Current Events in August 2013

While the struggle between CBS and Time Warner Cable over license fees is an inconvenience for millions of consumers, it's turning into an attractive opportunity for Time Warner's competitors.

Meanwhile, in a gesture that gives new meaning to the word "token," Time Warner said it would give its customers free TV antennas so they can try to pull in a CBS signal while the dispute drags on. Of course, some of those customers just may discover the antenna works so well they don't need Time Warner anymore, but who cares about them anyway?

Verizon is the latest to take advantage of the situation, signing a three-year deal that will provide carriage of CBS stations to FiOS customers in New York, Los Angeles and Dallas, where about 3.5 million Time Warner subscribers have been unable to get CBS programming through their cable service since the dispute began.

CBS President Les Moonves said the deal snapped up by Verizon was "almost exactly the same" as the one rejected by Time Warner.

“We’ve reached this agreement in partnership with CBS for our customers, so that they may continue to enjoy CBS content on FiOS,” said Terry Denson, Vice President of Video Content and Strategy at Verizon. “Verizon continues to address areas of change where necessary in current policies to better reflect the interests of consumers.”

Streaming rights

The agreement allows CBS to retain its digital streaming rights, something that's been an issue in the Time Warner talks.  “FiOS TV will also continue to provide – free to the viewer – CBS programming via Verizon’s industry-leading video on demand services to all subscribers,” Moonves said in a statement.

In addition, CBS said the CBS Sports Network will "dramatically increase its distribution with FiOS." Separately, CBS and Verizon have an existing agreement for FiOS to carry Showtime Networks and Smithsonian that will continue in the years to come as well, the companies said.

CBS has also reached agreement for Dish Network to carry its programming and Radio Shack and other electronics retailers report growing demand for TV antennas while Aereo, which distributes broadcast TV over the Internet, has been quickly expanding the list of cities it serves, including many affected by the Time Warner dispute.

Banks and nonbanks just aren't getting it done when it comes to mortgage servicing and following federal laws. That's the conclusion drawn by a report  issued by the Consumer Financial Protection Bureau (CFPB).

“Our examinations of banks and nonbanks allow us to correct problems before more consumers are affected,” said CFPB Director Richard Cordray. “Today’s report highlights both the mortgage servicing problems throughout the industry and the challenges of making sure that nonbanks are following federal law. Fixing both is a priority for us.”

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB supervises depository institutions and credit unions with total assets of more than $10 billion, and their affiliates. It also has authority to supervise nonbanks regardless of size in certain specific markets: payday lenders, private education lenders, and mortgage companies including originators, brokers, and servicers. For other nonbank markets for consumer financial products or services, the CFPB has the authority to supervise “larger participants.”

The report is part of a series of supervision reports that the CFPB issues regularly. It highlights examination work completed between November 2012 and June 2013.

Mortgage servicing problems

Mortgage servicers are responsible for collecting payments from mortgage borrowers on behalf of loan owners. They also typically handle customer service, escrow accounts, collections, loan modifications and foreclosures. In supervising both bank and nonbank servicers, CFPB examiners have uncovered problems that can be harmful to consumers. These include:

Sloppy account transfers: The rights to manage a loan are frequently bought and sold among servicers. With these transfers among institutions, the CFPB discovered several risks that can cause consumers to miss payments, delay important processes, or affect the good standing of a mortgage borrower’s loan. For example, examiners found:

• Disorganized and unlabeled paperwork, including important loss mitigation documents

• Failures by mortgage servicers to tell consumers when the servicing of the loan is transferred to another company; and

• A lack of protocols related to the handling of key documents, such as trial modification agreements.

Poor payment processing: Servicers are responsible for processing loan payments and handling tax and insurance payments through escrow accounts. If they do not perform their duties correctly, it can result in extra costs and hassles for the consumer. In its exams, the CFPB found:

• Inadequate notice to borrowers of a change in address to send payments, resulting in late payments;

• Excessive delays in handling the cancellation of private mortgage insurance payments, resulting in late fees; and

• Property taxes being paid later than expected, resulting in borrowers’ inability to claim a tax deduction for the year they planned.

Loss mitigation mistakes: Servicers are also responsible for helping qualified struggling borrowers with alternative plans for repayments, if such plans are available. So when they fall short of their responsibilities, consumers can be sent to foreclosure unnecessarily. CFPB examiners discovered several problems, including:

• Inconsistent communications with borrowers, giving them conflicting instructions for loss mitigation processes;

• Inconsistent loss mitigation underwriting, waiving certain fees and interest charges for some borrowers but not others;

• Long application review periods, making the loss mitigation process especially hard on consumers whose accounts are also dual-tracked for foreclosure;

• Incomplete loan files, making it challenging for consumers to find out about their loan modification applications when they call the servicer for help;

• Poor procedures for requesting missing or incomplete information from consumers, making it difficult for consumers to provide the correct documentation; and

• Deceptive communications to borrowers about the status of loan modification applications, leading some consumers to faster foreclosure.

In all cases where the CFPB found mortgage servicing problems, examiners alerted the company to its concerns, specified necessary remedial measures, and, when appropriate, opened CFPB investigations for potential enforcement actions. Corrective measures included making sure that important papers were filed appropriately, that servicers improved their policies and procedures governing the handling of loans in loss mitigation, and that consumers were treated according to the law.

The CFPB has also directed servicers to engage in specific corrective actions appropriate to the circumstances, such as: reviewing loss mitigation decisions and related fees or charges to borrowers to determine whether any reimbursement was appropriate; conducting periodic testing to monitor areas of concern; and providing reports to the CFPB on their progress completing the corrective actions.

