Back in April of this year, I posted a blog entry titled “Idaho Fares Better Than Most Other States on Mortgage Issues.” My how times have changed!
According to RealtyTrac’s September 2008 U.S. Foreclosure Market Report, Idaho’s luck recently changed, and not in a good way. The number of housing units in Idaho receiving a foreclosure filing during the month of September was up nearly 40% from the previous month and up a whopping 65% from one year ago. With the state’s foreclosure problems now causing it to be ranked the 14th worst in nation, a new manual to help Idaho consumers avoid mortgage fraud and foreclosure has just been made available from state’s Attorney General’s office.
The publication, simply titled “Mortgage Fraud and Foreclosure,” is free and includes information about mortgage fraud, foreclosure rescue schemes, and foreclosure prevention. It also describes consumers’ rights and remedies under related laws, such as the Real Estate Settlement Procedures Act (RESPA) and the Home Ownership Equity Protection Act, and provides contact information for a variety of real estate-related resources for consumers.
“Mortgage Fraud and Foreclosure” is available free to anyone with Internet access. Idaho residents may be able to receive a free copy in the mail by calling the Idaho Attorney General’s office at (208) 334-2424.
The director of the Idaho’s Department of Finance said this week that Idaho’s financial institutions are a “beacon of good news,” which is in stark contrast to the nation’s mortgage crisis. The state’s mortgage delinquencies are well within the range established over the last 20 years. In fact, Idaho’s annual delinquency figure was lower than that for 10 of the past 20 years (3.86% of total mortgages, compared with the nationwide number of 6.31%). The percentage of all Idaho mortgage loans reported as foreclosure-started for 2007, at 1.47%, was also within the range of the past 20 years, and is nearly half the 2.84% reported nationwide.
Contrary to the increasing number of news stories about large money center financial institutions (e.g. Bear Stearns) experiencing significant losses connected to mortgage defaults, Idaho’s banks are showing continued strength, with key performance indicators outpacing nationwide numbers. For example, in 2007, Idaho banks out-performed banks nationwide in loan and asset growth rates, and reported significantly smaller percentages for non-current loans and net charge-offs.
Maybe its time the rest of the nation took at how the 43rd state is handling its business. In January, Idaho became only one of seven states requiring that all new applications for mortgage licensure be processed through the new Nationwide Mortgage Licensing System (NMLS) and that existing licensees transition their current license information onto the NMLS by September 1 of this year. The NMLS is streamlining the licensing process for both regulatory agencies and the mortgage industry by providing a centralized and standardized system for mortgage licensing. NMLS is owned and operated by the State Regulatory Registry LLC, a wholly owned subsidiary of the Conference of State Bank Supervisors (CSBS). NMLS is a joint project of CSBS and the American Association of Residential Mortgage Regulators (AARMR) begun several years ago with the goals of improving supervision, streamlining compliance and enhancing consumer protection.
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