Here are some breaks from the headline headaches in the property market.
The gravity of the economic crisis as spurned by the excessive lending in the property market has brought the unemployment rates in the highest level in seven years and factory orders in low numbers. As Wall Street gets more nervous with the Congress’ passing of the bail out plan, the Dow Jones keeps getting shaky. Surprisingly, there are still good things in the market and it doesn’t include a reversal of the GSEs’ ratings from Moody’s.
The (Supposed) Mortgage Fee Hike
Good news to those who are going to file a new mortgage. Fannie Mae will retain its adverse market delivery charge of 0.25 percent. The so-called fee is a buffer to the company’s finances since last year and was set to increase by an additional 0.5 percent next November. However, under new management, the company has retreated with its planned hike to calm more rage from homeowners and real estate professionals.
This is a slight easement to the country’s jittery economy and even though the fee still needs to be eliminated to make the mortgages affordable, it turns out to be a lesser blow than what had us expecting for almost a year now. A half percentage hike translates to a higher cost had it not been revoked.
Adieu, Mr. Fishman
Washington Mutual, Inc. CEO Alan Fishman and five other bank officers are expected to vacate their posts when JPMorgan Chase finally takes over the purchased U.S. thrift. This comes after the duplication of positions during the takeover but the real good news comes with the announcement that Fishman won’t be taking the $6 million severance pay. Had he pursued it, then we will expect more clamor from taxpayers who will condemn his WaMu stint of only less than a month.
In fairness, Fishman has cooperated in the solution of the crisis by refusing the amount stated in the contract. Then again, a $7.5 million signing bonus will be most likely given to him before the year ends so he actually won’t be doing the country a big favor though.
These are tough economic times and in their smallest way, companies and its managers must recourse to practical ways, sacrificing personal gains for an ailing America.