Nonbanks lack compliance management systems

The CFPB expects the companies it supervises -- regardless of size -- to have fully developed compliance management systems to ensure all federal consumer financial protection laws are followed.

Prior to the CFPB’s existence, many supervised nonbanks had not been subject to federal or even state examinations. CFPB examiners found that many nonbanks are more likely to lack robust compliance management systems. The investigation found that many nonbank institutions are:

• Missing a comprehensive consumer compliance program: The CFPB found that often individual branches of a business were looking out for relevant federal laws without an overarching system in place at the company. This creates a lack of consistency in following the laws across products and across locations. The result can be erratic treatment of consumer problems. It can also mean that root causes of regulatory violations go undetected.
• Lacking formal policies and procedures: Not having formal, written documents that both detail consumer compliance responsibilities and instruct employees on the appropriate methods for executing these responsibilities can lead to inconsistencies, sloppy recordkeeping, and ultimately, consumer harm because nobody at the institution is clearly responsible to make sure laws are being followed.
• Forgoing independent consumer compliance audits: Independent audits are a good way for a company to routinely conduct quality-control checks on its operations. A compliance audit program provides a board of directors or its designated committees with information about whether policies and standards are being implemented. Without such a program, it is difficult to recognize any significant deficiencies in an institution’s compliance management system.

Cars may be getting safer but could it be that drivers are getting more careless? That seems to be the message behind a new AAA survey that finds Americans are less likely to perceive a serious threat from dangerous driving behaviors such as drunk, aggressive or drowsy driving.

The study looked at four years of public surveys conducted by the AAA Foundation for Traffic Safety. The decreased concern is accompanied by an estimated 5.3 percent increase in annual traffic fatalities, totaling more than 34,000 in 2012. This is the first annual increase in seven years, according to the National Highway Traffic Safety Administration.

“Motorists may be growing more complacent about potential safety risks behind the wheel,” said Peter Kissinger, President and CEO of the AAA Foundation for Traffic Safety. “A ‘do as I say, not as I do’ attitude remains common with many motorists consistently admitting to engaging in the same dangerous behaviors for which they would condemn other drivers.”

Survey results

Survey results during the previous four years show decreasing concern for dangerous driving behaviors:

• The number of people who believe driving after drinking is a serious threat declined from a near universal 90 percent in 2009 to 69 percent in 2012.
• The number of people who consider drowsy driving a very serious threat declined from 71 percent in 2009 to 46 percent in 2012.
• The number of people who believe that texting or emailing while driving is a very serious threat declined from 87 percent in 2009 to 81 percent in 2012. The number of people who admit to texting while driving increased from 21 percent to 26 percent during the same period.
• The number of people who consider red-light running to be completely unacceptable declined from 77 percent in 2009 to 70 percent in 2012. More than one-third (38 percent) admitted to running a red light within the previous month.

“We have made great strides in recent years to reduce road deaths, but there are still too many needless fatalities caused by dangerous driving,” said Jake Nelson, AAA director of traffic safety advocacy and research. “It is clear that more must be done to address the dangers of drunk, aggressive and drowsy driving to stem this concerning trend.”

Someone dies on America’s roadways every 15 minutes.  Fatalities include drivers, passengers, pedestrians, cyclists and every other kind of road user. Car crashes affect young people disproportionately by killing more people aged 5-34 than any other cause of death.  More than 2.3 million people annually also suffer serious injuries from crashes.

Average rates for fixed mortgage rates (FRMs) shot to their highest levels of the year this week as the market focused on the the expectant release of the Federal Reserve's comments around taper timing of its bond purchase program.

According to Freddie Mac, the 30-year (FRM) averaged4.58% with an average 0.8 point for the week ending August 22, 2013, up from 18 basis points from last week's average of 4.40%. A year ago at this time, the 30-year FRM averaged 3.66%.

The 15-year FRM averaged 3.60% this week with an average 0.7 point, compared with last week when it averaged 3.44% and a year ago when it was 2.89%.

The average for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.21% with an average 0.5 point, versus 3.23% a week ago and 2.80% a year ago.

One-year Treasury-indexed ARMs averaged 2.67% with an average 0.5 point -- unchanged from last week. At this time last year, the 1-year ARM averaged 2.66%.

"Fixed mortgage rates continued to follow bond yields higher leading up to the August 21st release of the Federal Reserve monetary policy committee's minutes for July,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “In its July 30th and 31st meetings, the committee members were broadly comfortable with a plan to start reducing its bond purchases later this year, although a few emphasized the importance of being patient.”

Meeting participants acknowledged mortgage rate increases might restrain housing market activity, but several members expressed confidence the housing recovery would be resilient in the face of higher rates. Existing-home sales increased in July to the strongest pace since November 2009 and homebuilder confidence in August rose to its highest reading since November 2005. Both increases, Nothaft points out, occurred after mortgage rates had risen from their spring-time lows.

Bankrate mortgage survey

Fixed mortgage rates, as tracked by Bankrate.com, also were higher, with with the rate for the 30-year FRM climbing to the highest point in more than two years at 4.74%.

The average 15-year FRM also surged, rising to 3.75%, while the larger jumbo 30-year FRM hit 4.88%. ARMs were mostly higher, reaching levels not seen since April 2011. The popular 5-year ARM is now 3.69%, while the 7-year ARM stands at 4.04%.

As recently as May 1, the average 30-year fixed mortgage rate was 3.52%. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.74%, the monthly payment for the same size loan would be $1,042.09 -- a difference of almost $142 per month for anyone who waited.

