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80 Indiana RANK: 17 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 2.14% 1.73% 5.4 YEAR AGO 2.63% 2.07% 6 YEAR-OVER-YEAR CHANGE -18.6% -16.4% -0.6 Top County LAWRENCE COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 3.10% 4.00% YEAR AGO 4.21% 3.69% YEAR-OVER-YEAR CHANGE -26.3% 8.4% Top Core-Based Statistical Area BEDFORD, IN 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 3.10% 4.00% YEAR AGO 4.21% 3.69% YEAR-OVER-YEAR CHANGE -26.3% 8.4% 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 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. Iowa RANK: 27 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 1.17% 1.29% 3.8 YEAR AGO 1.48% 1.61% 4.4 YEAR-OVER-YEAR CHANGE -20.7% -19.9% -0.6 Top County KEOKUK COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.35% 3.62% YEAR AGO 2.07% 2.28% YEAR-OVER-YEAR CHANGE -34.9% 58.8% Top Core-Based Statistical Area FORT MADISON-KEOKUK, IA-IL-MO 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 2.03% 4.08% YEAR AGO 3.01% 3.37% YEAR-OVER-YEAR CHANGE -32.6% 21.1% 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. Kansas RANK: 29 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 1.66% 1.10% 4.3 YEAR AGO 2.06% 1.10% 4.5 YEAR-OVER-YEAR CHANGE -19.6% -0.2% -0.2 Top County LABETTE COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 3.06% 4.94% YEAR AGO 3.57% 1.60% YEAR-OVER-YEAR CHANGE -14.3% 209.1% Top Core-Based Statistical Area PARSONS, KS 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 3.06% 4.94% YEAR AGO 3.57% 1.60% YEAR-OVER-YEAR CHANGE -14.3% 209.1% 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. Michigan RANK: 44 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 1.53% 0.61% 5.4 YEAR AGO 2.06% 0.85% 7.5 YEAR-OVER-YEAR CHANGE -25.8% -28.2% -2.1 Top County DICKINSON COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.89% 1.49% YEAR AGO 2.45% 0.98% YEAR-OVER-YEAR CHANGE -23.0% 52.5% Top Core-Based Statistical Area IRON MOUNTAIN, MI-WI 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.80% 1.32% YEAR AGO 2.45% 0.98% YEAR-OVER-YEAR CHANGE -26.7% 34.6% 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 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 Michigan's Non- Recourse Mortgage Loan Act Upheld As Constitutional By Jonathan L. Engman, Esq., Fabrizio & Brook, P.C. Non-recourse loans have become more appealing to borrowers after several recent decisions in Michigan. When a loan is non-recourse, a lender may only foreclose on default and may not pursue the borrower, as long as the borrower maintained a single purpose entity ("SPE") and did not violate one of the enumerated carve-outs of the loan agreement. Michigan has an act that regulates non-recourse loans known as e Non-Recourse Mortgage Loan Act (NMLA) which gives more protection to the borrower by specifically providing, among other things, that post closing insolvency can not be used as a carve out allowing the lender to pursue the borrower. is Act has been challenged as unconstitutional both in the state and federal courts. A recent decision by the 6th Circuit, Borman, LLC v 18718 Borman, LLC, affirmed that the Act is constitutional. In Borman the defendant defaulted on a Commercial Mortgage Backed Securities ("CMBS") loan, which was non-recourse and had standard carve out language. e Plaintiff claimed the defendant's insolvency violated the SPE agreement and therefore, triggered recourse liability. e Plaintiff brought suit in federal court raising several issues including the constitutionality of the NMLA. Specifically, the Plaintiff argued that the Michigan statute violated the contract clauses of the federal and state constitutions, in addition to the principles of substantive due process and the separation of powers. e Sixth Circuit Court of Appeals held that the NMLA did not substantially impair the Plaintiff 's expectations under the contract, did not violate due process because the concerns facing Michigan citizens were significant, and did not create a separations of power problem. In upholding the NMLA, these rulings should stabilize commercial lending in Michigan and allow developers to obtain non-recourse loans with a clear understanding of their responsibilities under the carve out provisions of the loan agreement.