Headlines

Morgan Stanley has agreed to pay $95 million to settle a lawsuit alleging that the New York City-based financial services giant misled investors in mortgage-backed securities prior to the financial crisis of 2008, according to New York federal court papers.

In their latest economic projections from June, the members of the Federal Open Market Committee (FOMC) projected a median federal funds rate of 1 percent at year-end 2015 and 2.5 percent at the end of 2016. Based on their own modeling, the analysts say investors put the probability of the federal funds rate hitting the FOMC's target next year at 31 percent, with 2016's projected rate having a 27 percent probability.

In an effort to avoid a repeat of the 2008 financial crisis, Fed Governor Daniel Tarullo announced on September 9 to the Senate Banking Committee that the Federal Reserve is planning to impose a capital surcharge on the nation's biggest banks that is higher than that of their international counterparts.

Foreclosure prevention counselors have saved homeowners millions of dollars annually, according to a recent study by the Urban Institute for NeighborWorks America.

Two Kansas men were indicted on multiple charges of defrauding a bank that was receiving government assistance out of more than $877,000, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero and U.S. Attorney for the District of Kansas Barry Grissom announced recently.

Home asking prices are on the rise nationwide, according to the August 2014 Trulia Price Monitor released on September 9, but they are rising at a faster rate in "judicial" states where the foreclosure process takes longer.

Birchwood Credit Services recently announced the hiring of John Shea as senior vice president of sales and marketing. Based in North Conway, New Hampshire, Birchwood offer has been offering credit information solutions, including mortgage credit and tenant screening products, and many other professional services to the mortgage industry since the company was founded in 1992. As SVP of sales and marketing, Shea will direct the execution of sales plans and will oversee strategic planning and customer service.

A report released recently by the Federal Reserve Board provided evidence that the gap between the richest American families and all others is getting wider. The Survey of Consumer Finances, conducted by the Federal Reserve Board every three years, reported last week that the wealth share held by the top 3 percent totaled 54.4 percent in 2013, a number that has climbed from 51.8 percent in 2007 (before the recession) and from 44.8 percent in 1989.

August's increase was driven by improvements in seven of the eight indicators used to calculate the index, the group reported, with the percentage of firms unable to fill positions right now contributing the most.

The securities "would combine the best features of each of the current securities," such that "the security would have the superior pooling features of the current Fannie Mae securities and the superior disclosure features of the Freddie Mac securities," according to the Urban Institute.