Chicago's Northwestern Memorial Hospital negligently destroyed frozen sperm samples, costing dozens of men and women their chance to have children, a series of 40 lawsuit charges.

All of the 40 plaintiffs say they have medical conditions that threaten or have already destroyed their fertility. The frozen sperm represented their only chance to reproduce, Courthouse News Service reported.

"Three of the plaintiffs were minors at the time, the youngest was just 14 years old with a rare form of cancer," said attorney Matthew T. Jenkins in a statement. "Other plaintiffs include a 33-year-old man who has leukemia and was told that his radical chemotherapy treatments would likely make him infertile; a 26-year-old man who suffers from an illness that could render him infertile; and a 48-year-old man who had his sperm preserved because he too suffers from an illness that could render him infertile."

But in April 2012, the cryopreservation and storage procedure at the hospital failed, allowing the frozen specimens to melt, the suits charge. The plaintiffs claim the hospital "failed to adequately respond when it knew, or should have known, that its cryopreservation and storage system failed."

A Cook County judge has granted an emergency bill of discovery ordering Northwestern to turn over documents relating to the cryopreservation system, and permitting experts to inspect the storage facility, Jenkins said.

The hospital has acknowledged that the cryogenic storage tank "malfunctioned," and that a round-the-clock alarm system failed to alert employees of the failure, according to the Chicago Sun-Times.

"We deeply regret that this occurred, and understand how upsetting this can be to our patients," the foundation that operates the hospital said in the statement. 

The value of what is probably your largest asset continues to rise.

The Federal Housing Finance Agency (FHFA) says its House Price Index (HPI) was up was up 0.7% in June, and that prices in the second quarter were up 7.2% from the same period a year earlier. The HPI is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac.

“The housing market experienced one of its strongest quarters since the boom in the middle of the last decade,” said FHFA Principal Economist Andrew Leventis.

Of the nine census divisions, the Pacific division experienced the strongest increase in the latest quarter, posting a 4.6% increase and a 16.2% increase since last year. House prices were weakest in the East South Central division, where prices increased 0.9% from the prior quarter.

The full report is available on the FHFA website.

Jobless claims

Separately, the government reported first time applications for state jobless benefits rose by 13,000 in the week ending August 17 -- to a seasonally adjusted total of 336,000.

Analysts surveyed by Briefing.com, who were projecting a larger increase, say the current level of suggests a gain in payrolls of about 200,000 per month.

The 4-week moving average, which is less volatile and considered a more accurate picture of the labor market, was down 2,250 to 330,500. During the past four weeks, the moving average has dropped to its lowest level since November 2007, which analysts take as a sign that labor market conditions are improving.

The complete weekly jobless claims report can be found on the Labor Department website

Charging illegal upfront fees and deceiving consumers are among the charges facing Morgan Drexen, Inc., in a lawsuit filed by the Consumer Financial Protection Bureau (CFPB).

The agency accuses the Nevada corporation of falsely claiming that it does not charge consumers upfront fees for debt-relief services and falsely representing to consumers that they will become debt free in months if they work with Morgan Drexen.

“This company took advantage of people who were struggling,” said CFPB Director Richard Cordray. “The company charged consumers illegal fees and deceived them about the services provided. We will hold them accountable for these actions.”

Morgan Drexen is a nationwide debt-settlement company that was founded by its its president and chief executive officer, Walter Ledda, in 2007. Ledda, who is also named in the suit, maintains a 93% stake in the company and plays an active role in the company’s business strategies and practices.

Rules violations alleged

The CFPB contends the defendants have violated the Telemarketing Sales Rule (TSR) and the Dodd-Frank Wall Street Reform and Consumer Protection Act. The TSR prohibits deception in telemarketing and generally bars debt-relief providers from charging a fee for any debt-relief service until it has actually settled, reduced, or otherwise altered the terms of at least one of the consumer’s debts. Dodd-Frank prohibits deceptive acts or practices in the consumer financial marketplace.

When consumers sign up for Morgan Drexen’s services, the company presents them with two contracts -- one for debt-settlement services, and the other for bankruptcy-related services. Based on its investigation, however, CFPB believes that little to no bankruptcy work is actually performed for consumers, who are are nevertheless charged fees.

According to the bureau, the bankruptcy-related contract is a ruse designed to disguise the illegal upfront fees the company is charging for debt-relief services as bankruptcy-related fees. The investigation has revealed that, since October 2010, more than 22,000 Morgan Drexen consumers have enrolled in this program and have been charged millions of dollars in upfront fees for debt-relief services.

Misleading claims

The CFPB also claims Morgan Drexen has violated both the Dodd-Frank Act and the TSR by making the following false and misleading claims in its advertisements:

• No upfront fees: The company claims consumers will not pay upfront fees for debt-relief services, when, in reality, they typically pay hundreds, if not thousands, of dollars in upfront fees.
• Debt free in months: Morgan Drexen says consumers will be “debt free in months” when, in fact, only a tiny fraction of consumers who work with the company ever become debt free.

Through the lawsuit, the CFPB seeks to stop the unlawful practices of Morgan Drexen and Ledda. The bureau has asked the court to impose penalties on the company and Ledda for their conduct and require that restitution be paid to consumers who have been harmed.

One aspect of our consumer society is that we are always buying things. Some things, like food and beverages, we consume and replace. But other things are possessions that tend to accumulate.

Every once in a while, when the clutter gets too great, we gather up things to take to the thrift store or hold a yard sale. At least, that's what most people do.

But some just can't seem to part with something once they've owned it. The possessions, unused and often forgotten, just pile up. These people eventually are surrounded by their “things,” to the point that friends and family members can't help but notice.

