2016 Annual Report Thomas S. Mowle El Paso County Public Trustee - PowerPoint PPT Presentation

2016 Annual Report Thomas S. Mowle El Paso County Public Trustee Appointed 2/1/2008

2016 Annual Report • Public Trustee System • Current Trends in Foreclosures and Releases • Report on Operations and Finances

Public Trustee System • Judicial States (mostly in East) – Borrower promises to repay loan – Lender goes to court to claim property if default • Trustee States (mostly in West) • Trustee States (mostly in West) – Borrower promises to replay loan – Borrower also grants lender a lien on property – When loan paid, lender asks trustee to release lien – If loan in default, lender asks trustee to foreclose

Public Trustee System • Public Trustee System unique to Colorado – Other states use Private Trustees • Private Trustee works for the foreclosing lender • Can be replaced at will by the lender • Can be replaced at will by the lender • Trustees work statewide – office 100s of miles away – Public Trustee (PT) is neutral and accessible • Created in 1894 by legislature to protect property rights • One per county, so accessible to borrowers • Work for the citizens, so no bias towards lender

Public Trustee System • Ten large counties, 71% of work – PTs appointed by and report to Governor • Prepare budget under Title 24 • Annual audit, quarterly reports to BoCCs & Governor • Subject to removal at Governor’s discretion • Subject to removal at Governor’s discretion – Legislature has increased the number over the years • 53 smaller counties, 18% of work – Treasurer also serves as Public Trustee – Not enough work to justify a separate office – Same reporting & budgeting rules apply • In Denver, elected Clerk is Public Trustee

PTs and Counties • PT Offices statutorily separate from County – Separate budget and finances from County – Provide quarterly reports to BoCC – Revenue in excess of expenses sent to County • Models of association – Small counties co-locate PT as division of Treasurer – Mostly separate: Arapahoe, Boulder, Larimer, Pueblo, Weld – Cooperative: Adams, Douglas, El Paso, Jefferson, Mesa • PT in county building, PT pays for services (CAP, payroll, benefits) • Saves PT costs, increases County revenue & cash flow • EPC PT: 4 FT Deputies

Public Trustee Process • If default occurs, lender files demand thru atty – We ensure state law followed by lender – Set initial sale date 110-125 days – Mail interested parties notice of sale and rights – Publish notice of sale in a local newspaper – Manage borrower’s right to cure default – Answer borrower questions about foreclosure – Sell at public auction, Wednesdays at 10 a.m. • If debt paid off, lender requests release of lien – Review filing for accuracy, so title will clear – Ensure compliance with legal requirements for release

1,000 2,000 3,000 4,000 5,000 6,000 7,000 0 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Monthly Releases Monthly Releases of Deeds of Trust Jan-08 Current Trends Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 3-month average Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

100,000 120,000 20,000 40,000 60,000 80,000 0 1981 1982 1983 1984 1985 1986 1987 1988 Annual Releases of Deeds of Trust 1989 1990 Current Trends 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

10 12 14 14 16 18 20 0 2 4 6 8 1981 1982 1983 1984 1985 Annual Releases of Deeds of Trust per 100 persons 1986 1987 1988 1989 1990 1991 Current Trends 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Metro Comparison In 2016, El Paso had 13.2% of large-county releases Up 8% from 2015; Rest of Front Range up 2% 50000 45000 Adams 40000 Arapahoe Boulder Boulder 35000 Denver 30000 Douglas 25000 El Paso Jefferson 20000 Larimer 15000 Mesa 10000 Pueblo Weld 5000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

100 200 300 400 500 600 0 Jan-05 Jul-05 Jan-06 Jul-06 Monthly Foreclosure Starts Jan-07 Jul-07 Jan-08 Jul-08 Current Trends Monthly Foreclosure Starts Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 3-month average Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

1,000 2,000 3,000 4,000 5,000 6,000 0 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Current Trends 1991 Annual Foreclosure Starts 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

10 0 1 2 3 4 5 6 7 7 8 9 1981 1982 1983 1984 1985 1986 1987 Annual Foreclosure Starts per 1000 persons 1988 1989 1990 1991 Current Trends 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Metro Comparison In 2016, El Paso had 21% of large-county foreclosure starts Down 12% from 2015; Rest of Front Range down 8% Down 76% from peak; Rest of Front Range down 87% 8000 Adams 7000 Arapahoe Arapahoe 6000 Boulder Denver 5000 Douglas 4000 El Paso Jefferson 3000 Larimer 2000 Mesa Pueblo 1000 Weld 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Foreclosure Outcomes 100.00% 90.00% 80.00% 70.00% 60.00% 60.00% % Sold 50.00% % WD 40.00% % Active 30.00% 20.00% 10.00% 0.00% Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

