Pierce County has highest percentage of so-called "high cost" mortgages in the state.

Thirty-one percent of all mortgages originated in Pierce County in 2006 were considered "high-cost," according to a recent report by the Washington Budget and Policy Center.

High-cost mortgages are defined by the Federal Reserve as being a mortgage with an annual percentage rate or APR that is much higher than a treasury security of comparable maturity. The APR reflects the total cost of a loan including interest and fees.

The loans likely include an adjustable interest rate, fees and other hidden costs, said Jeff Chapman, the center's research director and author of the report.

The report notes that the effect on a household's finances of having a high-cost mortgage can be significant.

"The cost of a $230,000 mortgage can easily be $600 higher per month, or over $200,000 over the course of a 30-year loan," according to the report.

"In the middle of the current housing crisis, having a high-cost mortgage also suggests a higher likelihood of foreclosure," the report states.

The budget and policy center is a not-for-profit organization focused on researching and analyzing state fiscal issues.

It's report, "The High Cost of Subprime Lending in Washington State," reveals that African-American and Hispanic homeowners and homeowners in lower income neighborhoods were most likely to pay a higher premium for their mortgage.

The report also forecasts that Washington will continue to feel the effects of the national housing crisis for the next few years.

The state has higher rates of adjustable rate mortgages expected to reset in the next year and higher rates of prepayment penalties than nearly every other state.

To read the full report, go here.

European Aeronautic Defense & Space (EADS), parent of Boeing rival Airbus, today reported 2008 profits of 1.57 billion Euros.

That profit came despite major problems with the company's A400M military airlifter.

EADS took a charge of 704 million Euros or $894 million on that program. The four-engine military aircraft has had major problems with its engines and other systems. Some outside observers say the program could be as much as four years behind schedule.

EADS revenues increased by 11 percent to 43.3 billion Euros which its order book grew 18 percent to 400 bullion Euros.

Boeing's oft-postponed 787 Dreamliner first flight remains on schedule for the first half of this year, Boeing Commercial Airplanes Group President Scott Carson told Wall Street analysts today.

Carson, speaking at a JPMorgan aerospace forum in New York, said the first 787 is "essentially factory complete."

Further tests are being conducted on the plane's software and electronic systems, he said. The aircraft, which debuted in a global roll-out on July 8, 2007, will return to the paint hangar soon for a new paint job.

That new paint is necessary because the 787 shown at the debut was essentially an empty shell with most systems incomplete. Boeing workers have reopened the airplane to finish installation of electronics systems, to reinforce the wing boxes and to replace thousands of substandard fasteners.

The aircraft is now scheduled to fly for the first time before the end of June, nearly two years behind its regular schedule.

Carson also told Wall Street observers that Boeing expects to weather the current economic storm well because of its nearly 3,700-order backlog.

"We're playing from a position of strength," he said.
"And that strength gives us great flexibility moving forward."

The company, seeing trouble developing in the world economy, last year decided against increasing its airliner production rates, a decision that now looks prudent as airlines cancel or postpone orders.

Boeing will use that deliberate scrutiny in analyzing whether to slow down production. While it's tempting in the short run to cut output, he said, such a cut could cripple the industry's ability to produce at a higher rate when the world economy heals.

American Airlines inaugurated service with the first winglet-equipped Boeing 767-300ER this week on a flight from Dallas to London.

The winglets were designed and built by Seattle's Aviation Partners-Boeing.

The 11-foot tall vertical wingtip extensions are the first in operational use on a 767. Aviation Partners' winglets have become an increasingly popular addition to many airliners.

The upswept wingtips are familiar to passengers on the wings of Alaska and Southwest airlines Boeing 737 jets.

The wingtips reduce drag-creating wingtip vortexes, improving aircraft fuel economy, takeoff performance and weight-carrying capabilities.

The addition of the wingtips to one 767 can save as much as 500,000 gallons of fuel a year, said American.

American says that it will save up to 29 million gallons of fuel yearly when its whole fleet of 767s is winglet equipped.

The wingtips also increase the 767's range by about 350 miles.

The winglets are expected to prolong the life of Boeing's aging 767 line. Several foreign carriers with large 767 fleets have ordered the wingtip additions.

MexicanaClick, the low-cost subsidiary of Mexicana Airlines, has announced it will lease 25 twin-jet 717s from Boeing's leasing arm.

Sixteen of those jets formerly were flown by Milwaukee's Midwest Airlines, which downsized its fleet last year in the face of deteriorating business conditions and dwindling traffic.

The 717s are the last of the former McDonnell Douglas line of commercial aircraft that Boeing inherited when the two companies merged in 1997.

The 717, a smaller, high-efficiency version of McDonnell Douglas' MD-80, was built in Long Beach, Calif.

MexicanaClick will replace its Fokker F-100 aircraft with the Boeing planes.