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» Department alleged in a statement. The complaints assert that as a result of the misrepresentations, investor losses are expected to exceed $100 million. In a statement, a BofA spokesperson told the New York Times, "These were prime mortgages sold to sophisticated investors who had ample access to the underlying data and we will demonstrate that." STAT INSIGHT -5.7% Difference between current home prices in North Carolina and their prerecession peak. Source: Wells Fargo Securities Economics Group North Dakota rank: 49 90+ Day Delinquency Rate Foreclosure Rate June 2013 0.5% Unemployment Rate 0.8% 3.1% year ago 0.6% 1.1% 3.1% year-over-year change -14.5% -24.3% 0.0% Top County PembiNa CouNTy 90+ Day Delinquency Rate June 2013 0.2% Foreclosure Rate 2.4% year ago 0.8% 0.8% year-over-year change -72.7% 183.5% Top Core-based Statistical area JameSTowN, ND 90+ Day Delinquency Rate Foreclosure Rate June 2013 0.8% 1.2% year ago 0.5% 1.1% year-over-year change 43.2% 13.4% 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 June 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. IN THE NEWS North Dakota an Anomaly in Fed's Study of Judicial Foreclosures and Home Prices The number of days a property spends in delinquency status prior to foreclosure is relatively similar across all states. However, once a property enters foreclosure, the number of days it spends making its way through the foreclosure process and back to market varies drastically with the key determinant being whether a state is a judicial or non-judicial state, according to study findings released by the Federal Reserve Bank of New York. Not only did the study reveal a vast difference in foreclosure timelines between judicial and non-judicial states—something discussed at length in various industry reports and news articles in the past—but it also revealed the impact of lengthened foreclosure timelines. "[C]ontrolling for the magnitude of the decline in home prices from peak to trough, we observe that home prices have recovered considerably more in the non-judicial states," reads a blog post on the New York Fed's website. Because judicial states take longer to process foreclosures, many have amassed large backlogs of shadow inventory waiting to make its way to the market. "The larger the REO inventory, the slower the growth in house prices holding constant a variety of other traditional drivers of house prices," the Fed stated in its report. The Federal Reserve Bank's researchers did point out one exception to the findings. Despite North Dakota's status as a judicial state, it is experiencing strong price increases. However, the authors of the report attribute this exception to a housing shortage caused by an energy boom in the state. The Fed authors suggest the lagging prices in judicial states may result from the general awareness that these markets hold a high level of distressed inventory in the backlog, pushing potential buyers to keep offers low. The researchers find "delays in the foreclosure process impose significant costs and ultimately do not make foreclosure less likely." In terms of policies aimed at the housing market, the New York Fed advises against a "one size fits all" approach because of the vast differences in markets across the country. VISIT US ONLINE @ DSNEWS.COM OCC Hosts Compliance, Credit Risk Workshops in Fargo The Office of the Comptroller of the Currency (OCC) scheduled two workshops in Fargo, North Dakota, specifically for directors of national community banks and federal savings associations supervised by the regulator. The workshops—"Compliance Risk: What Directors Need to Know" and "Credit Risk: A Director's Focus"—took place on August 13 and 14. The compliance risk workshop focused on major compliance risks, consumer protection regulations, and critical elements of an effective compliance risk management program, while the credit risk workshop placed emphasis on the loan portfolio and roles of the board and management, along with current industry trends and news. The workshops were led and taught by seasoned OCC supervision staff. Altogether, the OCC is hosting 37 workshops across the country to help community bank directors sharpen their skills. Ohio rank: 12 90+ Day Delinquency Rate Foreclosure Rate June 2013 2.9% Unemployment Rate 3.1% 7.2% year ago 3.2% 4.3% 7.3% year-over-year change -10.1% -28.3% -1.4% Top County AshTAbulA COunTy 90+ Day Delinquency Rate June 2013 3.5% Foreclosure Rate 5.4% year ago 3.5% 6.8% year-over-year change -0.1% -19.6% Top Core-based statistical Area AshTAbulA, Oh 90+ Day Delinquency Rate Foreclosure Rate June 2013 3.5% 5.4% year ago 3.5% 6.8% year-over-year change -0.1% -19.6% 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 June 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. 133

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