Jobless claims fell for the week ending July 23, 2011 to the lowest level in about 3 months.  The report shows that initial jobless claims fell to 398,000.  The report also showed that the previous week’s initial unemployment number had been revised upwards from 418,000 to 422,000.  The 4-week moving average was 413,750 which was a decrease from the previous week’s revised average of 422,250.

Alabama’s unemployment rate rose in June to 9.9% which was a 0.3% increase from May’s unemployment rate of 9.6%.  The report can be read here.

If you have been to the grocery store lately and noticed an increase in prices, you are not alone.  The Alabama Farmers Federation has released in most recent survey on food prices in Alabama.  The result: an increase of $0.42 from June 2011 for 20 of the most basic grocery items.  The full survey can be read here.  The survey did show that prices for tomatoes and lettuce declined, however, $0.19 and $0.18 respectively.

A judge in Boston, MA this week denied in part Bank of America’s request to dismiss a lawsuit which had been brought by homeowners who said they satisfied the requirements for a permanent modification, but Bank of America failed to honor those agreements.  The case is In re Bank of America Home Affordable Modification Program (HAMP) Contract Litigation, in the U.S. District Court for the District of Massachusetts (Boston), case # 10-md-02193.

Those homeowners who failed to obtain even a trial modification could not pursue the lawsuit any further against Bank of America, the Judge said in her opinion.  However, those homeowners who did obtain a trial modification and were entitled to the permanent modification could pursue the lawsuit against Bank of America because it was alleged that under the trial agreements, Bank of America was required to offer the permanent loan modifications to those homeowners who complied with the terms of the modification.

Several mortgage lenders must submit plans for revamping their foreclosure practices by July 13, 2011.  As Bloomberg reports, “The Department of Housing and Urban Development, the Justice Department and all 50 state attorneys general have been negotiating a separate settlement that may total more than $20 billion with the five largest U.S. mortgage servicers: Bank of America, JPMorgan, Wells Fargo, Citigroup and Ally Financial Inc. A final agreement, setting standards for servicing loans and processing foreclosures, may serve as a template for claims against the rest of the industry.”  The report can be read here.

The Federal Trade Commission (FTC) recently obtained a judgment against First Universal Lending and other defendants for allegedly deceiving distressed homeowners with phony claims that they would negotiate with lenders to modify their mortgages and make them more affordable.  The judgment amount is approximately $19 million and will allow the affected homeowners to receive a partial refund of money they paid for upfront costs for the modification.  According to the complaint, the company typically charged between $199.00 to upwards of $7,000.00 in up-front fees.  A court has also banned the company and the other defendants from “from the mortgage relief services business. It also permanently prohibits the defendants from misrepresenting material facts about any good or service, violating the Telemarketing Sales Rule, selling or using customers’ personal information, failing to properly dispose of customer information, and collecting payments from their customers.”  The settlement announcement can be seen here.  A copy of the settlement order can be obtained here.

The national unemployment rate ticked up to 9.2% for the month ending June 2011, according to the Bureau of Labor Statistics which released its monthly Employment Situation on July 8, 2011.  The total amount of jobs created in June 2011 overall was approximately 18,000.  The BLS also reduced the number of jobs created in May 2011 by almost half, from a previously reported 54,000 to 25,000.  The report can be found here.

Alabama’s unemployment rate as of May 2011 (the most recent data available) is 9.6%.  In the Birmingham-Hoover metro area, the unemployment rates are as follows: Jefferson County: 9.2%, Shelby County: 6.9%, St. Clair County: 8.6%, and Blount County: 8.7%.

The unemployment rate rose from 9.3% in April 2011 to 9.6% in May 2011.  One of the primary factors for the rise cited by the Department of Industrial Relations was the devastation caused by the April 27, 2011 tornadoes.  According to the report, May’s rate represents 206,809 unemployed persons, up from 199,749 in April.  Additionally, the 9.6% unemployment rate is slightly higher than May 2010′s rate of 9.5% (a year earlier).  The report can be read here.  A map of the counties in Alabama with their corresponding unemployment rates for May 2011 can be found here.

Shelby County:

Blount

Unemployment claims for the week ending July 2, 2011 remained high as 418,000 people filed first time unemployment claims.  Promisingly, this was a decrease of 14,000 from the previous week’s revised figure of 432,000.   The 4-week moving average was 424,750, a decrease of 3,000 from the previous week’s revised average of 427,750.  You can read the report here.