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Mortgage ads may deceive, FTC says

By Times Wires
Published September 12, 2007

Washington

The Federal Trade Commission has warned more than 200 companies about "potentially deceptive" mortgage advertisements that could give borrowers a false impression of the cost of home loans. The FTC on Tuesday said ads that ran in newspapers and magazines, online and in the mail "may violate federal law" by giving a deceptive picture of mortgage terms. The FTC declined to make available a list of the companies it warned because it has not definitively concluded that the companies are breaking the law. Some ads, the FTC said, highlighted rates as low as 1 percent, but didn't inform consumers that they often apply for a short, "teaser" period and can rise substantially.

July trade deficit posts small drop

The U.S. trade deficit declined slightly in July as record exports of farm goods, autos and other products offset a big jump in foreign oil prices. The Commerce Department reported that the trade deficit edged down 0.3 percent in July to $59.2-billion, compared with $59.4-billion the month before. So far this year, the deficit is running at an annual rate of $711-billion, down from $758.5-billion in 2006.

Home sales outlook revised downward

A trade group for real estate agents lowered its forecast 2007 existing home sales for the eighth straight month, predicting a drop of 8.6 percent from last year. The National Association of Realtors' revised monthly prediction calls for U.S. existing home sales of 5.9-million in 2007, down from 6.5-million last year. The forecast was below last month's prediction of a 6.8 percent drop.

Vienna, Austria

OPEC to boost crude oil output

OPEC agreed late Tuesday to boost its crude output by 500,000 barrels a day in an effort to calm markets roiled by high oil prices and worried that supplies could grow tight by the end of the year. The surprise move would take effect Nov. 1, the cartel said. OPEC Secretary General Abdalla Salem El-Badri said the move was based in part on the global effects of the crisis in the U.S. subprime mortgage market. Also Tuesday, light, sweet crude for October delivery rose 74 cents to settle at a record $78.23 a barrel on the New York Mercantile Exchange.

Tallahassee

S&P weighs cut inschool debt ratings

Ratings on more than $12-billion of Florida school district debt were placed under review for a possible cut by Standard & Poor's after a state Supreme Court ruling cast doubt on the validity of the borrowing. S&P said all certificates of participation sold by school districts are under review. The decision focused on tax-increment financing, where increases in taxes from a property development are pledged to repay bonds. The court said those borrowings in the future would require voter approval, though existing tax-increment bonds weren't affected.

[Last modified September 12, 2007, 00:40:20]