The Federal Housing Administration proposed on Monday stricter rules for lenders to reduce its risk and assure it can cover future losses. The FHA has insured nearly a quarter of all new loans made this year, and about 80 percent of that business is from first-time homebuyers. But delinquencies on these mortgages are rising. As of the end of September, about 18 percent of FHA borrowers were at least one payment behind or in foreclosure, compared with 14 percent for all loans, according to the Mortgage Bankers Association. The FHA proposes to require lenders to have a net worth of at least $1 million in the first year and $2.5 million within three years. That’s up from the original requirement of $250,000.
PBS host Charlie Rose to join BusinessWeek
The talk show host Charlie Rose will write a column for BusinessWeek once Bloomberg LP takes over the magazine next month. Rose, 67, will continue in his role as anchor and executive editor of PBS’s “The Charlie Rose Show.” He’ll use his round-table interviews with executives, politicians and other notables as fodder for weekly magazine pieces. Bloomberg, a news and financial information provider based in New York, already pays to carry Rose’s nightly broadcast on its cable channel. The company agreed to buy BusinessWeek in October from McGraw-Hill Companies Inc.
Worker stress shows up as greater unplanned absence rate
A survey of large companies shows the economy is prompting stressed-out workers to call in sick more and seek greater help from employee assistance programs. Benefits consultant Watson Wyatt says 22 percent of companies responding to an e-mail survey have seen an increase in unplanned absences. Nearly half saw more use of employee assistance programs, which typically offer counseling or stress management help. Workers also are using their health benefits more. Watson Wyatt says this is typical in a tough economy, when employees worried about layoffs try to use benefits while they still have them. Watson Wyatt Worldwide Inc. conducted the survey with the National Business Group on Health.
Treasury bill rates rise in Monday auction
The Treasury Department auctioned three-month bills at a discount rate of 0.06 percent, up from 0.04 percent last week. Six-month bills were auctioned at a discount rate of 0.15 percent, up from 0.14 percent last week. These rates have been hovering near historic lows for months, reflecting the Federal Reserve’s efforts to keep interest rates low to strengthen the struggling economy. For a $10,000 bill, the three-month price was $9,998.48 while a six-month bill sold for $9,992.42. Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index used to make changes to adjustable-rate mortgages, fell to 0.27 percent last week from 0.29 percent the previous week.
From Herald news services
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