Bank of America splits with Fannie MaeBank of America Corp., the second-largest U.S. lender by assets, will stop selling new home loans to Fannie Mae after a dispute over faulty mortgages. Starting this month, the Charlotte, N.C.-based company will deliver only loan modifications and refinancings to U.S. government-controlled Fannie Mae, the bank said in its annual filing with securities regulators. The bank will either sell new loans to Freddie Mac, the other mortgage finance firm, or retain them on its balance sheet.
E.U. foresees 'mild recession' for eurozoneThe European Union lowered its growth forecast for this year and warned that the eurozone would undergo a "mild recession," casting further gloom on the Continent's economic prospects. In its forecast, the European Commission said the 17-nation single currency zone will likely shrink by 0.3 percent as a whole in 2012. It had forecast growth of 0.5 percent for the year last November. The new figures are likely to intensify concerns that austerity measures are undermining growth.
Initial jobless claims stay at four-year lowThe number of Americans filing first-time claims for unemployment insurance payments last week held at a four-year low, more evidence the labor market is improving. Applications for jobless benefits were unchanged in the week ended Feb. 18 at 351,000, the fewest since March 2008, Labor Department figures showed. The four-week moving average, a less-volatile measure, declined to 359,000, also the lowest since March 2008, from 366,000.
Apple makes changes to election of directorsApple Inc., bowing to pressure from the California Public Employees' Retirement System and other shareholders, agreed to start electing its directors by majority votes rather than a plurality. Chief Executive Tim Cook, speaking at an annual investor meeting, also said Apple was continuing "active discussions" about what to do with its $97.6 billion in cash and investments, saying the cash hoard was "more than we need to run a company." Investors at Thursday's meeting passed a nonbinding measure in favor of the board-election change.
Feds to invest $14 million in biofuel researchThe Energy Department plans to invest $14 million to make transportation fuels out of algae, according to the White House. Algae, a plant-like organism without roots, can be harvested from ponds near industrial sites, where it can grow from power-plant carbon emissions or wastewater substances, the White House said. The Energy Department plans to ask small businesses, universities and national laboratories to create "test beds" to conduct research on algae biofuels.
Mortgage rates climb a bit from rock bottomRates for 30-year U.S. mortgages rose for the first time in four weeks as sales of previously owned homes climbed to the highest level since May 2010. The average rate for a 30-year fixed loan increased to 3.95 percent in the week ended Thursday from 3.87 percent, the lowest in records dating to 1971, Freddie Mac said in a statement. The average 15-year rate rose to 3.19 percent from 3.16 percent, according to the McLean, Va.-based mortgage-finance company.
FROM NEWS SERVICES