Current Trends 2016 County-wide starts: decrease 14% from 2015 Trends include only zip codes with >500 SFRs / >10 2015 FCs Greatest Density Smallest Decrease 80925 (East of Fountain) 15/1000 80817 (Fountain) +12% 80817 (Fountain) 80906 (Skyway/Broadmoor) -0.1% 80916 (Panorama) 80905 (West Side) 80808 (Calhan) 80808 (Calhan) 80915 (Cimarron Hills) 80915 (Cimarron Hills) 80910 (Pikes Peak Park) 11/1000 80132 (Monument/Woodmoor) -2% Lowest Density Biggest Decrease 80106 (Elbert/Black Forest) 1/1000 80951 (Claremont Ranch) -40% 80819 (Green Mountain Falls) 80923 (Ridgeview) 80919 (Rockrimmon/Mtn Shadows) 80921 (Gleneagle/Northgate) 80921 (Gleneagle/Northgate) 80829 (Manitou Springs) 80133 (Palmer Lake) 3/1000 80903 (Downtown/Hillside) -30%

Foreclosure Density Trends Starts/1000 SFRs 70.0 60.0 North 50.0 East Manitou/Ute Pass 40.0 Fountain Valley Southwest 30.0 Southeast 20.0 Central Northeast 10.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 North: 80106, 80132, 80133, 80908, 80921 East: 80808, 80831, 80832, 80833, 80835, 80864, 80928, 80929, 80930 Manitou/Ute Pass: 80809, 80819, 80829, 80863 Fountain Valley: 80817, 80911, 80925, 81008 Southwest: 80905, 80906, 80926 Southeast: 80910, 80915, 80916, 80951 Central: 80903, 80904, 80907, 80909, 80917, 80918, 80919 Northeast: 80920, 80922, 80923, 80924, 80927, 80938, 80939

2016 Work Performed • 39478 Deeds of Trust released +8% • 1287 New foreclosure starts -12% • 774 Foreclosures withdrawn (85 after cure) • 680 Properties sold (principal due: $145,062,365) • 680 Properties sold (principal due: $145,062,365) • 412 Sales to 3 rd parties 61% of sales • $82,192,938 in fiduciary funds +52% • STILL busiest PT office in state – #1 in foreclosures (76% more than Arapahoe) – #4 in releases (6% less than Denver)

2016 Financials

2016 Financial Summary • Spending Down – Cut ordinary costs by $6,170 from 2015 (-1.2%) – Total expenses down by $52,383 from 2015 (-9.6%) • Revenue Up – Foreclosure revenue down $19,779 from 2015 (-6.5%) – Foreclosure revenue down $19,779 from 2015 (-6.5%) – Release revenue up $45,555 from 2015 (+8.3%) – Total revenue up $25,659 from 2015 (+3.0%) • Revenue Transferred to El Paso County – $427,078, or 49% of earned revenue

Public Trustee Expenses $1,400,000 $1,200,000 $1,000,000 $800,000 TOTAL Cost of non- TOTAL Cost of non- Salary, non-EPC Op $600,000 Expenses $400,000 TOTAL Cost of EPC- Provided Service $200,000 $0 TOTAL Cost of Salaries 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 and Benefits

Public Trustee Expenses + “Excess Revenue” $1,800,000 $1,600,000 $1,400,000 $1,200,000 Earned Net to EPC Earned Net to EPC $1,000,000 $800,000 TOTAL Cost of non-Salary, non-EPC Op Expenses $600,000 TOTAL Cost of EPC- $400,000 Provided Service $200,000 TOTAL Cost of Salaries and Benefits $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2017 Budget Projections • REVENUE – 1200 Foreclosure starts $ 248,056 – 36,000 Releases of Deeds $ 540,000 – TOTAL – TOTAL $ 788,656 $ 788,656 • EXPENSES – Maximum budgeted $ 569,031 • Excess Revenue $ 219,625 • Op Reserve Drawdown(actual) $ 4,139 • TOTAL TO EPC $ 223,764