In May of 2006 the national foreclosure numbers came in with a grand total of 62,432. This number quickly jumped up by 7.4% with one in 1,726 households in foreclosure by June. While the total number for June topped out at 67,024 - six states have made up for more than half of the nations total.

Texas, Florida, Georgia, Ohio, and Illinois hold rates higher than the national average. California also made it into the top six states, with an increase of 19%. These six states together account for over 37,000 of the national foreclosure totals. In June alone, Texas had the highest foreclosure rate, totalling 12,693 - a 69% increase from May, raising the state's foreclosure rate to 2.7 times the national average.

This data was compiled using RealtyTrac, and many have speculated that these numbers are a small indication of what we may be seeing in the years 2007 and 2008 due to the large numbers of mortgage resets scheduled to begin in January. So far, there is very little to indicate that these numbers are not a forecast of what is to come. With the great number of exotic loans and interest only mortgages in the hands of homeowners that are already financially strapped, there is a great chance that these numbers will continue to rise, and many will find foreclosure unavoidable.

The National Association of Securities Dealers, Inc. and the Conference of State Bank Supervisors have entered into an agreement to develop a nationwide licensing system for state residential mortgage regulators. This 18-month effort, which involves CSBS, the American Association of Residential Mortgage Regulators and the industry to develop uniform mortgage licensing applications that would be used by each state mortgage regulator. Industry leaders are hoping that the system will lead to benefits from access to a national licensing and enforcement repository, and will likely be the result of the uniform application process and produce more closely related regulations throughout the states.

There are quite a few industry skeptics with growing concerns about how such a system will be implemented, but there are a few states that are currently testing the forms for new license applications. We could be seeing this new system available as early as January 2008, and so far a total of 30 state agencies have agreed to participate in the system. An online mortgage banking compliance service, iComply, suggests that careful consideration should be taken when deciding what information will go into the new system. A pilot program was tested in Illinois, in which implementation issues were much more dificult than anyone anticipated.

Colorado becomes the 49th state in the U.S. to enact licensing or registrations of mortgage brokers, leaving Alaska as the last state lacking regulation on the mortgage industry. Governor Bill Owens signed the house bill enacting the Mortgage Broker Registration Act, which will require a mortgage broker (as defined below) to register with the state by January 1, 2007, although the act went into effect July 1, 2006.

The act defines a mortgage broker as anyone negotiating, originating, or offers to attempt to negotiate or originate. Originate (under the act) means to submit an applications or documentation to a lender or underwriter in an attempt to obtain a loan. After January 1, 2007 a person may not broker a mortgage, offer to broker a mortgage, act as a mortgage broker, or offer to act as a mortgage broker without first obtaining registration through the state of Colorado.

The act will also require registrants to pass a criminal background check, submit a disclosure of specified administrative discipline, and application fee, fingerprints, and a $25,000 bond or equivalent alternative. It also establishes criminal penalties for those who engage in any of these regulated activities without first obtaining the proper registration.

A bill designed to enable Idaho to readily convert to the national automated licensing system has made its way through the house recently. The state law, which will amend the Idaho Residential Mortgage Practices Act, will authorize the Director of the Idaho Department of Finance to participate in the implementation of a multi-state automated licensing system for mortgage brokers, lenders, and loan originators. Not all states currently require licensing, but many industry regulators are pushing hard for laws in all 50 states.  The multi-state program is being coordinated by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

While regulations continue to tighten in some states, others lack the necessary restrictions that would keep out people who are likely to commit crimes in the mortgage industry. Currently Colorado and Alaska are the two remaining lacking industry standards and regulation regarding who can and cannot call themselves a mortgage broker, loan officer, loan originator, etc. Mortgage brokers and loan originators have access to your personal financial information.

These facts should not only make those in the mortgage industry think about writing to their legislators, but homeowners and buyers alike should be alarmed in those states. Chances are, there are more than just a few felons in financial positions that shouldn't be, and stiffer regulations would weed them out, and prevent the likelyhood of fraudulent activity in the business.

7NEWS caught one of them in the act, a four time convicted financial felon, calling himself a mortgage broker in Colorado - Wayne Martin. 7NEWS not only uncovered one of these convicted felons in the mortgage biz, but caught him on tape lying about a few issues. He claimed that he and his company did 400 loans last year, 225 of which he claimed were done by him. When later confronted with the issue he corrected himself saying it was actually around 50. He also said that he has no criminal record, and when asked the second time, said he couldn't recall what his earlier answer had been. While all four of his convictions were prior to his business in mortgage origination, his crimes were financial in nature. Thanks for the story 7NEWS, we need this type of behavior to be brought to the public so that personal and private information can only be accessed by those who are least likely to commit crimes with the information. The more we all know about the matter, the better able we are to create solutions.

