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Email not displaying correctly? View it in your browser. FHA Makes Extensive Policy Changes to Address Default Risk The Federal Housing Administration (FHA) said Wednesday that it is raising homebuyers' up-front costs for mortgage insurance, tripling downpayment requirements for borrowers with low credit scores, and cutting seller concessions in half. The agency says the new policies will help it better manage loan risk and losses. According to FHA's latest monthly activity report, nearly 9 percent of the single-family mortgages it insures against default are at least 90 days past due. The record-high delinquency rate has sent the number of claims FHA has been forced to pay out skyrocketing and left its capital reserve fund depleted. Bank of America Posts $5.2 Billion Q4 Loss The nation's largest bank fell into a larger financial hole last quarter than analysts were expecting. Bank of America reported Wednesday that it lost $5.2 billion dollars in Q4, or $0.60 cents a share. Analysts had forecast a narrower $0.52 cents per share loss. While troubles in its mortgage business continued, Bank of America's new CEO said credit quality appears to be stabilizing, even improving. Mortgage Rates Fall, Mortgage Loan Applications Increase: MBA For the week ending January 15, 2010, long-term mortgage rates fell back to 5 percent, and as a result, the volume of loan applications increased, according to the Weekly Mortgage Application Survey released Wednesday by the Mortgage Bankers Association (MBA). The Market Composite Index, a measure of total application volume, jumped 9.1 percent on a seasonally adjusted basis from the week prior, and on an unadjusted basis, the index gained 10.4 percent. Refinancings were up 10.7 percent, while requests for home purchases increased 9.8 percent. Morgan Stanley Reports Profit in Q4 Business appears to be improving on a quarter by quarter basis at Morgan Stanley, according to Wednesday's report on the company's full-year and fourth quarter results. In the fourth quarter of 2009, Morgan Stanley reported a net income of $617 million, or $0.29 per diluted share. As the second consecutive profitable month for the company, this jump in net income marks a notable increase from Morgan Stanley's net loss of $10.953 million in the fourth quarter of 2008. You are receving this email because you opted in at our website dsnews.com or attended a Five Star Conference. Unsubscribe roballey.434-974-5586@blogger.com from this list. Corporate Office: DS News 1909 Woodall Rodgers Suite 300 Dallas, TX 75201 Add us to your address book Washington Bureau: 1101 Pennsylvania Avenue NW Suite 600 Washington, D.C. 20004 Copyright (C) 2009 DS News All rights reserved. Forward this email to a friend Update your profile QUICK LINKS DSNews.com DS News' Red Book DS News' Black Book 2009 Five Star Conference DARE