MORTGAGE LENDING

Thursday, August 30, 2007

MORTGAGE LENDING

Ginnie Mae to Back Bigger Loans

Government National Mortgage Association, the U.S. mortgage-bond agency known as Ginnie Mae, will for the first time guarantee bonds backed by loans of any size to military veterans. The agency on Saturday will start to accept loans guaranteed by the Veterans Affairs Department larger than the current $417,000 limit. VA loans make up about 30 percent of Ginnie Mae bonds.

AVIATION

Flap Failures Must Be Addressed

U.S. and Canadian aviation regulators have ordered Bombardier to address wing malfunctions on certain jets flown by regional carriers. The Federal Aviation Administration's directive, which will go into effect Wednesday, covers 684 airplanes in the U.S. fleet that were built by Bombardier.

The airplanes have experienced flap failures over several years, according to Transport Canada, which issued a safety order affecting 87 jets last month.

The FAA requires a revision of the airplane flight manual to address flap failures and training for the new operations and mandates cleaning and maintenance of the affected shafts.

Quicker Checks Urged for Jets

Newer Boeing 737 jets must be inspected sooner than first ordered because a problem with loose parts may be more widespread than originally believed, U.S. regulators told American Airlines and seven other carriers. The Federal Aviation Administration shortened to 10 days from 24 the time airlines have to check the 737 wings. Officials have said that loose wing parts may have caused a fire that destroyed a China Airlines plane this month.

AIRLINES

American Boosts Flight Times

American Airlines will add five to seven minutes to the time scheduled for each flight at its largest airports to reduce delays plaguing U.S. travel. The airline will begin operations earlier and fly later each day to avoid dropping any flights from its schedule, said David Cush, senior vice president of global sales.

EXECUTIVES

Gap's Financial Chief Leaving

Gap chief financial officer, Byron Pollitt, is leaving the slumping clothing retailer to oversee the books at Visa as the nation's largest credit card network prepares to go public. Pollitt resigned effective Sept. 14. Sabrina Simmons, senior vice president of corporate finance, will become acting CFO.

Senior Delta Official Resigns

Delta Air Lines said that Chief Operating Officer James Whitehurst, who was passed over for the carrier's top job, has resigned, effective immediately.

LEGAL

Quattrone Charges Dropped

A U.S. judge formally approved a request by prosecutors to dismiss all remaining charges against ex-Credit Suisse Group banker Frank P. Quattrone, left.

The decision comes four years after Quattrone was accused of obstructing justice and 17 months after his conviction for the crime was reversed. They government had agreed to drop its case if Quattrone didn't break the law for a year.

The dismissal means Quattrone, head of Credit Suisse First Boston's technology banking group from 1998 to 2003, is free to return to the financial industry he left when he was indicted. He is currently chairman of the Tech Museum of Innovation.

CONTRACTING

Boeing Wins Rocket Contract

Boeing won a contract valued at as much as $1.13 billion to build the upper stage of the NASA Ares I rocket that is to carry the replacement for the space shuttle. The section will be made by a team of eight suppliers that also includes Northrop Grumman.

INVESTING

Global Hyatt Stake to Be Sold

Global Hyatt, the hotel company controlled by Chicago's Pritzker family, will sell a minority stake to a group of investors including Goldman Sachs Holdings for $1 billion. Goldman and Madrone Capital Partners, a firm affiliated with Wal-Mart Stores Chairman Rob Walton, will appoint members to the board, Global Hyatt said.

Global Hyatt owns, manages or franchises more than 735 hotels in 44 countries.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.