Welcome Home: Some good news | SummitDaily.com

Welcome Home: Some good news

Bank of America reported profits of $3.2 billion during the latest quarter, easily surpassing Wall Street’s targets and marking a swift departure from its woes during the second half of 2009.Record trading revenues as well as moderating credit costs across a number of the company’s consumer loan businesses powered the bank’s results in the first quarter.”With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy,” Bank of America CEO Brian Moynihan said in a statement.The bank’s credit card and commercial banking businesses, each swung to a profit after losing money throughout all of 2009.BofA’s investment banking profits more than doubled from the fourth quarter of last year, as fixed income, currency and commodity trading revenues enjoyed a sharp rebound.But the bank’s mortgage business continues to struggle. Losses more than doubled from the fourth quarter of last year to $2.1 billion in the first quarter, as the company issued few new loans while it continued to set aside cash for future losses.Ultimately though, the results from the Charlotte, N.C.-based lender were far better than many anticipated. Profits after the payment of preferred dividends were $2.8 billion, or 28 cents a share. The consensus estimate was for the bank to earn a profit of 9 cents a share according to Thomson Reuters.Bank of America’s earnings are another encouraging sign from the nation’s top lenders. On Tuesday JPMorgan Chase booked a first-quarter profit of $3.3 billion. Citigroup and West Coast banking giant Wells Fargo are both on deck to report results next week. Bank of America shares rose nearly 2 percent in premarket trading Friday.

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time homebuyers purchasing a principal residence. The tax credit now applies to sales occurring on or after Jan. 1, 2009 and on or before April 30. However, in cases where a binding sales contract is signed by April 30, a home purchase completed by June 30 will qualify.

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after Nov. 6, 2009 and on or before April 30 (or purchased by June 30, 2010 with a binding sales contract signed by April 30)Information provided by Corporate Asset Management LLC’s Mortgage Lending NewsTheTeam@Elich.com is at Re/Max Properties of the Summit, 305 Main Street in Frisco. Butch Elich & Paula Parker are longtime locals providing real estate customers with award winning service. Find them at http://www.elich.com or search for them by name on Google, Twitter, or Facebook.

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