* Senate defeats anti-foreclosure proposal (Anne Flaherty, WRAL)

The Democratic-controlled Senate on Thursday defeated a plan to spare hundreds of thousands of homeowners from foreclosure through bankruptcy, a proposal that President Barack Obama embraced but did little to see through.

* BofA’s profit rise, but so do worries (Christina Rexrode, Statesville Record & Landmark)

Bank of America said Monday it made more money in the first quarter than it did in all of 2008, blowing away analysts’ predictions and the profits of every other bank so far. But even that couldn’t please investors, who believe that more bad news is on the horizon. The bank’s shares fell through the day, plunging 24 percent.

* Chancellor expected to help boost supply of mortgage funds in Budget (Myra Butterworth, The Daily Telegraph)

Alistair Darling will announce in the Budget this week that the Government will underwrite billions of pounds worth of new mortgage-backed assets.

* Looking at buying a home? ‘Get off the sidelines’ (Nancy Kimball, Daily Inter Lake)

In the first 45 days this year, a third of all home sales in the Flathead Valley tracked by Northwest Montana Association of Realtors’ Multiple Listing Service were foreclosed properties.

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* Senate defeats Obama-backed, anti-foreclosure bill (Anne Flaherty, San Francisco Chronicle)

dozen Democrats joined Republicans in the 45-51 vote to scuttle the bill, which Obama had said was important to saving the economy and promised to push through Congress. But facing stiff opposition from banks, Obama did little to pressure lawmakers who worried it would encourage bankruptcy filings and spike interest rates.

* Don’t dismiss state help for mortgagebacked securities (George Hay, The Daily Telegraph)

Slicing and dicing huge quantities of duff mortgages into securities and selling them to investors who were oblivious to their poor quality undermined the financial system.

* ‘Cramdown ‘ Lacks Votes (Elizabeth Williamson, Wall Street Journal)

President Barack Obama’s proposal to give homeowners new relief in bankruptcy court appears headed to defeat in the Senate Thursday, barring a last-minute compromise.

* People are angry. Of course, people are always angry, because it’s one of the… (Jon Carroll, San Francisco Chronicle)

Let me tell you about my life. No, stop looking at your watch – this is just 850 words, and you can sit still for that. Without revealing too many details, let me just give you an overview of my financial situation. I’m employed, although I’m employed in the newspaper business, so how much does that really count? But still, a paycheck. Yes, I am one of those millions of Americans – a majority o…

* Small kitchen, smaller budget? 5 tips to renovate (Josh Hoffner, The Gazette)

An intriguing trend has emerged from the wreckage of the real estate market: The brave souls taking the plunge into homeownership are increasingly turning to studio apartments and smaller homes.

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Here is today’s story from Tom Shean.

Under pressure from mounting debts and a faltering economy, Hampton Roads residents are seeking relief in bankruptcy court in greater numbers.

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* UK mortgage lending at �1200bn ‘unmanageable’ claims Cap Gemini banking report (Philip Aldrick, The Daily Telegraph)

According to the annual world retail banking report from Cap Gemini, Unicredit and EFMA, mortgage lending has “exceeded reasonable limits” with the volume of debt running at 86pc of GDP or about �1,200bn. The report recommended 60pc as a sustainable upper level.

* Plan to Let Judges Alter Loans Stalls (Elizabeth Williamson, Wall Street Journal)

Opposition from the banking industry and moderate senators of both parties has stalled a proposal to let judges modify mortgage terms in bankruptcy court.

* Attorney General: Health issues a top complaint in NC (Clay Barbour, Hickory Daily Record)

For the fifth year in a row, health care topped the state’s hit-list for complaints filed with the N.C. attorney general.

* Cuomo Attracts Critics, Admirers (Amir Efrati, Wall Street Journal)

New York Attorney General Andrew Cuomo recently told a gathering of business people that he had phoned a friend about going fishing. The friend’s attorney returned the call, asking why Mr. Cuomo was on a fishing expedition into his client’s activities.

* Monica Yant Kinney: The human face on a toxic asset (Monica Yant Kinney, Philadelphia Inquirer)

The heavily accented woman on the phone was panicky. She’d been trying to reach a Cherry Hill company called Hope Now Modifications.

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Essentially much of the current crisis with American banks and mortgage companies can be attributed to the deregulation mania of the current administration. It is true that deregulation began to some extent within the Clinton administration but it rapidly escalated after that.

Homebuilder Lennar Corp. said Monday it’s fiscal first-quarter losses ballooned 77 percent as it booked charges to adjust land and inventory values, while home deliveries and new orders plunged despite stepped-up buyer incentives.Chief Executive Stuart Miller said the company, one of the nation’s largest homebuilders, continued to face negative housing market and economic trends during t…

Recently, the Bush administration nationalized the two major mortgage giants. Yes, you read that rightnationalized. Very strange for a Republican administration since this is nothing less than a form of state socialism which Republicans are supposedly adamantly against.

When to file bankruptcy? One rule of thumb: If your total credit cart debt is more than three to five times your monthly income, it may be time to consider filing.

* US mortgages shake-up raises lawsuit fears (Saskia Scholtes, The Financial Times)

The US governments plan to pay mortgage servicers for modifying troubled home loans could expose servicers to a new breed of lawsuit from disgruntled mortgage investors, say industry insiders.

* Home construction plunges to record low (KABC)

Construction of new homes and applications for future projects both plunged to record lows in January as all parts of the country showed big declines in building activity.

* Family allowed to remain in home as mortgage fraud case proceeds (Susan Essoyan, Honolulu Star-Bulletin)

Question: Whatever happened to Debbie Aurelio and her family, who lost title to their Ewa Beach home and faced eviction after allegedly being swindled by mortgage scammers?

* Construction’s worst year (Jeff Collins, Orange County Register)

Construction’s worst year With residential and commercial projects reaching their lowest levels in at least 62 years, builders and the companies they hire are struggling to survive.

* The art of mortgage renegotiation (Rob Carrick, The Globe and Mail)

Falling mortgage rates have revealed yet another way the banks are charging their clients more in these financially stressful times.

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Here is today’s story from Business Journal Charlotte on Financial Distress.

More Americans are turning to, or thinking of turning to, bankruptcy as a way out of their financial distress.

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