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BUSINESS
September 5, 1988 | BILL SING, Times Staff Writer
At first glance, Leisure Technology Inc. hardly looks like a firm in danger of falling on hard times. The Los Angeles-based developer and marketer of adult retirement communities reported record profits in its latest fiscal year. It owns high-quality properties and has a reputation for developing fine housing. The aging of the American population bodes well for its growth prospects. But a closer look reveals signs of potential vulnerabilities, some analysts contend.
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BUSINESS
April 22, 2014 | By Ricardo Lopez
A new report released Tuesday by the Consumer Financial Protection Bureau is warning borrowers of a catch that is pushing private student loans into default even if the loan is in good standing.    The federal consumer agency said that borrowers complain of being blindsided when their student loans automatically default when co-signers -- usually parents or grandparents -- die or fall into bankruptcy. When this happens, lenders demand that the full amount be paid immediately.
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BUSINESS
January 29, 2008 | From Times Wire Services
Defaults on U.S. sub-prime mortgages continued their relentless climb in December as some borrowers faced rising payments on adjustable loans, according to Wachovia Corp. A team of analysts at Wachovia said 28.1% of loan balances backing 20 sub-prime bonds created in the first half of 2006 were in default, up 2.43 percentage points from the previous month. That increase compares with a jump of 2.25 percentage points in November. "It is increasingly difficult to find new synonyms for the word 'increase' to describe the direction of nonperforming loans," the analysts wrote in a report dated Friday.
BUSINESS
July 17, 2012 | By Walter Hamilton, Los Angeles Times
Americans are borrowing huge amounts of money from their 401(k) retirement plans — and then having big trouble paying off their debt, according to a new study. Defaults on 401(k) loans have totaled as much as $37 billion a year in recent years, far higher than previously estimated, according to the analysis Monday by two researchers. The default rate hit 17.4% in the 12 months through May. That's down slightly from the 19.8% peak in mid-2010, but up dramatically from 9.7% in mid-2008, before the global financial crisis.
CALIFORNIA | LOCAL
April 7, 1989
American taxpayers will pay off $2 billion in loan guarantees next fiscal year because many college and trade school students cannot or will not do it themselves. The federal government must reduce that high default rate and, with William J. Bennett no longer trying to dictate terms as education secretary, President Bush and Congress have a chance to do just that. The current education secretary, Lauro F.
BUSINESS
May 2, 2002 | Bloomberg News
Conseco Inc. posted its eighth loss in the last 10 quarters on loan defaults at its finance unit and $136.8 million of one-time expenses, including restructuring costs and investment write-downs and losses. The insurance and finance firm's loss was $96.9 million, or 28 cents a share, contrasted with net income of $80.2 million, or 23 cents, a year earlier. Excluding one-time items and investment losses, profit for the Carmel, Ind., firm was 12 cents a share, 2 cents below estimates.
NEWS
November 28, 1985 | United Press International
A New Jersey firm that built two ships to incinerate hazardous wastes at sea has defaulted on its loans guaranteed by the U.S. Maritime Administration, costing taxpayers $63.8 million, the agency said Wednesday. The financial collapse of At-Sea Incineration Inc. has put the federal agency under fire because of its decision to grant the loan guarantees without assurance the Environmental Protection Agency would approve the technology for ocean disposal of toxic chemicals.
BUSINESS
February 16, 2008 | From the Associated Press
Countrywide Financial Corp. said Friday that home loan delinquencies and foreclosures rose in January as more borrowers struggled to make their mortgage payments. The nation's largest mortgage lender and servicer said loan delinquencies increased to 7.47% last month from 7.2% in December and 4.32% in January 2007. Loan servicers collect mortgage payments and distribute them to the owners of the mortgages. Calabasas-based Countrywide services mortgages totaling about $1.48 trillion.
NEWS
December 12, 1987 | Associated Press
A federal education official, defending a crackdown on student loan defaults, said Friday that some profit-making business schools recruit barely literate students out of unemployment lines. That charge at a Senate hearing by Bruce Carnes, deputy undersecretary of education, drew an angry retort from Sen. Edward M. Kennedy (D-Mass.), who accused the Reagan Administration of aiming its budget ax at "the most vulnerable young people in our society."
BUSINESS
May 2, 1993 | CARLA LAZZARESCHI
Q: I defaulted on approximately $5,000 in student loans in early 1982. I tried to make payments after that, but was earning too little money and was never able to get the loan out of default. My credit rating is suffering and I want to clear up this matter. What do I have to do? --C.F.D . A: The U.S. Department of Education is more than happy to welcome you back into the fold, but it will have to be on the government's terms.
