Maine Banking, Community Bank News

Superintendent Lloyd P. LaFountain III announced this week that the Bureau of Financial Institutions’ third quarter survey covering first residential mortgage loans held by Maine’s 32 state-chartered banks and credit unions continued to show mixed performance. As such, there still is no clear trend or indication that the bottom has necessarily been reached.  Click here for the full report.

Maine Bankers Association sponsored the December 3 Coats for Kids Day by making a generous donation to the Salvation Army.  Bank volunteers provided hot chocolate and cookies throughout the day at six of the Coats for Kids live broadcast locations throughout Maine.   The following member banks are collecting Coats for Kids at their branch locations:

Bath Savings Institution
Camden National Bank
First Fed Savings & Loan Assn. of Bath
Franklin Savings Bank
Gorham Savings Bank
Katahdin Trust Company
     (Bangor and Hampden locations)
Kennebec Federal Savings
Machias Savings Bank
Mechanics Savings Bank
Norway Savings Bank
Rockland Savings Bank
Saco & Biddeford Savings Institution
Sanford Institution for Savings
The First, N.

Visit our facebook page  for photos!

Maine’s real estate market continues to show signs of improving.  Click here  to see the complete October 2011 MaineHousing Report.

Seriously Delinquent Mortgage Loans Decrease at Maine Banks and Credit Unions and New Mortgage Loan Starts Rise, but Foreclosure Activity Continues to Increase. Click here to see the full BoFI press release. 

Maine Real Estate Sales increase by double digits.   Click here  for the full August 2011 MaineHousing report.

All Maine Licensed Mortgage Loan Originators intending to originate Maine loans in 2012 must renew their license through the Nationwide Mortgage Licensing System and Registry (NMLS) between November 1, 2011 and December 31, 2011. The BCCP letter provides important information about the 2012 NMLS Renewal Process including the reminder that all records must be up-to-date at the time of renewal.

Effective on September 28, 2011, Maine’s revised Truth-in–Lending Laws (Title 9-A M.R.S.A.§ 8-509(1)) need to be understood by retailers to avoid violating the surcharge and discounting rules.  While a merchant’s may offer discounts to consumers to encourage them to use alternative forms of payment in lieu of debit or credit cards; a seller in a sales transaction may not impose a surcharge on a cardholder who elects to use a credit or debit card in lieu of payment by cash, check or similar means.

• A surcharge is an increase in the “regular” price to a card holder that is not imposed on a customer paying by cash or check.
• A discount, on the other hand, is a reduction made from the “regular” price and, by definition, does not result in a surcharge.

Merchants should clearly display the amount of the regular price and the amount of the discounted price.  See the July 12, 2011 Notice from the Bureau of Consumer Credit Protection and the Bureau of Financial Institutions.

Maine’s Office of Securities is conducting a public awareness campaign to highlight the most prevalent investor traps and scams of 2011.  Click here for the full article.

The most recent Critical Insights on Maine^TM Poll conducted of 600 registered Maine voters from May 5-9, 2011 highlights economic concerns of Maine residents.  Click here  for the poll in its entirety.

The most recent Pan Atlantic SMS Group Omnibus Poll^TM conducted April 25-May 2, 2011, included a section of questions on the use of online banking.  Click here  for the full report on the online banking questions and demographic information on respondents.

Beginning during the week of February 7 to 11, 2011, banks in this association became aware of an increased number of unauthorized transactions occurring in their bank’s debit cards. An unknown number of card numbers may have been compromised during an intrusion of a retailers’ computer system.  This breach appears to be limited to only card numbers and NOT personal data (such as SS# or DOB) has been compromised.

1. ACCOUNT BALANCE IS PROTECTED - Consumers do not have to worry about losing any money due to this breach because they have zero liability for unauthorized transactions confirmed as part of a breach provided the unauthorized transactions are reported within the timeframe required by individual institutions. (See Specific Rules Below)
2. MONITOR - Banks are asking consumers to monitor their accounts for fraudulent transactions and report any unauthorized transactions to their bank immediately.

What should I do to protect myself?

Additional information from State of Maine: http://tinyurl.com/4sm2ayl

Chris Pinkham                                                                   Kathy Keneborus
This e-mail address is being protected from spambots. You need JavaScript enabled to view it                                     This e-mail address is being protected from spambots. You need JavaScript enabled to view it
(207) 791-8401                                                                   (207) 791-8406

The press release from Maine Association of Realtors reflecting Maine home sales statistics for December 2010 and the full year 2010.

