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ยป VISIT US ONLINE @ DSNEWS.COM 107 Massachusetts RANK: 17 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate JUNE 2015 2.23% 1.76% 4.6 YEAR AGO 3.47% 1.42% 5.7 YEAR-OVER-YEAR CHANGE -35.7% 24.4% -1.1 Top County FRANKLIN COUNTY 90+ Day Foreclosure Delinquency Rate Rate JUNE 2015 4.11% 3.65% YEAR AGO 5.63% 2.88% YEAR-OVER-YEAR CHANGE -27.1% 26.6% Top Core-Based Statistical Area GREENFIELD TOWN, MA 90+ Day Foreclosure Delinquency Rate Rate JUNE 2015 4.11% 3.65% YEAR AGO 5.63% 2.88% YEAR-OVER-YEAR CHANGE -27.1% 26.6% 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 June 2015 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2015 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. IN THE NEWS Massachusetts Supreme Court Requires Strict Compliance with Mortgage Default Notice Provisions By Attorney Eva Massimino (Bendett & McHugh, P.C.) On July 17, 2015 the Massachusetts Supreme Judicial Court ("SJC"), in Pinti v Emigrant Mortgage Company, held that strict compliance with the notice of default provisions of the mortgage is required in order to be able to foreclose non-judicially by power of sale. At the heart of the matter, paragraph 22 of the Fannie Mae/Freddie Mac Uniform Mortgage required Emigrant to, among other things, inform the borrower of "the right to bring a court action to assert the non-existence of default or any other defenses of borrower to acceleration and sale." Emigrant's notice fell short in that it stated that the borrowers "have the right to assert in any lawsuit for foreclosure and sale the non-existence of any default or any defense borrowers may have to acceleration and sale." Although Emigrant's notice did not align with the specific language contained in paragraph 22, Emigrant argued that since its notice was otherwise compliant with para- graph 22, the foreclosure was not void because the notice of default has substantially complied with the mortgage notice of default require- ments. e SJC rejected this argument as the power of sale statute required the mortgagee to comply with all terms of the mortgage before exercising the power of sale. e SJC held that only strict compliance with the terms of the mortgage (and the terms of the power of sale statute) would result in a valid foreclosure sale. Because Emigrant's notice inferred that Emigrant would bring a foreclosure lawsuit in which the borrower could raise defenses, when in fact, since Massachusetts is a non-judicial foreclosure state and, borrower would have to initiate a lawsuit to raise any defenses, the SJC held that the notice did not comply with notice of default provisions in the mortgage. Going forward title companies will likely require an affidavit to be recorded with the deed package certifying that the notice of de- fault complied with the terms of the mortgage. e notice of default required by the mortgage is in addition to the statutory requirements to send a 150 notice of residential real property mortgagor to cure default and a notice of right to pursue a modified mortgage under 244 M.G.L. Sections 35A and 35B. Servicers and law firms should verify that notices of default strictly comply with the provisions of the mortgage governing same. New Hampshire RANK: 35 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate JUNE 2015 1.53% 0.90% 3.8 YEAR AGO 2.01% 1.02% 4.3 YEAR-OVER-YEAR CHANGE -23.8% -12.0% -0.5 Top County SULLIVAN COUNTY 90+ Day Foreclosure Delinquency Rate Rate JUNE 2015 2.80% 1.93% YEAR AGO 3.21% 1.58% YEAR-OVER-YEAR CHANGE -12.9% 22.0% Top Core-Based Statistical Area BERLIN, NH-VT 90+ Day Foreclosure Delinquency Rate Rate JUNE 2015 2.22% 1.88% YEAR AGO 2.61% 1.84% YEAR-OVER-YEAR CHANGE -15.2% 2.2% 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 June 2015 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2015 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. New Jersey RANK: 1 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate JUNE 2015 2.64% 4.92% 6.1 YEAR AGO 3.20% 6.11% 6.5 YEAR-OVER-YEAR CHANGE -17.4% -19.6% -0.4 Top County SALEM COUNTY 90+ Day Foreclosure Delinquency Rate Rate JUNE 2015 4.39% 9.57% YEAR AGO 5.49% 10.70% YEAR-OVER-YEAR CHANGE -20.1% -10.6% Top Core-Based Statistical Area VINELAND-BRIDGETON, NJ 90+ Day Foreclosure Delinquency Rate Rate JUNE 2015 5.76% 8.03% YEAR AGO 6.65% 9.71% YEAR-OVER-YEAR CHANGE -13.4% -17.3% 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 June 2015 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2015 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. The number of foreclosure petitions filed in June 2015 in Massachusetts, an 81 percent increase from June 2014's total of 488. Source: The Warren Group STAT INSIGHT 886