Business briefs: Federal Reserve posts record $98.7 billion profit

WASHINGTON – The Federal Reserve said Friday it made a record $98.7 billion in profits last year, mostly from interest on the more than $4 trillion in bonds it has purchased since 2008 to stimulate the economy.

The money, which goes to the U.S. Treasury, is a silver lining to the central bank’s unprecedented intervention to boost the economy.

Last year’s profits were an increase from the $79.6 billion the Fed made in 2013. The previous record was $88.4 billion in 2012.

Since 2008, the Fed has earned about $500 billion in profits.

FHA plans to cut mortgage insurance premiums

The Federal Housing Administration on Friday spelled out details of its plan to lower mortgage insurance premiums, a day after President Barack Obama unveiled the effort to jump-start first-time home purchases.

For 30-year mortgages with less than a 5 percent down payment, the mandatory annual mortgage insurance rate of 1.35 percent of the loan balance will be cut to 0.85 percent. For FHA-insured loans with more than a 5 percent down payment, the previous 1.30 percent rate will be reduced to 0.80 percent.

But the reduced rates will not apply to borrowers with 15-year mortgages, according to a letter issued to mortgage lenders by the federal government. The insurance rates on that loan product, which range from 0.45 percent to 0.95 percent of the loan balance, remain the same.

The lower insurance rates on 30-year mortgages will take effect Jan. 26.

Hub International buys Fidelity Associates

Spokane-based Fidelity Associates Inc. and Fidelity Associates Financial Services Inc. have been acquired by Chicago insurance brokerage Hub International Ltd., the companies announced this week.

Fidelity, an insurance and employee benefits agency and brokerage, was founded in Spokane in 1906.

The company is in its fourth generation of family ownership. President and CEO Scott Jones will keep his leadership role and also become executive vice president of Hub’s northwest operations. His brother Craig Jones will continue with Hub Northwest in his current position of account executive. Fidelity will keep its Spokane office at 501 S. Bernard St., according to a news release.

With the acquisition, Hub Northwest has more than 18 offices and 300 employees. Terms of the transaction weren’t disclosed.

Next IT moving to Spokane Valley

Next IT will move from the Paulsen building in downtown Spokane to the Pinecroft Business Park in Spokane Valley later this year.

The technology company was founded in 2002 and employs 160 people.

Its new headquarters in Spokane Valley will be a single-tenant building at 12809 E. Mirabeau Parkway. The company will move in the fall, according to a news release. Its new space will be designed to encourage formal and informal employee collaboration, including huddle spaces, conference rooms and an open center space with bleacher seating.

“We see this move as a credit to Spokane’s tech industry growth,” founder and CEO Fred Brown said in the release.

Next IT specializes in virtual assistant technology. The company developed the “Ask Jenn” function of the Alaska Airlines website, as well as the “Ask Sgt. Star” virtual guide for the U.S. Army. The company launched a virtual assistant for health care applications in 2013.