Pink Floyd wins battle with EMI over online sales

By JILL LAWLESS | LONDON (AP) — In a victory for the concept album, Britain’s High Court on Thursday ordered record company EMI Group Ltd. to stop selling downloads of Pink Floyd tracks individually rather than as part of the band’s original records.

The prog-rock group sued the music label, saying its contract prohibited selling the tracks “unbundled” from their original album setting.

Pink Floyd lawyer Robert Howe said the band was known for producing “seamless” pieces of music on albums like “Dark Side of the Moon,” “The Division Bell” and “The Wall,” and wanted to retain artistic control.

EMI claimed the clause in the band’s contract – negotiated a decade ago, before the advent of iTunes and other online retailers – applied only to physical albums, not Internet sales.

Judge Andrew Morritt backed the band, saying the contract protected “the artistic integrity of the albums.”

He ruled that EMI is “not entitled to exploit recordings by online distribution or by any other means other than the complete original album without Pink Floyd’s consent.”

The judge ordered EMI to pay the band’s legal costs and said he would rule later on how much the company must pay in damages.

The judge also ruled on a second issue, the level of royalties paid to the band. That section of the judgment was made in private after EMI argued the information was covered by commercial confidentiality.

A spokesman for EMI said the company was considering its response to the ruling.

The band’s spokesman said Pink Floyd had no comment.

Pink Floyd signed with EMI in 1967 and became one of its most lucrative acts, with its back catalog outsold only by The Beatles.

Online sales make up an increasing portion of music companies’ profits, and are a growing area of dispute.

The surviving members of The Beatles have yet to agree a deal to allow their music to be sold online.

Hard-rock band AC/DC also has withheld its music from iTunes, saying the group is not interested in selling individual tracks.

By JILL LAWLESS | LONDON (AP) — In a victory for the concept album, Britain’s High Court on Thursday ordered record company EMI Group Ltd. to stop selling downloads of Pink Floyd tracks individually rather than as part of the band’s original records.
The prog-rock group sued the music label, saying its contract prohibited selling the [...]

Google welcomes chance to export to Iran, Cuba

GENEVA (AP) — A senior Google executive welcomed on Tuesday a U.S. decision to relax restrictions on exporting Internet communications services to Iran, Sudan and Cuba.

Bob Boorstin, Google’s director of policy communications, said the Web search company would now be able to offer some of its other products in those countries, such as the mapping satellite software Google Earth, photo management program Picasa and Internet chat client Google Talk.

“This is a great accomplishment,” Boorstin told a human rights meeting in Geneva. “We are hopeful this will help people like yourselves in this room and activists all over the world take a small step down what is certainly a long road ahead.”

The U.S. Treasury Department said the change to existing trade sanctions was intended to help people “exercise their most basic rights” with the help of instant messaging service and e-mail.

Google itself has come under fire recently in countries where it operates.

Last month, an Italian court held three Google executives criminally responsible for violating the country’s privacy laws for allowing a video of an autistic teenager being bullied to be posted online.

In January, Google threatened to leave China over attempts to snoop on Chinese dissidents’ Gmail accounts from inside the country. China’s government denies any involvement.

Boorstin described the Italian court’s decision as a form of “Internet censorship” that would “encourage repressive regimes.”

“From now on, you’re criminally responsible for anything that appears on your Web site,” he said. “That’s certainly going to have a chilling effect on what people are willing to put up.”

On China, Boorstin said Google was already offering a “a censored search engine” through the Google.cn domain to avoid meeting Chinese requirements for storing sensitive data about its users on servers in the country.

“If and when we pull out of China and turn off Google.cn, I’m afraid that we will be taking away from the Chinese populace a tool that they have come to value,” he said.

Boorstin encouraged human rights activists also to rely on platforms other than the Internet for transmitting information.

GENEVA (AP) — A senior Google executive welcomed on Tuesday a U.S. decision to relax restrictions on exporting Internet communications services to Iran, Sudan and Cuba.
Bob Boorstin, Google’s director of policy communications, said the Web search company would now be able to offer some of its other products in those countries, such as the mapping [...]

Audio indicates kid directed planes at NY airport

NEW YORK (AP) — A child apparently directed pilots last month from the air traffic control center at John F. Kennedy Airport, one of the nation’s busiest airports, according to audio clips. The Federal Aviation Administration said Wednesday that it was investigating.

