| WaMu to stress retail banking
When it comes to Washington Mutual Inc., most of the attention has been focused on the headache-generating home-loan side of the business. But there's at least one segment of WaMu that is growing: retail banking. As important as retail banking has been in carrying WaMu through the current mortgage-market predicament, even more reliance will be placed upon it in 2008. Not only is Washington Mutual investing more capital in the business -- to the tune of 100 to 150 branches opening this year, ahead of last year's pace of 78 -- but retail banking will get greater emphasis as a channel for generating mortgage business and credit-card accounts. That expansion comes as both the banking industry in general and WaMu in particular rethink the role of the branch in their business and the strategy for designing, locating and building them.
Nationals draw down Vaile on loans
The Nationals have re-introduced their on-line loan calculator in a bid to convince voters their mortgage rates would be higher under a Labor government. The move comes on the day the board of Australia's central bank sits down to discuss lifting the official cash rate for the sixth time since the 2004 Federal election. The calculator was introduced during the previous election campaign to show the Coalition's record on interest rates, then at historic lows, and highlighting Labor's record in government. This time around, the calculator is asking borrowers whether they can afford to pay their mortgage under a Rudd Labor government. The calculator provides estimated monthly repayments for loans attracting the current variable home mortgage rate of 8.3 per cent, the averaged standard mortgage rate under Labor governments between 1983 and 1996 which was 12.75 per cent and the highest standard mortgage rate (17 per cent) under Labor.
Starting to feel a pinch
Mark Zandi, chief economist at Moody's Economy.com, said the economic signals "are flashing yellow," suggesting that consumers need to take care. Jobs are getting harder to find, while the crisis in the mortgage industry has made it more difficult for homeowners to borrow against their houses, closing down what has been a major source of extra cash in recent years. Consumers' budgets have been squeezed by rising food and fuel prices. Credit card balances surged through the fall months, according to Federal Reserve figures. Now, delinquency rates on consumer loans are rising, the American Bankers Association reported recently. Even companies that cater to higher-income families, such as American Express Co., are feeling... .
Economic stimulus a big break for home buyers
You could get a big break on your mortgage from the economic stimulus package announced Thursday. Besides its core purpose of providing tax refunds, the tentative package - which still has several hurdles to clear - essentially rewrites the definition of "jumbo" loan, raising the cap from its current $417,000 to as high as $729,750 in high-cost areas for one year. That would mean home buyers who need the high-ticket mortgages this area requires could qualify for the benefits now limited to non-jumbo, or conforming, loans: an interest rate that's roughly a full percentage point lower. On a $650,000, 30-year fixed-rate mortgage, the savings could be $417 a month, according to California Sen. Barbara Boxer's office. "This is exactly what we need for California," said David Crane, Gov.
|
