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Bureau of Financial Institutions
OTHER PFR AGENCIES |
FOR IMMEDIATE RELEASE January 2, 2009
Contact: Lloyd P. LaFountain III, Superintendent
Bureau of Financial Institutions’ Survey Shows Foreclosures Continue to Trend Upward but Overall Numbers Are Relatively AUGUSTA, MAINE – Superintendent Lloyd P. LaFountain, III announced on Friday that recently completed analysis of 2008 third quarter data by the Bureau of Financial Institutions shows a continuing modest increase in home foreclosures in Maine. The analysis, however, also continues to indicate that overall foreclosure numbers remain relatively small and do not pose a threat to the stability of state-chartered banks and credit unions. This most recent data on residential real estate lending was obtained from Maine’s 33 state-chartered financial institutions from July through September 2008. The Bureau has been surveying state-chartered banks and credit unions regarding foreclosure activity since October 2006. Additionally, federally-chartered banks and credit unions operating in Maine have been surveyed, with a majority voluntarily providing responses to survey questions concerning this two year period of loan activity. The survey does not, however, contain data from mortgage companies licensed to do business in Maine, but not regulated by the Bureau of Financial Institutions. “Maine’s Bureau of Financial Institutions continues to closely monitor home foreclosure activity and its impact on banks and credit unions,” Superintendent LaFountain commented. “Activity during the third quarter of this year shows a continuing modest increase in foreclosures. While each foreclosure is a personal tragedy, the number of foreclosures does not threaten the strength and stability of Maine-chartered financial institutions.” According to third quarter survey results, Maine’s 33 state-chartered financial institutions held 87,893 mortgage loans at the end of June, consisting of nearly 50,000 first mortgage loans and more than 38,000 junior lien mortgage loans (including home equity lines of credit). Of the 87,893 loans, 204 (140 first mortgages and 64 junior lien mortgages) were in process of foreclosure (IPF), or one loan for every 431 mortgages (one for every 356 first mortgages). This continues the ongoing upward trend since 2006. During the second quarter of 2008, 187 loans were in IPF status. As a percentage of total mortgages, though, IPF loans remain low, 0.23% during the third quarter (up from 0.22% during the second quarter of 2008).
% of Quarter-end Loans
Beginning with the 2008 first quarter survey (January-March, 2008), data on the number of foreclosures initiated in the current quarter was requested. During the third quarter of 2008, foreclosure proceedings began on 69 first mortgages, 0.14% of all outstanding first mortgages, or one for every 721 first mortgages. This is up from 35 initiated foreclosures during the second quarter (one for every 1,049 first mortgages) and 46 during the first quarter (one for every 1,377).
The Bureau also requests data on completed foreclosures (FC). The table below shows numbers increasing from 52 in 2006 to 67 in 2007. There were 28 completed foreclosures during the first three months of 2008. During the second quarter of this year, completed foreclosures jumped to 43 (0.05% of mortgages outstanding at the end of March). In the third quarter, the number increased again to 51 (0.059% of mortgages outstanding at the end of June). Notwithstanding the increase, the number of FC remains low, especially in relation to the total number of outstanding mortgages – one for every 1,723 mortgages and one for every 1,269 first mortgages.
% of Prior Quarter-end Loans
* 2006 percentage is based on number of loans outstanding at 12/31/06;
Although data collected from federally-chartered financial institutions operating in Maine was more limited, it suggests comparable upward trends and relatively modest foreclosure activity, particularly when compared to the overall number of mortgages or the amount of foreclosures in other states. Data collected in the Bureau’s surveys are limited to Maine financial institutions, and primarily Maine state-chartered institutions. Results may therefore differ from those presented by national organizations such as RealtyTrac, the Mortgage Bankers Association (with nearly 143,000 first lien mortgages in Maine) or First American CoreLogic (with approximately 15,000 subprime and Alternate-A owner-occupied first mortgages in Maine). More information on the status of residential real estate lending by Maine’s financial institutions is available in the Bureau’s 2008 Annual Report to the Legislature, which can be found at www.maine.gov/pfr/financialinstitutions/reports/pdf/legrep2008.pdf. The 2009 Annual Report will be available online by the end of January. The Bureau of Financial Institutions is part of the Department of Professional and Financial Regulation, which encourages sound ethical business practices through impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through the Department’s website (www.maine.gov/pfr); by calling 1-800-965-5235 or by writing to Bureau of Financial Institutions, 36 State House Station, Augusta, Maine 04333.
Last Updated: January 13, 2009 |
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