“Pending the outcome of our investigation, the employees involved in this incident are not controlling air traffic,” the FAA said in a statement. “This behavior is not acceptable and does not demonstrate the kind of professionalism expected from all FAA employees.” The agency declined to comment beyond the statement.

Recordings from mid-February – during a weeklong winter break for many New York schoolchildren – were posted last month on a Web site for air traffic control-listening aficionados.

The child can be heard on the tape making five transmissions to pilots preparing for takeoff.

In one exchange, the child can be heard saying, “JetBlue 171 contact departure.” The pilot responds: “Over to departure JetBlue 171, awesome job.”

The child appears to be under an adult’s supervision, because a male voice then comes on and says with a laugh, “That’s what you get, guys, when the kids are out of school.”

In another exchange, the youngster clears another plane for takeoff, and says, “Adios, amigo.” The pilot responds in kind.

The FAA said the control tower is a highly secure area for air traffic controllers, supervisory staff and airport employees with a need to be there. FAA spokesman Jim Peters said children of the tower’s employees are allowed to visit but would need to get approval from the FAA first.

The union representing air traffic controllers condemned the workers’ behavior.

“It is not indicative of the highest professional standards that controllers set for themselves and exceed each and everyday in the advancement of aviation safety,” the National Air Traffic Controllers Association said in a statement.

NEW YORK (AP) — A child apparently directed pilots last month from the air traffic control center at John F. Kennedy Airport, one of the nation’s busiest airports, according to audio clips. The Federal Aviation Administration said Wednesday that it was investigating.
“Pending the outcome of our investigation, the employees involved in this incident are not [...]

Apple suing phone maker HTC over iPhone patents

CUPERTINO, Calif. (AP) — Apple is suing Taiwan’s HTC, saying the handset maker has violated patents related to the iPhone.

HTC Corp. was the first company to manufacture cell phone based on Google Inc.’s Android operating system, which has emerged as a significant competitor to the iPhone. It is also making the Nexus One phone that Google is selling directly to consumers.

Apple Inc. says HTC has infringed on 20 of its patents covering aspects of the iPhone’s user interface and hardware.

In a statement Tuesday, Apple CEO Steve Jobs said, “We can sit by and watch competitors steal our patented inventions, or we can do something about it. We’ve decided to do something about it.”

HTC spokesman Linda Mills says the company hasn’t had time to review Apple’s claims.

CUPERTINO, Calif. (AP) — Apple is suing Taiwan’s HTC, saying the handset maker has violated patents related to the iPhone.

HTC Corp. was the first company to manufacture cell phone based on Google Inc.’s Android operating system, which has emerged as a significant competitor to the iPhone. It is also making the Nexus One phone [...]

UK’s Prudential buys AIG’s Asian unit for $35.5B

LONDON (AP) — British insurer Prudential PLC said Monday it will buy the Asian unit of bailed out American International Group Inc. in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers.

AIG, which was kept alive by a $182.5 billion rescue by the U.S. government in September 2008, will get $25 billion in cash – $20 billion of that from a Prudential rights issue – and $10.5 billion in new shares and securities for the sale of AIA Group Ltd.

The combined group will be the leading life insurer in Hong Kong, Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines, as well as the biggest foreign life insurer in China and India, Prudential said.

AIG said it would use cash from the sale to redeem $16 billion worth of preferred interests held by the Federal Reserve Bank of New York and to repay about $9 billion to a Fed credit facility. Prudential securities would be sold over time to make additional payments on debt, AIG said.

In selling to Prudential, AIG scrapped an earlier plan for an initial public offering of AIA.

“We decided that a sale to Prudential enables AIG to realize value on a faster track to repay U.S. taxpayers,” said AIG President and CEO Bob Benmosche.

“This transaction, the most significant milestone to date in our ongoing effort to repay taxpayers, also gives us greater flexibility to move forward with AIG’s restructuring and focus on enhancing the value of our key insurance businesses, which will benefit all stakeholders.”

AIG shares were up 12 percent at $28.26 in pre-opening trading on the New York Stock Exchange.

Shares in Prudential PLC – which is not connected to Prudential Financial Inc., based in Newark, N.J. – fell 11.5 percent to 533.5 pence by midday on the London Stock Exchange following the announcement.

