O.C. 7th riskiest place to make home loan
September 4th, 2008, 3:00 am · 21 Comments · posted by Mathew Padilla, Reporter
Orange County rose two slots in the national ranking of riskiest places to make a home loan, hitting No. 7 in the third quarter up from No. 9 in Q2, reports First American CoreLogic.
No. 1, again, is the Inland Empire and No. 2, also again, is Los Angeles.
First American CoreLogic says falling home prices and fraud are driving up the risk of delinquency. The nationwide Core Mortgage Risk Index is up 12% from a year ago and has increased for 11 of the last 12 quarters. Read the full report HERE.
The map on the right shows high risk areas in red (Yes that includes O.C.). Click on the map for a larger image.
And in related topics…
- Foreclosure of the week: 5 bedrooms in Coto
- Pimco to up bet on distressed debt
- More banks in trouble
- Another mortgage-broker bill heads to the governor
- Bill to regulate mortgage brokers passes state Senate
- O.C. foreclosures soar to record in July
September 4th, 2008 at 8:22 am
or maybe we used to have a lot of “risky” lenders.
September 4th, 2008 at 8:35 am
I love it. C*** L**** has been one of the participant “computer valuation” companies that supplied wall street with “fly over” appraisals, like Zillow, effectively comparing 4000 sf future grow houses to 4000 sf golf course homes for securitizing million dollar loans. Now they make money ranking their stink!
September 4th, 2008 at 9:56 am
Why not show the entire list, or at least the top 20 or so.
Many of us don’t want to download the report.
September 4th, 2008 at 10:05 am
I love the map… very detailed. lol
September 4th, 2008 at 10:09 am
Love the green arrow out of marker on the map. High dollar graphics!
September 4th, 2008 at 10:10 am
I’m still laughing!
September 4th, 2008 at 11:13 am
California is over built and over taxed. Our tax laws and al gore smog laws and liberal democrat spending have driven companies out of our state.
September 4th, 2008 at 11:32 am
The green arrow is something I added in Photoshop in about two seconds, so you can knock my artistic skills but not First American.
September 4th, 2008 at 11:47 am
CaseClosed - this map has nothing to do with environmental regulations or the liberals.
As far as companies moving out of state, that has more to do with the high cost of living for employees than anything else. The argument is very weak, also, as far more businesses have started up here than have left. In fact, no state in the entire country even comes close to California for diversity and resiliency of its economy.
If so many employers are being driven out, then shouldn’t our population be decreasing, like some Midwestern states? How would you deal with the over-built issue, by the way? By more regulation? That sounds like a liberal Democrat idea to me.
September 4th, 2008 at 11:56 am
more proof that the worst is yet to come for the OC housing market
September 4th, 2008 at 12:01 pm
Please note that Gary Indiana has the 9th LOWEST risk for loan. Dayton Ohio has the LOWEST risk for loan default. If this wasn’t the OC, people might be humbled by that statistic.
September 4th, 2008 at 12:24 pm
Hey Matt, I’m not trying to give you a hard time. I just thought it was funny.
Jason, Take a look at the census numbers. More people have left the state then have moved in…unless you want add illegal immigrants to the numbers.
September 4th, 2008 at 1:19 pm
This report is based on past lending practices, so I don’t see how they can project that onto the lending of today. Obviously, subprime is gone, as are Pay Option ARMs, two types of lending that were heavily used in California.
They should be rating the risk of loans made today based on the standards of today. The riskiest loans being made are FHA with 3% down, high debt ratios, and somewhat loose standards for FICO. Based on these loans, I’d like to know what the risks are.
September 4th, 2008 at 2:29 pm
Yeah I was pretty amazed at the FHA guidelines. You can have as low as a 580 fico! With 3% down how quiuckly were people upsidedown who purchased in 05, 06, 07 and 08? How underwater are these people now and what is the % that will walk? What are the default rates for FHA’s this year? Funny how we say the first time home buyer will help create bottom and stability but until the price stops dropping they are the riskiest loans. Bad feed back loop all around.
September 4th, 2008 at 4:35 pm
Liar Loan - “This report is based on past lending practices, so I don’t see how they can project that onto the lending of today. Obviously, subprime is gone, as are Pay Option ARMs, two types of lending that were heavily used in California.”
While this is quite true, it’s still a near certainty that prices are going to fall hard over the next few years, so even a conventional fixed-rate mortgage with a 20% downpayment is very risky in this environment. Perhaps a 50% downpayment would be reasonably safe from the lender’s perspective, but very few borrowers are interested/able to assume such a loan.
September 4th, 2008 at 5:38 pm
“more proof that the worst is yet to come for the OC housing market”
^^^ Look another sheep running with the pack. Another reason why no one is buying.
September 4th, 2008 at 5:44 pm
Wow. Makes me very glad I left OC for Round Rock, TX 5 years ago…
September 5th, 2008 at 7:00 pm
Ryan “^^^ Look another sheep running with the pack. Another reason why no one is buying”
What exactly is the reason?
September 11th, 2008 at 6:08 pm
I wonder why no one mentions one of the big reasons why owners
had trouble making their payments, which is that they had to fill up
their gas tanks in the SUV’s parked in their garages. These SUV’s
still exist and until they fall by the wayside, people with the pricey homes are still going to be in trouble making their house payments.