BANKING
Chase won’t give student loans
JPMorgan Chase & Co. is exiting the student loan business, saying it doesn’t see meaningful growth in the private market for education loans.
A spokeswoman said the New York lender with Akron operations will stop accepting student loan applications after Oct. 12. The move is the latest step by the bank to scale back its role in student lending.
In the spring of 2012, the bank stopped making student loans to borrowers who weren’t already Chase customers.
Chase made $200 million in student loans last year, down from $6.9 billion in 2008.
The bank said that families are increasingly relying on government-backed student loans.
REAL ESTATE
U.S. mortgage rates increase
Mortgage rates climbed close to a two-year high in the last week, increasing borrowing costs as the housing recovery cools.
The average rate for a 30-year fixed mortgage increased to 4.57 percent this week from 4.51 percent, mortgage guarantor Freddie Mac said. The average 15-year rate rose to 3.59 percent from 3.54 percent.
A jump in the 30-year rate from a near-record low of 3.35 percent in May has cut into affordability and pushed some would-be home buyers out of the market. Applications for home-purchase loans plunged 15 percent in the past four months, according to data from the Mortgage Bankers Association released Wednesday.
In a survey released Wednesday by Redfin, a Seattle brokerage, 63 percent of potential buyers said higher mortgage rates are making it harder for them to afford a home. While low inventory was the most common concern for buyers, rising borrowing costs was the second-biggest, according to the poll of 1,722 people.
TECHNOLOGY
PayPal updating mobile app
PayPal is updating its mobile app program, adding features such as the ability to place an order ahead of time and pay with it while at a restaurant table.
The move comes as eBay Inc.’s subsidiary works to expand beyond processing payments for online purchases. It’s been trying to service transactions at stores.
The free app became available Thursday for iPhones and Android phones. It includes a feature called “Shop.” With it, people can find nearby stores and restaurants that take PayPal payments.
AUTO INDUSTRY
Hyundai reaches labor deal
Hyundai reached a preliminary agreement with its South Korean union to raise wages, ending a strike that’s resulted in an estimated $910 million in lost output.
Under the agreement, which is subject to a vote by the carmaker’s 46,000 union members on Monday, the company will raise the average base salary by 5.1 percent. The automaker also agreed to pay a one-time bonus equivalent to 3½ months of wages plus a sum of about $4,550.
Workers have staged partial walkouts since Aug. 20, causing what Hyundai estimates to be more than 50,000 vehicles in lost production. South Korea’s largest automaker, which has seen profit fall for three straight quarters, is grappling with increased competition as a weaker yen in foreign currency exchange gives Japanese carmakers an edge in the U.S.
The union refused extra work for 13 weekends beginning March 9, demanding higher compensation on those shifts.
ECONOMY
U.S. factory orders fall in July
Orders to factories fell in July by the sharpest amount in four months, held back by weaker demand for commercial aircraft and heavy machinery. The Commerce Department said factory orders dropped 2.4 percent in July compared with June.
Orders for core capital goods, a category viewed as a proxy for business investment spending, fell 4 percent.
Compiled from staff and wire reports