Real and serious

These people are called “hoarders,” and psychologists say it's a very real and serious emotional impairment.

“Hoarding, also called compulsive hoarding and compulsive hoarding syndrome, may be a symptom of obsessive-compulsive disorder (OCD),” the Mayo Clinic says on its website. “But many people who hoard don't have other OCD-related symptoms.” 

What is obvious to everyone else is often lost on the person who hoards. If they don't see it as a problem it makes changing their behavior all the more difficult. But doctors say treatment can help hoarders to live safer, more enjoyable lives.

What problem?

But what's behind this compulsive behavior? Because hoarders don't really consider it a problem, it's hard for clinicians to get a lot of insight into what's going on. A 2007 study found some common symptoms.

For example, hoarders might collect things others might consider worthless, such as old newspapers and junk mail. They might collect consumer items that no longer work and have piles of clothes they could not possibly wear.

The home is likely so full of clutter that large areas of it cannot be used for their intended purpose. Kitchens may be crammed with so much stuff they aren't usable for food preparation. Bathtubs may be so filled with items  the hoarder simply doesn't bathe.

Buried Alive

While they don't recognize a problem, hoarders might feel embarrassed by the clutter and not allow visitors, closing themselves off to social interaction. The condition of common enough that the TLC cable network airs a series called “Hoarding: Buried Alive.” The series showcases bizarre examples of hoarding and tries to explore the psychology behind it.

The International OCD Foundation has set up a special Hoarding Center to deal with the problem. The Center provides help for hoarders and their families, including links to self-help and support groups, therapy and a treatment provider list. 

The Foundation notes that hoarding often begins with too much shopping. It also reports that roughly one in two hoarders excessively correct free things.

The problem has become so widespread that a national cleaning service has begun specializing in helping hoarders and their families clean up. The company, Address Our Mess, has developed a series of interactive guides to help hoarders get started on their road to recovery. Their latest publication entitled Impacts of Hoarding Cleaning for Hoarders and their Helpers, outlines the stressors associated with the hoarding condition and the ways in which finding the right expert can help relieve those stressors.

While it acknowledges that it is no substitute for therapy, the company says calling in a specialized cleaning service can be a first step on the road to recovery. For example, people living among clutter may simply feel overwhelmed with where to begin and how to follow through.

“Hoarding specialists possess the expertise, equipment, patience, and knowledge to get the job done right the very first time,” the company says.

Increasingly, when America hits the road, pets go along for the ride. While consumers have always traveled with their dogs and cats, finding a hotel to accommodate everyone is now a lot easier than it once was.

Pet-friendly is now pretty much the rule, especially when it comes to popularly-priced chains. Motel 6 claims to be the first to put out the welcome mat for pets. They still welcome pets and don't charge an extra fee.

Red Roof Inn was also an early pioneer when it comes to pet-friendliness. The chain operates 435 hotels, coast-to-coast, where pets stay free. LaQuinta Inns & Suites and Kimpton Hotels also let pets stay without any kind of deposit or extra fee.

Check before you leave

Finding out whether your pet can stay for free may be the first thing you should do when selecting a hotel. Some hotels will let your dog or cat stay but will charge extra.

Besides waiving a pet fee, pet-friendly hotels are sometimes known to offer some amenities strictly for their four-legged guests. For example, some hotels will offer a pet bed, along with food and water bowls. Some have been known to leave a doggie treat in the room, much like they might leave a mint on the pillow for the human guests.

Still not that easy

But despite the recent changes in the hospitality industry, many pet owners say they still have difficulty finding pet-friendly lodging. In a survey of more than 1,100 respondents, TripAdvisor found that 51% of pet owners say they left their pet at home on the last trip because it was difficult to find a pet-friendly accommodation. Seventeen percent said it was “expensive” to take a pet along on a trip.

“While most pet owners are passionate about their furry companions and prefer to take them along for the ride, they feel like they’re barking up the wrong tree when it comes to finding pet-friendly properties,” said Brooke Ferencsik, director of communications at TripAdvisor. “TripAdvisor travelers have helped throw pet owners a bone by identifying some great animal-friendly accommodations, with many of the best in show on the West Coast.”

While the chains mentioned above welcome pets and waive any extra fees, a select number of boutique properties also go out of their way to make pets feel at home. Most, however, charge extra for pets and some of these fees may be quite high. Trip Advisor rated them and came up with what it says are the top 10 in the U.S.

Putting on the dog

1. Beachside Village Resort, Lauderdale by the Sea, Florida – Average Nightly Rate: $205+

The resort offers standard rooms, studios or suites by the ocean. The hotel will even walk your dog for you, upon request. The hotel welcomes pets weighing 35 pounds or less, but it's not free. There is a fee of $25 per night for pets.

2. Olea Hotel, Glen Ellen, California – Average Nightly Rate: $260+

This property in Sonoma County allows pets in the Hillside Queen Rooms and dogs will even receive a special welcome basket which includes treats, bowls and towels. It charges a nightly pet fee of $25.

3. Bardessono, Yountville, California – Average Nightly Rate: $650+

This boutique hotel says it pampers both its human and pet guests, featuring organic cotton bed linens and hand-crafted bath products. Pups will be given plush dog beds and bowls to enjoy their supper. Just as the cost for humans is a bit pricey, so is the pet fee – $150 a night.

4. Inn of the Five Graces, Santa Fe, New Mexico – Average Nightly Rate: $650+

This is another upscale pet-friendly hotel in a historic neighborhood. Five rooms are set aside for guests traveling with pets weighing 50 pounds or less. The nightly pet fee is $75.