AUGUSTA, MAINE – Bureau of Financial Institutions Superintendent Lloyd P. LaFountain, III announced on Monday that third quarter 2010 data shows an overall decrease in home foreclosure activity at state-chartered banks and credit unions in Maine.  Especially promising is the reduction in new delinquencies and foreclosure starts, both leading indicators of future foreclosures.

However, an increase in seriously delinquent first mortgages suggests that the foreclosure problem will persist into 2011.  Foreclosure activity at Maine banks and credit unions remains lower than in many other states and it does not pose a threat to the stability of Maine-chartered financial institutions. 

In other encouraging news, the number of new first mortgage loans initiated in the third quarter increased by 24% from the prior quarter and, for the first time in 2010, exceeded the originations for the comparable quarter of 2009.  The growth in originations is attributed to the record low interest rates which have spurred increased refinancing activity.  Also contributing to the higher originations was the expiration of the federal housing tax credit which led to higher home sales by requiring a mortgage closing by September 30, 2010.

The most recent data covers July through September 2010.  It pertains to residential real estate lending and was obtained from the 32 financial institutions (banks and credit unions) that have been state-chartered in Maine from the end of 2006 through September 2010.  The Bureau has been surveying state-chartered banks and credit unions regarding foreclosure activity since October 2006.  The survey does not include data from entities not regulated by the Bureau, which include federally-chartered banks, federally-chartered credit unions and mortgage companies licensed to do business in Maine.  

According to third quarter survey results, the 32 state-chartered financial institutions held 83,008 mortgage loans at the end of September, consisting of 47,774 first mortgage loans and 35,234 junior lien mortgage loans (including home equity lines of credit).  Of the 83,008 loans, 265 (216 first mortgages and 49 junior lien mortgages) were in process of foreclosure (IPF), or one loan for every 313 mortgages (one for every 221 first mortgages).  At the end of the second quarter of 2010, 297 loans were in IPF status.  As a percentage of total mortgages, IPF loans remain relatively low, 0.32% at the end of the third quarter (down marginally from 0.36% at the end of the second quarter of 2010). 

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 2010, foreclosure proceedings were started on 52 first mortgages, 0.11% of all outstanding first mortgages, or one for every 919 first mortgages.  This represents the third consecutive quarter of noticeable decrease from the prior quarter and the lowest level since June 2008.  Foreclosure proceedings initiated on junior mortgages also continued on a downward trend.

The Bureau also requests data on completed foreclosures (FC).  As seen in the table below, the number of FC more than doubled in 2008 and increased further in 2009, to 175.  This trend has continued through the first three quarters of 2010, with 132 FC this year vs. 89 for the comparable period of 2009.  After declining slightly in the second quarter, the number of first mortgages foreclosed in the third quarter of 2010 was the highest recorded to date.  The number of junior lien mortgages foreclosed decreased for the second consecutive quarter.  The total number of FC reached their apex in the first quarter of 2010 and has declined in each of the second and third quarters.  Although FC remain elevated, the number remains low in relation to the total of outstanding mortgages – only one for every 1,437 mortgages and one for every 1,028 first mortgages.  

*Annual percentage is based on number of loans outstanding at 12/31/06;
**Annual percentage is based on average number of loans outstanding in the year.

 More information on the status of residential real estate lending by Maine’s financial institutions is available in the Bureau’s 2010 Annual Report to the Legislature, which can be found at www.maine.gov/pfr/financialinstitutions.  The Bureau’s 2011 Annual Report, which will be available in mid-January 2011 at the same website, will include a more detailed discussion of the foreclosure survey and residential real estate lending.

The Bureau of Financial Institutions is part of the Department of Professional and Financial Regulation, which encourages sound ethical business practices through impartial 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.

Senators Snowe and Collins have addressed Interchange Fees in a letter to Fed Chairman Bernanke on December 10^th prior to Fed issuing proposed regulations. 

“The past several months brought an unusually high level of activity for the Bureau’s foreclosure prevention program.  Maine homeowners have been receiving mortgage default notices from their lenders at an unprecedented rate, resulting in more mailings of information from our office than at any previous time.  And since our mailings highlight the availability of the agency’s toll-free hotline and our no-cost housing counselor referral service, calls to our Bureau’s hotline are occurring with greater frequency than at any time since establishment of the hotline in June, 2009.”  Read the full report: http://www.maine.gov/pfr/consumercredit/LegislativeReports.htm

See the complete September 2010 MaineHousing Report  for all the details. 

