Archive for October, 2012

90 DAY + DELINQUENCY RATES FALL, GOOD NEWS OR BAD ?

Monday, October 1st, 2012

Today a chart of 90 day or more delinquent mortgage loans here in California was published. The chart showed that the peak was reached and a pullback has began to take place. The pullback has been slowed by the sluggish job market. People that have mortgages need to have a job. A job that pays enough to cover the mortgage payment and enough to make a living. Jobs have been the big problem for years now. Especially here in California, where the unemployment rate is higher than the rest of the country and our real estate market was hit harder as well.
Having a friendly environment for businesses is essential to job growth. Our state has one of the highest tax rates in the country. County sales taxes and local business taxes are high. Regulations, restrictions and layered multi-agency laws are in place making it more and more difficult in the business environment for small businesses like ours.
Of course our Note business is tied to the real estate market and the real estate market cannot come back in any meaningful way unless people have jobs to pay their mortgages with. Our state has traditionally been democratic, not republican. Some understanding by the democrats as to what higher taxes, more regulations, bigger government with many agencies regulating the same thing essentially needs to get through to them so that small businesses can get back to hiring people.
We’ll see what the election brings, for one, I’m not holding my breath. I have been in the business since 1979. That is 33 long years, we have been open as Diversified Mortgage since 1985. When you want an experienced note buyer to handle your transaction, please don’t hesitate to give us a call.