Arizona sues BofA for alleged mortgage fraud
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Arizona's attorney general filed a lawsuit Friday against Bank of America, accusing the state's largest mortgage lender of deceiving borrowers who were trying to obtain loan modifications to keep their homes.

Officials Search for Fannie-Freddie Road Map
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Obama administration officials are struggling to reach consensus on a future path for mortgage giants Fannie Mae and Freddie Mac, unable to agree on whether the government should provide a guarantee for new mortgages when the market stabilizes.

Pensions Push Property Taxes Higher
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Cities across the U.S. are raising property taxes, largely citing rising pension and health-care costs for their workers and retirees.

IRS says tax changes will cause some filing delays
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Thanks to a December tax package that was hailed as a forerunner of a bipartisan spirit in government, the Internal Revenue Service needs to reprogram computers for new college tuition breaks, teachers who buy classroom supplies with their own money, and Americans who live where there's no state and local income tax to deduct.

Bank of Kentucky repays half of its bailout
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The regional bank said Wednesday that it repurchased about $17 million of the preferred stock it had issued to the government in February of last year.

Home Sales Struggled Again in November
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As analysts try to gauge the pace of the economic recovery, they inevitably take the pulse of the housing and job markets. And despite some upbeat trends like stronger retail sales and new reports that showed increases in personal spending, sales of new homes remained at historically low levels last month and the job market showed little sign of momentum.

Economists See Signs of Stronger Recovery
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There are significant caveats to the more positive outlook. The housing market remains weak, and another sustained drop in prices could badly undercut the economy. Financial markets and the banking system remain vulnerable to a new round of jitters in Europe over the debt burdens of countries like Ireland and Spain. There is mounting concern about the tattered balance sheets of state and local governments.

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.

More people fall out of Obama mortgage-aid program
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More troubled homeowners are dropping out of the Obama administration's main foreclosure-relief program, which has been widely criticized for failing to help more people keep their homes.

Home Sales Edge Higher but Fall Short of Forecast
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Sales of existing homes rose in November, but analysts said increased employment and better access to credit were needed before the housing market could achieve a sustained recovery.

In a Sign of Foreclosure Flaws, Suits Claim Break-Ins by Banks
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When Mimi Ash arrived at her mountain chalet here for a weekend ski trip, she discovered that someone had broken into the home and changed the locks.

'Shadow' inventory of foreclosed homes could add to housing troubles
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Shadow inventory homes are properties that have been foreclosed on or are in the process of foreclosure but are not currently listed for sale. Housing analysts say this pending supply will keep prices depressed in many cities.

Tax deduction for mortgage interest could be on the chopping block
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Scholars have long argued that the mortgage deduction and other tax subsidies supporting housing, including a deduction for property taxes and tax exemptions for profits on home sales, are neither equitable nor economically efficient. Some say they've helped skew the economy's reliance on an industry that has little export potential and often encourages over-consumption.

State orders court appearance for 6 mortgage lenders
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Bank executives who were hoping for a quiet end to this fall's controversy over irregularities in the foreclosure process are facing a new threat: state judges.

Housing Pick Faces Opposition
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The White House's pick to head the agency that oversees Fannie Mae and Freddie Mac appears unlikely to win Senate confirmation before Congress adjourns.