5. Five Pine Lodge & Spa, Sisters, Oregon – Average Nightly Rate: $235+

Three cabins on this property are reserved for pets and their owners. The rooms are plush for the humans' enjoyment while nearby hiking trails offer a romp in the woods for traveling dogs, to burn off excess energy. There is a fee of $25 per night for pets.

6. The Grand Del Mar, San Diego, California – Average Nightly Rate: $595+

This Mediterranean-style property rolls out the welcome mat for pets, providing their own beds, bowls and toys. The dogs have to be small, however – 25 pounds or less. The one-time pet fee is $100.

7. Sunglow Ranch – Arizona Guest Ranch and Resort, Pearce, Arizona – Average Nightly Rate: $299+

Situated on 475 acres, pets might enjoy this resort as much as humans. Again, pets need to be small, weighing 25 pounds or less. There is a fee of $25 per night for pets.

8. Allison Inn & Spa, Newberg, Oregon – Average Nightly Rate: $330+

Animals are welcome in terrace-level rooms where dogs will be pampered with treats and kibble. There is a one-time fee of $50 for pets.

9. Low-Key Hideaway, Cedar Key, Florida – Average Nightly Rate: $90+

The least expensive hotel on Trip Advisor's list, Low-Key Hideaway limits bookings to adults but allows up to two “well-behaved” pets. The pet fee is also among the lowest – $10 per night.

1o. The Oxford Hotel, Bend, Oregon – Average Nightly Rate: $299+

This boutique hotel says it strives to provide a memorable stay for travelers and pets alike. It offers pet amenities like a bed, travel-size dog bowls, pet salve, organic dog treats, and a map of nearby parks and trails. There is a one-time fee of $55 for the pet package.

First it was Google with its idea of floating antenna-equipped balloons over impoverished areas of the world. The balloons, part of something interestingly called "Project Loon," would beam down the Internet to the huddled masses below.

Now it's Mark Zuckerberg of Facebook fame and fortune. He and a small group of philanthropic companies like Samsung, Qualcomm and Nokia have a plan labeled Internet.org to extend broadband coverage -- and smartphone access -- to those same impoverished areas.

"Everything Facebook has done has been about giving all people around the world the power to connect,” Zuckerberg said in prepared remarks yesterday. “There are huge barriers in developing countries to connecting and joining the knowledge economy. Internet.org brings together a global partnership that will work to overcome these challenges, including making internet access available to those who cannot currently afford it.”

After all, studies have shown that Internet access improves the economy, creates jobs and boosts the fates of pornographers, slave traders and terrorists, so these are probably really great ideas.

Bill Gates doesn't think much of these high-flying ideas though. Asked about the Google balloons a few weeks ago, he said:  "When you're dying of malaria, I suppose you'll look up and see that balloon, and I'm not sure how it'll help you."

Gates, who with his wife Melinda, has contributed billions of dollars to rid developing nations of malaria, found the idea disappointing. "When a kid gets diarrhea, no, there's no website that relieves that," he said.

Billions of new friends

Zuckerberg's idea also is getting a chilly reception in some quarters. While it would probably add billions of "friends" to Facebook and sell billions of Nokia phones, it's not immediately apparent how it solves the severe health crisis that holds impoverished nations back. 

It's not entirely without redeeming benefits though. The National Security Agency (NSA) would no doubt be delighted to have billions of more people to spy on, said Erik Sass, who writes The Social Graf blog at MediaPost. 

"Among those billions of currently unconnected folks are doubtless some very angry people who will use the Internet to connect with likeminded individuals and possibly join a terrorist organization -- and the NSA will be watching," he said. The problem, Sass said, is that "NSA’s process for doing so is, shall we say, 'data intensive,' as you have to collect a lot of information on a lot of people to catch the ones you’re looking for.

He recalled the recent statement of the NSA director, General Keith Alexander: “You need the haystack to find the needle.” Zuckerberg and Google would be making the haystack a lot bigger.

Here's the syrupy video that the Internet.org promoters released yesterday:

Pandora may be feeling about the way Borders did a few years ago, although it insists things are just fine, thanks.

Apple iTunes Radio is about to take to the airwaves, or whatever you want to call the broadband universe.

There'll be no shortage of commercials. Apple has a handful of top-drawer sponsors ready to go, including McDonald's, Nissan, Pepsi and Procter & Gamble.

So is Pandora worried? Quite the opposite, if you can believe Chief Financial Officer Mike Herring, who told analysts recently that iTunes Radio will be good for Pandora and other streaming music services. 

It will bolster the exposure of digital radio and accelerate the move to it from traditional broadcast radio, he said. He recalled the entry of iHeartRadio from Clear Channel, the nation's biggest radio chain, a year or two ago.

"When iHeartRadio launched a couple years ago, we had the same questions," he said. "We've gone from 50 percent market share to 70 percent market share, and they've stayed flat. ... We won't do much different."

YouTube-NFL

Google has some big dreams as well. It's holding formal talks with the National Football League about broadcasting NFL games on YouTube.

Google would get the NFL's "Sunday Ticket" package, which consists of all the out-of-town games. DirecTV currently has that package at a reported price of $1 billion a year, but the deal expires next year so potential bidders are starting to put on their helmets and shoulder pads. 

By nearly any measure, Windows 8 has been a bust. Its truly bizarre desktop has gotten the most criticism but unnoticed until now has been the performance of the free antivirus software that is included in the operating system.

Now that someone has taken the trouble to put the system, called Microsoft Defender, through its paces, you can add it to the list of Windows 8 shortcomings. 

