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19 » VISIT US ONLINE @ DSNEWS.COM REPORT: FORECLOSURE FILINGS RISE MONTHLY, BUT FALL ANNUALLY e number of foreclosure filings in the nation has increased month-over-month but declined year-over-year, according to RealtyTrac's monthly U.S. Foreclosure Market Report for August 2014 released today. e RealtyTrac data showed that one in every 1,126 houses in the nation (a total of 116,193 properties) had a foreclosure filing during August. is number represented an increase of 7 percent from July but a decrease of 9 percent from August 2013. Foreclosure filings include default notices, scheduled auctions, and bank repossessions. e number of foreclosure auctions scheduled in August increased by 1 percent year- over-year after 44 consecutive months of annual declines, according to RealtyTrac. Month- over-month, scheduled auctions declined by 1 percent in August. In judicial states, where the foreclosure process must pass through the courts, scheduled auctions increased by 5 percent year-over-year. In all, 51,192 foreclosure auctions were scheduled nationwide in August. "e August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets," said Daren Blomquist, vice president at RealtyTrac. "e annual increase in foreclosure auctions — the first since the robo-signing controversy rocked the foreclosure industry back in late 2010 — indicates mortgage servicers are finally adjusting to the new paradigms for proper foreclosure that have been implemented in many states, whether by legislation or litigation or both." RealtyTrac reported that 24 states experienced a year-over-year increase in scheduled auctions, led by Colorado (160 percent), Oregon (117 percent), Connecticut and New York (81 percent each), and Oklahoma (72 percent). For the second consecutive month, foreclosure starts increased month-over-month, making a 12 percent jump from July to August, according to RealtyTrac. e number stayed flat year-over-year, however. e foreclosure process started on more than 55,000 properties in August nationwide. REO activity (lenders taking possession of property via foreclosure) fell by 33 percent annually in August, marking the 21st consecutive month with a year-over-year decline in nationwide REO activity, according to RealtyTrac. REO activity did inch upward by 2 percent from July to August, however. In all, foreclosure led to the repossession of 26,343 properties by lenders in August. e state with the highest foreclosure rate for the 11th consecutive month was Florida, with one in every 400 housing units in August. Florida's rate was almost three times the national average of one in every 1,126 properties. Among metro areas with a population of more than 200,000, the area with the highest foreclosure rate in August was Macon, Georgia, with one filing in every 154 housing units, according to RealtyTrac. OCC: FINANCIAL INDUSTRY SUPERVISORS MUST REMAIN VIGILANT In speaking before the U.S. Senate Committee on Banking, Housing, and Urban Affairs earlier in the week, Comptroller of the Currency omas J. Curry said the overall financial condition of banks has improved since the passage of the Dodd-Frank Reform Act four years ago – but he believes that supervisors need to "remain vigilant." Curry praised the progress of implementing the interagency Dodd-Frank rulemakings that have yet to be completed, saying he believed many of them will be finalized in the near term. "Despite the improving strength and health of banks, however, I am keenly aware of the need for supervisors to remain vigilant," Curry told the committee. Regarding heightened supervision, OCC finalized a set of guidelines on September 2 that raised risk management standards for large banks to ensure they remain financially stable and avoid a repeat of the financial crisis of 2008 that resulted in the passing of the Dodd-Frank Act in 2010. "Requiring higher supervisory standards for the largest and most complex banks we oversee is consistent with the Dodd Frank Act's broad objective of strengthening the stability of the financial system," Curry said in his address. "ese heightened standards address the need for comprehensive and effective risk management; an engaged board of directors that exercises independent judgment; a more robust audit function; talent development, recruitment and succession planning; and a compensation structure that does not encourage inappropriate risk taking." Curry added that OCC is holding itself to the same high supervisory standards which it applies to large banks, and he cited as evidence of this the findings of a team hired last year to assess OCC's supervision of large and mid-sized banks. e team identified several areas in which OCC was performing well, but also some areas in which the team felt could be improved, and Curry said OCC had embraced the team's discoveries and subsequent suggestions. "One key improvement includes expanding our lead expert program which will allow us to better compare the operations of the institutions we regulate to identify trends, best practices, and weaknesses," Curry said. "Another change will improve our ability to identify systemic risk by enhancing our risk- monitoring processes and reporting. at fits squarely with the semi-annual public reports by our National Risk Committee." OCC has also included community banks in its campaign to heighten supervision in the financial industry, Curry said. A lending limits rule that provides banks with easier options to measure credit exposures is an example of OCC regulation intended to remove unnecessary burden from community banks. "Despite the improving strength and health of banks, however, I am keenly aware of the need for supervisors to remain vigilant" —Thomas J. Curry

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