Peak Finance Company Expands Commercial Offices

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In response to the overwhelmingly bleak outlook in the residential real estate market, Peak Finance Company expands through adaptation.

Through generations upon generations, there have been countless examples of adaptation as a means of survival. The artic fox's thick fur coat, the cactus' barrel-like shape, and human beings' postural change exhibit evidence of this. Only the strongest and best adapted species survived. This concept can certainly be carried over into today's business world: Those who move quickly and adapt to their surroundings, will reign victorious. In the current real estate market, companies are trying to do just that. Housing industry woes coupled with a peaking commercial market have led the national economy to a timely juncture. So who will survive?

Peak Finance Company (, a residential and commercial mortgage brokerage firm based in Southern California, has recently adapted by enlarging their commercial mortgage department. When asked about the company's recent expansion, Jeff Simon, Vice President of Peak Finance Company, replied, "For now, national economic indications do not point to the troubles within the housing industry spilling over into the commercial sector. Despite softening of the residential market, commercial property returns are still at an appealing 17% this year."

Along with adding additional suite space in their Beverly Hills office, Peak Finance Company has expanded its staff and will continue hiring commercial loan officers to respond to the continuing demand. "As a business manager, I have learned to adapt quickly and efficiently to lessen rough market impacts," says Simon. "Our quality and knowledge in the commercial arena keep us optimistic in our ability to hedge against current risks and place loans with quality lenders that appreciate our business."

According to the California Mortgage Bankers Association's quarterly report, commercial real estate delinquencies hit a 5-year low in the state. The report goes onto show that among the sectors studied -- multi-family, office, retail, warehouse, hospitality, mobile home parks and research-and-development properties -- only the hospitality and health care industries have delinquent loans. "As potential homeowners have found it more difficult to secure financing, vacancy rates have continued to decline, providing ample cash flow for many commercial property owners," asserts Simon.    

The majority of U.S. lenders have enforced stricter lending criterion, even on credit worthy borrowers. Those who did not adapt quickly enough became extinct. Roughly 110 national mortgage companies have either stopped funding new loans, shut their doors, or gone bankrupt since the beginning of 2007, unable to handle the surge in delinquencies and lack of demand for mortgage backed securities. This has shaken up the brokerage community, sending rookies packing and veterans into secondary career paths. In fact, it has been reported by, that people working in mortgage-related jobs has fallen roughly 10% from October 2006 to June 2007.

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Susan Perdomo
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