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Indiana Illinois rank: 18 rank: 7 90+ Day Delinquency Rate Foreclosure Rate September 2013 2.8% Unemployment Rate 4.0% 9.1% 90+ Day Delinquency Rate Foreclosure Rate September 2013 2.9% 2.5% 6.3% 8.9% 3.0% -36.2% 4.0% 2.2% -4.6% TIpTon CounTy 90+ Day Delinquency Rate 4.1% 3.3% 6.6% 5.4% year ago 2.9% 7.2% 6.0% year-over-year change year-over-year change 15.9% -8.8% Top Core-Based statistical Area 90+ Day Delinquency Rate -9.4% Top Core-Based Statistical Area 90+ Day Delinquency Rate Foreclosure Rate 3.3% 6.6% 4.5% 3.6% 7.2% -8.4% -8.8% 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 September 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. IN THE NEWS Fay Servicing Launches Job Program to Support Transitions to Servicing Fay Servicing, a Chicago-based special servicer, announced the launch of an initiative to create strategic partnerships with mortgage lenders and help train originators for careers in servicing. The program is designed to provide training "to hone key skills such as managing initial calls with borrowers, refining listening skills, meeting all applicable compliance requirements, and conducting a personal budget analysis for borrowers," Fay Servicing said in a press statement. With some lenders cutting origination staff in response to shifting demand, Fay Servicing said the moment is right to "attract the next generation of special servicers." "These strategic alliances with mortgage lenders provide a new career option for origination staff who are seeking positions in the servicing industry," said CEO Ed Fay. 78 5.7% year-over-year change year-over-year change 0.7% Foreclosure Rate year ago year ago 4.1% new CASTle, In September 2013 September 2013 4.1% Foreclosure Rate September 2013 year ago PonTIAC, IL -8.2% Top County LIvIngsTon CounTy 90+ Day Foreclosure Delinquency Rate Rate September 2013 0.7% 8.5% -36.4% Top County 4.1% 7.8% Noncompliance with FHA/HUD Regulations as a Defense to Foreclosure in Iowa year-over-year change year-over-year change -9.3% Unemployment Rate year ago year ago 3.1% FROM THE BENCH -20.3% 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 September 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Iowa rank: 23 90+ Day Delinquency Rate Foreclosure Rate September 2013 1.5% Unemployment Rate 2.1% 4.7% year ago 1.6% 2.8% 5.0% year-over-year change -3.9% -25.2% -6.0% Top County ChICkasaw CounTy 90+ Day Foreclosure Delinquency Rate Rate September 2013 1.7% 5.1% year ago 0.9% 4.0% year-over-year change 86.3% 26.0% Top Core-Based statistical area ClInTon, Ia 90+ Day Delinquency Rate Foreclosure Rate September 2013 3.4% 3.6% year ago 3.2% 4.2% year-over-year change 6.8% -14.4% 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 September 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Foreclosure defense attorneys in Iowa have been utilizing noncompliance with HUD regulations as a defense more often and more successfully in recent months. This defense stems from a 2009 Iowa Court of Appeals decision. In ABN AMRO Mortgage Group, Inc. v. Tullar 2009 WL 1066511 (Iowa Ct. App. 2009), the court ruled that a failure to comply with HUD regulations may be raised as a defense in foreclosure proceedings on Federal Housing Administration (FHA) loans. The HUD regulations related to mortgage servicing can be found at 24 C.F.R. §§ 203-500-203.616. The regulations require servicers to perform and document monthly loss mitigation evaluations (§ 203.605). Servicers must also be prepared to demonstrate that they have adapted collection techniques to the individual differences and peculiar circumstances of each mortgagor (§ 203.600). In a number of circumstances, the regulations also require the servicer to make a reasonable effort to arrange a face-to-face meeting with the mortgagor (§ 203.604). It also appears that HUD's website (HUD.gov) may be providing information that is subject to differing views of interpretation on this issue. The FAQ suggests the face-to-face meeting regulation does not apply unless the property is within 200 miles of a mortgage servicing office. The text of the regulation clearly states that the face-to-face meeting is required unless the property is within 200 miles of the mortgagee, its servicer, or a branch office of either. The case law on the issue supports the broader interpretation and not the interpretation suggested by the FAQ on HUD's site. Mortgagees and servicers should be prepared to provide documentation of compliance with HUD regulations in Iowa foreclosure actions on FHA loans. The inability to produce this evidence at hearing on a motion for summary judgment or at trial will preclude entry of judgment and may result in dismissal of a case without prejudice. This "From the Bench" article was contributed by Josh Henningsen, an associate attorney in the litigation department of South & Associates, P.C.