“Whilst in the longer term we can see the advantages of this audacious and opportunistic acquisition, on a 12 month view, we think that the shares will underperform,” said Barrie Cornes, analyst at Panmure Gordon.

AIG, which is now 80 percent owned by the U.S. government, said Friday it lost $8.87 billion in the fourth quarter as its general insurance business remained weak.

As of Dec. 31, AIG’s outstanding assistance from the U.S. government totaled $129.26 billion, up 5.7 percent from the end of the third quarter due to accrued interest.

That total includes $94.76 billion in loans and interest, and $34.5 billion tied to the value of investments the government bought from AIG. As those investments pay off or rise in value, the government recoups more money.

Last month, MetLife Inc. confirmed that it is in talks with AIG to buy one of AIG’s insurance units. Media reports price the deal at as much as $15 billion. The two companies have been in discussions for months about a potential deal for AIG’s American Life Insurance Co., known as Alico.

Prudential said it expected to complete the acquisition of AIG’s Asian unit in the third quarter, subject to approval from regulators and shareholders.

“This transaction is hugely exciting and a one-off opportunity to transform the group,” said Prudential CEO Tidjane Thiam.

“Asia has been very clearly a major driver of value for Prudential for several years and in 2009 it accounted for 44 percent of new business profit (post-tax),” he added. “The combined group would have 60 percent of 2009 new business profit coming from Asia and puts us in a strong leadership position in all the critical growth markets in the region.”

Prudential estimated pretax savings of $340 million per year within three years.

“This acquisition is not about cost savings,” Thiam said in a conference call. “We are making this transaction because we believe there is extraordinary growth in Asia.”

Prudential said its sales were up 42 percent in the fourth quarter in Asia, which the company calls “the engine of the group’s future growth.”

Prudential released its 2009 results ahead of schedule on Monday, reporting a net profit of 676 million pounds ($1.01 billion) compared to a loss of 396 million pounds in 2008.

The Prudential deal will involve creating a new company, also to be known as Prudential PLC and listed on the London Stock Exchange, which will acquire the assets of the existing company and of AIA, Prudential said.

LONDON (AP) — British insurer Prudential PLC said Monday it will buy the Asian unit of bailed out American International Group Inc. in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers.
AIG, which was kept alive by a $182.5 billion rescue by the U.S. [...]

Stocks edge higher after mixed economic news

(AP) The stock market eked out a gain Friday as investors took downbeat economic news in stride.

The modest gains still left stocks with a loss for the week but the Dow Jones industrial average and the Standard & Poor’s 500 index logged their best month since November.

The latest bad news came from several corners including the financial industry. Insurer American International Group Inc. reported a larger than expected fourth-quarter loss. The company said its primary insurance business was hurt in part by the economy.

The National Association of Realtors said sales of previously occupied homes fell 7.2 percent in January. It marks the second straight month of a big drop. Analysts had predicted a gain. The Realtors’ report comes two days after the Commerce Department said that new home sales fell last month.

Meanwhile, the Commerce Department reported that the nation’s economy grew at a faster pace than initially estimated for the end of 2009. The stronger growth from the third quarter to the fourth quarter was welcome news but analysts say much of the gain is tied to businesses rebuilding inventories. Gross domestic product grew at an annual rate of 5.9 percent, above the 5.7 percent previous estimate. Growth is expected to slow in the coming quarters.

The mixed reports added to investors’ confusion about the economy. Analysts are divided over whether a recovery is on track. That has led to swings in the stock market after nearly a year of huge gains. Major stock indexes were strong in February but are down about 1 percent for the year. This week, stocks have fallen, jumped and slid again as worries about the economy intensified and eased.

“We’re in a time period where the range of potential outcomes is probably wider than it’s been for some time,” said Colleen Supran, a portfolio manager at Bingham, Osborn & Scarborough in San Francisco. She pointed to concerns about everything from unemployment and housing to heavy debt loads in Greece and other parts of Europe causing another recession.

“Are we going to have a double dip? Are corporations going to be able to grow earnings? That’s sort of the bottom line for stock prices in the long run.”

The Dow rose 4.23, or less than 0.1 percent, to 10,325.26. It fell 0.7 percent for the week but rose 2.6 percent for the month. That’s the best run since it jumped 6.5 percent in November.

