LAS VEGAS -
There were 179,599 foreclosures in July 2007, which then skyrocketed to 243,947 the next month.
In August 2006, 113,300 foreclosures were filed representing a 115% change according to RealtyTrac Inc., an Irvine, Calif.-based firm. The statistics represent one filing for every 510 household in the nation.
Nevada has a rate three times higher than the rest of the country, with one foreclosure for every 165 households. California posted the highest number of filings in any state with 57,875, a 48% jump in only 30 days and a massive 300% increase from one year ago. The Sunshine State also is high in the rankings. Florida reported 33,932 foreclosure filings, a 77% increase from the previous July. The remaining "top 10" states with high foreclosures are Georgia, Texas, Indiana, Michigan, Ohio, Arizona and Colorado.
With hundreds of media stories flooding the airwaves, front pages and editorial sheets, one man who is sticking to his mortgage guns is American Credit Union Mortgage Association President Bob Dorsa. Dorsa took a break from annual meeting preparations in Sin City to speak with the CU Journal.
Dorsa echoed the stance of many in the credit union industry, saying that since CUs don't own most mortgages, the effect won't be as great as in the banking sector. Dorsa said a credit union "rising" from one foreclosure to two, is a 100% increase, the reality isn't as dire as it might seem. At any normal credit union, a certain number of foreclosures are always going to happen each year regardless of the state of the economy, he said.
"Those foreclosures probably would have occurred anyway," he said. Dorsa also wondered if the three Midwest CUs placed into NCUA conservatorship is solely due to shady or substandard real estate deals in southwestern Florida.
"It's unrealistic since we have such a small percentage of the market," Dorsa said. "We can blame it on almost anything."
Credit unions can't retreat or shy away from real estate in a time of crisis, he said, warning against CU staff who might begin seeing mortgages as bad business. Dorsa reiterated his position previously reported in the CU Journal's Subprime Mortgage Meltdown special report on Sept. 3, that the real estate situation is a good opportunity for the industry. Dorsa said now is the time for credit unions to "ramp up" their mortgage operations and send a message to members and the general public that there is a way out of a bad housing crisis.
"If we do this right, we could double the size of the credit union system," Dorsa said. "Now is the time to contact consumers of the world and say 'credit unions are here to help.'"
