DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/105603
VISIT US ONLINE @ DSNEWS.COM IN THE NEWS RBS Settles Subprime Allegations for $42M RBS Financial Products (RBSFP) will pay the state of Nevada $42 million to settle allegations over the firm's role in buying and securitizing subprime and payment option adjustable rate mortgages (ARMs), Nevada Attorney General (AG) Catherine Cortez Masto announced Wednesday, October 24. The $42 million will be used for payments to affected borrowers, mortgage fraud enforcement, foreclosure prevention, and attorney's fees and costs. According to a release, the claims are the result of a nearly two-year-long investigation focused on potential misrepresentations by lenders who provided subprime or ARM loans to Nevadans that were bought and securitized by RBS between 2004 and 2007. In addition to lender misrepresentations on high-risk loans, the AG's office examined the role of RBS, such as to what extent RBS was aware of the alleged practices from lenders when the firm bought the loans and whether RBS substantially assisted the lenders by financing and purchasing the loans. RBS neither admits nor denies any wrongdoing. In addition to paying $42 million, RBS will purchase or securitize Nevada subprime mortgage loans after "reasonable review" of the loans and only if the loans fall within the Nevada Deceptive Trade Practices Act. Borrowers who are eligible for relief can find information that will be updated periodically on the AG's website. IN THE NEWS New Hampshire rank: 36 90+ Day Delinquency Rate Foreclosure Rate september 2012 2.38% 1.88% 2.45% 2.08% Source: ForeclosureRadar 5.4% percent point change -3.1% -9.6% 5.6% Top County SullivaN CouNTy 90+ Day Delinquency Rate september 2012 3.09% Foreclosure Rate 3.52% year ago 3.83% 3.39% percent point change -19.4% 3.8% Top Core-Based Statistical area ClaremoNT, NH 90+ Day Delinquency Rate Foreclosure Rate september 2012 3.09% 3.52% year ago 3.83% 3.39% percent point change -19.4% 3.8% 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 September 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. New Jersey rank: 2 90+ Day Delinquency Rate Foreclosure Rate september 2012 3.97% Unemployment Rate 8.26% 9.8% year ago 3.44% 7.40% 9.4% percent point change 15.2% 11.5% 4.3% Top County EssEx CouNTy Foreclosure Rate september 2012 STAT INSIGHT Number of foreclosure sales in October in Nevada. 5.7% year ago 90+ Day Delinquency Rate 744 Unemployment Rate 5.51% 13.10% year ago 4.67% 12.37% percent point change 18.0% 5.9% Top Core-Based statistical Area ATlANTiC CiTy, NJ 90+ Day Delinquency Rate september 2012 5.84% Foreclosure Rate 11.01% year ago 4.74% 10.05% percent point change 23.2% note: 9.5% 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 September 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. Secure Settlements Forms Advisory Board Secure Settlements Inc. formed an advisory board consisting of 15 industry leaders. The firm formed the advisory board to become better equipped in the changing mortgage lending landscape and to guide the company as it seeks to help both lenders and consumers reduce risk. Through the advisory board, the firm will be able to seek the expertise of the board in areas of mortgage finance, risk management, law, and real estate. "I'm excited about the expansive range of expertise that is represented in this esteemed group of industry leaders," Andrew Liput, CEO of Secure Settlements, said. "We are confident that this Advisory Board will steer us in the right direction as we work to prevent mortgage closing fraud and further regulate this industry." Secure Settlements utilizes identity, background, and credential checks and continuous monitoring to track status changes, which allows lenders to reduce fraud, manage risk, and meet federal regulatory requirements. Based in New Jersey, Secure Settlements launched in August 2012 due to a growing need to meet challenging regulatory requirements. The Advisory Board for Secure Settlements consists of Regina Lowrie, president, Vision Mortgage; Stanley Friedlander, former chairperson, National Mortgage Bankers Association; Armando Falcon, former director, Federal Housing Finance Agency; Peter Norden, former chairman, TIPAC; Ron C. Lazof, managing director and member, Prism Advisers, LLC; Hon. E. Robert Levy, executive director, Mortgage Bankers Association of New Jersey; Wayne Watkinson, partner, Levy & Watkinson, P.C.; Neil Garfinkel, partner, Abrams Garfinkel Margolis & Bergson, LLP; Chris DeLisle, president, Equity Settlement Services Inc.; Bart Oates, attorney, licensed realtor, and principal owner, All Pro Title; Stanley Street, owner and president, Street Resource Group; Jim O'Donnell, president, Equity National Title Inc.; Justin Vedder, area senior VP, Arthur J. Gallagher & Co.; Rob Volmer, principal, Crosby-Volmer International Communications; and Rob Chrisman, editor and publisher, The Chrisman Report. 113