The mortgage business has always been attractive to those who crave flexibility in their careers, but Paul Wheeler has taken the freedom from the nine-to-five-grind to a whole new level. The Hopatcong, New Jersey guitarist not only maintains a Screen Actor's Guild membership, but takes mortgage applications as well, which has helped to pay for the expenses for his career as an up-and-coming artist. Working out of his home as a loan originator for Gateway Funding in Netcong, New Jersey, Wheeler conducts a lot of business over the phone. "I make my own schedule, it's flexible," he said. Both, he says, are people-oriented careers of integrity. "There's a lot of networking, you have to build a rapport and make them feel comfortable, and you always have to be honest and be sure what you say is going to happen, follow through and have good customer service," he adds.

Wheeler, 47, has been traveling from his home in Hopatcong, NJ to New York to appear in various TV shows and movies, including an upcoming episode of the Sopranos, Law and Order, Third Watch and Rescue Me. has appeared in a music video, a print ad for Metropolitan Life, a scene from War of the Worlds starring Tom Cruise. and to play rhythm guitar and sing in his classic rock band, Lost in Place. His own band, which also includes his brother, has been together for eight years entertaining at New Jersey area clubs and restaurants, charitable events, and an occasional wedding reception. And, although he began acting only a year and a half ago, his thespian career is steadily taking hold. He was recently cast with speaking roles in two independent films, The Mentor and Minority, but said that he would continue to write loans. "You just have to keep on going, going, going."

The Mortgage Asset Research Institute (MARI) has released their latest figures on mortgage fraud nationwide at the Mortgage Bankers Association's (MBA) National Fraud Issues Conference. Florida has replaced the once highest in the country as the hot-spot for mortgage fraud. Officials who attended the conference blame the decline in Georgia to the state's one year young law, which codifies mortgage fraud as a crime. New Jersey, Utah, Colorado, Oklahoma and California -- are considering similar legislation.  Colorado and Illinois are seeing more instances of fraud, while South Carolina has shown a marked improvement, according to the report.  Reported fraud in California is lower than it has been "in many years," the report also said.  "It shows the impact that state laws can have," California attorney Arthur Prieston, a specialist in fraud said. Utah's fraud problems have been consistently high, the report noted, even though the state has raised its standard for professional licensing and education and is pursuing more rigorous reporting requirements. 

Georgia's decline in fraud has been gradual, over two to three years. In 2003 they were rated at more than four times higher than the national average and far surpassed any state in the U.S. By 2004 they were only three times higher, and by 2005 they were just twice the national average. While Georgia remains the only state to specifically make loan fraud a criminal offense, their rate has only dropped to third highest in the country, and Utah moved up to second. The laws are getting people's attention according to Georgia attorney general, Thurbert Baker at the conference.

Democratic Gubernatorial Candidate Eliot Spitzer promised to direct the State of New York Mortgage Authority to provide "reverse mortgages" for New York seniors.  The mortgage authority serves primarily moderate- and low-income home buyers.  Spitzer wants seniors to be able to tap into their home equity to pay for home repairs and health costs.

According to wire reports, Spitzer said while announcing his proposal before the New York StateWide Senior Action Council, "Most seniors want to live in their homes and communities as long as they possibly can.  Yet too many seniors have little choice but to opt for institutional care they do not want, and do not need ... our government has for too long avoided being creative and innovative in developing programs for our seniors."

Reverse mortgages can be an excellent alternative that allows seniors to stay in their homes.  But, do seek legal advice before signing any reverse mortgage contract and be certain you understand the implications both for yourself and your heirs.

Dominion Homes Inc. and Wells Fargo Home Mortgage Inc. have finalized their mortgage-banking joint venture.

The new business, dubbed Centennial Home Mortgage LLC, will originate and fund mortgages for potential Dominion customers in the homebuilder's markets in Ohio, Kentucky and Indiana, as well as the general public.

The business will take over the mortgage-origination services, including qualifying borrowers and processing applications, previously handled by Dominion's mortgage-brokerage arm, Dominion Homes Financial Services Ltd.

A San Jose woman was arrested Tuesday on charges she conspired to defraud mortgage lenders by falsifying borrowers' financial backgrounds. Melissa Renee Duran-Casaus, 32, also is charged with three counts of grand theft from some of the lenders for the amounts of the real estate loans that were paid out based on the false information she submitted to them.

According to court documents, she allegedly worked for a local insurance broker when she was asked by a real estate agent to handle employment verification inquiries from lenders in return for payment. Prosecutors say she falsely stated that the loan applicants had worked at the insurance brokerage for a number of years and were earning relatively high wages. If convicted of all the charges Duran-Casaus faces up to seven years and four months in prison.

An anti-predatory lending law in Montgomery County, Maryland has been suspended for at least four months by a state judge until after hearing the full case in early July.

The legislation would have been the first anti-predatory lending law in the nation to tie abusive lending with civil rights laws. A lender deemed to be in violation of the law would have faced penalties of up to $500,000.

About 40 lenders had ceased operations in Montgomery County as the law was set to be enacted.