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Stocks Struggle After Record - CNNMoney.com -- Stocks struggled Wednesday as investors sought more evidence that a recovery is taking hold, one day after the Dow industrials closed at its highest point in 14 months.

Mixed readings on the labor market, GM's management shakeup and record gold prices above $1,210 an ounce all played a role in the day's trading.

The Dow Jones industrial average lost 19 points, or 0.2%. The blue-chip average ended the previous session at the highest point since Oct. 2, 2008. The S&P 500 index ended little changed. The Nasdaq composite rose 9 points, or 0.4%.

Stocks struggled as investors sorted through the day's news and geared up for the big monthly jobs report due Friday. Ahead of that, investors will keep an eye on Thursday's weekly jobless claims report from the Labor Department.

FHA to Raise FICO Requirements, Reduce Seller Concessions, Increase Premiums and Downpayment - The FHA is taking steps to tighten its lending standards through measures that will impact both borrowers and lenders according to remarks made to congress by HUD Secretary Shaun Donovan today.

Secretary Donovan told members of the House Committee on Financial Services that his department is in the process of drafting new policies to address the quality of FHA's current portfolio, improve the performance of future loans, and restore the capital reserve above its mandated levels.

The agency is looking at several measures to improve the quality of its portfolio going forward. It plans to reduce the maximum permissible seller concession from 6 percent to 3 percent because the current level exposes the FHA to excessive risk by creating incentives to inflate appraised values. The change, he said, will bring FHA into line with industry norms and even further reductions may be considered.

The minimum borrower FICO score will be raised although the final number has not yet been determined. The agency is studying whether new FICO minimums should be accompanied by changes in other underwriting criteria for lower down payment loans.

The up-front cash that a borrower will be required to bring to the table for an FHA-backed loan will also be increased to make sure that borrowers have "skin in the game." The exact way this will be accomplished is still under study.

These proposed changes, Donovan said, only require administrative decisions on the part of HUD, however, Congress will be asked to pass legislation to increase premiums. The current up-front premium of 1.75 percent is below the statutory cap of 3 percent but the annual premium is at the maximum. Raising premiums, he said, is the most effective means of raising capital for the reserve fund with the least impact per borrower.

The secretary reported that the anticipated changes are merely the latest in a series of improvements FHA has made to shore up its lending activities.