Milwaukee County’s financial health improves
All three of Milwaukee County’s bond rating agencies have assigned positive ratings to the county’s $30.86 million General Obligation Corporate Purpose Bonds, Series 2008A. The county’s ratings are vastly improved from those in the immediate aftermath of the county pension scandal. The improved ratings mean the county can borrow funds at lower interest rates in the future.
In particular, the county is encouraged by Moody’s decision to change its outlook from "negative" to a stable "Aa3" rating. Moody’s indicated the county has made significant strides to reducing its largest expenditure pressures related to its pension system and employee and retiree health care costs. "This news is very encouraging for the county, in both the short-term and long-term, as we work to improve services for the residents of Milwaukee County," said Milwaukee County Executive Scott Walker.
"The county is improving," said County Board Chairman Lee Holloway. "The future is brighter than it was before. We are on the right path in managing our financial objectives, and we should all be pleased with this positive change in our fiscal outlook." Fitch Ratings-Chicago assigned an "AA" rating to the county’s bonds, indicating that the county government has eliminated certain pension benefits for new employees and will focus on cost constraint through better oversight. Standard & Poor’s Financial Management Assessment said the county’s financial management practices are considered "strong."
Realtor predicts housing market rebound in second half of year
Home sales and prices throughout most of the country, including the Milwaukee market are poised for improvement in the second half of 2008, according to Lawrence Yun, chief economist for the National Association of Realtors (NAR). Speaking at the NAR Midyear Legislative Meetings & Trade Expo last week, Yun said "middle-America" cities that performed evenly over the past few years, such as Milwaukee, Cincinnati and Kansas City, Mo., are likely to experience home price gains in the 20 to 30 percent range over the next five years.
Markets such as Miami, Las Vegas and Phoenix could see prices go up as much as 50 percent during that time period, Yun said. Yun blamed most of the softening of the housing market over the last year on the "subprime mess," where consumers with blemished credit records received loans they could not afford when the interest rates reset to higher levels. "In fact, if you look at where home prices fell the most, it’s the markets where subprime loans were prevalent," Yun said.
Cape Coral, Fla.; Detroit; Las Vegas; Miami; Orlando, Fla.; Phoenix and Riverside, Calif. were among the cities with the highest percentages of subprime lending and where the markets suffered the biggest downturns, he said. "It’s important to keep things in context," Yun said. "While much of the media is focusing on the fact that the rate of foreclosures doubled this year from historic averages, the foreclosure rate has gone from 1 percent of all homeowners with mortgages to 2 percent. Foreclosures are being driven principally by subprime loans."
Now that the subprime market has dried up, and loans insured by the Federal Housing Administration and those purchased by Fannie Mae and Freddie Mac are making a comeback, the housing markets will strengthen and prices are likely to begin a steady uptick in the coming months, Yun said.
Yun urged the Congress and White House to enact NAR-supported legislation to modernize FHA programs, reform regulation of the government-sponsored enterprises (Fannie Mae and Freddie Mac), establish a first-time home buyer tax credit and make the temporary increases to the conforming loan limits established by the Economic Stimulus Act of 2008 permanent.
"These measures would quickly stabilize the housing markets and get fence-sitters into the market to buy homes," Yun said. "There are many reasons for people to get into the housing market today, and very few reasons not to. With the plentiful supply of homes for sale at affordable prices, interest rates approaching 40-year lows, and the strong track record of housing as a good long-term investment, conditions are ripe for buyers," he added. "Those are the facts, plain and simple."
Foreclosures continue to skyrocket in Wisconsin
Wisconsin mortgage foreclosure filings continue at "escalated levels," according to newly released data compiled by ForeclosuresWI.com, a leading provider of Wisconsin foreclosure resources and statistics. Wisconsin foreclosures have spiked 70 percent over the last three years (from 12,311 in 2005 to 20,995 in 2007), and the first four months of 2008 are showing no signs of improvement.
The number of Wisconsin foreclosures in April 2008 grew to 2,103 homes, up more than 40 percent from the total in April 2007. "We expect foreclosures to remain at escalated levels through 2008, with some experts not predicting a housing market recovery until at least 2010," said Robert Jansen, president of ForeclosuresWI.com. Milwaukee County has the most foreclosures in the state in April, up 42 percent from a year ago.
Jansen sees several factors driving the skyrocketing foreclosure rates. "Consistent with the record number of mortgage defaults nationwide, a mix of adjustable rate mortgage resets, a soft housing market, and the collapse of the subprime mortgage market, have forced many more homeowners into foreclosure," Jansen said. "Adjustable-rate and exotic/subprime mortgage rate resets continue to result in significant increases to many homeowners’ monthly mortgage payments. Furthermore, the deteriorating housing market and flood of foreclosures has made it more difficult for those facing financial trouble to quickly sell their home to avoid foreclosure. Compounding the issue, many lenders have tightened lending standards in the wake of subprime mortgage crisis and skyrocketing mortgage defaults, which eliminates many refinancing options for those in trouble."
Fiserv wins national award for employee wellness program
The National Business Group on Health (NBGH), a national nonprofit organization of large employers, recently honored Brookfield-based Fiserv Inc. for its commitment to promoting a healthy workplace and encouraging a healthy lifestyle for its employees and their families.
Fiserv is one of 52 employers that received the Best Employers for Healthy Lifestyles Award at the Leadership Summit sponsored by the NBGH’s Institute on Costs and Health Effects of Obesity. Fiserv received a Gold Award in recognition of its successful wellness program, aimed at helping employees and their families adopt healthier lifestyles. This is the first year Fiserv has won a Gold Award, and the third year it has been recognized, receiving Silver Awards in 2006 and 2007.
Fiserv launched its wellness initiative in 2003, developing a comprehensive program to address chronic disease and to keep associates healthy. The strategy includes building a solid foundation for wellness benefits for Fiserv’s 25,000 employees in nearly 200 facilities across the United States. One of the most popular Fiserv wellness campaigns, the Healthy You Fitness Challenge, began company-wide in 2006. During the campaign, more than 6,000 employees accumulate nearly 2 million miles of walking, running and biking over the eight weeks of the event. For more information on NBGH and the award winners, visit www.businessgrouphealth.org.