BUSINESS
October 14, 2010 | By Walter Hamilton, Los Angeles Times
Shares of for-profit education companies plunged Thursday after industry leader Apollo Group Inc. shocked Wall Street by predicting a sharp drop in enrollment amid growing government pressure in the industry. For-profit colleges have encountered harsh criticism in recent months from regulators and lawmakers, who say the schools admit poorly qualified students who drop out at high rates and rack up enormous government-guaranteed loans that they have trouble paying off, leaving the tab for taxpayers.
BUSINESS
March 26, 2010 | By Alejandro Lazo and Jim Puzzanghera
The Obama administration unveiled new measures Friday aimed at getting lenders to reduce the principal balances on problem mortgages and to refinance "underwater" borrowers, who owe more than their homes are worth, into government-sponsored loans. The initiatives are part of an escalating effort to buoy the housing market -- and an acknowledgment that more steps are needed to prevent a fresh wave of foreclosures. One provision will allow many unemployed homeowners to get three to six months of reduced mortgage payments while they look for a job. But the most significant change to the $75-billion program is aimed at helping underwater borrowers.
BUSINESS
November 13, 2009 | Dina ElBoghdady, ElBoghdady writes for the Washington Post.
The Federal Housing Administration's cash reserves have shrunk to a level far below what is required by law, and the agency could need taxpayer funding if worst-case scenarios play out, according to an independent audit. The audit examined the reserves the agency must set aside to deal with unexpected losses in its flagship home-buying program, which has played a key role in supporting the housing market. As of Sept. 30, those reserves had an estimated value of $3.6 billion, a sharp drop from $12.9 billion a year earlier, the audit found.
BUSINESS
May 6, 2009 | Times Wire Reports
Sempra Energy, owner of the largest U.S. natural-gas distributor, said first-quarter profit rose 31% on higher utility rates and a surge in earnings from its commodities-trading joint venture. Net income rose to $316 million, or $1.29 a share, from $242 million, or 92 cents, a year earlier, the San Diego-based company said. Sales fell 36% to $2.1 billion. * Marvel Entertainment Inc.
BUSINESS
August 30, 2008 | E. Scott Reckard, Times Staff Writer
In a sign of more stress in Southern California's banking industry, Hanmi Financial Corp. said Friday that it would quit paying dividends to shareholders to conserve cash at its operating unit, Hanmi Bank. The Koreatown-based company lost $105.5 million in the second quarter, largely the result of a noncash accounting charge but also a reflection of growing weakness in the bank's loan portfolio. Because of the red ink, the company said, state and federal regulators have imposed restrictions that require suspending the quarterly dividend of 3 cents a share, last paid in July.
BUSINESS
February 16, 2008 | From the Associated Press
Countrywide Financial Corp. said Friday that home loan delinquencies and foreclosures rose in January as more borrowers struggled to make their mortgage payments. The nation's largest mortgage lender and servicer said loan delinquencies increased to 7.47% last month from 7.2% in December and 4.32% in January 2007. Loan servicers collect mortgage payments and distribute them to the owners of the mortgages. Calabasas-based Countrywide services mortgages totaling about $1.48 trillion.
BUSINESS
May 28, 1999 | Times Wire Services
Iridium, which runs the first global satellite-based telephone network, said it's still trying to restructure its debt and avoid a bankruptcy filing in the event it defaults on $800 million in loans. Iridium has until Monday to meet revenue and subscriber totals required by the loans' covenants, and it isn't close. Its chief executive, financial chief and marketing chief all have left in the last two months.
BUSINESS
January 29, 2008 | From Times Wire Services
Defaults on U.S. sub-prime mortgages continued their relentless climb in December as some borrowers faced rising payments on adjustable loans, according to Wachovia Corp. A team of analysts at Wachovia said 28.1% of loan balances backing 20 sub-prime bonds created in the first half of 2006 were in default, up 2.43 percentage points from the previous month. That increase compares with a jump of 2.25 percentage points in November. "It is increasingly difficult to find new synonyms for the word 'increase' to describe the direction of nonperforming loans," the analysts wrote in a report dated Friday.
BUSINESS
September 18, 2002 | MICHAEL NOLL, BLOOMBERG NEWS
J.P. Morgan Chase & Co., the second-biggest U.S. bank, Tuesday cut its forecast for third-quarter profit because of a surge in loan defaults by telecommunications and cable companies and a plunge in trading revenue. Chief Executive William B. Harrison Jr. said in a conference call with investors that he may fire employees to slash costs after the bank said third-quarter profit from operations would fall "well below" the 58 cents a share earned in the second quarter. Standard & Poor's Corp.
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