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The Bureau Effect: The New Default Process

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88 Montana RANK: 41 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate MARCH 2015 0.95% 0.71% 4.1 YEAR AGO 1.04% 0.97% 4.8 YEAR-OVER-YEAR CHANGE -8.6% -27.2% -0.7 Top County LINCOLN COUNTY 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 1.40% 2.27% YEAR AGO 1.14% 2.46% YEAR-OVER-YEAR CHANGE 23.4% -7.8% Top Core-Based Statistical Area BUTTE-SILVER BOW, MT 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 1.32% 1.11% YEAR AGO 1.29% 1.24% YEAR-OVER-YEAR CHANGE 2.3% -10.8% 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 March 2015 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary March 2015 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Nevada RANK: 9 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate MARCH 2015 2.62% 2.08% 7.1 YEAR AGO 4.06% 2.49% 8.2 YEAR-OVER-YEAR CHANGE -35.4% -16.6% -1.1 Top County NYE COUNTY 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 3.01% 3.55% YEAR AGO 4.05% 4.28% YEAR-OVER-YEAR CHANGE -25.7% -17.1% Top Core-Based Statistical Area PAHRUMP, NV 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 3.01% 3.55% YEAR AGO 4.05% 4.28% YEAR-OVER-YEAR CHANGE -25.7% -17.1% 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 March 2015 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary March 2015 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. IN THE NEWS FHFA Counsel Testifies on Super- Priority Liens in Nevada State Legislature Alfred M. Pollard, general counsel for the Federal Housing Finance Agency (FHFA), testified before the Nevada State Legislature Judiciary Committee on so- called "super-priority liens" and on recently introduced legislation to amend the way the foreclosure process is handled with regards to a homeowner association (HOA)'s lien. e subject of super-priority liens has been a hot one in several states, but particularly in Nevada, where the state Supreme Court made a controversial ruling last September that gave HOAs the authority to foreclose on a home and extinguish a mortgage non-judicially, a ruling that was subsequently appealed by lenders. A bill was introduced this past March in the Nevada State Senate (SB 306) that proposed to revise the provisions that govern the foreclosure of an HOA's lien, "requiring the trustee under a deed of trust securing real property to provide a homeowners' association certain notice concerning the Foreclosure Mediation Program under certain circumstances; and providing other matters properly relating thereto." Pollard told the committee that while Section 1 of SB 306 places "necessary limits" on what an HOA may seek to recover, "Section 2 makes the most important contribution to certainty for all parties." Section 2 of the bill creates safeguards, including notice to both the unit owner and the first lien holder of a delinquent assessment, that an HOA intends to exercise the "super-priority lien" status and extinguish the first mortgage by foreclosing on the home. Section 2 of the bill requires an HOA to provide the mortgagee with a formal statement of the amount of the deficiency along with a breakdown of all charges that will allow the mortgagee to address the lien payment. Pollard—noting that he believed the extinguishing of a first mortgage is an inappropriate approach for an HOA assessment—said the notice may spur the unit owner to pay the HOA deficiency, but most importantly, it gives mortgagees a chance to protect their position by addressing Hawaii RANK: 3 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate MARCH 2015 1.85% 3.43% 4.1 YEAR AGO 2.09% 4.77% 4.6 YEAR-OVER-YEAR CHANGE -11.6% -28.1% -0.5 Top County HAWAII COUNTY 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 2.23% 6.21% YEAR AGO 2.47% 8.47% YEAR-OVER-YEAR CHANGE -9.6% -26.8% Top Core-Based Statistical Area HILO, HI 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 2.23% 6.21% YEAR AGO 2.47% 8.47% YEAR-OVER-YEAR CHANGE -9.6% -26.8% 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 March 2015 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary March 2015 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Idaho RANK: 32 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate MARCH 2015 1.01% 1.03% 3.8 YEAR AGO 1.38% 1.49% 4.9 YEAR-OVER-YEAR CHANGE -26.6% -31.3% -1.1 Top County JEROME COUNTY 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 2.25% 2.79% YEAR AGO 2.68% 2.62% YEAR-OVER-YEAR CHANGE -16.2% 6.8% Top Core-Based Statistical Area ONTARIO, OR-ID 90+ Day Foreclosure Delinquency Rate Rate MARCH 2015 1.40% 2.06% YEAR AGO 1.98% 2.41% YEAR-OVER-YEAR CHANGE -29.5% -14.2% 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 March 2015 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary March 2015 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics.

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