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VISIT US ONLINE @ DSNEWS.COM Texas rank: 45 90+ Day Delinquency Rate Foreclosure Rate september 2012 2.46% Unemployment Rate 1.42% 6.8% year ago 2.62% 1.65% 7.9% percent point change -6.1% -14.1% -13.9% Top County 90+ Day Delinquency Rate Cass CounTy Foreclosure Rate september 2012 2.21% 3.11% year ago 2.28% 2.88% percent point change -3.3% 8.3% Top Core-Based statistical area snyder, TX 90+ Day Delinquency Rate Foreclosure Rate september 2012 2.30% 2.68% year ago 4.33% 1.94% percent point change -46.9% 38.1% 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. Texas Danny Norwood Legacy Real Estate 432-413-2764 cell danny@dannynorwood.com www.dannynorwood.com FROM THE BENCH Court Sides with MERS in Two Texas Cases A Texas judge granted a motion to dismiss a case filed against Mortgage Electronic Registration Systems, Inc. (MERS), and its co-defendants over county recording clerk filing fees. Plaintiffs in El Paso and Ector counties took MERS to court based upon allegations "that MERS (and presumably other named defendants) failed to record subsequent transfers of interest in certain real property subject to mortgage; that failure injured the counties by depriving them of the revenues (in the form of lost revenue or uncollected recording fees) they could have earned; and therefore plaintiffs were injured." U.S. District Court Judge David C. Guaderrama rejected those claims, holding that "[s]uch allegations of personal injury is too remote and simply piggy-backs on the direct injury, if any, to the counties." Guaderrama dismissed the case without prejudice and ordered for it to be closed. "We are pleased that this meritless case is finally closed and that the court found that plaintiffs lack standing to seek rewards for third-party county recorders," said Janis Smith, VP for corporate communications at MERSCORP Holdings, Inc. "Complaints with generalized and unsupported allegations are a common foreclosure delay tactic, but multiple opinions by courts in Texas have supported MERS's authority as a mortgagee under Texas law because the deeds of trust signed by borrowers at closing identify MERS as the beneficiary and the nominee for the original lender and its successors and assigns." The dismissal was MERS's second victory of the week in Texas. One day earlier, Merscorp announced that the Supreme Court of Texas denied a borrower's petition for review. In her complaint, the borrower alleged that a non-judicial foreclosure by lender MidFirst Bank was invalid because at the time the foreclosure notices were sent, MERS had not yet assigned to MidFirst its interest as the beneficiary of the deed of trust. In denying review, the court upheld an opinion from the Court of Appeals that "the date of the assignment from MERS to MidFirst is not evidence of the actual date that MidFirst became entitled to authorize enforcement of the lender's rights in the deed of trust." IN THE NEWS Vericrest Announces Support for Homeowners Impacted by Sandy Vericrest Financial, Inc., sent a letter to customers impacted by Hurricane Sandy, notifying them of support available. The company says it will waive or credit certain fees, such as pay by phone or Western Union fees, for customers affected by Sandy. Certain customers can also receive a payment extension, payment deferral, or other workout arrangements. The company will also follow standards and policies on disaster relief set forth by Fannie Mae and Freddie Mac for mortgages securitized by the entities. Customers can call 800.401.6587 for assistance. Texas-based Vericrest is a financial services company that specializes in residential mortgage servicing for all 50 states. Special Servicers Are an Industry Essential, Says Wingspan Execs Special servicers are now a must-have in the repertoire of the servicing industry, according to executives at Wingspan Portfolio Advisors. The Dallas-based servicer said it believes its own growth is evidence of the rising need for special servicers. In a release, Steven Horne, Wingspan CEO and president, explained how the company set itself apart when first formed. "When Wingspan was founded in 2008, we had a good idea of the range of services we would be asked to provide, so we built flexible infrastructure and systems to allow rapid growth," said Horne. "This ability to continually adapt to our clients' needs and provide a wide range of strategic services to assist in every aspect of loan servicing has allowed us to substantially expand our footprint." According to a company release, Horne believes the growth pattern at Wingspan tracks the servicing industry's need for component pieces of the overall special servicing puzzle, as well as the industry's ability to provide experts who are accustomed to improving outcomes in worst-case scenarios. "As the need for compliance and oversight grew, we were able to take on a number of the tasks required of impacted servicers in a short period of time," Horne explains. "We hired, trained, and deployed hundreds of people focused on specific problems and equipped them with the technology needed to be effective immediately. This capability was well-timed for many of our clients." Ed Delgado, COO of Wingspan, further explained the necessary role special servicers hold. 123