Independent German lab AV-Test evaluated 28 antivirus products, grading them for protection, repair and usability -- each worth six points for a possible total of 18 points.

"Bitdefender, Kaspersky Lab and Symantec lead the field while the protection packages from Avast, F-Secure and GData share fourth place," AV-Test said. 

Who was in last place? Yep, Windows Defender, which was five points behind everyone else.

Nevertheless, AV-Test says its tests at least prove that Windows 8 can be secured, as long as the user is willing to pay for an external security program.  

Malware results

When it comes to malware, the results were similar. 

"The suites from Bitdefender, F-Secure and Kaspersky all did the best job in this category, achieving detection rates of 100%, while the best free programs, namely those from Avast and AVG, were only able to make it to eighth and twelfth place respectively," said AV-Test. "The Windows Defender provided by Microsoft in its operating system set a very low benchmark value with a detection rate of just 79%."

AV-Test also confirmed what no one likes to admit -- namely, that stopping malware comes at the cost of impaired system performance.

"Although the best programs in the 'Protection' category also achieved excellent results in this 'System Load' category, none of them were able to score the maximum total of six points," AV-Test said. "This test category is proof that high security comes at the expense of a certain amount of system performance."

On average, the top 10 products earned an average of 4.0 points (out of 6.0) for system load, while the top-ranked product, from Bitdefender, earned 5.2.

What to do 

The takeaway for consumers is pretty obvious. If you're going to run any version of Windows, you need a strong antivirus and malware protection software suite. Any of the top three named above should do the trick.

Don't want to buy antivirus programs? OK, fine. That leaves you with these options:

• Get a Mac. Although Macs are not immune to viruses and malware, they are much more resistant than Windows and also are not attacked as often.
• Get a Chromebook. Google's Chromebook relieves you of having to worry about security. It also relieves you of having to buy Microsoft Office, since it works with Google's office suite, which runs in the cloud and is, we should mention, free.
• Switch to Linux. The Chromebook locks you into Google and doesn't give you the opportunity to run programs from your hard drive. If this matters to you, or if you just like to play around under the hood now and then, download a copy of Linux Mint, the best desktop program out there bar none. It's secure, free and rock solid and comes with its own suite of office programs, combining the benefits of the Mac and the Chromebook.

It's hard to keep the market for previously-owned homes down.

After declining to an annual rate of 5.06 million in June, sales of existing homes -- which include single-family homes, townhomes, condominiums and co-ops -- shot up 6.5% last month to a seasonally adjusted annual rate of 5.39 million.

Figures from the National Association of Realtors (NAR) show sales are 17.2% above the 4.60 million-unit pace of a year ago and have remained above year-ago levels for 25 months.

Impact of interest rates

Changes in affordability are affecting the market -- positively -- for the time being. “Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines,” said Lawrence Yun, NAR chief economist, adding. “The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.”

Despite higher mortgage interest rates, Yun identified compensating factors that can sustain a continued recovery. “Although housing affordability conditions will become less attractive, jobs are being added to the economy, and mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage (FRM) rose to 4.37% in July from 4.07% in June, and is the highest since July 2011 when it was 4.55%; the rate was 3.55% in July of last year.

Home values increase

The NAR report contained more good news, at least from a seller's standpoint, as the median price maintained its series of double-digit year-over-year increases.

The national median existing-home price for all housing types was $213,500 in July, which is 13.7% above July 2012. This marks 17 consecutive months of year-over-year price increases, which last occurred from January 2005 to May 2006.

The median price has risen at double-digit rates for the past eight months, and is now just 7.3% below the record of $230,400 in July 2006. Two years ago, the median price was 25.7% below the peak.

Where they're selling

Regionally, existing-home sales in the Northeast surged 12.7% to an annual rate of 710,000 in July and are 20.3% above July 2012. The median price in the Northeast was $271,200, up 6.7% from a year ago.

Existing-home sales in the Midwest rose 5.8% to a pace of 1.28 million, and are 20.8% higher than a year ago. The median price in the Midwest was $168,300 -- 9.5% percent above July 2012.

In the South, existing-home sales increased 5.0% to an annual level of 2.11 million in July and are 16.6% above July 2012. The median price in the South was $183,400, up 13.6% from a year ago.

Sales of previously-owned homes rose 6.6% in the West to a pace of 1.29 million in July and are 13.2% higher than a year ago. The median price in the West, driven the most by a supply imbalance, was $287,500, which is 19.2% above July 2012.

Mortgage applications

Even as sales of previously owned homes were on the rise in July, mortgage applications were down during the week ending August 16.

Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey show applications fell 4.6% from the previous week. The Refinance Index decreased 8% from the previous week and has plunged 62.1% from the recent peak reached during the week of May 3.

Once again, interest rates seem to be a major factor.

The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) increased to 4.74% from 4.57% for 80% loan-to-value (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year FRMs backed by the FHA jumped to 4.40$ from 4.25% for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year FRMs, popular in refinancing, rose to 3.71% from 3.60% for 80% LTV loans. The effective rate increased from last week.

It's getting harder and harder for students to get into the college of their choice, not to mention the difficulty of paying $50,000 or more in tuition and other costs at a top-rated school.

One reason it's hard to gain admission to top schools is that they're admitting increasing numbers of international students. Why? Well, sure, they spice the place up but more importantly, at state schools they pay more than in-state students and are thus more lucrative while occupying only as much space as an American.

So why not turn the tables and export yourself? Writing in the Los Angeles Times today, Aaron Rosen, a lecturer in theology and the arts at King's College London, says it's gotten easier for American students to win admission to European Union schools, as the value of American students -- both cultural and fiscal -- has become more widely recognized.

