| MORTGAGE DEMAND MAY BE SLOWING - BBA
Total sterling lending to the UK private sector showed a net underlying increase of 9.5bn (+0.7%) to 1,297bn. This compares with an underlying rise of 20.7bn in January and an average of 12.6bn over the previous six months. Net mortgage lending rose by an underlying 5.2bn. This was lower than both the increase of 5.4bn last month and the monthly average of 5.7bn over the previous six months. Unsecured personal lending fell by 0.2bn in February, compared with a fall of 0.3bn in January. Loans & overdrafts accounted for all of the fall, with credit card borrowing unchanged. There was a strong lending increase to real estate companies (+1.9bn) and lending to construction rose by 0.3bn, although there were decreases in lending to cold water supply companies (-0.3bn), wholesale & retail trade (-0.3bn) and agriculture & fishing (-0.2bn).
Japanese lenders deny loans to credit risks
TOKYO: Aiful, Japan's biggest consumer lender, and its two closest rivals rejected more than half of loan applicants in January as they seek to trim costs by weeding out borrowers who could default. Aiful cut approvals by half, granting unsecured personal loans to 36 percent of applicants in January, compared with 72 percent in February 2006, according to data on its Web site. Acom, the second-biggest lender, cut approvals by a third to 47 percent in the same period. Promise ratified 40 percent. Bad-loan costs have mounted in the $170 billion consumer finance industry since Japan's courts last year opened the door for borrowers to claim refunds of interest and regulators reined in collection tactics. The three biggest lenders forecast a combined $5 billion loss in the year to March 31 and may struggle to return to profit as a new law caps their charges at the same level as banks.
Northeast not immune from foreclosures
As mortgage foreclosures increase nationally, the Northeast has not been as hard hit as other parts of the country. But the region is far from immune. At Consumer Credit Counseling Service of NH-VT, a nonprofit credit counseling and education organization, housing-related financial counseling has doubled in the past 12 months. "We're seeing a significant increase in families that are unable to keep up with payments on their subprime mortgages" said Kerry York, executive director of CCCS NH-VT. After a year or two of low interest rates on an adjustable rate mortgage (ARM), many are now reeling from higher interest rates as their mortgages reset. "Recently, we met with a family trying to deal with a rate increase on their ARM. The rate change increased their monthly mortgage payment from $1,300 to $1,750," York said.
AP Newsbreak: State Web site contains data for ID thieves
BOSTON -- An array of personal information that can be used by identity thieves is freely available on the Web site of Secretary of State William Galvin, who recently criticized Gov. Deval Patrick for failing to protect information about voters on his campaign's site. Social Security numbers, bank account numbers, home addresses and phone numbers can be viewed with a few clicks, and Galvin said Wednesday he doesn't plan to immediately remove the information because he's launching a software program to start the process within weeks. "It's totally unacceptable that they are contemplating leaving it up," said Betty Ostergren, a Virginia-based privacy advocate. "Once they realize it's a veritable treasure trove, identity thieves will flock to it. They need to shut the links down." Galvin refused to do so.
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