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FROM OUR DESK A New Frontier in Default Servicing Where did 2012 go? So much happened in such a short amount of time, it seems almost impossible to imagine that a full 12 months has passed. Between the presidential election, military sex scandals, and a number of natural disasters among other news-grabbing events, the year definitely isn't closing quietly. But the news hasn't been all salacious and riveting—some of it was just downright positive. Consumer confidence in the economy has improved and unemployment took a dip. The housing market is also showing signs of life with many states reporting increases in home sales and prices. Despite all this positive news, however, there are still some serious concerns awaiting the country in 2013, namely the fiscal cliff that we may tumble from if the current administration and Congress don't make nice and reach an agreement. Some argue that the cliff isn't really a cliff at all, and that there is more than enough time to come to an acceptable conclusion. Five Star economist Mark Lieberman and Dr. Alex Villacorta discuss whether the country needs a parachute or not as we near year-end in this month's "Point–Counterpoint" on page 86. As we come closer to drawing the curtains on 2012, one can't help but wonder what the new year will bring for our industry. That's the premise of our cover story this month, "The Future of Default Servicing: An Educated Outlook." Among the many industry experts we asked to share their forecasts, Laurie Goodman from Amherst Securities provides her outlook for the secondary mortgage market. Celia Chen, Moody's housing economist, says the market correction has resulted in undervalued housing. She expects the housing recovery to "be in full swing by late next year." Art Tyszka from Wolters Kluwer Financial Services and Rich Nielson with the law firm Nielson & Sherry address what is arguably the industry's biggest issue right now: compliance. A host of others jump in to opine on what the emerging marketplace will look like. Flip to page 48 to see what they have to say. The presidential election season exposed an important conversation about the changing face of business and homeownership. Not only did it open discourse on the dynamics of an evolving industry, but it introduced a dialogue surrounding the role of the Department of Justice (DOJ). Megan Cello breaks down the legalese in the agreement reached between the DOJ, state attorneys general, and the five largest mortgage servicers at the start of this year. On top of the changes outlined in the national mortgage servicing settlement, the Consumer Financial Protection Bureau has proposed rules that officials say will take the surprise out of mortgage lending and mortgage servicing. George FitzGerald tackles the potential and probable effects the new regulations will have on the industry. Lastly, will consumers understand the housing market and the nature of bubbles better in 2013 and the coming years than they have in the past? Never ones to shy away from complex issues, we parse this topic too in "Driving the Market." Now that 2012 is winding to a close and we're all preparing to spend time with friends and loved ones for the holidays, can the markets exhale for a bit? If so, it had better be a short breather because in 2013, get ready for a lot of change and activity. As always, DS News will be front and center, keeping you current on all the important stories of the day. Have a safe and happy holiday season. From the DS News Editorial Team default servicing | in print and online vol. 10 no. 12 for me rly PUBLISHER magazine Mark Hulme EDITORIAL DIRECTOR Carrie Bay MANAGING EDITOR Ashley Harris DSNEWS.COM EDITOR STAFF WRITER CONTRIBUTING WRITERS COPY EDITORS EDITORIAL ADVISORY BOARD DESIGN DIRECTOR OF SALES Esther Cho Tory Barringer Megan R. Cello, George FitzGerald, Mark Lieberman, Andy Beth Miller, Alex Villacorta Heather Hill, Alison Rich, Cassie Smith, Emily White Youree Gerald B. Alt, LOGS Network Amy Crews Cutts, PhD, Experian Ed Delgado, Wingspan Portfolio Advisors Jeffrey Jaffee, CitiMortgage Rick Sharga, Carrington Mortgage Holdings David A. Trott, Esq.,Trott & Trott P.C. 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