Financial thoughts

Fewer mortgage borrowers are delinquent on their loan payments, according to the latest data from the Mortgage Bankers Association.

The nation’s overall delinquency rate dropped to 9.85% in the second quarter, down from 10.06% of all loans outstanding three months earlier.

Even better, the percentage of seriously delinquent loans — ones 90+ days late or already repossessed by lenders — dropped to 9.11% from 9.54% in the first quarter.

The drop in loans 90 days or more late was the biggest the MBA has ever recorded, according to the MBA’s chief economist, Jay Brinkmann. "That shows we’re making headway," he said.

He cited three reasons for the improvement:

• Fewer loans are coming into the default process;
• The homebuyers tax credit, which increased demand for homes, generated many pre-foreclosure sales, removing the attached delinquent loans from the statistics;
• The government- and lender-led mortgage modifications "cured" some payment problems.

However, even with those bright spots, there was one troubling finding: First-time delinquencies increased after four quarters of decline. It inched up to 3.51% in the second quarter from 3.45% in the first quarter. According to Brinkmann, the reversal reflects the weakness in both the housing market and the overall economy.

"It’s a question of jobs," he said. "It takes a paycheck to make a mortgage payment."

Underscoring the trend is the foreclosure trend among borrowers with conventional loans, like 30-year, fixed rate mortgages. They accounted for nearly 36% of foreclosure starts during the quarter. And these safe loans rarely get into trouble unless they lose employment or income business card.

The four worst hit states — California, Florida, Arizona and Nevada — still account for nearly 60% of national delinquencies, but California’s numbers dropped dramatically this year. At the end of 2009, California foreclosure starts made up nearly 20% of the nation’s total. That dropped to 14.7% during the second quarter.

Another positive trend is the gradual downturn in the number of borrowers who are underwater on their mortgages, owing more than their homes are worth.

CoreLogic reported today that the rate of borrowers underwater dropped to 23% in the second quarter from 24% in the first.

When borrowers fall underwater, it increases the chance that they’ll lose the homes. Brinkmann calls it one of the two "triggers" that lead to foreclosure.

If homeowners have positive equity, they can use it as a source of cash to pay bills, including mortgages. But if their cash reserves are gone and they can’t afford to make payments because their income has dropped, foreclosure is almost inevitable.

CoreLogic found that negative equity is worst in five states: Nevada (68%), Arizona (50%), Florida (46%), Michigan (38%) and California (33%).

Have you just become delinquent on your mortgage payment? Is it because you lost your job? If so, send an email to realstories@cnnmoney.com and you could be profiled in an upcoming story. Please include a contact phone number. For the CNNMoney.com Comment Policy, click here.  

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Provides fast cash advance payday loans nationwide with no credit checks required.

This is a weekly roundup of accomplishments and deals by businesses in the Birmingham metro area. For more announcements, check out the Birmingham Business Journal’s print edition each week. Send announcements to ccrawford@bizjournals.com.

FITNESS

Iron Tribe Fitness opened in Birmingham in February and now has a membership of 200 clients. It is one of 1,700 affiliates of the CrossFit network worldwide. Iron Tribe founder Forrest Walden opened his first Fitness Together franchise in 2001 and, by 2009, he had developed 55 locations in three states that participate in Iron Tribe Fitness.

NONPROFITS

The Alabama Association of Nonprofits has formed a new partnership with the Internal Revenue Service to help educate the more than 21,000 nonprofit organizations in Alabama about how to protect their tax-exempt status and comply with tax obligations on the heels of recent announcements about exemption revocations by the IRS. The association and the IRS will host a seminar in Birmingham Sept. 14 entitled “How to Lose Your Tax-Exempt Status (Without Really Trying).” Registration for the session is open at www.alabamanonprofits.org.

RETAIL

The state’s first Neighborhood Market, located in Center Point, reopened July 23 after a major three-month remodeling project. The store distributed grants to local organizations as part of the reopening. The store hired about 30 associates to help with the remodel. It employs approximately 90 associates.

TECHNOLOGY

TekLinks, a regional IT services provider headquartered in Birmingham, achieved the Cisco Channel Customer Satisfaction Excellence for the eighth consecutive year low interest personal loan.

More than 200 people are expected to attend this year’s BarCampBirmingham conference. The event will take place from 8 a.m. to 5 p.m. at Innovation Depot, 1500 First Ave. N., downtown. Free tickets are available in limited supply by visiting barcampbirmingham.org.