The broader S&P 500 index rose 1.55, or 0.1 percent, to 1,104.49. It fell 0.4 percent for the week and climbed 2.9 percent in February.

The Nasdaq composite index rose 4.04, or 0.2 percent, to 2,238.26. It fell 0.3 percent for the week. For February, the gain came to 4.2 percent.

Bond prices rose, pushing yields lower. The yield on the benchmark 10-year Treasury note fell to 3.62 percent from 3.64 percent late Thursday.

The dollar fell against other major currencies. Gold rose.

Crude oil rose $1.49 to $79.66 per barrel on the New York Mercantile Exchange.

Trading volume was light Friday in part because of a winter storm hitting the Northeast. More than 20 inches fell in New York’s Central Park.

Investors were unwilling to make big moves ahead of economic reports next week. Most important, the Labor Department is expected to release its February payrolls report on Friday. Reports are also due on personal income and spending, manufacturing, construction spending and home sales.

Inconsistent reports are a part of economic recoveries but the size of the problems like unemployment and housing have brought concerns that a recovery will stall.

“It’s just complicating the ability to forecast with any degree of confidence how this is all going to settle out,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The questions about the economy have been tugging at the market. Stocks fell Monday and Tuesday after Lowe’s Cos. and Campbell Soup Co. warned that consumer spending will be slow to recover and after a drop in consumer confidence. The market then barreled higher Wednesday after Federal Reserve Chairman Ben Bernanke reiterated that interest rates would stay low to help the economy. On Thursday, stocks plunged and then recovered most of their losses as concerns shifted about unemployment and Greece.

“It really speaks to the level of angst that’s out there,” Luschini said, referring to the swings.

The report from AIG brought a reminder of the strains that still exist in the financial system. AIG said it lost $8.87 billion in the fourth quarter of 2009. That’s improved from a year earlier but weaker than analysts expected. AIG fell $2.74, or 10 percent, to $24.77.

Private equity firm Thomas H. Lee Partners said it is planning to acquire the parent of Carl’s Jr. and Hardee’s restaurants. The offer for CKE Restaurants Inc. totals $619 million in cash and $309 million in debt. Analysts like to see takeovers because it is a sign of confidence in the economy. CKE jumped $2.46, or 27.6 percent, to $11.37.

Meanwhile, a fifth straight monthly increase in the Chicago Purchasing Managers Index provided some hope about the strength of manufacturing. The Chicago PMI rose to 62.6 in February from 61.5 in January.

Three stocks rose for every two that fell on the New York Stock Exchange, where trading volume came to 1.2 billion shares compared with 1.1 billion Thursday.

The Russell 2000 index of smaller companies fell 1.90, or 0.3 percent, to 628.56.

Overseas, markets rose after improved economic reports in Britain and Japan boosted optimism about a global recovery. The U.K. government revised higher its estimate of the nation’s economic growth for the fourth quarter. In Japan, output from factories rose by more than expected in January and February retail sales jumped.

Britain’s FTSE 100 rose 1.5 percent, Germany’s DAX index gained 1.2 percent, and France’s CAC-40 rose 1.9 percent. Japan’s Nikkei stock average rose 0.2 percent.

(AP) The stock market eked out a gain Friday as investors took downbeat economic news in stride.
The modest gains still left stocks with a loss for the week but the Dow Jones industrial average and the Standard & Poor’s 500 index logged their best month since November.
The latest bad news came from [...]

New home sales hit record low in January

WASHINGTON (AP) — Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.

The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half century. The big drop was a surprise to economists who had expected sales would rise about 5 percent over December’s pace.

While winter storms were partly to blame, home sales have fallen for three straight months despite sweeping government support. Economists were already worried that an improvement in sales in the second half of last year could falter as various government support programs are withdrawn.

“There is no doubt that January and February are going to be messy months for housing, given the severe weather conditions, but that doesn’t take away from the fact that the housing sector has taken another big step back, even with the government aid,” Jennifer Lee, a senior economist at BMO Capital Markets, said in a research note.

January’s weakness was evident in all regions except the Midwest, where sales posted a 2.1 percent increase. Sales were down 35 percent in the Northeast, 12 percent in the West and almost 10 percent in the South.

