Mortgage Delinquencies in Kansas Rise in Latest MBA National Delinquency Survey In November 2007, the federal banking agencies, the NCUA, and the FTC issued the final rules and guidelines regarding the Identity Theft Red Flags Rules and Address Discrepancies, under the Fair and Accurate Credit Transactions Act of 2003 (FACTA), implementing Sections 114 and 315 of FACTA, that amended the Fair Credit Reporting Act (FCRA). The Red Flags Rules and Guidelines implement Section 114 of FACTA, which applies to “financial institutions” and “creditors” (including all Mortgage Brokers and Mortgage Bankers), require the implementation of methodologies to detect, prevent and mitigate identity theft in connection with covered accounts and to establish policies and procedures to assess the validity of a change of address. The Red Flags Rules became effective January 1, 2008, with full compliance by the enforcement deadline of November 1, 2009. This is your last chance to comply. There will be no more extensions of the deadline. You must be ready by November 1, 2009.
SEPTEMBER 2009
KANSAS MORTGAGE PROFESSIONAL MAGAZINE
www.NationalMortgageProfessional.com
On Thursday, Septmber 24 and again on Thursday, October 15 (both dates at 12:00 p.m. EDT), please be our guest to hear featured National Mortgage Professional Magazine author, Jonathan Foxx, present a 60 minute webinar that will give you a comprehensive look at what you need to do to be prepared for Red Flags enforcement. This is a FREE webinar for National Mortgage Professional Magazine readers.
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Jonathan Foxx, former chief compliance officer for two of the country’s top publicly-traded residential mortgage loan originators, is the President and Managing Director of Lenders Compliance Group, a national and well-respected mortgage risk management firm devoted to providing regulatory compliance services, guidance, and counsel to the mortgage industry. Jonathan Foxx
In this 60 minute webinar, you will learn: What are the REAL deadlines that I need to be ready for? What are the applicable statutes and definitions? What are the components of an Identity Theft Prevention Program (ITPP)? How do I assess my risk? How do I administer the program? What are the risk factors and the indicators of identity theft? The 26 Red Flag components and what applies to you! What is the structure and contents of an Identity Theft Prevention Program? How to implement your ITPP? What should be management’s response to suspicious activity and violations? Why it is important to maintain and update your policy? What are the penalties for violations of the ITPP?
Jonathan will also be available for a brief question and answer session.
For more information visit NMPMag.com/FREERedFlagsWebinar
The delinquency rate for mortgage loans on residential properties in Kansas was 6.88 percent at the end of the second quarter of 2009, an increase of 73 basis points, according to the Mortgage Bankers Association (MBA). The delinquency rate excludes loans in the process of foreclosure. The percentage of loans in Kansas on which foreclosure was started during the quarter fell five basis points to 0.69 percent, while the percentage of loans in the foreclosure process at the end of the quarter rose 10 basis points to 2.05 percent. These rates are not seasonally-adjusted. Mortgage delinquency rates normally drop in the first quarter of the year and begin to climb again in the second quarter due to a variety of seasonal factors. The delinquency rate for prime adjustable-rate mortgage (ARM) loans increased 114 basis points to 7.62 percent and the rate for prime fixed-rate mortgage loans increased 44 basis points to 3.77 percent. The delinquency rate for the sub-prime ARM loans increased 178 basis points to 27.45 percent, while the rate for sub-prime fixed-rate loans increased 328 basis points to 18.85 percent. The delinquency rates for FHA and VA loans were 11.08 percent and 6.78 percent, respectively—up 93 basis points for FHA loans and up 66 basis points for VA loans. The foreclosure start rate for prime ARM loans in Kansas increased 13 basis points to 0.92 percent, while the rate for prime fixed-rate loans increased seven basis points to 0.4 percent. The foreclosure start rate for sub-prime ARM loans decreased 117 basis points to 3.54 percent, while the rate for sub-prime fixed rate loans decreased 19 basis points to 1.71 percent. The percentage of prime ARM loans in foreclosure increased 48 basis points to 3.73 percent and increased 13 basis points to 1.13 percent for prime fixed rate loans. The rate for sub-prime ARM loans increased 26 basis points to 12.69 percent, while the rate for sub-prime fixed rate loans increased 2 basis points to 4.47 percent. The percentage of FHA loans in foreclosure remained unchanged at 2.32 percent. The percentage of VA loans in foreclosure increased three basis points to 1.7 percent. Among the 50 states and the District of Columbia, Kansas ranked 35th in delinquencies and 43rd in foreclosures started. Mississippi ranked first in delinquencies with a rate of 13.04 percent and Nevada ranked first in foreclosure starts with a rate of 3.70 percent. Kansas has 23 percent non-prime borrowers (FHA and sub-prime) versus a national average of 19 percent. On a national level, the delinquency rate for mortgage loans on one-tofour-unit residential properties was 8.86 percent on a non-seasonally-adjusted basis, up 64 basis points from 8.22 percent in the first quarter of 2009. The seasonally-adjusted delinquency rate on residential properties was 9.24 percent in the first quarter, up 12 basis points from last quarter’s seasonallyadjusted rate. The non-seasonally-adjusted percentage of loans in which foreclosure was started during the quarter fell one basis point to 1.36 percent, while the non-seasonally-adjusted percentage of loans in the foreclosure process at the end of the quarter rose 45 basis points to 4.3 percent. For more information, visit www.mortgagebankers.org.
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