To The Pointwith Boris Bozic
Commentary, Opinions, Thoughts and Discussion on Current Events, Politics and The Mortgage Industry

0 Comments This and That – Florida, U.S. Default & Broker Volume

Article written by Boris Bozic on the 02 Aug 2011 in Current Events,Economy,Mortgage,Personal,US Politics


I’m writing this blog from Florida. Hey, where else does a guy from Toronto go to escape the heat?   Florida, of course.  It’s steamy hot down here as well, but the heat and humidity seem tolerable when you’re in vacation mode.  I have to say that the state of Florida has really grown on me.  I love it down here.  Why? The weather is great all year round.  Secondly, they have all the amenities you can ask for – beaches, great restaurants, fantastic cigar stores, golf courses galore, professional sports franchises.  Thirdly, everything is cheap. The best part about buying anything down here is that you always feel like you got a good deal.   The best deal you can get today is real estate. I think it’s a good time to buy down here.  Distress means great value and flexibility by the home owner, be it the vendor or the bank.  A word of advice, if you decide to explore what’s available you better pick one specific location.  There’s just too much product available to bounce around from one side of the state to the other to check out homes.  Secondly, if you decide to buy, the day after the deal closes forget about values. It’s going to take years before Floridians see any appreciable increase in values. If you’re looking for a second home, a place where the family can go, a place where your parents can go to escape the winter, it’s a great time to buy.  I was speaking to a real estate agent yesterday and he said if it wasn’t for Canadian’s buying up product in his area he wouldn’t be busy.  Great value, and good exchange rates, is attracting a lot of Canadians.   What I don’t like about Florida?  Old farts that drive on I-75 doing 15 miles under the legal speed limit, while in the left hand lane.

The U.S. Avoids Default

Well that was a shock – There was little doubt that an agreement would be hammered out.  The only question is what the agreement would look like.  What I read and hear down here is both the Democrats and Republicans are not happy.  I guess in some ways that makes me believe that it’s an okay deal.  If both sides aren’t happy it means there was give and take.  As details come out about the deal, and is actually passed in Congress and the Senate, we’ll get a better idea if the agreement is a band-aide solution or something that has substance.  My money is on political cover rather than doing what’s best for the country.  Winston Churchill said this about U.S. politicians, “they always get it right but only after failing everything else they try first“.

Volumes Decrease

Over the last few weeks we’ve been hearing that volumes for Q2 are down year over year in the broker world.  We know for a fact that submissions are down as of the end market-share-does-not-mean-share-marketof June.  How that translates to actual volumes will become clearer when D + H publishes their market share report for Q2 in the second week of August.  The market share report will probably validate what I’ve been hearing from brokers in the last 90 days, it’s slower and banks are still very aggressive.  If the Ministry of Finance wanted to cool things down from a borrowing perspective, with the changes they made in April, mission accomplished.  The only question is did the broker world take a bigger hit than the direct to bank world?  We’ll find out soon enough.

Until next time,

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