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 Pennsylvania Failed Bank without Taker Pennsylvania rank: 16 90+ Day Delinquency Rate 2.74% Foreclosure Rate september 2012 Unemployment Rate 3.80% 8.2% year ago 2.99% 3.26% 8.0% percent point change -8.3% 16.9% 2.5% Top County Monroe CounTy 90+ Day Delinquency Rate september 2012 5.64% Foreclosure Rate 13.75% year ago 6.39% 11.03% percent point change -11.8% 24.7% Top Core-Based Statistical Area eAST STroudSBurg, PA 90+ Day Foreclosure Delinquency Rate Rate september 2012 5.64% 13.75% year ago 6.39% 11.03% percent point change -11.8% 24.7% 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. IN THE NEWS Keystone Returns to Normal After Storm Disruption Keystone Asset Management Inc. returned to full operations within 48 hours after a power outage from superstorm Sandy took the company offline October 29. The Colmar, Pennsylvania-based company said its IT personnel monitored the situation and were aware of the power outage as soon as it occurred. Staff then began to switch over to backup servers located off-site using the company's documented contingency plans. Power was restored Tuesday evening, October 30. "We experienced minimal down time due to the extensive redundancy built into our systems and processes," said Jason Klementisz, Keystone's director of information technology. "We survived Superstorm Sandy and escaped without damage to our building, systems, and processes due to our proven Disaster Recovery Plan." Keystone is a national provider of comprehensive default mortgage solutions. The FDIC closed another Pennsylvania institution, bringing the state's year-to-date tally to two and the national tally to 47. The FDIC approved the payout of the insured deposits of NOVA Bank in Berwyn, Pennsylvania, after the Pennsylvania Department of Banking and Securities closed the institution. The FDIC was not able to find another financial institution to take over the closed bank's operations and will instead mail checks directly to depositors for the amount of their insured money. Arrangements have been made with National Penn Bank to accept NOVA's direct deposits from the federal government, such as Social Security, through January 25 of next year. As receiver, the FDIC will retain all the assets from NOVA Bank for later disposition. As of the end of the second quarter, NOVA had approximately $432.2 million in total deposits and $483 million in assets. The FDIC's Deposit Insurance Fund is expected to take a loss to the tune of $91.2 million. Program in City of Reading Aims to Revitalize Community The city of Reading Pennsylvania, is taking the issue of vacant properties into its own hands through a program called CORE. CORE seeks to sell government-owned abandoned properties in an effort to revitalize the community and help people in the area achieve homeownership. The program was forged through a private-public partnership between the city of Reading, the Reading-Berks Association of Realtors (RBAR), and the Pennsylvania Association of Realtors (PAR). "Many working families are priced out of today's real estate market," said PAR President Frank Jacovini. "CORE will provide much-needed affordable housing for first-time homebuyers, teachers, firefighters, police officers, and others who are essential to the economic vitality of our communities." One of the advantages of the program is a special tax incentive offered through the city for those who purchase CORE-designated homes. "Our Realtor members have worked with city officials to customize CORE to meet the needs of Reading," said Chuck Liedike, RBAR government affairs director. "One of the unique incentives included is the reduced transfer tax to 1 percent. This incentive will ensure that buyers interested in fixing up the property can do so without any needed issues related to a higher transfer tax." More information on the program can be found online at PARealtorCORE.com. Radian Reports September Delinquencies Radian Guaranty, Inc., wrote $3.54 billion in new mortgage insurance in September, the company reported, October 10. The mortgage insurer started off with 94,823 delinquent loans in September and ended with a slightly higher number of loans—94,831—in delinquency. Radian's 4,485 cures, 1,327 paid loans, and 610 rescissions and denials weren't enough to bring down the monthly total for delinquencies since the company saw 6,430 more delinquencies. In an attempt to proactively manage its capital, Radian also reported that it expects to maintain a risk-to-capital ratio below 25:1 for the rest of this year. Headquartered in Philadelphia, Radian provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. STAT INSIGHT $4,467 Average mortgage closing cost in Pennsylvania, the third most expensive in the country. Source: Bankrate.com 121