Mortgage Market Share Report ? June 2013

The future ain?t what it used to be ~ Yogi Berra

Fueled by record low interest rates (how many times has that been said in the last four years?) the Monroe County mortgage market made its fifth strongest quarterly showing ever. (charts pages 8 & 9) Judging by our own mix of business, refinancing probably comprised more than half of that volume.

Sale transactions (see chart page 14) while stronger than 2012, are still below the levels seen prior to the late 2008 market collapse. I?m certain that we won?t see numbers like those from 2004-2007 again, but I do believe that the local market still has another fifteen to twenty percent growth left in it.

So maybe, we?re not yet back to ?normal.? How long it will take to get there is anybody?s guess.

New foreclosures started in the second quarter dropped significantly. Hopefully that trend will continue. There were no sheriff?s deeds recorded in April?very unusual. I?m not aware of any procedural or regulatory change that would account for that. Maybe Mr. Kennedy was on vacation?

On July 1st Closing Protection Letters for buyers, borrowers, lenders and sellers became mandatory in Indiana. This new law ensures that everyone?s funds entrusted to a closing agent are protected from misappropriation?a good thing. Whether the additional $50 to $75 per transaction being paid to title underwriters is warranted by the additional risk is debatable. The underwriters will need to justify those charges next year when the Indiana Department of Insurance is required to approve their premium rates prior to their use.

If you have any questions about the new law and how the fees are being handled, please let us know. We appreciate the patience of our valued clients as we all deal with the regulatory forces that affect our business.

John Bethell
July 17, 2013