October 25, 2010 - VOTER INFORMATION LOOKUP - The State of Maine Voter Information Lookup Service is now live.  Everyone can find what will be on their ballot based on your home address. This information includes the location of your voting place and the candidates that will appear on your ballot.  Check out voter information lookup.

August home prices increased 4.27% and reached $169,750, compared with August 2009. Unit home sales in Maine decreased 9.52% during the same period.  Click here for the August 2010 Maine Housing Report.

Sept 17 - Bureau of Financial Institutions announced that in the second quarter 2010, Maine state-chartered banks and credit unions had a decrease in completed home foreclosures for the second consecutive quarter, a decrease in the number of delinquent mortgage loans.   Read full Bofi Press Release here.

The FDIC has received numerous reports of suspicious telephone calls where the caller claims to represent the FDIC and is calling regarding the collection of an outstanding debt.  http://www.fdic.gov/news/news/SpecialAlert/2010/sa10131.html

Maine real estate sales decline in July: tax credit expiration cited as factor.  Click here to see the July.  Click here  for the full July 2010 Maine Housing Report.

Home Foreclosures Continue to Increase but Delinquent Mortgage Loans Decrease at Maine Banks and Credit Unions.  Click here for complete article from Maine.Gov.

MACB IS NOW MBA; JIM CONLON IS THE NEW CHAIRMAN

At the 117^th Annual Meeting June 24 in Bar Harbor, the members of the Maine Association of Community Banks voted to change the name of their organization to the Maine Bankers Association.  Mark Mickeriz of Sanford Institution for Savings accepts the past chairman’s plaque from incoming chairman Jim Conlon of Bangor Savings Bank.  The name change is effective immediately, and over the next several weeks the Association will work to update the website, email addresses, forms, signs and printed materials to reflect the new name.

May 18 - Maine to Join Nationwide Mortgage Licensing System - Beginning on October 1st, all mortgage loan originators doing business with Maine consumers must obtain licenses from the Nationwide Mortgage Licensing System (NMLS).  All employees of federally regulated financial institutions are exempt because they are already supervised by the bank or credit unions’ prudential regulator.  The Bureau of Consumer Credit Protection will manage the procedures include background checks, professional education requirements and successfully passing a national and a state-specific test.

May 12^th -  GOVERNOR BALDACCI ADDRESSES 34TH ANNUAL DIRECTORS’ FORUM. Over 180 attendees welcomed Governor John Baldacci at the Directors’ Forum on Wednesday.  The Governor began by thanking Maine’s bankers for supporting the Maine economy by continuing to be responsible lenders.  He covered a number of topics from his recent visit to the rating agencies in NYC to the state’s fiscal condition, and he also raised questions about how to support small business lending. 

Statewide median sales price increases nearly 10% since March 2009.

Click here to read the March 2010 MREIS Housing Report.

MACB Comments on BofI/BCCP Notice
On February 24, 2010 the Bureau of Financial Institutions and the Bureau of Consumer Credit Protection issued a Notice of Joint Agency Rule-making Proposal regarding Regulation Z-2. MACB submitted comments on the proposed rulemaking.

Read the comment letter

The median sales price of existing single-family homes in Maine remained unchanged during the month of February 2010 compared with February 2009.

MACB joined the other five New England states in a letter to Senate Banking Committee Chairman Dodd urging him to rework the bill for Maine’s twenty mutual banks.

Banks across Maine donated $10.2 million to charitable causes in their communities in 2009.

The median sales price for a single-family home in Maine was $160,000 in January 2010, an increase of 5.09% from a year ago, and 18.63% more homes were sold in January than a year ago, according to the Maine Real Estate Information Service (MREIS) report released February 26, 2010.

 Maine Housing Report

The Mortgage Bankers Association of America’s National Delinquency Survey for fourth quarter 2009 shows a drop in the rate of delinquencies and foreclosures that has troubled the industry since 2007.

 Fourth Quarter National Delinquency Survey

The MACB CEO Midwinter Meeting was held February 4 at the Harraseeket Inn in Freeport.

Each year, Maine law requires a January 15th Report on the State of the Financial Institutions and Superintendent LaFountain has just issued the 2009 edition.

2009 State of Financial Institutions Report

This holiday season, the Maine Bureau of Financial Institutions is urging consumers to always read the fine print associated with gift cards.

Sixty-four bank leaders of tomorrow braved wintry weather December 9 to attend the 2009 Emerging Leaders Conference at the Harraseeket Inn in Freeport. Senior management decision making, ethics, and social media were among the topics of discussion.