HUD Adopts Gustav Moratorium
Housing and Urban Development Secretary Steve Preston announced on Thursday a 90-day moratorium on foreclosures of mortgages insured by the Federal Housing Administration in certain counties that sustained damages due to Hurricane Gustav. The foreclosure relief will apply to families whose damaged homes are insured through FHA who are living in presidentially declared disaster areas. HUD also is strongly recommending that loan servicers take such actions as special forbearance, loan modification, refinancing and waiver of late charges. As President Bush declares certain counties disaster areas, HUD will offer states the ability to re-allocate existing federal resources toward disaster relief; offer FHA insurance to disaster victims who have lost their homes and must rebuild or buy another home; and offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure. Read more

Sovereign Wealth Funds Draft Plan
Members of the International Working Group of Sovereign Wealth Funds reached a preliminary agreement on a draft set of principles and practices for recommendation to their respective governments. The “Generally Accepted Principles and Practices for Sovereign Wealth Funds” is a voluntary framework to set appropriate investment practices, governance and accountability arrangements for Sovereign Wealth Funds. The agreement is expected to be presented to the International Monetary Fund's International Monetary and Financial Committee on Oct. 11. In addition to the principles and practices, the group also is exploring creating a standing group for Sovereign Wealth Funds to ensure the agreement is reviewed in the context of evolving market dynamics. Read more   

FASB to Issue 3 Drafts
The Financial Accounting Standards Board announced on Sept. 3 that it expects to issue three separate, but related exposure drafts for comment on or around Sept. 15. The documents will address proposed amendments to: Statement No. 140 -- Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, FASB Interpretation No. 46 -- Consolidation of Variable Interest Entities, and proposed FASB staff position No. 140-e and FIN 46 (R)-e on Disclosures About Transfers of Financial Assets and Interests in Variable Interest Entities. FASB said the Statement 140 proposal, would, among other things, remove the concept of a qualifying special-purpose entity and would remove the exception from applying Interpretation 46(R) to qualifying special-purpose entities. The proposed statement to amend Interpretation 46(R) would give guidance for determining whether an enterprise must consolidate a special-purpose entity, including those previously considered qualifying special-purpose entities. Both proposed statements would require additional enhanced disclosures. Read more

Seniors Still Hungry for Credit
Credit usage remains quite widespread after retirement for people of means, according to a recent Synergistics online survey. The survey polled 1,000 consumers with liquid assets of $100,000 or more and found that three-quarters of retirees used credit to the same extent as they did when working full-time and were comfortable managing it. About one in seven retirees said they either did not use credit at all or use it much less.  One-tenth of the retirees were using credit more than they preferred, but found it necessary for some expenditures. By contrast, half of those currently working expected to use credit less once they retired.  Less than four in 10 expected to use it to the same extent, and only one-tenth believed they would use credit more when they retired. In looking at the types of credit used, the survey found that many retirees used home equity credit in much the same way as they did before they retired. Read more