What State Is Number one for Foreclosures In 2006.

My partner was in a closing a few day ago and the closing agent mentioned that Des Moines had the highest %

increase in the nation followed by Colarado. Searching Google new didn't give me any results. I know realty trac

provides some number on this But I really would like to find a news source for this data. Here is a link

http://www.allamericanpatriots.com/m-news+article+storyid-19529.html.

The article states that foreclosures are up 64% but does not give a source for this stat. The article also discuses

the largest consumer settlement in Iowa's with history. Do to predatory lending practices 3.5 Million was given back

to Iowa consumers.

The Iowa Attorney General Has proposed a bill to protect consumers and fight predatory lending. Here Is a copy of an outline of the bill:

1. Fight unfair lending practices by lenders, mortgage bankers or mortgage brokers:

• “Flipping” consumers -- refinancing their loan without a net tangible benefit.
  
  
• Advertising loan terms that are not available to a reasonable number of qualified applicants.
  
  
• Fabricating a consumer’s income to qualify the consumer for a loan.
  
  
• Misrepresenting a consumer’s credit rating or status.
  
  
• Promising to refinance a consumer at a later date on better terms (unless the promise is put in writing.)
  
  
• Imposing anti-free-market contract terms that make borrowers responsible for origination costs even if the loan does not close.
  
  
• Making loans without verifying the borrower’s ability to repay the loan.
  
  

2. Improve Standards for Mortgage Bankers and Mortgage Brokers. The bill specifies certain standards of conduct for mortgage bankers and mortgage brokers by requiring them to:

• Safeguard and account for the borrower’s money.
  
  
• Affirmatively disclose facts that materially affect the borrower’s rights and interests.
  
  
• Follow reasonable instructions from the borrower.
  

For mortgage brokers, the proposal specifies additional requirements that mirror the representations already made by mortgage brokers, by requiring them to:

• Make reasonable efforts to comparison-shop for a loan that is reasonably advantageous to the borrower.
  
  
• Put the borrower in a loan that is in the borrower’s best interests.

3. Limit Discount Points: The bill builds on current Iowa law that makes it unlawful to impose discount points that do not buy down mortgage interest rates, by barring imposition of discount points in loans which include a “yield-spread premium.” (A yield-spread premium is an amount of interest that is above the rate the borrower actually qualifies for. That difference is then paid in whole or in part to a mortgage broker as part of the compensation for the loan. Example: A borrower who qualifies for a 7% interest rate, but is charged 8%; the difference of 1% is the yield-spread premium.) It is inherently unfair to tell a consumer he or she is paying a discount point to buy down a loan interest rate when, in fact, the broker receives a yield-spread premium resulting in a higher interest rate for the consumer.

4. Establish a Mortgage Lending Fraud Prosecution Fund: The fund would be administered by the Attorney General for investigation and prosecution of frauds related to mortgage lending. The funding source would be a surcharge imposed by the county recorder at the time of recording of each mortgage. The recorder could retain up to 5% of the funds for administration costs, with the remainder being transmitted monthly to the State Treasurer for deposit into the fund. The funding would support personnel, expert witness fees, and other costs related to civil and criminal prosecutions of mortgage lending fraud.

5. Provide Remedies: Violations of the statute would be enforced by the Attorney General under the Consumer Fraud Act, and by the Iowa Division of Banking under its regulatory authority. Private remedies for consumers also are included in the bill.

The attorney General Has also noted that the creation of a secondary market has made lenders standards much more lax.