UNIVERSITIES

The University of Alabama at Birmingham developed a new Advanced Placement Scholarship Program for Birmingham City School System seniors, using income generated from an endowed fund made possible by an anonymous $4 million cash gift designated for scholarships for women and minorities. The first students to participate in the program will be eligible to receive their scholarships for the fall 2011 term.

Funding has been extended and expanded for the aerospace crew, robotics, avionics and equipment work performed by UAB’s Center for Biophysical Sciences and Engineering for the National Aeronautics and Space Administration. The new contract is valued at more than $70 million and is shared among UAB and three out-of-state engineering firms.

UTILITIES

Southern Co. employees held a food drive for the Birmingham Salvation Army and dropped off more than 1,000 food items. The drive was a competition between six departments at Southern Co. and was called “Put Your Manager to Work,” because the managers had to stack and organize the nonperishable food.

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Weyerhaeuser Co. said it’s selling six of its railroads that operate over about 160 miles of track, to Patriot Rail Corp.

The Federal Way timber giant (NYSE: WY) said it’s selling the six railroads, including two in Southwest Washington, to Boca Raton, Fla.-based Patriot for an undisclosed sum.

The six railroads handle about 60,000 carloads of freight annually, Weyerhaeuser said, and they employ about 120 people total.

The railroads in the sale include:

— The DeQueen and Eastern Railroad Company consists of two railroads — the DeQueen and Eastern and the Texas, Oklahoma & Eastern railroads — that operate over a total of 87 route miles in southeast Oklahoma and southwest Arkansas;

— The Columbia & Cowlitz Railway operates over 8 payday loan.5 route miles in Southwest Washington;

— The Weyerhaeuser Woods Railroad operates over 30 route miles in Southwest Washington.

— The Golden Triangle Railroad operates over 13.3 route miles in central Mississippi; and

— The Mississippi & Skuna Valley Railroad owns 21 route miles in Mississippi.

Patriot said that the railroads primarily source Weyerhaeuser and International Paper mills, move finished products and serve some third-party customers.

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Two billionaire brothers face federal fraud charges for selling stock in companies which they helped oversee and then trying to conceal some $550 million in gains.

In a complaint issued late Thursday, the Securities and Exchange Commission said Sam and Charles Wyly Jr. attempted to hide their ownership and trading of stock in these firms by creating an elaborate system of off-shore trusts and subsidiary companies.

The SEC said the Wylys served as corporate directors at four different firms that were publicly traded at the time: Michaels Stores, Sterling Software, Sterling Commerce, and Scottish Annuity & Life Holdings, now known as Scottish Re Group Limited.

Over a period of 13 years, the brothers went to great lengths to hide their scheme, including making misleading statements to brokerage firm intermediaries, according to the SEC.

"The cloak of secrecy has been lifted from the complex web of foreign structures used by the Wylys to evade the securities laws," Lorin Reisner, deputy director of the SEC’s Division of Enforcement said in a statement.

Attempts to reach the Wylys’ attorney were not immediately successful.

Thursday’s announcement is not the Wylys’ first brush with the law. In 1979, Sam Wyly came under investigation by the SEC over a bond deal his company was involved with. He would ultimately settle the case without admitting or denying the allegations.

The Wylys’ personal wealth was also at the center of a reported federal and state investigation from 2005 into whether Bank of America was helping wealthy clients hide their fortunes from the IRS.

In 2001, Sam Wyly made headlines following a drawn-out battle to win control of the software maker Computer Associates.

Throughout their respective careers, both men also established deep connections within the political world. Sam Wyly served as chairman of a presidential advisory commission under Presidents Nixon and Ford. Charles Wyly also served on a presidential advisory council on the issue of management improvement.

Between 2002 and 2010, members of the Wyly family made more than $178,000 in political campaign contributions through an entity called Ranger Governance, according to the nonprofit research firm MapLight.org. 

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Community Bank of the Bay raised more than $7.7 million and added five directors to its board.

The Oakland bank, which expanded into Danville and San Jose in recent months, raised the money from local residents, primarily in the bank’s new markets in the greater Bay Area. CEO Brian Garrett didn’t mince words in discussing the challenge community banks face in raising money today.

“It was a herculean effort to raise capital in this environment,” Garrett said. “Most of the capital came from the new markets we have entered. This is a confirmation of the reputation of the bankers who have joined us from these markets.”

