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» Massachusetts rank: 28 90+ Day Delinquency Rate Foreclosure Rate october 2012 3.42% Unemployment Rate 2.44% 6.6% year ago 3.49% 2.44% 7.1% percent point change -2.0% 0.1% -7.0% Top County HaMpden CounTy 90+ Day Delinquency Rate Foreclosure Rate october 2012 5.65% 3.75% year ago 5.59% 3.26% percent point change 1.1% 14.9% Top Core-Based Statistical area piTTSfield, Ma 90+ Day Delinquency Rate Foreclosure Rate october 2012 3.87% 3.65% year ago 3.76% 3.56% percent point change 2.8% 2.4% 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 DebtX: Prices Increase for Non-Performing, Impaired Performing Loans Prices for non-performing and impaired performing commercial real estate (CRE) loans climbed higher in October 2012, according to DebtXData, the proprietary analytics platform from DebtX, a marketplace exchange for whole loans. "Loan prices rose again in October due to the continuing recovery in the CRE capital markets and steady demand for product from a broad range of investors," said Will Mercer, managing director for Boston-based DebtX. "Non-performing and impaired performing CRE loans are up strongly from a year ago." DebtXData offers historical and current CRE loan prices, a quantitative measure of secondary market liquidity, new origination spreads, market commentary, and analysis of selected trades transacted at DebtX.com. As of October 31, 2012, DebtX priced 54,825 CRE loans with an aggregate principal balance of $765.5 billion. Estimated pricing increased to 88.9 percent in October 2012, up from 88.7 percent in September 2012. Loan values were 85.3 percent in October 2011. The weighted average monthly price of impaired performing loans traded at DebtX's marketplace was 79.4 percent during the month of October 2012. That's up from 78 percent in September 2012 and 70.8 percent in October 2011. The weighted average monthly price of non-performing CRE loans traded at DebtX's marketplace was 51.9 percent in October 2012, compared to 50.9 percent the month before. Prices were 40.3 percent a year earlier. The company's Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 108.4, down from 109.5 in September 2012 but up from 93.6 in October of 2011. Boston Fed Reminds Public of Foreclosure Review Deadline In November 2012, with the deadline to request an independent foreclosure review on December 31, 2012, the Federal Reserve Bank of Boston sent out a notice to encourage the public to take action. According to a release from the Boston Fed, there were more than 135,000 eligible borrowers in New England, but only 5 percent of those who were eligible had actually applied. In August 2012, the deadline to request a free review was extended to December 31, 2012. The review was for borrowers who believe they incurred financial harm due to a foreclosure action. If it was determined financial injury did occur, borrowers could receive up to $125,000, plus equity. "Across New England, response rates have ranged from 5 percent to 7 percent, with the majority of eligible borrowers missing out on a vital opportunity," said Ana Patricia Muñoz, senior policy analyst at the Boston Fed. "With so many homeowners in New England having struggled with foreclosure, we want to be sure that every eligible borrower knows about the program and has the opportunity to apply before the deadline." In order to be eligible, the foreclosure action had to occur between January 1, 2009 and December 31, 2010. Only primary residence qualifed as well. In addition, the loan must have been serviced by participating servicers. VISIT US ONLINE @ DSNEWS.COM In April 2011, the Office of the Comptroller of the Currency (OCC), Federal Reserve, and the Office of Thrift Supervision (OTS) announced enforcement actions against servicers, which required them to retain independent consultants to review foreclosure actions between 2009 and 2010. DebtX Sale Includes $650M in Loans DebtX recently unloaded $650 million in performing and nonperforming loans, including a $250 million residential portfolio. Bidding on the assets—including a variety of residential, consumer, and unsecured loans from 17 different clients—took place November 13 through December 14. Kinglsey Greenland, CEO of DebtX, described the portfolios up for grabs as offering "a wide range of product from very strong sellers." Greenland says DebtX saw demand for whole loans increase steadily throughout 2012. That interest, he says, is reflected in rising loan sale prices, primarily for residential portfolios and commercial real estate. The largest pool of loans in the company's November-December sale was a $250 million portfolio of residential loans collateralized by properties across the United States and included some loans modified under the federal Home Affordable Modification Program (HAMP). Other large pools consisted of $36 million in non-performing commercial real estate, commercial and industrial (C&I), consumer, and unsecured loans located in New England, the Mid-Atlantic, and Midwest; $27.5 million in performing and nonperforming residential and luxury residential loans across the United States, including Maui; and $25 million in high-yield performing and nonperforming commercial real estate loans, primarily in the eastern and southern parts of the country. Boston Posts Biggest Increase in Commercial Property Prices National commercial real estate prices showed monthly and yearly increases in September, with Boston leading price gains among the largest metros, according to a report released by Moody's Investors Service in mid-November. In September, prices for commercial real estate increased 1.4 percent 141

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