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» VISIT US ONLINE @ DSNEWS.COM 91 Oregon RANK: 23 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 1.31% 1.55% 5.2 YEAR AGO 1.70% 2.24% 7 YEAR-OVER-YEAR CHANGE -22.8% -30.8% -1.8 Top County KLAMATH COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 2.46% 3.17% YEAR AGO 2.31% 3.65% YEAR-OVER-YEAR CHANGE 6.5% -13.1% Top Core-Based Statistical Area KLAMATH FALLS, OR 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 2.46% 3.17% YEAR AGO 2.31% 3.65% YEAR-OVER-YEAR CHANGE 6.5% -13.1% 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. THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com. New Mexico RANK: 6 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 1.57% 2.28% 6.2 YEAR AGO 1.92% 2.37% 6.7 YEAR-OVER-YEAR CHANGE -18.4% -3.8% -0.5 Top County TORRANCE COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.31% 6.19% YEAR AGO 2.09% 5.89% YEAR-OVER-YEAR CHANGE -37.4% 5.0% Top Core-Based Statistical Area GRANTS, NM 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.83% 4.25% YEAR AGO 1.49% 4.53% YEAR-OVER-YEAR CHANGE 23.0% -6.1% 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 Nevada Senate Passes Bill to Amend Super-Priority Lien Law e Nevada Senate passed a bill just before the end of its legislative session that revises the provisions of a law that allows homeowners as- sociations (HOAs) to foreclose non-judicially on a residential home when the homeowner's HOA dues become delinquent, according to the Nevada state Legislature. Nevada Senate Bill 306, a bipartisan bill sponsored by Nevada State Sens. Aaron Ford (Democrat) and Scott Hammond (Republi- can) in March, was approved in late May just before the legislative session ended. e bill was in response to the controversy created by a ruling handed down by the Nevada State Supreme Court last September that gave HOAs authority to attach "super-priority lien" status to a mortgage, thus allowing them to extinguish a mortgage on a home where the owner is delinquent on HOA dues without going through the courts. HOAs claim the super-priority lien status is necessary because it forces banks to pay the delinquent HOA dues and not leave respon- sible HOA members footing the bill to keep the HOA's infrastructure intact, according a report from the Reno Gazette-Journal. Banks and lenders that have suffered huge losses when HOAs have extinguished mortgages where the delinquent HOA dues amounted to a fraction of the balance on the mortgage claim the law gives the HOAs too much power. Furthermore, the Federal Housing Finance Agency (FHFA) issued a warning in December to HOAs that attach super-priority lien status to mortgages, saying that such loans will not push mortgages backed by Fannie Mae and Freddie Mac into the second- ary position because of the risk they pose to taxpayers while the GSEs are under the FHFA's conservatorship. FHFA general coun- sel Alfred Pollard testified before the Nevada State Legislature Judiciary Committee in early April, backing SB 306. "By way of summary, FHFA does find that most of the provisions of SB 306 improve the situation for lenders and secondary market participants in Nevada and support common interest communities, while we continue to have concerns with other sections of the exist- ing law and practices under that law," Pollard said in his testimony. e 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 if the unit owner does not, thus giving mortgagees the chance to protect their position. Other provisions of the bill include requiring the foreclosure notice to be published in a "public place" such as a newspaper or a county website and provide that if a payment is made to the HOA for the amount of the deficiency no later than five days before the foreclosure sale, then the HOA cannot legally extinguish the first lien. In his testimony in April, Pollard called this a "prudent approach." Currently, 22 states allow HOAs to attach super-priority lien status to mortgages. About 2.2 percent of all residential homes with a mortgage are in some state of foreclosure in Nevada as of April 2015, which is close to a third higher than the national average of 1.4 percent for the month, according to CoreLogic. KNOW THIS

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