As goes California, so goes the nation?

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With turmoil in the financial sector and mortgages in crisis, until recently, banks have been unwilling and perhaps even afraid to lend.  However, since January of this year ['09] lenders have restarted the economic train to recovery by lending first to those borrowers most likely to repay.  Customers having higher credit ratings and greater equity have led homeowners looking to capitalize on lower interest rates back into the refinance market here in Southern California.  The expected "wave" of mortgage-holders whose option ARM's are set to adjust combined with government pressure to lend bailout capital will continue the move toward a resurgence of the mortgage industry.  As for the long term outlook, there will continue to be periods and instances of difficulty as appraised values adjust and short term players take the hardest hits. 

What does this mean for nationwide markets?  Perhaps since California was the first to see the hit, it will also be the first to see a recovery.  This conclusion is evidenced by an increasing number of lenders starting their machines from zero and once again beginning to lend here in the southland.  As a Southern California small business owner who was in desperate need of a restart to my own mortgage related business, I can tell you I am grateful to see work happening and believe that better times are not far away.

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Comments (1)

Joan Bergstrom
Joan Bergstrom Mobile Notary - Riverside, CA
Mobile Notary, Riverside CA

The big hit in the Notary/Loan-Signer industry was the day after Countrywide had their "meltdown" in the summer of 2007.

I teach for  in CA and by June of 2008 we were one of handful of schools that still had classroom instruction sites available.

CA had 32,000 less notaries in 2008 than 2007 and we will probably have another 35,000 less notaries in 2009 than 2008.

I think there are good times ahead for us in the Notary/Loan-Signer business in 2009-2010.

I am in the Inland Empire of CA and I think there will be many loan signings available in this very depressed area and it should be great in the areas of CA that are not so depressed.



Mar 24, 2009 04:06 PM