Orange County Register

The Federal Reserve, in its Beige Book report for California and eight other Western states, said commercial lending demand dropped considerably in September. Here’s more from the report released today:

“Lending activity and credit conditions weakened noticeably during the survey period. Demand for commercial and industrial loans fell further, and demand for new residential mortgages remained very weak. Credit availability declined significantly as banks and other financial institutions faced rising difficulties securing short-term funding. Contacts also pointed to higher delinquency rates in all loan categories. Banks and customers are taking steps to enhance deposit-insurance coverage of existing holdings by spreading deposits across multiple banks.”

To read the full report CLICK HERE.

The Twelve District of San Francisco includes: Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington plus American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands.

And in other mortgage news…

• Mortgage rates to rise slightly in ‘09
• President Bush says government to invest in banks
• O.C. foreclosure inventory hits 3,300 homes
• U.S. to invest $250 billion in banks
• O.C. maps tell tale of subprime boom, bust
• The Wachovia winner is…Wells Fargo

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