Easier to apply

Rosen writes that British universities have made it particularly easy to apply and, while Oxford and Cambridge are still in their own universe, other top-ranked British universities now accept advanced placement tests or a combination of SATs and SAT subject exams, along with a standardized national application form.

Besides relieving some of the pressure on high school students to bulk up their résumé, Rosen notes that European universities tend to be considerably less expensive than their American cousins. He says American students would pay about $25,000 less per year to study at a British university that's comparable to a $50,000-$60,000 American school.

And, students who study abroad are still eligible for U.S. student loans, he notes. 

But Rosen saves the best part for last: Most British bachelor's degrees require only three years instead of four, saving both time and money.

To relieve any lingering apprehension, it's worth noting -- although Rosen was too polite to do so -- that the Brits are increasingly adopting the Yankee habit of drinking their beer cold. Or at least chilled.

Summertime will be over in a little over a month, which means now is a fine time to get outside and participate in all of the sports you like to play.

Of course you can still enjoy a lot of sports during the fall and winter months, but there's something about warm and sunny weather that can give you a lot of energy. In addition, it's just nicer to spend time outdoors when the sun is shining. 

And though most people who are physically active don't rely on gadgets to assist them, some folks don't mind buying an electronic or two. Plus, some gadgets are just fun to have when you're playing a sport. At times they can make playing something that much more fun. 

Take the GameDay Basketball Scoreboard for $34.95 on Amazon for example. It attaches to the pole of your driveway basketball hoop so you can keep score from 0 to 99. And it has a countdown clock so kids don't have to yell, "3, 2, 1" when they're pretending to make a last-second shot.

Players can either set the clock for a six-minute game, a 12-minute game or an 18-minute game, and it keeps score for games like Horse, Pig and free throw contests. 

Plus, the scoreboard comes with a referee button that you can hit when you get fouled. Once you hit the button, a ref's voice will yell out a call, bringing a little NBA reality to a driveway pickup game. But the younger ones will probably use this feature more than adults will.

Camera snorkel

And for amateur divers, there's the hands-free Liquid Image Explorer Series Mask for $98.95, on the site Scuba.com. The half-camera half-snorkel lets you take stills and videos underwater up to 15-feet deep, and it comes with a USB cable so you can watch the footage on TV.

The makers of the camera say it can hold more than 1,000 photos and can capture about 40 minutes of video per 1GB of memory.

But the main thing folks will probably want to know is if the camera takes good photos and videos. Here's what one user had to say:

"The pictures taken from the camera are decent (and some were great) and the videos taken provide good memories," the user wrote.

"I suggest taking 30 second or longer videos. The film camera pictures were grainer and had a lower percentage worth saving. Before using the mask in the water, I would tinker around with the buttons so you know what you're hitting so you can snap away underwater."

"But keep in mind also that it's digital, so snap away to your heart's content, and then go back to the surface and make sure you're on the setting you want," wrote the user.

Wet balls

Now fortunately, there are several cameras on the market that work well in water, but you can't say the same thing about tennis balls. Once they're wet, they're pretty much useless until they're able to dry. And even then they can remain heavy and lose a lot of bounce.

So to help speed up the drying process, you can look into the Tennis Ball Dryer, made in England. It dries your tennis balls in a few hours and restores them back to almost new, saving you money and the trouble of buying new tennis balls every time they get wet.

The dryer comes in the form of a small carrying strap with four tennis ball compartments, and the company says it's created a special 3-layer drying system that extracts moisture from each ball. 

And the carrying bag has a built-in net measure so you can make sure the height of the net is accurate. And the company says it has a cooling agent inside, so you can store drinks and keep them chilled.

The Tennis Ball Dryer goes for about £15, which is a little over $23 at the moment, and the shipping will cost you an additional $10 or so, which isn't that bad for an overseas mailing.

So before the weather gets a little cooler and tennis courts and golf courses get a little less enticing, you might want to look into a few of these gadgets. They just might make your sport or activity a little more enjoyable. 

Consumers whose cell phone bills were allegedly crammed by Jesta Digital are in for a refund. In addition to the refunds, Jesta -- which also does business as Jamster -- will pay $1.2 million to the Federal Trade Commission (FTC).

The commission’s complaint claims the global mobile marketer also ran phony virus-scan ads on consumers’ Android mobile devices while they played the Angry Birds mobile app. The ads, which falsely claimed that a virus was detected on the consumer’s mobile device, incorporated an image of a robot designed to look similar to the Android operating system’s robot logo:

When consumers clicked on the ads, Jesta presented them with a series of screens or landing pages that included bold and prominent language and visuals about protecting Android mobile devices from viruses. While a screen contained a subscriber button, the FTC maintains that if consumers clicked anywhere on the screens or landing pages, Jesta charged them $9.99 per month directly on their mobile bill for ringtones and other mobile content.

If consumers actually attempted to subscribe and download Jesta’s so-called anti-virus software to their mobile devices, the download often failed, according to the FTC complaint. Jesta’s internal emails quoted in the FTC’s complaint are particularly illustrative. In one email, a Jesta official was “anxious to move [Jesta’s] business out of being a scam and more into a valued service.”

Novel billing method

Jesta charged unsuspecting consumers through a novel, little-used billing method known as Wireless Access Protocol, or WAP, billing. WAP billing captures a consumer’s mobile phone number from the mobile device, which is used to place charges on their mobile phone bill without the need to obtain the information manually from the consumer.