The new board members are William Purcell, president of Walnut Creek-based Purcell International, a food importer and brokerage; Dr. Eddie Cheung, a clinical professor at the U.C. Davis School of Medicine; Gunter Unruh, president and owner of Metric Design and Manufacturing in Campbell; Arthur Lund, an attorney with the San Jose law firm Hoge Fenton Jones and Appel and a former director of Greater Bay Bancorp, now part of Wells Fargo; (NYSE: WFC) Tracey Enfantino, general manager of Environmental Systems Inc no faxing payday loans. and a founder of Heritage Bank of Commerce, (NASDAQ: HTBK) serving on that bank’s board from 1994 to 2003.

Community Bank of the Bay (OTC BB: CBYAA.OB) plans to use the new capital to boost lending.

“We anticipate that the additional capital will be used to increase lending to small and medium-sized businesses,” said William Keller, president and chief operating officer of the bank.

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New York Yankees owner George Steinbrenner has died, Bay News 9 is reporting.

The 80-year-old Steinbrenner had been the owner of the New York Yankees since 1973. During that time, the Yankees won 11 pennants and seven World Series titles. Steinbrenner is also known for his philanthropy in the Tampa Bay area paydayloans.

Earlier Tuesday Bay News 9 reported that Tampa Fire Rescue responded to a call at Steinbrenner's house and that someone was transported to St. Joseph's Hospital.

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Hawker Beechcraft Corp. has sent out 130 layoff notices, according to paperwork filed with the Kansas Department of Commerce.

Shelly Thompson, adult services coordinator with the department, says the state received the paperwork Friday, but that it was dated Thursday. That means, she says, the 60-day notices will take effect August 31 cash advance flexible payments.

Hawker spokesperson Nicole Alexander confirmed that WARN notices had gone out to hourly employees, but said the company would not offer further details.

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Work done on the Edward A. Doisy Research Center at St. Louis University has been awarded LEED certification by the U.S. Green Building Council and the Green Building Certification Institute.

The project team implemented green design and construction strategies in the $80.5 million biomedical research building. Environmentally friendly elements include mechanical systems that operate at energy-efficient levels well below the energy code, and the use of 100 percent outdoor-air supply at all times within the building.

The project team also incorporated open space and landscaping with greatly reduced storm water runoff.

The 10-story, 206,000-square-foot building features steel, brick and glass on the exterior; and modular laboratories, animal vivarium, conference rooms and a Clinical Core Lab facility on the interior.
Clayco Inc. was the construction manager on the project and Cannon Design was the architect.

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Nearly 40 public school systems in North Carolina — including four in the Charlotte region — will share $5.4 million in federal stimulus funding to help save money on utility bills and create jobs.

Grants have been awarded to the following local systems:

•Central Piedmont Community College: $200,000 to repair and upgrade the central energy plant for the uptown Charlotte campus and improve lighting. Total cost of the project is $210,630.

•Charlotte-Mecklenburg Schools: $200,000 for lighting retrofits in 16 schools. The project’s total cost is $400,000.

•Gaston County Schools: $169,200 to upgrade heating and air-conditioning systems and add system controls for Stanley Middle School and North Gaston High School. Total cost of the project is $369,200.

•Rowan-Cabarrus Community College: $177,521 for lighting improvements, occupancy sensors and HVAC system upgrades. Total cost of the project is $194,546.

The grants program is administered by the N.C. Energy Office, part of the state’s Department of Commerce, to encourage energy conservation and economic investment in counties, municipalities, community colleges and public schools.

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Wells Fargo gave $21.6 million to Bay Area nonprofits in 2009.

The greatest focus area for Wells' philanthropy was community development, followed by education. The giving broke down into the following focus areas:

• Community development: $8 million

• Education: $6.8 million

• Human services: $3.2 million

• Arts and culture: $2.4 million

• Civic: $905,000

• Environment: $215,000

Wells Fargo also announced that its giving nationwide totaled $202 million.

The company said that the $21.6 million to Bay Area nonprofits is a 30 percent increase over 2008 giving, though the higher numbers reflect Wells Fargo's takeover of Wachovia, which also had a strong corporate philanthropy program.

In 2008, Wells Fargo gave $16.7 million to local nonprofits and Wachovia gave $5.3 million. Nationwide, Wells gave $102 million in 2008 and Wachovia gave $124 million.

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