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The Honolulu Advertiser
Posted on: Friday, September 18, 2009

BUSINESS BRIEFS
Improved housing, jobless data more signs worst may be over


Advertiser News Services

Hawaii news photo - The Honolulu Advertiser

A job seeker fills out an application for UPS at a job fair in Louisville, Ky.

ED REINKE | Associated Press

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WASHINGTON — Adding to evidence the recession has ended, housing construction rose in August and fewer laid-off workers sought jobless aid last week.

Still, the reports suggested a slow and fragile economic recovery. The rise in housing starts was due solely to a jump in the volatile apartment-building category, and unemployment claims remain far above levels associated with a healthy economy.

And even as the housing industry begins to recover, a glut of unsold homes and record levels of home foreclosures are weighing on the industry.

Construction of single-family homes and apartments rose 1.5 percent to an annual rate of 598,000 units, the highest level since November, the Commerce Department said yesterday. In a separate report, the Labor Department reported that initial claims for unemployment benefits dropped last week to a seasonally adjusted 545,000, from 557,000 the previous week.

HOUSEHOLD WEALTH UP $2T, ENDING STRETCH OF DECLINES

WASHINGTON — For the first time in two years, Americans actually got a little wealthier.

Household wealth grew by $2 trillion, or about 4 percent, last spring, ending the longest stretch of quarterly declines on records dating back to 1952, the Federal Reserve reported yesterday. Net worth — the value of assets minus debts — came to $53.1 trillion for the second quarter.

FTC MAY BAN UPFRONT FEES FOR HELP ON HOME LOANS

WASHINGTON — The head of the Federal Trade Commission said yesterday the agency is considering banning upfront payments to companies that advertise help for borrowers who are in trouble on their home loans.

Government officials say scammers seeking to take advantage of borrowers in danger of default often charge upfront fees of $1,000 to $3,000 for help with loan modifications that rarely, if ever, pay off.

"Avoid any company that asks you for a large fee in advance. That is a real red flag," said Jon Leibowitz, chairman of the FTC. Such upfront fees are already prohibited in 20 states.