise by listing several former top Bush administration officials and Alan Greenspan, the former Federal Reserve chairman.

Financial Bailout May Cost Less Than Thought
For more: http://nyti.ms/f6TRAU
The Treasury secretary, Timothy F. Geithner, said Thursday that the $700 billion financial bailout would end up costing taxpayers less than Congressional analysts had estimated.

Fed Proposes Rules to Cut Debit Card Fees
For more: http://nyti.ms/gOR94H
The Federal Reserve, fulfilling a Congressional order to examine whether merchants were being charged excessive fees to process debit card transactions, proposed new rules on Thursday that analysts said could cut those fees as much as 90 percent.

Govt trying to keep people in homes: Geithner
For more: http://wapo.st/gJLtPa
Treasury Secretary Timothy Geithner said Thursday the government is trying to keep as many struggling borrowers as possible in their homes in several programs. Geithner told a congressional oversight panel that although the Treasury Department's ability to spend new bailout funds for the central foreclosure-prevention effort expired in October, it is running other programs for borrowers in certain situations such as those who are unemployed.

Homeowner Perks Under Fire
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The U.S. government has long subsidized homeownership through tax deductions and loan guarantees. Now, it is re-examining whether it can afford to underwrite the American Dream.

Bank of America Starts Talks on Soured Mortgages
For more: http://nyti.ms/h7hs32
In a bid to turn down the temperature in what promises to be an extended legal battle, Bank of America has opened a dialogue with investors who want the bank to buy back tens of billions in soured mortgages.

Rising Interest Rates and the Fed’s Red Ink
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If Ben Bernanke were an investor, he’d be disappointed . The first chunk of the Federal Reserve’s $600 billion Treasury bond purchase program is in the red, thanks to rising yields. The central bank’s cheap financing makes outright losses unlikely, but Mr. Bernanke, the Fed chairman, could still face an image problem.

Debate on Reverse-Mortgage Risks Heats Up
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A report by Consumers Union and other advocacy groups ignites a debate about whether reverse mortgages are too risky, just as the nation's new consumer agency looks at the issue.

Fewer Homes 'Underwater' as Foreclosures Increase
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The number of U.S. homeowners who owe more on their mortgages than their homes are worth fell in the third quarter, but the decline stemmed from banks getting more aggressive on foreclosures, not from home values going up, according to trade-industry data.

Louisville home sales down 30 percent as slump continues
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Louisville Realtors sold 30 percent fewer homes in November, marking the fifth-straight monthly double-digit decline from a year earlier. The slump started in July immediately following the expiration of the federal housing tax credit, which encouraged many potential buyers to accelerate their purchases.

The Real Estate Collapse? It’ll Be in the Final
For more: http://nyti.ms/hvaPgb
In recent years, the real estate industry’s reputation has faltered as it shoulders much of the blame for causing the deepest recession in decades. Despite this drubbing, and the fact that jobs are still hard to come by, students like Mr. Mann are flocking to master’s programs in real estate, where the recession is seen as a teaching tool and a rich source of case studies.

Panel Is Critical of Obama Mortgage Modification Plan
For more: http://nyti.ms/dKPrQZ
Only about 750,000 households will be helped by the Home Affordable Modification Program, which pays banks to modify loans under Treasury guidelines. That is far fewer than the three million or four million modifications promised in early 2009 by the Obama administration, the Congressional Oversight Panel said.

Housing Shaky as Lenders Tighten
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Economists are worried that the housing sector may be heading into another downdraft as mortgage lenders continue to tighten already restrictive lending standards.

In Tax Benefits to the Middle, Political Lift for Obama
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With the Senate poised to hold a key vote on Monday on the tax cut deal between President Obama and Republicans, the political jousting has focused on what the agreement does for the wealthy by extending all of the Bush-era tax rates, and for the unemployed, by continuing jobless aid.

Risky Borrowers Find Credit Available Again, at a Price
For more: http://nyti.ms/g2wPR9
Credit card offers are surging again after a three-year slowdown, as banks seek to revive a business that brought them huge profits before the financial crisis wrecked the credit scores of so many Americans.

Batting Cleanup at Bank of America
For more: http://nyti.ms/hO11T3
BRIAN MOYNIHAN isn’t one to look back. And as the chief executive of Bank of America, he has plenty of reasons not to.

The Nerve to Say No
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DECIDING what to do with Fannie Mae and Freddie Mac, the taxpayer-owned mortgage giants that helped set the financial crisis in motion, will be a huge job for Congress next year.