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Tim Martin, group VP of U.S. housing in TransUnion's financial services business unit, "[W]e still have a long way to go to reach more 'normal' conditions of a delinquency rate in the 1-2 percent range for the U.S. average." Two hard-hit states—Arizona and California—improved the most between Q 3 2011 and Q 3 2012. Arizona's delinquency fell 25 percent over the period to 5.62 percent, while California's rate decreased almost 24 percent to 5.56 percent. The District of Columbia registered the largest annual increase, with its rate increasing 11 percent to 6.10 percent in the third quarter of 2012. Florida led with the highest delinquency rate— 13.09 percent. Nevada's rate of 10.93 percent put it at second, and New Jersey's 8.33 percent placed it as the third highest in the nation. The states with the lowest rates were North Dakota (1.44 percent), South Dakota (2.21 percent), and Nebraska (2.25 percent). In Q 3 2012, the average amount of mortgage debt for individual borrowers decreased slightly to $186,445, a quarterly and yearly decrease of 1 and 2 percent, respectively. TransUnion expects the delinquency rate to fall further in Q 4 2012 and settle somewhere in the range of 5.25 percent to 5.35 percent. "It's generally tough to expect improvement in delinquency rates in the fourth quarter of the year given the extra demands on household income that many experience during the holiday season," Martin said. "However, we saw some improvement in the housing market in the third quarter with regard to house prices, home sales, and increased refinance activity, and we believe we will start to see these numbers reflected in improved mortgage delinquency next quarter." KNOW THIS Between November 2011 and November 2012 REOs increased by 38 percent in Illinois, according to RealtyTrac. 138 Indiana rank: 14 90+ Day Delinquency Rate Foreclosure Rate october 2012 2.97% Unemployment Rate 3.76% 8.0% year ago 3.00% 4.54% 9.1% percent point change -1.1% -17.2% -12.1% Top County SwITzerland CounTy 90+ Day Delinquency Rate Foreclosure Rate october 2012 3.24% 7.46% year ago 3.71% 7.61% percent point change -12.5% -1.9% Top Core-Based Statistical area 90+ Day Delinquency Rate FrankForT, In Foreclosure Rate october 2012 3.71% 6.91% year ago 4.05% 7.84% percent point change -8.3% -11.8% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the October 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary October 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. IN THE NEWS StreetLinks Introduces New Division and Valuation Product StreetLinks Lender Solutions LLC has both a new division and a new product to show off. The Indiana-based valuation services and lending technology firm announced in December 2012 the launch of both its Automated Examination and Valuation Division and its new suite of Quality Examination (QX) products. StreetLinks QX is designed as a comprehensive, multiple component collateral review utility. ValueComp, the automated valuation component, uses technology to replicate an appraiser's approach to analyzing comparable selection and property valuation. The results are substantially and consistently more accurate than traditional automated valuation models (AVMs), the company touts. "It would have been easier, quicker, and cheaper to simply become a reseller of AVMs and rules engines, but we couldn't bring ourselves to put the StreetLinks brand on what we believed to be substandard products," said StreetLinks president Tom Hurst. "That realization drove us to develop a suite of products that analyze appraisals like nothing else ever created. "We focused on one goal: to provide clear, concise, and accurate results, while giving the user action items and directives—not simply more questions." StreetLinks's Quality Examination Rules Engine powers the execution of QX using appraiser-based methodology. The engine is programmed to analyze appraisal information and present users with a summary of automated rule "passes" and clear directives for items that require manual examination. In the final analysis, QX cuts appraisal risk while reducing appraisal underwriting cost and turn-time. "We have taken this to a level and depth never seen before in this arena," Hurst said. "Our clients that participated in the build and beta of the product agree that QX delivers a significantly higher level of accuracy and has drastically reduced their collateral review time." The ValueComp component of the QX suite will be powered through Equifax Property Data & Analytics, a provider of real estate intelligence. "Equifax shares the same drive for innovation that we have at StreetLinks," said Donna DelMonte, SVP of product development for StreetLinks. "The relationship with Equifax will allow us to collaboratively launch a multitude of solutions over the coming years." STAT INSIGHT 17,855 Completed foreclosures in Indiana for the year ending in October 2012. Source: CoreLogic