The drop in sales pushed the median sales price down to $203.500. That was down 5.6 percent from December’s median sales price of $215,600, and off 2.4 percent from year-ago prices.

New home sales for all of 2009 had fallen by almost 23 percent to 374,000, the worst year on record. The National Association of Home Builders is forecasting that sales will rise to more than 500,000 sales this year, an improvement from 2009 but still far below the boom years of 2003 through 2006 when builders clocked more than 1 million new home sales per year.

January’s data will increase concerns that the housing rebound could falter in coming months as the government withdraws the support it has used to try to bolster the housing market, which stood at the epicenter of the country’s overall recession, the worst downturn since the 1930s.

A $1.25 trillion program from the Federal Reserve which has held down mortgage rates is set to end March 31 and tax credits to bolster home buying are scheduled to expire at the end of April.

First-time home buyers could qualify for a credit of up to $8,000 while homeowners who have lived in their current properties for at least five years could claim a tax credit of up to $6,500 if they decided to move into another home.

Though the overall economy started growing again this past summer, economists are worried because unemployment remains high. This weakness is causing consumers to shy away from spending, especially on big-ticket items such as homes.

The Conference Board reported Tuesday that its Consumer Confidence Index fell almost 11 points to 46 in February, pushing the index down to its lowest reading since last April. At 46, the index is a long way from the 90 reading that economists generally view as depicting healthy consumer attitudes.

WASHINGTON (AP) — Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.

The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of [...]

Consumer confidence falls sharply

NEW YORK (AP) — A monthly poll showed consumers’ confidence took a surprisingly sharp fall in February amid rising job worries. The decline ends three straight months of improvement and raises concerns about the economic recovery.

The Conference Board said Tuesday its Consumer Confidence Index fell almost 11 points to 46 in February, down from a revised 56.5 in January. Analysts were expecting only a slight decrease to 55.

The increasing pessimism is a big blow to hopes that consumer spending will power an economic recovery. Economists watch the confidence numbers closely because consumer spending accounts for about 70 percent of U.S. economic activity.

The February reading is a long way from what’s considered healthy: A reading above 90 means the economy is on solid footing. Above 100 signals strong growth.

The news sent stocks lower, overshadowing retailer reports that showed stronger holiday profits. The Dow Jones industrial average falling 74.29 points to 10,309.09 by midmorning.

One gauge, measuring consumers’ assessment of current conditions, dropped to 19.4 from 25.2, the lowest level since 1983. The other barometer, which measures their outlook over the next six months and had been rising since October 2009, fell to 63.8 from 77.3.

The overall Consumer Confidence Index hit a historic low of 25.3 in February 2009 but then enjoyed a three-month climb to 54.8 in May, fueled by signs the economy might be stabilizing. Since then, it has been mired in a narrow range, dropping as low as 47, as rising unemployment took a toll, before climbing again for a three-month stretch.

February’s reading is well below the 61.4 figure in September 2008, when the financial crisis intensified with the collapse of Lehman Brothers. The index has had an average reading of 95.6 since the Conference Board starting tracking the figures in 1967.

“The combination of earnings and job anxieties is likely to continue to curb spending,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement.

The downbeat report on confidence was released amid encouraging news about the housing market. According to a key housing index, also released Tuesday, home prices rose for the seventh straight month in December, a sign of price stability as the U.S. housing market continues its bumpy road to recovery.

The Standard & Poor’s/Case-Shiller 20-city home price index rose 0.3 percent from November to December, to a seasonally adjusted reading of 145.87. The index was off 3.1 percent from December last year, nearly matching analysts’ estimates that it would fall by 3.2 percent.

But a solid job market is critical to consumers’ boosting their spending and the overall of health of the economy.

The overall economy expanded at an annual rate of 5.7 percent in the fourth quarter, but only about one-fourth of that growth came from consumers. That marked the second quarterly increase in a row after four quarter of decreases. But continued high unemployment could lead consumers to further cut their spending, and that could dampen economic growth.

Many economists expect new jobs to be created in coming months. Unemployment fell to 9.7 percent in January from 10 percent in December, and employers shed 20,000 jobs. But they still worry that joblessness will climb back up by next summer as unemployed people who abandoned job searches start trying again.

