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up to 90 percent LTV, which significantly reduces monthly payments and closing costs," said Mat Ishbia, president of Michigan-based UWM. "Typically this would have only been allowed with 20 percent down or more. Borrowers can now keep this extra money in the bank. It's yet another attractive UWM offering that arms our brokers with additional options to help them be more successful." To be eligible for Escrow Advantage, loans must have a maximum LTV of 90 percent and a minimum FICO score of 720 (there are no FICO restrictions in California). They must also be conventional loans. "By combining Escrow Advantage with UWM's wildly successful Ultimate Advantage program, borrowers can spend as little as $100 more per month to keep more than $20,000 in the bank," said Allen Beydoun, SVP of sales. "This option allows the borrower to retain financial stability while pursuing their dream home." KNOW THIS Detroit's municipal bankruptcy filing is expected to have relatively little short-term impact on the city's "longsuffering" housing market, according to the Detroit Free Press. Minnesota rank: 44 90+ Day Delinquency Rate Foreclosure Rate May 2013 1.2% Unemployment Rate 1.1% 5.3% year ago 1.6% 1.9% 5.7% year-over-year change -19.9% -42.4% -7.0% Top County NorMaN CouNTy 90+ Day Delinquency Rate May 2013 1.9% Foreclosure Rate 2.9% year ago 2.2% 2.1% year-over-year change -15.2% 39.7% Top Core-Based Statistical area alBerT lea, MN 90+ Day Delinquency Rate Foreclosure Rate May 2013 1.7% 1.9% year ago 2.4% 3.2% year-over-year change -26.9% -39.1% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. 84 Minnesota www.MinnesotaREO.com Bruce McAlpin Jeff Detloff Long H. Doan Maribel Garcia Garth Johnson Craig Murphy Michael Olsen 612-669-6324 952-829-2938 763-432-7640 612-821-7500 952-844-1511 763-533-9133 651-209-8444 IN THE NEWS Institutions Face Greater Regulatory, Risk Management Pressures Since the start of the year, financial institutions—both large and small—reported feeling squeezed by compliance and risk management pressures stemming from new regulations to increasing fines, according to survey results released by Wolters Kluwer Financial Services. To measure regulatory and risk management pressure, the Minneapolis-based company used an indicator that calculated 10 factors concerning compliance, the regulatory environment, and risk management. In January, the indicator began with a baseline score of 100 when the company surveyed 400 banks and credit unions. After surveying 430 similar institutions in April, Wolters Kluwer Financial Services reported a score of 136. According to the firm, significant increases in four main factors led to the higher score: the number of new federal banking regulators; rising amounts for regulatory fines; a growing number of resources needed by banks and credit unions to meet requirements; and the challenges facing senior leadership in managing and controlling risk. Rising fines held the highest score of 408, with the spike mainly driven by the $9.3 billion mortgage servicing settlement reached by major servicers and the Federal Reserve and Office of the Comptroller of the Currency. When banks and credit unions were asked what compliance concerns kept them up at night, 46 percent said regulatory reform in general, including the Dodd-Frank Act and Consumer Financial Protection Bureau (CFPB) rules, while 35 percent said new lending regulations such as those from the CFPB, are their biggest source of anxiety. Among top concerns related to the DoddFrank Act, combined Real Estate Settlement Procedures Act (RESPA)/Truth in Lending Act (TILA) disclosure rules were cited as a primary issue by 59 percent of respondents. Fifty-three percent also named mortgage servicing requirements and exam guidelines among top concerns, followed by 51 percent who cited qualified mortgage (QM) requirements. For risk management, regulatory risk and fraud were at the top of respondents' lists of concerns, with 56 percent categorizing regulatory risk as a significant concern and 33 percent putting fraud top-of-mind. Smaller institutions—those with less than $1 billion in assets—were more concerned with asset and liability management. Thirtytwo percent cited this as a top concern compared to 19 percent of institutions with more than $7.5 billion in assets. St. Louis County Steps into E-Recording with Simplifile St. Louis County in Minnesota shed the traditional method of paper-based recording to adopt e-recording through Simplifile. Now that the county is able to record documents electronically, recording will take place faster, and the county will see a reduction in mail and paper costs, Simplifile explained. In order to make electronic recording possible, St. Louis County spent a year and a half creating a new interface. "It wasn't a matter of flipping on a switch for e-recording," said St. Louis County public records and property valuation director Mark Monacelli. "We had to re-write our entire database using current technology and write a state-of-the-art application to convert our paper-based Torrens registration system to a fully integrated electronic model along with creating a whole new interface to begin e-recording." Monacelli led the team in creating the infrastructure for e-recording. Monacelli, a major proponent in the history of e-recording, also serves as president of the Property Records Industry Association. To begin e-recording through Simplifile, submitters need to have high-speed Internet access and a scanner. According to a company release, St. Louis County is the 57th Minnesota recording jurisdiction to e-record with Simplifile.

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