Under the terms of the proposed settlement, Jesta is prohibited from making deceptive statements about viruses and anti-virus software, the cost of goods or services, or the conditions of a purchase. Jesta must also receive express verifiable authorization from a consumer before placing any charges on a consumer’s mobile phone bill.

Refunds ordered

Jesta is required to automatically provide full refunds to consumers who were billed between Dec. 8, 2011, and the date of entry of the order for any good or service that involved the company claiming the consumer’s device was infected with malware or that the Jesta would provide purchasers with software to protect their mobile device from malware.

For those consumers Jesta charged between Aug. 1 and Dec. 7, 2011, under short code 75555 (which includes the marketing campaign challenged in the complaint), Jesta is required to notify those consumers of their ability to obtain a refund. Consumers will have to contact Jesta at 866-856-5267 or by e-mail at info@jamster.com and make a refund request. Jesta is obligated to pay a refund to consumers who did not use the service offered by Jesta or where the charges were incurred by a child under the age of 18.

In addition to providing timely refunds directly to consumers, Jesta will pay $1.2 million directly to the Commission.

Consumers with questions about the case or the refund process may contact the FTC for more information at 202-326-3523.

Jack Rabbit Inc., has launched a nationwide recall of one lot of its dietary supplement product sold under the name, Jack Rabbit.

The product was found to contain Sildenafil and Tadalafil, active ingredients of FDA-approved drugs for erectile dysfunction (ED), making Jack Rabbit pack dietary supplement an unapproved drug. No illnesses have been reported to the company to date in connection with this product.

Jack Rabbit Pack, marketed as a dietary supplement for sexual “enhancement,” is packaged in 4-count blister packs and distributed online and through retail stores nationwide.

Customers who have this product in their possession should stop using it immediately and return any unused product to the point of purchase or email Jack Rabbit, Inc. at JackRabbit4pack.com Monday-Friday, 9 am to 5 pm EDT for a return address.

It's time to get another car. You have your eye on a new one or a late-model used car to replace your current set of wheels. First, however, you have to do something with the car you're driving.

If you are buying from a dealer you could trade it in, but it's generally acknowledged that you will get more for it in a private sale. So you wash it, detail it and place an ad on Craigslist.

But is that all there is to it? There seems to be plenty of advice for consumers who are buying a car but very little for those who are trying to sell one.

Get your ducks in a row

Before placing your ad, the first thing you should do is gather up all the information and paperwork you have on your car. The title is most important, but after that any service records and any paperwork you got from the dealer when you purchased it will prove helpful.

If you purchased the car new, Kelly Blue Book (KBB) says having the car's original window sticker will be valuable. It will show the exact trim level of the car and all the optional equipment.

You paid extra for those options when you bought the car and you should get something in return when you sell. If you held onto service records and receipts, they can also be a selling point.

"These days, regular oil changes are an even better indication of good upkeep than tune-ups," said Dan Ingle, KBB's Vice President of Vehicle Valuations and Industry Products. "If you changed your oil every 3,000-8,000 miles, in keeping with the manufacturer's recommendations, that's a good signal to a buyer that the car has been cared for."

If you didn't hold onto those service records, but have used the same service center or repair shop for your regular maintenance, you may be in luck. Chances are they can print out copies of your records for you.

Know the market

To save time during the sales process, know the real market value of your car before you put it up for sale. If you have over-priced it you are likely to spend a lot of time showing it to would-be buyers who won't call you back.

Don't describe it as in “excellent condition” if the body has a dent or two and there's a faded stain on the back seat. If you have a hard time being objective, ask your mechanic for an assessment.

Before pricing the car you should have a feel for the used car market in your area. Check to see what cars like yours are selling for. Thanks to the Internet, that's fairly easy to do now.

According to Edmunds.com, the automotive site, there are a few factors in the market that usually remain constant. For example, there's usually a demand for boring family sedans. There are lots of families and, these days especially, they are usually looking for inexpensive, basic transportation.

On the other hand, if you have a convertible, don't try to sell it in the dead of winter. It's just common sense. But the first beautiful spring day might be the ideal time to run your ad.

Online pricing help

Both Edmunds and KBB have areas on their websites where you can enter the description of your car and get an estimated value. Edmunds breaks it down three ways: what a dealer is likely to give you on a trade-in, what the estimated retail value would be if the dealer were selling it, and what the final price is likely to be in a private party sale.

In a private sale – consumer to consumer – the buyer is expecting to pay less than they would at a used car dealer. Remember that few buyers will offer the asking price, so if you hope to get $12,000 for your car you should price it higher – perhaps $13,500.

Not long ago the best way to sell a used car was to place a classified ad in the local newspaper. Today, the Internet is most likely going to be the fastest, cheapest and most direct way.

In the case of Craigslist, there is no cost and the site has proved effective in moving all types of merchandise, including cars and trucks. AutoTrader.com charges a fee but is also a popular way to buy and sell vehicles.

More competition

Juan Flores, director of operations for the Trade-In Marketplace at AutoTrader.com, foresees a rising trend of used car sales by owners.

"New vehicle retail sales reached double-digit gains for both June and July when compared to the same time last year, and this increase in demand for new vehicles translates into more people who need to dispose of their current vehicles,” he said.

The Trade-In Marketplace is another way consumers can sell their cars. According to AutoTrader, it enables consumers to get an instant offer on their used cars, sight unseen, and those offers are backed by AutoTrader.com. KBB, Edmunds and some other automotive sites also have ways to market your car directly to consumers.

The offers generated through these interfaces are usually based on specific parameters, including documented data about both the make, model year, trim level and the specific vehicle.