The results, based on a sample of 5,000 U.S. households with cutoff date was Feb. 17, showed consumers’ assessment of current job opportunities and job prospects over the next six months eroded.

Those saying that jobs are “hard to get” rose to 47.7 percent from 46.5 percent, while those saying jobs are “plentiful” decreased to 3.6 percent from 4.4 percent.

As for the outlook for the job market, the share of consumers expecting fewer jobs increased to 24.6 percent from 18.9 percent. Those anticipating more jobs will become available in the months ahead declined to 13.4 percent from 15.8 percent. The proportion of consumers expecting an increase in their incomes dropped to 9.5 percent from 11.0 percent.

Traditionally, jobs don’t improve a recovery in consumer spending and confidence. But Gary Thayer, chief economist at Wells Fargo Advisors, believes that this time around, big improvements in jobs, confidence and spending will be “marching together.”

“I think shoppers are going to wait until things get better,” he said.

NEW YORK (AP) — A monthly poll showed consumers’ confidence took a surprisingly sharp fall in February amid rising job worries. The decline ends three straight months of improvement and raises concerns about the economic recovery.
The Conference Board said Tuesday its Consumer Confidence Index fell almost 11 points to 46 in February, down from a [...]

Obama puts forward $1 trillion health care plan

By RICARDO ALONSO-ZALDIVAR
Associated Press Writer

WASHINGTON (AP) — President Barack Obama is putting forward a nearly $1 trillion, 10-year health care plan that would allow the government to deny or roll back egregious insurance premium increases that infuriated consumers.

Posted Monday morning on the White House Web site, the plan would provide coverage to more than 31 million Americans now uninsured without adding to the federal deficit.

It conspicuously omits a government insurance plan sought by liberals.

But it’s uncertain that such an ambitions plan can pass, since Republicans are virtually all opposed and some Democrats who last year supported sweeping health care changes are having second thoughts. After a year in pursuit of his top domestic priority, Obama may have to settle for a modest fallback. (more…)

By RICARDO ALONSO-ZALDIVAR
Associated Press Writer

WASHINGTON (AP) — President Barack Obama is putting forward a nearly $1 trillion, 10-year health care plan that would allow the government to deny or roll back egregious insurance premium increases that infuriated consumers.
Posted Monday morning on the White House Web site, the plan would provide coverage to more than 31 [...]

Fewer people falling behind on home loans

By ALAN ZIBEL
AP Real Estate Writer

WASHINGTON (AP) — The number of borrowers falling behind on their mortgage payments dropped sharply at the end of last year, a sign the foreclosure crisis is beginning to ebb.

The Mortgage Bankers Association said Friday that the percentage of borrowers who missed just one payment on their home loans fell to 3.6 percent in the October to December quarter, down from 3.8 percent in the third quarter. The decline was even more remarkable because delinquencies usually rise at that time of year due to higher heating bills and holiday spending.

The new trend in late payments is significant because it means the number of people going into foreclosure will continue to decline this year. And that is important for all homeowners in areas where cheaply priced foreclosures are bringing down neighboring values.

In high-foreclosure cities like Las Vegas, Phoenix and Miami, for example, homes have lost roughly half their values from their peaks. But Friday’s report showed Nevada, Arizona and Florida had some of the biggest declines in new delinquencies.

Jay Brinkmann, the trade group’s chief economist, said the report likely marks “the beginning of the end” of the wave of mortgage delinquencies and foreclosures that started more than three years ago.

Still, more than 15 percent of homeowners with a mortgage have missed at least one payment or are in foreclosure, a record for the 10th straight quarter.

“The bad news is that we still have a big problem,” Brinkmann said. “The good news is it looks like it may not get much bigger.”

There will be, however, more short-term pain. The number of borrowers who were at least three months behind continues to soar. Nationally, more than 5 percent of borrowers fell into that category in the fourth quarter, up from 4.4 percent in the third quarter.

Many of those borrowers are still being evaluated for help under the Obama administration’s $75 billion mortgage relief effort.

By ALAN ZIBEL
AP Real Estate Writer

WASHINGTON (AP) — The number of borrowers falling behind on their mortgage payments dropped sharply at the end of last year, a sign the foreclosure crisis is beginning to ebb.
The Mortgage Bankers Association said Friday that the percentage of borrowers who missed just one payment on their home loans fell [...]