FINANCIAL NEWS

Inflation-adjusted median U.S. household income jumped 4 percent at the end of 2011, according to a study released on Thursday by Sentier Research. Experts say the rise in income could be attributed to an improved job market, wage increases, a longer workweek and easing inflation.

Encouraging homeowners to opt for short sales as an alternative to walking away from their mortgages is a new tactic banks, like Wells Fargo and Bank of America are using to get homeowners to avoid foreclosure in neighborhoods already spilling over with empty properties. To convince borrowers that selling the home is the right route to take, banks are offering hefty cash incentives that many homeowners won’t want to pass up.

Short Sales Help Avoid Foreclosure

A major foreclosure deal that has been in the works for over a year has finally been settled–and the payoff could be huge for homeowners in need. Federal and state officials announced on Thursday morning that five of the largest mortgage lenders have agreed to pay $26 billion to resolve the robo-signing scandal.

The unemployment rate for individuals between the ages of 18 and 24 hit its lowest level since the government started keeping records just after World War II, according to the Pew Research Center. Its report released on Thursday found only 54.3 percent of young adults were employed by the end of 2011.

Unemployment Rate Gap between Younger and Older Adults Widens

Bank loan standards loosened in 2011 after years of strict requirements following the financial crisis. As a result, household borrowing through credit cards, auto loans, student loans and other installment debt rose significantly at the end of the year, according to a new report from the Federal Reserve.

Bank Loan Requirements Loosened

Photo: Andrew Feinberg

By Paul Sisolak

Facebook creator Mark Zuckerberg may owe up to a staggering $2 billion in taxes–but will still emerge a billionaire–when the social networking site comes up for its initial public offering (IPO) late this year, according to reports.

The number of Americans relying on government assistance skyrocketed over the past few years, says a new analysis of Census data released on Tuesday. In fact, the amount of assistance sent out by the federal government just in the fiscal year of 2010 was up 75 percent from 10 years prior.

Government Assistance Significantly Increases

A foreclosure deal that has been in talks for several months by state officials has reached its deadline today. However, with many states not feeling comfortable with terms in the agreement, some wonder whether mortgage relief will be a real possibility for homeowners who were impacted.

Foreclosure Settlement Deal Deadline Arrives

Photo: geetarchurchy

A Senate bill was passed on Thursday making it illegal for members of Congress, their staff and many executive-branch employees to trade stocks and other securities using inside information received on the job. The bill, which passed with overwhelming support, was created on the urging of President Barack Obama.

The unemployment rate slid for the fifth straight month due to a jump in January hiring, according to a Labor Department report released on Friday. The new rate of 8.3 percent shows continued growth in the job market along with greater promise that the U.S. economy could be moving toward improvement.

Unemployment Rate Falls to Lowest in Nearly 3 Years